N-trig Raises $28M

N-trig LogoN-trig, the provider of DuoSense™ technology combining pen and zero-pressure touch for mobile computers into a single device, announced today that they have completed a fund-raising round of $28 million from Canaan Partners, Evergreen Venture Partners and current investors. In addition to the investment round, N-trig has recently secured a credit facility of $5 million from Plenus, a leading Venture Lending Fund in Israel. The company has its headquarters in Israel with U.S. headquarters in Austin, Texas.

N-trig’s technology is now being deployed by Dell Computer, with its recent launch of its convertible, the Latitude XT Tablet PC. Other major brands are expected to announce new products, which raises the bar on the next generation of notebook PCs and other mobile devices currently in development.

“We are very excited to become an investor at N-trig,” stated Izhar Shay, Venture Partner with Canaan Partners. “We believe that the company’s innovative pen and touch technologies position it as a market leader in this fast growing space, and we are happy to see the traction that N-trig is gaining with major computer brands.”

You can find a brief 2-minute video about the DuoSense technology here.

Q&A Wednesday; Prefinery

Prefinery LogoToday’s Q&A Wednesday is with Justin Britten and Daniel Wilson, founders of a new company named Compulsivo. Their first product is a website that helps companies manage their beta programs named Prefinery.

Q: How did you first get the idea for Prefinery, and how have you bootstrapped it so far?
Prefinery is the outcome of our own frustrations with running effective software beta programs.  We have worked in the software industry making traditional “box” software for over five years and, during this time, we’ve been a part of a number of unsuccessful beta programs.

We observed these failures and arrived at two primary culprits.  First, there is a lack of a good tool to manage and administer the program.  This includes the signup process, accepting applications, sending invitations, creating surveys, managing comments and bug submissions, and tracking software downloads and tester participation.  Second, testers participating in the beta do not give feedback, often because the feedback submission process is not effortless, and often because they are not required to complete questionnaires prior to downloading subsequent versions of the software.

In March of 2007 we set out to write Prefinery based on our experience, and to write a tool that we would be happy using.  Without quitting our day jobs, we worked evenings and weekends.  In August we stopped commuting between our homes and set up an office in a spare bedroom.  In November we incorporated, each contributing a chunk of change from our savings.  Along the way we learned Ruby on Rails, and the joys of opening and operating a business, including accounting, legal, and tax issues.  In February of 2008, after eleven months of hard work, we launched!

Q: Give us the elevator pitch.
Prefinery makes it simple to manage a beta program online, and easy to collect customer feedback through surveys, comments, and bug reports.

Prefinery saves traditional software companies time and money by taking away the hassle of coordinating testing for prerelease software. Tester activity, status, and opinions are provided in a centralized location.

Q: At what point did the two of you have an “a ha” moment and realize that you might be on to something?
By August of 2007 we finally had Prefinery in a rough, workable state and were starting to gather feedback from friends and family.  Our friends in the software field were enthusiastic and encouraging that we were providing a quality, affordable solution to a niche market.  Our family actually understood what we were doing.  It was at this point that we realized we were ready to take the plunge and turn a side-project into a product, and start a company.

Q: Any early customer successes you can talk about?
Prefinery launched less than two weeks ago.  Any takers on being our first customer success story?

Q: Would additional financing help you grow the business faster?
Financing would certainly help us grow the business faster; however, we have always enjoyed the idea of being bootstrapped and remaining in control of the direction of our company.  This would be a difficult decision and, ideally, an investor would bring strengths, such as industry experience, to the table in addition to cash.

Q: What else might we see in the future from Compulsivo?
We have so many ideas.  You will certainly see more Web-based tools for small to medium sized businesses in the future  This is our demographic now, and we’ve seen lots of areas desperate for innovation while trying to get our own business off the ground.

Powered and Mirage Networks Claim Record 2007

This is the time of the year when the Austin-based private companies announce that they had record results in 2007. As private companies they never seem to release actual sales figures (except for Zilliant), but they usually express results as percentages. This week we saw results from Powered and Mirage Networks.

  • Powered creates online consumer learning programs for companies such as HP, Epson, Motorola, and Sony. The company claimed a “record year of growth and expansion” but didn’t elaborate further.
  • Mirage Networks provided many more details. They announced 219 new deals with 30% quarterly growth for every quarter in 2007. Sixteen of their deals were six-figure deals, which helped to contribute to an inrease in average deal size of 52%. Mirage sells patented network access control solutions.

Red Hat Exec Joins FiveRuns

FiveRuns LogoFiveRuns, a company that provides enterprise class management services for Ruby on Rails, announced that Todd Barr has joined the company as Vice President of Business Development. Todd previously held various positions at Red Hat including Senior Manager of Partner Development, and Senior Director of Customer Marketing. Barr will help to expand the Rails Application Management Partner (RAMP) program.

Invodo Wrapping Series A Round

Invodo LogoInvodo, an Austin-based provider of online video software and services has raised around $1.2M of a planned $1.5M Series A financing. The company provides rich media management software and services to allow companies to utilize video to engage customers. The company claims that rich, video-based product information will decrease abandonment rates for online retailers and also decrease return rates. The company touts online exercise equipment company SPRI as an early customer, and you can view product videos using Invodo’s software and services at their website.

Investors in this round so far include Sevin Rosen Funds and S3 Ventures. S3 closed their first fund in February of 2007, and is led by former Crossroads founder Brian Smith.

Spiceworks Featured on CMP's bMighty.com

Spiceworks LogoAustin-based Spiceworks, a provide of ad supported IT management software, announced that they are releasing a co-branded version of the Spiceworks product for users of CMP’s bMight.com website. The bMighty website is a CMP community site focused on IT professionals in the small and mid-sized (SMB) category. If you visit the website, you’ll see a link for Free Tools at the top of every web page. If you look at their free tools page, Spiceworks is the top item in the list.

Spiceworks is continuing its rapid pace, propelled by an $8M series B financing toward the end of 2007. You can see our Q&A Wednesday feature with Spiceworks here.

Thursday Thoughts

It’s a little light on the Austin tech news right now. If we don’t start hearing some interesting things about the emerging technology companies in town, we’re going to starting writing editorials about how silly we think it is for Freescale to announce the acquisition of SigmaTel one day, release SigmaTel earning the next day, and have the chairman of Freescale leave the day after that. We don’t write about the public technology companies in Austin much, but maybe we should? Comments?

Also for those of you in the technology companies, make sure your PR people send your news to the editor here at AustinStartup.

Lastly, I wanted to point you to two of our kindred spirits in the blog world. Alex Muse has really spruced up his Texas Startup Blog, which we’re big fans of. There’s also some great stuff going on at the Startup Houston blog, so a big shout out to Josh. Check them out if you haven’t.

PinkSlips @ Yahoo.com

It’s been a little crazy over at Yahoo lately. Microsoft wants to empty the bank account in their direction, but Jerry says it’s not enough. Microsoft could take its offer to the shareholders, but Wall St thinks Gates will up the bid. On the same day Yahoo buys another company for around $160M and gives pink slips to over 1,000 employees. No word on how Yahoo’s Austin office fared.

Imagine if Microsoft invested $45B in entrepreneurs and startup ideas. Maybe they would be funding the next big thing, rather than another Wallop.com. If YahooSoft does happen I would short it big time. In mega deals shareholder value is lost after the merge 9 times out of 10.

Pyxis Technology Extends Series B Financing $5.25M

Pyxis LogoAustin-based Pyxis Technology announced that they have extended their B round to include a strategic investment from KT Venture Group. Existing investors Austin Ventures, CMEA Ventures and Formative Ventures also participated in this round. The new funds will be used to accelerate deployment of the Pyxis NexusRoute high-performance, yield-aware auto-router announced in September of 2007.

Pyxis Technology delivers software and services to address the problems that chip designers face in the routing of nanometer-scale integrated circuits (ICs) and systems on a chip (SoCs). Pyxis NexusRoute is a high performance, yield-driven auto-router, architected for process technologies of 65nm and below.

Dell Acquires MessageOne

Dell, which has been a buying spree these past couple of months, has acquired a company in its own backyard, MessageOne. MessageOne, a provider of services for e-mail management, archiving and business continuity, will be rolled into Dell’s Software-as-a-Service suite, for a price of about $155 million in cash. According to Steve Schuckenbrock, president, Dell Global Services, and chief information officer, “This is a valuable acquisition for Dell. MessageOne’s offerings add key capabilities to our growing SaaS-enabled services portfolio for the most critical application to businesses of any size – e-mail.”

A leader in the industry, MessageOne brings to Dell world-class technology and talent that will broaden Dell’s configurable services offerings. The company plans to make MessageOne offerings available after close to both direct customers and channel partners.

MessageOne was co-founded by Adam Dell, Michael Dell’s brother, and is owned in part by two investment funds, Impact Venture Partners and Impact Entrepreneurs Fund, managed by Adam Dell.

Once again, this is great news for Austin, both through a local startup seeing a successful exit, and that Dell is continuing in its acquisition mood!

[Congratulations to Satin, Paul, and Mike. You guys deserve it. You were a shoe-in for Ernst & Young's Entrepreneur of the Year this year, and when you get acquired I don't think you qualify anymore! --Editor]