mercredi 30 septembre 2015

Evernote's Job Cuts Are a Rare Pullback for Billion-Dollar Startup - Wall Street Journal (blog)

Three years ago, note-taking app maker Evernote Inc. rose to an elite status among startups with a $1 billion valuation.

Now, Evernote is one of the few members of the billion-dollar club to pull back on its growth. On Tuesday, the company cut 47 employees, or 13% of its staff, and told its staff that it plans to close its offices in Taiwan, Singapore and Moscow, a spokeswoman said.

The cuts follow a recent scaling back in business strategy and the resignation of co-founder and CEO Phil Libin, who was replaced in July by former Google Inc. executive Chris O'Neill.

"A smaller, more focused team today will set us up for growth and expansion tomorrow," Mr. O'Neill said in a blog post. "We will launch major foundational product improvements around the core features that you care about most, and we will pull back on initiatives that fail to support our mission."

Evernote's job cuts could serve as a warning to the more than 120 private companies now valued at $1 billion or more, even as an average of two private companies join that club every week.

Fab.com, an e-commerce startup valued at $1 billion in 2013, sold for a small fraction of that amount earlier this year, after the company grew too quickly overseas and burned through its cash. The company failed to right its course through several rounds of layoffs. Gilt Groupe also reportedly laid off about 10% of its workforce back in early 2012, not long after raising capital at a $1 billion valuation.

Evernote is shedding jobs as it attempts to transition from a popular consumer app to a paid subscription service used by professionals in more than 20,000 companies. Its paid subscribers, who pay up to $50 a year for more storage and additional features such as business card-scanning and presentation software, have increased 40% over the past year, Mr. O'Neill said in the post on Tuesday.

The startup shuttered one of its consumer-focused apps, a recipe-saving service called Evernote Food, this week. Its website still offers a wide range of products, including a Web-clipping service, Moleskine notebooks and a scanner.

Evernote has raised more than $300 million from investors including DoCoMo Capital , Meritech Capital Partners, Sequoia Capital and T. Rowe Price .

Libin, who co-founded Evernote and served as its CEO for most of the company's growth, this month joined VC firm General Catalyst Partners. He remains Evernote's executive chairman.

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Alok Mittal to launch tech startup Indifi Technologies - Economic Times

NEW DELHI: Alok Mittal, the former India head of venture capital firm Canaan Partners, is launching his new venture Indifi Technologies, a technology startup that will enable the country's micro and small enterprises to gain greater access to debt financing.

The startup, the formal launch of which is expected to be on Wednesday, marks the return of Mittal to his entrepreneurial roots, more than a decade after he exited his earlier startup, JobsAhead, an e-recruitment venture, after it was acquired by Monster.com for about Rs 40 crore.

"There is a $380 billion debt financing gap in India's MSME segment, and currently, the mechanism is very human intensive. Our technology platform will look to fill the spaces, identify the needs, and work with partners to enable smaller businesses have greater access to low-cost debt," Mittal told ET.

Also joining Mittal as co-founder and chief operating officer in Indifi is Siddharth Mahanot, who was formerly with Indiabulls Housing Fina nce, Edelweiss Financial Services and Citibank. Sundeep Sahi, who was earlier with mobile internet company, IgniteWorld, a joint venture between Yahoo Japan, Bharti & Softbank, has also come on board as a co-founder and chief technology officer.

The five month-old startup has already tied up with three organisations, including, a travel and ticketing platform, a cab aggregator and an ecommerce company, according to Mittal, who declined to share names, citing the existence of non-disclosure agreements signed between the parties.

"We will, essentially, work with anyone who has built marketing and finance platforms, including online travel agencies, B2B platforms for traders and ecommerce companies," Mittal said.

Indifi, which has also signed up with a few lenders, will layer its technology with that of its partners, similar to that created by Chinese ecommerce giant TheAlibaba Group, which has also integrated its lending platforms with its ecommerce sites.

"There are two major issues on the lending side - origination and underwriting. The Indifi platform connects lenders as well as our partners," Mittal said.

The launch of the startup comes at a time when Indian MSMEs, while accounting for more than 80% of the country's total industrial enterprises, and contributing about 45% to manufacturing output, still continue to face significant hurdles in accessing capital.

According to a World Bank Report, about 87% of Indian MSMEs do not have any access to finance and were self-financed.

Indifi, which has been bootstrapped so far, is also exploring alternative funding options, Mittal said.

This is Mittal's first venture since leaving Canaan Partners, after the early-to-mid-stage venture capital firm sold its entire portfolio in India to JP Morgan Asset Management in a deal valued over $200 million.

mardi 29 septembre 2015

This startup turns your car insurance premium into cancer research donations - The Next Web

Everyone wants to give to causes that matter most to them, but sometimes it's hard to wrap your head around providing the funds to actually do so. For some people, parting with $100 or more to donate in a lump sum isn't doable.

San Francisco startup Givesurance is a company that aims to turn something you do every month — make a car insurance payment — into usable funds to donate to charities and non-profits. And today it has announced a partnership with the Ovarian Cancer Research Fund to donate funds to research.

Additionally, the company has also added childhood cancer nonprofit CureSearch, so users can now donate with the aim of ending cancer in kids. The startup on a related social media campaign this month, raising awareness for childhood cancer with the hashtag #MakeItGoldforKids.

"Launching these fundraising campaigns enables us to provide CureSearch and the Ovarian Cancer Research Fund with a creative new way for donors to contribute to the active search for a cure," Givesurance founder and CEO Jennifer Rasiah told TNW.

Givesurance currently partners with more than 200 insurance carriers to turn 3 to 5 percent of a user's insurance premium into a usable donation to use on one of more than 60 partner charities. Whether that's for cancer research, wildlife preservation or another cause, users get to choose where their money goes.

Givesurance released from beta in June, and its partners include insurance carriers Progressive, Travelers and Healthco.

Givesurance

What Taking On Google Taught Me About Startup Traction - Fast Company

In 2006, I sold an Internet company that I had cofounded a few years earlier for millions of dollars. It was a strange company for many reasons, not the least of which was that we had no employees from beginning to end. I wrote every line of code and did all the accounting and customer support.

The terms of the deal were such that my cofounder and I didn't have to work for the acquiring company at all. We were free to move on to other things, and we did. A few months later, my wife and I moved from our 865-square-foot apartment near Boston to a country house 25 miles outside of Philadelphia. I had just turned 27.

She went to her job and I sat at home doing nothing for the first time in my life. We knew no one for a hundred miles in any direction.

Building A Better Search Engine

Naturally, I started tinkering on the computer again, starting about a dozen side projects simultaneously. A year and a half later, I thought I was on to something. I noticed two things that bothered me about Google: too much spam (all those sites with nothing but ads) and not enough instant answers (I kept going to Wikipedia and IMDb). I thought if I could easily pick out the spam and the answers, then I'd have a more compelling search engine.

Traction is a sign that something is working.

Both problems were harder to solve than I initially thought, but I thoroughly enjoyed the work and kept at it. Everyone I talked to about my search-engine project thought I was nuts. You're doing what? Competing against Google? Why? How? Another year later, in the fall of 2008, I flipped the switch, unveiling my search engine to the public.

DuckDuckGo had a rather uneventful launch, if you can even call it a launch. I posted it to a niche tech site called Hacker News and that was the long and short of it. The post was entitled, "What do you think of my new search engine?"

Like many entrepreneurs, I'm motivated by being on the cusp of something big, and I was at the point where I needed some validation. I can survive on little, but I needed something.

I got it.

Granted, the product wasn't anything you'd want to switch to at that point, and people let me know that. It was an Internet forum, after all. However, I still felt there was genuine interest in a new search competitor. I could tell some people were growing wary of what Google was becoming. For example, those initial conversations led me to investigate search privacy and eventually become "the search engine that doesn't track you," years before government and corporate surveillance became a mainstream issue.

In any case, the response I received was enough motivation to keep me going. Which brings me to traction. I needed some.

Traction Trumps All

Traction is the best way to improve your chances of startup success. Traction is a sign that something is working. If you charge for your product, it means customers are buying. If your product is free, it's a growing user base.

Traction is powerful. Technical, market, and team risks are easier to address with traction. Fundraising, hiring, press, partnerships, and acquisitions all become much easier.

In other words, traction trumps everything.

To move the needle for my traction goals at the time, I needed more like 5,000 new visitors a day, not 50.

My last startup had grown using two traction channels: first, search engine optimization (ranking high in search engines for relevant terms), and later, viral marketing (where your customers bring in other customers, such as by referring friends and family through use of the product).

Viral marketing doesn't work well in search because you can't easily bake it into the product by putting stuff between people and their search results. So I tried search engine optimization. The terms "search engine" and "search engines" were too hard to rank for, as the high-ranking companies had been around for a decade and had tens of thousands of links pointing at them from their long histories. "New search engine" was more in my grasp.

I worked hard for many months to rank high for this phrase. The key to good search engine optimization (SEO) is getting links, and you need a strategy to get these links in a scalable way.

Getting stories written about you in blogs and news outlets is a common SEO linking strategy. However, I hit saturation with that channel strategy pretty quickly, and it didn't get me to the top. Something more creative was required.

Getting It Wrong

After much brainstorming and experimenting, I eventually hit upon a good idea. I built a karma widget that would display links to your social media profiles and how many followers you had on each service. People would embed it on their sites, and at the bottom there would be a link back to DuckDuckGo that said "new search engine." This channel strategy worked beautifully. I was number one.

Trouble was, not a ton of people make that search—about 50 a day. So while I did get some traction and a steady stream of new users, it leveled off pretty quickly. It wasn't enough traction to be meaningful. It didn't move the needle.

I was biased by my previous experience.

I made two large traction mistakes here. First, I failed to have a concrete traction goal. In retrospect, to move the needle for my traction goals at the time, I needed more like 5,000 new visitors a day, not 50. Search engine optimization was not going to get me there.

Second, I was biased by my previous experience. Just because my last company got traction in this way didn't mean it was right for every company. These are very natural mistakes to make. In fact, most startups make them. The most common startup trajectory now goes something like the following: Founders have an idea for a company they're excited about. Initial excitement turns into a struggle to build a product, but they do get something out the door. Then they launch.

The founders had expected customers to beat a path to their door, but unfortunately that isn't happening. Getting traction was an afterthought, but now they are focused on it. They try what they know or what they've heard others do: some Facebook ads, a little local PR, and maybe a smattering of blog posts.

Then they run out of money and the company dies.

Sadly, this is the norm. Even sadder, often these products are actually on to something. That is, with the right traction strategy they might have actually been able to get traction and not go out of business.

Getting It Right, Again And Again (And Again)

Given my previous startup success I thought I knew what I was doing. I was wrong. Luckily, I wasn't dead wrong. I had the money to self-fund through my traction mistakes, and so they didn't prove fatal for DuckDuckGo. Not everyone is as lucky.

Around this time I also started angel investing and more seriously advising other startups. I saw firsthand similar struggles and mistakes. I also partnered with Justin Mares, who had founded two startups (one of which was acquired) and recently ran growth at Exceptional Cloud Services, which was acquired by Rackspace in 2013 for millions. He's a growth expert in his own right.

What works in one growth stage eventually stops working.

We set out to help startups get traction no matter what business they were in: from Internet companies to local small businesses and everything in between. We drew on our personal experiences, interviewed more than 40 founders, studied many more companies, and pulled out the repeatable framework they used to succeed.

Since DuckDuckGo's humble beginnings, we have grown five orders of magnitude (10x growth spurts), from that initial 100 searches a day to now over 10 million a day. Each step—from 100 to 1,000, 10,000 to 100,000, 1 million to 10 million—involved figuring out how to get traction again. That's because what works in one growth stage eventually stops working.

This article is adapted from Traction: How Any Startup Can Achieve Explosive Customer Growth by Gabriel Weinberg and Justin Mares with permission of Portfolio, an imprint of Penguin Publishing Group, a division of Penguin Random House LLC. Copyright © Gabriel Weinberg and Justin Mares, 2015.

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lundi 28 septembre 2015

Startup week to brainstorm Great Falls business ideas - Great Falls Tribune

Businessman Jeff Mangan is a co-organizer of the Startup Week Great Falls event to encourage business development.(Photo: Courtesy Photo)

Organizers of a Great Falls area brainstorming event designed to spur new business startups are trying a new approach with a four-evening series of meetings from Oct. 6 to Oct. 9.

Great Falls Startup Week is designed for people interested in starting a business, making their idea a reality, exploring entrepreneurship or mentoring others who are doing so.

The group initially planned a Startup Weekend Great Falls for a long weekend in mid-May, but canceled the event about 10 days before because of "slower than anticipated registration," according to co-organizer Jeff Mangan.

The group received feedback from many folks who expressed some interest, but said they were reluctant to devote so many hours from Friday evening to Sunday evening to the process, which called for selecting specific business ideas and forming teams to brainstorm ways to develop, design, finance and market them, he said.

"We chose a different, more relaxed first step this fall that has a Great Falls feel to it, with a little bit of food, a little bit of learning and questioning and a little bit of fun," Mangan said.

Each night, from 5:30 to 8:30, will feature different business leaders discussing how they launched their businesses, workshops on particular business topics and panel discussions in which business folks and those considering businesses can ask questions.

On Tuesday, Oct. 6, the team that created the Hotel Arvon and Celtic Cowboy will speak; there will be workshops on team building and business model canvas and market validation and time for participants to practice pitching ideas.

On Wednesday, Oct. 7, Alison Fried will discuss how she created Dragonfly Dry Goods; there will be workshops on industry research, marketing and sales as well as marketing experts discussing use of websites, social media and traditional media. There also will be networking roundtables with business mentors.

On Thursday, Oct. 8, Claude Smith of Pasta Montana will discuss market innovation; presentations on patents and business management, a workshop on intellectual property, and a presentation on insurance types for business.

On Friday, Oct. 9, Thad and Heidi Reiste will discuss their new Electric City Coffee business. There also will be a panel on financing featuring the Great Falls Development Authority, commercial banks and the Small Business Administration.

If this event goes well, the group hopes to draw enough interest to try the full weekend approach next year, Mangan said.

"Interested folks can pick and choose which of the evenings will benefit them the most or go to all four," Mangan said.

The event is sponsored by 15 businesses and agencies, Mangan said. Refreshments will be available and no fee will be charged, but organizers ask that folks sign up ahead of time by going to greatfalls.startupweek.co.

Read or Share this story: http://gftrib.com/1FwACKn

Phantom Cyber a Low-Key Startup in a World of Many 'Shiny Objects' - Wall Street Journal (blog)

At any cybersecurity conference these days, the show floor is packed with companies pitching expensive gadgets to block hackers, detect breaches or track the resulting damage.

Too often, though, these products don't talk to each other. Worse, they spew a deluge of security alerts that lull users into complacency.

If the latest anti-hacker technologies are new shiny objects, "maybe they're not quite as shiny as we want them to be," says Jay Leek, the chief information security office for Blackstone Group LP, the private-equity firm in New York.

Such thinking led Mr. Leek to his firm's latest investment in a cybersecurity startup, which he describes as, "not some new shiny object." Instead, Phantom Cyber Corp. offers software to help other security tools work better together and automatically respond to breaches.

For instance, if a sensor made by FireEye Inc. detects malware, Phantom Cyber might ship the malicious code to analysis software by iSight Partners Inc. to determine who is behind the attack. Meantime, it may run a query on software made by Tanium Inc. to identify infected computers that should be quarantined.

Phantom Cyber, based in Palo Alto, Calif., says it can work with most major makers of cybersecurity gear.

It's complicated and nerdy, but it's an unusual tack among modern security companies, which often play up all the ways they fight hackers. Mr. Leek says he hopes companies like Phantom could help firms like Blackstone that now build their own tools to get their other, expensive, products to work together.

Rolling your own security software creates problems, Mr. Leek said, when an in-house programmer decamps for another job. "If those individuals leave, you've got to unravel a lot of spaghetti," he said.

Another alternative would be hiring more security engineers to monitor alerts around the clock. But executives, including Mr. Leek, claim they couldn't find enough qualified security analysts to fill each of those openings, even if it were practical.

On Monday, Blackstone announced that it led a $6.5 million investment in Phantom Cyber, which has now raised $9.2 million to date. The company has about 10 employees, 10 beta customers and hopes to make its first products generally available later this year, founder Oliver Friedrichs said.

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dimanche 27 septembre 2015

5 Reasons To Incorporate Your Startup As Early As Possible - TechCrunch

Imagine you've spent the past 3 years building a startup from the ground up, watching it grow and become a success. Now imagine that somebody who barely contributed to the project claims to own 30% of the company. This horror story is a reality for many founders who don't incorporate their startup soon enough.

First-time entrepreneurs often struggle with when to incorporate and formalize equity split between founders. The legal cost of incorporation is often the first major expense founders face, at a time when funds are scarce.

Since the benefits aren't immediate, it's easy to delay incorporation. Yet, unlike first-time entrepreneurs, serial entrepreneurs often learn the hard way just how quickly things can get ugly, and eagerly incorporate as early as possible.

To the question "when to incorporate my startup?" the answer is simple: the earlier the better. The shareholder agreements, bylaws and other corporate documents lay the foundations upon which a startup can thrive.

Here are the top five reasons to incorporate your startup sooner rather than later.