Working with entrepreneurs and world-class venture capital firms to create and build fast growing Internet services, eCommerce and Digital Media
businesses.
Tweetdeck now accounts for 13 % of all Twitter users. Tweetdeck is the most popular desktop client for Twitter. Pretty remarkable for a small UK company, months old and until recently, funded partly by donations from users of the site.
Its utility keeps improving with new features and functionality. The latest of these is an application that adds Tweetdeck to Facebook connect. This means that when you send out a message from Tweetdeck, you will be able to send it to Twitter, Facebook or both. A new column gets added to Tweetdeck showing you updates from your facebook friends. If one of your Facebookfriends is online, a green dot appears next to their name and you can initiate a chat via a pop-up window.
Alex Willcock'sImagini has always fallen in the 'intriguing' category. The idea of consumers having a 'visual DNA' is the big idea. What to do with this concept and the 12m profiles which Imagini has collected has always been the issue. Imagini have created some compelling applications which have proven the hypothesis that profiling by visual preference enhances response significantly and is an engaging and entertaining mechanism.Hotels.com's 'Hotel Visualiser' created by Imagini is a superb example of Visual DNA in action.http://hotels.visualdna.com/statement/module/HotelsModule/Hotels_Module.
Others who have used the Imagini approach include: MyDeco, The Army, Nectar, Pepsico and MSN http://visualdna.com/advertisers/
Imagini has just announced a second round funding of $13.5m The additional investment comes from Horizons Ventures, NorthZone Ventures and Atomico. See Techcrunch.
In addition, Imagini has appointed Dermot Halpin, former President of Expedia Europe, as non-executive Chairman and Board Director. Prior to joining Imagini, Dermot was President of Expedia Inc. Europe. Imagini has developed unique technology that offers advertisers, publishers and agencies extremely detailed profiling information about their online target audiences. By offering a series of picture-based quizzes to website users, Imagini’s VisualDNA product creates the opportunity for brands to connect with their customers in a completely new way. The bespoke quizzes can either run on a company’s website, or be embedded into flash, making them easy to distribute through online ad and affiliate networks.
Now Imagini is developing a VisualDNA Plug-In that will allow any website publisher to create their own free online quiz, in order to enhance their site. Imagini also operates a consumer site called youniverse.com which has a reach of nearly 1m unique users per month, and was recently nominated by BBC Click as 'one of the best sites on the web'. For more information about Imagini and its brands, visit www.visualdna.com or www.youniverse.com . Many readers of this blog may not be familiar with Horizons Ventures. "Horizons Ventures is a Hong-Kong based investment company focused on early-stage companies in the field of telecommunications, media & technology. With extensive business experience and reach in Asia, Horizons partners and invests in innovative companies that bring about transformational changes to their focus areas. Successful investments and current portfolio companies include Skype, Facebook, UMPay, NBA China, Joost, Lemonade, doubleTwist and Rfinity."
Moo ships its minicards, business cards, stickers and postcards to over 180 countries. Its biggest market is the USA. It has now reached a size where it makes sense to send the digital files to the US and print and distribute its US orders from there.
The office will be based in Providence, Rhode Island.
Moo, which was seeded by TAG and then funded by Atlas Venture and Index Ventures in 2006, has grown rapidly through quality product innovation and superb attention to detail in the development of its brand. The idea of using your business card to do more than provide your contact co-ordinates but to project your brand, content, products is a simple but strong one. Moo's unique technology allows each card in the pack to be different.
Skimlinks is a really neat solution for bloggers and web publishers to earn cash through affiliate marketing without all the hassle of signing up Affiliate networks or retailers.
Advertising CPM rates are going down, publishers are finding it harder to generate sustainable revenue from their content. Affiliate marketing is an increasingly attractive option for website publishers however, it can be difficult to implement and manage, especially where fragmented editorial, technical and commercial teams are involved. Skimlinks looks likely to be a breakthrough for many publishers struggling with these current systems.
Really simple to implement and install, Skimlinks turns normal retailer links found in their editorial content into ‘affiliate links’ automatically. Each time a user clicks-through and makes a purchase, the website earns a commission from the retailer. Skimlink’s new technology means users no longer have to sign up for multiple affiliate programs across many networks, or create and maintain affiliate links as merchants change from one network to another.
Skimlinks provides instant access to affiliate programs of over 9,000 international merchants (even the 30-40% of merchants that do not support deeplinking) across 16 affiliate networks, and all publisher’s links are optimised for the best commissions at any point in time.
Alicia Navarro is the founder and CEO of Skimlinks. She created the business recognising that consumers are no longer relying on advertising to make their purchasing decisions, instead being driven by reviews and recommendations from both editorial and user-generated content. Publishers are embracing this shift by creating useful content, and encouraging their users to do so too, adding links to relevant products and services within the context of that content. Skimlinks represents a new way to monetise those links, and therefore its surrounding content, by implicitly applying affiliate marketing.
There is a natural affinity with Zemanta, another TAG company, which provides tools for authors (of blogs, emails etc) automatically creating relevant links, inserting images and providing readers with a richer experience.
Clients of Skimlinks already include brands such Channel 4, T3.com, TechRadar.com, the Daily Mail.
The LoveFilm, VideoIsland, ScreenSelect alumni have come together to back Graham Bosher and his team to launch Graze.
Graham was one of the co-founders of DVDs on tap.
They sold the company to Arts Alliance who created LoveFilm who merged with Video Island who had merged with ScreenSelect ...you following?
Anyway, Graham latest venture is Graze - an ingenious new way of getting healthy, quality food direct to your desk.
The product and packaging and business model has been designed with superb attention to detail, leveraging the wonderful next day service of the Royal Mail and its newish tariff - pricing in proportion. The Royal Mail, which is currently delivering over 100 million DVDs back and forth for LoveFilm, must be hoping that Graze can similarly change the way Britain gets its lunch time food!
Graze delivers a full letter-box-sized box of healthy food (nuts, berries, dried fruit etc) straight to a desk. Prices start at £2.99 delivered. Users rate the range of over 200 products and choose from 4 different types/sizes of package. Highest rated products get included most often. Delivery frequency, package type and delivery address are controlled through a well designed interactive drag and drop website.
The team has significant experience of designing, developing and running complex operations which give customers complete control and provides great customer service.
The service is still in beta mode and TAG have negotiated an offer for UK readers of this blog: enter code QKX412R - It offers a free box and the 2nd one for half price.
Innovate!Europe is a three-part program designed to identify Europe’s most promising startups and accelerate their drive into the global technology market.
The first step in Innovate!Europe’s unique six-month accelerator program is to apply to participate in one of the complimentary Going Global Workshops. Dates have already been announced for Workshops in Zaragoza, London, Dublin, Paris and Berlin, and they are in the process of identifying other cities to add to the Calendar.
Every company who applies will receive feedback from Guidewire Group’s seasoned team of analysts. In addition, regardless of acceptance into the Innovate!Europe program, all applicants will be listed on the Innovate!Europe site. So, just by applying, you will raise your company’s profile with potential partners, customers, investors and media who are part of the Innovate!Europe community.
Innovate!Europe is run by Chris Shipley and Mike Sigal of The Guidewire Group who is a global market intelligence firm focussing on technology entrepreneurship.
Like Seedcamp, Innovate!Europe's focus is mentoring, advice and support. Seedcamp's investment is an added bonus but not the 'main thing'.
TweetDeck is a desktop application that aims to evolve the existing functionality of Twitter by taking loads of information i.e twitter feeds, and breaking it down into more manageable bite sized pieces.
TweetDeck enables users to split their main feed (All Tweets) into topic or group specific columns allowing a broader overview of tweets. To do this All Tweets are saved to a local database. One column will always contain All Tweets. The GROUP, SEARCH and REPLIES buttons then allow the user to make up additional columns populated from the database. Once created these additional columns will automatically update allowing the user to easily keep track of a twitter threads.
Being database driven TweetDeck allows the user to continue twittering even when offline. Tweets and direct messages are queued and then sent automatically when back online.
Twitter itself is growing spectacularly. Techcrunch UK pointed out its UK growth in a recent post.
The recent funding round in which TAG participated was led by our good friends Andy Wiseman and John Borthwick of Betaworks, New York. Songkick, Lookery and Snaptalent are other investments we have in common.
As hoped for, the credit crunch has given a boost to home entertainment. LoveFilm already had significant momentum having added 100,000 new subscribers during 2008, but January has continued this trend. In addition to announcing the 1m subscriber number, LoveFilm also announced an injection of £10.5m in Bank Debt which it plans to invest in new on-demand technology as well as repay existing debts. [Who says banks aren't lending?]
Lovefilm became profitable last year having achieved revenue growth of around 50%.
If you have surreptitiously checked the value of your neighbour/friend/colleague/father-in-law/uncle's house recently, don't be embarrassed - you are not alone. Zoopla has been growing like topsy.It is now the UK's fastest growing property website and since it launched 12 months ago has been visited 5 million times. It is ranked the 4th busiest property website in the UK according to the latest traffic stats. Today, Zoopla is announcing a further funding round of £3.75m from existing investor Atlas Venture and Octopus Ventures.Their funding does demonstrate that despite the significant tightening of the venture funding market, really strong businesses with talented and experienced teams will attract capital. [See Techcrunch]
Zoopla provides house prices and value data and is already the most comprehensive source of residential property market information with the UK's most active community. In 2008 it had over 1 million user contributions to its website from users.
With its imminent and innovative launch of estate agent listings on a pay-for-performance basis, Zoopla expects to become the website of choice for anyone interested in the property market – whether buying, selling or just looking to stay informed about market activity.Zoopla addresses all 27m homes in the UK - not just the 1m or so that are for sale.
They are now also focussed on using their traffic and levels of consumer engagement in helping estate agents make the most of their marketing spend.
Fred Destin and Atlas have been outstanding backers of Zoopla demonstrating clearly the value that VC's are capable of by acting decisively and fairly throughout.
Octopus Ventures have a long standing relationship with Alex Chesterman (founder, CEO), Simon Kain (CTO) and angel backers William Reeve and Simon Murdoch.
TAG's relationship too goes back to the Video Island/Screenselect/LoveFilm days.
Most of us involved in the tech start-up world will have noticed Kiva getting publicised quite widely. See the rhs of this blog for example.What is not that widely understood is just how Kiva works and how powerful it is.The well constructed video below tells the story.
Some of the numbers speak for themselves:Kiva is only 39 months old.It has raised loans totalling $55,521,085 for low-income entrepreneurs in the developing world.Its repayment rate todate is 97%It has funded 125,496 entrepreneurs to date.There are over 400,000 Kiva users from 156 countries.
Recently, Wonga, unsecured small loans company - featured in a previous post - became a backer of Kiva. Wonga is lending £1 interest-free, via Kiva, for every Wonga loan they process. To date Wonga has lent $14,475.
Many corporates are setting up similar schemes.What a great illustration of how the web enables previously impossible ideas!
I featured Fizzback in a post about 2 months ago. At the time we were postulating that in a shrinking market, retailers and other service providers would need to gain market share to keep growing or maintain profitability. Gaining market share usually means giving customers what they want. This in turn requires very careful listening to customer's requirements. Fizzback does this in a sophisticated but automated way, enabling large numbers of customers to engage in 'dialogue' at relatively low cost.
The Xmas sales data currently being announced show that not all retailers have been caned to the same extent by the market.Clearly those who have been listening hardest and implementing effectively have done better than others. Fizzback continues to win high profile accounts.
For example, last month, The Carphone Warehouse selected the Fizzback Engagement Platform to assess their customer experience, improve advocacy and drive superior employee performance. Ashley Cook, The Carphone Warehouse’s Business Operations Director said: “We’re committed to offering the best customer service on the high street. Fizzback gives us a new level of visibility into the in-store customer experience and provides actionable insight into areas for improvement.” Carphone joins the list of household names now using Fizzback. They include: T-Mobile, Phones 4U, National Express, Virgin Trains, Sky, HMV, M&S, William Hill and others. Positive customer service experiences happen all the time, but the feelings they evoke have a shorter half-life than very negative experiences. Therefore the key is to capture experiences as they happen, not days, weeks or even months after the event. Positive comments help companies to reinforce areas that they are succeeding in, passing these best practices across the organisation, and are a great way to motivate and reward staff. In summary, making it easy for consumers to tell you how they feel during (not after) their experience with the brand yields large volumes of high quality feedback. This approach taps into a previously 'silent majority' of consumers, ensuring an accurate representation of sentiment and giving brands the opportunity to begin a constructive dialogue with a large portion of their customer base.
In December, Fizzback received just short of 2m customer contacts. This channel split is reflected below.
Mergers are really difficult transactions to bring about and even more difficult to make work post-merger. The rewards for doing so properly and well can be significant. In these times, we are likely to see a number of mergers taking place between companies which will find it really hard on their own to raise cash to lengthen their runways or for those for whom the commercial logic is overwhelming. Looking back, one can see some mergers which had they not happened may well have led to the demise of both companies (or at least a protrated and far more capital intensive journey) whilst what emerged was a real powerhouse. I'm thinking particularly of the Betfair and Flutter.com (remember them?)merger in December 2001. Current Betfair revenues in the order of £250m and PBT over £40m. Image via CrunchBase I'm also not forgetting the LoveFilm and VideoIsland merger of April 2006, creating Europe's dominant on-line DVD rental service now turning over some £70m profitably. We will be encouraging TAG companies to look at their markets carefully and consider whether getting together creates more value for everyone in the long run. The difficulties are - fairly obviously - a) arriving at relative values and b) resolving the question of who runs the combined entity and how. It takes some skill, no little suppression of ego, sensitivity and far sightedness to achieve a good result. The benefits can be huge. Aside from rationalisation of overheads, marketing can be made so much more efficient and effective (less competition for those keywords, greater clickthrough rates from natural and paid search)and its far easier to do those all important business development partnerships.
Commentators need to focus more on what value has been created, rather than on who 'won' and who 'lost'. In the case of the great mergers, everyone's a winner.
2008 can be split into 2 distinct periods. Pre-crunch and Post-crunch. In the coming days we will all be reflecting on a pretty crazy year and most will be fearful, uncertain or excited by the coming one. I think we are all agreed that 2009 offers significant opportunities and challenges.
We are in for some very tough times. The funding climate has changed radically and the chill wind is blowing. All sensible companies are focusing on their cash. Getting themselves to break even as quickly as possible and focusing more intently on what makes a difference than ever before. TAG companies are all looking closely at their costs, their revenue generation and their cash runways. They have been for some time now. The opportunities are still there - but may be found in different places from the pre CC (Credit Crunch) era.
Certainly, competitors may be hurting and this will represent opportunities for some. Businesses that genuinely remove cost, save money and increase efficiency will be attractive as will those with well proven business models and with revenues continuing to rise.
Interesting to look at what date defined the start of the credit crunch. For the tech community at large, it seems that Sequoia Capital’s publication of their 56 Slide Presentation Of Doom - October 7th,2008 - marked the date.
It was much earlier for most others. On 22 February 2008 Northern Rock was taken into state ownership. On September 15, 2008, Lehman Bros. filed for Chapter 11 bankruptcy protection, the filing marked the largest bankruptcy in U.S. history. On September 16th AIG suffered a liquidity crisis following the downgrade of its credit rating - it had been the 18th-largest public company in the world! And so it went ...
Certainly, if one was looking for signs (and who was?) we could go back to March 2007, when the United States' subprime mortgage industry collapsed due to "higher-than-expected" home foreclosure rates.
However for the tech start-up scene, the fundamentals are still strong. Technology is likely to lead the way out of recession for many economies. Better application of technology leads to lower costs and greater productivity. Broadband penetration continues to increase, eCommerce is holding up. December numbers are not out yet but November continued to show on-line gaining share from off-line. So it is with advertising. Whilst there is an overall slump, on-line continues to win share from off-line.
Of course, what has changed is that it is much more difficult to get ideas funded, values are not what they were and exits are very hard to achieve.
The idea that the funding community is closed for business is, however, not entirely correct. The big brand Venture Capital Funds still have money to invest and in our view most will be successful in raising new funds - as Accel have recently. Angels will return to the funding scene seeking capital efficiency and opportunity.
Since October 7th, 9 of TAG's companies have received follow-on funding (or have term sheets leading to that end).
As regular readers know, this blog essentially showcases the TAG portfolio. Since the portfolio is pretty well representative of the tech start-up scene, I hope that it of wider interest than just to friends of TAG.
Good luck in all your 2009 endevours!
To finish off this serious post, I share with you the movie that our friends at First Round Capital produced for the season of goodwill. First Round are a special kind of firm with whom we share many common values - some of which are reflected in this video.
One of the precepts we believe in at TAG is the one that goes "what you can measure, you can improve". Hence our 'obsession' with selecting the right KPIs and monitoring them so closely.
Their mission is to measure the "Carbon Footprint" of everything on Earth.
This goal requires a neutral aggregation platform. AMEE is that platform.
The AMEE platform is being used internationally by many organisations including Defra (DECC), The Irish Government, The Welsh Assembly, Google, Morgan Stanley, Nesta, the Energy Saving Trust, BRE, Radiohead, Sun Microsystems, plus numerous other IT, business services and software companies.
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AMEE has been designed to deliver a new standard in functionality, transparency and interoperability. AMEE's aim is to map, measure and track all the energy data on Earth. This includes aggregating every emission factor and methodology related to CO2 and Energy Assessments (individuals, businesses, buildings, products, supply chains, countries, etc.), and all the consumption data (fuel, water, waste, quantitative and qualitative factors).
It is a web-service (API) that combines measurement, calculation, profiling and transactional systems. Its algorithmic engine applies conversion factors from energy into CO2 emissions, and represents data from 150 countries.
The company has just announced that it has secured substantial Series A funding from leading VC funds in the USA and UK.
Since launching to a select group of global companies last fall, Dopplr has attracted an international following of smart travellers. Lisa and the team have done a super job of launching the brand and building a strong following. As a founding investor Marko knows the team well and with his background in mobile services and media is an excellent fit to grow the business. Today, Dopplr is an important 'intention sharing service online', akin to social platforms like Twitter and Facebook, but with a tight focus. When people share their travel plans and tips through Dopplr their mind is already set on the travel experience: on where their colleagues and friends are going, how they’re getting there and what hotels they’re staying at.
Marko Ahtisaari has worked previously as Director of Design Strategy at Nokia and serves on the board of directors of F-Secure and Artek. Most recently Ahtisaari has been Head of Brand & Design at Blyk, the free mobile network for young people funded by advertising, and will continue in a role supporting Blyk in its partnering and expansion strategy. In September 2008 Dopplr announced its second financing round from a group of prominent international investors — all users of the service.
Douglas de Jager, co-founder of Byteplay, the company that created Dothomes, has put together a useful set of links, interesting articles, golden rules for entrepreneurs and the like. They can found here. Doug tells me he'll be adding to the list regularly. There is some good Xmas reading in amongst his recommendations.
Congratulations to those companies listed in Library House's ranking of Europe's Top 100 Media technology companies. One does get somewhat justifiably cynical about these awards or rankings but one must respect Library House's credentials as a leading research house for this industry and the advisory board was comprised of people from all the leading investors in the ecosystem.
The roll of honour had Moo at no 2 and Stardoll at No 10. The other TAGsters listed are: Netlog and Zemanta in Community, Mind Candy in Games, MoveMe and Zoopla in Search and Directories and OpenX in Advertising.
In times of recession and rapidly slowing consumer expenditure, relying on momentum in the market for maintaining profitability is no longer an option. Even eCommerce - although it is predicted to take more share of retail sales - will see its rate of growth slow further. So, gaining market share (a bigger share of shrinking wallets) is a business imperative.
This could be one of the main reasons why TAG backed company, Fizzback, is gaining such traction. Fizzback provides a service to retailers and other service providers which elicits feedback - at the point of experience. Its a unique service in that it enables consumers to tell the retailer what they think about their products and service while they are in situ. Its sophisticated artificial intelligence engine (using NLP, Natural Language Processing) interprets customers comments in free form and analyses these comments, presenting them to the company through a web dashboard. The fiercely contested mobile industry has widely adopted the fizzback service to get really close to their customers eliciting feedback in real time. Major retailers like Tesco, Marks $ Spencer, HMV and others are testing and rolling out Fizzback across their stores. Read Retail Week's article of last week on the subject. Tesco are famous for having built one of the great retail business by listening intently to their customers and react. The companies that emerge best from this recession will be those that get really close to their customers, listen well and react with speed to their requirements.
There are a number of services that provide on-line feedback but few that enable consumers in an offline environment to provide feedback via SMS, voice, email. Fizzback is one.
Awards are not certain indicators of success or even of great products but having a string of them clearly shows Fizzback is on the right track.
The last thing consumers are going to give up in these times of frugality is their mobile phone. Their link to the world. But, they will certainly want to spend less on these phones. Currently European users spend about £100bn annually. Could they spend a lot less? Image via Wikipedia Ofcom estimates that only 23%% of us are on the right tariff and Optimor estimates that we could save about 32% ie £3.3bn (UK Only!)per year IF we were on exactly the right tariff. Every year 33% of us switch operator - in an attempt to save money. That's 22m UK switches per annum (8.6m contract users). The costs to the operators of this churn has been variously estimated but clearly runs into many billions. Of course, there are price comparison engines which will encourage you to switch based on some fairly superficial evaluation of the minutes you use, the texts and the Mbytes handled (do you have a clue how many of these are whizzing through the phone?)
TAG has been working with a group of Mathematicians from Oxford University led by Prof. Chris Holmes and the founder, Stelios Koundouros, himself a Phd in Maths from the other place (Cambridge) to develop the world's most powerful algorithm for analysing and forecasting usage (of mobile phones, expenditure of all kinds) and comparing it with the literally 10's of thousands of tariffs out there. The company is called Optimor.
The service, which will monitor your phone bill automatically every month - after you give it access to your on-line bill - will recommend the best tariff, provides tips for future usage and generally ensure that you are spending no more than you need.
The service, code named Karoosh (apparently Japanese for death through overwork!) will be released in private beta in the coming few weeks. If you can't wait and want a play with the Alpha, go to the Karoosh blog
My own bill analysis showed me that I can simply save over £200 per year - the regular comparison sites which simply asked me for my minutes and texts would have sent me to a more expensive tariff than I currently have. Karoosh independently test 38,279 plans & add-ons across the major UK operators.
The telco industry's reaction to Karoosh (or whatever it will be called in future) is going to be interesting. It seems to me that the operators would do better to help consumers find the right tariff within their own network rather than keep fighting for users to switch from another network to theirs.