Nashville Is Great. Ohio Is Too. This Guy Is Oblivious.

On Saturday, the Cleveland Plain Dealer ran a guest post by Dr. Jeffery Canter. Canter is a retired professor of molecular physiology and biophysics at Vanderbilt University Medical Center and a consultant for many healthcare startups in Nashville.

Apparently Canter lived in Ohio before Nashville. In his piece Canter criticizes Ohio as a whole and offers a laundry list of tips to keep it’s talent, which he says Ohio is giving to Tennessee for free. All of this is based on people Canter has met who relocated to Nashville to launch their businesses. Canter makes a point that Ohio has paid for these people twice: “First, you paid for educations that were far better than ones these new Tennesseans would have received in Nashville. Second, these productive young people removed themselves from your tax base and left you behind to pay even higher taxes.”

At Nibletz our mission is clear: to give a voice to startups everywhere else. With offices in both Memphis and Cincinnati, we know a lot about the ecosystems of each state.

Tennessee has an impressive startup ecosystem. They were the second state region in the Startup America Partnership. There are 9 accelerator regions across the state that are administered by a public private partnership called Launch Tennessee. There are several incubator and accelerator programs, with the biggest being GigTank (Chattanooga), Jumpstart Foundry (Nashville), Seed Hatchery (Memphis), and Zeroto510 (also Memphis).

If you think there’s a lot of entrepreneurial and startup activity in Tennessee, you’re absolutely right, but some believe that Ohio has even more going on.

For starters the Brandery in Cincinnati is one of the top 10 startup accelerators in the country. Cincinnati also has the new Cintrifuse initiative, CincyTech for capital, and regularly holds events like Startup Weekend.

Traveling north, Columbus also has it’s share of exciting startup activities and initiatives. Columbus is home to not one but three accelerators; 1492, 10x, and the Founder’s Factory. TechColumbus is one of the driving forces behind the startup scene, and there are also plenty of resources for capital.

Move a little further north to Cleveland and there’s still NO shortage of startup activity. In fact the nationwide non-profit startup acceleration organization, Jumpstart Inc, is headquartered in Cleveland. Then again there’s not just one but two startup accelerators: LaunchHouse and the new FlashStarts founded by Cleveland serial entrepreneur Charles Stack.

So, what makes a good ecosystem?

Gary Hardin at Knoxville startup BounceIt tweeted us the other day, after we ran Entrepreneur Magazine’s 7 best places to startup. Hardin thought that Tennessee should be on that list because there’s no income tax. Makes logical sense, right? Maybe.

As all of our readers know, during the nationwide sneaker strapped road trip, we’ve seen nearly 100 different startup ecosystems in person and are often asked where would we move if we could go anywhere. We chose Memphis, and at that time we had no idea there was no income tax in Tennessee.

When a startup chooses an accelerator or to relocate for one reason or the other, it’s typically resource or industry related. Nashville is hot for medical devices (you’re probably thinking music, but medical devices definitely prevail). If I needed help with branding, I’d move to Cincinnati; automotive, yes we’d still move to Detroit, Government relations or government sales, DC and so on.

Native Memphian Sarah Lacy penned a column just days after her trip to Nashville’s Southland conference entitled “Memo to non-Valley, non-NYC ecosystems: No one you want cares about cost of living.” And guess what, they don’t. Facebook Co-Founder Dustin Moskovitz also says he wouldn’t move somewhere just for optimized taxes. In fact he said this 13 months before Lacy’s article.

Are the Plain Dealer and Dr. Canter just oblivious to what’s going on around them in the startup space?

There are two certain things certain in life: death and taxes. In general, startups are oblivious to both.

Where ever you are, you need to make plans to attend this startup conference for startups everywhere else.

Image credits: Nashville Cleveland

What Do You Do When Your Startup Fails? Create Stuffed Meme’s Of Course

In April 2012 we reported on a great new startup in Minneapolis that was trying to change the way that people watched indie films. That startup, Altsie, was a great idea with a solid founder, Lucas Rayala. The idea worked like this: a movie go-er checks out the film online and purchases a ticket online. Then they attend the movie among new like-minded friends at a venue that also supports the indie movie circuit. Voila! An instant offline social mix.

While it was a great idea and picked up some traction, six months later they shut the startup down. When they shut it down though, Rayala went above and beyond, not for himself or his team but for other entrepreneurs. He first penned a piece about his failure that appeared on TechCrunch. Then he released what he called “The Altsie Report: Summary of a startup that didn’t quite work out”, giving out advice to fellow entrepreneurs that would listen to help them succeed. It’s a similar approach to what path.to just did this week when they shut down.

So now what’s Rayala up to?

He’s working on another startup that’s in strict stealth mode. In the meantime he’s doing something fun and exciting that may catch on more than he hopes. We know he wants to do another tech startup, but this new idea is sharp.

“Working with a talented group of artists, I created Mr. No and his Meme Friends, a gang of cartoon characters inspired by many of the internet’s most popular memes. Mr. No is my favorite character, so I’ve launched this Kickstarter to produce a Santa-themed Mr. No plush toy in time for the holidays. Mr. No is 8” tall and made of quality materials that meet or exceed all health and safety guidelines. If you skip down to the production details you’ll understand why I’m starting Christmas so early this year. ” Rayla said on his Kickstarter page.

Meme’s are a crazy popular phenomena this year and by Christmas time they’ll be even more popular. This may take off, but Rayala insists that his heart is in tech startups, and he and co-founder Joe Dolson are working hard on the next project. In the meantime go sign up for a stuffed meme.

Worried about startup failure? Go read the Altsie report.

How To Deal With The “How Will You Acquire Users?” Question

Venture capital investors ask a lot of tough questions before they sign any checks. One of the hardest is when they start drilling down into your business model and ask “How will you acquire users?”

But in reality this is a difficult question, because even well-known companies like Dropbox might have been hard pressed to come up with a satisfactory answer if they were asked that particular question.

Common answers include such nebulous coveralls like ‘build up a community identity,’ ‘implement viral marketing,’ and ‘create incentive packages’. Maybe these will indeed be persuasive. But, many companies learn as they develop through real life challenges and don’t really have all the answers.

Here we take a look at a few of the particular issues involved in acquiring users which may be more persuasive in wooing VCs over to the cause than the usual stock responses.

Focus

VCs prefer hearing that you’re committed to focusing on a particular market sector rather than how you will target a much wider audience and then go viral. There’s never any guarantee you’ll ‘go viral,’ but narrow the target a little and you’ve got a better chance of hitting the bullseye.

Budget and resources are limiting factors for any startup. If you focus all your energies on one particular sector, you will almost certainly yield far better results because that target sector will see a superior value in your service.

Events that are sector specific are the norm, though there are exceptions to the rule such as targeting engaged couples and college students. With these, there are usually sector-targeted content platforms and/or distribution channels involved that make it easier to penetrate a small but ultimately profitable market, from which you can expand.

Scalability

If you can tell the VC that you have the scaling flexibility to go from a hundred to a hundred thousand subscribers and thereby transform into a sustainable business, this will be music to their ears. Promoting a product one-on-one is not scalability. If on the other hand, you’re able to say that you already have a partnership with Coles Group Ltd in place, this is real scalability built into your business plan, and they’ll be suitably impressed.

Get in early with validation

You need data to back you up. Look into several different types of acquisition strategy and decide which will suit your line of business best. For example, if you took out ads on Google and Facebook and found that SEO is more cost-effective than other methods, this sounds like you has done your homework. If you’ve worked out a conversion rate against costs to come up with a realistic ROI, that sounds even better.

All this is validated data, rather than just a bunch of assumptions tied together with a string of wishful thinking. When presented with such solid data investors can see how an injection of capital will help an early trend to scale up.

Author: Carlo Pandian worked at Adzuna, a tech start-up based in London. He is currently writing a tutorial on QuickBooks (accounting software for entrepreneurs), and has previously published for Techli, Killer Startups and Under30CEO. Connect with him on Twitter @carlopandian.

IndustryHuddle Gets Funding, Reaches 500 Users, & Throws A Party

One of my favorite things about covering startups “everywhere else” is that they’re really good at solving un-sexy problems. At the Southland Summit last month, Sarah Lacy said, “The Valley has done what the Valley is good at.” Which leaves a large field for innovation from everywhere else.

IndustryHuddle is doing just that. In June they announced a small funding round that would allow them to iterate their social trade network, adding features and improving the platform. Then, last week, they made another announcement via press release.

Cincinnati-based social trade network IndustryHuddle.com has reached a new milestone over a month before its first major overhaul. Century Fasteners & Machines Co., of Niles, IL, registered on July 12th, 2013 as the 500th company on the social trade network. As a result, they will receive a $500 advertising credit for use on the site or towards sponsorship of an industry huddle of their choosing.

The free network allows businesses to connect with suppliers and consumers within their industry. They currently offer 40 different industries, including bearings and power transmission, HVAC, carpet/tile/flooring, and janitorial supplies. Obviously, these aren’t typical Valley focal points.

Once a company signs up for the network, they can list themselves under any industry huddle they participate in. Then, they have access to sales leads, an online sales platform, and exclusive promotions offered within the huddles. IndustryHuddle also works with partners like Chevron/Texaco, Sprint, Staples, and Office Depot to offer member-only discounts.

The addition of the 500th member is a huge milestone for the company, especially since they still haven’t unveiled the latest improvements.

One thing IndustryHuddle has done right is those partnerships with big companies that offer discounts to members. Because small businesses have to watch every penny, this alone provided value, even before the network began to grow. Now, with each industry filling out, members have easy access to big and small players in their business, making it easy to both buy and sell products and services.

In the press release, Zachary Haines, President and CEO of IndustryHuddle said: With large companies like 3M on board as well as smaller operations like Century Fasteners, we’re proving that our services are accessible to all.

The company took a quick break to celebrate their 500th member with a pizza party. Then, they got back to work on the next iteration of their growing platform. IndustryHuddle 2.0 will be launched in late August and will feature individual profiles, new communication choices, and an overall better user experience.

Go congratulate IndustryHuddle on Twitter and check out IndustryHuddle.com.

Do You Want to Build a Startup — Or a Small Business?

A couple months ago, I officially left my rapidly growing, profitable small business to launch a tech startup with a huge vision and zero salaries. Why did I do this? For me, it came down to the huge differences between a small business and a startup.

First off, the biggest difference between these two company types is in their top objectives. Small businesses are driven by profitability and stable long-term value, while startups are focused on top-end revenue and growth potential. Steve Blank’s three-minute definition provides great insight.

Earlier this year, I also got the opportunity to meet Mark Cuban, Kevin Plank, and Scott Case, who asked me a classic question with a special motive: “What do you want out of your life in five years?” I knew how Cuban and Plank had made eight-figure companies in their twenties, so I said, “Thirty million dollars,” thinking it would impress them. Instead, Plank said, “That’s a terrible goal!”

That remains the best piece of business advice I have ever gotten. Instead of focusing on great products and huge customer bases, I was too focused on dollar amounts — a small-business mentality instead of a startup mentality. I spent the rest of the weekend working with Case on new business models and products, and left these meetings with a grand new business idea.

My startup journey led me to launch LabDoor. LabDoor provides report cards for your medicine cabinet. Products are graded based on safety, efficacy, and price. Behind the scenes, technical experts analyze top FDA, clinical and independent lab data that informs the product safety apps. Building this startup has been the perfect opportunity to continue my obsession with science, while greatly expanding the amount of people that will benefit from this research.

To be clear, there is nothing wrong with starting your entrepreneurial career with a small business. Building a solid financial base will help create a longer personal financial runway for future startup ventures. Also, establishing a successful small business can build credibility and networks through the business community that will be hugely valuable when launching a startup that requires outside angel and VC investments. But while you do that, be careful not to get too comfortable with a steady paycheck.

How do you decide which one is for you? First, ask yourself, what is my tolerance for risk? And what is my tolerance for failure? Because no matter where you are in your life, it is a great exercise to stop everything and visualize your absolute top-end potential. It’s the kind of brainstorming you did as a kid, when you imagined being the President or, even better, an astronaut.

Then, start by deciding the biggest problem in the world that you want to solve. Develop your ideal solution to this problem, and then invite your trusted friends and family to poke holes in it. Iterate until you’ve got an awesome idea. If you can build a great team around your awesome solution, now you can stretch one foot into the world of startups.

Finally, determine your top objective. Is your long-term goal to build a nest egg or make a dent in the universe?

What do you really want out of your life in five years?

Neil Thanedar is the founder and CEO of LabDoor, a mobile health startup providing consumer-focused product safety ratings. At 24, Neil is the visionary and scientific mind behind a company seeking to replace the FDA and Big Pharma as our top sources of safety information about pharmaceuticals, supplements, and cosmetics.

The Young Entrepreneur Council (YEC) is an invite-only nonprofit organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

Check out our interview with Neil Thanedar here.

The Anew School Gives American Boys Hope In Africa

Here at Nibletz, we cover mostly high-growth technology startups. Even with a lot of noise in the space, we ultimately believe these are the ventures that are shaping our world.

But, every so often we come across a different kind of venture that we just can’t help but write about. Last month I attended the Demo Day of the Memphis edition of the NewME PopUp Accelerator. I was blown away by the great ideas and the caliber of entrepreneurs in the room. One in particular is not starting a tech company. In fact, she’s going into education, a rocky field at best. But, I was so impressed by her and her venture, I couldn’t help but share it with Nibletz readers.

Alexandria Lee knows firsthand what it’s like to grow up struggling. The daughter of a single mom and a drug addict dad, her story could have been one of the thousands of tragedies happening in American schools every day. Except for that one teacher who challenged her to do more. Thanks to him–a transplant from Senegal–she switched to honors classes and surprised everyone by graduating not just from high school, but also from Spelman College and Harvard Law School.

Now, Nashville-based Lee has a new vision for education for African-American boys.

“9% of black males in the 8th grade can read at a proficient level,” she said in her NewME pitch. Well, obviously, that’s not acceptable.

Lee’s solution is to open a school in Ghana and transplant at-risk boys for a few years of out-of-their-element education. Besides honors-level classes, the boys will be paired with a local student to learn leadership and entrepreneurship. They will work together to devise community action plans that solve real problems in the local community. The school wants to teach African-American boys where their roots really are, not in the tragedy of slavery, but in the deserts of Africa.

“Our goal is to transform discarded youth into community leaders. Our students will come into the program underperforming. We will first catch them up, and then excel them past their classmates back home. But, more than just academic gap closure, our students will be trained in emotional competence, given the desire to serve others, and learn manhood lessons. At an early age they will become global citizens and return to their communities with broadened horizons, prepared to begin finding solutions to ills within their own communities,” Lee told me in an email.

The Anew School will receive charter school funding from the state of Tennessee, but they will also supplement with donations from private foundations. They already have some land in Ghana and will begin building soon.

Check out The Anew School on Facebook and Twitter.

Other great things happen in Memphis, like the biggest startup conference in the world for startups everywhere else.

Stopped.At Launches In Super-Super-Beta

As the Entrepreneur-In-Residence of the new Upstart Accelerator in Memphis, Mara Lewis has spent the last week telling women to just do it. Women have to fight perfectionism, and if they try to make a product perfect before it launches, it’ll never launch.

“You iterate. You put it out there. It can’t be pretty. If you wait until it’s perfect, you’ve waited too long.”

Lewis’s co-founders back in California were shocked when she took her own advice and made the announcement about their own product: Launch it. Put it live.

And that will forever be the story of stopped.at’s launch into the world. But, of course, it really isn’t the beginning. The beginning happened two years ago when Lewis and her team pivoted their old “Foursquare for the Web” site and began formulating stopped.at.

In the last two years, they have perfected an algorithm similar to Pandora. A user signs up for stopped.at, drags the bookmarklet to their browser, and goes about their business. As they use the web, they “check in” on each site via the bookmarklet. Over time, stopped.at’s algorithm will begin to read the traits of the websites a user visits. Then, it suggests new sites, apps, or services the user might be interested in.

Stopped.at has all the features we love about social sites. You can connect it with your Facebook or Twitter account and you can follow friends. There’s also a rewards system. For each task you do, you earn rewards, which you can then redeem for prizes.

They also have “folders,” similar to boards on Pinterest. Using the folders it’s easy to create collections of the websites, apps, and services you use every day. Then your friends can browse your folders and discover their next must-have app or website. This feature is the one stopped.at’s team is most interested in testing during beta. They want to know if and how people will use them and if they are a good value for the site.

Right now stopped.at is only available on the web. “One regret is,” Lewis admitted with a sigh, “at the time, I wish we had done mobile-first. But, we know it, and we recognize it, and it’s top of our priority list.” Since more than half of American adults use their smartphones to browse the Internet, stopped.at will probably see a lot of growth when they launch on mobile.

The team hopes to launch out of its “super-super-beta” at the end of August, and the goal is to have 50,000 monthly users by October.

Lewis has been at the entrepreneurial game for a long time. This is her third company, and this version of stopped.at has been in production for 2 years. Kyle ran into Lewis during SXSW this year, where she pitched in the Dolphin Tank.

Those of us in the tech world could find stopped.at to be the perfect engine to discovering the best apps and websites out there. Join the public beta and let the team know what you think.

Wisconsin Governor Signs Investment Capital Bill For Startups

Wisconsin startups just had another victory on Thursday as Governor Scott Walker signed an investment capital bill.

The bill, which drew bipartisan support in the state legislature, provides $25 million dollars to startup companies in Wisconsin. Unlike other states, though, this bill was specifically for tech startups vs biotechnology and life sciences. In most states it’s harder for general tech companies to draw this kind of support from the government.

In the case of the Wisconsin bill, startups in agricultural technology, information technology, engineered products, advanced manufacturing, medical devices, and imaging are all eligible for the new funding.

While biotechnology and life sciences companies can create jobs over a much longer period of time, Wisconsin is looking for companies that can create jobs quicker.

“The $25 million allocated for this program in the state budget will help grow private sector jobs by investing in start-up companies,” Walker said in a statement. “One hundred percent of the funds from this program will go to Wisconsin-based businesses, and there are a number of measures in place to ensure accountability and transparency for the hard-working taxpayers.”

Fox11online.com reports that the $25 million dollars in tax payer money will be matched with $50 million in private donations.

“I hope that once success is shown, it will lead to additional measures to increase the amount of capital for new businesses and more Wisconsin jobs,” Walker said in a statement.

Canadian Startup Thalmic Labs Has Quite Possibly The Coolest Wearable Tech Out There

Myo,Thalmic Labs, Canadian startup, startup interview

Wearable technology and “the internet of things” may be the hottest startup segments out there in 2013. There are sensors, gadgets, bracelets, bands, watches, and other technology that captures just about everything. There’s even wearable, sensor-based technology for dogs.

Most people have seen fitness monitors, sleep monitors, and smart watches, but from what I’ve seen (and I’ve seen a lot), Myo, the flagship product from Canadian startup Thalmic Labs, takes the cake.

Myo is a bracelet that has sensors built into it that allows you to gesture control just about anything using the motion in your hand. With Myo you can easily scroll through a presentation deck, navigate a website, or pinpoint a place on a map.

Then there’s the even cooler stuff. Myo can also help you control video games and even fly smartphone- or computer-based helicopters and airplanes.

When I first watched their demo video below I thought it looked kind of silly, but really it’s one of the awesomest things I’ve ever seen. Myo eliminates the need for so many different remote controls and controllers. It’s also intuitive and the gestures (from watching the video) are natural, the gestures you would be doing on a smartphone or tablet anyway.

Sure the Wii Remote, XBox Kinect, and even Roku’s latest remote control are all about motion, but they are also tied directly to their device. Myo makes your hand the motion controller, I know awesome right.

We got a chance to talk with the team behind Myo. Check out the interview right below their video.

What is your startup called?

Thalmic Labs

What does your company do?

Thalmic Labs is a rapidly growing company that is dedicated to the development of gesture control, wearable technology and human-computer interaction. Our flagship product, MYO, has already received 30,000 pre-orders, and continues to generate a massive amount of excitement about the future of wearable computing.

Who are the founders, and what are their backgrounds

Stephen Lake – Founder, CEO

Matthew Bailey – Founder

Aaron Grant – Founder

At the University of Waterloo, Stephen, Matthew and Aaron graduated with degrees in Mechatronics Engineering.

Stephen was named one of Canada’s Top 20 under 20 in 2007 and one of the Next 36 entrepreneurial leaders of Canada in 2011. Stephen graduated with an additional certificate in Entrepreneurship from the University of Toronto, and studied as a visiting scholar at the Swiss Federal Institute of Technology Zurich. He became an entrepreneur from a young age, attaching LED lights to radio-controlled trucks and selling them at age 13.

Matthew studied pattern recognition, which drove the development of the underlying machine learning magic behind Thalmic’s products. He studied as a visiting scholar at the Swiss Federal Institute of Technology Zurich.

Aaron has an extensive software engineering background, having spent time in Silicon Valley working for Zynga. His passion for software engineering has even led him to create his own embedded microprocessor operating system.

Where are you based?

Waterloo, Ontario

What problem do you solve?

How do we connect the real and the digital worlds as we move towards wearable and ubiquitous computing?

Why does it matter?

MYO provides a way for us to interact with and control computers and other digital devices directly using our hands. Fundamentally, Thalmic is attempting to close the gap between humans and technology. The applications are endless, including gaming and entertainment, industrial, healthcare, education, business, and general user applications.

What are some of the milestones your startup has already reached?

The video that we launched MYO with has millions of views on YouTube and gave us immediate reach when getting our product out there initially. More recently, our company announced the closing of a Series A funding round at $14.5 million – the largest round of funding that any post-Y Combinator company has received to date. This funding will be used to fuel continued growth, further product development of MYO, and develop future products and technologies from Thalmic Labs.

What are your next milestones?

The most important milestone for us is to get our final product into the hands of thousands of waiting customers. This includes taking our time going to production to ensure the quality of our product and finding the best partners to do this with. Another big milestone is to get early units and documentation to developers late this summer and see how they can help rethink human-computer interaction. Beyond that, we’re excited for the future of technology. For us, MYO is a first step down a long path in this direction.

Where can people find out more? Any social media links you want to share?

The best way to understand Thalmic Labs and MYO is by watching the video on our homepage (https://www.thalmic.com/myo/). As you explore, feel free to “get updates” and pre-order MYO at https://www.thalmic.com/myo/preorder/. You can follow Thalmic Labs on twitter at @Thalmic.

Back in October Kara Swisher said sensors were the big thing for this year, she was right.

BlueBridge Digital Founder Talks About One Year Journey From College To 15 Employees

Last year Santiago Jaramillo was a senior in college. From his dorm room, he created a business building apps for other businesses. What happened over the next year is a story much more common to Silicon Valley and New York than Indiana. Jaramillo took that app-building business and turned it into his startup: BlueBridge Digital, a company that does “apps as a service”.

BlueBridge Digital is an app development company that specializes in three verticals: travel and tourism, higher education, and religious institutions. Their clients include Gatlinburg, Tennessee, University of Arkansas, and several well known large churches.

One of the biggest things that sets BlueBridge Digital apart from other app development houses is their subscription model. They charge their clients a monthly fee rather than making them come out of pocket with one big payment, something that often times prevents companies in their verticals from going forward with their app projects.

By focusing on just three main verticals, making their service accessible to businesses, and offering superior customer service, Jaramillo’s startup is cash flow positive and employs 15 people, just a year out of college.

Jaramillo told Nibletz co-founder Nick Tippmann in an interview that one of the biggest keys to his success was focusing on sales and getting people to actually pay for his services. This made it easier to attract a great team of established co-founders, great employees, and more clients. With all that in mind, Jaramillo was able to bootstrap BlueBridge Digital to revenue.

Check out the video interview below and for more visit bluebridgeapps.com

37 signals founder Jason Fried talks about product design.

Jacksonville Startup Path.To Finds The Path.To Startup Failure, Shares Ways to Avoid It

“Failing gracefully.” That’s a topic that comes up a lot in the startup world. We are all too familiar with the failure rate of startups: depending on who you ask, 70-80% of startups fail. On Tuesday we found out that Jacksonville startup path.to will be shutting down on July 19th.

Almost a year ago we interviewed path.to’s CEO Darren Bounds after reporting the previous month that they had expanded their “e-harmony for jobs” startup to include Chicago, Boston, and NYC. For a while everything looked great for path.to. They were rewriting the boring old job search platform and making it more intuitive with algorithms and indepth profiles.

Not only that, but the team is incredible. We met most of them just a few months ago during Jacksonville’s OneSpark festival. A few of the Path.to team members were helping music discovery startup Aurora while others were helping social event tracking startup #eventhash. During the event, organizer Elton Rivas told us that the path.to team were very active in Jacksonville.

“Failing sucks – especially when it comes to your startup. It’s like being kicked hard in the shins right after being dumped, all while standing in the pouring rain with no cabs in sight, only to have a huge truck drive by and splash mud all over you,” path.to community manager Jill Felska wrote on the company’s blog.

What happens next for the team? Well naturally they’ll continue being innovators, entrepreneurs, and members of Jacksonville’s thriving statup scene. Specifically though, Fileska reports that many of the team will continue innovating in the hiring space and making it a happier space by working at Ignite, a job industry idea incubator also based in Jacksonville.

While the ride is officially over tomorrow, the path.to team shared these six valuable lessons they learned during the two years they were building path.to.

1) Don’t wait to solidify your monetization strategy.

“A ‘build it and they will come’ mentality has taken over the startup space. And yes, we were included in that camp. The problem is, it rarely works that way.

We started out with the strong belief that if we could build up a large, impressive user base, that the customers would follow. Unfortunately, we were wrong. We underestimated the amount of education that would be needed to sell our product – and then were very slow to give it the sales attention it really needed.

Monetization can’t be an afterthought when it comes to startups. Shiny products are great only if they’re solving a real problem that customers will pay for.” – Pete Cochrane, President

2) Technology alone isn’t the solution.

“When the product isn’t succeeding like you expect it to, working to make sure you are providing the core service to the customer is more important than continually adding features, optimizing site-speed, and conversion funnels. Perfecting the tech stuff is fun for some of us, but it is only worthwhile if it adds value to a service that people are finding useful.” – Charlie Cauthen, Technical Architect

3) Two-sided markets are a bitch.

“Building a two-sided market is hard. Really, really hard. If I had a do-over, I would start in just one or two key cities, then wouldn’t expand past them until we had built a strong community of both job seekers and businesses who saw value in our product. Becoming a go-to product or service in your launch city not only validates your idea, but also helps drive engagement in future cities.” – Jill Felska, Chief Community Officer

4) Build for the customers you already have.

“We spent a lot of our time trying to make Path.To better by adding new features, adjusting our pricing strategy and trying to make it available to as many people as possible. While important, it’s the existing customers that really matter. If you remember to focus and appreciate the users that you have, they’ll do the work of sending more people your way.” – Kristin Gattis, Path.To People Person

5) Team communication and trust is key.

“Communication is possibly your most important organizational asset. You can have the best team of engineers and designers in the world, but it means nothing if you can’t work together and solve problems. Poor communication drives down morale and can seed resentment that persists until the issue is resolved.

Learning to surface and resolve issues quickly was one of the most important lessons we learned throughout this process. While we could not identify and resolve every problem, creating an environment of open communication and feedback was crucial.

Just as you have processes to monitor the health of your product and servers, someone in your organization should also to pay attention to the the human aspect of the product.” – Joey Marchy, Project Manager

6) Test, test, test…and then learn to let go.

“The biggest thing I learned throughout the process is to test your product’s efficacy as often as possible. Constantly ask yourself whether you’re really solving someone’s problem at the core or if you’re just making current processes slightly better. Accepting that something isn’t working and changing course is more important than getting it right the first time.” – Dennis Eusebio, UX/UI Designer

Hindsight certainly is 20/20 isn’t it? The funny thing is, these lessons aren’t breaking news. They’ve all been written about before.

The problem is that it’s hard to absorb them and look critically at your business when you’re in the trenches. When things are getting done and moving along everyday.

If our team was to challenge you to just one thing, it would be this: take a step back and really look at what you’re building. What advice from mentors, articles, and your customers could impact your business for the better today? It may just save you the trouble of closing your doors someday down the road. We truly hope it does.

OneSpark was one of the biggest startup events we’ve ever seen, check out our coverage here.

When Sh!t Hits The Fan, There’s Indiana Startup Evacua

Bloomington, Indiana startup Evacua is a platform/marketplace for people when sh!t hits the fan. What kind of sh!t? How about evacuations.

Often times when an evacuation is necessary, nobody is prepared. That lack of preparation makes an evacuation take 10x as long as it would if more people were ready. Hurricanes, wildfires, and floods are just a few of the disasters that can displace you and your family. If you had a safety network in your back pocket ,you would breathe easier and know that anything dictating an evacuation would be more manageable.

Evacua is a network of verified travelers, companies, and transportation providers that can quickly pool resources together during an evacuation.

Evacua isn’t just about natural disasters and what you would think of as traditional “evacuations.” It’s an emergency travel safety net. If you were on a business trip and your wife went into labor or you had a death in the family, Evacua members would have access to last minute travel without the huge cost of paying commercially for it.

The startup accelerated at RunUp Labs, the travel industry accelerator based out of Bloomington, Indiana’s SproutBox. The idea is to quickly connect its members to be mobilized and ready travel companies and providers at a moment’s notice. At the same time, they are also working on the rideshare model for aircraft.

“Simultaneously, we are fixing the ride sharing model for aircrafts. By using a low cost to entry, we can appeal to a broader base of travelers. During emergencies, this base of travelers is more flexible with price, destination, and departure times, allowing for more likely matches of flights and passengers,” the company says on it’s AngelList profile.

Nibletz’ Nick Tippmann was in Indiana for the Innovation Showcase last week where he got to spend some time with Mike Beckwith the General Manager and co-founder of Evacua. Check out our video interview below and for more info visit evacua.com

Los Angeles Startup AroundWire Is The First Social Exchange

Let’s face it. We all know how sketchy Craigslist can be. Whether you’re getting scammed on the front end by someone who wants to charge your PayPal $500 more than your product is selling for, or you’ve got a seller who wants to meet you in a dark alley. While some may score some great deals using Craigslist, others aren’t so lucky. Which is why this Seattle startup created these risky ads.

Los Angeles-based entrepreneur Amira Fickewirth had a bad feeling about a camera purchase she had set up using Craigslist and thought that there had to be a better and safer way. That’s why she and her team created AroundWire, a startup they are calling a “social exchange.”

Alex Brown described it like this: “…a social network, a marketplace, and a payment system all rolled into one. On AroundWire you can ‘partner’ with people you trust and gain access to their “partners” to create a reliable community of people to buy and sell goods and services with. You can also choose to do business with the greater public AroundWire community and feel secure knowing that we have verified accounts, reputation metrics that mimic the way people consider reputations in real life, and excellent customer service and protection for all parties should anything go awry.”

AroundWire wants to bring things like trust, accountability, and conversation back into the online sales equation. They also want to establish a community in which people can go to the other community members over and over again as a source for new sales, referrals, and repeat business.

Sometimes, on Craigslist, you find that one seller that may have the same hobbies and interests as you and you strike up a relationship. That’s happened a few times with me over electronics, camera equipment, and bird supplies. I’ve dealt with the same few people time and time again on Craigslist so they finally started calling or emailing me directly, knowing I would probably buy what they are selling. I have a list of people I can go to when I burn through technology.

For most though, these are rare occurrences. AroundWire wants to create these collisions over and over again between trusted people who develop relationships using their site.

We had a chance to talk with the AroundWire team.

What does your company do?

AroundWire is the world’s first social exchange – a social network, a marketplace and a payment system all rolled into one. On AroundWire you can “partner” with people you trust and gain access to their “partners” to create a reliable community of people to buy and sell goods and services with. You can also choose to do business with the greater public AroundWire community and feel secure knowing that we have verified accounts, reputation metrics that mimic the way people consider reputations in real life, and excellent customer service and protection for all parties should anything go awry. Whether you’re buying vinyl records, looking for a reliable car mechanic, want a great referral for a graphic designer or are trying to launch your business from home, AroundWire can help.

How did the idea for the site come about?

The idea for the site came when our CEO/founder Amira Fickewirth went to go buy a camera off of someone on Craigslist and felt unsafe. She knew little to nothing about the person she was meeting up with and there was no real accountability if the gear was faulty or the person decided to try something unexpected. It dawned on her that there had to be a better way to buy and sell goods and services online – a place where people interacted on a real name basis and were held accountable for being honest in their transactions.

What problem do you solve?

Somewhere along the line, a gap has developed between the way people do business in the real world and the way they do business online – AroundWire’s mission is to change that, to bring the traditional values of business – trust, accountability, personal connections and earned merit – back to business online.

Why now?

E-commerce sites and social networks are facing a crisis of confidence, with fake profiles, phony reviews and ads sowing an environment of distrust. While other social commerce sites struggle with security and fraud, AroundWire aims to tackle those issues right from the get go. With no fake profiles, no annoying banner ads, and an ultra secure built-in payment system, AroundWire will set a new standard for online consumption that demands a real-world level of trust.

Upcoming milestone:

We will be launching in Beta in October!

Where can people find out more? Any social media links you want to share?

Sign up for a Beta invitation at our landing page: www.AroundWire.com

No really you need to see these hilarious videos that may hit close to home for some Craigslist users.

DC Startup yourClass A Market Place Offering Free Live Classes

Online education is broken. Or so says Jacob Ruytenbeek, CEO and co-founder of DC startup yourClass.

Online education has plenty of faults. For starters, although technology is vital to education, in most cases education is the last segment to benefit from changes in technology. Consider this: while there are a lot of startups tackling online education and online learning, most of them are doing it with video courses which are “so 2000s,” Ruytenbeek told us in an interview.

yourClass is connecting real teachers with real learners in a virtual classroom setting. This isn’t new, but what sets them apart is the fact that it’s free for the first 50 live students. The classes are given live and then archived for those that can’t participate during the live date. Students can purchase the archived classes, which is where the revenue comes into play.

The other thing that sets yourClass apart from similar startups is the social component. Student profiles highlight the students social networks where students can get to know each other and collaborate well beyond the live class.

Check out our discussion with Ruytenbeek below.

What is your startup called?

yourClass

What does your company do?

We are a marketplace for live online classes.

Who are the founders, and what are their backgrounds

Paul Flynn (Chief Technology Officer) brings his knowledge as an eBay engineer with experience in U/I and marketplace design.

Matt Stock (Chief Learning Officer) is a renowned photographer, educator, and TEDx Coconut Grove speaker. He’s a former University of Miami MD student who decided to follow his passion into photography and teaching rather than continuing medical school to become a doctor.

Jacob Ruytenbeek (Chief Executive Officer) is an attorney who started two previous micro-startups including PaperChace and YachtBlogs Network. He’s a 2009 graduate of the Pepperdine University’s Graziadio School of Business and Management.

Where are you based?

Reston, Virginia, just outside of Washington, D.C.

What’s the startup scene like where you are based?

The #DCTech scene is incredible and supportive. We’re surrounded by tech like the huge AOL campus which is about 10 minutes away and comScore, which is located about 2 minutes away. At the same time, we have access to the downtown DC tech scene with places like 1776, the DC Economic Partnership, and a host of other accelerators for startups. People are approachable, mellow, and looking to help each other out.

What problem do you solve?

Let’s face it: Education is broken. Institutions capture much of the value that teachers create in the classroom; the cost of education restricts access to those who need it most; present e-learning solutions are mediocre at best; and MOOC’s are just the internet’s version of overcrowded classrooms. On top of it all, the virtual classroom is stale and boring. Everyone hates them.

Why now?

Education is ripe for disruption. The problem is humongous and growing by the day. Competitors like MOOCs are not sustainable since they don’t fix many of the underlying systemic issues with online education like we do. We need to change it and we can’t wait – so the real question is why not now?

How it works (more detail)

We fix education by creating a marketplace for learning where anyone can take or teach a class on almost any topic. We do it by removing the institution and connecting the prime source of value, teachers, directly with students. Our live classes are 100% free, so that anyone, regardless of ability to pay, can learn on our yourClass. Live classes are capped at 50 people per session and are recorded. Students can purchase forever-access for a fee set by, and shared with, the teacher.

Our virtual classrooms also help form relationships between students with deep social media integration embedded right into the classroom. Learning from fellow students and developing lasting relationships with them has always been a critical element to a successful classroom and we make that possible. Seriously, the yourClass virtual classroom is as good, if not better than the traditional classroom.

Teachers earn at least a majority of the revenue from class sales and are therefore incentivized to develop high quality classes and they’re share depends on the rating of the class (teachers receive a higher percentage share of revenue for five-star rated classes than they do three-star rated classes) .

Features

At it’s core, yourClass is a virtual classroom that offers synchronous one-to-many and many-to-many live video. It has the standard virtual whiteboard, screensharing, notes, and raise-your-hand features that you’d expect to find in a virtual classroom, but it goes further. For instance, to help students build relationships with their classmates, student profiles incorporate information from social media profiles. When you click on a student’s profile, you’ll see information about who they are and how you know them, who your shared connections are, and what your shared interests are. It’s a wonderful way to create relationships in a virtual classroom.

What are some of the milestones your startup has already reached?

1. Passed first successful internal technology test (translation: our software works)

2. Announced our upcoming beta on 7/10/2013

3. Landed our first big partner (can’t say who yet)

4. Reached our first 100 signups within 24 hours of announcing the beta.

What are your next milestones?

1. 1,000 signups before beta opens.

2. 100 live classes at launch

3. Deliver 10,000 hours of live online learning

Where can people find out more? Any social media links you want to share?

Come by yourclass.net and add your name to our beta invite list. Users can also follow us on Twitter and Facebook (links below) to get free swag like t-shirts, stickers, sneak-peeks, and early access invites.

Twitter: @yourclassedu

Facebook.com/yourclassedu

This Florida educational startup won 25,000 at the startup conference below.