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.

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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10 Disruptive Entrepreneurs of 2013 (Infographic)

We’re all suckers for the “disruptive entrepreneur” story. We love to hear about the hard-headed CEO that upended entire industries and changed the way we do business. And, secretly, many of us hope to be that founder some day.

But, what exactly makes a founder disruptive? The guys at ComputerScienceDegreesHub.com used the Gartner Magic Quadrant to rate several companies that broke out in 2013. For a full run down of what they found, click through to the original infographic.

For our purposes, what we loved about this infographic is that of the 10 companies featured, 5 were not based in Silicon Valley and a 6th had offices in New York as well as the Valley.

Rent the Runway is a New York-based startup that rents designer dresses at a fraction of the cost of purchase. The company is useful for weddings and other big events, but the big opportunity could be the magical night every high school dreams of: prom. No more off-the-rack department store dresses for the fashionable 16-year-old.

99 Dresses is also a fashion startup, this one based in Sydney. They aim to help shopaholics purge their closets, but still get their shopping fix by perusing other users’ trades.

Ninja Blocks, also based in Sydney, is getting in front of the “Internet of things.” The product makes it easy to connect all those connected devices, without special installation or coding knowledge.

DuckDuckGo got quite a bit of press when the Edward Snowden/PRISM story broke. The Philadelphia startup boasts a search engine that really does protect your privacy. Now that is disruptive!

Thumb is a social voting app based in New York City. It has an interesting B2B component that could help brands execute quick customer discovery.

Now, granted, the sample is fairly random, and there are lots of disruptive Silicon Valley startups. Still, it’s encouraging for entrepreneurs to remember that great, disruptive startups are being built outside the Valley every day.

Check out the infographic below for more information on the 10 disruptive founders from 2013.

 Disruptive Entrepreneurs
Image compliments of Computer Science Degree Hub

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!

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.

The Gig City Launches National CO.STARTERS Program

Chattanooga CO.STARTERS

Small business is the backbone of our economy.

We’ve all heard it. Over and over (and over) again. But is it true?

Earlier this fall a report from the Kauffmann Foundation suggested that it may not be. Tech companies do actually drive economic growth, so that’s good news for the startup ecosystem. But, we all know what a risky game starting up is, and we can’t always trust that tech companies will continue to grow like they have in recent years.

Still, startup founders and investors have learned a lot about developing businesses. Wouldn’t it be great if we could apply some of those lessons to other segments of the economy? The term “intrapreneur” defines employees of large corporations that push for innovation and change. Is there something similar for small businesses?

There will be soon, if the CO.STARTERS program in Chattanooga, TN has anything to say about it. Last month the program, based out of startup engine The Company Lab, announced a national expansion of their brand of small business development.

“There is a new approach to business in the high-growth startup world,” CO.STARTERS Director Enoch Elwell said in a statement. “Through CO.STARTERS we’ve adapted and applied those highly effective proven methods to micro-business, bringing together a community where these founders can thrive.”

Those of us in the startup world almost consider these techniques cliche now. Things like the lean startup method, customer-focused iteration, pivoting quickly to meet market demand–these things are so common they’re not even really debated any more. But that’s not true for the small business world, where entrepreneurs can labor for years before realizing they’ve missed the market.

With the national launch, CO.STARTERS is offering its curriculum in 3 different formats. The core curriculum covers the basics of business building, regardless of location. The urban and rural (coming soon) take that core curriculum and add in layers that will address the unique situations in each of those areas.

The CO.STARTERS program has already been adopted in cities around the country like Phoenix, Cincinnati, and Fort Wayne, Indiana. To find out more about CO.STARTERS check out their website.

Mobile First? Apparently Not In 2013, According To Mattermark

SmartphonesI love helping our clients look for promising deals, and I’m starting to recognize certain patterns for exceptional signals of growth that go beyond what our UI exposes in an obvious way. The most surprising thing the data has revealed lately is how few startups have widely used mobile applications.

Of the 200,000+ companies in our database just 6,386 received a mobile growth score, indicating they are or have been ranked in Apple’s iOS App Store in the United States sometime in the past six months. Of this group, only 1,180 are the flagship application of a venture-backed company.

Context: Challenges of Building Product for Mobile 

Investing in the growing mobile startups is highly competitive, but finding a promising deal feels a lot like searching for a needle in a haystack. For all the noise being made about going “mobile first” this strategy doesn’t seem to be working (or happening) at the majority of companies we are tracking. Andrew Chen’s piece from August 2012, which went viral again earlier this week, titled “Mobile App Startups Are Failing Like Its 1999″ explains the challenge:

Startups today have a super high bar for initial quality in their version 1. They also want to make a big press release about it, to drive traffic, since there’s really no other approach to succeed in mobile. And so we see startups burn 1/3 to 1/2 of their seed round before they release anything, it becomes really dangerous when the initial launch inevitably fails to catch fire. Then the rest of the funding isn’t enough to do a substantive update.

Context: Challenges of Distributing Products for Mobile

Relatively few startups have applications that are ranked in the App Store, and those who do often spend significant marketing dollars to keep them there. For early stage folks without that kind of budget anything short of an immediate hit will struggle for exposure, while an organic hit can catapult these companies to multi-billion dollar valuations seemingly overnight.

Here are the top 10 fastest growing mobile apps of EVERYTHING we are tracking, based on the Mattermark mobile growth score:

  1. Bitstrips [MM: 669] – Turn yourself into a cartoon character, make comic strips to share with friends. (No known funding)
  2. Notegraphy [MM: 852] – combine words and graphics to create beautiful notes to share (July 2013 $260K seed round)
  3. 24me [MM: 378] – automate your calendar and tasks (No known funding)
  4. Paprika [MM: 338] – recipe management (No known funding)
  5. Vinted [MM: 1699] – P2P marketplace for clothes (No known funding)
  6. Bandcamp [MM: 239] – publishing platform for musicians (December $10 Series A from True Ventures, unknown amount)
  7. uSpeak [MM: 67] – mobile language learning (July 2012 Seed round from Great Oak Ventures Capital, undisclosed amount)
  8. Anomo [MM: 65] – anonymous social networking app (June 2013 $355K seed round)
  9. TheFind [MM: 369] – mobile ecommerce (July 2007 $15M Series C from Lightspeed Venture Partners, Redpoint Ventures and Bain Capital Ventures)
  10. SaveUp [MM: 156] – rewards for saving money and paying off debt (July 2012 $5M Series A by True Ventures and BlueRun Ventures, $7M total funding to date)

While many debate the accuracy of these valuations, they are missing the broader point. Few startups know how to do mobile distribution at a price point that makes sense for advertising-supported (or zero revenue) consumer applications, so anything short of a massive breakout hit carries the risk of ending up a huge money-pit for marketing dollars.

What About B2B Mobile Applications?

Ah yes, these rare unicorns. With my fantasy mobile fund I would aggressively go after any B2B mobile application with the slightest hint of organic traction and some previous funding (but not more than $10M) – these criteria whittle the list down to just 147 companies, and if you only want positive mobile growth scores the list is reduced further to just 40 prospects.

I think this is where we’ll find our next unicorns. Want to check some of them out? Here are top 10 on my list for B2B applications on the iPhone, ranked by Mattermark’s mobile growth score:

  1. CoTap [MM: 751] – workplace mobile messaging (May 2013 $5.5M Series A from Charles River Ventures & Emergence Capital Partners)
  2. Droplr [MM: 513] – simple secure file sharing for business (October 2013 $478K seed round lead by Seven Peak Ventures)
  3. Spotflux [MM: 294] – mobile security (March 2012 $1M Series A from New Atlantic Ventures and Kima Ventures)
  4. ClassDojo [MM: 1308] – behavior feedback platform for teachers and students (August 2012 $1.6M seed round from Ron Conway, Kapor Capital, StartFund, General Catalyst, Lerer Ventures, NewSchools Venture Fund and SoftTech VC)
  5. Attendify [MM: 667] – event attendee engagement app (September 2013 $200K seed round)
  6. Certify [MM: 38] – travel and expense management for SMBs (October 2009 $1.9M angel round from Irving Levin, Joe Proto, Esther Dyson, and William Benedict)
  7. Weekdone [MM: 431] – team task management dashboard (November 2013 $200K round from Kima Ventures, $360K raised to date)
  8. QuickMobile [MM: 442] – enterprise event management and planning (May 2013 $3.2M round from BDC Venture Capital, total funding $8.8M to date)
  9. LightArrow [MM: 28] – organization applications (March 2013 $1M seed round)
  10. FullContact [MM: 578] – contact information management (July 2012 $7M Series B from 500 Startups, Foundry Group and David Cohen, $8.8M total raised to date)

Testing out a B2B mobile application can be tough, because it requires much more effort to get going. Unlike consumer apps, where at least some of your friends have likely already joined, with B2B applications you are often the first one. Loading in tasks, projects, schedules, plans, goals, and then getting someone else in the work context to test it out with you can pose a challenge. To fill in the UI and actually get a “real” testing experience takes more time than making a profile and posting a silly picture… and so most people won’t. Which is why for investors willing to expend the time and attention, these types of applications offer an unfair advantage.

mattermark

 

Do you invest in mobile startups? Purchase our Mobile Startup Report for $999 to receive a spreadsheet of 6,386 startups with mobile growth scores. Data points include app store rankings, estimated downloads, investors, investment amounts and dates, growth stats for web and social, industry categorization and more. BUY REPORT >>

Danielle Morrill is the co-founder and CEO of Mattermark, the Bloomberg for startup investors. Mattermark tracks the growth signals of more than 200,000 private comapnies. The Mattermark newsletter is also one of Nibletz’s top 5 resources for startup newbies.

*This post originally appeared on the Mattermark blog.

Do Entrepreneurs Everywhere Else Need to Visit The Valley?

Silicon Valley

Here at Nibletz we talk a lot about startups outside of Silicon Valley. A lot of other publications focus on the coasts, where there is an intense concentration of startup activity. Around here, though, we know that in the 21st century great companies can–and will–be built everywhere else.

BUT…there’s always a but…Silicon Valley is still the leader in startup activity. (I know you don’t want to hear it, but it’s true.) In that relatively small part of the planet there are more successful investors and entrepreneurs than in any other relatively small part of the planet. And any entrepreneur who is serious about building high growth startups needs to not only acknowledge what Silicon Valley has done, but look to it for opportunities to learn.

Okay, now I’m off my soapbox. Here’s what put me on it in the first place:

General Assembly and LaunchRock are sending someone to the Valley. With their “Break Into The Big Leagues” competition, the two companies have partnered up to offer a sweepstakes of sorts. The winner gets a trip for 2 to San Francisco including:

  • Airfare (from anywhere in North America, Europe or Australia)
  • 3 nights at an Airbnb property
  • Car service throughout the trip
  • Tours and meetings with the hiring managers at Facebook, Google, Twitter, and Airbnb
  • Career mentoring from General Assembly and InternMatch
  • One-on-one coffee meetings with “Silicon Valley VIPs”

To enter, just hand over your email address here.

Now, it’s not uncommon for companies to use giveaways or contests to grow their mailing lists, but General Assembly and launchrock are going above and beyond. Entrant who don’t win the trip will still get access to interviews with tech insiders on how to break in and the GA class on getting a job at a startup.

We’ve talked about General Assembly before. The New York based organization offers educational programs that “transform thinkers into creators.” LaunchRock is an LA-based startup that helps companies set up “launching soon” pages.

This Challenge Actually Helps Students Become Entrepreneurs

Next University Mobile ChallengeThere are two stories we hear about college these days:

Get into a good school, graduate, get a good job.

OR, in most startup circles, don’t. In the startup world, we usually idolize the founders who drop out of or skip college and build huge companies.

There are plenty of schools and organizations that understand this. There’s an increase in entrepreneurial degrees available these days, and there are lots of opportunities for college students to flex their entrepreneur muscles before graduation.

One of those programs is the Next University Mobile Challenge, presented by the Applied Innovation Institute. The organization will select 12 teams from a variety of applicants to compete in the global competition at the Mobile World Congress in Barcelona in February.

Student teams from around the world are challenged to come up with an innovative idea to solve a real problem. The idea can be a business concept or a tech idea and can be aimed at any market. Past teams have figured out how to use mobile tech to get water to villages in India, locate cell phone owners in an earthquake, and predict premature delivery 2 weeks earlier than currently possible.

So, that’s real.

Teams from any school can apply, but if there are two teams at one school, there needs to be some kind of qualifying round to determine the best entrant. In the past, the Next University Mobile Challenge has had participation from schools like Harvard, Stanford, MIT, Cambridge, Oxford, and UC Berkeley.

Chosen teams receive training in pitching and branding their products and technology. They also receive a stipend to cover travel and attendance at the Mobile World Congress.

It’s easy to put things into a black and white worldview: college is completely bad or college is completely good.

But the truth is that college–like everything else–is what you make of it, and competitions like the Next University Mobile Challenge are a great way for students to glean real world experience while also attending school.

Got an idea for the Next University Mobile Challenge? Register your intent to enter here by January 1. Your actual idea will be due to the judges by January 31.

 

Off Track Planet Raises $500,000 To Build Living Travel Guide

Off Track Planet app

Off Track Planet started as a Brooklyn-based travel blog in 2009. Their first book Off Track Planet’s Travel Guide for the Young, Sexy, and Broke was released in 2012 and saw impressive distribution, including at Urban Outfitters stores. That year they also moved half of their startup to Cincinnati to participate in the Brandery.

Now, the hits just keep coming. Last week Off Track Planet announced a $500,000 seed round. CincyTech, the Brandery, and unnamed international angels all participated in the round. Off Track Planet will use their new capital infusion to build the world’s first “living travel guide.” The new app (which is currently in private beta) will aggregate users’ content from across all their social networks, organizing it by date, location, tags, and keywords into a single timeline. From that stream of images and updates, OTP will curate and add some editorial to create a cohesive, branded guide for a given place. Users will be incentivized to add more and better detail to create the richest guides possible. The “living” part comes in because each guide will change and grow as users contribute more and more content. Off Track Planet co-founder and CEO Freddy Pikovsky said in a statement:

“In order to build the most beautiful and intelligent travel guide, we needed to make it insanely easy and richer for people to share their experiences. Your travel stuff is scattered all over the place. We have pictures and bits of content fragmented on different social sites (Facebook, Instagram, Twitter, etc), and there’s no easy way of putting it all together to tell your story.”

The app is currently in private beta while the company recruits “super-users,” meaning travel experts, local experts, photographers, and bloggers. The company plans to launch a public beta early next year, along with 3 city guides: Buenos Aires, Brooklyn, and Berlin. Off Track Planet is demo-ing the new app at two separate events tonight. Go here to sign up for the Cincinnati event and here for the Brooklyn event. You can also keep up with beta release on the Off Track Planet website.

Tech Companies Call For Government Reform–And It’s About Damn Time

Reform government surveillance

 

Last night a website called Reformed Government Surveillance went up, supposedly signed by the biggest names in our business.

  • AOL
  • Facebook
  • Google
  • LinkedIn
  • Microsoft
  • Twitter
  • Yahoo

The big tech companies called for responsibility on the part of the government, outlining 5 principles that they think will keep the government accountable.

  1. Limiting governments’ authority to collect users’ information
  2. Oversight and accountability
  3. Transparency about government demands
  4. Respecting the free flow of information
  5. Avoiding conflicts among governments

This matters to you as a user of all these networks, because while the government still claims to be looking for terrorists, it’s not hard to imagine a future in which it uses our information for other means. (Dystopian fiction, anyone?)

It also matters to the Nibletz community because we are a group of founders and investors that inherently aren’t a part of the big companies who signed this letter. As our startups grow, the government is likely to turn to our data just as it does to the companies listed above. If they–with their money and manpower–don’t have the political will to resist government intrusion, how will the young guys be able to do it?

But–there’s always a but, isn’t there?–let’s also remember that these are companies, not benevolent individuals. None of these companies, except maybe Twitter, are really considered “innocent” when it comes to users’ data, and plenty of people are skeptical of the amount of information profit-seeking entities have on ordinary citizens.

We all know it’s a part of 21st century life, but that doesn’t mean we blindly trust companies that make a very, very smart PR move.

It has been over a month since Google engineers gave a very public “Fuck you” to the NSA, and beyond some chatter, nothing else has been said. Users have been calling for this kind of action on the part of the tech companies–and more.

While we champion startups outside of Silicon Valley, we all recognize that the companies in this letter are the leaders in our field. We look to them for inspirational success stories, and most of our companies are built on technology and platforms they created.

The question now is, will they continue to lead, or will they stop with a letter on a website?

IPO Watchlist Features 11 Startups Outside Silicon Valley

NYSE is a great place to IPO
Mattermark is bringing big data to venture capital, and their free daily newsletter is one of our favorite resources.

Last week, one of the daily newsletters included a list of 25 companies the Mattermark team thinks could file an S-1 or raise a final bridge round in 2014. There were some predictable names on the list, like Box, Uber, and Pinterest.

But, there were also lots of companies from outside of Silicon Valley. Eleven, to be exact. (Okay, 10 1/2. MongoDB has headquarters in both New York and Palo Alto.) So, in a list of 25, almost half the companies expected to IPO come from somewhere other than Silicon Valley.

New York has 4 startups on the list, making it the city outside the Valley with the most expected IPOs. International companies also had a strong showing, with startups based in New Delhi, Paris, and Beijing.

It’s true that no one area has the same concentration of tech startups as Silicon Valley, but the Mattermark list proves it’s probably time to stop saying you CAN’T build a tech company everywhere else.

Here are the startups from everywhere else that made Mattermark’s watch list:

  1. MongoDB (New York/Palo Alto)–MongoDB provides database technology to help companies take advantage of big data, cloud, mobile, and social trends. 
  2. Fancy (New York)–Fancy is a crowd-curated catalog that keeps up with new trends in merchandise, travel, and goods. You can buy right from the platform, putting it one step ahead of Pinterest. 
  3. Snapdeal (New Delhi)–Snapdeal is the largest online marketplace in India. They boast products in categories from fashion to computers to toys.
  4. Xiaomi Tech (Beijing)–Xiaomi Tech is only 3 years old, but their smartphone outsold the Galaxy S4 in the first half of this year. They also offer internet services like MiCloud, Xiaomi App Market, and Xiaomi Games.
  5. Outbrain (New York)–You know the “from around the web” box you see on some big publishers’ sites? That service is provided by Outbrain, a startup that helps content get discovered.
  6. Fotolia (New York)–Fotolia is a stock photography company that offers royalty-free images for creatives and designers.
  7. Wayfair (Boston)–Wayfair is a popular shopping site that offers all kinds of goods from your home.
  8. AirWatch (Atlanta)–AirWatch saw the mobile revolution coming, and they now provide solutions for the mobile workforce.
  9. JustFab (Los Angeles)–JustFab is the celebrity-backed startup that allows you access to shoes and accessories picked especially for you by professional stylists.
  10. Deezer (Paris)–Deezer is a European music streaming and discovery service.
  11. MuleSoft (London, Buenos Aires, Sydney)–MuleSoft connects SaaS and enterprise applications in the cloud. (One of their customers, Box, is also expected to IPO in 2014.)

We’ll be keeping an eye on these companies in the coming year, and we’ll let you know when the S-1’s get filed.