New York Gets Billion Dollar Exit With Tumblr

Tumblr, Yahoo, David Karp, Marissa Mayer, Acquisition, Exit

Tumblr founder David Karp onstage at TechCrunch Disrupt 2011 (photo: K. Sandler for Thedroidguy.com)

This was the big startup news all weekend. At the end of last week, rumors started bubbling up via AllthingsD suggesting that Yahoo, and it’s new powerhouse CEO Marissa Mayer was looking for their biggest startup acquisition to date. That startup was Tumblr.

Last week we started hearing that Yahoo was prepared to buy Tumblr for $1 billion dollars. Many tech and startup pundits suggested that Facebook may try and jump in and swallow up Tumblr before the Yahoo board could get together Sunday and vote on the acquisition. Facebook reportedly, never made an offer.

In case you’ve been living out in the wilderness without internet access, Tumblr is a microblogging platform. They have over 100 million monthly visitors and see over 90 million posts made per day.  Unlike the 140 character restriction on Twitter, people posting to Tumblr can write longer formatted posts and include pictures, videos etc.

Coincidentally Tumblr, and it’s founder David Karp, were the subjects of my most widely read story ever in my career is a “blogger”. Tumblr is just that popular.

Karp has been swatting off offers to buy Tumblr almost since it’s inception. Celebrities like Lady Gaga and others, flocked to Tumblr to add to their social media strategies. In fact GaGa actually posts on her own Tumblr, whereas her Facebook page is updated by a social media team.

The Wall Street Journal, and several other credible sources, have said that Yahoo’s board approved a $1.1 billion dollar acquisition of Tumblr. Many sources speculate that Mayer, a 13 year veteran of Google, hopes that Tumblr will be Yahoo’s YouTube.  It’s also been reported that, for now, Tumblr will operate as it’s own business unit, and continue to be based in New York.

There are no solid revenue numbers for Tumblr reported online. What has been reported is that the startup, that was founded in Karp’s mom’s small New York apartment in 2007, has raised $125 million in venture capital and at one point Karp sold 25% of the company for$750,000. It’s unclear how much Karp still owns today.

Karp, along with girlfriend Rachel Eakley, a grad student and chef, lived in a modest west village apartment until last year when they moved into a $1.6 million dollar loft in West Brooklyn. Karp dropped out of high school, finishing up his education on his own and then moved to Japan where he coded for a living.

There’s no official word of how long Karp will remain with the company.

New York even has a ping pong startup!

EEBOTHDiscount

Shark Tank’s Daymond John Invests Time & Money In Chicago Startup Resultly

Resutly,Chicago startup,Daymond John,Shark TankIt’s gotta be exciting for Resultly founder Ilya Beyrak who just two months ago penned a blog post on the companies blog about what “I’m Out” means on the hit reality series Shark Tank. Now, Beyrak and the team at Resultly are celebrating bringing Fubu Founder and Shark Tank Shark, Daymond John on board as an investor.

More importantly though, John is excited about the product and part of his investment is a partnership where he will help the team grow their product that allows people to search for something and then get updated on it.

“Kim Kardashian sent a tweet last year stating how she keeps checking eBay for a pair of shoes everyday that’s sold out,” Beyrak said, . “If even Kim can’t find a pair of shoes and keeps repeatedly checking online, imagine how many others suffer the same fate,”

Resultly provides users with a mobile app to stay on top of all their interests. Tapping into the web’s largest ecommerce, travel, news, and social sites lets Resultly bring users items exactly matching their interest the second they hit the web. Resultly aims to eliminate the need for users to continue checking the Internet for updates on the things they care most about.

“When I first tried Resultly, I was blown away by the product in the first couple seconds of playing with it. It easily solves one of the biggest problems with search in a way that all of the big competitors aren’t addressing,” said John. “It was hard not to get excited about the product and additional value that I could bring.” Resultly realized there was a real world problem of users repeating search behavior online to get the freshest content: the need for constantly checking if something has been added or updated online. Thru its service, once a specific interest is added to a users’ account, Resultly stays on the lookout for things matching that interest automatically. Users then receive detailed alerts to their mobile device with the key information around those items. Products receive key information like images, price, color, and condition, while Job alerts show salary, location, and position.

John invested in Resultly throgh his “shark branding” investment arm. Sharkbranding scours the country to find interesting startups and companies that would compliment John’s current portfolio of companies or that would make great partners. We met SharkBranding’s, Jared Nixon, at the GigTank Investor Day in Chattanooga Tennessee last August.

Shark Tank’s Mark Cuban leads $1 million dollar round for Florida startup.

EESVDeal1

Mark Cuban Leads $1 Million Dollar Round For Florida Startup LinguaSys

LinguaSys,Mark Cuban,Florida startup,startup

Mark Cuban (photo: JD Lasica flickr)

Florida startup LinguaSys is the latest startup to graduate out of the Technology Business Incubator at the Research Park at Florida Atlantic University (TBI). The company provides translation and multilingual text analytics to businesses and government.

They’re also the latest startup to catch the investment eye of billionaire Shark Tank investor and the owner of the Dallas Mavericks, Mark Cuban. Cuban has reportedly led a seed round of funding of $1 million dollars that will allow the company to expand into their own offices in Boca Raton.

The TBI is an exceptional facility, and we are proud to have launched our business there,” LinguaSys CEO Brian Garr said in a news release. “It provided us with a stimulating work environment and a variety of resources which helped us to be successful.”

The company was founded in 2010 by three founders that have over 30 years of combined experience in the human language technology space. LinguaSys had their first product out to market within three months of forming.

Now LinguaSys has expanded to Germany and Australia as well as their Florida home base.  They’ve grown to 14 employees and they’re also a partner with Salesforce providing their text analytics capabilities inside the Salesforce Marketing cloud.

For more on LinguaSys visit here. 

Here’s how not to get an investment from Mark Cuban.

Traction Trumps Team When Going For The Million Dollar Round?

Raising Funds, Venture Hacks, AngelList,startup tips

(Photo: César Salazar of 500Startups)

Teams are great. A lot of people look at founders and teams, but of course the product has to be great too. That is unless you’re a founder with a track record for success, but all of that will be covered later.

Greg Kumparak is evidently back at TechCrunch. Kumparak was one of my favorite TechCrunch writers while I was “thedroidguy” we’d bump into each other all the time while I was on the mobile beat, Berlin, Barcelona and of course here at home. He left last year after the Arrington fiasco and apparently he’s back, writing about startups.

So let’s dive into the meat and potatoes of this post here, because that’s why you clicked on the link. We try and share whatever startup tips we can and one of the biggest things people want to know about is raising money. Specifically, startups in their earliest stages want to know how to raise millions of dollars so they can just “work” and not have to worry about where their next meal is coming from or how the rent will get paid.

Somewhere along the way though, $100,000 or even $500,000 was not enough. Everyone seems to be looking for that million dollar Series A round, or even more presumptuously they are looking for a million dollar seed round, or angel round. Regardless of the round, Ash Fontana, a venture hacker at AngelList, came up with the bullet points above when talking about raising a good million dollar round.

Like me, one of the first things Kumparak noticed in the slide is that product and team are crossed out. Traction is clearly circled. So now traction is the most important?

Perhaps this is right, but of course from the perspective of an AngelList venture hacker it’s absolutely right. AngelList thrives off traction. We actually learned that 500 Startups, startups, actually plan one startup a week that they will all follow on AngelList in unison. This way a 500 Startups, startup, is always trending on AngelList.

This real need for startup traction actually goes well beyond AngelList and can be a key performance indicator when your deal is being reviewed by investors.

In case you can’t clearly read the slide here are the key take-aways, things that your startup should already have before approaching that investor for your million dollar round:

– Enterprise startups need to have 1,000 seats at $10/seat/month

– Big enterprise startups need to have 2 pilot contracts with some $

– Social startups need 100,000 downloads and signups

– e-commerce “market place” startups need to have $50,000 in revenue per month

Fontana did disclose to Kumparak that these numbers are just rough estimates based on his insight and not actual numbers directly from the AngelList database.

While many investors talk about the importance of product and team it seems that when you get to the stage where you’re ready for a $1 million dollar investment (or more) the product and the team should already speak for themselves and the traction should tell their story.

Tell us what you think in the comments.

Source: TC

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A Green Record Label and A Pedal Powered Recording Studio [interview][onespark]


Florida Green Records, Bicycle Powered recording studio,startup,onespark
Florida Green Records is an incredible green record label. The record label operates two brick and mortar recording studios, one in Jacksonville and one in Key Largo.

At both recording studios, they try and be as green as possible through efforts like using digital recording versus pressing CDs, they use environmentally friendly paper and try and conserve energy. Now they’ve taken their green efforts a step further by creating a mobile recording studio that is powered by a bicycle.  The mechanism for converting the bicycle energy into usable energy for the studio is able to attach to anyone’s bicycle.

floridagreenrecords-1
Florida Green Records’ mobile recording studio is complete with computers running pro-tools, an isolation booth that can accommodate vocalists, guitar players and even a drum kit, and a working air conditioner that operates off of ice water. To power the studio someone rides a bike, and their power system, designed by the team at Florida Green Records, stores the energy in old UPS batteries. The batteries can run the studio for up to 3 hours, with the AC going.

floridagreenrecords-bikeWhile we stayed away from saying what our favorite creation at OneSpark, the World’s Crowdfunding Festival, was, the pedal powered recording studio is definitely in our top 3.

floridagreenrecords3Throughout the five day festival Florida Green Records recorded some of the musical creators for free, and of course it was all powered by the bike.  They also encouraged folks to bring their bikes out and help power the recording sessions.

Check out our video interview and a quick walk through of the studio in the video below.

Check out Florida Green Records here

Keep up with all our OneSpark coverage here!

 

In The Wake Of The Boston Marathon Bombings Paul Graham Turned To Watsi, And Then Took His First Board Seat On Their Board

Watsi,YCombinator,Paul Graham,Startup

Chase Adam founder of Watsi (photo: Jim Wilson/New York Times)

Y Combinator founder Paul Graham is a busy man. Based on the West Coast, when America’s hearts turned to the Boston Marathon bombings, his did as well. Being so far away there wasn’t much he could do to help the situation in Boston so he turned to Watsi.

Graham tweeted on Monday “When terrible things happen to people I can’t help, I go to watsi.org and help people I can”.

grahamtweetWatsi is a crowdfunding platform that allows users to connect with patients with real serious needs for low cost medical care and enables users to fund high impact treatments.

For example the Watsi home page shows Eliazar a young Guatemalan man who had to have his right arm amputated after gang members threw a grenade into his home. For just $650 he can get a prosthetic device that will help him perform simple daily tasks that are impossible at the moment. He is just $205 away from that goal.

Currently Eliazar is the only fundraising patient on the site, to date they’ve funded over 300 patients and helped them get their much needed medical attention.  Now you can see why Graham would choose such a service to actually help people.

It was this revolutionary new concept in crowdfunding for social good that motivated Graham to invite the founders out to Silicon Valley for a meeting and then invite them into Y-Combinator as the accelerator’s first ever non-profit startup.

Like many Silicon Valley power players, Graham is a very busy man. He enjoys helping and nurturing the startups that are in the YC program and serves as a “father figure” to many of them, well beyond their YC days. He’s known for going to bat for his startups with other power players in the investment community, like the ever so famous Paul Graham, Fred Wilson debate over Airbnb.

grahamtweet2While many power player’s resumes include laundry lists of board seats that they serve on, until now Graham has never taken a board seat.   Just like Watsi was the first ever non-profit in the Y-Combinator program, it was also the first startup that Graham has ever decided to take a board seat on.

Graham will now provide guidance to the young company that money can’t even buy.  With that in mind you also have to consider the fact that this is a non-profit so Graham can’t expect a large return, if any at all.

For decades, heart wrenching commercials have shown up on the TV urging people to sponsor kids in foreign countries for education, clothing and food. For just $.25 a day you can make a difference. While those programs are great, most people receive a photo in the mail of one kid and aren’t clear on where their money actually went. With Watsi it’s very clear. Of course they are also vetting the patients’ stories as well to make sure the money goes in the right place.

With all that’s going on in the world today, this is just a great story to share on a Sunday. Share it below!

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Meet OneSpark Creator: BoneShaker, Really I Just Thought He Was Cool

BoneShaker,OneSpark,Creator interview,interview

There is no way that I can spin this into a startup story,except for the fact that Ron “BoneShaker” Schroer, is participating in OneSpark, the World’s Crowdfunding Festival.
Schroer spent many years working in animatronics, designing and creating Disney like animatronics for theme parks, and interactive exhibits for kids. The lifelong Jacksonville resident heard about the OneSpark festival and had to be part of it.

“There has been nothing like OneSpark before in Jacksonville and I wanted to create something for it”, Schroer harnessed his creative brain and his experience in animatronics and started to think about what to create. He had a ton of old fencing on his property so he proceeded to create “Ol Fence”.

“So I looked into my cupboard to see what I might bring. Thinking about how to incorporate my many Florida experiences, I realized how integral to the southern image is fencing- weathered wood, rolling and undulating, almost alive with personality- and thus was born Ol’ Fence- folk art meets process control. Ol’ Fence has 40 individual motions that can be combined for a wide range of actions. His ‘speech’ is created live with a talking drum, bowed and struck.” Schroer said in his OneSpark creator bio.

Combine all that with the fact that Florida probably has the most animatronics per capita of any state in the US, and you’ve got a match that is very creative, eye catching and perfect for OneSpark.

Kids passing through the Jacksonville Public Library where Ol’ Fence is on exhibit, are taking pictures with him in droves. Schroer has even opened up the back side of Ol’ Fence to show passerbys how the animatronics works.

He also has a work in progress on display, a time machine of sorts.

Schroer’s enthusiasm for the OneSpark event is infectious and it echoes what many Jacksonville residents have expressed about the inaugural festival since we’ve been on the ground here on Wednesday. Schroer has been reminding people to sign up and vote. He doesn’t care if he wins or not but he wants to see as many people as possible vote for something, to show how much of the community supports the event.

See more awesome Creators and OneSpark stories here at nibletz.com

After 24 Hours Local Music Discovery Statup Aurora Is The Biggest Mover At OneSpark

Aurora,OneSpark,OneSpark standings,crowdfunding,vote

Angel Ayala Torres pitches Aurora At OneSpark (photo NMI 2013)

At 5:30pm the OneSpark staff took to the stage at Hemming Plaza and announced the biggest movers in the voting for OneSpark creators. Creators come in four categories; Art, Science, Music and Technology, with a fifth category for “other”.

Besides the biggest movers OneSpark had another huge announcement and that was that 20,000 people came out on Wednesday night for the opening ceremonies and entertainment district as part of “The World’s Crowdfunding Festival”.

464 creators are registered to receive the crowds votes and here’s the biggest movers after the first 24 hours.

Art

3. 20 Murals
2. One Wall
1. Rethreaded

 

Music

3. Girls Rock Jacksonville
2. Elestial Sound
1. Fathomsphere

 

Science

3. Kona School
2. One Food Park Project
1. Tiger Trail

Tech

3. Nerdular
2. The Forge
1. Aurora

Other

3. Live for today foundation
2. Five and Dime
1. 123 Fresh

We’ve got more incredible OneSpark coverage here at nibletz.com

Interview With OneSpark Creator Burro Bags [video][onespark]

Burro Bags,Jacksonville startup,creator,OneSparkWe ran into Amanda from Burro Bags, who’s OneSpark project was set up at the Jacksonville Landing plaza. Burro Bags has been in business manufacturing bicycle accessories and messenger bags for the past five years.

Now though, they’ve introduced a new line called Impakt. With this line they are taking used promotional items and upcycling them into a variety of products. You’ll find handbags, messenger bags, and other accessories in their new line.

They showed off the creations they made using the flag pole signs for the recent Jacksonvilel Jazz festival. The banners are made of high quality, durable, vinyl and PVC. Typically after an event these things get tossed aside, or if they’re lucky, upcycled into things like drop cloths for painting.

Burro Bags found the value in the materials and the artwork itself and made an entire line out of it.

With all the signage in the downtown area for OneSpark, there is sure to be a nice OneSpark line for Impakt next year.

Although this falls outside the realm of startups, Burro Bags is crowdfunding here at OneSpark the inperson crowdfunding festival and it’s a great example of the variety you’ll find amongst the 464 official creators.

Check out Burro Bags here

We’ve got more OneSpark coverage here at nibletz.com The Voice Of Startups Everywhere Else.

Jacksonville Jaguars Are “All In” OneSpark The Crowdfunding Festival

Jacksonville Jaguars,Brian Sexton,startups,crowdfunding

Jacksonville Jaguars voice, Brian Sexton, MC’s OneSpark’s opening ceremonies (photo: NMI 2013)

We’ve been to a lot of startup conferences, festivals and events, and aside from the world famous SXSW, I’ve never seen a city so supportive of an event like this, especially a first time event. The entire city from the municipal government to the chamber of commerce and all of the agencies in between are truly engaged with OneSpark.

Police officers and Sheriff’s officers on loan to the downtown area, know where everything is, ask about creators, and projects and heck we’ve seen a few cops taking iPhone pictures for passerbys. In talking with some of the officers, they are all excited about OneSpark and what it means to downtown. “Big festivals and events like this usually happen across the bridge, OneSpark is great for downtown”, a Sheriff’s deputy who asked to remain nameless because he was on duty told us while we were walking toward Hemming Plaza.

One organization that you wouldn’t think would necessarily be involved in an event like OneSpark is “all in”, and that’s the NFL’s Jacksonville Jaguars.

The voice of the Jacksonville Jaguars, Brian Sexton, was the MC for the OneSpark opening ceremonies. While he talks for a living, on the stage at OneSpark he worked from a set of notes but you could easily tell that he knew all about OneSpark, adlibbing about the founders, the event and the creators. Sexton’s familiar voice to the resident’s of Jacksonville serves as another reminder that the whole community is all in.

Jaguars cheerleaders were also mingling throughout Hemming Plaza all afternoon long, even lending a boost to one of the presenters during the afternoon pitch sessions.

jagscheerleadersAs part of the opening ceremonies the cheerleaders returned to the stage to accompany the Jaguars drum line who played a nice ten minute set to warm up the crowd, pep rally style.

Of course that’s just the beginning. Jaguars owner, Shahid “Shad” Khan, a local businessman and entrepreneur is notorious for supporting downtown causes. For OneSpark though his Stache Fund (a play on his signature moustache) has committed $1 million dollars to the event and the crowdfunding prize given out at the end of the festival based on voting.

Luckily for Jaguars fans we’re in the thick of the offseason, but nonetheless this isn’t just an “appearance” for anyone associated with the team, like the police officers, city councilmen and women and others, the Jaguars are all in for OneSpark.

We’ve got more OneSpark coverage here at nibletz.com The Voice Of Startups Everywhere Else.

OneSpark Founders Answer Our Favorite Question: Why Now (startup community) [onespark][video]

OneSpark,Jacksonville startups,startup event

OneSpark Founders (L-R) Varick Rosete, Elton Rivas and Dennis Eusebio (photo: NMI 2013)

Two years ago three friends, businessmen, entrepreneurs and community minded guys sat around a Panera Bread talking about what they could do to help spark the startup community, and the creativity that comes with it, in Jacksonville Florida. Those three friends, Elton Rivas, Dennis Eusebio and Varick Rosete, set out to create an event that could serve as an ongoing catalyst for creativity and startups.

All three founders were paying attention to the growing trends across the country. Startup communities were popping up in cities all over the United States, many of them the same size as Jacksonville with similar resources but no real focal point. They all wanted to do something and create something, and they didn’t want to move to do it.

In this quick impromptu panel discussion, led by Jacksonville Jaguars voice, Brian Sexton, all three founders touch on “Why Now, Why OneSpark”.


Rivas talks about the timing saying “the time has never been better for this”. Rivas talked about how technology, smartphones in particular, people have the ability to connect from anywhere. To that end, while we talk about Chattanooga and Kansas City often when referring to high speed internet, Jacksonville Florida was the second market in the United States to get ClearWire’s WiMax service back in 2003.

Now with the connectivity, the people and the resources, with a catalyst like OneSpark residents of Jacksonville are starting to see they can do it right in their own city. Rivas has already gotten a taste of this by being a cofounder of CoWork Jax, a coworking space with an emphasis on collaboration and creativity.

Eusebio opened up his answer with the fact that he didn’t want to move. As a tech guy Eusebio was starting to feel the pinch, do I stay home, a place I love or do I brave the waters in another more tech savvy city like San Francisco. He set himself a 2 year deadline to come to that decision and during that two years the trio started creating OneSpark.

Rosete says he did this for the creators, he wants the creators to know that they have the resources to help get ideas, companies and creations off the ground without having to go take day jobs that creators don’t really want.

With a list of sponsors that reads like a telephone book, the city of Jacksonville is ripe and mobilized now to embrace startups, creators and entrepreneurs.

But OneSpark isn’t just about the local creators. They’ve attracted 464 projects from across the street, across the river, across the country and around the world. The 464 projects are spread out across 65 different venues in downtown Jacksonville.

Early estimates suggest that there will be between 15,000 to 20,000 people in Jacksonville over the next five days specifically for OneSpark, participating in voting, the speaker series and just walking around and checking out the 464 projects. Several local media outlets predict the swell of people downtown could reach 100,000 when you mix in the variety of great live entertainment that the OneSpark team has helped cook up.

While the focus of OneSpark and the creators is Music, Art, Science and Technology, when dusk hits the focus turns to the “entertainment district” where clubs, bars,restaurants and pop up venues are hosting hundreds of bands and performers in a festival atmosphere that can only rival something like SXSW. If anyone is keeping score there were around 800 attendees at the first SXSW festival and 29,000 official registered attendees for SXSWi 2013. The groundswell in Austin is also believed to be 100,000 when factoring in all three different festivals that make up sxsw.

On the subject of SXSW, Rivas hopes that in 10 years the OneSpark festival will still be going on, and people will say “Oh Jacksonville, that’s where they hold OneSpark”.

Well yes as a matter a fact we’ve got a ton more OneSpark coverage here at nibletz.com The Voice Of Startups Everywhere Else.

 

sneakertaco

Brandery 2012 Alumn Flightcar Nabs $5.5 Million From Investors Including Ryan Seacrest

FlightCar,Ycombinator,Brandery,funding,startup newsSo back in July when we heard the original idea behind FlightCar I thought this group of teenage ivy league dropouts was absolutely crazy. Their Cincinnati startup Flightcar is a crazy idea. Their simplest pitch, “let someone else rent your car while you’re traveling” seemed a little far fetched. Combine that with the fact that there’s maybe 10 years driving experience between the three of them and even less business traveling experience, and I was totally disconnected.

Sometime during the Brandery’s demo day back in October my opinion changed. By the end of their pitch, and then a brief meeting with all three founders and I was completely sold.

With the “sharing economy” becoming more and more popular, why wouldn’t someone let another person borrow their car while they are away on a trip. People are doing it with their homes all the time now, by way of Vayala and Airbnb.

The concept is fairly simple. You’re flying out of town for a trip and you have to pay for parking for your car. Rather than paying for parking, Flightcar allows you to park your car in their lot and then while your gone it gets rented out to someone else who is coming into town for the same length or a shorter amount of time. Now, instead of spending money to park, you’re making money with your car that would otherwise be sitting in a parking lot.

To make the value proposition work Flightcar founders Rujul Zaparde, Kevin Petrovic and Shri Ganeshram had to insure a few things for their customers to be comfortable with the transaction.

Insurance: Of course the entire transaction, car, renters, drivers and passengers would need to be fully insured. Flightcar has done this by securing a $1 million dollar insurance policy.

Ease of transaction: The Flightcar team has managed to build in several factors to make the transaction as easy and painless as possible. The Flightcar website helps pre-determine the “borrowing”. Once at the airport (participating airports), you park your car at the Flightcar lot where a ride is provided to the gate. Flightcar will also wash and clean your car prior to renting it out and prior to you picking it up.

After the Brandery, Flightcar was accepted into the YCombinator accelerator program in Silicon Valley. Now they’ve raises $5.5 million dollars from investors. This first round of funding comes from  General Catalyst, Softbank Capital, Ryan Seacrest’s Seacrest Global Group, founder of Airbnb Brian Chesky, with participation from a host of other investors including First Round Capital, Andreessen Horowitz, and Reddit co-founder Alexis Ohanian, according to TechCrunch.

Check out their pitch video from Brandery’s 2012 demo day below:

Find out more about Flightcar here at flightcar.com

The Brandery is one of the country’s top 15 accelerators, check out all of our Brandery coverage here.

Are VC’s Bypassing Early Stage Health Deals?

Healthcare startups,Venture Capital,startups,funding,seed round,series a

(image: policymed.com)

Success stories, like the one of Memphis’ medical device accelerator Zeroto510, where 80% of their first class received follow on funding, seem to be growing scarce on a national scale.  In their first class of six startups at the ZeroTo510 program 5 of the startups received follow on funding, with one, Restore Medical Solutions, going straight to a $2.5 million dollar series A round.

Well national medical startup publication MedCity News, released two graphs this morning that may be alarming to early stage medical startups, who often need a lot more seed money than your social, mobile, webtech startups.

The data, published by CB Insights, shows a significant number of VCs are skipping over  earlier stage “seed round” deals for healthcare startups. Conversely, the same data set shows that the “series A crunch” may not be as prevalent in healthcare startups.

As you can see clearly from the data set Series A and Series B seem to be the preferred stage for a VC firm to get into a startup business, at least over the last five quarters.

According to MedCity News VC Funding in healtcare was up over the last year, in fact reaching  a “multi year high”. Also worthy to note is that the medical device category is eating up the most VC funds. That should be good for the next round of ZeroTo510, Rock Health and Health Box.

Restore Medical talks to us about their $2.5 million dollar Series A round. 

Mark Cuban Backed Apptopia Tops $1 Million In Sales

Apptopia,Boston Startup,Mark Cuban,startup newsBoston startup Apptopia is another startup we’ve been tracking for quite some time. We first brought you the story about this company that helps app developers actually sell their apps and app businesses, back in March of 2012.

While app markets seem to be a dime a dozen these days, Apptopia is not an app market at all. Apptopia allows developers to take their developed app projects and sell them for whatever reason they want. Perhaps they just got a thrill out of creating something and they’re ready to move onto the next idea. Or maybe developers are just creating apps to sell in a marketplace like Apptopia.

The vision for Apptopia caught the eye of ABC Shark Tank shark, and investor Mark Cuban, who likes to invest in original ideas that can cause a disruption. Cuban led the startup’s $1 million dollar seed round.

Last October we reported that Apptopia had cleared $25,000 in sales. Last week the company reported that they had participated in over 275 app acquisitions which amounted to over $1 million dollars in sales.

With growth like this in an entirely new market, Apptopia was named one of the “World’s top 10 most innovative companies in mobile” by Fast Company.

Apptopia isn’t just like “ebay for apps” they have a sophisticated algorithm built into the background that is able to take an apps current downloads, ratings and other metrics and triangulate it’s current valuation, to project future earnings.

“Take the popular app Temple Run, for example. Apptopia’s unique algorithm uses public data about Temple Run (245.7 million downloads, 4.7 million ratings) to triangulate its current valuation ($41.2 million) and project future revenues ($11.2 million over the next six months). Apptopia can perform this analysis on any app, making it an extremely useful tool for developers and investors alike.” an Apptopia spokesperson told us by email.

To find out more about Apptopia or sell your own app check them out at apptopia.com

Here’s a way not to get an investment from Mark Cuban.