August 17, 2007

TechStars Demo Day - Class of 2007

Michael Arrington

28 comments »

Y Combinator wasn’t the only incubator to demo their most recent startups today. Colorado-based TechStars also brought their startups on stage - ten of them - to give the audience a first look at what they’ve been up to all summer. Each startup gave 5% of their equity in exchange for $15,000, operational support, office space and mentoring.

Most of these companies are unlaunched and seeking additional angel funding (exceptions are noted). Here are our notes on each - and see Don Dodge for his take:

EventVue builds social networks around conferences (see confabb, an existing competitor). The idea is to let people connect before, during and after conferences in an online space, to add to the physical interaction at the conference itself. The company plans on generating revenue by charging an affiliate fee for each new registration. They are currently looking for $150k in funding.

Intense Debate - see our previous coverage. Intense Debate is a souped-up blog commenting widget that adds a lot of features for publishers and commenters alike. Currently installed on 30 blogs. Installing the plug-in on your blog (WordPress, Blogger, and TypePad) adds threading, comment analytics, bulk comment moderation across all your blogs, user reputation, and comment aggregation. They are looking for $500k in funding.

socialthing! is an ambitious project that simplifies the management of digital content (blogs, photos, music, friends, social networks and links). Users can also synchronize information from and to various social networks from their profile page. Strong viral component. Revenue from advertising. Raising $500k.

J-Squared Media has launched their “Sticky NotesFacebook application. It has 1.7 million users after six weeks, who have sent over 4 million sticky notes. They are working on several other related Facebook applications and are cash flow positive with $30,000/month in revenue from cost per action advertising. Not seeking funding. More here.

Search-To-Phone is a mobile search service via voice. Call and leave a voicemail asking about a product or service. The request is then routed to the appropriate business to call you back with information and/or a special offer. Built on TellMe and Gold Systems technologies for voice recognition. They’ve signed a business development deal with Excell Services to provess 10 million calls. They are looking for a small capital investment and more partners before launching.

Villij is a recommendation engine that analyzes your online life (social networks, blogs, bookmarks, etc.) to find people who may have similar interests as you. Raising $500k.

MadKast has the honor of being the first TechStars startup to launch. Our previous coverage is here. They’ve made a dead simple way to increase distribution for your blog with one line of javascript or one click for Blogger and TypePad. Once the widget is installed, readers can send a blog post via email, mobile MMS, or social bookmarking networks to friends. They are raising $300k in capital.

FiltrBox is a content monitoring and filtering service for blogs, news sites and other websites. Content is filtered by topics, keywords and context and then delivered to the user via RSS, email and/or text messages. Filters can be adjusted via sliders and will learn what you like over time. Raising $500k in capital.

KBLabs is developing Facebook applications and widgets. Wah! Cool was their first application, which launched four weeks ago. It now has 100k subscribers and is generating 1.5 million page views per week. Other applications include Post Secrets, Motivate Me and Track Bot. The founders are going back to college this Fall but will continue to consult and build Facebook applications. They are not looking for funding.

BrightKite serves location based notifications (”place streaming”) over email, instant messaging of text messages. The idea is to stream content about a place, from a place. Friends are alerted when you are nearby. You receive offers from local businesses. Etc. Targeted towards conferences, bars, parties and public places. It is also a platform for third party applications. Raising $500k in capital.

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  • Sphere It

Trackbacks/Pings (Trackback URL)

  1. TechDumpster » Blog Archive » TechStars - Boulder, We Have a Problem
  2. filtrbox blog
  3. Socialthing, Inc. » Blog Archive » Post TechStars
  4. TechStars Blog » Wrapping up the summer
  5. The Holy Grail For Mobile Social Networks
  6. Eventvue Grabs Angel Round Over The Weekend
  7. Tecnocrunch » Blog Archive » Eventvue Grabs Angel Round Over The Weekend
  8. TechStars » Blog Archive » Wrapping up the summer
  9. socialthing! blog » Blog Archive » The Hype Machine and Admitting When You’re Wrong

Comments

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  1. Jad

    Facebook apps continue to surprise us. Not only do they gain momentum pretty fast but they are also proving to make money (or aren’t they?). The recent acquisition of “Where I’ve been” makes perfect sense for TripAdvisor which reinforces its place in the travel market but what about the other applications? Are facebook users tempted to click on ads or actually take action after looking at one (like it’s the case for “Sticky Notes”)?

  2. A Million Dollar Girl

    One day I should pay something to get ideas like these…lol ;)

    Kisses!

  3. N.Cauldwell

    You can spend months building a fully-fledged web service and still need funding prior to launch, or you can take an easy-to-use + viral concept, apply it to facebook, and start making money in a few weeks. Which does a sane person choose?

  4. ChandraB

    The FB StickyNotes application making $30K/mo is very impressive. I’m not sure how a CPA network meshes into a FB application - anyone care to explain? Are they displaying ads?

  5. patricia

    I feel bad saying this, but none of this stuff - except the facebook app - seems that it’ll stick, in my opinion, and they are not all that innovative. It’s kind of a bummer. All the time, resources, leadership/backing, and every idea sounds like everything else that’s already around - and not doing that great - in the market.

    I think the idea though is that one good concept will eventually come out of these things, so I get it, but I wish the barrier of entry was higher for start ups and enterpreneurs. I think more interesting things would come out.

  6. Becks

    @ ChandraB - ditto. A little more explanation on how a FB app is connected with CPA advertising PLEASE. Thank you.

  7. Jean Sini

    I am actually a bit puzzled by the J-Squared stats. At 4M notes and 1.7M users, we’re seeing an average of just above 2 notes per user. Given the high amount of friction involved in adding any FB app, 2 notes/user doesn’t sound good to me at all: after going through the whole install process, you’d think at least everyone tried to write at least a note so an average of 2 isn’t great. Yet, with the sole activity on the app’s page being to send a sticky note, there must have been quite a few page views to generate $30k/month on CPA. What gives?

  8. David Litsky

    These are my quick-hit thoughts:

    J-Squared Media & KBLabs:
    Facebook applications are the new thing, and J-Squared’s sticky notes application is a great idea. I like how both companies aren’t taking funding right now, a good way to keep operating costs down. I have several ideas for Facebook applications, just need a developer…

    BrightKite:
    I am on the fence because this could be a copy-cat company or a true
    innovator. Would like to see how they move forward.

    FiltrBox:
    My favorite for sure. There will be a future shift from “platform” makers to “content providers” and this concept will certainly help.

  9. whoopie

    lets play this out. lets go to the end of the line on web tech. look at where we’ve arrived - fb apps that hope to make $40-$80k a year. byt wait, thats just one guy!! okay, so one guy is making $80k a year. hey “guy”, go get a coding job at a bank and make $120k with benefits and a max eight hour day.

    the net incomes for these prospects are a joke. why not just day trade? who is putting their life on hold for $80k?

    amusing that from 1999, where people were talking about taking in millions, we are at the point where coders will take retail-level wages just to have own company.

    if these funds are truly “tech” focused, where is the solar and nano work? sorry, that requires real brains.

  10. Derek Scruggs

    @whoopie - Bill Gates and Paul Allen didn’t even make retail wages in the first four *years* of Microsoft. Should they have taken bank jobs too? It took them that long to figure out where to make money and start growing a real business.

  11. jccodez

    Does anyone still develop software with a compiler? Seriously, these web 2.0 apps are nothing short of useless. Do they still graduate software engineers in university? This is the same crowd that talks about “web os”.

  12. Jeff Vick

    Look, you can’t blame Michael for linking to crunchbase - without the links, how will he own the search engine pages for these companies? Would be better to link to the company it would seem.

  13. whoopie

    @Derek Scruggs - bill gates and paul allen were going into a virgin market about to experience massive growth, and by the way it took real brains to program back then.

    why i raise the topic of nano and solar is because these are the true relevant comparisons between these eras - fields that could be (and most likely will be) massive economic engines, but requiring real talent. someone is indeed going to get “bill gates” rich off of those new techs.

  14. TechDumpster (living in First Life)

    These are totally useless businesses. I’ll bet money that not a single one walks away with a $5 MM+ exit.

  15. Carl

    I’ll take that bet Dumpy, how much?

  16. Mike Corrales

    There are a couple winners in here. I love the facebook sticky notes app, but I don’t quite get how they’re making $30k a month via CPA ad deals (do those even exist anymore?) and if it’s truly a CPA, I have a business that needs actions. :)

    I’ve been using the MadKast App on my blog http://blog.greenesthost.com since they were first profiled here, and it’s nice — but I’m not sure what the revenue model will be. Maybe to charge for the blog analytics? I have to say that I’m personally content with Google Analytics.

    Nevermind, I just found it: “They plan on monetizing through splitting revenue with bloggers from contextual advertising sent along with the shared post or links. Charging for more complex analytics tools is another option.”

  17. guy

    More and more startups are sprouting up with a dead simple idea and minimal investment. They might be cool, they might be not, but at the end of the day they are mostly useless and only contribute to time wastage and further cannibalize the bloated social networking advertisement market. This is a whole sub-industry based on just advertising revenue from mega traffic sites. It doesnt help real innovation and productivity at all.

  18. kundojjala

    an inside look at Google China
    http://video.google.com/videop.....;plindex=4

  19. Wayt

    We are building a “YCombinator for the Southeast” in Atlanta this Fall. We’ll provide seed funding, connections, PR/credibility, advice, and community with others like you. Many of us are geeks and entrepreneurs who have started and built web/software businesses and cashed out. We’ve been there, done that, and want to help YOU change the world.

    Can you point us to a great piece of s/w you’ve built and an open-source s/w project you’ve contributed significantly to? Do you have big dreams? If so, please get in touch on Facebook or email me at waytking[at]gmail[dot]com. We want to help you CHANGE THE WORLD.

    Wayt King