Texas Wireless Summit 2008

Wireless Seedstage ForumThe Texas Wireless Summit is coming October 14-16, and you can get a $100 discount using the code TWS08100 when you register. If you’re into wireless and live in Texas, this is the event to attend. Where else can you see the CTO of AT&T and the President of Nokia speak?

One of the most interesting parts of the summit is the Wireless Seedstage Forum, where wireless entrepreneurs and young companies from around the world can come to pitch their companies to experienced investors. The forum is on the first day of the summit, and interested companies can apply on their website.

Q&A Wednesday : Piryx

Piryx LogoToday’s Q&A Wedensday is with Tom Serres, founder of Piryx. The company will be launching their piryx.com and realpolitix.com websites on Friday with the goal of making technology accessible for political candidates.

How did you first get the idea for Piryx?
Piryx began as an idea three years ago when I realized I wanted to make a difference. I guess you could say I was tired of being a bystander watching the political process pass me by—I wanted a stake in the game. As an undergrad attending the University of Texas McCombs School of business, I decided to get involved—to make a change.

It began with a Judge, passionate about making a difference. Her name was Angelita Mendoza Waterhouse, a sweet woman asking if I would voluntarily help her run her campaign. I was so excited; I mean, what better way to get involved? I went in full throttle, I believed in her—and people like her. People who had a genuine passion to help others.



The rest is history. The frustration, and the miles of red tape inspired me to find ways to help others like Judge Angelita. I was tired of seeing great candidates fail purely on the premise of social inequality. She wasn’t a “good ‘ol boy.” She was a woman of conviction, passion, and unconditional love. And her passion convinced me to make a change in this country.



From there Piryx was formed. My band of brothers, Greg, Brian, Naveed and I, teamed up to offer solutions for average people interested in public service. We chose the Internet because we knew it was the new frontier of political technology.

Today, Piryx is focused on delivering efficient and economical web solutions to political entrepreneurs. We want to empower all who have a passion to serve with the tools to realize their potential. Some of the computer stuff we use everyday can revolutionize politics. We’re sharing that, and some of our own tricks, with the average political entrepreneur.



Give us the elevator pitch for Piryx?
Piryx is a community, an online medium focused on providing tools to empower the average political entrepreneur. Imagine if we could offer every political entrepreneur the technological infrastructure of the Obama campaign—in a universally user-oriented way. Take the tools of Google, the infrastructure of PayPal, and the social medium of Facebook—and you get Piryx.

How has the company been funded so far, and are you seeking any additional funding?


Piryx was bootstrapped by doing consulting for candidates to enable online outreach strategies. We developed our new system in between gigs, on the weekends, and in the evenings. After making some headway through the Houston Angel Network and UT’s social innovation competition, we were backed by an investor here in Austin. We’re currently preparing for our beta launch and actively seeking our first Series A.



What was your first “a ha” moment, when you knew you were on to something really good.

I guess you could say there were several “a ha” moments over the last few years. Most importantly it began with the judge, and experiencing the complications in helping her campaign for public office. At that point I realized, this woman couldn’t be the only one experiencing these problems. As we began working with more and more campaigns, we realized others were experiencing the same hurdles.

The next big moment came as we began developing and pitching our first business plan, not to mention what was going on in the political community. What Joe Trippi and Howard Dean began with their use of meetup.com and online fundraising, the field of politics was experiencing revolutionary moments in politics as Obama, Hillary, Romney, and McCain began utilizing advanced technologies and social media in their campaign…Suddenly our business idea soon became quite a bit more relevant. The revolution, as Joe Trippi called it, was now in full swing.

Our mission is to ignite much needed involvement among the voter community, while allowing candidates at all levels to have the tools and information they need for an equal chance on Election Day.

If we can help make politics accessible and exciting again, we’ve done our job.



What can we expect to see in the future from Piryx?
We will soon launch our Piryx.com vision site and Realpolitix.com, a non-partisan political blog about the technological revolution occurring in politics. Realpolitix.com is Piryx’s first step in empowering democracy as the company aims to emerge as the leader of content and solutions that change the way people experience the election process.

Realpolitix.com will provide emerging insight into real world political events, the evolution of technology in the political process, and a non-partisan approach to current political news. Also The Piryx.com vision site is a community that will allow members to stay current on Piryx news and events, provide blog content, and be a part of the technological movement in politics. Additionally, we’ll be launching several additional solutions throughout the presidential campaign season including an automated filing system for campaign ethics compliancy and reporting. Piryx.com will offer visitors an opportunity to request access to our beta environment. This will give a glimpse into tools that will assist them as they drive through the campaign process.

As for the future…only time will tell, but if history tells us anything…it looks really good. Piryx will be at the forefront of this, leading the renovation and restoration of politics. We’re moving into a world where online voting and virtual town halls are real possibilities. Who would have thought 4 years ago John Edwards would be advertising online in Second Life or Congressman John Culberson would be twittering from the house floor. What’s happening is truly amazing – revolutionary. As this cultural change shifts, Piryx will lead the way.

New Director for ATI Biosciences Initiative

Jessica HanoverThe Austin Technology Incubator has created an additional focus in the area of Bioscience, and hired Jessica Hanover to be the director of the initiative. Bioscience is now the third area of vertical focus for the ATI, joining clean energy, and IT/wireless.

There is one company in the bioscience incubator so far, Terapio, which is focused on theraputics around a particular protein that can make cells deals with toxins better. Terapio was one of two companies that recently received funding from the Texas Emerging Technology Fund (ETF).

Over the next 12 months the bioscience initiative is looking at a two-part strategy. Part one is to develop and grow a solid bio-related environment here in Austin that is friendly toward key people such as investors, entrepreneurs, scientists, and engineers. The second part is focused on practical things like helping to start companies, getting funding, creating a business plan, and hiring talented people.

Before coming to Austin Jessica was living in San Francisco, doing consulting work with Fox Hollow Technologies in Redwood City in the areas of internal strategic planning, and pipeline management. She was also previously a technical stock analyst in the biotech space with Robert W. Baird.

Inc. 5000 Austin Tech Companies

Inc. Magazine has released their annual list which used to include the top 500 private companies, but for the second year has expanded to 5000. There are 378 Texas-based companies in the list, which means 7.5% of the fastest-growing private companies are in Texas. In browsing through the list, here’s the Austin-based tech companies that we pay attention to that made the list:

  • Adlucent (336)
  • Apogee Search (368)
  • ProfitFuel (461)
  • Ascendant Technology (469)
  • Teksavers (600)
  • Medical Present Value (MPV) (784)
  • Creditcards.com (787)
  • Anue Systems (900)
  • Convio (965)
  • Affiniscape (976)
  • NetSpend (1000)
  • ROME Corp. (1153)
  • Rules-Based Medicine (1409)
  • Powered (1853)
  • RenewData (1867)
  • SolarWinds (1979)
  • Catapult Systems (2309)
  • VirTex Assembly Services (2358)
  • QuickArrow (2595)

What companies are notably missing on this list? One glaring omission is HomeAway. Any others? Comment here, or in our FriendFeed room.

 

SailPoint Adds $6.5M from Existsing Investors

Sailpoint TechnologiesAustin-based SailPoint Technologies [jobs] is announcing that they have raised an additional $6.5M in a Series C financing from existing investors Austin Ventures, Lightspeed Venture Partners, Origin Partners, and Silverton Partners. Austin Ventures general partner John Thornton describes the round as “oversubscribed,” and all previous investors added to their position this round. This brings the total raised to $20.5M so far. The funds will be used to expand sales of their Compliance IQ product in Europe. The company recently opened an office in London as a base for their European operations.

SailPoint, one of the Austin Emerging 100, creates identity governance solutions to reduce the complexity, costs and risks associated with controlling and managing user access to sensitive applications and data – issues that are front and center for organizations worldwide. Recent events in Europe, such as the 4.9 billion euro loss at France’s Société Generale, where a trader bypassed internal trading controls, have focused attention even more intensely on strengthening security and compliance processes.

SailPoint has solidly established itself in European markets and was recently named a finalist for Kuppinger Cole’s “Best Innovation” category in the European Identity Awards. SailPoint’s growing customer base in Europe and North America includes five of the world’s top 12 banks and three of the largest insurance companies, in addition to clients in manufacturing and other industries. SailPoint also has a growing international distributor and implementation partner network, including four European partners: KOGIT in Germany, and Enline, IM Global and Pirean in the UK.

“Our presence in Europe is being driven by the need to address security and privacy risk,” said Mark McClain, CEO and co-founder of SailPoint. “We see very strong customer requirements in this area across all countries and industry sectors. With this additional funding, SailPoint will be able to address the unique customer requirements of the European market by expanding both our direct sales and channel sales capabilities.”

Innography Banks $6.5M Series A

Austin-based Innography landed $6.5M in Series A funding, and a high profile news article in the Austin American Statesman on Monday. Innography has created a product that allows companies to manage their patents. The company counts Hewlett Packard among their first 25 customers. The funding came from Austin Ventures and Hunt Ventures, with Hunt providing their initial seed investment of $800,000 about a year ago.

The market for Business Intelligence (BI) is pretty hot right now, and finding ways to understand, manage, and make money from your intellectual property (IP) portfolio is a hot button for company like Hewlett Packard (one of their first customers). Founder Tyron Stading was most recently at IBM, which has a vast IP portfolio, and that’s where he got the idea for Innography.

“Innography has developed a compelling product that gives organizations an insightful, strategic view of the IP landscape for capitalizing on growth and revenue opportunities,” said Chris Pacitti, general partner at Austin Ventures and Innography board member. “We believe Innography is extremely well positioned for long-term success as they simultaneously enable their customers to do the very same.”

“Innography delivers on an unfulfilled need by organizations to better comprehend, evaluate and leverage the true value of their IP,” said Steve Coffey, managing director at Hunt Ventures and Innography board member. “As the IP landscape continues to evolve, Innography will be able to provide the critical insights and vision these organizations require to remain innovative and successful.”

Innography was founded in 2006 with the awareness that the entire intellectual property ecosystem was changing – IP was becoming a primary currency for many R&D centric companies realizing they could generate millions in revenue by licensing their IP to others. The Innography business intelligence software platform was developed as the optimal solution for companies to address critical business questions pertaining to strategic management of their IP assets.

“The momentum we’ve been experiencing is proof that an IP paradigm shift is taking place,” said Tyron Stading, founder and CTO of Innography. “Organizations are realizing intellectual property is a strategic asset versus something locked away in a file cabinet, and Innography is the key to them discovering untapped possibilities.”

“The overwhelmingly positive reception we’ve received for our product is a testament to the development effort and market validation invested by Tyron and the entire Innography team,” said Rob Lynch, CEO of Innography. “We’re excited to have Austin Ventures and Hunt Ventures on board as we continue expanding our global footprint and industry leadership.”

Stealthy Startup Hourville

Hourville LogoWe’re just starting to see a few details emerge about a stealthy new startup in Austin named Hourville. They’re looking for a hot PHP developer, by the way. From that job description we get a glimpse of what the company is up to. “We have created a unique web marketplace built around a core time-based transaction platform for anything that can be bought or sold “by the hour”. The product synthesizes many of the best components and conventions of Web 2.0 – technical, stylistic, social and community – into a useful, simple, functional and fun tool with a defined immediate revenue model that does not depend for a single cent on advertising. We are preparing for a closed beta of the product in the next two to three weeks, taking it live shortly thereafter.”

Sounds pretty darn cool. It’s great to see more B2C, consumer-facing websites coming out of Austin. When you’re ready to sign up some people for the closed beta, we’ll be happy to spearhead giving away some beta invites here on the blog. If you’re interested in applying for the position, email them here.

Small World Labs Inks Scottrade Deal

The new social networking community at Scottrade (http://community.scottrade.com/) is being powered by Austin-based software company Small World Labs. The new community will allow Scottrade customers to interact through discussion groups and blogs, and share trading ideas, strategies, spreadsheets and analysis. The social network site will also allow the community to provide feedback to Scottrade product specialists who develop the trading platforms, giving customers a voice in the product roadmap.

Scottrade’s Online Community launched quietly in April to select customers and is now open to all Scottrade customers. The Community is part of the firm’s overall strategy of providing more investment information and resources to its customers so they can be more successful investors and traders.

“Scottrade’s Online Community is a complement to our offline education efforts and further solidifies our commitment to educating our customers so they can make better-informed investment decisions,” said Kevin Dodson, Director of Online Financial Services at Scottrade. Scottrade customer Wendy who goes by “mrscashflow” said, “Being connected with a friendly Community like Scottrade’s has been very refreshing. I found Scottrade’s Community to be a very inviting place to hang out and it’s easy to get around the neighborhood. It is a friendly group of people that are serious about making money in the stock market.”

More TechCrunch50 Flap With a Texas Twist

Back in April we wrote a piece titled Let the War For Startup Attention Begin. The fluff began when DEMO and the TechCrunch50 conferences, both aimed at launching startup companies, were scheduled on the same days. Jason Calacanis has been viewing the pitches from hundreds of companies who want to launch at the TechCrunch event, and yesterday published a great piece on the do’s and don’ts of demoing your software. Alex Muse over at the Texas Startup Blog was as impressed with this advice as we were, and reposted the entire text in a blog posting titled Jason’s demo advice for startups. A reader of Alex’s blog is claiming plagarism (of Jason, not Alex), and everyone from Jason Calacanis to Chris Shipley is posting comments.

Alex will have a record week of blog traffic!

Bootstrapping a Business in the Freemium Model

On the Austin Bootstrap messaging boards, there was recently a discussion of free and “freemium” business models. Richard MacKinnon of LessNetworks had a very thoughtful response based on five years of running this type of business model. We asked Richard for permission to re-publish here.

Thoughts on the Free Model

  1. In the early days of free WiFi (over 5 years ago!), we bent over backwards to give away hardware, labor, and services for free. This seemed noble, community-oriented, business-friendly, and philosophically right-on. The reality is that many “customers” took us for granted and
    didn’t properly value our time, our stuff, or our services.
  2. We learned the story of the old sofa set on the curb: When the sign on it said “free couch,” it just sat there. When the sign was changed to “$25 couch,” the sofa was stolen within an hour. We also read the study where patients who paid $10 for a placebo were more satisfied than those who got it for free.
  3. Giving away stuff for free makes people suspicious of your ulterior motives and also brings the viability of your business model into question. You find yourself in the odd position of not only persuading people to take your stuff for free, but offering guarantees that you’ll continue to do it indefinitely! Yuck.
  4. In contrast to the “customers” who don’t value your good will, there are the super-leeches who not only want what you’ve got for free, they consume it voraciously, and they want more, but they’ll resist any effort to upsell them on “freemium” services.

What To Do?

First of all, the customers in Point #1 either disappeared anyway or have managed to linger-on but not really knowing what we do for them because we don’t have a billing relationship that legitimizes us in their eyes. It’s also incredibly hard to suddenly start asking them for money for stuff (or different stuff) they didn’t value in the first place.

The customers in Point #4 are obviously still with us and provide us with plenty of material for case studies, R&D, and marketing.

We’ve stopped wasting our time on customers in Point #3–my mantra: “I’ve gotten out of the business of twisting your arm to provide services to you for free.”

We’ve developed a dramatically tiered set of service plans designed for the customer psychological profile and/or budgets categories we’ve encountered:

Cheapskates/Skeptics/Barely Surviving Businesses/Non-Profits/Charities

Still essentially free. You get our basic set of services for free for a year. If after a whole year you decide that you value what we do for you, then you continue to use the services for next-to-nothing (but not free!). The key is to assign value with a dollar amount. If the customer is not willing to meet this number, then you should probably chuck them unless you get some other indirect benefit from the customer. We’ve found that most of these folks don’t last the year anyway, so there’s no point in trying to upsell them prematurely. If they self-select and stick around, chances are you’ll have an easier time upselling them. Although Non-Profits and Charities fit into this group, they’re typically here for budgetary reasons, not psychological. Why a whole year? Because we’re softies and deep in our hearts, we still want to give stuff away for free. Our stats show that we could vet this group with just 90 days.

Prudent-Spenders/Value-Shoppers

These are the customers that are willing to pay for freemium services, but only to a point…and they’re likely to bail if the competition comes out with something cheaper, or if you in any way tick them off. The key here is to be willing to match on price (if it makes sense) and offer satisfaction guarantees. Because they’ve paid you (and they know that most customers haven’t), some of them will expect Red Carpet treatment, which can get costly–so beware. Most of freemium business comes from this group and they also supply lots of launch points into the next group.

Quality-Conscious/Branding-Controllers

These are the big ticket customers. They heard about you via word of mouth or they may have even used your service personally as an end-user. They have decent budgets and they want the world. While they are not as interested in cutting corners to save money, they will dangle the potential deal size to reduce your margins. They have lots of concerns about whether a company that gives away stuff for free or sells it relatively inexpensively can provide them with a quality service that they are willing to pay for. You’ll end up encountering a few of these a year. They’ll take up lots of time with conference calls, presentations, and pilot projects. Some talks will go on for years. A single closed deal of this type will boost revenues by 1000% because most of your customers pay nothing, next to nothing, or pay a little something but want a lot.

So to answer the question, does the Almost Free model work in the bootstrap world? It’s been working for us. We’ve had to become masters of efficiency. Clearly we’ve had to develop a service model that must cost next to nothing to operate. In many ways, that may end up being exactly what our exit is–a commercial-grade WiFi network that’s robust and gets a lot of mileage. Compared to the operations of our cash-guzzling competitors, you’d think our way of doing WiFi would look pretty interesting in cost-conscious times.