Posts Tagged ‘Durham’
Wednesday, January 18th, 2012
By Joe Procopio
 Joe Procopio Go big or go home.
I hear this phrase a lot lately. In some circles, it could be seen as a bubblicious mantra of a bunch of crazy kids looking to hit home runs by selling their social network startup to Facebook. In others, namely here in the RTP, it’s a battle cry for survival against the long odds of starting a company in this talent-rich, cash-strapped area.
But those odds just got a whole lot better.
Last night, longtime RTP startup ecosystem guru, former LaunchBox Director, and current TriangleTechTalk and TechJobs Under the Big Top founder Chris Heivly announced that a nice big bow had been put on a reboot of Triangle Startup Factory, the accelerator he merged into LaunchBox Digital when that accelerator swung south from DC back in 2010.
TSF will now host between five and seven startups twice a year, starting this spring, for intensive three-month programs chock full of capital, mentoring, connections, infrastructure, and, most importantly, a sizeable post-program runway.
That last one is the big news.
The Long Tail
I first met Chris back in 2009, looking for synergies between ExitEvent (at the idea stage) and the original TSF (pre-LaunchBox). We were both trying to solve the same problem: Baking a startup for three months, no matter how high the heat or how closely you watch it, was awesome, but didn’t account for the abrupt exit out into the real world of sustainability and customers. Especially not here, where the support structure was, at the time, non-existent, and even now, fledgling.
He had a much better handle on it, and talked about the creation of the long tail. In order for an accelerator to succeed here, there needs to be a much longer runway with a different-but-equal kind of support in place until the startup gets solidly onto its feet.
He’s still talking about it as of last night when we broke down the philosophy behind the new TSF. That long tail is what will differentiate the TSF program.
Going Big So They Don’t Go Home
Each startup gets the proper kickoff fuel: $50K in investment, access to a whole bunch of mentors and connections, space in Durham (TBD, by the way), and a big day at the end to show the world (and that’s the world, not just the RTP), what they’ve got.
But as a formal part of the program, TSF will offer a convertible note on the back end between $20K and $150K.
The sheer size of the initial investment figure and the convertible note puts TSF in the same stratosphere as TechStars and YCombinator. This will allow TSF to attract top-tier talent from around the country (maybe around the world) and, most importantly, keep them here.
And while the money is great, it’s up to us in the RTP to match that A-level program with the time, effort, and serious skills that make up the mentoring and the connections. In 2012, I believe we’re up for it. Finally.
Stay Hungry
Apart from the unique philosophy, another big difference will be the emphasis on a lean and agile methodology. In what Chris calls a 30% incremental difference from LaunchBox, the TSF program will run product focused, not business focused, and thus the messaging will be like very few accelerator programs as they are today.
Advice is what it is: Advice. I give it all the time, yet very few of my friends are rich enough to pay me back in Ferraris. Also, you don’t have to get too many mentors and entrepreneurs in a room before they start disagreeing about how to get to the next level. Usually these disagreements are solved on the ping pong table, but who has time for that?
The remedy for conflicting advice, repeats Heivly, is build, test, and iterate. It’s what the startup does with the advice that the startup can control and where TSF can assist. Chris feels like they did a good job of this with LaunchBox, but they need to do a great job of this with TSF.
Start Your Engines
Although there isn’t a focus on where the selected applicants will come from (although there is a limit on the type: no pharma, no medical devices, etc, we’re talking traditional tech plays), it’s certainly a boon for local entrepreneurs. It’s a huge incremental step forward for the area, and every single pre-funded startup should apply. It’s like you’re getting a head start on the rest of the country.
For once.
The application process is underway now at http://www.trianglestartupfactory.com and runs until they get their initial class, which begins on March 19th.
Joe Procopio heads up product engineering for automated content startup Automated Insights. He also founded and runs startup network ExitEvent, consulting marketplace Intrepid Company, and the Intrepid Media writers network (http://IntrepidMedia.com). You can read him athttp://joeprocopio.com and follow him at http://twitter.com/jproco.
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Tags: Chris Heivly, Durham, Joe Procopio, LaunchBox Digital, NC, Triangle Startup Factory restarts
Posted in entrepreneurship, Events, Internet/New Media | Comments Off
Friday, January 6th, 2012
By Joe Procopio
Joe Procopio I’ll start off 2012 with two disclaimers.
One: Apologies to you Mayan calendar believers, I didn’t mean to alarm you with the title. 2012 won’t be the year that random Durham entrepreneurs spontaneously combust – although that could happen, it’s highly unlikely. I’ll make it up to you by not making an easy joke at your expense.
Two: I’ll be honest with you. I don’t know what’s going to happen to the RTP Startup Ecosystem this year. I’ve seen some crazy stuff in my time here. For all I know, Durham could become the food truck capital of the world, pushing technology, bio, and gaming aside, and prompting food truck tourism and a Food Truck Alley along Jackie Robinson drive.
For all I know.
But I can tell you this. What happens in the oh-twelve is going to build off of what happened in 2011. And if you have to put a single word on what the RTP did to justify its position in the startup universe relative to Silicon Valley, New York, Boulder, etc., that word would be: Organization.
Note that it’s not: Money. That’s what 2012 needs to be about.
In 2011, the RTP startup ecosystem finally took it upon itself to connect its various garages, coffee shops, and secret evil lairs in an effort to combine strengths, learn from one another, and sort out who is who and who is working on what. It was 99% a grass roots effort, which is good, in that it was very inclusive, but not so good, in the sense that the movement is still pretty underpowered. All in all, it was a measurable jump-start, but there’s a lot left to do.
So let’s take a look back over the year that was and make some assumptions about the year that is.
Hey! I’ve got an idea! Let’s do this via a collection of 2011 highlights from my column.
At least it’s not a top 10 list. Happy New Year.
Doing It Right
Several RTP companies landed major funding in 2011. Having walked that walk as part of the management team of Automated Insights/StatSheet (another disclosure), I can tell you that raising money last year wasn’t easy. But that also means that the companies that did receive funds are solid.
In Rabid Wolverines: Why Argyle Social is the Test Case for Durham 2.0, I talked about the aggressive, confident approach of Argyle and Eric Boggs, a refreshing attitude as Durham 2.0 started to spring up.
The Underground Got Relevant
Then in July, I sat down with James Avery and came out the other side with Adzerk’s No-BS Approach Results in $650K. Adzerk was proving the Durham startup thesis, founded by pivoting an existing business in RTP, moving into American Underground, taking advantage of the support groups springing up throughout the area, and ultimately running the gauntlet of both local and national VC raises. Successfully, as it turned out.
Launch Party? How About Launch Festival
Later that same month, I told you about a product launch that turned into an old-school dot-com style party in Bringing Sexy Back: Why deja Fest Is More Than a Launch Party. deja mi’s founder Justin Miller organized (there’s that word again) a two-day, 26-band event to prove out his venue-based media sharing application before it got the live customer treatment at the Hopscotch Festival in September.
All Work and No Play
By the way, those three companies were in attendance, along with about a dozen others, at Pongageddon: The RTP Startup Ecosystem Goes Rogue in March, a day of pizza, beer, and local startups competing for a ping-pong trophy hosted by StatSheet. This was one of the first formal get-togethers of some of the local entrepreneurs, but it would definitely not be the last.
The Graduating Class
But 2011 wasn’t just about the established and funded. In December, I got the chance to judge a UNC-hosted startup event and wrote about Ten Promising Rookie Startups from the Carolina Challenge. This included $1000 winner (and established though not funded) YardSprout and 47 other startups, most of whom I had not heard of before that night but will keep an eye on this year.
So yeah, that was 2011, but that was just the stuff I wrote about startups, and those few companies I got to are just the tip of the iceberg that is the 200+ tech startups in RTP. In a future installment, I’ll reminisce about the explosion of support organizations and how even those organizations got more organized.
Joe Procopio heads up product engineering for automated content startup Automated Insights. He also founded and runs startup network ExitEvent, consulting marketplace Intrepid Company, and the Intrepid Media writers network (http://IntrepidMedia.com). You can read him at http://joeprocopio.com and follow him at http://twitter.com/jproco.
Tags: Argyle Social, Carolina Challenge, Durham, Joe Procopio, Launch Party, NC, Pongageddon, Research Triangle, startup ecosystem in the RTP
Posted in Carolinas, Columns, entrepreneurship, Events, Internet/New Media, IT, North Carolina | Comments Off
Monday, December 12th, 2011
 Artist's rendering of the American Underground space The technology scene moves fast, but which innovations and trends have the staying power to change the way we live? Startup CEOs at Durham, North Carolina’s American Underground weigh in on the question below.
Gaming Transforms Learning – Jason Massey, Sustainable Industrial Solutions
“In 2012, we’ll see a focus on technology driving breakthroughs in our educational process…from early childhood development to college. That will range from early intervention for learning disabilities to the college textbook racket going the way of the dodo. For evidence, just look to Chegg or Kno on iPads
Technology, tools and models developed around the explosion of online gaming with companies like Zynga, the power of social networks like Facebook and the time/location shifting tutorials of Khan Academy are creating opportunities for highly scalable but highly personalized educational experiences.
We are seeing amazing breakthroughs in understanding the mind and learning patterns.
Now, we can leverage the engagement and stickiness of online games to achieve a ‘game-ification’ of the learning process that will allow for more meaningful, measurable successes. Great North Carolina companies like Lexercise are tackling dyslexia via online technologies.”
Trends in “behavior modification” via online games and experiences have the ability to transform our diets, smoking habits and treat our learning disabilities…go figure! Once a “bubble technology” deemed a “time waster,” these platforms will transform our educational experience.”
Blazing Access Everywhere – Keval Mehta, Jaargon
“LTE (Long Term Evolution) will revolutionize the next few years. Remember how great wireless was the first time you experienced it? You could take your laptop anywhere you wanted, except too far outside. LTE will allow you to finally stay connected anywhere you are with blazing speed.
LTE will disrupt broadband, cable, satellite and the way media is consumed. We will use LTE to tether internet to our cars and even homes, which will replace our broadband subscription.
Video and audio can be streamed without skipping and new heavy bandwidth applications can be created to push the limit of high speed connections.
Buffering would be a thing of the past. LTE would allow content developers to create even richer mobile and web applications that take advantage of this higher bandwidth user access.
For example, a user could download a Blu-Ray DVD in a few minutes at the airport before taking off on a flight. Most importantly, it will open up possibilities for entrepreneurs to create new ideas that may have not been feasible due to bandwidth constraints in the past.
Verizon and other providers are spending heavily and betting that LTE will be the disruptor that they expect it to be. Get ready to get on the autobahn of informational superhighways! Hope your battery can keep up.
De-Centralization Opens Up Innovation – Nick Jordan, Smashing Boxes
“De-centralization of information will be an important result we will hopefully see in the next three to five years as a result of large organizations embracing new technology and thus opening many more channels for people to use to communicate and contribute.
Savvy users have already embraced news ways in which to consume and create content , through hardware innovation like smart phones and tablets, and the platforms that are used to distribute content like Twitter and Facebook.
What we will see in the near future is more adoption of these trends from habitual laggards such as government and politics. Technology provides us the ability to learn about the issues, take action, be educated, and know that what we do and think matters.
I hope that politicians and government bodies embrace the possibilities for mass input on a large scale.
When they do, our country will see greater participation in public life, which will lead to more innovation, more dialogue, more accountability, and eventually a more prosperous nation and economy. Imagine the possibilities!”
Tags: American Tobacco Campus, American Underground, De-Centralization, digital access everywhere, Durham, gaming transforms learning, Jaargon, Jason Massey Sustainable Industrial Solutions, Keval Mehta, NC, Nick Jordan, Smashing Boxes
Posted in Internet/New Media, IT | Comments Off
Tuesday, November 15th, 2011
Joe Procopio By Joe Procopio
It’s always good to get a second chance.
Ask anyone involved in the startup game and they’ll tell you: Part of the makeup of a great entrepreneur is the ability to deal with failure. This ability usually comes, oddly enough, with actually having failed, at least once, on the way to success. It’s a conundrum of the game.
The North Carolina Research Triangle had an accelerator, very recently, and it was successful, and it closed up shop, which caused a lot of disappointment and heartbreak within the startup community. But it’s important to note that while Groundwork Labs will fill the void left by Launchbox in the American Underground in Durham, it’s not a replacement.
It’s something new, with new players, a new mission, and a new vision.
And the fact that the RTP gets another shot with the acceleration concept, that’s, well, lucky, to say the least.
How It Works
Groundwork Labs, much like your traditional accelerator, will select promising startups for a three month session and load them up with the standard foundational elements: space, advice, connections, mentoring, and the all-important $20,000 in walking around money.
They’re starting quickly out of the gate, Spring 2012, which means you should get your application in yesterday. They expect to work with between five and seven startups per session and run at least one and hopefully two sessions per year.
I actually got wind of the Groundwork Labs news about a week ago, but I had been sworn to secrecy. I’m not sure why they were so worried. I’m not that kind of journalist. I’m the other kind. The lazy kind.
Official word broke yesterday afternoon, which happened to be just hours before the monthly ExitEvent social I host for area entrepreneurs, which happened to coincide with the TechJournal Deck Party, in Raleigh, which happened to fall on the eve of Internet Summit 2011 at the Raleigh Convention Center, resulting in a Catalina Wine Mixer of startup tech marketing investor type people in one place. So I had access to a lot of opinion. Others I got to via emails. Disclaimer: There was no free beer involved in the solicitation of opinion.
And overall the opinion is very, very hopeful.
What Do You Think?
“Love it,” says iContact’s Aaron Houghton, “Durham deserves it and many passionate entrepreneurs will benefit from it.”
“Launchbox proved that having a local incubator is important to the entrepreneurial ecosystem,” says Robbie Allen, CEO of Automated Insights. “It really helps raise the profile of all startups in the area.”
James Avery, founder of Adzerk and a very passionate voice when Launchbox closed up shop is, well, excited again. “I am thrilled to see that Durham will once again host an accelerator. I love that John Austin is involved as I think he has done a great job with Joystick so far.”
John Who?
John Austin, Director of Joystick Labs, will also head the Groundwork effort. Before any of the gamers freak out, nothing is going to happen to Joystick. It will continue to operate independently, though it does get a boost in efficiency of shared resources. Joystick will get its next semester underway this summer, and the two efforts will continue to operate in leapfrog fashion.
I got a chance to sit down with John again yesterday. We hadn’t really caught up since he took the helm of Joystick right before this year’s East Coast Game Conference.
The two players in Groundwork Labs, Capitol Broadcasting and NC IDEA are very excited about it, according to Austin. There will be synergy between the entities with resources obviously coming from the Underground, as well as the possibility that some of the startups chosen for Groundwork will come from NC IDEA – even though there will be separation in the process, with two separate application programs, etc.
NC IDEA, the grant program that has a symbiotic relationship with VC firm Idea Fund Partners, and another organization I got to dig down into recently, is another positive. Beyond being the region’s best kept secret for early stage entrepreneurs, they’re entire mission is to aid the area in terms of building up a successful, thriving, early-stage ecosystem.
“I think this is an important piece of the puzzle for building a stronger entrepreneurial ecosystem in North Carolina,” says Lister Delgado, Founder and General Partner at Idea Fund Partners.
“It is another way to help attract entrepreneurial talent to the state, and to keep the resident talent here. Besides the money and the assistance that an accelerator can provide to the entrepreneurs participating, an accelerator is a great marketing tool for the community. That is why we are excited to be involved.”
Two Types of Investment
Austin backs this up, and notes that NC IDEA and Capitol Broadcasting, who owns and operates the American Tobacco Campus, have split the infrastructure costs from the investment in the companies. This model is much like how Joystick operates. The investors see the investment in the infrastructure of Joystick as an investment in the entrepreneurial community. Not a donation, per se, but with an expectation for a different kind of return.
This is the critical factor in the potential success of Groundwork. Capitol Broadcasting has a business interest in seeing it succeed, through the American Underground and several other initiatives they have operating in the startup ecosystem. As for NC IDEA, early-stage success here is what their mission is built upon. Groundwork is almost like an expansion of their program, a runway off of the grant money, or even just the runway when the money isn’t a critical factor.
This vested interest, skin in the game, if you will, from the funding parties, is designed to give Groundwork enough time to decide whether or not the accelerator will work. That, of course, is up to the companies selected, and in some sense the rest of here in the area already hard at work at making the region stick as an entrepreneurial hub.
So in that sense, Groundwork Labs is another good sign. Second chances are hard to come by, so you’ve got to jump on the opportunity when they do.
Zack Mansfield, VP at Square 1 Bank and manager of their startup assistance program Square Roots, sums it up nicely. “It’s exciting to see a new accelerator for a lot of reasons but the most significant is that if this region is serious about becoming a top hub for startups, we need more of just about everything – more capital, more entrepreneurs, and more people in the ecosystem supporting new ventures to help them grow.”
Joe Procopio heads up product engineering for tech media startup Automated Insights (formerly StatSheet). He also owns consulting firm Intrepid Company and creative network Intrepid Media and runs the startup social ExitEvent. Joe can be reached via Twitter @jprocoand read at joeprocopio.com.
Tags: Aaron Houghton, Adzerk, American Underground, Automated Insights, Capitol Broadcasting, Deck Party, Durham, East Coast Game Conference, Exit Event, Groundwork Labs, icontact, Internet Summit, Joe Procopio, John Austin, Joystick Labs, LaunchBox, NC, NC IDEA, Raleigh, Research Triangle, StatSheet
Posted in Columns, entrepreneurship, games, Internet/New Media, IT, Viewpoint | Comments Off
Monday, September 12th, 2011
 DURHAM, NC -The company that may put at least some journalists out of work, StatSheet, which sells real-time content automation, has raised a $4 million round of funding led by Court Square Ventures and OCA Ventures, with participation from IDEA Fund Partners and other existing investors.
In conjunction, the company changed its name to Automated Insights to reflect the broad applicability of its innovative technology to data-intensive verticals beyond sports where high content generation costs can make comprehensive coverage prohibitively expensive. The company’s sports offerings will continue to grow under the StatSheet brand.
“We believe this new corporate branding better reflects the long-term potential of our company, and underscores the value of our technology to any vertical with large amounts of structured data,” said Robbie Allen, the company’s CEO and founder.
Automated Insights’ technology transforms vast amounts of raw data into compelling narrative content and powerful visualizations. The content is written entirely by software and can be formatted as headlines, summaries, and long-form articles. In addition, the content can be published cost-effectively at just about any scale via the web, mobile applications, and all types of social media.
“Our technology has worked extremely well with sports, but it is also well suited to verticals such as finance, real estate and weather, or even sales productivity and business intelligence applications. In essence, our technology humanizes big data by automating knowledge and insight so the new name is a perfect fit” added Allen.
Automated Insights’ technology can be seen in action in its StatSheet sports content network. StatSheet currently powers fully-automated, real-time coverage of all 375 Major League Baseball (MLB) and NCAA Division I College Basketball teams via dynamically updated team-centric websites, iPhone and Android applications, Facebook pages, Twitter accounts and e-mail newsletters. In September, the company will also launch team-centric sites and mobile apps for all 32 NFL and 244 NCAA Division I College Football teams.
“Automated Insights is revolutionizing the creation of compelling high-quality content and they have proven they can do it at scale through their StatSheet sports content network,” commented Randy Castleman, General Partner with Court Square Ventures. “We are excited to help them continue to grow their sports coverage and apply the technology to new verticals.
“We are thrilled to team up with such a strong management team and experienced investors,” noted Jim Dugan, CEO and Managing Partner of OCA Ventures. “We believe the timing is ideal for Automated Insights’ highly scalable content development solutions.”
Tags: Automated Insights, company name change, content automation, Court Square Ventures, Durham, financing, Idea Fund Partners, NC, OCA VEntures, StatSheet
Posted in Carolinas, Internet/New Media, Money, North Carolina | Comments Off
Tuesday, August 23rd, 2011
 DURHAM, NC – Thirteen companies were selected to participate in The Durham, NC, Bull City Stampede 2.0, including companies from Washington, D.C., Durham, Raleigh, Chapel Hill and Morrisville.
The Stampede, which runs from Sept. 16 to Nov.18, offers 60 days of completely furnished, free space at 201 W. Main St., a Self-Help building. Participating companies will have access to technical assistance from startup experts as well as opportunities to network with founders of successful Durham startups.
This is the second time this year that the Stampede has been offered to startup companies. The Stampede is part of the Chamber’s broader economic development strategy focused on job creation through business recruitment and retention, workforce development, and startup growth.
Fifty-five startups from across the southeast and North Carolina applied for the Stampede. Applications were received from companies in Georgia and Connecticut as well as from cities such as Washington, D.C., Charlotte, and Wilmington. Concepts ranged from technology and software to cleantech and social entrepreneurship.
The companies that were not selected for the Stampede have already been connected to the many business resources available in Durham such as Bull City Forward, N.C. Institute for Minority Economic Development, Durham Technical Community College Small Business Center, CED, LaunchBox Digital, Joystick Labs, and the Small Business and Technical Development Center.
“This group of participants builds on the economic clusters and strengths of the Triangle,” said Klein. “We have companies in the cleantech and sustainability space, companies in technology and media as well as unique product concepts. These startups are all eager to grow and scale in North Carolina.”
Company descriptions are listed below:
- CityFabric: CityFabric is a civic-minded design and apparel company set out to inspire people to talk about their place.
- CleanHatch: (http://cleanhatch.com/) CleanHatch serves as the premier matchmaker for clean tech and renewable energy projects, leveraging a web-based clearinghouse platform to make it easy for projects to find the capital, developers, and incentives they need to launch quickly and efficiently.
- DiscoverLit: DiscoverLit provides on-the-go readers with an engaging, innovative experience in literature.
- GreenSky Wind Systems: (http://www.greensky-windsystems.com/) GreenSky Wind Systems delivers innovative, efficient and silent wind turbine solutions for commercial facilities dedicated to our planet.
- iBuzzn: iBuzzn is a software platform designed to disrupt the restaurant industry by introducing a customer focused mobile application that will enhance the overall dining experience.
- MotiveLogic: Constant Coaching™ is the culture created by the use of High Octane Business Performance Dashboards™ from MotiveLogic to achieve maximum efficiency and productivity from automobile dealer service departments.
- Organic Transit: (http://www.organictransit.com/) Organic Transit designs pedal/solar Hybrid Vehicles that produce zero carbon, fill the space between bicycles and cars and are intended for commuting and local deliveries.
- Pluribus: Pluribus makes it safer and easier to shop online with your debit or credit card.
- RxAnalytics: RxAnalytics is developing a web and mobile tool that will identify critical drivers of performance in individual athletes as well as weaknesses and biases, allowing the athlete to train smarter and maximize performance.
- Sqord: Sqord is a social gaming website where kid users can earn points and rewards through real-world play.Vybee.com: (www.vybee.com) Vybee.com is a way to find, share, and keep up with what’s going on in your local interests.
- Zeek: Zeek has digitized the coupon book, providing non-profits, schools, churches, and groups everywhere with a 21st century fundraising solution, all accessible from a smart phone.
For additional information and updates about the Stampede, go to
www.startupstampede.com or follow the Stampede on Twitter @StartupStampede.
Tags: Bull City Stampede 2.0, CityFabric, CleanHatch, DiscoverLit, Durham, GreenSky Wind Systems, iBuzzn, MotiveLogic, NC, Organic Transit, RxAnalytics, Squord, Zeek
Posted in Carolinas, Economic Development, Events, North Carolina | Comments Off
Monday, July 18th, 2011
Joe Procopio Adzerk Founder and CEO James Avery is the kind of guy you just sort of immediately feel a kinship with. It’s not because he’s filthy rich, although he is, or because he’s quick to give you a sticker, he’s got tons of them, it’s the fact that he’s a straight talker who always happens to know exactly what he’s talking about.
Example: At the recent Tech Jobs Under the Big Top job fair, when a dozen RTP startups got up on stage to present to roughly 250 job seekers, Avery showed a minute or two of the Startup Guys video, which then faded to black with the caption:
“Not all startups are full of ****.”
What Did He Just Say?
Huge laugh from the crowd, but this is exactly what Avery is about. It’s a joke, right? Or is it? I dig that. Plus he hired someone from that event, so obviously at least one other person dug it as well.
I feel a kinship with Avery because we took a similar path. We both got out of the corporate technology world and started one-person consulting practices that grew over time into larger and more successful consulting practices. Neither of us were ultimately happy, no wait, neither of us were fulfilled. Something was missing.
It was the startup thing.
So while I started shifting the focus of my practice to the startup world, Avery went out and started another company.
Enter Adzerk
More specifically, he bought an ad network in 2007 which was bare bones, and he replaced it and built on top of it. In the beginning, he was only using it for himself, but then he started another vertical ad network and modified the software to run both of them, The Lounge and Ruby Row.
When he tried to start a third ad network, he realized that the software itself was a more compelling play than creating and running ad networks.
Now, there’s a long history of companies in the ad-tech industry trying to run networks and sell software at the same time, and usually the software part ends up becoming the ugly stepchild. You just can’t do both and have both be successful. So in December 2010, he sold off one of the ad networks and focused on the stepchild.
The RTP Startup Playbook
An office in American Underground came first. And when the Underground announced via Twitter that Adzerk was moving in, Avery got a tweet asking if he was hiring.
Now he had space, an engineer, and a little bit of runway. So when he saw how much of an impact those dollars made, he knew he needed more.
He ran the gamut of the RTP support structure, including the aforementioned job fair, the CED Venture Conference (although he knew everyone there), TechMedia’s Internet Summit (where he met the guys from Argyle, Spring Metrics, and JobKatch), Launch Durham (although he launched at Calacanis’ LAUNCH Conference), and even though he was too far along for Startup Stampede or Launchbox, he eventually hired three former Launchboxers.
Elevator Pitch
Most every ad server has two fundamental problems. It’s likely built on 90s technology and it’s probably run by a big media company.
Adzerk is independent and based on current generation technology. And they innovate. Right now they have what Avery calls an “incrementally better ad server.” It’s faster, the ads get served asynchronously, stats are real time, all cloud based, scales quickly.
Some publishers care a lot about this, others don’t. So Adzerk has carved out a market where those features are differentiators. But Avery knows that having an “incrementally better” mousetrap is not enough.
So Adzerk is going after bigger game. They’re bucking the traditional model – enterprise software, contracts, etc. Thus, the pitch becomes “let’s change the way ad-serving works.”
Good pitch!
Eight months go by. $650K seed round.
This is where the story gets a little funny, because out of that $650K Avery finished raising this month, exactly $25,000, or just a little under 4%, came from in-state.
Avery says he was naïve as every other first-time fundraiser, figuring he’d go to the people he knew, find the right ones at the right time, and get just what he needed to get to the next level. It took about a month before he realized he needed to talk to anyone and everyone who would pick up the phone. So he did.
That says two things. But neither of them is a soap-boxy “Local investors need to invest in more local companies!”
Santa Claus. What?
I’ve got a great analogy for this. This is like asking Santa Claus to quit bringing a bunch of presents every Christmas and instead just show up with one present on the 25th of each month.
I know. That one came to me in a traffic jam.
The frustrating thing about the RTP investment region is that we’ve got a bunch of investors and a bunch of startups but 95% of the time the goals of one do not match the intentions of the other, and vice versa.
When Avery and I discussed this, the lament wasn’t “Man, it would be cool if the local VCs would start investing their big bucks in early stage companies,” it was more like “Man, it would be cool if we had some apparatus here by which several early-stage companies could raise $100K on a standard term sheet.”
That’s the first thing. The second thing is a lot more hopeful.
Startup Investing Enters the 2000s
Adzerk’s path to funding is not unique. There have been a number of investments here lately that have involved money from the west coast, New York, pretty much everywhere, and it’s getting easier. During his fundraise, Avery left the area twice, and one of those trips was to shake hands with the lead before they signed the term sheet.
It’s a good tale, a no-BS founder product company with customers and revenue operates within a robustly-evolving support system to land seed-stage money and swing for the fences
Rinse and repeat, people.
Joe Procopio heads up product engineering for sports media startup StatSheet . He also owns consulting firm Intrepid Company (http://IntrepidCompany.com) and creative network Intrepid Media and runs the startup social ExitEvent (http://ExitEvent.com). Joe can be reached via Twitter @jproco and read at joeprocopio.com.
Tags: Adzerk, Adzerk seed round, Amercian Underground, CED Venture Conference, Durham, Internet Summit, James Avery, Joe Procopio, NC, RTP, RTP Startup Playbook, Startup Guys, Startups, Tech Jobs Under the Big Top
Posted in Carolinas, Columns, Events, Internet/New Media, IT, North Carolina, Tech Culture, TechLife | 2 Comments »
Friday, July 15th, 2011
 DURHAM, NC - Joystick Labs has named the first team who will participate in its 2011 Summer Underground program.
wefiends, a Los Angeles based developer founded by brothers Nick and Kevin Barrios, develop fun, creative, and original games that anyone can enjoy. They have just completed Sushi Boy Thunder, a free to play, lightning-fast arcade dodger for iPhone and iPad that features incredible action and fun at supersonic speed, unlockable outfits and characters, tilt and tap control, and an original soundtrack, and Game Center Leaderboards so players can compete with friends.
As part of Joystick Labs, wefiends will develop “We Make Movies”, an iOS game that places gamers in the role of Hollywood producer working against the deadline and budget to create the best movies. Players create their movie poster, use their time management skills to create the best movie, see the audience reaction – and share their results and compete against their friends.
Joystick Labs, founded in 2010, provides startup video game entrepreneurs a unique mix of early-stage seed funding, mentorship, services, and networking. Teams that participated in the Fall 2010 program will begin shipping their titles this summer.
“We were looking to become part of an accelerator program and were excited to find a program specifically for game studios,” said Nick Barrios, wefiends founder, “The opportunities and resources that Joystick provides will accelerate the development of our studio and our next title.”
Joystick has also announced that applications are once again open. Game developers can apply online now, and selected teams receive funding, mentorship and access to technology, office space and networking opportunities.
Applications are accepted on a rolling basis, and Joystick Labs looks for teams who possess an entrepreneurial spirit and passion for their game idea. The best game concepts will be innovative and present an opportunity for commercial success.
For more information or to apply, please visit www.joysticklabs.com.
Tags: Durham, game development accelerator, Joystick Labs, Los Angeles, NC, Sushi Boy Thunder, We make movies, wefiends
Posted in Carolinas, games, Internet/New Media, North Carolina | Comments Off
Thursday, July 7th, 2011
 The success of mobile apps is one way to gauge the rapid growth of mobile devices used for work and play as well as communication. Apple Inc. says that 15 billion apps have been downloaded from its App Store by the more than 200 million iPhone, iPad and iPod touch users worldwide. The App Store offers more than 425,000 apps and developers have created an array of over 100,000 native iPad apps.
“In just three years, the App Store has grown to become the most exciting and successful software marketplace the world has ever seen,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “Thank you to all of our amazing developers who have filled it with over 425,000 of the coolest apps and to our over 200 million iOS users for surpassing 15 billion downloads.”
“We sparked musical magic when iPhone users experienced Ocarina three years ago,” said Dr. Ge Wang, a Smule co-founder and assistant professor at Stanford’s Center for Computer Research in Music and Acoustics. “And now with iPad, we’ve created the Magic Piano and Magic Fiddle apps. Who could’ve dreamt an iPad would make its way into the San Francisco Symphony?”
“iPad provides us with an unparalleled mobile device for creating gorgeous, immersive games,” said Mark Rein, vice president and co-founder of Epic Games. “Infinity Blade has been a runaway hit with customers around the world and we couldn’t be more excited about our success on iOS devices.”
“We’re bringing Martha Stewart, Angelina Ballerina, Sesame Street and many more of the world’s most popular books and magazines to iPad,” said Nicholas Callaway, CEO of Callaway Digital Arts. “We knew the iPad was going to be a revolutionary storytelling device, but never could have anticipated it would become so popular, so quickly.”
More than 15 billion apps have been downloaded from the App Store and more than 425,000 apps are available, including more than 100,000 native iPad apps, to consumers in 90 countries.
Users of the more than 200 million iOS devices around the world can choose from an incredible range of apps in 20 categories, including games, business, news, education, sports, health, reference and travel. Apple has paid developers over $2.5 billion to date.
The success of Google’s Android smartphone operating system has spawned an increasing flood of apps for those devices as well and has placed Durham, NC-based Appia, with its app store, in an enviable position. The company raised $10 million from Venrock in March and was one of the few Southeast companies on The Wall Street Journal’s “Next Big Thing” list this year.
Tags: Android, Appia, Apple app store, Apple Inc., CAllaway Digital Arts, Dr. Ge Wang, Durham, Epic Games, Google, Infinity Blade, iPad, iPhone, iPod Touch, Mark Rein, mobile apps, NC, Nicholas Callaway, Philip Schiller, Smule, Stanford Center for Computer Research
Posted in Hardware, Internet/New Media, IT, Mobile, Telecommunications | Comments Off
Friday, June 24th, 2011
 A new study released by G Data Software finds that Americans’ knowledge of Internet security is scattered with misconceptions and fallacies that expose PC users to a slew of online threats. The G Data Security Survey 2011 entitled, “How do users assess threats on the Internet?,” surveyed nearly 16,000 PC users in 11 countries, including more than 5,500 respondents in the United States.
The international report found that Americans are dangerously out-of-touch with the sophistication of today’s threat landscape. When asked if they are more wary of being exposed to malware on porn sites or horseback riding sites, more than 40% of Americans said porn sites.
However, in reality, hobby and amateur sites are far easier to attack than adult sites. Hobby sites are also much slower in removing malware — and with visitors not being careful on these sites — they pose a greater infection risk than adult sites, where visitors expect danger.
When it comes to how malware impacts computers, consumer expectations overwhelmingly haven’t kept pace with today’s stealthy threats. Nearly all Americans reported that contaminated computers would show signs of infection through slowdowns, crashes, or pop-ups. Yet, today’s malware is operated by professionals looking to surreptitiously steal sensitive information, without risking detection.
The survey includes several other notable findings, including:
- 89% of Americans report using security software to protect their PCs, with 46% using paid software and 42.7% relying on free versions. The U.K. had the highest number of users with a security solution installed (94%), while Russia had the lowest (83%).
- 54% of Americans believe that most malware is spread through email, but in today’s world the biggest threat is from malicious links – spread not only via email, but also instant message, social networks, and other social channels. And yet, more than half of Americans click on links in social networks. Only 49.4% do not click on any links on social networks.
- No free antivirus product currently offers full-suite protection (including anti-spam, web filters, firewalls, etc), yet 82% of Americans believe that free software is as good as paid antivirus software.
- Among those Americans who use antivirus software, nearly 60% believe they have a full-suite of protection – however, only 46% use paid software. Because only paid software has full-suite protection, many PC users wrongly believe they are fully-protected. There’s a domino effect at play here, for example, if these users spread links that they believe have been scanned, but their free antivirus solution doesn’t actually have that capability.
- Nearly 53% of Americans wrongly believe that torrent and peer-to-peer sites are the largest source of malware, when as mentioned, malicious websites reign here.
- Overall, Americans stack closely to other surveyed nations. Germans were the best informed about the threats lurking online, while Russian respondents believed the most security myths.
The full G Data 2011 Security Survey, including country-by-country comparisons, can be found here: G Data Software’s Security Survey 2011: How do users assess threats on the Internet?
Tags: cybersecurity, dangerous links, Durham, email, G Data Software, instant messaging, Internet myths expose users to threats, malicious links, malware, NC, security software, social channels, social networks, study, which sites are easiest to attack
Posted in Carolinas, Facebook, Internet/New Media, IT, North Carolina, Security, social media, Studies, surveys, reports | Comments Off
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