Q&A Wednesday :: Affinegy

affinegyToday’s Q&A Wednesday is with Melissa Simpler, CEO of Affinegy.

Give us the elevator pitch for Affinegy. How long has the company been around?

Affinegy makes software that removes networking complexity for consumers who wish to lead a converged Digital Lifestyle, and enables service providers to maximize revenues and profitability in the Digital Home. Our solutions deliver the “it just works” consumer experience that enables mass market adoption of video, data and voice services delivered through IP networks, uniquely spanning existing, new retail and custom networking equipment. Market-leading service providers across North America and the UK, including Charter, Cox, Clearwire, Time Warner Cable, Virgin Media, are deploying Affinegy solutions as the foundation of their Digital Home services.

Affinegy was founded March 2003 and is headquartered in Austin, Texas.

Growing and profitable is not exactly normal in today’s economy. To what do you attribute your success?

First, we are benefiting from the pervasive use and increasing utility of the Internet. A June 2009 study from Pew Research Center found that consumers are twice as likely to have cut cell phone or cable TV service in place of cancelling their broadband, and further that consumers resort to reduced travel and eating out expenditures before cutting Internet service.

Second, our current customers – broadband service providers – are facing new competition from an inflection in the Internet being increasingly used to distribute and stream video content. Over the top competition from players like Hulu and Netflix is fierce and several other eco players like Boxee and Sezmi are providing content and service solutions that enable the consumer to cut the cord from cable and DSL.

Broadband service providers need to step up to deliver more than “the pipe”. They are realizing this and taking action. Their core asset – the IP data network – is what serves up the Internet. They own the branded content. They’re in position to assert their brand as “trusted advisor” of the consumer’s growing digital lifestyle, and are embracing this market opportunity with our solution.

It’s great to see a woman tech CEO. What is your take on how to encourage more women in tech, especially entrepreneurs?

Thank you. I frequently refer to myself as the “accidental entrepreneur” as I had my career sights set on executive management in the Fortune 500 ranks. I caught the broadband bug while on intrapreneurial assignment with Motorola. That business unit was wound down in the post 2001 bubble, and I had the opportunity to start something new on the outside. I took that opportunity and never looked back.

I believe early exposure to the fun and wonder of science and math is key to encouraging more people to enter engineering and technical fields. It’s not just women that are lacking. The percentage of U.S. citizens pursuing technical degrees has decreased and continues to shrink. Mad Science camps, magnet education at Austin’s Kealing and LBJ Science Academy, Take Your Child to Work Day, Girlstart, Austin Women in Technology, and traditional mentoring by women like me to members of the community is key.

Your husband is also an entrepreneur, and founder of tech company Simpler-Webb. That has to make for an interesting home life. How do you juggle that?

Interesting indeed. Two founder entrepreneurs, two boys, no nanny …but a lot of shared understanding and empathy. We also have family that we’re close to in and near Austin.

Simpler-Webb was founded 1993; Affinegy in 2003. I learned a lot from Jeff’s early business experiences, and we compare and share our experiences with each other as our careers and businesses evolve. It’s busy, but great! I don’t know life any other way.

What is the number one constraint to your growth in the rest of 2009 and beyond?

The classic challenge businesses face that are playing in explosive growth market segments: staying focused during periods of rapid growth; growing the team with “fit to culture” and “fit to skill” front and center; and picking the right projects given the inevitable constraint of having limited resources (that most of us face).

What does the future hold for Affinegy? What can we expect to see from the company in the coming months?

We’re aiming to establish Affinegy as the “digital glue” for the mass market digital lifestyle on a global scale. It’s not just about setting up and managing computers, routers, and printers. It’s about making it all plug-and-play – game consoles, smart phones, media centers, webcams, and more. And it’s about extending the Internet and digital communications experience beyond the boundary of the home while making that home and its content and devices available anytime, anywhere.

Who is Your Business Plan Written For?

Today’s guest blogger is Corey Blahuta, the managing director for the Austin office of vcfo. The firm specializes in operational finance and accounting, HR Solutions and recruiting services for companies of all sizes. He can be reached at 512-345-9441.

I had an unusual experience the other day that I thought other entrepreneurs would find interesting and possibly instructive. I received an e-mail from a successful business owner and entrepreneur looking for some advice on software to help develop a business plan. I responded that Word, Excel and PowerPoint are what most vcfo clients commonly use when developing business plans for their ventures. But now I was curious so I also asked some questions about the new venture and suggested that factors such as the overall business model and the type of funding sources they were targeting might influence the complexity of the business plan. This is where the interesting part comes in. This individual responded that they were not actually looking to raise any money. They were simply developing a plan for a new self funded venture but wanted to go through the process and discipline of developing a business plan.

At first I was a little surprised, then a little embarrassed, and finally happy to have been part of this exchange. The surprised part comes from having met very few individuals over the years that were actively developing business plans who were not 100% solely focused on raising some type of debt or equity financing.

The embarrassment comes from having fallen into the trap of assuming every entrepreneur developing a plan is looking to raise money. I have been working with some entrepreneur education groups here in Austin and there are a couple of things I consistently tell them when the discussion turns to business plans in general and financial projections specifically, they need to be as realistic as possible but show the entrepreneur knows how he is going to execute the business to make money, and they need to be developed as a living document for the operation of the company. This second point seems to be the hardest for many entrepreneurs to grasp as they are many times so focused on checking the box for some due diligence process, or making the numbers say what they think potential investors needs them to say. The business plan and projections need to be developed by the entrepreneur for the entrepreneur, period. The fact you have a comprehensive plan and it is in a form that works for potential investors simply shows you are serious about your idea and can articulate in words and numbers how you plan to make money from your new venture.

So, I was happy that in some small way my exchange with this entrepreneur helped validate my message. Here was an experienced business person and entrepreneur developing a business plan for a business but the process had nothing to do with raising money. That should be a good lesson to prospective or serial entrepreneurs who are starting new ventures in the current business environment where quick exits are virtually nonexistent.

Waterfall Mobile [Video]

Matt Silk, one of the co-founders of Waterfall Mobile, was in Austin for a few days. We had a chance to catch up with him and ask him about what the company was up to these days. The company is based in the Silicon Valley, but works with big brands everywhere. The company did some really incredible work with their Msgme platform, which allowed the average person to provide neat SMS features without having all the overhead of obtaining their own shortcode. AlertU leverages the mobile infrastructure with a service that allows organizations like schools to broadcast emergency messages via SMS to all their constituents. In a campus-wide emergency, such as what we’ve seen in the news in the past few years, SMS is the best way to read students because their mobile is going to be the one thing that is for sure on and with them. Pretty brilliant really.

INCISENT Expanding Into Austin

Chicago-based INCISENT Technologies, the #4 Fastest Growing Software Company in the U.S., has announced plans to expand its presence into Austin, Texas. The new office will serve as a software development site for the company’s Consumer Optimization and Business Intelligence Technologies.

INCISENT creates technologies that are catalyzing the transformation of traditional industry through unique solutions for the Internet Age. INCISENT’s Consumer Optimization and Business Intelligence technologies are at the forefront of this transformation in online product advertising and automotive retailing. INCISENT’s namesake product and company FirstLook, is the pioneer in Automotive Retail Performance Solutions.

“As INCISENT’s reputation grows, we want to tap into the talent of technology hubs around the country to attract the best and brightest engineers to our team,” said Dr. Krishna Kumar, Vice President of Engineering and IT Operations of INCISENT. “Austin is a hotbed for technology and software engineering talent and is the perfect market to grow our company as we continue to create breakthrough technologies that transform traditional industries.”

Dr. Kumar is heading up INCISENT’s talent search and will be in Austin to help with the initial office launch. Set to open at the end of this summer, the Austin office will house a senior-level engineering team with demonstrated breadth and depth of knowledge in creating technologies to solve customers’ business problems.

For more information, visit www.incisent.com or call 866-625-7107 or e-mail info@incisent.com

DEMO Comes to Austin

Last week, the folks from the DEMO conference came to Austin looking for some great new startups to launch at DEMO Fall ’09 in San Diego in September. The invite said over 160 people had RSVP’d and it seemed like everyone involved with tech startups in Austin was in attendance. Chris Shipley has been producing the DEMO conference for 15 years, and the Fall conference will be her last. Matt Marshall, the editor of Venture Beat, is taking over DEMO duties for Chris, and the two will probably be co-hosting the event in September.

Chris Shipley, Bryan Menell, JT Keating

Chris Shipley, Bryan Menell, JT Keating at the DEMO happy hour

In case you are just now reading this, don’t think you’ve totally missed out. You can still apply to launch your company at DEMO in the Fall.

One interesting change for the Fall conference is the introduction of the Alpha Pitch. Unlike the traditional DEMO 6-minute pitch, the Alpha Pitch is 60-seconds and it’s a less expensive route for companies that are not quite mature enough for a full launch at DEMO. If you’re not familiar with the DEMO conference, there are around 400 attendees that come to hear approximately 50 companies launch on stage. Attendees are some of the most notable venture capitalists, journalists, and analysts in the tech industry today. DEMO was a leader in demanding that companies abandon their slide decks in favor of showing the actual product. I guess that’s why it’s called DEMO and not SLIDES, right?