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Archive for April, 2010

Vovici near close on $6.3M funding for customer loyalty tech

Thursday, April 22nd, 2010

vovici logoDULLES, VA – Vovici, a company selling online survey software for Enterprise feedback management, has raised $5.7 million of a targeted $6.3 million in equity from Austin Ventures and the Mayfield Fund, according to a regulatory filing.

We profiled Vovici (pronounced voh-VEE-see) here back in 2008 (see: Vovici: survey tech gives voice to customers, staff).

The company raised a $10 million B round from Mayfield and Austin in the spring of 2008. At that time, Rajeev Batra, principal at Mayfield Fund said, Vovici is the category creator and leader in the growing Online Survey and Enterprise Feedback Management market.”

Vovici sells online survey software, survey templates, analytics expertise and research services.

Customers include Cisco, General Motors, American Express, UPS, and many other top Fortune 500 companies.

Companies use the products to help them better identify employee satisfaction, market research and customer satisfaction.

We see these types of retail data gathering and analytics companies gaining more and more traction as brick and mortar operations of all types fight for advantage in a down economy and against Internet competition.

Vovici reported its first quarter 2010 results today. New SaaS sales for the quarter increased approximately 40 percent and sales to existing customers rose 156 percent over Q1 2009, representing the largest first quarter of sales revenue in company history, it said.

The company said it added 50 new customers in the quarter. New customers include: Amplify Federal Credit Union, Block de Ideas, Bryant and Stratton College, Department of Homeland Security, Hewitt Associates, LiveOffice, Ogilvy and Mather Worldwide, Revelry Brands, Sematech, Sophos, and Yellowbook.

It recently won awards from SmartCEO (Future 50) and CRM Service Award (One to Watch).

The company came together when Dean Wiltse, president and CEO of Greenfield Online  before taking the helm at Vovici, got together with Austin Ventures and acquired Web survey company Perseus and merged it with another Web survey company in 2006. Austin Ventures provided the buyout funds, essentially the new company’s A round.

Previously on TechJournal South:

Vovici grabs $10M B round for online survey software

www.vovici.com

CED Venture 2010: frozen VC market melting

Wednesday, April 21st, 2010

By Joe Procopio

Joe Procopio

Joe Procopio

First of all, welcome to Pinehurst, my second time here for the CED Venture conference. Attendance is up, 550+ registered attendees which is 100+ more than last year, so that’s fantastic.

First take is there is a melt-up going on in the VC market overall, and that’s most important to the early-stagers, who have been feeling frozen for some time and as recently as SEVC back in February.

Most of the panelists for “Has the Game Changed for Attracting Venture Capital?” were investors in early stage technology companies, and they were Joe Silver from DLA Piper, Dana Callow from Boston Millennia, Noel Fenton from Trinity Ventures, Todd Forrest from Hummer Winblad, and the refreshingly open and funny Brad Feld from the Foundry Group. I dug his vibe.

The ash is clearing, so here’s your climate update.

A return to IT

Last year, the focus was more on clean tech and life sciences, and while that will still be the case for 2010, there may be a return to software, web, and mobile.

This may have something to do with the fact that there’s never been a lower barrier to entry for develop a product to get out to the masses, thanks to SaaS, open source, and the cloud, although Feld had a cautionary point that the aggregate costs to scale remain the same, which is expensive. Capital efficiency is a mindset, agreed, and it’s in fact a way of life.

The focus is still on markets at $500 million to $1 billion, and M&A is still obviously the way to exit, even with the IPO market beginning to thaw quite nicely (8 or 9 VC backed IPOs in 2009, and 40+ in the pipeline for 2010).

One of the investment themes I found interesting was that of human computer interaction, a belief that in 20 years the mouse and keyboard will become obsolete (broader than that, but you get it). A derivative play on the iPhone when you think about it, and a smart way to cut across several technologies and markets.

Some things I’ve heard before and truly believe in: 1) You can find great companies if you can find great CEOs. 2) Choose your investors wisely. 3) There’s an emergence of more formalized angel groups.

Feld also made a great point about how long it takes to build a sustainable entrepreneurial community. The SV has been at it for 50+ years, Boston 40+, and so on. In the early years, a down cycle can wipe that community out. Let me use that as a call to arms to get involved with our CEDs, our TSF/Launchbox Digitals, and our ExitEvents!.

Finally, there was some interesting talk at the end about early liquidation events for founders – the pros and cons, when it can happen, how it can happen, and the need for openness and honesty when entrepreneurs and investors work together. May have some more thoughts on this down the road, because like any good idea it’s disruptive and scary.

Joe Procopio is the founder of Intrepid Company, a technical and management consulting firm (intrepidcompany.com) that has spun out publishing company/creative network Intrepid Media (intrepidmedia.com) and digital incubator ExitEvent (exitevent.com). He’s currently wearing a suit, but ignore that, he’s all Paul Westerberg underneath. He can be reached at joe@intrepidcompany.com.

Hyperbranch grabs $2.1M funding for wound healing tech

Wednesday, April 21st, 2010

DURHAM, NC – Hyperbranch Medical Technologies Inc., a specialty medical device company that develops and markets products primarily for the traumatic or surgically induced wound market, has nabbed $2.1 million in equity financing, according to a regulatory filing.

The company is focused on the development of unique products based on its novel hydrogel technology. It disclosed the funding in a filing with the U.S. Securities and Exchange Commission.

Development work on HyperBranch’s surgical sealant platform has led to the recognition of several novel hydrogel properties that suggest significant utility in a variety of additional clinical applications.

The company has applied for other product approvals in dural closure for brain and spine surgery and for the fixation of mesh during hernia repair. It also plans to introduce products into cardiovascular and MIS surgery.

In March 2009, the company licensed its  OcuSeal Liquid Ocular Bandage to BD Medical, a unit of BD.

OcuSeal is a fully synthetic ocular bandage designed as a temporary protective barrier to provide comfort for post-surgical, post-traumatic, and non-traumatic ocular conditions.

www.hyperbranch.com

More than half of IT workers say they could do the job at home

Wednesday, April 21st, 2010

By Allan Maurer

Randy Stuckless

Randy Stuckless

RESEARCH TRIANGLE, NC & ATLANTA – More than half of information workers (62%) in 36 mid-sized and large cities in the U.S. say they could do their jobs remotely, according to a survey by Microsoft.

Raleigh, NC, which ranked number 2 in the survey of attitudes toward remote working and Atlanta followed closely at number 3.

In Raleigh the survey found that:

•    75 percent of people surveyed believe they could fill their job duties at a remote location.
•    Just under half (47 percent) of those surveyed say their company has a formal policy allowing employees to work remotely.
•    55 percent of people surveyed do not take advantage of a remote working policy.
•    95 percent of those surveyed say privacy will not be compromised when working from home.
•    9.7 days: The average number of days people work from home per month.

In Atlanta, the survey said:

•    69 percent of people surveyed believe they could fill their job duties at a remote location.
•    More than half (51 percent) of those surveyed say their company does not have a formal policy allowing employees to work remotely.
•    56 percent of people surveyed do not take advantage of a remote working policy.
•    91 percent of those surveyed say privacy will not be compromised when working from home.
•    8.7 days: The average number of days people work from home per month.

Even Microsoft resisted at first

Randy Stuckless, Microsoft technology partner advisor, who works remotely, says even MS itself had to overcome some corporate hurdles before remote working became more acceptable in the company.

When Microsoft’s Paul Allen developed cancer and wanted to work from home in the late 1980s, the company said, “No, everyone has to work from the office.” Now, however, about 10 percent of Microsoft’s employees work remotely, “a significant percentage,” says Stuckless.

Now the company sells products that aid working from home.

Stuckless tells us he spends most of his time going up and down the East Coast helping companies build practices with Microsofts’ Unified Communications. Unified Communications  integrates email, voice, instant messaging, conferencing and collaboration in ways that make it more effective to work remotely.

He says Windows 7 operating system features also help people work from home.

“You can make secure direct access connections to a corporate network that makes it as easy for you to access Corporate Web sites and so on as if you were in the office.”

Another feature of Windows 7, he points out, is bit locker, which lets users encrypt and protect computer disc drives, flash memory cards, and more.

Stuckless works from a base in New York with a boss in Raleigh.

He notes that Raleigh ranked near the top in all areas the company surveyed regarding attitudes in remote working.

“It has a highly educated workforce and three major research institutions close by, and the area’s technology sophistication helps people work from home,” he says.

Face to face possible

One problem of remote working that many face is that managers worry about how someone will pick up on the types of cues you might sitting in front of a person in a meeting. The MS Unified Communications voice and video connections can solve that problem “for the price of a $75 high definition camera,” he says.

Still, Stuckless suggests that remote workers “Do have to work overtime to make sure you are an active participant in meetings, be pro-active in reaching out and establishing relationships, and the social aspects.”

Stuckless says he thinks remote working will become much more common as the nature of work itself changes. “More people are working independently. Independent contracting is an expanding form of employment. My boss says he looks around his Raleigh neighborhod and nearly everyone on his block works from home, centered in Raleigh but employed elsewhere.”

We’ve been working remotely for nearly a decade with a brief spell in the offices of North Carolina Magazine (the now defunct NC Chamber business magazine). We found that having an office more advanced than that offered by the company, an increase in production, and the Web’s constant contact options made it work even for that conservative organization.

The advantages are not only to the remote worker, however. Remote working saves energy and wear and tear on roads, decreases traffic congestion, increases productivity, and boosts worker satisfaction.

Threats: groups using opt-in botnets to push agendas

Wednesday, April 21st, 2010

ATLANTA – Cyber criminals and protesters with a cause are increasingly turning to opt-in botnets on social networking sites and with Web 2.0 technologies that pose a growing threat to businesses, says a new report from Atlanta-based Damballa.

Damballa says its solutions identify advanced network threats, terminate criminal activity in real-time and provide remediation guidance, so it has a dog in this hunt, but company is on the forefront of reporting and stopping botnet activity.

Its newest research paper is called “The Opt-in Botnet Generation: Social Networks, Cyber Attacks, Hacktivism and Centrally-Controlled Protesting.”

The paper details the rapid adoption of opt-in botnets within social networking applications and Web 2.0 technologies by cyber criminals and protesters. It explains why anyone would opt-in to a botnet.

It says these tools have become a powerful platform for launching crippling botnet cyber attacks against any type of business or government from anywhere in the world, and Fortune 1000 companies run the risk of becoming unknowing enablers of the attacks.

“Tools and tactics that have proven invaluable for launching political protests around the globe are being reinvented, reoriented, and subsequently attacking non-political targets. Businesses are now in the cyber-protesting cross-hairs of their customers – both past and present,” says the paper’s author, Gunter Ollmann, vice president of research for Damballa.

The paper can be downloaded at Opt-In Botnet Generation.

Report says: Startups hiring, poised for growth

Wednesday, April 21st, 2010

WASHINGTON, DC – Startups hired 16 percent more people in the first quarter this year than in the last quarter of 2009. While the total number of people hired, 13,314,  is not large, it suggests they are poised for growth, says Mark Heesen, National Venture Capital Association president.

NVCA and StartUpHire released the figures, saying growth is on the way in the IT, life sciences and clean tech sectors.

“Despite ongoing economic and market challenges, the venture capital community continues to invest and grow companies that are poised for growth as evidenced by their consistent hiring pace,” said Heesen.

“The start-up company engine continues to churn, serving as a critical source of new jobs and opportunities for thousands of Americans. Our country’s entrepreneurial spirit combined with access to risk capital will continue to drive this economic recovery.”

StartUpHire founder and Grotech Venture partner Steve Fredrick said that venture-backed job growth is actually “perhaps double what StartUphire cureently captures.”

Atlanta’s RentWiki.com books $2.3M funding

Wednesday, April 21st, 2010

rentwiki logoUPDATED – ATLANTA – RentWiki.com, a Website that uses social media to couple rental searches with user information about neighborhoods, has raised a  $2.3 million equity financing from Antares Capital Corp. and other investors.

While the exact amount of the investment was not disclosed by RentWiki, the amount, according to a filing with the U.S. Securities and Exchange Commission, is $2.3 million from four investors.

Founded in March 2008, RentWiki.com launched nationwide in January of 2009.

“We’ve been successfully operating rental and real estate web sites for 13 years,” said Jamie Gallo, CEO of RentWiki.com.

“Our business has reached the point where we have proven the model. Consumers love the social content that Rentwiki offers and clients have embraced our cost effective pay-per-lead model.

“This funding round gives us the opportunity to invest more heavily in the traffic we need to drive more quality leads to our clients as well as expand our consumer content,” said Robert Turnbull, president of RentWiki.com.

www.rentwiki.com

Amazon sues NC to block request for personal data

Tuesday, April 20th, 2010

RALEIGH, NC – Amazon.com has filed a suit to prevent the North Carolina Department of Revenue from learning what state residents bought from the online retailer so they can collect sales taxes on the buys.

Amazon filed the suit in federal court in Seattle Monday. It names NC Revenue Secretary Ken Lay as defendant.

Amazon wants the court to order a halt to the Revenue department’s attempt to secure the information, saying it violates the First Amendment.

No stores or warehouse in state

Amazon does not have a physical presence in North Carolina such as stores or warehouses, so it does not have to collect the sales tax information for the state.

North Carolina passed a controversial law last year requiring out-of-state retailers such as Amazon to collect sales taxes from state residents if the retailer had affiliates in the state, claiming that established the physical presence required for North Carolina to collect sales taxes on purchases.

Amazon dumps NC affiliates

Amazon responded by ending its North Carolina affiliate program, a blow to many Internet startups that need early income to establish a viable business model and obtain further funding.

Amazon, while known for its book and media sales, also offers many other products and some state firms simply moved to other states to continue their business with Amazon.

Threatened with contempt hearings

In March, NC threatened to hold civil contempt hearings if Amazon didn’t provide the names and addresses of NC residents who purchased anything from the company since August 2003.

Amazon contends such disclosure invades the privacy of buyers and violates their First Amendment rights “on a massive scale.”

Amazon says in the suit that its sales are primarily “expressive materials” such as movies, music and books and giving the state information on those purchases could affect buying habits by revealing items that may be personal, sensitive or controversial.

In the suit, Amazon states: “Amazon asserts the privacy and First Amendment rights of itself and of its customers so that Amazon may sell – and customers may read, hear or view – a broad range of popular and unpopular expressive materials with the customers’ private content choices protected from unnecessary government scrutiny,”

Thorny legal issues

We have covered North Carolina’s attempt to collect sales taxes from Amazon in detail in a series of articles.

Pressured by recession-caused budget deficits of disturbing proportions, NC, like many other states, is seeking new revenue from any potentially lucrative possibility. Amazon itself says state residents have made 50 million purchases since August 2003, so the amount in question is far from trivial.

The legal issues are thorny and less clear than either side might wish, but this suit may begin a process of clarification. North Carolina is not the only state trying to collect sales taxes from online retailers.

Many legal authorities think the matter of states collecting sales taxes from online retailers who do not have a physical presence in the state will eventually have to be decided by Congress on a federal level.

We have covered this issue extensively at TechJournal South.

We found entrepreneurs disturbed about not being able to develop crucial early income streams, Tech organizations say the state is singling out the tech sector unfairly and with questionable legal basis, and the state responds it is losing up to $300 million a year.

Previously on TechJournal South:

NC’s “Amazon tax” could backfire

Is North Carolina’s “Amazon tax” all pain and no gain?

North Carolina and other states spar with Web retailers

Amazon terminates NC sales associates

Biodelivery Sciences raising $10 million via direct offering

Tuesday, April 20th, 2010

RALEIGH, NC – BioDelivery Sciences International Inc. (Nasdaq:BDSI), a specialty pharmaceutical company has entered into a definitive securities purchase agreement with a group of select institutional investors to purchase $10 million of its securities in a registered direct offering.

The company uses its proprietary patented drug delivery technologies to develop and commercialize, either on its own or in partnerships with third parties, new applications of proven therapeutics.

BDSI is focusing on developing products to meet unmet patient needs in the areas of pain management and oncology supportive care.

www.bdsi.com

Alimera set for $87M IPO this week

Tuesday, April 20th, 2010

ATLANTA, GA – Alimera Sciences, a company developing prescription eye treatments hopes to raise $87 million in an initial public offering of stock this week.

The company hopes to sell 6 million shares of stock at between $15 and $17 a share. If it prices in the middle of that range, it would have a market cap of slightly more than $87 million. It plans to trade on Nasdaq under the symbol “ALIM.”

Alimera has raised nearly $71 million in venture backing since its founding in June 2003. Investors include Scale Venture Partners, Domain Associates, Intersouth Partners, and Polaris Venture Partners, which all have an 18.44 percent stake. Venrock Associates has a 14.93 percent stake.

Credit Suisse and Citi serve as co-lead underwriters for the company’s IPO.

The company sold two over-the-counter allergy products and an eye lubricant to Bausch & Lomb for $16.7 million.

The company focuses on diseases affecting the lining in the back of the eye, or retina, because these diseases are either not treated pharmacologically or are in need of improved treatments.

It says it is also testing treatments for a type of age-related macular degeneration.

Sandoz buying NC-based Oriel Therapeutics

Tuesday, April 20th, 2010

 

RESEARCH TRIANGLE, NC – Drug giant Sandoz has agreed to acquire North Carolina-based Oriel Therapeutics, which focuses on developing respiratory products with known pathways as generic alternatives to patented drugs for asthma and chronic obstructive pulmonary disease (COPD).

Terms of the buy were not disclosed, but Sandoz says Oriel’s owners may receive additional payments for hitting certain milestones and will be eligible for sales royalties.

The acquisition provides Sandoz with three promising development projects targeting leading medicines in this field.

Regulatory approvals of these medicines, if achieved, would enable Sandoz to increase access to affordable, high-quality therapeutic alternatives for these increasingly prevalent diseases.

Both the increasing market segment for treating these ailments and the fact that about half the current treatments for COPD and asthma are expected to lose patent protection by 2016, made the Oriel acquisition attractive to Sandoz.

aiMatch is ready for digital ad explosion

Tuesday, April 20th, 2010

 

By Allan Maurer

RALEIGH, NC – Online advertising is moving into what AIMatch CEO and co-founder Jeff Wood calls “The second phase,” in which advertisers who normally use traditional media increasingly move online.

AIMach, Wood says, is ideally situated to take advantage of that with its new set of tools aimed at facilitating that move on the part of publishers, ad networks and agencies.

He and co-foudners Ryan Treichler, CVO,  and Guy Taylor, CTO, are all veterans of Accipter, one of the Research Triangle’s biggest software company success stories. It too brought a pioneering online ad technology to market.

It then sold first to CMGI in a deal worth $500 million, again in 2006 to aQuantive, and finally became part of Microsoft Advertising when MS bought aQuantive in 2007.

For more details, see the first part of this story:

AIMatch founders go from startup to Microsoft to startup

Hearing about the pain points

Jeff Wood, CEO, AIMatch

Jeff Wood, CEO, AIMatch

Wood, Treichler and Taylor say they gained insights into the inner workings of the online advertising world all along the way.

From aQuantive, they learned an approach to product development they found effective, paricularly, being pro-active, not re-active in terms of adding features.

At Microsoft, says Treichler, “We had the opportunity to go in and talk to the top publishers in the world. They would tell me all their problems. The problem with Microsoft was that they wouldn’t do anything about it.”

Nevertheless, he says, “I had the opportunity to sit in front of people who could tell me all their pain points from a very high level perspective. That helped give direction to what we did (with AIMatch).”

And, now, for something different

This was the first time the three had the opportunity to build a new technology from the ground up, something that would directly address those pain points.

“It might be easy for people to think we’re doing what we did before,” says Wood. “But we’ve actually taken the equivalent of what publishers would have to get from four different providers and put it into one solution.”

The AIMatch tools, they say, do several things differently. First, they are aimed at helping publishers sell their direct inventory, the ad inventory sold by their own sales people rather than the remenant space available.

The concept, Wood explains, “Is to let the publisher make full use of all the data they may collect and squeeze the most value out of their inventory.”

The publishers, he says, can use the AIMatch business intelligence tools to inspect how their business model is performing and its sales management tools to oversee their sales team.

It allows managers to run simulations to see how change would affect business.

“We built tools for them to take their informationa and their intuition and come up with conclusions,” says Wood.

Talking the right talk

Ryan Treichler

Ryan Treichler, CVO, AIMatch

Another feature of the products, says Treicler, is intended to give online publishers the tools they need to bring advertisers online in ways they are familiar with.

“There’s no doubt that 75 percent of the advertising guys are still not online,” Treichler says. “They want to come online, but they want to come online in ways they’ are familiar with. They want to buy audiences and they want to buy products.

“We’re giving them the tools to talk the way the off-line world does in buying advertising and it’s going to make it easier to sell.”

Wood and Treicler both say that the proliferation of mobile devices, social networking and broadband Internet, all point to exponential growth in the digitial ad space, that “second phase,” Wood talks about.

He says they deliberately held off going to market so the product they developed would be “in front of the market, not behind it.”

“It’s a very exciting time to be here,” says Treicler.

www.aimatch.com

IMIX Americas names Rick Sbordone CEO

Tuesday, April 20th, 2010

STERLING, VA – IMIX Americas Inc., a company selling digital radiography systems to hospitals, clinics, and private practices, has named Rick Sbordone, CEO.

The company says the appointment will enable IMIX Americas to leverage the synergies created by its recent merger with medical radiology systems and sub-systems provider, Arcoma.

Sbordone joins IMIX with a proven track record of success during more than 25 years in the medical technology industry.

He has held senior executive and global business development positions at companies such as Philips Healthcare, Imaging Dynamics Co., Swissray International and, most recently, Edge Medical Devices.

IMIX Americas, located in Sterling, VA, is a leading provider of cassette-free digital radiography systems, including software.

www.imixadr.com

Liquidia adds on to C round bringing total to $25M

Tuesday, April 20th, 2010

RESEARCH TRIANGLE PARK, NC – Liquidia Technologies, a firm developing a nanotechnology-based improved delivery for drugs and vaccines, has added $5 million from PPD Inc. to its C round, bring the total to $25 million.

We reported Liquidia’s initial C round close in January.

Founded in 2004, Liquidia Technologies is developing precisely engineered particles for improved delivery of biological and small molecule therapeutics within the initial fields of vaccines, nucleic acid delivery and inhaled therapeutics.

The ability to control particle design parameters such as size, shape and composition is allowing Liquidia to address critical unmet needs in the prevention and treatment of human disease.

“The vaccines market is one of the fastest growing segments in the industry, and it is an area where PPD has strong laboratory and clinical development expertise,” said David L. Grange, CEO of PPD.

“Liquidia’s novel vaccines and therapeutics have the potential to address a range of diseases, and we believe its PRINT technology offers a unique solution for improving vaccine safety and efficacy.”

PPD, a leading global contract research organization, joins Canaan Partners, New Enterprise Associates, Morningside Venture Investments Limited, Pappas Ventures and Firelake Capital as investors in the Series C round.

Neal Fowler, CEO of Liquidia Technologies said, “The addition of PPD as an investor provides further resources for rapidly advancing our product pipeline and reinforces the potential of our disruptive technology platform.”

Proceeds from the financing will be used to accelerate Liquidia’s lead vaccine candidate through initial clinical studies and expand development of particle-based solutions for novel vaccines and therapeutics.

Previously on TechJournal South:

Liquidia Technologies closes $20M C round to accelerate lead vaccine

Liquidia Technologies nabs $3M from Technology Innovation Program

Liquidia raises $7 million in new equity

Adtech buys Telindus Surveillance Solutions

Monday, April 19th, 2010

Adtech logoATLANTA – Adtech Global Solutions (AGS), which acquired Atlanta-based Steebox technology in 2009, has purchased key intellectual property and the ongoing business operations of Telindus Surveillance Solutions.

The company did not disclose financial details.

With the acquisition of the Steelbox technology in 2009, AGS, an 11-year old, global technology company, made a calculated move to invest in products that will enable the company to capitalize on a growing market – digital media.

The transaction allows AGS to broaden its portfolio of network media products, starting with infrastructure-class video management software, which complements its award-winning Steelbox technology.

With video gaining ground on nearly every type of screen imaginable, we suspect Adtech is wise to consolidate as much as possible in the sector.

With the TSS transaction, AGS has created a dedicated group under the Adtech Global Solutions corporate umbrella called Network Media.

The immediate focus for the Network Media group will be developing, marketing, deploying and supporting comprehensive network media solutions for the physical security market.

AGS provides total solution services to corporations throughout the world — including more than half of the Fortune 100 — in a variety of industries including computer telephony, medical, network security, broadcast and military/government-based industries.

It has offices in Atlanta, Hong Kong, London, Munich, and Sydney, with Headquarters in Alpharetta, GA.

Atlanta-based Lancope names Mike Potts CEO, president

Monday, April 19th, 2010

ATLANTA – Lancope, a company selling network performance and security monitoring systems, has named Mike Potts CEO and president.

Prior to joining Lancope, Potts served as president and CEO of AirDefense, where he lead the company through an accelerated growth phase of more than 300% in 2 ½ years. Under his leadership, AirDefense became the recognized global leader in wireless security and was strategically acquired by Motorola (NYSE:MOT) in September 2008.

Potts takes the helm at Lancope following the retirement of Harland LaVigne, the chairman, president and CEO since 2002.

Potts also previously served as CEO of Clickfox, an analytic solutions provider. In 1998, Potts was appointed president of Jacada (Nasdaq: JCDA), a software integration company.

Lancope specializes in flow-based network performance and security monitoring via its StealthWatch system. The company says StealthWatch monitors the networks of Global 2000 organizations, academic institutions and government entities worldwide.

Top five biggest startup surprises

Monday, April 19th, 2010

paul graham

Paul Graham, partner, Y Combinator

Watch who you choose as a co-founder and be prepared to have a startup take over your life and put you on an emotional roller-coaster. Those were some of the responses that well-known programmer, author and entrepreneur Paul Graham received when he asked founders to tell him what surprised them.

Graham, one of the partners of Y Combinator, the Silicon Valley-based incubator/accelerator that helped spawn similar early stage startup accelerators in the Southeast, asked the readers of his Web site to name the surprises they encountered starting companies.

The top five:

1. Be Careful with Cofounders. Graham says this is the response most founders mentioned. They said they wished they had paid more attention the character and commitment of their co-founders (rather than ability).We would be willing to bet that anyone who ever started a company experienced difficulties with co-founders at one point or another, just based on our own experiences.

2. Startups take over your life. We can identify with that, since we have founded several media firms and worked for several startups as a founding editor. You may find yourself working on your startup or thinking about it every waking hour. We would go for walks to relax and think about ways to improve Web traffic during the entire time.

3. You’ll be taking an emotional roller-coaster ride. Many people told Graham the extreme ups and downs of startup life were more than they were prepared for. You can get really high on successes then plunge to the depths if things go awry.

4. It can be fun. Working on something that is creative, engaging and yours can be a real high…if you like that sort of thing. Again, we agree. We’ve always had more fun working in startup companies than for well established firms in formal offices.

5. Persistence is key. The degree of persistence required surprised many of the founders. Hanging in there proved more important than ability, many said.

Graham’s essay lists 14 more “surprises” startup founders encountered and also describes “The Super Pattern.”

Here’s the whole essays: What Startups Are Really Like.

We recommend Graham’s essays for any entrepreneur or budding entrepreneurs out there. One of the things he noticed in the surprises startup founders mentioned is that most were about things he always brings up.

By Allan Maurer

www.paulgraham.com

Groupon lands $135M for social buying site

Monday, April 19th, 2010

groupon logoCHICAGO – Groupon, a group buying site that offers deals in Southeast cities ranging from DC to Orlando, says Digital Sky Technologies will lead a $135 million investment round to help fuel the company’s global expansion.

Battery Ventures also participated.

Reports peg valuation of the company at $1.2 million.

The company previously raised a $30 million round.

Groupon leverages group buying and social media to provide its millions of customers big discounts on the best local businesses in more than 50 cities across the United States and in Canada.

To date, the company says, customers have purchased over four million Groupons on deals ranging from spa treatments and golf outings to fine dining and skydiving and have collectively saved over $150 million on these deals.

Groupon recently added Orlando to its cities, which include Charlotte, Atlanta, Baltimore, Memphis, Miami, Jacksonville, Northern Virginia, and more in the Southeast.

We see these group buying programs as one of the more successful strategies for monetizing social networking. With their huge user base, these networks can tap enormous buying power.

VentureWire says the large funding  shows a continuing hunger on the part of VCs have for social networking  properties, but suggests the sector may be overheated.

DC-based Living Social is an emerging Southeast competitor that also recently raised a significant round of new capital to expand its deals program, although it started as a popular “Pick Five” Facebook app.

See:

LivingSocial lands $25M, expanding deals program, hiring

For something a bit lighter see:

Five questions for LivingSocial’s CEO Tim O’Shaughnessy

New devices gaining in mobile ad mix

Monday, April 19th, 2010

millennial-mediaWhile mobile phones still generate the most impressions for advertisers, connected devices without phones, such as the iPad, iPod touch, Sony’s PSP and the Nintendo DS climbed to 21 percent of U.S. impressions in March.

So says Millennial Media, a mobile ad network that is creating a new tracking category it calls “The Mobile Mix,” to report statistics on connected devices monthly. Millennial says its network reaches 83 percent of U.S. mobile users.

The largest share of impressions across Millennial’s network in March were generated by Apple devices, which accounted for 40 percent.

The iPhone led in smartphone impressions at about 27 percent, followed by the BlackBerry Curve with a mere 6 percent.

The iPod posted a respectable showing, with impressions soaring 713 percent a week after its launch, although it creates only a small portion of overall traffic so far.

Nevertheless, with several other device makers ready to leap into the tablet market and devices and the success of netbooks, which led PC sales last year, the non-phone mobile device market is poised to grab a larger share of mobile ad pie.

“We felt that it was now time to spotlight this data for industry watchers who are trying to understand the role of devices and consumer behavior in the overall mobile market,” said Erin McKelvey, senior vice president of marketing at Millennial.

MCG Capital sells Jet Broadband for $49.7M

Monday, April 19th, 2010

ARLINGTON, VA – MCG Capital has sold Jet Broadband Holdings to Shentel Cable Co. for cash after expenses of about $49.7 million, a bit less than the $50.2 million of the fair value of its debt and equity investments in the company.

Shentel is a subsidiary of Shenandoah Telecommunications Company.

Jet Broadband is a broadband communications company focused on serving medium-sized communities in Virginia and West Virginia.

Steven F. Tunney, MCG’s President and CEO. said, “This sale, and the combination of the equity realization and repayment of our subordinated debt investment, is another step forward in our strategic plan to monetize equity assets at or near fair value to support the redeployment of capital into current yield oriented investments to grow operating income.”