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Today’s funding and acquisitions news roundup from across the web:
eCommerce
eBay’s PayPal Buys Mobile Payments Startup Fig Card (via TechCrunch)
Finance
Matrix Partners Closes $650 Million Funds To Invest More In China, India (via TechCrunch)
Splother is a one-stop sponsorship and licensing service for musicians and brand managers. The Nashville and Los Angeles-based company was founded in 2010.
SUB: What is Splother?
Collins: A service where music supervisors and brand managers can select the best independent music for sync licensing or sponsorship and obtain a one-stop license.
SUB: How does it work?
Collins: Splother will have the best artists readily available, for many different licensing needs. Have a deadline, looking for the right sound or look for your product, go to Splother, find what you need, and click to pay, contracts are created automatically and you have your agreement.
SUB: What is the vision behind Splother?
Collins: To simplify the music sync licensing business.
SUB: How did the idea come about?
Collins: Dave Durocher, a longtime music publishing executive, wanted to create a simple sync licensing model, as well as a home for all artists or labels that own their creative rights and want to make their music or image available.
SUB: Who do you consider to be your competition?
Collins: Currently, there is not a model like Splother, there are music libraries that have a phone book of music, that is too deep to search through and quality level is low.
SUB: How are you marketing the service?
Collins: Viral, and we had a successful launch event in Nashville on April 15th. We have an office in Nashville and Los Angeles that has relationships with music and brand supervisors for all major channels.
SUB: When was the company founded, and what were the first significant steps you took in establishing it?
Collins: The company was founded in 2010 and we incorporated in 2011 in Tennessee with plans to become a B-corp.
SUB: What have some of the challenges you’ve faced been to this point in building Splother?
Collins: Innovating software methods we can patent to set our model apart.
SUB: Have you raised outside funding to this point?
Collins: Splother is owner and founder funded.
SUB: Do you plan to raise more in the near future?
Collins: On an as-needed basis, we have large plans. By this summer we plan to launch our Latin site for Spanish speaking markets. Next is the EU, UK, Asia. Due to the diversity and quality of our artists we also seek to create a rotation of music available on Internet radio. These large endeavors will most likely require additional funding.
SUB: Where do you see Splother in a year or so from now?
Collins: The global Amazon of licensing, our goals are to have the best quality artists available with speed to market. We plan to have offices in all major markets globally, to allow market specific marketing promotions targeted toward specific markets. Due to the level of quality and diversity of our website, we plan to also pursue an Internet radio station, that has all Splother artists on rotation, accessible from any wireless connection.
SUB: Finally, a question I always ask—as an entrepreneur who has weathered the bad economy, what advice do you have for entrepreneurs just starting out now?
Collins: Evolution and creativity needs to be at its highest level during down economic conditions. Be sure you are bringing something fresh and new to the table and know your revenue generators and focus on them. Cut out all bad business, focus on new and nurture current profit centers. So many business owners become complacent, and never evolve their model. The competitive landscape is continually changing.
Splother – www.splother.com
Today’s funding and acquisitions news roundup from across the web:
eCommerce
Flash Sales Site Ideeli Raises $41 Million (via TechCrunch)
Web Content
Russian Search Giant Yandex Seeks To Raise Up To $1 Billion In IPO (via TechCrunch)
Media Corporation Sells Gambling.com To Unnamed UK Company For $2.5 Million (via TechCrunch)
Exclusive: MarketSharing Raises $1 Million For Daily B2B Deals Site (Bonus: Invites) (via TechCrunch)
Cloud
Apple Reportedly Buys iCloud.com, Music Streaming Service Around the Corner? (via ReadWriteWeb)
Marketing/Advertising
Crisp Media Raises $6 Million From Intel And Others To Take Its Rich Media Platform Global (via TechCrunch)
Enterprise Software
Clarizen Raises $12 Million For Project Management Software (via TechCrunch)
BMC Buys Web Application Performance Management Software Maker Coradiant (via TechCrunch)
Social Media
Spiceworks Raises $25 Million To Be The Facebook For IT Managers (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Web Content
YouTube founders acquire Delicious, announce (and crash) new startup (via SocialBeat)
Sittercity Raises $22.6 Million To Connect Families With Caregivers (via TechCrunch)
Gaming
Zynga acquires Wonderland Software in UK mobile game expansion (via GamesBeat)
eCommerce/Mobile
Visa Makes A Strategic Investment In Disruptive Mobile Payments Startup Square (via TechCrunch)
Sparkfly Raises $2.5 Million For Its Mobile Engagement Platform SparkQuest (via TechCrunch)
Social Media
RIM Acquires Social Calendaring Application Tungle.Me (via TechCrunch)
Mobile/Gaming
PapayaMobile Raises $18 Million For Mobile Social Gaming Network (via TechCrunch)
Cloud
CloudPassage Raises $6.5 Million For Cloud Server Security Software (via TechCrunch)
SaaS
Evolv Raises $15.8 Million For Talent Matching And Intelligence Software (via TechCrunch)
MightyNest is an ecommerce site that offers environmentally safe products for homes and families. The Evanston, Illinois-based company was founded in 2009.
SUB: Please briefly describe what MightyNest offers.
Conn: MightyNest is an online store, resource center and community that helps parents create a healthy, safe home for their family. Our team of experts selects products for babies, kids and adults made with high-quality materials by reputable manufacturers. We carefully screen each product to ensure all are free of BPA, lead, flame-retardants, PVC, phthalates and other chemicals and heavy metals increasingly tied to health concerns. Supporting the MightyNest store, our blog, learn section and Facebook page serve our community of passionate families, enabling them to share ideas, research important issues and find safer product alternatives.
SUB: What is the primary value proposition you offer MightyNest customers?
Conn: MightyNest is the fastest route to peace-of-mind for busy parents. Peace-of-mind comes from knowing that every product we sell is thoroughly screened to make sure it is healthy, safe and non-toxic (see our pledge). Speed and ease come from our curated breadth of products. Our selection of products for the home includes kitchenware, baby and kid gear, reusable lunch gear, water bottles and coffee mugs, skincare, and more. In each category, we only select the best items, cutting through the clutter and making it easier for families to shop.
SUB: What companies do you consider to be your primary competition?
Conn: Given our product breadth, we compete with a variety of different businesses. Like any online retailer, we compete at some level with Amazon and online big box retailers. We also have product overlap with green sites (Babyearth) and niche sites that focus on one category (like toys or feeding). That said, our combination of product breadth and exclusive focus on helping parents create a healthy, safe home for their family sets us apart.
SUB: How did the idea for MightyNest come about? Was there one specific “aha” moment?
Conn: The idea first came about five years ago. It all started when my wife and co-founder, Kristen, and I had our first child. The reality that our decisions impacted another human being forced us to take a closer look at the products we were using in our home. We were startled to find that many of the products we used every day contained potentially harmful chemicals and had unnecessary risks associated with them. We became determined to find out all we could about bottles, toys, mattresses, cleaning supplies, dishware…you name it. Unfortunately, the process of scouring the web and separating fact from fiction was frustrating, discouraging and nearly impossible between diaper changes and midnight feedings. After years of doing our own research, we agreed there had to be a better way; a way to help people who don’t have the time to dedicate to research, but who care just as deeply for their health and their family’s health; a place where parents can go to research and buy safe, healthy products all in one place. MightyNest was born!
SUB: What were the first steps you took to founding the company? For example, did you secure financing first, did you assemble a team, build a prototype of the service, etc.?
Conn: First, we focused on shaping the idea and getting feedback from potential customers. We created a brand vision, designs and a logo and then shared it with as many people who we thought could be potential customers as we could find. The learning was fantastic. It helped us shape our vision and confirmed that there was a need.
SUB: Have you accepted outside financing, and/or do you plan to in the near future?
Conn: We just closed our only round of outside investment from a phenomenal group of angel investors.
SUB: How are you marketing MightyNest?
Conn: We focus almost exclusively on digital marketing. We are very active in search, paid and organic, social media (primarily Facebook), newsletters and with our affiliates. One of the areas that has led to success in engaging our customers is the way we combine content and Facebook. Between our blog and learn sections, we have an abundant amount of unique and useful content. We share this content with our Facebook community of 21,000, and it has been a great way to build a relationship with current and new customers. We just focus on being as helpful as possible and connecting with our users. It has been a great way to build awareness and learn.
SUB: Where do you see MightyNest in a year from now? What are your plans for the future?
Conn: A year from now our goal is for MightyNest to triple in size from where we are pacing right now. In the future, we want to be a nationally recognized brand with a thriving Internet business. At that point, we will also likely be evaluating an extension into a catalog business and select store locations.
SUB: Finally, a question I always ask—as an entrepreneur who has weathered the recent financial crisis, what advice do you have for those just starting a business now?
Conn: First, regardless of what is happening in the overall market, make sure you know who your customers are and verify that they actually need your product before spending too much money building anything. Second, if you are launching an Internet business, do everything you can to take advantage of inexpensive ways to get to market and test your product fit. Use open source for the product, drive awareness through social media, crowd source or use consultants to keep the cost of building your initial product low. All of those things can help you validate or evolve your idea.
MightyNest – www.mightynest.com
Today’s funding and acquisitions news roundup from across the web:
Advertising
MakeMeReach scores €3 million to take its Facebook ad solutions international (via TechCrunch Europe)
Gaming/Social Media
Social Gaming Startup Kobojo Raises $7.7 Million (via TechCrunch)
Enterprise Software
Enterprise Software Maker Lawson Bought By Golden Gate, Infor In $2 Billion Deal (via TechCrunch)
eCommerce
NexTag Acquires German Comparison Shopping Site Guenstiger.de (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Mobile/Advertising
ValueClick To Acquire Mobile Ad Network Greystripe (via TechCrunch)
Web Content
Online Form Builder Wufoo Acquired by SurveyMonkey (via Mashable)
Youwho Raises $5 Million To Show You Who You Are (via TechCrunch)
Mobile
Yahoo Moves Fast — Real Fast — To Scoop Up IntoNow For $20 – $30 Million (via TechCrunch)
Marketing/Advertising
Marketing Software Giant ExactTarget Raises $30 Million, Revenue Up 50 Percent (via TechCrunch)
Social Media
Pixelpipe Secures $2.3 Million To Help You Share Content With The World (via TechCrunch)
Gaming
Sohu.com Buys Majority Stake In Gaming Company 7Road For Up To $100 Million (via TechCrunch)Today’s funding and acquisitions news roundup from across the web:
Web Content/Social Media
Photo discovery startup Pixable raises $3.6M (via SocialBeat)
eCommerce
Sequoia Invests In Chinese Online Retailer Milanoo.com (via TechCrunch)
IT/Enterprise Networks
OpenFlow Startup Big Switch Raises $13.75M From Index, Khosla Ventures (via TechCrunch)
RewardTag is a digital tagging service that allows customers to track and retrieve lost devices. The Los Angeles-based company was founded in May, 2010.
SUB: Briefly describe the concept behind RewardTag. How does it work?
Nichols: RewardTag is a service that gets lost valuable devices back to the rightful owner. Our high quality tags digitally connect a personal message, promised cash reward, and contact information directly to the device through a unique ID number. All too often, people lose valuable items that are not only expensive, but also carry irreplaceable data. More times than one might think, the finders of these items want to return them, but don’t have the necessary information to do it. Attach a label that makes it easy for the finder to return it, plus promise a reward, and you’re way more likely to get that device back.
SUB: How many RewardTag customers do you currently have?
Nichols: One of our markets is individual customers online, of which we have around 400 customers. Another customer of ours is businesses who buy RewardTag labels for their employees, to put on company issued devices, of which we are in the process of selling in bulk to eight companies—ranging from small, local businesses to huge corporations.
SUB: Who do you consider to be your competitors?
Nichols: Our main competitors have been around since the early 2000s, and include bigger brands like www.stuffbak.com, www.boomerangit.com and www.lostfoundreturned.com. We are different in a number of ways. They are subscription based, never let the owner and finder communicate, and don’t offer cash rewards.
SUB: How are you marketing the service?
Nichols: Right now we are doing social media marketing for exposure and customer service, selling on group buying sites (jasmere.com, tippr.com, eversave.com and buywithme.com) for exposure and cash flow, just now implementing an online affiliate program for other sites to drive customers to our site...this is all e-commerce. So far, our ROI from group buying has been the most effective here.
We are working on partnering with device companies and device case companies, like Speck, to sell our product with theirs.
We are working with a consumer electronic distribution company to get our product shelved at stores like Best Buy.
As I mentioned, we are working on selling tags in bulk to businesses.
SUB: When was the company founded, and what were the first steps you took in establishing it?
Nichols: The company was founded in May, 2010. The first thing we did was set it up as an LLC through a family friend that’s a lawyer.
SUB: What was the “aha” moment when you figured out you had something with the product that became RewardTag?
Nichols: I came up with the concept behind RewardTag in July 2009 after partaking in the Running of the Bulls in Pamplona, Spain with my brother. He took amazing pictures of all the action, and a few days later, lost his camera. We realized that even if it were found, it would never make it back to us and we’d lose those pictures forever. Then, my friend and I found a camera while I was in Spain, and randomly happened to know the girl who owned the camera. She sent us cash in return for mailing the camera back to her. AHA!
SUB: What have some of the challenges you’ve faced been to this point in building RewardTag?
Nichols: The biggest problem we had was finding the right computer designer and programmer for the site. Because we didn’t have much money to get it built, we needed to find a programmer who would build the site for a percentage of ownership in the company and no up-front payment. After a long search, we finally found one.
SUB: Have you raised outside funding to this point? Do you plan to raise some in the near future?
Nichols: No, we’ve had offers for small contributions in exchange for equity, but rejected them. Our up-front costs were so minimal that it wasn’t worth giving up ownership in the company. When we are looking to expand down the road, it is much more likely that we’ll be interested in funding.
SUB: Where do you see RewardTag in a year from now?
Nichols: We see RewardTag on shelves at electronic stores like Best Buy and Radio Shack, on over 100,000 company-issued devices and sold with device companies or device case companies like Canon or Speck.
SUB: Finally, a question I always ask—as an entrepreneur who has weathered the bad economy, what advice do you have for entrepreneurs just starting out now?
Nichols: Most people say “it’s never a good time to become an entrepreneur.” However, fortunately for my business partner and I, this was actually a great time to become entrepreneurs. Danny Coorsh, the other co-founder, is 20-years-old and still a student at the University of California. I just graduated from USC in May and finished my master’s in December—so the majority of our business was started while we were still students.
RewardTag – www.rewardtag.com
Today’s funding and acquisitions news roundup from across the web:
Gaming
Playmatics Raises $1 Million To Make Reality-Based, Social Games (via TechCrunch)
Web Content
Funding Circle, the Zopa-for-SMEs, raises £2.5m led by Index Ventures (via TechCrunch)
Busuu raises Angel round from FON-founder Martin Varsavsky (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Advertising/Marketing
eBay Acquires Location-Based Media And Advertising Company WHERE (via TechCrunch)
Electronics ecommerce site Decide raises $6 million
Online Search, Advertising Company Lijit Networks Lands $10 Million (via TechCrunch)
IT/Security
Digital Signal Raises $15M For ‘Minority Report’-Type Facial Recognition Tech (via TechCrunch)
Mobile
Mobile Barcode Company Scanbuy Secures $5 Million In Funding (via TechCrunch)
JabberJury is a conflict resolution website that uses social media to facilitate debates between people. The Chicago-based company was founded in February of this year.
SUB: What is the concept behind JabberJury?
Wielgus: JabberJury is a courtroom-themed social media website. I like to call it “conflictainment” or the entertainment derived from the conflict of others. We provide a forum where people having a disagreement can upload a video representing his or her respective side of the argument and the rest of the site’s visitors can vote on who is right and wrong. Aside from receiving “social justice” site visitors compete for points called Jabbies that can be redeemed for prizes, donated to charity or help increase one’s standing in the site’s social hierarchy. Unlike other conflictainment options, our content is diverse and quick—just what the Internet generation likes. And, if you don’t like the content of one case, click to the next. We are [going to be] to conflictainment what Amazon is to books.
SUB: Please describe how the site works. What is the user experience like?
Wielgus: With a few bits of information, or using an existing Facebook account, a user can register to become a juror and receive 500 Jabbies. Then, he can search for different cases that may be of interest. Each case has a description and a video. The juror just watches the video and then clicks on a vote button once he chooses a side. Jurors can also leave comments about a case. Each vote costs 50 Jabbies, but if the juror is on the winning side, he will get back 100 Jabbies. If the juror wishes to contribute his own case, he follows the online instructions to create a case and either upload a video or record it directly from his webcam. Once both parties contribute their content, the case goes live and the voting begins.
SUB: Who do you consider to be JabberJury’s competition?
Wielgus: Squabbler.com and PeoplesCourtRaw.com are the two closest competitors with an online product. Of course we also compete for the time of our users which can come from traditional courtroom television to time they’d otherwise spend on Facebook or YouTube. Relative to our online competition, we share may features. A key differentiator is our point system, Jabbies, which is missing from the competing sites. Squabbler for example, shows how the vote is going while the case is still active. We do not believe we should show the results until the end as we want people to vote for that they believe is right, not simply voting for what may be the clear winner. That’s like being able to place a bet on the Superbowl in the final minutes with one team out to a wide lead.
SUB: What inspired the idea for JabberJury?
Wielgus: In September ’09, I was out with my wife and my co-creator, Angelo Rago—no longer with the company—and Angelo’s then girlfriend. My wife and I bought tickets for a comedy show at The Improv. Angelo’s girlfriend received a phone call just as the show was about to start. Visibly upset, she said she had to go. Angelo reached into his pocket for his keys and as he handed them to her, he asked me if I’d give him a ride later. After the show, Angelo called his girlfriend to see where to meet her, but we could hear her screaming through the phone. After they hung up, she continued to send angry text messages to Angelo. Not wanting to call it a night too early, my wifewife, Angelo and I headed to a local bar for a nightcap. The angry text messages continued. We discussed how she was probably telling her side of the story to her friends and painting Angelo in a very unflattering light. We discussed how in general, most people would tell a story with a bias towards their side, so getting fair and objective input from friends was hard. We wondered how the bar patrons would vote if they were able to hear both sides of the story. We then wondered how the whole world would vote if given the chance. We thought such a site surely had to exist. When our search the next day didn’t turn up a good solution, a business idea was born.
SUB: What is your business model? How does JabberJury generate revenue?
Wielgus: Advertising is our primary revenue source, so in many ways we are like any other online publisher. Our next revenue opportunity comes from the monetization of our virtual currency, which behaves much the same as other online games: users need points to play, they interact with a sponsor, take a survey, etc. Last, but certainly not least, we have our market research component. When we reach a critical mass of users, we will be able to place cases that help marketers learn about their customers while building their brand. As an example, think of a case between a caveman and a tiny lizard on behalf of a well-known insurance company.
SUB: How are you marketing the site?
Wielgus: We place focused ads on Facebook. We also place ads on Google. Luckily there aren’t many advertisers that want to target a phrase like, “I am fighting with my ______” so we can get those ads for minimum prices. To target gamers, we also place our messages on the “offer walls” of other games as a way to get virtual points for the game they are currently playing by simply signing up as a Juror on JabberJury. Offline, we are kicking off a nationwide brand ambassador program. The brand ambassadors will help spread the word about JabberJury using voter registration cards that include a code to get bonus Jabbies at registration. They will also help record and contribute new content to the site.
SUB: What were the first steps you took to establishing the company?
Wielgus: First, we looked for competition. Then we asked people for their opinions of the concept. Then we looked for revenue models that would make sense. Once all that was done, I started looking at technology solutions that could pull it all together so I could get a sense for what the costs would be. With the research under my belt, we built a small demo, formed the company (LLC), and reached out to our first investors.
SUB: Have you raised outside funding to this point? If so, do you plan to raise more in the near future?
Wielgus: Early on, we raised $120,000 from friends and family. In October 2010, we entered into a $1.2 million convertible debt financing agreement with a group out of South Florida. The group was unable to provide the financing in the agreed tranches, and in March of 2011, with a large check returned as NSF, that this group would not be able to cure its breach. We are currently seeking new capital partners to replace approximately $1 million in financing.
SUB: Where do you see JabberJury in a year from now?
Wielgus: In a year, I’d like to see us: 1) surpass 1 million registered users; 2) have some of our interesting content get mainstream and viral mentions; 3) have strong direct advertiser relationships; and 4) be operating on positive cashflow.
SUB: Finally, as an entrepreneur who has successfully navigated the recent bad economy, what advice do you have for those just starting a company?
Wielgus: When you think you’ve done enough due diligence, do some more. Having a personal relationship with someone does not mean that they will perform in a business setting. Be sure to get advice from people that will be honest with you, even if that advice may be painful to get.
JabberJury – www.jabberjury.com
Today’s funding and acquisitions news roundup from across the web:
eCommerce/Social Media
Ticketfly raises another $12M to upend the ticketing industry (via SocialBeat)
TreatFeed Raises $5.4 Million For Rewards-Based Social Shopping Platform (via TechCrunch)
eCommerce
Consumer Electronics Shopping Service Decide Raises $6 Million Pre-Launch (via TechCrunch)
Andreessen Horowitz Leads $1.75M Round In Freebie Marketplace Listia (via TechCrunch)
Social Media
Tagged Buys Popular Social/Instant Messaging Client Digsby (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Web Content
Real Estate Listings Site Zillow Files For $51.75 Million IPO (via TechCrunch)
Concur Partners With, Invests $40 Million In India’s Online Travel Site Cleartrip (via TechCrunch)
SilverRail raises further $5m for its passenger rail ticketing platform (via TechCrunch Europe)
eCommerce
Bidmyway Raises $1.35 Million In Funding To Build An ‘eBay For Local Deals’ (via TechCrunch)
IT/Analytics
Localytics Raises $2.5 Million For Mobile Analytics Platform (via TechCrunch)
Mobile/eCommerce
Digby Lands $8 Million To Help Retailers Power Mobile Commerce (via TechCrunch)
IT/Security
Metaforic Raises $8 Million To Combat Software Pirates, Hackers (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Advertising/Marketing
Targeted TV Provider Invidi Closes $49 Million Round With DirecTV (via PaidContent)
MarketShare Announces $32M Investment from Elevation Partners
Education
Online Education Startup Instructure Raises $8M From Eric Schmidt’s Tomorrow Ventures, Tim Draper (via TechCrunch)
Editor’s Note: Once in a while, StartUp Beat re-runs executive Q&As from the past based on relevant news. Today we’re re-running one from last February with Currensee CEO and President Dave Lemont. Currensee today announced that it has raised $4 million in Series C funding.
From February 10, 2010:
SUB: Approximately how many users do you now have? What has your growth been like to this point?
Lemont: We are on track to reach over 12,000 active Forex trader members in our community in 2010. Our monthly growth has been very strong, especially since our official beta launch in October of 2009. We have been lucky to have partnered with some of the top players in the industry—brokers like FXCM, IBFX, Forex.com, Alpari, and MB Trading, portal partners such as DailyForex, Informed Trades, and Traders Laboratory, and a variety of partners such as SpotEuro, WinnersEdgeTrading, The Hansen Group, Candlecharts and many more. We have some exciting new features and programs launching in Q1 and Q2 that will continue the viral growth of membership.
SUB: Sharing trading tips and strategies on a social networking platform seems somewhat counterintuitive, on the surface. What is it about your site that encourages people to collaborate?
Lemont: Something we continue to hear from traders is how lonely Forex trading can be. We have a video series that profiles “Life in the Basement” and how Currensee changes that world for Forex traders. Traders are looking for ways to connect with other traders in a trusted way. The forums and discussion boards are often plagued with traders talking a big game but it can be tough to know who to trust. Currensee is all about real traders and real trades in real time, so you have a clear picture of the other traders in the network. We also hear frequently that Forex traders have a hard time knowing how well they are doing. It’s easy to burn out when you don’t have a strategy that you can measure over time. We give traders the ability to set their strategy—actually as many as they’d like—and measure themselves over time. It’s the best way to see what’s working and what’s not and it’s an excellent way to connect with other like-minded traders. We are excited to be the place where Forex traders can meet, collaborate and make decisions in real-time. It’s all about making more informed trading decisions and we are happy to be at the forefront of this new, transparent world.
SUB: Can you explain your revenue model in a bit more detail?
Lemont: Even though Currensee is currently free to traders, we make money in a few different ways. We offer a number of value-adding products to Forex traders, such as our recently launched Currensee Marketplace, where we offer trusted Forex products and services, and we take a small commission on these. Soon we will be introducing our Currensee Trade Leader program, where experienced Forex traders can be “followed” by less experienced traders and get paid for successful trading. We will also be introducing different levels of subscription services for access to advanced social analytics that help traders make more informed trading decisions. We also act as an Introducing Broker (IB).
SUB: What are some of the challenges you’ve found in running a social networking site that brings together people from 64 different countries?
Lemont: By its very nature, Forex trading is an international business, and since the Forex market never closes, it is very exciting to maintain a global community that is active 24/5. We are really facilitating communication and transparency between traders from all corners of the world, and I think it’s interesting that a trader in Michigan might find that they share the same trading style as a trader in Okinawa, Japan. Currensee’s model makes it easy for like-minded traders to connect, regardless of geography, by providing a network where they can chat about their trades in real-time.
SUB: What do you envision for Currensee in a year from now?
Lemont: We started 2009 with a few employees, a great product idea, and our funding from North Bridge. As we kick off 2010, we have more than 20 employees, have built a robust, trusted Forex platform, including our Currensee Marketplace, and are on track to grow our membership to 12,000 members by year end. We look forward to many exciting developments, including the recent launch of our Trade Leaders program for experienced Forex traders, several exciting partnership announcements, and the growth of our Marketplace that will help us to continue to support and develop our free platform. With the tremendous growth we saw in our first year, we are confident that Currensee will be known around the world as the trusted source for real time trade collaboration and as the trusted source for finding excellent Forex products and services.
SUB: What challenges have you experienced over the last year, since you launched (especially considering the down economy)?
Lemont: We began building our business during one of the most difficult times in our economic history. We continue to be fortunate to have a strong team, excellent funding and a loyal base of members all of which helped get us to where we are today. The launch of the public beta and our Marketplace were also both great challenges for us in 2009. Our public beta was launched in direct response to more and more traders wanting to join each month while we were in private beta. It was difficult to hold back and wait but we wanted to be ready to open the platform and chose to take the time to work out the kinks and add new features we knew traders would want. Our Marketplace was a huge accomplishment for our team. We basically built an “Amazon-like” store in under two months, which came with more challenges than you probably have time to hear about! This included everything from creating our own unique currency for the Marketplace, called Currensee Bucks, and implementing a full payment system for purchases and renewals, not to mention aggregating the products and services from a wide variety of partners. It was quite an undertaking but we launched in November and the Marketplace has been very successful and has become the place for trusted Forex products and services.
SUB: Finally, what tips do you have for other startups, especially those that are starting out in such a challenging economic climate?
Lemont: Starting a business is tough, even in the best of circumstances, and certainly the prospect of starting out in a difficult economy is downright terrifying. It’s a competitive marketplace, and funding isn’t as easy to come by as it once was, which is why it’s more important than ever to make sure that your business model stands out from the pack. And you can’t just assume that things will turn around—it is safer to assume that they will not and be prepared to stand on your own two feet. Companies that can accomplish this will be positioned for success when things finally balance out.
Currensee – www.currensee.com
Today’s funding and acquisitions news roundup from across the web:
eCommerce
KupiVIP secures $55m funding to become the Amazon of Russia (via TechCrunch Europe
GreenTech
Ioxus Raises $21 Million For Improved Power Storage Technology (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Web Content
Sugar raises $15M for women’s focused media site (via MediaBeat)
OpenBuildings Unveils Its New Architecture Database And Raises $2 Million In Funding (via TechCrunch)
Social Media
Jive Bets On Big Data With Acquisition Of Software Startup Proximal Labs (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
eCommerce/Social Media
Social Commerce Network Lockerz Raises $30 Million (via TechCrunch)
Mobile/Advertising
Ozura World buys mobile ad network Tatoo Media for USD 60 million (via GoMo News)
Gaming
Online game startup Tiny Speck raises $10.7M from Andreessen Horowitz and Accel (via GamesBeat)
Mediastay raises €15 million to take its game monetization solutions international (via TechCrunch Europe)
Web Content
BookingBug secures $350,000 Angel round to scale up (via TechCrunch Europe)
eCommerce
StylistPick secures $8m in Series A to expand its monthly fashion offers (via TechCrunch Europe)
eBookFling is a nationwide ebook swapping network. The New Jersey-based company was founded in 2010.
SUB: Please briefly describe the service you offer and the technology behind it.
Burke: eBookFling.com is a nationwide swapping network for Nook and Kindle ebooks for tens-of-thousands of members to request 2-week book loans at the cost of one credit each. It works by utilizing the lending feature already enabled on many Kindle and Nook ebooks, which allows an ebook owner a one-time opportunity to loan the ebook to someone and have it automatically returned to the owner’s device in 14 days. An eBookFling borrower will spend one credit to borrow a book from any of our tens-of-thousands of members. We’ll collect the loan via a unique email address, reward the lender with one credit, and pass the download info from Amazon or Barnes & Noble on to the borrower.
SUB: What is the primary value proposition you offer your users?Burke: The biggest question readers always ask is: “What should I read next?” It’s not the easiest thing to commit to a purchase of a book you don’t know you’ll like. eBookFling creates a unique book discovery opportunity for readers to try before they buy at no cost to them. It also allows readers to extract some value out of the ebooks that have been purchased and read, just sitting on their e-readers collecting digital dust.
SUB: Obviously Amazon and Barnes & Noble are competitors, but who else do you consider to be your primary competition?
Burke: Amazon and Barnes & Noble are not competitors at all. They’re not only the primary source of our revenue via commissions when members purchase ebooks, but are also providing the lending technology making our whole swapping network possible. Currently, Kindle and Nook books are the only ebook platform with publisher clearance to allow readers to loan out an ebook.
As for competition, we’ve seen other sites pop up offering a similar lend-swap model, but do not provide a fair currency to enable swaps, do not track and ensure delivery of requested ebooks, and are either for Kindle or Nook exclusively. Spreading out to both platforms allows members a wider selection of available ebooks.
Burke: How do we market eBookFling? Via media attention and articles.... just like yours.
SUB: How did the idea for eBookFling come about?Burke: A friend of mine gave me the idea a year ago when only Nook books had lending functionality. Once Amazon launched Kindle book lending as well, it enabled a large-enough marketplace for a service like eBookFling.com to thrive.
SUB: What were the first steps you took to founding the company? For example, did you secure financing first, did you assemble a team, build a prototype of the service, etc.?
Burke: The company is financed by me. The founding team is made up of members of my other company—a “Netflix for books” home delivery rental service, BookSwim.com.SUB: Have you accepted outside financing? Do you plan to in the near future? Where do you see eBookFling in a year from now?
Burke: No outside financing yet, and no immediate plans to. We’ve enjoyed massive success in our first month of operations, giving us the ability to grow organically, for now.
We’ve already had thousands of flings, (borrow requests), and as e-readers rise in popularity, we hope to have a half-million flings a year from now. This will not only require our persistence for growth, but also acceptance from publishers...many of which have not yet enabled lending on their entire catalogs.
SUB: Finally, a question I always ask—as an entrepreneur who has weathered the recent financial crisis, what advice do you have for those just starting a business now?
Burke: Got an idea? Do it. Don’t hesitate. A volatile market means customers and financial backers will be looking for leaders like you who made something happen despite the turmoil; and when the dust settles, you’ll be miles ahead of new competition who decided to jump in the game based on your success. eBookFling – www.ebookfling.com
Today’s funding and acquisitions news roundup from across the web:
Mobile
Altair Semiconductor raises $26M for super-fast wireless data chips (via VentureBeat)
GoldRun raises USD 1.1 million for mobile augmented reality (via GoMo News)
IT/Broadband
Level 3 buys broadband provider Global Crossing for $3B (via DealsBeat)
Cloud
Cloud video startup Zixi raises $4M (via MediaBeat)
Web Content
WorkSnug secures funding, locates nine Angels (via TechCrunch Europe)
Today’s funding and acquisitions news roundup from across the web:
Web Content
Kno Bails On Hardware, Takes Another $30 Million. Is An Android App Next? (via TechCrunch)
Group Buying Site Groupalia Raises $15M, Expects A Turnover Of $150M In 2011 (via TechCrunch)
Mobile
Sequoia Invests $8 Million In Messaging App Maker WhatsApp: Sources (via TechCrunch)
Quixey Raises $400K From Eric Schmidt’s Innovation Endeavors For App Search (via TechCrunch)
Advertising
Online ad network Rocket Fuel launches ahead with $6.6M (via DealsBeat)
Video Ads Roll-Up as Blinkx Buys Burst Media for £18.5 million (via TechCrunch Europe)
Social Media
New Twitter Ecosystem Poster Child SocialFlow Secures The Firehose And $7 Million Round (via TechCrunch)
GroupPrice is a daily deals site for businesses, and business products and services. The Redwood City, Calif., company was founded in 2010.
SUB: What is the end-user experience like for your business customers?
Jepson: The GroupPrice deals are presented on the home page with a simplified one step buying mechanism in a fresh and fun tone. We continue to refine the experience by listening to hundreds of comments from member calls, surveys, posts to Facebook, LinkedIn and tweets.
SUB: Who are your target markets? Are you targeting large enterprises or SMBs?
Jepson: We attract startups, micro-businesses, and small businesses that create the majority of their revenue online with credit card transactions. We have found that they have been badly weakened by the economy and really want to grow their revenue while cutting costs.
SUB: What is the primary value proposition you offer your customers? Do you consider GroupPrice to be a Groupon for business?
Jepson: We enable our customers to find and buy a service or software in five minutes that enables them to grow their revenue while getting discounts of 40-60 percent. We are the Groupon for business, yet have meaningful differences in our business model. First we focus on business software and services, we offer our deals for seven days, and the first person that wants the deal gets it.
SUB: What companies do you consider to be your primary competition?
Jepson: Although small businesses bought $5B of software, services and supplies online in 2010, they did it through a fragmented process that takes 30 minutes to complete and that GroupPrice has transformed into a five-minute process. Although we don’t see competitors in the small business market with the same “grow revenue while cutting cost” focus, there are large business “source and spend” platforms like Ariba.
SUB: How did the idea behind the company come about? Was there one specific “aha” moment?
Jepson: Yes, and a string of insights that started during the work I did in 2000 leading the launch of the global small business portal, Bpath.com, as COO. Since then my passion and skill for enabling the global small business market, have been enhanced by the Internet and social commerce technologies. The confluence of these technologies uniquely applied to the GroupPrice solution allows us to bridge the “commerce chasm” that exists between small businesses and the merchants that sell to them. The small business market has an urgent need for a more efficient way to buy, and merchants need a lower cost way to sell. Now they both win with GroupPrice.
SUB: What were the first steps you took to founding the company? For example, did you secure financing first, did you assemble a team, build a prototype of the service, etc.?
Jepson: Being an entrepreneur with a work philosophy of creating a hypothesis—testing—pivoting until I found what really works, I worked in my home office and self-funded for the first half of 2010. In parallel I assembled a world-class set of advisors that spanned the technology, social media, and business dimensions while forming a customer advisory group where I could test specific ideas and designs. Once the idea was super exciting to all of us, “the big aha”, I pulled together a website development team and built a working prototype and started testing it with my customer advisory group.
SUB: Have you accepted outside financing? Do you plan to in the near future?
Jepson: The combination of small businesses really liking the prototype website allowed me to attract investors who were eager to help launch GroupPrice. In July 2010, armed with a one-page business plan and 10 slide presentation I was able to raise $285,000 from four well know angels. Growing our traffic, small business members, and revenue has been fun for the internal team of four, and we are now looking for funds to accelerate our success.
SUB: How are you marketing the service?
Jepson: It is a secret mix of SEO, social media, public relations, blog, email, referrals, affiliates and partners, including viral programs to enable explosive growth.
SUB: Where do you see GroupPrice in a year from now?
Jepson: It wasn’t until Groupon was past their 1st year and into a second that they became widely noticed. We have a similar 1st year trajectory and will stay focused on our rollout in the US for 2011. Though we see our current results indicating that we will grow explosively later this year and be profitable in 2012.
SUB: Finally, a question I always ask—as an entrepreneur who has weathered the recent financial crisis, what advice do you have for those just starting a business now?
Jepson: Create a business in a market you are passionate about first and can make money in second. Do the research yourself, and always test and refine the idea until you are so excited you can’t sleep at night. Then check it with your advisors, your audience, then build it—and use GroupPrice.
GroupPrice - www.groupprice.com
Today’s funding and acquisitions news roundup from across the web:
Social Media
SocialGuide Raises $1.5 Million For Social TV Guide (via TechCrunch)
Mobile
Orbotix Scores $5 Million. Because You All Want Smartphone-Controlled Robotic Balls (via TechCrunch)
Mobile/Advertising
Mobile Advertising Startup GoldSpot Media Raises $12 Million (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
eCommerce
LivingSocial Raises $400 Million (via Mashable)
Groupon Acquires Indonesian Group Buying Site Disdus (via TechCrunch)
Kleiner Perkins Pumps $20 Million Into China’s Luxury Shopping Site Xiu.com (via TechCrunch)
Finance
Andreessen Horowitz Announces Yet Another Growth Fund of $200M (via TechCrunch)
Web Content
UsingMiles Raises $2.7 Million For Rewards Management Platform (via TechCrunch)
Marin Software Raises $16 Million For Paid Search Management Platform (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
Web Content
Free Electronic Medical Records Service Practice Fusion Raises $23 Million (via TechCrunch)
Gaming
Zynga buys MarketZero team: 11th acquisition in 11 months (via GamesBeat)
IT/Semiconductors
Texas Instruments To Pony Up $6.5B For National Semiconductor (via PCMag)
TripAlertz is a membership-based travel site that uses volume and collective buying to give members the best price on airfare and hotel. The Boston-based company was founded in 2010.
SUB: How would you describe TripAlertz in a few sentences?
Murphy: TripAlertz.com is a private, members-only travel site that uses the power of collective buying to deliver our members the guaranteed best prices. Once booked, travelers have the option to meet & share advice with their fellow travelers via our collaboration page to make the most of their travel experience. For our grand launch, we are offering members the chance to win a free trip to space! Check it out at www.tripalertz.com/space. Free and takes seconds.
SUB: What inspired this concept?
Murphy: Travel and social are the perfect match. One could argue that TripAdvisor was the first social network. Today’s travel sites make travel a transaction, a robotic process that takes everything we love out of it. Through the inherent power of social media, we saw the ability to create the best prices, experiences, and travel advice. When this site hits critical mass, the benefits will continue to increase.
SUB: Brief us on the user experience from logging on to purchasing to participating socially with other users.
Murphy: Users create a membership account, free of charge, and once logged on can view and browse the live and upcoming travel deals. Once members purchase a deal, they will receive an SMS TripAlertz when the price drops. After purchase, members get private access to a collaboration page to meet and share advice with their fellow buyers. For example, where is the best nightlife? Should I rent a car? Our members get advice from people who have a vested interest in the success of the trip. There is so much more, so check it out at www.tripalertz.com/space.
SUB: What initial steps were taken to launch the site and service?
Murphy: The most important step was recruiting a team of travel, social media, and technology experts. We have an incredible team that is ready to take the site to the next level with this grand launch. With a solid team in place, we spend our days evaluating the best steps to incrementally grow the business, and the opportunity to launch space travel was a no brainer.
SUB: What is your business model? How do you make money?
Murphy: We take a cut of each transaction on the site. We also generate revenue from our concierge recommendations on our pre-trip collaboration pages. According to PhocusWright, the in-destination travel activities market is a $27 billion market, so we are aggressively targeting that opportunity.
SUB: What are the advantages of using TripAlertz, in terms of cost savings, as opposed to other travel sites like PriceLine and TripIt?
Murphy: Priceline is an opaque site, wherein you do not know where you are staying until your credit card has been charged and there are no refunds. On TripAlertz, your discount is virtually identical (25-60 percent), yet, you know where you are staying and you can cancel up to 15 days before travel for a $25 cancellation fee.
TripIt does some travel deals, yet their primary focus is organizing your travel confirmation e-mails into one easy-to-use format. A great service that I love, just different than what we do.
SUB: How do you see TripAlertz expanding in the market? Where would you imagine it to be as a company five years from now?
Murphy: The vision for TripAlertz is to bring like-minded travelers together to experience the world, while also delivering the absolute best value online. We see TripAlertz as an experience-focused travel site, as opposed to a commodity site like the major online travel agents. With our blend of Travel and Social, we feel we will expand globally in relatively quick fashion. I like to imagine hundreds of thousands of travelers experiencing the world at the same time. Makes me happy...
SUB: Have you raised outside funding to this point? Do you plan to do so or raise more in the near future?
Murphy: We have raised $1.25 million in funding to date from Conscious Living Ventures and syndicate of wealthy angel entrepreneurs. We are always looking for the right strategic money to grow the business, and we are in talks with several investors.
SUB: Describe your space travel promotion. How is TripAlertz involved with the burgeoning space travel business?
Murphy: Our goal is to be a pioneer in space travel. We do not build the technology like our partner XCOR Aerospace, yet, we are passionate about creating awareness for the next frontier in travel. Every day I imagine what it would be like to stay in a hotel on the way to the moon. Once this is possible, everyone will need more than two weeks’ vacation time to enjoy!
SUB: How are you marketing the site?
Murphy: We market the site through a combination of public relations, search, social media, and creative promotions like space travel. Travel marketing is a true joy...
SUB: Finally, a question I always ask: as an entrepreneur who has weathered the down economy and built a growing business, what advice do you have for those just starting out—especially in an economy that remains less than dynamic?
Murphy: My advice is not to give into any limiting belief systems. There will always be reasons not to go after your dream, and just remember, the essence of entrepreneurship is finding solutions to any issues put in your way. You will have to recommit to your project hundreds of times. That’s what makes it so much fun, and at the same time, I highly recommend you take care of your body. The entrepreneur’s energy and passion is what fuels innovation, so stay healthy and vibrant, and your chances of success will increase.TripAlertz – www.tripalertz.com
Today’s funding and acquisitions news roundup from across the web:
Web Content
Livebookings Processes 1 Million Reservations In A Month, Raises $10 Million (via TechCrunch)
Online pawn broker Borro raises £7.5m led by Augmentum Capital (via TechCrunch Europe)
Ranker Lands $1.3 Million From Tim Draper And Others, Tries To Rank *Everything* (via TechCrunch)
HomeAway Broadens Presence In Australia With Acquisition Of Vacation Rental Site RealHolidays (via TechCrunch)
IT/Web Management
SmartBear Buys Website Performance Monitoring Company AlertSite (via TechCrunch)
IT/Security
EMC Buys Network Security Monitoring And Analysis Company NetWitness (via TechCrunch)
Finance
Twitter, Chegg Investor Insight Venture Partners Closes $2 Billion Funds (via TechCrunch)
Today’s funding and acquisitions news roundup from across the web:
GreenTech
Agilyx Raises $22 Million To Turn Plastics (Back) Into Oil (via TechCrunch)
Cloud/Software
OfficeDrop Raises $1 Million For Digital Filing And Scanning Software (via TechCrunch)
Finance
Bessemer raises $1.6B fund — enough to own 3% of Facebook (via DealsBeat)
Advertising
TidalTV raises $30M to optimize video advertisements (via VentureBeat)
