Archive for the ‘Kentucky’ Category
Tuesday, June 22nd, 2010
 Dean Williams, Services Development Manager, Softchoice By Allan Maurer
TORONTO – With less than 4 weeks before Microsoft discontinues support of Windows XP SP2, a Softchoice study finds that 77 percent of organizations are still not prepared. Toronto-based Softchoice, which has Southeast offices in Atlanta, Charlotte, Norfolk, VA, and DC, says these surprising findings will have a significant impact on the overall security of a company’s data if computers are not upgraded before July 13, 2010.
It is estimated that nearly eight out of every 10 organizations have a high enough prevalence of SP2 in their environment to warrant immediate action to update their systems. Failing to do so could create unnecessary security risks as hackers continue to look for vulnerabilities knowing that software updates will no longer be forthcoming from Microsoft.
How much is a high enough prevalence? If 10 percent of a company’s computers are running XP Service Pack 2, that’s enough to worry about, Softchoice says.
“We were surprised by the number of people who have not yet deployed Service Pack 3,” said Dean Williams, Services Development Manager for Softchoice.
Williams tells us XP is still the most popular operating system in the world. “The more popular an operating system is, the bigger the bullseye on it,” he says. “Every day, people are looking to exploit known XP vulnerabilities, so there is no more dangerous operating system in the world.”
XP is “like a comfortable pair of jeans” for many users, a fact that forced Microsoft to extend its support of the system. Many also may have experienced disruptive issues when installing XP’s service pack 2, Williams notes, which may have made them reluctant to update to the XP service pack 3.
A whopping 93 percent of users are still running XP, says Williams, which we find amazing.
Also, While offered free of charge by Microsoft, the work involved in deploying Windows SP3 is not insignificant for larger organizations or those without systems management technology in place.
Service pack 3 is a much more incremental update compared to the major overhaul of SP2 and does not cause those troublesome issues. Users should update immediately, says Williams. Even better, he suggests, would be to upgrade to a current system such as Windows 7.
Hackers will be actively looking even harder to exploit vulnerabilities in XP Service Pack 2 once Microsoft discontinues software updates, Williams notes.
Tags: Dean Williams, Security, Softchoice, Windows 7, Windows XP Service pack 2
Posted in Alabama, Arkansas, Business advice, Carolinas, Florida, Georgia, Internet/New Media, IT, Kentucky, Maryland, North Carolina, Other SE, Potomac, Security, South Carolina, Studies, surveys, reports, Tennessee, Virginia, Washington, DC, West Virginia | Comments Off
Tuesday, June 22nd, 2010
By David H. Jones, President, CEO and Co-Founder of Peak 10, Inc.
 David Jones, president, CEO, Peak 10 Surviving these economic times has been challenging and has created shifts and changes along with “refocusing” on core operating principles, scale of operations, business retention and financial leverage. Remapping is taking place. By that I mean that access to efficient business solutions impacting the speed of change in systems and information technology has led to new business ideas.
This reality does not overshadow the fact that access to the right balance of capital in the form of venture capital, private equity or line of credit requires careful consideration as our financial markets continue to seek predictability.
Postitive potential for raising capital
I was recently asked if I had thoughts about what entrepreneurs might need to consider today in the effort to raise capital. First off, I do not think the fundamentals today are much different than they have been in the past.
The ability to attract capital for a business idea or plan, whether from friends and family, angels, venture funds, private equity or debt, boils down to a combination of factors and that certainly includes the economic environment.
I believe the potential for accessing capital today is positive. However, to attract it with favorable terms depends on several tightly interrelated factors.
1. Strength of the plan and the leadership.
Whether starting a company or attempting to expand, the financial requirements and what the money is used for, will determine how attractive the opportunity is to a capital investor. The track record of the leadership of the enterprise adds very significant weight to that attraction, but also a clear message of the vision and purpose of the business solution along with what and how the business achieves that purpose is obviously critical.
A showing of commitment from the leadership team (with their own investment) and positive progress since inception establish a basis that will be attractive to a potential investor and are fundamental to raising outside capital.
2. Purpose of the investment.
When raising money for physical assets such as infrastructure to support a business case, you may need to look to a different potential investor group than raising capital to execute on an “idea” to develop a software solution or an ecommerce business plan for example. There may be a presumption that a physical asset has some recoverable (or collateral) value, and “brick and mortar” often has more attraction today than capital for a “soft” product deployment.
On the other side of that statement, there are numerous examples of new interfaces that provide access to unique information via a variety of platforms (public and private cloud, social media databases, etc.) and thus new products or services that require little investment in physical infrastructure.
The point here is to make sure you are in the right investor interest market, and avoid a shotgun approach. Get advice or references for the venture group or capital sources that understand the line of business you are focused upon.
3. Taking the money
With all else equal, take the money if you have done due diligence on the venture group or private equity group and there proves to be a match of philosophies. “Taking the money” is one of the most difficult decisions you will make. The favorability of the terms will be determined by the perceived risk the investor has in your team, your execution plan and how dire the situation is in terms of “need.”
If the need is to fund an idea, it is quite a different scenario than funding a plan that has been launched where the investment is “growth capital” to accelerate execution of the plan.
Ultimately when you have reached this point, you are at the intersection of a decision about your belief in your strategy and your ability to execute and grow, and your belief that with the new investor your odds of success and time to market are noticeably better than you would otherwise expect to achieve.
Giving up ownership
Giving up part of your ownership can only be offset by your belief and commitment that this is the best move for your enterprise and ultimately because of that, the best move for you as the founder or key executive and for your team.
One last point here, since you have made a decision to consider raising capital if you have not approached this need with your early investors, you have an obligation to inform them of the potential impacts of the change.
By virtue of the determination you have made to seek outside capital, it is presumed that you have earlier discussed this need with your investors and that group is not in a position to address the magnitude of the capital need. At the same time you must determine from the new investor if there is flexibility to offer follow-on investment to current investors.
4. Your partnership.
Once you are in a partnership with an investment group, make sure you communicate regularly the good and the bad news. No surprises. Nothing jeopardizes the relationship with your significant investors than poor communications and engagement. Typically a venture or private equity group’s role is not in operating the business, but one of strategic advisor and sounding board. Nevertheless, do not forget that this new investor is your partner and shares an important equity stake along with you.
Engage the investor in board committee responsibilities that foster one-on-one interaction away from the board room. Face it: your business will likely require morphing, changing and adapting to reach the performance goals you have set. The economy and technology innovation alone will change and challenge your operating environment. Your co-investors may have some of the best “eyes” into these changes since yours are focused on your sales, operations and culture that fosters customer loyalty and growth.
5. Managing the results.
Prepare a “best case” business plan but present a realistic, achievable plan to raise capital. A venture or private equity firm will have a ‘haircut’ case that will be the basis for their investment. Know the inflection points in your plan and ensure that your team understands them.
Also understand the goals of your investor; they may not have the same long term aspirations as your plan contemplates. Investment funds have a life term; determine where your investment fits into the life of the fund. If you do not know the investor’s return goal(s) you will have a difficult time understanding their strategic decisions.
There is nothing wrong with an investor exiting, as long as the exit is positive. If they are cutting their losses by exiting their investment, and that comes as shock to you, it is obvious that either you were not aligned to start with, you are not realistic about the success of your venture, or you are in love with an idea that is not sustainable. However, in most cases the latter is rectified on the front end of the process.
I believe that we are seeing a renewal of entrepreneurial activity and growth as we emerge from the stress of the economic slowdown that has changed our business environment over the past 18-20 months. For those of you who have successfully raised capital for your business, you may have a few more tips that are relevant, but I have found that the ones above hold true over time and must work in concert with one another.
Peak 10 is a managed services company with world-class data centers. It delivers scalable, economical and reliable solutions for hosting and managing complex information technology infrastructure. The company owns and operates data centers in ten key markets that include Cincinnati, Ohio; Atlanta, Ga.; Raleigh and Charlotte, N.C.; Tampa, Jacksonville and Fort Lauderdale, Fla.; Nashville, Tenn.; Louisville, Ky.; and Richmond, Va.
Tags: data centers, David Jones, Florida, Georgia, NC, Peak 10, raising capital, Virginia
Posted in Business advice, Carolinas, Florida, Georgia, Internet/New Media, IT, Kentucky, Money, North Carolina, Other SE, Potomac, South Carolina, Tennessee, Viewpoint, Virginia | Comments Off
Friday, June 18th, 2010
By Rhonda R. Savage, DDS
 Rhonda R. Savage There’s no doubt that Facebook participation can be an asset to any business. The question is, how can you use it to promote your products and company, yet be sure your team members are cautious in the way they use it? What should the owner and office manager post?
Where is the line between personal and professional? Knowing the good, the bad and the ugly of Facebook for business, your company can take full advantage of this tool and watch your business grow.
The good: One benefit Facebook offers for business is it lets the customers and potential clients know your company on a personal level. Clients come to you for a relationship. They assume you know how to take care of their needs. Being accessible on social media sites helps your clients and customers feel connected to your company.
A Facebook page can also help bring people to your website. Customers will look for your presence on the Internet and a Facebook profile is just another way they can find you, leading them to your website to find out more information and possibly contact you.
Facebook can be a tremendous networking tool. Business pages on Facebook can elevate your website status through Search Engine Optimization. In addition, if you have a Facebook business page link on the opening page of your website, potential clients can feel that they know you and your office before coming in for their new customer experience. Several companies have gained new clients simply because of their Facebook page.
The bad: A recent study of companies with 1,000 employees found that 8% of their employees have actually been dismissed for their behavior on sites like Facebook and LinkedIn. That’s double from the previous year! Companies have also fired employees for sharing sensitive details about the business and their clients. In addition, team members have been sanctioned and fired for making unprofessional remarks about their boss via social networking sites.
The Ugly: Realize that even if you use Facebook privacy settings, you may still be in danger. Remember going to high school and doing things you thought your parents would never know about and yet somehow they always found out? The same is true of social media. Avoid bad -mouthing your boss, co-worker or anyone in your professional life in such a public way on a public forum.
Every business should have specific guidelines that apply to social media use. There are two factors at work here: employers need to be closely monitoring social media sites and employees need to use common sense when posting about work life. Employees need to be careful about sharing sensitive information as well as making foolish remarks about their employer.
The owner needs to set the vision and goals for the office regarding social media with the help of the team with the development of a mission-driven ethical use policy.
Following are some basic guidelines for using social media in business. The guidelines listed below must apply to every member of the team member, including the owner:
- Never post anything that directly or indirectly insults customers, clients or the business itself.
- When posting on personal and social media sites, be nice and keep it clean. Develop verbal cue cards on “what to say and not to say” on social media. Have clearly developed expectations that apply to all team members.
- Consider leveraging your office’s Facebook profile to start positive conversations about your employees and your services. You can do this by regularly posting testimonials from current or past clients.
- With your customers’ permission, involve them in your efforts. You can do this by connecting with them and posting information about their business.
If you have a personal page and a business page, consider your policy regarding clients who want to become your personal friend. One business owner lost a family of customers who requested to be his personal friend and he said “no.”
- Create a page in your office policy manual regarding Facebook and social media posting so each employee understands what to do and what not to do.
- Designate one or more specific employees to be responsible for posting on and updating your sites. Business page content will need to be updated frequently and consistently to ensure the Wall tab stays fresh. Carve out 1-2 hours/week for this responsibility dedicated to marketing on the web.
With a clearly established policy and understanding of the good, bad and the ugly, Facebook and social media can be a great asset to your business. By enforcing social media policies and following these guidelines, you’ll see great results from your efforts!
Dr. Rhonda Savage is an internationally acclaimed speaker and CEO for a well-known practice management and consulting business. Dr. Savage is a noted motivational speaker on leadership, women’s issues and communication. For more information on her speaking, visit www.DentalManagementU.com
Tags: Business advice, facebook, Rhonda Savage, social media, soical media in the workplace, twitter
Posted in Alabama, Arkansas, Business advice, Carolinas, Columns, Florida, Georgia, Internet/New Media, Kentucky, Maryland, North Carolina, Other SE, Potomac, South Carolina, Tennessee, Viewpoint, Virginia, Washington, DC, West Virginia | 2 Comments »
Thursday, June 17th, 2010
 WASHINGTON, DC – The U.S. Supreme Court is expected to hand down a decision affecting the Sarbanes-Oxley (SOX) act of 2002 soon. The Sarbanes-Oxley Act more than quadrupled corporate auditing costs for public corporations. Passed in response to the slack auditing that allowed companies such as Enron to appear healthy when they were not, SOX proved so costly that some public companies went private again, while it also reduced the number of companies going public.
That effect is still being felt in the venture financing industry, where a successful IPO is a coveted exit. We’ve heard from a number of smaller venture-backed firms that the cost of going public now means they aimed at a merger or acquisition exit from the start rather than for an IPO.
The case before the Supreme Court, says the Competitive Enterprise Institute (CEI) whose attorneys are service as co-counsel, mounts a constitutional challenge to the Public Company Accounting Oversight Board (PCAOB), the accounting regulatory body created by the law.
Negative impact on entrepreneurs
The CEI argues that the way in which the PCAOB board members are appointed violates the Appointments Clause of the U.S. Constitution. Namely, that PCAOB officers, who wield a great deal of regulatory power over businesses and industry-wide accounting practices, are “principal officers of the United States” who must be appointed by the President, with advice and consent of the Senate or by an agency head, as required by the Appointments Clause.
CEI says, “This requirement was intended by the Framers to instill a high level of accountability for officials who wield such vast powers. Although the PCAOB is a striking constitutional anomaly – a case of an independent agency (Securities and Exchange Commission) appointing an equally powerful independent agency – it’s a case that will also potentially change, for the better, how other government officials and regulatory bodies are answerable to the American people.”
CEI notes that SOX has had a negative impact on entrepreneurs and inventors.
Fewer IPOS
CEI says SOX permanently reduced the number of companies going public, increased the size of companies going public, and had a negative effect on job creation and economic growth. It also caused many foreign firms to stop listing on U.S. exchanges.
According to a 2009 Renaissance Capital report, IPO issuance in 2008 and 2009 is lower than any period since the 1970s, when business creation struggled against inflation, high interest rates and the Vietnam War.
Also, data compiled by Jay Ritter of the University of Florida show the number of U.S. IPOs were lower in every year after SOX was enacted in 2002 (2003 to present) than in every year of the decade from 1991 to 2000, including the early ’90s recession years. For instance, in the post-SOX boom year of 2006, there were 162 U.S. IPOs. Yet in 1991, a year when the U.S. was mired in recession but did not have SOX, there were 295 U.S. IPOs.
Bigger IPOs
The sheer size of companies going public has also increased, in large part because a company needs to be pretty big to afford the accounting costs that have shot up fourfold as a result of SOX, according to a summary of research in the Sarbanes-Oxley Compliance Journal.
According to Business Week, the median market cap (as measured by number of shares times share price) for a company doing an IPO was $52 million in the mid-‘90s. Today, it has shot up $227 million. Google had a $1 billion market cap when it went public of 2004. And Facebook still hasn’t gone public, despite having an estimated market cap of nearly $10 billion.
That means, says CEI, that budding Microsofts can no longer go public to raise money for growth. They must wait until they’re as big as a Google to go public. That forces firms to seek financing through debt, which is especially difficult in the current credit crunch.
CEI notes that evidence suggests that we were able to recover more quickly from the early ‘90s recession because an actual increase in companies — from Starbucks to Cisco — issuing IPOs. But SOX forecloses that possibility and makes for a longer recovery.
Accountants full employment act?
CEI also maintains that the PCAOB has stretched Sarbox’s requirement that auditors “attest” to a company’s internal controls over financial reporting in the law’s Section 404 to require a full-blown audit of trivial items that could remotely effect a financial statement. “This has turned the law into the “Accountants Full Employment Act” and the reason the Big 4 accounting firms lobby so hard against even minor rollbacks in Congress,” says CEI’s John Berlan, director of its Center for Entrepreneurs and Investors in a memo.
SOX was Hell for a company like Google
Even companies large enough to mount and IPO such as Google, faced difficulties with SOX.
According to John Battelle’s book The Search, considered a definitive history of Google Inc., Sarbox was “hell for a company like Google, which made its money literally pennies at a time, from millions upon millions of micro-transactions.”
Battelle reports that Sarbox compliance significantly delayed Google’s IPO. “According to engineers involved in the work, Google had to significantly restructure its advertising report system from the ground up.” If this was difficult for a company like Google, imagine what a burden it is to smaller companies.
SOX ineffective in fighting fraud
University of Minnesota accounting professor Ivy Zhang found that the law has cost the American economy $1.4 trillion in direct and indirect costs.
Almost as important is that Zhang and other researches have found that Sarbox has had no quantifiable benefits in fighting fraud. The PCAOB has done little or nothing about in telling accountants how to handle accounting for the off-balance sheet entities at issue in Enron that resurfaced with Lehman and other companies. Countrywide Financial, now charged by the SEC with accounting fraud, actually won an award for its Sarbox compliance from the Institute of Internal Auditors in 2007.
There is bipartisan support in Congress for regulatory relief from SOX.
For more see also:
Peter Thiel, venture capitalist and first outside investor in Facebook, “The IPO window is almost closed and I think in part, this is a response to Sarbanes-Oxley to the ways in which being the CEO of a public company is simply no fun anymore. They’re subject to insane levels of scrutiny. You’re not able to pursue any sort of multi-year corporate strategy and instead you are held to a quarter-by-quarter earnings schedule which is ultimately quite detrimental to long-term planning.” bigthink.com/ideas/17716
Carl Schramm and Robert Litan, president and vice president of Kauffman Foundation, leading foundation on research in entrepreneurship: “Compliance with the Sarbanes-Oxley Act of 2002, in particular, has proven to be far more expensive for smaller companies than originally intended or forecasted. Since shareholders are the intended beneficiaries of Sarbox, why not let them vote on whether their company needs to comply with some or all of its provisions—the expensive requirement for auditing of internal controls, in particular.
We suspect that many shareholders would choose some form of opt-out, and in so doing, would enable more growing companies to continue growing as independent firms, rather than being bought out by larger companies that can intentionally or unintentionally rob the firms of the entrepreneurial magic that made them successful in the first place.” online.wsj.com/article/SB10001424052748704013004574517303668357682.html
Commentary on the Daily Caller: Sarbox reform would boost our economy, but even small reforms (such as small company exemptions) are being blocked by the powerful accounting lobby: dailycaller.com/2010/02/02/obama-can-aid-small-businesses-by-providing-regulatory-relief/
CEI study, “SOXing It To The Little Guy,” detailing Sarbox’s cost to Main Street entrepreneurs and investors.
Jack Welch, General Electric CEO responsible for turnaround in 80s and 90s. ”Small companies with all these financial controls that are in there now and the penalties that go on with small entrepreneurial companies, it’s tough.” Interview with Tavis Smiley.www.pbs.org/kcet/tavissmiley/archive/200504/20050426_welch.html
Tags: Carl Schramm, CEI, Countrywide Financial, facebook, General Electric, Google, Ivy Zhang, Jack Welch, John Battelle, Kauffman Foundation, Peter Thiel, Robert Litan, SOX, Supreme Court ruling on Sarbanes-Oxley Act, University of Florida
Posted in Alabama, Arkansas, Carolinas, Economic Development, Florida, Georgia, Government/Defense, Kentucky, Maryland, North Carolina, Other SE, Potomac, South Carolina, Tennessee, Virginia, Washington, DC, West Virginia | Comments Off
Wednesday, June 16th, 2010
 Joe Procopio By Joe Procopio
Look, we all know that the world economy is in the toilet. Our own stock market seems caught in a range depending on what’s gushing, exploding, or opening its stupid mouth on any given day. Europe has had it, thanks for all those awesome centuries of culture and civilization, fellas. And Twitter still hasn’t figured out how to make any money.
Or have they? It’s hard to tell.
But I have a question for you on this, the fortnight before the season for the eve of all financial destruction: Which is the more valuable currency play? A) Euros; B) Flooz ; C) Badges
Answer Below (No Cheating!)
As far as the Euro is concerned, yeah, I’m the ugly American, but we do have the World Cup going on and that 1-1 draw with England is stuck in my craw like a keeper deftly securing a dribbling shot into his professionally gloved hands. You can actually buy Euro futures with an options collar using World of Warcraft money (I don’t know… pence?) and General Mills box tops. The only way you lose is if the scone market goes belly up.
If you read the word “Flooz” and didn’t laugh, you’re either twelve years old or Whoopi Goldberg. No wait, you can’t be twelve and not laugh at the word “Flooz.” Sorry, Whoopi.
And if you’re not 100% sure what badges are or why they might be the right answer, well, you’re not alone.
Badges Are Not Euros
Here’s what badges are in 15 words: Things that don’t exist with no intrinsic value other than to the few who seek them. But don’t take that explanation the wrong way. After all, a Star Wars action figure in the original packaging is just a few cents worth of plastic and cardboard. You can’t eat gold, yada and yada.
What badges are not are actual currency, certified or overseen in any way (and I say this knowing there is indeed some self-appointed badge certification website out there with tons of members who go by Monty Python referencing handles and nothing better to do than send me corrective email, I’m just too lazy to look it up), or linked to a central qualification.
You want the TechJournal South Ultra-Mega-Reader-And-Understander Badge?
There. Now you can put it wherever these things go, like on your MySpace page or above your fireplace.
Badges Are Not Flooz (Still Chuckling)
What badges are also not… are Flooz.
See. It’s confusing. Hang with me, we’ll get there.
Badges aren’t Flooz because Flooz was an Internet currency with a pre-determined cash value. You spent Flooz on the Internet instead of cash.
Badges have no, repeat, no value other than as a collectible and only, it seems, as a collectible to a single entity – a social network like FourSquare or an event like the World Cup. They come from the gaming industry, which is where I get my wobbly expert knowledge on the subject. I know of them, but I don’t have any, because while I can deftly destroy my wife and toddler children at Halo (the little one STILL has nightmares about the Flood, by the way, but you take your edge where you can get it), any kid beyond the age of five makes me look like my Dad.
Who, for the record, can still beat the hell out of Dr. Mario.
Social Badges
When badges came over to social networking they, like every other Internet idea, actually started out with good intentions, like Facebook, and were used to raise money for charity. These were actually less like badges and more like widgets.
But when used improperly, what badges can do, like every other Internet idea shamelessly copied and mutated into something awful for attention or money, like Facebook, is fall victim to a mix of trendhopping, poor program design, and automation, and bring down the worth of every achievement that they purport to reward.
Let’s say I decided that I want to get some sort of reliable return out of my ultra-mega TechJournal badge. This is the reason why anyone would want to do something like this and insert snarky social marketing advice here. If I do it right and offer something valuable in return for achieving the badge, like I come to your house and make fun of TV with you for an hour, then I’m actually on the right track.
But something of value to you requires something of value to me. There’s no such thing as a free lunch, no matter what kind of Groupon Schlotzkys is offering. So I’m going to make you do something to get the badge, like, let’s say, leave awesome glowing, ego-bending comments for my columns
Genius. Right?
Absolutely
Thank you. But unless I do it right, insert snarky social marketing cautionary tale here, I can actually devalue the badge and my return on it. We’ll hit it off great, with comments like “Joe, this column changed my life. I actually finished reading it and developed an idea for a new mobile business and now have term sheets from both coasts. Thank you!”
Then sooner or later, you’ll figure it out, and it’ll be “Nice column.” And finally, when it’s all blinders on and hell bent for leather, it’s “dsajhfsjh.” Basically whatever you can type with your fist before hitting “Post.”
It’s not long before I retaliate with automated monitoring and “Report Abuse” links on every post and then we’re getting bots and using captchas and then before you know it I’m fighting fraud on every front.
Which is exactly what happened to Flooz. Well that and people remembered they had credit cards.
A Fad. For Now.
Badges are a fad, but they’re the kind of fad like Angelfire was a fad or ringtones were a fad. There’s something there, most definitely, and when used correctly, badges can be another step on the way to actually monetizing all this social activity.
And there’s no reason you can’t figure it out before Twitter does.
—
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 and digital incubator ExitEvent. You really can keep the ultra-mega badge, but what you really want is the super-ultra-giga badge, and to get that he’ll need one Star Wars action figure in original packaging. He can be reached at joe@intrepidcompany.com or twitter @jproco.
Tags: column, Joe Procopio, Stinking Badges, Viewpoint
Posted in Alabama, Arkansas, Carolinas, Columns, Florida, Georgia, Kentucky, Maryland, North Carolina, Other SE, Potomac, Tech Culture, TechLife, Tennessee, Viewpoint, Virginia, Washington, DC, West Virginia | Comments Off
Friday, June 11th, 2010
 Content is King... again By Allan Maurer
RESEARCH TRIANGLE, NC – “Content is King,” is an idea that has had its ups and downs as a guiding principal for developing not just traffic but value on Web sites, but it is clearly back in the forefront. Yahoo recently agreed to buy Associated Content, which relies on more than 300,000 low paid freelance contributors to churn out 50,000 pieces of unique media monthly, paying $100 million for the company.
The Examiner.com, a similar operation recently bought NowPublic, a Vancouver-based citizen journalism site and continually advertises for “Examiners” to provide content on news, restaurants, entertainment and other topics nationally.
AOL recently announced its intention to hire hundreds of journalists, editors and videographers in addition to the 500 full-time editorial employees it now has, David Eun, president of AOL’s media and studios division told Crain’s New York Business.com.
“Our mission at this company is to be the world’s largest producer of high-quality content, period,” Eun, said.
Content hot again
Bob Butler, CEO and founder of BestThinking.com, a rather unique Research Triangle, NC-based content site, has predicted the content space would become hot again even before the Yahoo/Associated Content deal was announced.
The Triangle region, he notes, is home to a number of content oriented Web businesses in addition to his own, including www.BrightHub.com and www.Lulu.com, while many other content driven Internet companies dot the entire Southeast region. Butler tells us he thinks well run content sites will be delivering a good return on investment if they land venture dollars.
“This is Yahoo’s answer to what AOL is doing with Seed.com… basically acquiring their own internal freelancer-driven content website to reduce content costs and increase content volume,” Butler tells us.
“In any event, this clearly shows an increasing demand for ventures that can generate content for major media and their Internet offerings,” he adds.
Barrier to entry lower
Why all this renewed hoopla over content? For one thing, the barrier to creating an Internet company is, as Edwin Warfield, founder of Localbusiness.com (originally dbusiness.com) that thrived during the Internet boom years, much less now than it was then. Now founder and CEO of Potomac-based Citybizlist.com, Warfield tells us “It costs less than 5 percent of what it did then.”
So many more Internet sites are competing for traffic and search engine notice and getting original, unique and frequent content on a site is the reliable way to attract both search engine attention and visitor traffic, which translates into advertising dollars and a firm’s eventual worth.
We suspect that successful content-focused sites will gravitate more and more toward professional contributions rather than the type of low-paid, search-geared material now offered by Associated Content and Examiner.com.
A corollary of the renewed interest in building sites through content is a renewed interest in content management systems. We’ve used half a dozen in our decade of providing content to a variety of Web sites, and here’s a bit of advice: talk to some professionals in the content management space before you decide on a CMS.
The right CMS will have a lot to do with whether your subject matter experts or other contributors publish regularly.
Editor’s note: sponsored content is not necessarily provided by the sponsor. It may also be content of interest to the sponsor, such as this post.
 Sponsored by webslingerz
webslingerz helps organizations utilize interactive media to create and maintain connections with customers, partners, and employees.
Tags: AOL, Associated Content, BestThinking, Content is king, Examiner.com, NowPublic, Webslingerz, Yahoo
Posted in Alabama, Arkansas, Business advice, Carolinas, Columns, Florida, Georgia, Internet/New Media, IT, Kentucky, Maryland, North Carolina, Other SE, Potomac, South Carolina, Tennessee, Viewpoint, Virginia, Washington, DC, West Virginia | Comments Off
Friday, June 4th, 2010
 By Jean Kelley
For any business, effective networking is an essential component to success. Today, though, the landscape of business networking has changed dramatically. No longer does business networking exclusively involve standing in a crowded room of people, meeting and greeting with total strangers, and exchanging numerous business cards. While such traditional networking is still valid and effective, e-networking done via business social networking sites is just as valuable.
Regardless of what anyone thinks about social networking sites, the fact is that they are here to stay. Sure, they’ll evolve over the years and will likely look very different than they do today, but ultimately they’ll still exist. And while purely “social” social networking sites can have a business aspect to them, it’s important for business owners, executives, and managers to have a strong presence on the tried and true business networking sites (example: LinkedIn).
Why? Because your clients, customers, colleagues, and others look to business networking sites for evidence of your character. For example, when a prospect is thinking about doing business with you, he or she will likely do a social media search for you.
Never before did average people have the ability to research anyone or any company they wanted. While in the past background checks were expensive and time-consuming, these days a few mouse clicks and keystrokes can pull up a goldmine of information. That’s why you and your company need to be on business networking sites…and you need to be using the e-networking sites effectively.
The following suggestions will help you become a savvy e-networker with a positive online presence.
- Don’t be a contact collector; be a contact cultivator.
The goal of any networking endeavor is to build relationships, not just to collect business cards. E-networking is no different. If you’ve been on any business networking sites, you’ve likely seen people with 500+ connections. At first you may think, “Wow, that person sure knows a lot of people.” But does he or she really know those connections? Or is this person just collecting contacts?
Rather than accepting and sending invitations to anyone, be mindful of whom you connect with. When you do make a connection with someone, look over his or her profile and then add a personal note to the person where you indicate a shared interest, club, affiliation, etc. For example, you could respond to someone by writing, “I see you attended Northwestern University (or are a member of the Miami Business Association, or have a pet beagle…). I have a similar interest in that I (also attended Northwestern…am a member of the Tulsa Business Association….have a dog named Snoopy…etc.). You get the idea. Find a shared interest to build up
Many people think they’re going to get business from being on social media sites. While you can get business from your online activities, this shouldn’t be your ultimate purpose. Rather, your purpose should be to make people aware of who you are by sharing your expertise.
Any business networking site is a place for you to give, not just to get. So to get business from your e-networking activities, you have to contribute meaningful content. You can find many groups to belong to that have strong conversations going. If you post something in the discussion that’s smart and useful (good content), then chances are someone will ask to connect with you. Now you have more people to share your message with.
Other examples of good content are asking thought-provoking questions, posting a motivational quote, and sharing a business tip. No matter what you post, if you get a reply, acknowledge the person for their feedback or contribution. Just as you can’t take people for granted in the brick and mortar world, you can’t take them for granted in the virtual world either. Everyone who reacts to your content is a potential relationship and you need to treat them as such.
When you’re replying to a question someone else poses, try to answer in the early part of the conversation rather than after 100 others have already replied. You want your answer to be in that first page of results. That way anyone who replies after you sees your photo and business information every time. With that said, pay close attention to what the question is and don’t answer anything capriciously. Always remember that your reply is posted forever.
- Add some personal flair to your profile.
Even though this is business, it’s okay to put some personal flair to your profile. After all, no one is all business all the time. Chances are you have some interesting hobbies or other areas of your life that people find intriguing. For example, maybe you collect antique cars, breed prize-winning poodles, tend a vineyard in your backyard, or have the city’s largest yo-yo collection. These are interesting tidbits of yourself that you can weave into your profile to make you appear more “real.”
Additionally, look at the tools and widgets the business networking sites make available to you and use them. You can do such things as post your reading list, link your blog, upload your Twitter feed, and many others. People can get to know you by these additional applications. Even better, they’re very user-friendly and easy to integrate into your business networking persona.
A New Twist on an Old Tool
We are currently in the biggest social media experiment in the world. Those who embrace business e-networking now are essentially the pioneers who will shape how this tool gets implemented and how it evolves. As you move forward, however, remember that your involvement with business networking sites should be just one small aspect of your business building efforts; it’s definitely not an end-all approach for getting business. Essentially, when you use today’s business e-networking tools effectively, you’ll have one more way to connect with clients and prospects so you can build your business and boost your bottom line.
About the Author:
Jean Kelley is president and founder of Jean Kelley Leadership Consulting and Jean Kelley Leadership Alliance. She works with corporate leaders all over the world to achieve their highest potential. With her Alliance, Jean has helped more than 500,000 businesspeople enhance their careers. She is the author of “Dear Jean: What They Don’t Teach You at the Water Cooler,” and “Get A Job; Keep A Job Handbook.” For more information, see: www.jeankelley.com
Tags: Business advice, Internet, Jean Kelly, social networking, tips on becoming a savvy social networker, Viewpoint
Posted in Alabama, Arkansas, Business advice, Carolinas, Columns, Florida, Georgia, Internet/New Media, Kentucky, Marketing, Maryland, North Carolina, Other SE, Potomac, South Carolina, Tennessee, Viewpoint, Virginia, Washington, DC, West Virginia | Comments Off
Friday, May 28th, 2010
 It is difficult to overstate the importance of entrepreneurs to the success of the U.S. economy, says a new report from TD Economics.
“While economists spend a lot of time analyzing near-term trends and developments in aggregate data, economic growth over the longer-term is driven primarily by individuals taking risks and making sacrifices in order to bring innovative ideas to market,” writes TD economist James Marple in “Small and Medium Sized Businesses Key to U.S. Economic Recovery.”
Marple points out that small and medium-sized businesses, typically firms with fewer than 500 employees, make up 99.7 percent of all U.S. companies and more than half of total employment in the country.
He adds, “They are also profoundly important to generating new employment.”
We noted in an earlier post that while large tech firms such as IBM continue to shed jobs, portfolio companies at many venture firms are hiring (see: Job hunting? Venture-backed startups are hiring
The TD report says that businesses formed within the last five years have been responsible for the vast majority of net job growth in the last two decades (a statistic we found amazing).
Looking ahead, the report says, the U.S. economic recovery will depend largely on the performance of U.S. small businesses, which “suffered a disproportionate share of the job losses and many still have difficulty accessing credit form some lenders.”
Fortunately, he adds, things are beginning to look up.
We think this is another indication that government policy on national, state and local levels should pay much more attention to supporting, nurturing, and developing small businesses, entrepreneurs and startups rather than spending so much time and money on chasing large manufacturers and big companies.
North Carolina invested a lot of time, money and energy in recruiting a Dell computer manufacturing plant to the state that is shutting down operations after only a few years.
Would that money have been better spent helping develop and support startup operations that would generate jobs for a decade or more?
We see more and more evidence that making sure small businesses and startups have access to capital and support they need to succeed is far more important than shoring up large industries that are often dinosaurs that face near extinction every time some economic volcano blows its top. – Allan Maurer
Tags: economic recovery, entrepereneurs, government policies, Report, small business, Startups
Posted in Alabama, Arkansas, Carolinas, Economic Development, Florida, Georgia, Government/Defense, Internet/New Media, IT, Kentucky, Maryland, North Carolina, Other SE, Potomac, Studies, surveys, reports, Tennessee, Virginia, Washington, DC, West Virginia | Comments Off
Monday, May 24th, 2010
LOUISVILLE, KY - Apellis Pharmaceuticals Inc., a company formed from Potentia Pharmaceuticals, whose main age-related macular degeneration program was taken over by Alcon in October of 2009, has raised $1.7 million of an equity offering targeted at $6 million.
According to the company’s brief profile on LinkedIn, it is an early stage drug development company focused on peptide drugs in the immunology space.
The company’s Web site is merely a place holder.
We’ll see what else we can find out about this company for you. Check back later for more details.
Tags: Apellis Pharmaceuticals, financing, Kentucky
Posted in Kentucky, Money, Other SE | Comments Off
Friday, May 14th, 2010
 CHARLOTTE, NC – Duke Energy (NYSE:DUK) has finalized an agreement with the Department of Energy for $204 million in stimulus funds to support smart grid projects in the company’s five-state service territory.
The DOE funds will support two projects: $200 million — the maximum allowed per project under the DOE Smart Grid Investment Grant Program — will assist in modernizing Duke Energy’s power distribution system; $4 million will support the installation of digital equipment on the transmission system in the Carolinas.
Duke Energy expects to save or create approximately 1,000 jobs as it modernizes its grid system in Ohio, Indiana, Kentucky and the Carolinas.
It plans to spend $1 billion over the next five years to deploy smart grid technology in its service territory. Deployment includes digital and automated technology such as smart meters, distribution automation equipment, and communications infrastructure.
Duke’s smartgrid site has more information on the projects.
Tags: Duke Energy, Energy, Kentucky, NC, SC, smartgrid, stimulus funds
Posted in Carolinas, Energy, Government/Defense, Kentucky, Money, North Carolina, Other SE, South Carolina | Comments Off
Tuesday, May 11th, 2010
 LOUISVILLE, KY - Lightyear Network Solutions Inc. (OTCBB: LYNS), a provider of telecommunication services to large, medium and small businesses, as well as residential consumers across the United States, has named Stephen Lochmueller, industry veteran and former member of the senior management teams at Leap Wireless and Nextel Partners, chairman.
Lochmueller, age 57, joined Lightyear Network Solutions as a consultant in June 2009, and then as Chief Operating Officer in September 2009.
He has over 20 years of telecom industry experience and a history of success with small companies, as well as industry giants such as Leap Wireless, Nextel Partners, GTE Telecommunications and Cellular One, which would later become AT&T Wireless.
Lochmueller said, “Lightyear is about to enter an exciting time in its corporate history. Now that the logistics of becoming a public company are behind us, we are preparing to leverage our enhanced ability to raise capital, combined with Lightyear’s valuable client base and highly effective in-house systems and agent channels, to initiate a series of organic growth initiatives and accretive acquisitions.
Tags: Kentucky, Lightyear Network Solutions, Stephen Lochmueller, telecom
Posted in IT, Kentucky, Other SE, People, Telecommunications | Comments Off
Friday, May 7th, 2010
By Allan Maurer
 WASHINGTON, DC – The financial reform bill now being debated in the U.S. Senate could throw a monkey-wrench into the early-stage startup funding process. Two provisions in the bill, which is supposed to be aimed at taming Wall Street, would adversely affect “angel” investors, the high net worth individuals who often seed early stage companies.
Those provisions in the proposed “Restoring American Financial Stability Act of 2010” (S. 3217) could limit the availability of angel investment to small business and start-ups, says CompTIA, the IT trade industry.
One of the provisions increases the amount of income and assets an angel investor would need to qualify as accredited investors. The other requires a company seeking an angel investment to seek U.S. Securities and Exchange Commission approval–a process that could take months.
Many early-stage startups simply do not have those extra months and might never get off the ground if the provision is included in the final bill, some angel investors say.
Startups are job creation engines
“We recognize that this proposed legislation seeks to address the myriad of complex issues that led to the financial crisis,” said Elizabeth Hyman, vice president, public advocacy, CompTIA, one of at least ten associations requesting amendments to the bill to change the provisions.
“We are concerned that certain provisions contained in this legislation would effectively cut off early-stage angel investors who provide a critical source of funding for start-ups, small businesses and other entrepreneurs,” she stated. “Access to capital continues to be a significant concern for all small businesses.”
In an opinion piece about the financial reform bill in on Philly.com , Steve Welch asks why Washington bureaucrats cannot seem to distinguish between Wall Street bankers and entrepreneurs and the angel investors who back them. He notes that the bill in its current form “Will hurt the process that helps turn entrepreneurs’ innovateive ideas into viable, job-creating businesses.
Getting SEC involved “Almost a joke”
We understand his pain. For some reason, legislators seem clueless about how important startup funding is to getting the country back on track in creating new jobs. We spend billions to bail out firms responsible for the financial meltdown while doing little to rein in their excesses or help the part of the economy that is at the root of real job creation.
Bill Warner, of Wake Forest, NC-based Paladin and Associates, tells us, “These provisions in the Dodd bill will substantially stifle investment in startup companies.”
He adds, “Getting the SEC involved is almost a joke. These folks are one of the many who never blew the whistle on the pending mortgage industry collapse and they knew it was coming. Getting them involved in deciding what the risk is in an angel investment adds no value to the process and will only slow down investment.”
Welch points to the Kauffman Foundation study that found that between 1980 and 2005, companies less than five years old created nearly all the net gain in new jobs. But, Welch notes, that rather than supporting the effective bottom-up economic development, Washington legislators continue to focus on “mis-guided top-down policy making.”
Amendments requested by CompTIA and others
In a letter sent to Chairman Christopher Dodd and Ranking Member Richard Shelby of the Senate Committee on Banking, Housing, and Urban Affairs, CompTIA has asked for two amendments to the bill:
* Section 412: As written, this section would increase the threshold for qualified investors by applying the inflation factor measured since these limits were first enacted. Applying this inflation factor would more than double the existing net asset requirement from $1 million to approximately $2.3 million.
CompTIA supports an amendment that would keep the existing $1 million cap, but would exclude the value of the investor’s primary residence.
* Section 926. The section would require a 120-day SEC review of all Regulation D 506 private offerings, which include angel investors. However, instead of adding an additional 120 days onto the funding process, CompTIA supports an amendment that would simply disqualify “bad actors” as determined by Federal and State authorities.
“These amendments will ensure that high growth small businesses and entrepreneurs have access to a strong pool of angel capital and that investors are better protected from fraud,” said CompTIA’s Hyman.
Supporters of these provisions say they are intended to protect angel investors from risky investments. Welch says it’s true that angel investing is risky, but “Calculated risk-taking has allowed the United States to become the most innovative society in the world.”
See also:
Nine national associations concerned about reform bill
Angel Capital Association Supports Amendments to Reform Bill
ACA Joins NVCA in concerns on reform bill
Tags: Angel Capital Association, angel investors, Bill Warner, CompTIA, DC, financial reform bill, NVCA, Paladin and Associates
Posted in Alabama, Arkansas, Carolinas, Energy, Florida, Georgia, Government/Defense, Internet/New Media, IT, Kentucky, Legal, Maryland, Money, North Carolina, Other SE, Potomac, Tennessee, Virginia, Washington, DC, West Virginia | 4 Comments »
Wednesday, April 28th, 2010
 WASHINGTON, DC – The U.S. high-tech industry lost 245,600 jobs in 2009, for a total of 5.9 million workers. This recession-induced, four percent decline in tech employment is slightly lower than the five percent decline experienced by the private sector as a whole and follows four years of steady growth in tech industry employment.
TechAmerica Foundation‘s 2009 quarterly breakdown revealed a bright spot amidst the losses – software services added 10,100 jobs in the fourth quarter, growing by one percent. Not only that, at TechJournal South we found that many venture-backed companies are hiring (see: Job Hunting?) even as larger firms such as IBM continue to shed jobs.
“While it weathered the storm better than the private sector at large, the U.S. high-tech industry clearly felt the effect of the recession in 2009,” said Christopher W. Hansen, president of TechAmerica Foundation. “Every corner of the industry experienced job losses, though software services, which helped tech hold up longer than most at the recession’s onset, saw growth in Q4 2009.”
Every high-tech sector saw employment losses in 2009. Of the 245,600 jobs lost, 112,600 were in manufacturing, concentrated in sectors like electronic components and semiconductors. Space and defense systems manufacturing was least affected with employment declining by 0.5 percent, or 1,200 jobs.
Engineering and tech services also saw a net loss of 59,000 jobs, as did communications services, shedding 53,000 jobs. Software services experienced the smallest decline, losing 20,700 jobs, or one percent.
Cyberstates 2010 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2009 national data on tech employment as well as 2008 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration.
Tech America CEO and president Phil Bond warned that DC policy makers need to take decisive action to fuel a full tech job recovery.
“Without decisive action, policymakers in Washington might not see the recovery that we’re all hoping for,” said Bond.
“Washington could help put more of America’s brightest minds to work by enacting a comprehensive innovation agenda. We continue to look for leadership in key areas like tax policy, broadband deployment, and workforce to support the creation of more well-paying tech jobs across the country.”
www.techamericafoundation.org
Tags: 2009, Tech America Cyberstates reports, tech jobs
Posted in Alabama, Arkansas, Carolinas, Florida, Georgia, Kentucky, Maryland, North Carolina, Other SE, Potomac, South Carolina, Studies, surveys, reports, TechJobs, Tennessee, Virginia, Washington, DC, West Virginia | Comments Off
Friday, April 9th, 2010
 FRANKLIN, TN – MyOutdoorTV.com, a site providing videos about hunting, fishing and shooting, has hooked nearly $1.3 million in equity, according to a regulatory filing.
The company serves up hundreds of well known outdoor television shows including Bill Dance Outdoors, Hank Parker Outdoors, Fishing with Roland Martin, Mark Sosin’s Saltwater Journal, Larry Csonka’s North to Alaska and Jimmy Houston Outdoors on demand.
The site provides tips on such things as how to handle a hunting dog who is also a home pet, offers a knot library, fishing and hunting tips, and news about those activities.
Considering that the last time we tied any knots, we were 16 and in the Boy Scouts, a knot library sounds like a good idea. We wonder if any of the site’s users actually access it from wilderness areas?
The company disclosed its equity raise in a filing with the U.S. Securities and Exchange Commission. It cites 13 investors in the round.
It also provides a free online newsletter.
It appears to be primarily advertising supported.
Tags: financing, Internet/New Media, Tennessee
Posted in Internet/New Media, Kentucky, Money, Other SE | Comments Off
Friday, March 19th, 2010
By Allan Maurer
 OAK RIDGE, TN – Meritus Ventures is the only venture capital firm between Cincinnati and Atlanta and between the NC Research Triangle and Nashville, says Grady Vanderhoofven, a partner and fund manager with Meritus. “It’s a big, wide open, tech rich area in a capital starved region,” he says.
Meritus is a Rural Business Investment Company established in 2006 in response to the creation of the Rural Business Investment Program by the U.S. Department of Agriculture, Meritus is a $36.5 million fund that invests from $250,000 to $2.5 million in rural areas of central and Western Appalachia. “One million is the sweet spot for a first bite for us,” says Vanderhoofven, “and we might invest $2.5 million over time.”
The competitive advantage of tech
The fund’s roster of investors includes a number of banks and several private financial institutions, including member institutions of the Farm Credit System, several large foundations, a number of high net worth individuals, and regional stakeholders such as the University of Kentucky, the Appalachian Regional Commission, and the Tennessee Valley Authority. In addition, the fund is partially capitalized via the sale of debentures guaranteed by USDA.
“We’re generalists and we’ll look at most things except life sciences,” says Vanderhoofven. “We like technology and the competitive advantage technology can provide,” he adds. So the firm looks at firms in IT, software, medical devices, diagnostic tools, and semiconductors.
Working in a captial-starved region has its advantages. “We don’t have to fight over deals,” says Vanderhoofven. “We just look and sift.”
The fund’s portfolio companies include Greenville, SC-based Zipit Wirelss, which develops and makes wireless communication and entertainment devices that allow consumers to access the Internet; SinglePipe a facilities-based Voice over Internet Protocol (VoIP) provider that delivers residential and business services to the wholesale and channel markets; Kentucky-based Wazoo sports.com; and Oak Ridge-based Aldis, which focuses on the transportation logistics and advanced infrastructure management markets.
Oak Ridge Labs getting huge funding
 Grady Vanderhoofven Vanderhoofven tell us he previously worked at Oak Ridge National Labs, first as a materials engineer, then in its tech transfer office. “That’s what led me into this,” he says. “I became enamored of spinning out Oak Ridge Lab technology.”
But, he says, companies would spin out, then go where they found a source of capital, landing in Austin or San Diego or Long Island.
“So this is an effort to establish a local source of venture capital with the idea that we can capitalize on some of the technical resources in the region.”
He points out that there is a “huge amount of money flowing into Oak Ridge National Labs right now. They’re receiving something like a billion dollars from the stimulus package and building new one-of-a-kind facilities. You wouldn’t recognize it from five years ago.”
But Oak Ridge isn’t the region’s only source of technology expertise. There is also the University of Kentucky, the University of Tennessee, Virginia Tech, Vanderbilt, the Army Missile Command at Huntsville, Alabama, and more.
Fund shifted from early to expansion stage firms
Vanderhoofven says Meritus “plays will with others” and prefers to co-invest and isn’t opposed to deals that include angel investors.
“Historically we have been early stage investors, but in the last year or so we migrated toward more expansion stage investing.”
Early stage investing, he says, “Is a riskier proposition than it was five years ago, so we migrated to the expansion stage where some of the risk is taken out.”
That follows a trend we have seen from venture capitalists generally in the last several years.
Over time, however, Vanderhoofven says Meritus may “Swing back to earlier stage investments.”
For those entrepreneurs in Western North Carolina lo0king for funding, here’s a tip: “We’d like to do a deal in Western NC, but just haven’t found the right one yet,” says Vanderhoofven.
www.meritusventures.com
Tags: Kentucky, Meritus Ventures, NC, SC, Tennessee, venture firms
Posted in Carolinas, Company Profile, IT, Kentucky, North Carolina, Other SE, South Carolina, Tech Transfer, Tennessee, West Virginia | Comments Off
Wednesday, February 17th, 2010
 LOUISVILLE, KY – A lot of company data floats in the cloud in Google docs, Gmail, Twitter, and WordPress blogs these days, so its no surprise that Backupify landed a $900,000 seed round only seven months after launching.
First Round Capital led the financing. Investors also include General Catalyst Partners, Betaworks and individuals, Chris Sacca, Jason Calacanis, Andy Swan and Bob Saunders.
Backupify is an online data backup and storage provider that enables users to backup their cloud accounts seamlessly to the Amazon S3 cloud.
Right time to expand
Backupify, which launched in June 2009 with a consumer focus, now provides storage for businesses to backup their critical cloud data. The company was founded in November 2008.
“With businesses moving their critical data to the cloud, the time is right for Backupify to expand its services,” said Josh Kopelman, founding partner at First Round.
“Backupify’s consumer offering has seen tremendous adoption and the company’s expansion will give businesses customers a key benefit that had been missing from the cloud—complete control of their key information.”
Control of data an issue
Much of the data users generate today is not stored on personal computers; users have data locked up in Gmail, Facebook, Twitter, Google Docs, Basecamp and other online services.
We wondered, though, why companies would worry about backing up cloud data, when generally, it is backed up. The company says that while most business users aren’t concerned about losing this data, they are concerned about losing control of it, the company says.
Threats such as hacking, SLA issues or even data loss due to user error further compound their concerns.
Beyond control, there is the issue of compliance: industries such as financial services must meet stringent requirements for archiving all employee communications.
“The move to the cloud is something that most companies see as a mixed blessing. The benefits are obvious, but the loss of control of company data can be daunting,” said Rob May, the CEO and co-founder of Backupify.
“C-level executives at prospective customers have told us that while they trusted that backups of their critical data were happening, they would still feel more comfortable if they had a copy of the data that they themselves controlled, and would be willing to pay for that peace-of-mind.”
Previously Backupify raised an angel round from Dharmesh Shah, CTO of Hubspot; Sean O’Leary and Sterling Lapinski, Co-Founders of Genscape; and Vik Chadha, Co-Founder of Glowtouch.
Backupify
Tags: Backupify funding, data backup for cloud apps, First Round Capital, General Catalyst, IT, Kentucky
Posted in Internet/New Media, IT, Kentucky, Money, Other SE | Comments Off
Wednesday, December 23rd, 2009
 CHARLOTTE, N.C. & FORT LAUDERDALE, FL – We see Peak 10, the Charlotte-based managed services and data center company is continuing its steady growth through acquisition strategy. The company has acquired South Florida-based 1Vault Networks, a data services provider.
Financial details of the transaction were not disclosed, but 1Vault’s 66,000-square-foot facility will now operate as Peak 10 South Florida.
Peak 10 says it will immediately make significant investments for data center infrastructure enhancements, the managed services portfolio expansions and adding technical expertise to the team.
“We have built a relationship with 1Vault over the last several years and respect the operating philosophy established by its management team,” said David Jones, the president and CEO of Peak 10.
Over the last three years, Peak 10 has expanded into the markets of Cincinnati, Ohio, Richmond, Va. and Atlanta. During the same time period, Peak 10 has invested millions of dollars into its current facilities and added additional enterprise-class raised floor space in its Raleigh and Charlotte, NC; Nashville, TN.; Tampa and Jacksonville, FL; and Louisville, KY. markets.
Peak 10 also get 1Vault’s dedicated server brand, Bocacom in the deal.
Peak 10 won recognition as one of the best places to work by Florida Trend Magazine and is a finalist for the national Stevie award in the sales and customer service category.
The company owns and operates data centers in ten key markets, all but the one in Cincinnati in the Southeast.
Online: www.peak10.com
Posted in Acquisitions, Florida, Georgia, Internet/New Media, Kentucky, North Carolina, Tennessee, Virginia | Comments Off
Friday, December 18th, 2009
 LOUISVILLE, KY - Beacon Enterprise Solutions Group Inc. (OTCBB:BEAC) not only nabbed a $3.3 million private placement of restricted stock and warrants, it says it has signed a series of new contracts worth more than $50 million. The company sells technology and telecommunications services, from software development and infrastructure design to interconnect voice/data and systems integration.
Recently announced deals include a three year information transport systems infrastructure management agreement with a Fortune 100 pharmaceutical company valued at approximately $27 million, the design and construction of a data center in Zurich valued at over $24 million and an engagement to provide outsourced IT management solutions to Hitachi Cable Indiana.
Beacon’s client roster includes state and local agencies, educational institutions, and over 4,000 companies ranging in size from mid-sized companies to the Fortune 500.
Online: www.askbeacon.com
Posted in IT, Kentucky, Money | Comments Off
Thursday, December 17th, 2009
 WASHINGTON, DC – We’ve heard many entrepreneurs complaining that venture capital firms have been putting most of their money into their portfolio companies and not new investments during the economic downturn. Don’t expect a lot of change next year. While VCs surveyed by the National Venture Capital Association this month see gradual improvements in their “ecosystem” in 2010, most respondents expect to pour still more dollars into their portfolio companies.
The VCs do see some bright spots, particularly in clean technology investing, growth equity and later stage companies, but that’s a tune they have been singing all year.
Only 18 percent expect to pump less money into portfolio companies in 2010. A third say they’ll invest in the same number of portfolio companies next year, while 49 percent expect to invest in more portfolio companies.
The survey also made it plain that VCs expect their industry to contract.
“It is readily understood by the venture capital community that our industry is going to contract in size going forward,” said Mark Heesen, president of the NVCA. “That will mean fewer firms,for sure, but not necessarily fewer companies funded. There is a great deal of innovation taking place and venture capitalists who have the track record to raise funds will be well positioned to build companies. Most venture capitalists will agree that a smaller industry is a better one.”
Clean Technology is the industry where most VCs predict growth with 54 percent forecasting higher investment levels in 2010. lean technology That’s why clean technology is a focus of this year’s upcoming Southeast Venture Conference Feb. 24-25 in Tysons Corner Virginia (see www.sevneture.org for more information).
Other favorable industries according to the NVCA survey, include Internet (46 percent predicting higher investment levels), Media and Entertainment (33 percent) and Software (32 percent).
Respondents divided over biotech investing with about the same number expecting an increase as those expecting a decrease. Medical devices fare a little better, with 38 percent seeing investment levels staying about the same and a third each seeing either an increase or decrease.
Most VCs (64 percent) expect a decline in semiconductor investing. More surprising is that many also think the wireless sector will see lower levels of investment as well.
Slightly more than half the VCs surveyed think growth equity and later stage companies will see increased investments next year, while only 45 percent see increases in early stage and seed investing.
“Of all the predictions put forth this year, a collective lack of enthusiasm for seed and early stage investing is the most concerning,” said Heesen. “The weak exit market combined with proposed tax policy which would discourage long term investment puts tremendous pressure on our industry to move towards later stage investing.”
The VCs expect widespread industry contraction, with 87 percent predicting that funds raised in 2010 will be smaller than previous ones.
An overwhelming percentage of VCs (90 percent) predict that the number of venture capital firms will decline over the next five years. Most of these respondents (72 percent) believe the industry will contract between one and 30 percent.
“The consolidation of the venture industry will not occur overnight,” said Heesen. “This process will be a gradual one as fewer firms than has been the case historically will be able to raise funds. Those funds that are raised will generally be smaller and over time, the firms will contract accordingly. Venture capitalists will have to do more with less.”
Read selected responses here:
www.nvca.org/predictions2010_quotes.pdf.
For complete survey results including charts, see: www.nvca.org/predictions2010_presentation.pdf
Posted in Alabama, Arkansas, Energy, Events, Florida, Georgia, Internet/New Media, Kentucky, Maryland, Money, North Carolina, South Carolina, Tennessee, venture capital report, Virginia, Washington, DC, West Virginia | Comments Off
Tuesday, December 15th, 2009
 TYSONS CORNER, VA – The 2009 Southeast Venture Conference (SEVC) has extended the deadline for presenting company applications until next Monday, December 21st. The 4th annual event is scheduled for February 24-25, 2010 at the Ritz Carlton in Tysons Corner, Virginia.
The conference is seeking high growth, innovative companies from a vast variety of technology industries including Clean-Tech, Energy, Software, Communications, Medical Devices, Information Technology, Life Sciences, Nanotech, Mobile, Internet and Defense among others.”
The conference will feature a wide range of presenting companies, from late stage Pre-IPO firms to younger high growth technology companies.
The Southeast Venture Conference is expected to feature dozens of the region’s top high growth private companies. Presenting companies will be showcased before a regional and national audience of venture capitalists, private equity investors, angel investors, investment bankers, entrepreneurs and the technology industry executives. Presenting companies will be headquartered or have a significant presence in the Southeast and Mid-Atlantic region.
Over the three previous events, the Southeast Venture Conference has sold out each year, while showcasing dozens of the region’s fastest growing companies to an audience representing over $150 billion in private equity.
Additional details on presenting or registration information can be found at www.seventure.org
Posted in Alabama, Events, Florida, Georgia, Internet/New Media, IT, Kentucky, Marketing, Maryland, North Carolina, South Carolina, Tennessee, Virginia, Washington, DC | Comments Off
|
