In 72 hours, a group of strangers met, brainstormed ideas and then built working prototypes for six companies.
The companies included Spear Guard, an e-mail security firm, Renew Couture, a recycled clothing line, Stride Sync, a music sharing app, Golf Average, a statistical analysis app to improve golf performance, SimpLingo, a browser plug-in to learn a foreign language and Approachab.ly, a professional networking app made for conference attendees.
The newfound entrepreneurs took part in 3 Day Startup weekend in San Antonio at Geekdom, a downtown co-working and collaborative workspace.
“This is the best one we’ve had in San Antonio by far,” said Cam Houser, one of the founders of 3DS. “The crop of ideas were really strong. The execution was just great.”
That’s impressive praise considering the last two 3DS weekends in San Antonio created at least two companies that are still running and that have received venture funding. One of those is FanDash, a site for band promotion and Console.FM, formerly known as HelloWorld.Im. Console.FM, created in the Spring of 2011, is now part of Dave McClure’s 500Startups incubator.
The 3DS weekend teaches students and young professionals about entrepreneurship and creates real ventures that go on to further develop their products and services, said Cristal Glangchai, a professor of entrepreneurship at Trinity and one of the organizers. Trinity, Rackspace, TechStars and Geekdom sponsored the event.
Successful entrepreneurs also lent their expertise to the various groups throughout the weekend. The mentors included Pat Condon, one of the founders of Rackspace, Ryan Kelly, founder of Pear Analytics, Jason Seats, founder of SliceHost, Nick Longo, founder of CoffeCup Software, Todd Morey, founder of Mosso, a cloud company within Rackspace and Alan Weinkrantz, a public relations expert who runs his own firm.
In addition, several members of 3DS, a nonprofit organization which puts on the events worldwide, helped. The next 3DS is next weekend in the Netherlands.
Throughout the weekend, participants experienced “a lot of extremes,” Houser said. Some entrepreneurs got their ideas extinguished early on. Others discovered, after a lot of work, that their idea wouldn’t work. One guy stayed up for 27 hours straight to work on programming a new site. Some people never left the building except to interview potential customers.
On Friday, the groups voted on the best ideas and decided who they wanted to work with to develop the idea into a company. But on Sunday, some of the original groups no longer existed like Hole in the Wall, a local restaurant review app. After doing some research, they decided the market was too saturated with similar apps so those team members went to work on other projects, Houser said.
And a new company emerged on Saturday.
Vyjayanthi Vadreavu originally pitched the idea for a documentary on homeless people and a recycled clothing line. Her idea did not get enough votes to make the final projects.
But Saturday morning, she found some people who wanted to work on it. She talked to Glangchai, one of the organizers of 3DS San Antonio, who encouraged her to pursue the idea, but with a different focus.
On Sunday, Vadreavu pitched Renew Couture with a new team. The group collects gently used clothing, delivers the items to student clothing designers at local universities and then sells the clothes made from recycled material.
An estimated four million tons of clothes get discarded every year, Vadreavu said. The opportunity to take some of the clothes and make them into new garments is huge, she said. The company would work with five local fashion schools to create the clothes.
“The clothes get a second life and the customer gets a one of a kind item,” she said.
This was the first time Vadreavu, 26, who works at Rackspace, participated in a 3DS. She plans to continue to work with her group to get the company launched and funded.
“I think it’s such a fantastic experience,” she said. “I wish I knew about it earlier in my career.”
Another woman-led venture, SimpLingo, started out as Babbling on Friday, but changed its name and refined its focus after doing a lot of research and talking with mentors, said Amando Wolf, a junior majoring in Chinese language studies at Trinity.
SimpLingo is a simple way to learn a foreign language, particularly Spanish. It’s a browser-based plug-in to translate portions of text online based on a person’s level of proficiency.
“You don’t have to deviate from your daily routine to learn the lingo,” Wolf said during her pitch.
SimpLingo was the only company to ask for money outright.
“I did the last 3 Day Startup,” said Cassie Robinson, a sophomore at Trinity studying religion, entrepreneurship and business and a team member of SimpLingo. “One of the ideas that did really well, they asked for money.”
So Robinson put up a slide requesting $10,000 and provided a bank account and routing number.
The panel of judges liked the idea and the fact they asked for funding. The panel included Jay Campion, a venture capitalist, Sheridan Chambers, one of the founders of The Denim Group, Dirk Elmendorf, one of the founders of Rackspace, Suizo Mendler, a former Rackspace executive and now TechStars mentor and George Karutz, an investment banker.
SimLingo has a lot of potential, said Alex Butler, a senior majoring in engineering at Trinity and one of the team members. “It’s really scalable.”
After the pitches, the various groups worked the crowd to talk to potential investors.
Luke Carriere, head of Approachab.ly, started out pitching the app as a dating app and then switched to a professional networking app after researching the market.
“The problem was adoptability,” Carriere said. “Partnering with events organizers was a way to ensure there was a critical mass of users.”
Approachab.ly is planning a beta launch of its product in the Spring of 2012, said Carriere, a graduate business student at Fordham University who is doing a internship at the Austin Technology Incubator. He says he has $10,000 in funding from an angel investor to pursue the idea.
“It’s a way to reach out and meet new people at the same events,” Carriere said. “We think there is a market for that. And this is just the beginning.”
Tag: technology (Page 21 of 25)
About 40 aspiring entrepreneurs gathered Friday afternoon at Geekdom downtown for 3 Day Startup San Antonio.
They brought sleeping bags, backpacks, computers and tents.
They had plenty of fuel to get them through the weekend with two refrigerators filled with Red Bull, sodas, gatorade, juice boxes, water, beer and fruit. An entire shelf held dozens of different kinds of snacks including Cheez-Its, Oreo cookies, Snickers bars and granola bars.
They spent an hour getting to know one another before breaking into eight color-coded groups to brainstorm ideas to create a new company. From 3:30 p.m. until 7:30 p.m. they worked in different offices hashing out their ideas on white boards. More than a dozen mentors and organizers also helped the participants formulate their ideas.
Luz Cristal Glangchai, associate director of Trinity University’s Center for Entrepreneurship, oversees the program.
Nick Longo, who founded Coffeecup Software, and now heads up the Geekdom, and Todd Morey, who helped create Rackspace’s cloud business, would pop in and out of the offices, offering advice.
Longo told the green team to keep in mind “what problem am I trying to solve? How large is my market? And can I execute it?”
He told them that there are a lot of sites like Prezi, Woofoo forms and Chargify that already exist that could help them mock up a website.
Morey told them to keep in mind the cost of acquiring customers.
“Going viral is not a strategy,” Longo said. “Google Ad words is not a strategy.”
The green group came up with an idea for putting a friendly face on a computer repair service targeted at the elderly and people with learning disabilities.
Longo recommended googling “The Pirate Metrics” on acquiring and retaining customers and to follow advice articulated by Eric Ries in his book The Lean Startup.
“If it takes too much money upfront it’s non-executable,” Longo said.
The yellow group listed a bunch of problems on a white board and then brainstormed solutions for them. They included a parking app to reserve a parking space, a grocery list helper app and a language app to help learn a foreign language.
Ryan Kelly, owner of Pear Analytics and a mentor, suggested the group gamify the language app.
“Make learning a language more fun,” he said.
Around 6 p.m., the groups broke for a catered dinner of Dicky’s barbecue brisket sandwiches, potato salad and beans. And then they went back to their offices to create powerpoint presentations and solidify their ideas.
At the pitch session, the groups presented their ideas on a giant screen. The pitches ranged from a dating app to cloud computing platform. The first pitch was for GolfAverage.com, an in-depth statistics site for golfers, which keeps track of a current game and past performance, followed by Penny for Your Thoughts, a documentary on homeless people and a sustainable clothing line.
Other ideas included BookZingo.com, a marketplace for college students to sell their textbooks, Transparent Mortgages, a site for first time homebuyers and those with credit issues, Clan, an app for music sharing, Spear Phishing, a virus and malware prevention platform, Hole in the wall, a local restaurant review site, Approachab.ly, a dating app, Kudotree, a personal recommendation site and Babbling, a program to learn a foreign language intuitively.
In the end, the group voted by putting their heads down with closed eyes and raising their hands for the idea with the greatest chance of success and the idea that they most wanted to work on. Each member had two votes.
Ideas around the hot trends of mobile, social and location garnered the most interest. The final five ideas with the most votes included GolfAverage.com, Approachab.ly, Babbling, Clan and Spear Phishing. The group leader stood before the crowd and told them what kinds of skills were needed to build out the company and then people decided whether they wanted to work for them. The largest groups formed around Approachab.ly and Babbling. Around 10 p.m. they headed for offices to get back to work. Meanwhile, Clan bit the dust. And Hole in the Wall re-emerged as a company with five people wanting to work for the idea.
“That’s going to happen,” said Rachit Shah, one of the original founders of 3DS.
“Another company will probably fail before the night’s over,” said Cam Houser, another original founder of 3DS. Four University of Texas graduate students in business, computer science, engineering and law started 3 Day Startup in 2008 and now they run it full time as a nonprofit organization.
“It’s an entrepreneurship education program for university students,” Houser said. “We were grad students and didn’t feel like the student potential for entrepreneurship was being met. More could be done to help students start ventures.”
The idea is a popular one. 3DS has put on programs around the world including China and Germany.
“You have to apply, submit a resume, pitch an idea and get interviewed,” Houser said. “Most of the people who want to participate in a 3DS are pretty passionate.”
The San Antonio program was the 17th 3DS.
“It’s free to participants,” Houser said. “We’re giving them a scholarship.” It costs around $500 per person which includes catered meals, snacks and drinks and place to hold the event. Corporate sponsors contribute the bulk of the money.
“The only time they leave the building is to talk to customers,” Houser said. “On Sunday, their eyes are bloodshot and they smell bad but they’re really fired up.”
The 3DS organizers do have rules. They don’t let pre-existing companies pitch and they don’t allow anyone to pitch porn sites.
“It ranges from an idea on a napkin, up to they’ve done a lot of market research and they have a site in mind,” Houser said. “We provide an exciting and high energy environment that resembles a startup with long hours and overlaying order onto chaos.
So far, 16 companies have spun out of 3Ds that have raised $4 million, Houser said. They include Hoot.me, FanDash, Console.FM and Famigo.
FanDash, formerly BandDemand.com, is one of the startups to spin out of the San Antonio 3DS program.
The founder of Hurricane Party pitched his idea but no one wanted to do it, Houser said. But he did meet five of his six members of his team at 3DS, he said. The company is now called Foreca.st and is doing well.
Christian Salmagne from Aachen, Germany, brought 3DS startup to his hometown last summer. Forty students met at the RWTH Aachen University and at least one of the companies is still up and running, Salmagne said. The company is Tamyca.de, which stands for Take My Car. It’s a peer to peer personal car sharing site.
Salmagne attended the San Antonio 3DS. He’s currently doing a three month fellowship at the Austin Technology Incubator to learn about entrepreneurship so he can take his knowledge back to his hometown to help with Germay’s startup community.
“I’m helping people and observing,” Salmagne said. “I like to experience this energy. You get addicted to it.”
Twitter wants to harness the power of TV to encourage people to log on to the micro-blogging site.
To that end, it struck up a partnership with Austin-based Mass Relevance today. Mass Relevance created a content curation system for an estimated 250 million tweets each day.
For example, NBC’s The Voice used Mass Relevance’s platform to feature tweets about its show during its live broadcast. The ability to get real-time feedback from viewers during the show made it edgy, fresh and plugged in.
Mass Relevance also worked with E! Online during the Oscars to publish the best and most relevant tweets to a microsite the broadcaster created for the show.
The startup works with companies to curate Twitter streams about their brand, product or show and display the content on TV and other devices.
Sam Decker, CEO of Mass Relevance, left another Austin startup Bazaarvoice, to found the company in 2010.
Twitter published this blog post about the partnership saying it extends Twitter’s reach and fills the need from brands, publishers and TV networks looking to expand their content. Twitter also announced a partnership with Crimson Hexagon, which created a social media monitoring and analysis system for brands.
For three days, 40 people will meet, brainstorm and create companies during San Antonio’s Three Day Startup Weekend.
The action takes place this Friday at the Geekdom at the Weston Centre in downtown San Antonio.
Luz Cristal Glangchai, associate director of Trinity University’s Center for Entrepreneurship, oversees the program. She held a bootcamp last night at Trinity for the participants to brief them on what to expect during the weekend and what to bring with them.
The weekend kicks off at 2:30 p.m. on Friday and concludes with the newly-formed companies pitching their ventures to funders and others on Sunday. That portion is open to the public, but the rest is closed.
About half the participants are students from Trinity, the University of Texas at Austin and at San Antonio, St. Mary’s and even as far away as Rice and Iowa State.
“It’s really about education,” Glangchai said. “It’s kind of a really intense hands on lesson in entrepreneurship.”
This is the third Three Day Startup Weekend in San Antonio. The first took place at the Molina Healthcare building last November, followed by another one at Rackspace in May, Glangchai said.
Three Day Startup Weekend, fashioned after the original Startup Weekend, took place in Austin. Some University of Texas students held the first one in 2008. Since then, companies spin out of the Austin startup weekends have raised $4 million. Some of them include Famigo and Forecast.
The biggest success story in San Antonio is BandDemand, Glangchai said.
Vid Luther started ZippyKid, which hosts and services WordPress websites.
Starting at $20 a month, San Antonio-based Zippykid provides fast and secure hosting on Rackspace’s servers.
Ten Questions with Luther, founder and CEO of ZippyKid.
1Q. Where did you come up with the idea for Zippy Kid?
A. Basically the idea came about because I was getting a lot of customers calling me and asking for help.
2Q, When did Zippy Kid launch?
A. The first version of ZippyKid launched in 2009. It wasn’t called that. It was called PSD2Live
3Q. Where did you get the ZippyKid name?
A. Wes Wilson runs a site called Brandstack and he put up weekly posts of the top domain names on the site. I saw ZippyKid and it reminded me of a customer comment. They said “my website is so zippy now I love it.” So the name seemed perfect.
4Q. What does ZippyKid do?
A. We are a WordPress hosting company. We only do WordPress as a content management system targeting 60 million users. We make sure your website is stable. We make sure your website doesn’t get hacked. People want a secure website. Lately, the number one thing people come to us for is speed. If your page loads slower than two seconds, you’re going to lose customers.
5Q. How many customers does ZippyKid have?
A. We have 1,000 from all over. We’re getting a lot customers from Europe. We’ve got customers from Australia and India. (Only 20 customers are from the local area)
6Q. Who are your customers?
A. We’ve got large enterprise customers and small individual bloggers and journalists. Virginia Tech is a customer. Anyone who is making money on the Internet they host with us. They don’t want to spend time managing their server.
7Q. What is your relationship with Rackspace?
A. We’re a partner with Rackspace. We handle all the server stuff for you. We do everything for you so that you can focus on your content rather than your server. Our slogan is “You post, we host.”
8Q. Who is your competition?
A. WPEngine in Austin and some others. But overall, Godaddy is my competition.
9Q. How do you market ZippyKid?
A. Our number one customer driver is actually word of mouth. We’re doing a lot of search engine optimization for when people are looking for WordPress solutions. We’re like a drug, people try us out and they get hooked. They can’t get enough.
10Q. What was the hardest part about launching ZippyKid?
A. Deciding to do it. Deciding to stop being passive aggressive and just go ahead and do it. If it fails, it fails.
ZippyKid has partnerships with other companies like Torbit. For $60 a month plan, ZippyKid’s customers get Torbit included. It also has partnerships with GravityForms, Woothemes and Backup Buddy. ZippyKid has six employees and is based at Geekdom. Luther applied for the TechStars Cloud program. That’s John Gray, ZippyKid’s Chief Technology Officer, sitting across from Luther.
Nicholas Longo, director of Geekdom
But now a new place, smack dab in the middle of downtown at the Weston Centre, might be able to do that with a collaborative workspace called Geekdom.
Geekdom is a nonprofit organization that will host technology workshops, lectures and events. It also provides office space to startups and desks to other technology workers through an application process. The center has an outreach effort to local high school and college students. Rackspace Chairman Graham Weston has put up the money to get the center established.
The desks will cost about $125 a month to rent and will come with a parking space. The community membership will cost around $50 and does not come with a dedicated space, Longo said. The offices will be open around the clock and members will have access codes and keys to get in to the building after hours.
“It’s like a gym membership for geeks,” he said.
Some people want to hang out all the time and write code, while others will want to just pop in and out from time to time, Longo said. The space hasn’t officially opened yet but one guy comes there every night after his regular job to code until midnight, he said.
Longo plans to have a strategic layout for assigning desks by putting “coders” next to “creatives” so that different groups get to network. And all residents (people who have desks) must give one hour of their time a week to help others, Longo said. Or they can put on a workshop once a month on programming languages, design or marketing. The idea is to create a collaborative environment, Longo said.
“Mentorship is the new classroom,” Longo said.
The Geekdom is nice. The 11th floor of the Weston Centre formerly housed a law firm. Large windows provide a panoramic view of downtown. Red, black and white decor pay homage to Rackspace, which is a sponsor of the site. The 15,000 square foot space includes a pool table, some arcade video game machines, a kitchen area with a couple of refrigerators stocked with beer and soda.In addition to the offices, Longo wants to set up rooms for people to make things, ranging from painting to soldering metal to sculpture, robotics, Legos and more. It’s all about the Maker’s movement, Longo said, fashioned after Maker Faire and Make Magazine, which encourages people to build stuff from scratch.
Two weeks ago, the Geekdom hosted its first big event Startup Ignite’s all night Hack-a-thon, which garnered praise from its participants. It plans do another Hack-a-Thon on Nov. 18th at Geekdom.
Starting this Friday, San Antonio’s latest three day startup weekend takes place there.
The TechStars Cloud could serve as a catalyst to ignite 
San Antonio’s startup technology community.
That’s because ten new startups will locate here for the 12-week program, which kicks off in January. Also, Nicole Glaros, TechStar managing director, will move here with her family. She will run the TechStars Cloud along with Jason Seats.
On Saturday, about 120 applicants, mentors, funders and others gathered at Rackspace’s new collaborative workspace downtown, called Geekdom. The 15,000 square foot offices on the 11th floor of the Weston Centre will host the TechStar Cloud companies.
At TechStars for a Day, applicants listened to speakers and panel discussions about what it’s like to be a TechStars entrepreneur. They also networked. The program ended at 4 p.m. but many stayed until past 6 p.m. to drink Dos Equis and Shiner beer and chat.
Seats ran the TechStars for a Day program. People sat in bright red, black and white stools and chairs or on large red bean bags in front of a giant screen on which Seats projected the images of Glaros and TechStars Founder David Cohen, both located in Denver, via Skype. Glaros is in the last trimester of her pregnancy and can’t travel right now. But she gave sage advice and insight into the program.
“TechStars’ secret sauce is its mentors,” Glaros said, which include some of the best and brightest minds nationwide, she said. “These mentors are giving freely of their time to make sure these companies get to the next level.”
Glaros told the room to “put down your smart phones and start talking” and to “participate actively” to get the most out of the day. She also told them to “nail your elevator pitch. It should be two sentences and less than 30 seconds.”
“Don’t hog too much of anyone’s time,” Glaros said. “Keep conversations to five minutes.”
And on that note, Glaros’ broadcast froze. Seats tried to fix the connection, which prompted Rackspace Chairman Graham Weston to say “This is the only production in town where the guy running the show is also the audio and visual guy.”
The lean production speaks to the culture of the TechStars startups to do as much as they can on strict budgets. But all of the TechStar Cloud winners get money. They receive $18,000 and access to a $100,000 loan. They must relocate to San Antonio for the duration of the program, which culminates in April with a TechStars Cloud Demo Day, in which they pitch their companies to investors. Weston, Rackspace Founders Pat Condon and Dirk Elmendorf have provided the funding for TechStars Cloud for the next four years.
Cohen, also spoke to the group via Skype because his mother was visiting him. TechStars has already funded 100 companies of which nine have been acquired by larger companies and 14 have failed. Collectively, the startups have raised $100 million. Anyone can apply for the program, including foreign companies, as long as they obtain Visas. The program is about “a community” of expertise around funding technology startups, Cohen said. Successful entrepreneurs serving as mentors, combined with alumni and TechStar’s network of 75 venture funds and angels nationwide help to make the program a success, Cohen said.
“A large focus is on quality,” Cohen said. TechStars provides 10 mentors to one company, he said.
“Our goal is to make every single company we fund successful,” Cohen said.
The two biggest startup killers are lack of a market for a product and issues with the team, Cohen said. TechStars mentors can help with those issues because they have faced them before in their own startups. To succeed, the companies need to “be the best in the world at what you do,” Cohen said.
Trying new things, failing and learning from the mistakes are some of the biggest advantages startups have over large and well funded companies, Cohen said.
In response to a question from the audience, Cohen said the biggest misconception about TechStars is it’s “only for very young companies or 21 year old white dudes.” The average age of a applicant is 31 and the age range of TechStar entrepreneurs is generally between 22 and 42 years old, although they’ve had older entrepreneurs, he said. Lots of companies are already established in a market but need help getting to the next level, Cohen said.
“Many companies come into TechStars with $1 million in revenue or $1 million in funding,” he said.
The inaugural TechStars Cloud program focuses on “companies that are building the cloud and not building on the cloud,” Cohen said. The cloud provides companies the ability to deliver computer services online.
After the overview of the program and advice from Cohen and Glaros, Seats introduced Weston to the crowd.
“The legacy of this man is going to be all about this town,” Seats said. “Graham Weston has done more for this town than any single man since Davy Crockett.”
Rackspace knows how to help startups because it was one not too long ago.
At a San Antonio hamburger joint in 1998, Weston and his partner Morris Miller met with three Trinity University students, Elmendorf, Condon and Richard Yoo, the founders of Rackspace, a startup hosting company. Rackspace has since evolved into a publicly traded hosting giant with $1 billion in revenue and nearly 4,000 employees. It is San Antonio’s largest technology company and Weston, Elmendorf and Condon want to create more like it.
Weston, referencing the book “The Coming Job’s War,” said most of this country’s net new jobs are produced by companies less than five years. Startups are fueling the country’s economic growth now and into the future, he said.
Then Weston gave a pitch on the city’s shining attributes that would have made the Greater San Antonio Chamber of Commerce proud. He mentioned the city’s low unemployment rate and huge medical and biotechnology industry, which is larger than the tourism industry. He touted the city’s rapidly developing urban life with thousands of apartments and condos being built in the downtown area and the city’s 68 miles of bike trails and 11,000 acres of urban parks. San Antonio has affordable housing, Weston said.
“You can buy a great house for less than $200,000,” he said.
San Antonio has the benefits of a large city, but the feel of a small town, Weston said. It’s kid friendly and a great place for families, he said. He also mentioned the city’s 31 higher education institutions and 100,000 students and its thriving arts community.
The city also has five Fortune 500 companies and a few large private companies like USAA and HEB. The startup community in San Antonio is poised to take off, Weston said.
“The founders and I are determined to create the next Rackspace over the next 20 years,” Weston said.
Weston then introduced Seats, who founded Slicehost, which Rackspace acquired in 2008. Rackspace’s cloud revenue has grown from zero to $200 million since that acquisition, Weston said. One of the requirements of the acquisition was that Seats move to San Antonio, Weston said.
“He’s the sort of entrepreneur San Antonio needs more of,” he said.
Seats has an office in Rackspace’s Geekdom and is looking forward to helping other entrepreneurs succeed with their ventures.
In addition to the entrepreneurs, Ned Hill, a venture capitalist with DFJ Mercury in Houston, gave the audience advice on how to seek funding. DFJ Mercury provides investments ranging from $50,000 to $1 million and has $110 million under management. One of DFJ Mercury’s hot portfolio companies is Austin-based Game Salad, which allows anyone to create a game for a variety of devices without knowing any coding.
Hill often gets asked “How do I choose the right VC?” He says “The right VCs are easy to spot. They are the ones writing the checks.”
He told the entrepreneurs to be flexible and persistent.
“You’ve got to be really good at telling your story,” he said. VCs invest in ideas that make sense and have value and in people who are passionate and know their market better than anyone, he said. “Vision, passion and drive,” Hill said. “Let it shine though. Don’t give up, make it happen.”
Deals can take only a few days or up to a year to get funded, he said. DFJ Mercury likes to own at least 20 percent of the company upon exiting the investment. VCs like to see the opportunity to earn ten times their investment when they give a company money, but most deals don’t earn anywhere near that, he said.
He advised the entrepreneurs to always be thinking about their exit strategy, especially if they receive funding.
“You can’t be in it for the lifestyle,” he said. “If you’re not able to sell a company in five to seven years then you’ve got a problem. Try to exit your business within five years.”
Elmendorf told the group that one of their greatest strengths was not knowing a lot.
“You literally have no idea how hard it is what you’re trying to do,” he said.
But that’s ok, and failing is also Ok, he said.
“As long as you keep doing this, it’s a learning process,” he said. “Failing is totally awesome as long as you don’t stop. If you stop and go get a real job, then you’re a failure.”
Starting a company is a “messy, hard endeavor,” Elmendorf said.
Startup companies need to know what problem they are trying to solve. It’s easy to get sidetracked, so entrepreneurs must constantly focus and ask themselves what they’re trying to work out, he said.
Entrepreneurs often play multiple roles in the organization early on, but they’ve got to spin those off and hire more people as the organization grows.
“I was HR because I had the most jobs,” Elmendorf said. “I slowly carved off the other things that weren’t related.”
Other panel discussions and talks featured former Techstars entrepreneurs, some who succeeded and others who did not.
Don’t be afraid to try something that doesn’t work out, said Josh Fraser, founder of EventVu and Torbit. He shut down EventVue after three years in February of 2010. EventVue created an app that allowed people to network at conferences. After closing up shop, he started getting calls from Facebook and other large companies that wanted to hire him. He also got calls from former investors who wanted to know what he was working on next. He’s now founder of Torbit.
Donning a brown stetson and cowboy boots, Lance Walley founder of Chargify and a TechStars Cloud mentor, talked about customer acquisition and pricing.
“Pick a niche and charge enough for your products,” he said. “If you know who your customer is, you can acquire them.”
In a later panel featuring other TechStar mentors, Rackspace Founder Condon said that narrowing the market and focusing the product on a specific customer is the best way to succeed.
“You have to say no to a lot of folks,” he said.
The application deadline for the Rackspace TechStars Cloud program is Monday, Nov. 7.
The deadline to apply for the TechStars Cloud program is Monday.
But already the program has received several hundred applications for the inaugural TechStars program in San Antonio, said Jason Seats, managing director for TechStars Cloud and cofounder of Slicehost, which San Antonio-based Rackspace acquired.
On Friday night, several of those entrepreneurs met with Rackspace employees and tech company mentors at the Esquire Tavern on the Riverwalk downtown. Some of them travelled from Nashville, Portland, San Francisco, Madison, Wisc. and the United Kingdom.
On Saturday, they will gather on the 11th floor of the Weston Centre downtown from noon until five to hear speakers from Rackspace including one of the founders, Dirk Elmendorf and Rackspace Chairman Graham Weston along with speakers from TechStars.
Seats calls it “TechStars for a day.”
Elmendorf says Rackspace has remade the 11th floor of the Weston Centre into “Geekdom” with plenty of space for start up companies to work and mingle.
The 13-week TechStars Cloud program will start in January and culminate with the TechStars Demo Day in April in which the selected companies will pitch to potential investors. San Antonio is the fifth site for a TechStars program with other locations in Boston, Seattle, New York and Boulder, Colo.
“This location is all about cloud,” Seats said.
The cloud is like “the plumbing of the Internet,” Seats said. It’s the “heavy-lifting technology stuff that takes place behind the scene.”
Seats says the applicants for the TechStars Cloud program, so far, have more of a business to business focus, rather than a business to consumer focus. The applicants span a wide range of industries including music, hosting, infrastructure, video and gaming.
The interest in the program is high because not only do the 10 TechStars Cloud companies receive $18,000 in initial investment but they receive mentoring and access to a network of accomplished entrepreneurs and potential funders.
“It’s a fantastic time to start a new company,” Seats said. “If you’re a developer with a great startup idea, the economy is not hurting for you.”
Most of the TechStar cloud companies will come from outside of San Antonio, Seats said. He expects just one to two to be from this area. And he hopes that the injection of new talent into the San Antonio startup community will serve as a catalyst to spur further companies here. And he hopes some of the companies may decide to stay in San Antonio permanently upon completion of the program.
Seats has met with several of San Antonio’s angel investors and he says the community is starting to invest in technology and biotechnology companies locally.
“There is no scarcity of money in San Antonio,” Seats said. “There’s always money for good ideas and good people.”
Seats just returned from TechStars Demo Day in Seattle. He was especially impressed with Romotive, which creates a kit to turn an iPhone into a robot, Everymove, which works with companies to provide healthy incentives to their employees, Vizify, a social network data analysis site and GoChime, connecting brands with people on social media.
Calxeda introduced its high-performance low power semiconductors Tuesday to power Hewlett Packard’s servers.
The Austin-based start-up held an event in Palo Alto to introduce its new products along with its partner HP.
But in its hometown, employees, customers, analysts and others gathered to watch a live stream broadcast of the event and to celebrate. They met up at the Alamo Drafthouse on South Lamar in downtown Austin at 2 p.m.
Calxeda, formerly Smooth Stone, closed on $48 million in funding a little more than a year ago.
HP’s new server platform, called Project Moonshot, is designed to reduce costs and energy use for data center customers.
The HP Redstone Server Development Platform uses Calxeda EnergyCore ARM Cortex processors. HP plans for future versions to include Intel’s Atom-based processors among others. The platform is expected to be available by June of next year.