Venture Capital in the Rockies (VCIR) Winter, a conference of entrepreneurs, venture capitalists, and service professionals, was held on March 4th in Beaver Creek, Colorado. The day began with a panel featuring business media experts, and was followed by presentations given by twenty-four startup and early-stage companies. To allow for digestion we’ve partitioned this event into four categories, including the Panel, Clean Tech companies, Consumer IT (and Peanut Butter) firms, and Business-to-Business IT organizations.
Alliance Health Networks, Inc. (AHNI) creates social networks specific to disease states (diabetes, sleep disorder) that allow patients to interact, share experiences, and receive current news and information related to their conditions. Joining the network requires users to provide AHNI with personal data, including specifics related to their disease, insurance carrier, and location. AHNI, based in Salt Lake City, generates revenue primarily by selling its collected information as leads, which are purchased by research, clinical trial, and health-driven financial service companies interested in direct-to-consumer marketing. An additional revenue stream comes from a highly targeted, vertical advertising network attractive to health-related product and service firms. AHNI currently operates twenty-nine networks related to specific conditions, with a 50% expansion planned for this year. Social network membership – which now hovers close to 20,000 – has grown organically and through cross-selling associated networks to members with co-morbidities. To date the company has received $3.3 million in venture capital and angel investment, has revenues north of $10 million, and expects to break even in 2Q09. AHNI seeks $6M in further financing, largely for business development and customer acquisition activities.
Fuser offers a single interface for managing multiple email and social network accounts. The target customer is found in the seventy million computer users who currently juggle a variety of online communication tools – work and personal email, Facebook, MySpace, and Twitter accounts – and who seek to simplify by means of an aggregated inbox in which to organize, send, and receive all of their messages. Beyond this primary benefit, Fuser offers users the ability to open multiple tabs of email messages, a feature that mimics the functionality of browsers but has yet to be built into most email systems. Although Fuser is unable to scrape content off of closed networks like Facebook, the company overcomes this problem by essentially logging in as the user to pull the content. The company sees revenue flowing from two sources: First, like Gmail, Fuser can offer targeted advertising based on keyword analysis of message content. The second, and potentially more promising revenue stream, is offering behavioral marketing firms “the Rosetta stone of identity.” In getting a 360 degree view of a user’s digital world, the Boulder-based company can provide marketers knowledge of how otherwise fragmented accounts tie to a single person. The product is currently online, and Fuser is seeking $3-5 million to drive user acquisition.
Buzzwire has created a platform that distributes video to mobile handsets, counting among its customers Verizon Wireless, AT&T, and Alltel. In addition to selling this software-as-a-service to carriers, the Denver-based company recently launched m.buzzwire.com, a system providing mobile customers the ability to discover and share their favorite videos with other users within the network. This community-generated model mimics popular websites such as Digg.com and Del.icious, and like these sites Buzzwire will embed a “BW” button next to video content that allows viewers to promote favorite selections. Buzzwire, encouraged by the enormous growth in 3G capable smartphones, sells ads directly on its network and splits the revenue with its carrier partners. The company expects to have iPhone, Microsoft Mobile, and Android widgets available for m.buzzwire within the next ninety days. Buzzwire, which is backed by Matrix Partners, Spark Capital, and Sequel Ventures, anticipates raising a new round of financing later this year.
SocialEyes offers a social community relationship management (sCRM) platform to marketers, brands and ad agencies that provides the ability to maximize engagements with consumers within the social networking setting. Currently, users of such networks as Facebook and MySpace have limited online relationships with causes or corporations, a shortfall resulting largely from the lack of interactive opportunities available between the user and the organization. SocialEyes fills this void by providing a platform from which marketers can create polls, seed discussions, and offer incentive systems to engage consumers. The Boulder-based company believes such a system will foster the formation of dense, highly loyal communities of consumers who otherwise ignore traditional cost-per-click online messaging. SocialEyes provides the sCRM platform on a software-as-a-service basis (charging by user), as well as packaging it as a white label program for advertising agencies. The company, which boasts Microsoft as a satisfied customer, is looking for $3 million in Series A for the purposes of product development.
iggli, inc, has created the “invite” service that allows communication, logistics planning, and ticket purchasing among groups of friends attending concerts or sporting events. The online service – sold to primary and secondary ticket sellers and promoters – offers potential purchasers the ability to issue ‘invitations’ for a given event to friends over email and social networks. Once a group is formed, iggli provides a platform for these friends to communicate and then presents a purchasing method where tickets are sold in blocks yet paid for by individual invitees. This allows the group to sit together but effectively eliminates the “loser friend” problem, or the hesitation of an individual to buy a block of tickets for fear of not getting paid back by a no-show. The sports and entertainment ticketing market is valued at $30 billion, yet industry-wide half of available seats go unsold. The Boulder-based company believes it can drive higher group ticket sales through its service which will launch in the next 30 days. iggli has raised $2.9 million to date and is seeking another $2 million in venture funding.
PublicEarth is a Geo Web publishing platform that is in the process of creating a Wiki-like database of place information (parks, historical attractions, public art), allowing recreationalists and explorers planning to visit a given geography the opportunity to conduct highly granular searches of potential attractions. Once users have mapped out sites worthy of a visit, PublicEarth will offer the ability to transfer these locations into a variety of GPS devices, such as the iPhone and Nokia cell phones as well as navigation systems from Garmin and TomTom. The Boulder-based company has already succeeded in creating a highly detailed taxonomy of place-specific categorization, and plans to populate this database with information from government, travel groups, and organic user-generated content. Initial target customers are the RV enthusiast and ‘urban explorer,’ both of whom seek enriching experiences when traveling. PublicEarth expects to monetize the service through contextual advertising, content licensing, and lead generation. The company, recently out of stealth mode, has raised $3 million and is pursuing its second round of financing.
Justin Gold of Justin’s Nut Butter promises “to boldly go where not peanut butter has gone before.” Along with providing a better tasting, all natural peanut butter that does not separate, key to Justin’s innovation is unique packaging. The company offers both traditional 16-ounce jars as well as single-serve squeeze packs similar to ketchup packets found in restaurants. This packaging enables on-the-go use, such as direct consumption during outdoor activities for a quick source of protein. Moreover, it provides a “high moving SKU” to stores that can “merchandise it anywhere” (peanut butter aisle, near fruit, or in checkout lines) and gives consumers a trial-size pack. The trial option is especially important to Justin’s almond butter line, which is less familiar to customers but represent a premium-priced upgrade. The products are currently sold in over 220 Whole Foods Stores, Starbucks, and natural food stores. The Boulder-based company broke even in 2008, but seeks additional capital to ramp up sales and marketing efforts. Justin’s Nut Butter is in the process of raising $1.5M from friends and family and anticipates a $2-5M Series A raise at the end of the year.
Aspen Avionics brings advanced avionics to general aviation by offering digital displays similar to those found in commercial aircrafts to private pilots. The displays provide a “coolness factor,” but also enhance safety and reliability and ensure continued compatibility with air traffic control standards. The company’s primary device sells for about $10K and fits into the existing space for mechanical equipment. At this price the company achieves a 55-60% gross margin while still undercutting the nearest competitor’s price by half. The company offers an add-on multifunction display for $7900 that utilizes the same hardware. The company shipped 1500 units in 2008 through its network of dealers, who also perform the installation. Plans for expansion include sales of software upgrades through an SD card and a helicopter product, which should be available by the end of 2009. The company expects positive cash flow and EBIDTA in 2010 and is in the process of raising Series C financing which will total $20M.
Please check back with RockyRadar (@rockyradar) for more coverage of the VCIR company presentations.
