11 Startups Outside Silicon Valley to Watch in 2014

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Year-end lists were all over the Internet in the last week. Hot companies, trends, IPOs, cat videos…if it was put on the Internet this year, there was a list for it.

Except, we couldn’t find one specifically focused on startups outside of Silicon Valley. Well, that’s obviously a problem, because while the Valley has a lot going on, there are plenty of great startups kicking ass everywhere else.

So, we took at look at our Mattermark account* to find our favorite startups outside of Silicon Valley. Founded by Danielle and Kevin Morrill and Andy Sparks, Mattermark is a startup itself, but they are quickly becoming a trusted source of information for investors looking for deals.

With 5 content companies on the list, it looks like 2014 will be the year that content really becomes king. Two companies in the top 11 are specifically focused on helping brands market on Pinterest, and the buzz they’re generating may indicate there’s a big market for their services.

A word about our methodolgy: we specifically focused on startups outside Silicon Valley (obviously). We also focused primarily companies in the Seed and Series A stages of funding.

 

upworthy2

 1. Upworthy is king of the buzz.

Upworthy gets so much attention, it’s almost hard to believe they’re not even 2 years old yet. The headline-focused content site focuses on “things that matter,” which means putting linkbait-y headlines on articles of importance so they’ll be shared more. Love ’em or hate ’em, Upworthy is probably the most buzzed-about early stage startup outside of Silicon Valley.

 

teespring2. Teespring crowdfunds custom apparel.

Boston-based Teespring provides a platform to create and sell custom t-shirts without the upfront costs. It works like any other crowdfunding platform: put your t-shirt design up, determine your sales goal, and customers are only charged if the shirts are actually printed.

 

 

tailwind33.Tailwind leads the way in Pinterest marketing.

We were super pumped to see our content partner Tailwind make an appearance in our Mattermark search. The New York and Oklahoma based company helps brands and marketers use Pinterest to the fullest. Make sure to check out their posts on social media marketing here at Nibletz and more on their blog.

 

 

prefundia4. Prefundia lets you see Kickstarter projects before they’re kickstarted.

One of the most common pieces of crowdfunding advice is to already know who you’re first funders will be. Essentially, you need to create buzz before the project even goes live. Prefundia helps build that buzz by letting creators post their projects and get feedback before they launch.

 

 

 twenty205. Twenty20.com brings your Instagram pictures off your phone and into real life.

Formerly Instacanvas, Santa Monica-based Twenty20.com allows mobile photographers to sell their pictures in online galleries. The 2-year-old company is already well-known among Instagram photographers, and the recent rebranding seeks to make the whole experience even better.

 

 

springme6. Spring.me proves that we’re not through with new social networks.

LA-based Spring.me is a social community based on interests. The unique thing about Spring.me is that, unlike other social networks, they’ve stated right from the beginning that sponsors and advertisers will also be incorporated into the community. The year old company isn’t Snapchat, but number 6 on our list ain’t too shabby.

 

written7. Written.com helps engage your customers.

Austin startup Written helps content marketers and bloggers to build audience and authority. They facilitate content licensing, syndication, and sponsored content. In a world where every startup needs to have content, it’s no wonder Written is getting a lot of buzz.

 

 

jobzella8. Jobzella is a career mega mall.

Cairo-based Jobzella puts all your job-seeking needs into one place, from skills classes to resume writing to actually seeking a job. They are still in beta and only recently closed their seed round, but it could be a big year for Jobzella.

 

 

rapidminer9. RapidMiner gives customers an edge with data mining.

Boston startup RapidMiner provides software and services that allows businesses to optimize their data through predictive analytics, data mining, and text mining. The company is a little older than the others on the list, but their recent $5 million Series A hints that they are working on some bigger stuff.

 

 

cointerra10. COINTERRA proves Bitcoin is going mainstream.

Austin-based COINTERRA is a “semiconductor engineering company.” They are designing cryptocurrency processors and systems on the bet that Bitcoin is going big. Considering the buzz around Bitcoin, it’s not surprising to see a Bitcoin company in the top 10 of our list.

 

 

ahalogy11. Ahalogy is cracking the Pinterest code for big brands.

Cincinnati-based Ahalogy helps companies market content, specifically on Pinterest. Their algorithms and data tools help “crack the code” to visual content marketing, starting with Pinterest.

 

 

*Mattermark uses a propietary algorithm to determine individual scores for each company. While these companies ranked high in the Mattermark app, this list was also subject to our editorial decisions and is not a pure reflection of Mattermark’s rankings.

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Paul Graham, The Information, And The Era of New Media

Paul Graham

Well, there’s nothing like a little controversy to wrap up a year.

Unless you’ve been living under a rock, you probably know all about the recent shitstorm over Paul Graham and his interview with The Information. For those of you blissfully under your rock, here’s the rundown:

  • First, The Information posted the edited transcript of an interview staff writer Eric Newcomer did with Graham.
  • Then, Valleywag published a story full of indignation and accusations about Graham being sexist.
  • Twitter exploded with the rage of angry, tweeting feminists.
  • There were a few posts over the weekend dissecting the whole issue. Here’s ours, and here’s one we love from Fred Wilson.
  • Today, first Graham then Lessin wrote their own responses to the controversy and to each other.

This whole issue has been centered on whether or not tech is a sexist industry. Age-ism and sexism have been debated again and again, which is awesome. Hopefully the dialogue will actually get us somewhere.

Another focal point of the story is the state of modern journalism. Portions of both Graham’s and Lessin’s posts address this issue and provide the perfect example of the era of new media.

Graham’s Post

Graham says that the context for the interview was to get comments on a feature about his wife, Jessica Livingston. In his view, this misunderstanding led him to respond differently. “In a conversation you stop explaining as soon as the other person’s facial expression shows they understand. In an interview…you don’t have that real-time feedback, so  you have to explain everything completely,” he wrote.

Two statements, according to Graham, were especially affected by the interview/conversation distinction. First, he takes issue with the fact that The Information edited out the word “these” from this commentt:

We can’t make “these” women look at the world through hacker eyes and start Facebook because they haven’t been hacking for the past 10 years.

Graham says that he meant a subset of women–specifically women who aren’t already programmers. That sentence was in response to a question about whether YC should train its women founders to be hackers.

“We” doesn’t refer to society; it refers to Y Combinator. And the women I’m talking about are not women in general, but would-be founders who are not hackers.

I didn’t say women can’t be taught to be hackers. I said YC can’t do it in 3 months.

The second comment, and the one that Graham says bothers him the most, is the idea that programmers have to start young or they won’t be successful. He explains it like this:

I was explaining the distinction between a CS major and a hacker, but taken in isolation it sounds like I’m saying you can’t be good at programming unless you start as a kid. I don’t think that In fact, I err on the side of late binding for everything, including metiers. What I was talking about here is the idea that to do something well, you have to be interested in it for its own sake, not just because you had to pick something as a major.

Lessin’s Post

After Graham posted his view, The Information editor-in-chief Jessica Lessin responded on her personal blog. The Information is a new subscription publication that is seeking to reach tech professionals. It’s only a few weeks old, but Lessin spent 8 years covering tech and Silicon Valley for the Wall Street Journal, so she’s no newbie.

The upshot of Lessin’s rebuttal is that they did in fact originally interview Graham for a feature on his wife. However, the interview ended up covering so many topics that they later decided to publish the whole thing on its own. According to Lessin, they got permission from both Graham and his PR person and provided them with a transcript, which they ok’d.

She defended The Information’s policy like this:

On the record discussions with journalists are exactly that: on the record, meaning the material may be published. It is very common to use parts of older interviews in related stories, sidebars or even stories in the future…The Information will always go a step further and follow up and let you know when we plan to use the on-the-record comments.

The Era of New Media

“On-the-record” means “on-the-record,” and it always has. The practice of using quotes in other stories–and even out of context, intentionally or not–is as old as journalism.

The problem, of course, is that journalism has changed dramatically. In the age of Twitter, any one sentence can be pulled out of a greater conversation, skewed a little, and then find its way around the world. And, just like ugly rumors in high school, the truth rarely proves so viral.

Graham found that out with his whole women hacker thing. He felt the sentence was taken out of context and the meaning completely changed by the exclusion of “these.” Whether it makes that much of a difference or not, Graham received a lot of backlash for an opinion he doesn’t hold.

No one has really found an answer to this yet, and, because this new era also thrives on pageviews, plenty of  publications don’t really care about the problem.

As for Nibletz, there are a few things sources can always expect from us:

  1. If you tell us “off-the-record,” you will never see your comments in the pages of our site.
  2. When we plan to publish a story that spins off the reason for an original interview, we’ll let you know.
  3. If we make a mistake or misquote, we will update the story with a correction and a note pointing out the mistake.

Ultimately, we strive to be the voice of startups everywhere else. As humans, we’ll make mistakes, but we’ll always attempt to report with integrity and honesty.

Paul Graham learned, again, that nothing we say is safe, even when honest journalists work hard to get quotes right. Social media and the pageview game have changed the industry too much.

Needless to say, 2014 should be an interesting year.

ThinkVine Proves Software Is Eating the World

ThinkVine

Earlier this month, Cincinnati-based ThinkVine announced the release of their DIY marketing mix optimization platform.

If you’re like me and didn’t know what marketing mix optimization was, Wikipedia defines it like this:

Marketing mix modeling (MMM) is a term of art for the use of statistical analysis such as multivariateregressions on sales and marketing time series data to estimate the impact of various marketing tactics (marketing mix) on sales and then forecast the impact of future sets of tactics. It is often used to optimize advertising mix and promotional tactics with respect to sales revenue or profit.

So, basically, marketing professionals can plug certain factors into a simulated system and predict what will produce the best results. Before ThinkVine’s release, that usually meant expensive consultants and time-consuming simulations. With the ThinkVine software, companies can do a lot of the work themselves.

“Marketing planning and optimization are undergoing a transformation as brands turn to automation and real-time data to become more agile,” ThinkVine CEO Mark Battaglia said in a statement. “Old-fashioned econometric models can’t keep up with consumers in the age of social and mobile. With this software update, ThinkVine gives marketers the information they need to respond immediately to ever-changing markets.”

Subscription to the software includes lots of customer support from the ThinkVine team, but if your company has a full time data scientist just hanging around, the new updates allow for the DIY option, too.

ThinkVine’s software is the kind of unsexy B2B product that startups outside of Silicon Valley are so good at. Steady businesses meeting needs may not get the press attention of flashy consumer-facing Internet companies, but that’s not stopping them from making money. The software doesn’t meet the needs of the average consumer, but ThinkVine’s customers–including PepsiCo, MillerCoors, Sara Lee, The Hershey Company, Coca-Cola, Pfizer, Georgia-Pacific, and Valvoline–find that kind of data and predictive ability invaluable.

Companies like ThinkVine are the playing out of Marc Andreesen’s prophetic quote about software eating the world. With their experience handling real world problems, startups outside of Silicon Valley are poised to lead that charge.

 

Paul Graham & Sexism: Just One More Distraction From Real Work

EEHeadline

Paul Graham sexist

Last night I came across a flurry of furious women tweeting about Valleywag’s article on Paul Graham: Paul Graham Says Women “Haven’t Been Hacking For The Past 10 Years.” The article takes apart a recent interview of Graham done by The Information.

While I fully get the the “hell hath no fury like a woman scorned” thing, I just have to say there’s really not much here to be pissed about.

13-year-old girls are scary

The first thing Valleywag writer Nitasha Tiku takes issue with is this quote:

If someone was going to be really good at programming they would have found it on their own. Then if you go look at the bios of successful founders this is invariably the case, they were all hacking on computers at age 13. What that means is the problem is 10 years upstream of us. If we really wanted to fix this problem, what we would have to do is not encourage women to start startups now.

It’s already too late. What we should be doing is somehow changing the middle school computer science curriculum or something like that. God knows what you would do to get 13 year old girls interested in computers. I would have to stop and think about that.

Well, frankly, isn’t that what we’re always screaming about–more STEM education in schools? Never mind that most students won’t be interested in STEM, so we’re just piling on more boring subjects for already bored teenagers to ignore. (Buy me a drink sometime, and I’ll give you my full rant on education.)

Graham was just stating the same thing plenty of other people have: if we want to increase the number of women in tech, we should probably focus on the next generation.

As for the the “God knows what you would do to get a 13 year old girls interested in computers” comment, well, God probably does know. Look, it’s silly to get angry at the fact that a 49 year old guy doesn’t understand 13 year old girls. I don’t understand teenage girls, and it wasn’t that long ago that I was one.

Seriously, for the most part, getting teenage girls interested in anything isn’t easy. Are there exceptions, even in computer science? Yes, thank goodness, and those are the girls we need to be encouraging every day. Not the ones we force to sit in computer classes they hate.

Age-ism is the bigger issue here.

Graham pointed out that most great hackers have been doing it for 10 years or more. Again, that’s just true, if we assume the whole 10,000 hours thing. There’s no point in getting mad about it.

The problem with Graham’s logic isn’t that he assumes there aren’t women hackers who have been doing it for 10 years. It’s that he assumes 23 is the prime age to start up. Yes, the biggest outlier success stories of our generation are people who started companies in their early 20s, but they’re just that–outliers.

The average age for entrepreneurs in high growth industries is actually 40. So, theoretically, a woman–or anyone else–who started programming at 21 could get in her/his 10 years and still have 9 years to go before they hit the average entrepreneurship age. That’s great news for those of us who didn’t have the wisdom during puberty (ha!) to choose our career path.

Even so, I’m not eviscerating Graham for this assumption, and here’s why:

There are better things to do.

Is Paul Graham sexist, age-ist, or racist? Probably not, but it sure makes for great media fodder when he says something that can be twisted to sound that way.

Graham didn’t say women can’t be hackers, but if he had, he would be wrong. So what? If you’re a founder and you quit because you think Paul Graham says your gender/age/nationality excludes you, then you frankly wouldn’t have succeeded anyway.

In the eternal wisdom of one of my mentors, “Founders gotta be foundin’.”

In other words, we all have businesses to start. It’s far more productive (and profitable) for us to actually start those businesses than to worry about what some tech gossip blog says about one of the most successful investors in the country. We each have enough obstacles to overcome that it’s just stupid to continue to invent new ones that won’t actually affect our daily business.

If Graham looks you in the eye and tells you your business sucks, you should probably listen. If the blogosphere tells you  he thinks women don’t hack, it’s probably safe to shrug your shoulders and get back to work.

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Chicago Startup Retrofit Raises A Series B To Make Us Healthier

retrofit_vrt_logo

There are quite a few fitness startups cropping up.

Apps like RunKeeper and MyFitnessPal monitor your exercise or diet. Sites like Daily Burn offer subscription access to fitness classes. And, of course, there’s wearable tech. Fitbit, Fuelband, and Atlas are just a few examples of the tech you can wear to monitor activity levels.

Chicago-based Retrofit aims to take weight loss to the corporate level, offering employees of large companies like Google and Salesforce.com discounted rates to try the program. Retrofit incorporates some of the startups mentioned above, specifically Fitbit, as well as one-on-one coaching sessions with a dietitian, exercise physiologist, and behavior coach.

There are plenty of weight loss programs that focus on corporate clients. Weight Watchers and Jenny Craig both have corporate arms and years of brand recognition. So, what makes Retrofit any different?

According to the Retrofit team: results.

In their first 12 month “cohort,” more than 90% of participants lost significant weight. The average weight loss was almost 20 pounds, which equals a 9% of overall body weight.

On the heels of that success, Retrofit announced a $5 million Series B on Friday. The round is led by Cambia Health Solutions, but includes participation from previous investor Draper Fisher Jurvetson. This announcement brings Retrofit’s total funds raised to $15 million.

“Retrofit is thrilled to announce additional venture funding from Cambia Health Solutions and DFJ,” Retrofit CEO Jeff Hyman said in a statement. “These two companies prioritize investments based on creating value through the innovative use of technology.”

It’s true that tech and wellness are seeing some interesting mergers these days. Data mania is growing, and everyone wants to be able to measure success. I find Retrofit particularly interesting because it merges that data (through Fitbit) with real human interaction. The digital coaching sessions can help make sense of the data and create actionable plans for improvement. By putting the program in a corporate environment, participants might also have the built-in support system of colleagues going through the same experience.

However, like any fitness program, there are some other things to consider.

For one thing, most of the participants were male. Most weight loss programs are marketed to and used by women, so this is a huge win for Retrofit. It also skews the results a little bit, because men lose weight faster than women.

Second, the true success of weight loss doesn’t come at the end of the program. It comes a year or two later, when participants are still at their goal weight. Let’s face it. For most people, the actual losing weight isn’t very hard, especially if you have the right program, support, and motivation all aligned. The real challenge is keeping the weight off so you’re not in a yo-yo of weight loss and gain.

To be fair, most of Retrofit’s clients lost the majority of the weight in the first 6 months and spent the next 6 months maintaining and losing a little more. The year-long program (as opposed to a few months) could carry huge benefits on the road to weight maintenance.

With a successful trial run behind them, and an infusion of cash, Retrofit has plenty of time to continue to improve it’s product. While the company is targeting corporate clients, you don’t have to work for a big company to utilize the service. Check out Retrofit here for more info.

News Corp Buys Social News Agency Storyful For $25 Million

News Corp acquires Storyful

Stop me if you’ve heard this one:

An American company, an Irish company, and a British billionaire walk into a bar…

We all know what happens next, right?

On Friday, Rupert Murdoch’s New Corp announced the acquisition of Dublin startup Storyful, a social news agency that collects real time content from users and figures out what’s real and verifiable. Then, they buy and license that content to news agencies, providing them with user generated content they can actually trust. (Warning, if you click through to the Storyful website, take some Dramamine first. Trust me.)

We’ve all seen–and complained about–news reporting during big crises. During the Boston Marathon bombing, CNN wrongfully reported an arrest hours before one was really made, a move that could have endangered citizens of Boston. Last year, when tragedy hit Sandy Hook Elementary School, news organizations misidentified the shooter, accusing the wrong brother. And that’s just the tip of the proverbial iceberg.

These kinds of mistakes are common in 24/7 news media because everyone is trying to be first, and that can cause carelessness.

Storyful founder and CEO Mark Little see the problem in a different way, though. Sure, there’s a lot of social media noise around the news, but that actually gives journalism a new layer of reality.

“I watched the Arab Spring unfold on YouTube and saw an authenticity I had rarely seen on TV news,” Little writes on the Storyful website. He goes on to say, “Storyful is dedicated to helping news and communications professionals everywhere use social media to make their newsgathering, reporting and storytelling shine.”

And now they’ll be doing that from under the News Corp umbrella.

The plan is for Storyful to continue to run as a separate business unit, operating from its home in Dublin. The company will continue to license content to its current clients, including News Corp competitors like the BBC and ABC News.

Robert Thomson, Chief Executive at News Corp, said this in a statement:

“Storyful has become the village square of valuable video, using journalistic sensibility, integrity and creativity to find, authenticate and commercialise user-generated content. Through this acquisition, we can extend the village square beyond borders, languages and platforms.”

The acquisition will also allow Storyful to expand its products and services.

“We will be working to productise the core discovery technology that powers Storyful,” Little told me in an email. “We want to build the tools that power all social newsrooms. We are also focusing in 2014 on brand newsrooms, developing content solutions for the marketing, advertising and PR industries.”

Now, it’s no secret that Rupert Murdoch and News Corp aren’t always very popular. A simple Google search will show you that. In particular, many feel that News Corp cares more about getting a story out than making sure they report the truth, which could stand in contrast to Storyful’s efforts to verify everything.

As I researched, I noticed some pretty disdainful comments on the Storyful blog about the acquisition and asked Little about them. He (digitally) shrugged it off.

“I’m really happy with the reaction to our news, which has been overwhelmingly positive. I’ve seen the generalisations about News Corp that don’t correspond with the reality I’ve come to know. Again and again, every News Corp executive I’ve met stresses the importance of the verification work we do. Nothing changes on that front.”

Merry Christmas: Jack Dorsey Hands 10% Back To Square

Jack Dorsey gives backThis morning Fortune reported that Square CEO Jack Dorsey is returning 10% of his shares to the company. Dorsey’s share of Square is 30% and the portion he is returning equals about 3% of total equity.

It’s pretty unusual for a founder to hand equity back to the company. After all, they are the ones who took the early risk, and most of us can agree they earn the rewards a successful company brings.

Instead the portion Dorsey is returning will open up shares for potential hires and acquisitions, without the dilution that normally comes with those things. Dorsey told Fortune that he hopes to encourage employees to take risks.

One of the principles we hold fundamental here is that an idea that can change the course of the company can come from anywhere in the company. I hope we are building an organization that is not dependent on one person or a group of people who were here in the early days.

Okay, let’s be honest. Thanks to his role at Twitter, Dorsey is already a billionaire. And, his 27% stake in Square still equals around $877 million. He’s been in the realm of FU money for awhile now.

Which is kind of the point. Dorsey is running a very successful company, and there are on-again, off-again rumors of a 2014 IPO. People are willing to come work at Square, and other shareholders understand that dilution is part of the equation. There’s no expectation for Dorsey to give back equity.

Still, at the Square holiday party, Dorsey announced that he’s returning a large number of shares back to the company. The move signals that he cares more about the company than his own (admittedly, already considerable) wealth. It’s a brilliant way to enhance company culture and create a large number of very loyal employees. Who wouldn’t follow a guy like that?

Fortune suggests that some will see it as PR to cover Dorsey’s less-than-stellar showing in the Nick Bilton book Hatching Twitter. The truth that such a move would help his personal image would never have escaped an entrepreneur as savvy as Dorsey, but he insisted to Fortune that it wasn’t the driving force behind his decision.

The less than flattering press is about a time at another company, and I can’t let that define this company and I can’t let that define my future.

Honestly, though, who cares what the underlying motivations are? Dorsey’s move will help his employees, both current and future, and it won’t really hurt him any. In that situation, it just seems like a win-win if he also garners some goodwill he may have lost.

Merry Christmas, indeed.

Care.com Slips In S-1 Just In Time For Christmas

Care.com IPO

Waltham, MA-based Care.com filed its public S-1 last week, setting the 7-year-old company up to start selling shares in 2014. Following Twitter’s lead, the company will list on the New York Stock Exchange. They are looking to raise $80 million, and will be underwritten by Morgan Stanley, BofA/Merrill Lynch, and JPMorgan, among others.

For those of you without children, Care.com is a platform that connects families with potential babysitters or nannies. In the last few years, they have expanded care offerings to pet care, elderly care, and general housekeeping tasks.

There have been plenty of rumors that Care.com would file for IPO, and in November the company availed itself of new JOBS Act rules that allowed it to file confidentially. The benefit of this move is that they were able to negotiate with the SEC before opening its financials up to everyone.

And, to be honest, there’s some scrutiny to be done. The company posted $59 million in revenue in the first 9 months of this year, with a $24.7 million net loss. According to the filing, risks in the stock include a “history of cumulative losses,” the expectation of more operating losses, and an increase risk because the industry itself is evolving.

Oh, but what the hell, the tech IPO market is frothing up, so Care.com might as well jump in.

2013 ended up being a big year for tech IPOs, led of course by Twitter. By all accounts, 2014 is shaping up to be another banner year.

What’s awesome about the Care.com story, though, is that it is another perfect “everywhere else” startup story. A platform that connect sitters and families would never have been conceived out in the Valley. CEO Sheila Lirio Marcelo (yes, she’s a woman) is a Harvard Business School graduate and former EIR at Matrix Partners, which also has offices in Waltham.

The company may be operating at a loss now, but we all know that’s not uncommon for tech companies. There’s huge market potential, and so far Care.com is the most recognizable brand filling that market.

According to Crunchbase, the company has already raised $109 million in 5 rounds. An offering price and the company’s new NYSE symbol have yet to be announced.

How Tennessee Startups Are Killing It

Let’s make one thing clear. I am a Mississippi girl, born and bred. (Back home, we call it Miss’ippi, y’all.)

Still, I’ve lived in Tennessee for almost 10 years now, and I have to say, I’m pretty proud of my adopted home state. We have amazing organizations like Launch TN and accelerators in each major city working on growing the entrepreneurial ecosystem here.

In the last week, startups and startup ecosystems in Tennessee made big strides toward putting our state on the map.

Populr.me

Populr.me

The Nashville company traveled to the Valley earlier this fall to join 500 Startups Batch 007. Late last week, they were named 3rd in the class by Mattermark. The analytics company monitors growth across a variety of web metrics, and their data shows Populr.me is building some momentum going into Demo Day.

The startup provides easy one-pagers for business and sales. The templates are fully customizable with your brand, and they’re easy enough for anyone to use, even if you aren’t a developer or designer. They’ve had a big year, including the hiring of music industry veteran Heather McBee.

quickcue

Quickcue

Then, Chattanooga-based Quickcue announced their acquisition by OpenTable for $11.5 million. Quickcue provided restaurants an iPad app to manage wait lists. It was founded at a Chattanooga 48 Hour Launch event in 2011.

The Quickcue team will stay in Chattanooga, and its current customers will continue to be serviced. The acquisition marks the first exit for a Chattanooga tech company, a mileston any ecosystem can be proud of.

startcologo

Start Co

Finally, Memphis venture development organization Start Co announced its acceptance into the Global Accelerator Network. Start Co offers several resources for Memphis entrepreneurs, such as free coworking space and weekly classes with local mentors.

The organization also runs 3 accelerators: Seed Hatchery, Upstart, and the new logistics program Sparkgap. The application period is now open to all three programs, which will begin in May.

Because startup ecosystems aren’t as dense in some states as in the Valley, it’s all to easy to overlook the real momentum that different regions are seeing. Tennessee has even more going on, but these 3 events especially show traction in the Volunteer State. Congrats to all of the companies, and in the words of Start Co CEO Eric Mathews, “Never stop starting.”

Oh, by the way, you know what else is happening in Tennessee in 2014, right? Stay tuned for announcements on the version 2.0 of the Everywhere Else Conference!

14 Hot Gifts For Your Co-founder

Gift

We don’t demand much in the startup world. Pizza. Coffee. $1 billion exit. Really, we’re very easy to please.

But come Christmas you might want to find a little something special for your ever-present pain-in-the-ass. Er, co-founder. I mean, you’ve put them through a lot in the last year. Late night meltdowns, last minute product changes, schizophrenic phone calls that are both wildly jubilant and overwhelmingly depressed. (I know, y’all are feeling a little sorry for Nick right now, aren’t ya?)

Anyway, here are a few things to consider when picking a gift for the people who got you here:

  1. Is it cheap? The exception, of course, is if you just closed a huge funding round. Then it’s time to pony up, cheapskate.
  2. Is it personal? You know these people as well as–or better than?–their spouses do. Generic gifts won’t cut it.
  3. Is it funny? A few laughs will always lighten the mood, and funny gifts will keep giving throughout the year.

Okay, with those guidelines in mind, here are our 12 gift ideas for your co-founders:

1. Coupons–Real, actual coupons or the homemade “good for a bottle of Scotch when we hit it big” variety. Cheap, and you can make them as personal or funny as you like!

2. Startup t-shirts from weBRANDMy personal favorite is here. They have lots of pithy sayings about startup life that will have you all nodding your heads.

WeBrand StartupLife

3. Access to VoozaYeah, this is totally free, but remove the hassle by putting in your co-founder’s email address for them. They’ll thank you, I promise.

4. Everywhere Else Memphis tickets–Sign up for our newsletter to get first dibs on discounted tickets. It’ll be the best thing you do for your startup in 2014.

5. A flask–These vary in price, but they’re easily personalized and made funny. And, what better accessory for spring break SXSW?

6. A good bottle of bourbon–For that flask, y’all. Alternately, you can just have a company party and finish off the bourbon. That’ll make some memories.

7. iTunes gift cards–While gift cards may not seem personal, they can often be the best gifts. If you have some spare cash, throw in a new pair of ear buds so you don’t have to listen to their crappy music anymore.

8. A new whiteboard–This one’s obvious, right?

9. Equity

10. Or a paycheck might be nice.

11. A surprise meeting with Fred Wilson–You’ll be the favorite co-founder for all eternity.

12. Forget your co-founder and give a lavish gift to their significant other. Let’s face it. You kinda owe them, don’t you?

13. Your favorite startup audiobook they’ve been refusing to listen to. It probably won’t come off as passive-aggressive…

14. Therapy–So, this ain’t cheap, but let’s face it. It’s one of those gifts they really need and won’t get for themselves.

The actual gift doesn’t really matter, though. The most important thing this time of year is to let your co-founders know how awesome you think they are and how you couldn’t do this without them. That way, hopefully, they’ll stick around next year, too!

While y’all are at it, can someone please let Nick know he can’t go wrong with jewelry or bourbon? Thanks!

AIRTAME Blows Past Crowdfunding Goal To Create Wireless HDMI

Airtame dongle

Recently, I a friend of mine was crowdfunding his next album on Kickstarter. The page debuted, and we all watched anxiously for a month as the funds trickled in. He was always relaxed and calm about it, but his wife would quietly tell me, “I’m so worried!”

The final day of the campaign, Seth still lacked almost half his goal. My husband and I were traveling at the time, but I kept the campaign site pulled up on my phone and hit refresh somewhat obsessively. We were out having drinks with friends when I interrupted the conversation, wildly bouncing in my seat and waving my phone in my husband’s face.

“They did it!!” I yelled, right there in the lobby of the fanciest hotel in town. “They reached their goal!!”

(Don’t worry. I ignored the stares.)

My friend’s story isn’t uncommon. Most crowdfunding campaigns fail, and I’ve personally witnessed several succeed, but come right down to the wire.

That’s not the story for these guys.

The Copenhagen-based startup is making a wireless HDMI dongle that will stream content from your computer to your TV. With 29 days left in their Indiegogo campaign, they’ve already almost doubled their goal.

AIRTAME looks a lot like Chromecast. Like the Google product, it plugs into the TV and uses Wifi to stream content. Chromecast can pull content from smartphones and tablets, but AIRTAME doesn’t have that capability. Yet, anyway.

However, AIRTAME does allow for wireless connections to projectors and to other PCs. Use cases for this include the ability to see a professor’s presentation right on your computer while you take notes or the ability to share presentations across screens during a meeting.

“We believe that everyone should be able to connect to the TV in the living room or the projector in the conference room–wirelessly,” co-founder Brian Kyed said in a statement announcing the Indiegogo campaign. “Therefore AIRTAME works with Mac, Windows, and Linux–so no one is left to use screen cables anymore.”

Considering the massive amount of support AIRTAME has received, it’s a safe bet there’s some demand for their product. Of course, reaching your goal does not a successful campaign make. Many hardware companies hit snags when it comes time to deliver, and we have yet to see if AIRTAME will fall in that camp.

There’s also the whole competing with Google and Apple thing. Not impossible, but very, very hard. My favorite in the TV streaming race is Apple TV because of the licensing deals they are working out with companies like Disney and ESPN. I also kind of love that it’s not dependent on my computer.

AIRTAME could really stand out, though, if they let the TV streaming thing go and focus on the business, classroom, and presentation uses of the product. None of the competition works quite the same way.

The Indiegogo campaign is still live, and last time I checked they still had a few openings in the beta test. That particular perk sold out so fast, they decided to open up another round of it.

Fred Wilson Tells The Secret To Landing His Investment

LE WEB PARIS 2013 - CONFERENCES - PLENARY 1 - FRED WILSON

When you’re talking about top tier venture capital firms, you can’t really leave out Union Square Ventures. The New York firm has invested in some pretty big names: Twitter,  Foursquare, Etsy, Kickstarter…

Actually, that list could continue for the rest of this article, and I still wouldn’t name all the strong companies USV has invested in. Yet, despite a long list of impressive investments, the firm only hands out money to roughly 8-10 companies a year.

So, how does a startup get the attention of a top tier VC firm like Union Square?

Thanks to blogging, speaking investors like USV’s Managing Partner Fred Wilson, that’s actually not hard to discover anymore. But, last week, Wilson gave a talk at Le Web that outlined their investment strategy.

Ok, so he was supposed to talk about his predictions for the future.

“As if I had a crystal ball or something,” he told the audience.

Instead, Wilson outlined the 3 major trends he is watching and the 4 areas within to those trends that he’s particularly interested in. Right there, on the stage of LeWeb, Wilson made it very clear what his investment goals are. And, since he’s investing real money in these areas, it’s safe to assume they are where he expects to see massive growth in the next 10 years.

Wanna know what they are?

  • Networks
  • Undbundling
  • Smartphones

Networks:

Wilson is very bullish on networks, and he started with the analogy of old newspapers. Editors decided what to cover, assigned reporters, and reporters got the stories. Now, thanks to networks like Twitter, people decide what’s news and what isn’t.

Besides media and content, though, he points out other industries that are now being disrupted by networks: hotels by Airbnb, Hollywood by Kickstarter, and education by Codecademy and the like.

Unbundling:

“People are starting to deliver much more focused services–best of breed services–and you can buy them a al carte.”

Wilson pointed again to newspapers, which used to house all the global, national, and local news one person could want in a day. Now, of course, we go to many different sites that focus on being the best in their given vertical.

He then talks about several industries that are experiencing unbundling: banking, education, and entertainment.

Smartphones:

Well, obviously. Mobile is exploding (well, maybe not yet). But, it’s going to. Wilson calls us all a “node on the network,” and in a hand-raising poll of the audience, most attendees would choose to have only their smartphone, if they had to choose between that and a computer.

The connection of the “nodes on the network” impact industries like transportation (Hailo), banking (Dwolla), and even dating (Tinder).

There, on the stage of Le Web, Wilson laid out all the “secrets” to getting in with Union Square Ventures. If you have a startup that’s innovating in one of these big trends, it looks like you have some phone calls to make.

Scrappy Startup Exhibit A: Freshdesk

Freshdesk vs zendesk

It’s kind of an “Are you kidding me?” story.

A couple of years ago Girish Mathrubootham was just browsing Hacker News when he came across a comment complaining about customer service platform Zendesk. The commenter pointed out that there was a huge opportunity for someone to swoop in and take away Zendesk’s market dominance.

A couple of months later he and his new cofounder Shan Krishnasamy quit their comfy jobs and committed to Freshdesk full time. They brought 4 other employees with them, even though they had raised no money at that point. Before long they built a product, incorporated in the US, and raised some capital from Accel Partners and Tiger Global. The company built out a platform that allowed companies to offer exceptional customer service with a lot less internal hassle.

Things were going spiffy.

Until, last December when someone hopped on Twitter and called the company an “unethical troll.” In several weird twists, another Twitter user attacked Freshdesk’s Indian ethnicity, the CEO of Zendesk jumped in and called the 6 month old competitor a “rip-off,” and it was discovered that the original attacker was actually a blogger paid by Zendesk.

Okaaayy…

I’ll hand it to Freshdesk, though. A little controversy never seems to hurt, and the blatant attacks from their biggest competitor did nothing to dampen their 2013. This year Freshdesk unveiled a freemium model, swearing that prices would never change, and announced free services certain startups. (Including, by the way, all attendees from Everywhere Else Cincinnati.)

In 2013, the young company also announced that they had reached 10,000 customers. Those enterprise customers include companies like Goodreads, Hugo Boss, Stanford School of Medicine, The Atlantic, and Pearson.

I can imagine that many of the founders’ friends and family thought they were crazy for quitting comfortable jobs to explore this idea. (We’ve all been there, haven’t we?)

It seems the gamble is paying off for Freshdesk, though. They still aren’t quite as big as their rival, which is rumored to be considering an IPO next year. But, they obviously have the bigger company running a little scared if Zendesk is attacking them so publicly.

Not that Freshdesk seems too worried. They just keep delivering a great product and giving back to the startup community. Sometimes it doesn’t matter if you’re first in an industry, as long as you’re the best.

Are We Looking At The Next Snapchat?

Bitstrips comic avatar app

Hey, have you heard the one about the startup that’s been at it for 5 years without raising significant money? Then, they close a $3 million Series A from Asia’s richest man, Li Ka-shing, on the exact day their new mobile app hits #1 in the App Store.

Oh, and they didn’t actually have to pitch that investor from Horizons Ventures because he came to them.

That’s the true story of Bitstrips, the popular Facebook app that’s been clogging your feed with personalized comic strips.

When I hopped on a call with CEO Jacob “BA” Blackstock, I congratulated him on the round and all the buzz they’d gotten lately. I commented on the crazy week or so he must be having.

“Yeah,” he laughed. “But I finally got some sleep, so that’s good.”

Blackstock has been drawing since he was six, and he remembers making comics with and of his friends as he grew up. Consider it an analog version of the current Bitstrips product. The current digital product has been around in some form for 5 years or so and experienced some popularity. In fact, Horizons Ventures’ Li Ka-shing was an avid Bitstrips user, which is why he wanted to invest in the first place.

The picture above is an excerpt of the startup’s comic-strip blog post from last week.

Then they decided to go mobile.

The launch was executed in stealth mode. In fact, the team launched Android first and saw a few downloads, but nothing outrageous. A month later, the app appeared in the App Store.

The rest, as they say, is history.

Almost overnight Bitstrips was the #1 app not just in the US, but in 40 countries. (And, no, it hasn’t even been translated from English yet.) Within 2 months there were 30 million avatars created, and millions of Bitstrips are made every day. Even some well-known news anchors are getting in on the fun.

“It amazes me that we haven’t even translated it yet, but people all over the world are using it,” Blackstock told me.

Needless to say, the team in Toronto that launched an app in stealth mode wasn’t quite ready to handle the growth.

At first they experienced some challenges with servers and such. Then the complaints started coming in from Facebook users. Feeds were now filling up with random Bitstrips comics. The app was so popular, users were using it too much!

What a problem to have.

Now, with funding in the bank, Blackstock is focusing on building the team and updating the app. They have already expanded the sharing options to include Twitter, Instagram, and text, as well as released some holiday comics that can be customized.

According to Mashable, Bitstrips is following a “users now, monetize later” strategy. Since most consumer-facing apps take this approach, it’s certainly a familiar play. For now, Blackstock and the Bitstrips team see it as a way for people to connect with each other in a new and interesting way, which also sounds vaguely familiar.

Is it possible we’ve already found the next Snapchat?