Graeme Thickins on Tech

Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

Page 25 of 143

W3i Rebrands and Launches New ‘Native’ Ad Platform; Names Trip Hawkins as Senior Advisor

(Note: This news appeared earlier this morning on Minnov8.com.)

NativeX_graphicW3i, one of Minnesota's largest and fastest-growing Internet companies, with headquarters in St. Cloud and offices in Minneapolis and San Francisco, just made a major announcement today.  The company has changed its name to NativeX and completely rebranded around a new platform to help developers better monetize their apps. The focus for W3i has long been primarily (though not exclusively) on game apps, so it's no surprise the announcement was timed to hit the wire as the company prepares for the huge Game Developers Conference, which takes place all next week in San Francisco.

With this move, the company is positioning to jump on what is becoming a clear trend toward advertising that is more specific, or native, to various web platforms, as opposed to the old, tired banner advertising, which everyone loves to hate.  W3i, now Native X, clearly wants to own the concept for apps, and what better way than to use the term right in their name?

A key part of the announcement today, adding mucho cred with the gaming community, is the addition
TripHawkinsof Trip Hawkins as an "advisor to the board."  Trip, whom the company rightfully calls an "industry giant," has a history going back to Apple's early days. You can read all about him here on his Wikipedia page.

“Native advertising is the future," Hawkins says in the news announcement. “Every major publisher on mobile and web has their eye on native advertising right now. NativeX is proving that we as an industry can do better than banner ads.”

What many observers would find even more interesting about this new initiative of W3i (now NativeX) is that a guy named Young Sohn is chairman of its board.  (More on Young below.)

I conducted an email interview with Rob Weber, cofounder and EVP of NativeX, after I got early word of this news last night:

Why did you decide to rebrand the company?

RobWeber"As we reviewed our marketing strategy, it became clear to us that the name 'W3i' didn't convey what we are all about. In the digital media world, most industry experts would agree that display advertising is broken. Even the largest banner ad units result in CPMs for publishers only in the $2.00 range, max. The reason for the low performance is display ads don't drive engagement, and ultimately value, for marketers. This is why Google invented a more 'native' ad unit for its business (paid search), Facebook created new ad units built for the news feed, Twitter launched sponsored tweets, and, locally, DoApp introduced 'RSS news ads.'  We are focused on solving this problem for consumer app developers, and we felt like the name 'nativeX' speaks directly to where we are headed — creating new, native ad units for developers that bring strong monetization to their business."

How did you get connected to Trip? What role will he play?

"I was first introduced to Trip about a year ago by a mutual friend on a trip to San Francisco. We stayed in touch, and it became clear he could help us in a number of ways. Trip will provide a strategic perspective to our board with respect to what is going on in mobile and in the app space, which is dominated by game apps. Trip will help us build even stronger ties and awareness within the broader app world, and specifically in the Bay Area. On a personal level, Trip has also been helpful as a mentor to me."

How long have you been planning this?  Who drove the rebranding?

"Plans have been in the works for a few months, and the rebranding effort has been led by our new VP of
DianaLaGattutaMarketing, Diana LaGattuta, based in San Francisco." [Ed.: Her photo at right, and her bio appears on the NatixeX web site.]

What changes will result to the organization locally, if any?

"In terms of local changes, we expect a clearer message to our target clients, along with the new technology we're launching, will enable us to continue to increase the value of our company, which will result in us ontinuing to hire even more folks locally."

How will this affect your SF organization? Will you be expanding it?

"We are looking to grow additional headcount in all three of our offices — St. Cloud, Minneapolis, and San Francisco. The Bay Area has a lot of relevant talent for a business like ours, and we plan to add significant headcount there. We've seen that the Bay Area talent we already have gives us the opportunity to increase our perspective, which helps the rest of the team grow faster."

Does it mean any significant new hiring plans right away?

"We have lots of hiring plans immediately. Check out our career page for specifics." [Ed.: That would be here. No specific jobs listed there as I publish this, but there sure is some enticing copy. And an email link to apply.]

What new partnerships, if any, will become a part of this new initiative?

"We will continue to ramp partnerships with mobile and desktop app developers. For example, in October we announced a new partnership with one of the globally most popular mobile app developers in the world, Imangi Studios, maker of the smash hit Temple Run. We have some other new partnerships that will be similar, but taking advantage of our new native technology."

What are the long-term implications in this for your company?

"We think the rebranding and new technology will help us create further differentiation in the market. We think we can own 'native advertising' within the app space. Expect to see more specifics in terms of new products, technology, partnerships, and more tied to this 'native' approach."

What if anything can we read into this because you have the Chief Strategy Officer of Samsung on your board?

"Young was 100% supportive of our rebranding."

Rob Weber and his company have long been champions of developers, not only helping them make money with their apps, but even helping them get funding to launch or expand. He wrote a guest post on VentureBeat earlier this month, Six ways the Five Horsemen of Tech can build better app ecosystems, in which he spoke about that. (The "Five Horseman" being Amazon, Apple, Facebook, Google, and Samsung.)

#3 Lend a Hand: Create Funding Programs for Developers

This one is also fairly obvious. On one hand, you have large thriving companies generating billions of dollars in revenue every year. On the other hand, you have an app market that gets more cutthroat every day and is filled with bootstrapped developers struggling to stay competitive. All of the horsemen should be creating sizable developer funds to help them build the teams and infrastructure they need to make great apps. Such funds would also encourage developers to leverage the horsemen’s technology and make something innovative on their platform. Samsung is a great example of this. With their recently announced $100 million Samsung Catalyst Fund, Samsung will expand their brand, work with great developers, and help build their app ecosystem as clarified at the recent Dive Into Media conference.

Horseman that does this the best: Samsung*

*Full disclosure, the Chairman of our board at nativeX, Young Sohn, is President and Chief Strategy Officer at Samsung, and is involved in overseeing Samsung’s fund.

Young Sohn will surely play a role in guiding NativeX to even more growth going forward. Stay tuned!

And, by the way, I'll be reporting from GDC next week myself, inlcuding updates about Minneapolis-based startup Canopy, which also will have a big presence there.

——-

(My disclosure: I provided consulting services to W3i in past years, but have no current contractual relationship with the firm.)

 

Punch Through Design, a Startup with Roots in Minnesota, Is Making a Name for Itself in SF

ColinKarpfingerSome pretty amazing tech entrepreneurs come out of Minnesota. I can attest, as I've worked with way more than one hundred of them, and written about my fair share. Colin Karpfinger is an excellent example, one whose story inspired me to want to tell more people about him.

It all began when we reconnected recently by email, after originally meeting at a Minnebar event some years ago through a common client connection. I knew he'd moved to San Francisco (not the first of my entrepreneur friends to do that!), but he had kept in touch with
PunchThrough-logooccasional email reports — which impressed me. Pretty much every single successful entrepreneur that I have known is an excellent communicator. They don't forget where they came from, and those they met or who helped them early on. They network well, they take advantage of mentors and advisors, and they extend a helping hand to others, especially other entrepreneurs when they can. The fact that Colin's latest blog post made me aware we shared another passion, besides entrepreneurship, only made reconnecting with him all that much more fun. (More on that later.)

When Colin told me he'd be in Minneapolis for a few days recently, I suggested we meet for coffee at my new favorite place to work one day a week: the CoCo coworking space on the Historic Grain Exchange trading floor in downtown Minneapolis. (That's where I shot the photo of Colin you see here.) There, I got an in-person update about the success Colin is having building his business, primarily out in the center of the tech universe, San Francisco, but still maintaining his ties to Minnesota.

That business is called Punch Through Design, which describes itself thusly on its web site: "We're a small and agile group of developers in San Francisco and Minneapolis. Over 90% of our designs have been iPhone accessories. This specialization allows us to know the details of Apple's Made For iPod/iPhone/iPad (MFi) program front and back. Our experience allows us to help guide clients through the somewhat complicated process in a quick and efficient manner."

Products that Punch Through has contributed to, with consulting, design, and engineering services, include:

• The Basis watch, a device that tracks heartbeats and more to improve your health. It uses
BasisWatchBluetooth 2.1 to pair to an iPhone or Android phone. PunchThrough assisted Basis in obtaining Apple's "MFi" approval.

• ITAMCO's industrial Bluetooth transmitter – the world's first.

Air Guitar Move™, a motion-sensing guitar pick for iOS (shown in red) — a product Colin and a partner developed. (It was a Kickstarter project
AirGuitarMove.pngckthat successfully raised its funding goal in July 2011.)

• A recently developed app of its own called LightBlue™, a Bluetooth Low Energy test app that lets developers test both their hardware devices and their iOS software. (More than 2,500 people are using it currently, and it has 14 five-star reviews.)

LumoBack, a company that's received a lot of attention for its Bluetooth Low Energy posture sensor
LumoBack(shown at right).  It received funding from Eric Schmidt and launched at DEMOfall 2011. ("Great team, fun guys to work with, and a very cool, simple product," Colin said.)

popSLATE™, a second-screen case for your iPhone, which was a successful Indigogo project, raising $220,000 as of January 15.
PopSlate-iPhoneCase
• And other clients that can't be named yet due to confidentiality agreements — but watch for future announcements!

An Entrepreneur Is Born

Colin is originally from Wisconsin, where he started tinkering with electronics and building things when he was only 12.  He attended college at UW-Eau Claire, but, some five or six years ago, he was attracted to the larger electrical engineering program at the University of Minnesota. 

The story of how Colin got to where he is today with his business starts some four years ago. Though a whiz at electronics, school just wasn't challenging him (more on that later). With his studies not keeping him busy enough, he longed to start his own hardware engineering design firm, even while working part-time at the Minneapolis office of the large product development firm LogicPD, as an associate electrical engineer, while attending the University of Minnesota.

Punch Through Design was born in mid-2009, while Colin was still taking classes at the U.  Some months later, after conferring with people he trusted, he decided to drop out of school and go West, where he knew there was much need for his talents. "I moved to San Francisco on February 12, 2010, leaving behind many great friends in Minneapolis, but fortunately soon meeting a lot of new ones in the Bay Area," he said.

Colin had plenty of consulting work, but it wasn't long before he needed to make his first hire.  That was Mike Waddick of Minneapolis, who came highly recommended, in the summer of 2011.  Mike moved to SF to hold down the fort while Colin spent three months in Spain that year. 

A few months prior to that, there was a major turning point for Colin. "With help from others, I was able to launch my first product, 'Thumbies.'  It hit the shelves in Best Buy stores in May 2011.  Walking into a store and seeing the product that started with a broken Nintendo controller and SuperGlue was a surreal experience.  As a kid, it was hard to imagine how an 'invention' could find its way in a store.  I felt like I had cracked the code."

But the honeymoon was short. "Unfortunately, I learned that getting your product into stores doesn't mean you've made it.  Thumbies sold at an average rate, and the product is no longer being sold.  I learned a lot, including a few things that I consider to be the reasons for less than awesome sales. This was hugely valuable in experience for me, even though the product was not a monetary success."

Soon after, Colin returned fulltime to consulting with Punch Through Design. "We wrote some nice blog posts that helped us reach #1 on Google for the search term 'iPhone accessory product development,' and that resulted in increased business. In the summer of 2011, I had Mike Waddick take over the lead engineering role on consulting projects, and his good work is one of the main reasons I was able to focus my time on starting a new product, Air Guitar Move™ — working with a cofounder named Ron Mannack. It was a motion-sensing guitar pick that let you strum in the air, with your iPhone becoming a guitar via a companion app."

Air Guitar Move was successfully funded as a Kickstarter project in July 2011, and within a year 700 units
Colin+partner-WiredMag were shipped to backers. "Taking what I learned from Thumbies, we developed this product under our own brand. That led to a slew of lessons learned about overseas manufacturing, music licensing, iPhone app development, game design, motion sensing, packaging design, Apple approval, and distributor agreements."  (Colin's partner on this project continues with the venture.)

(If you're interested in history, a more complete story of Colin's experience with Thumbies, and then the beginnings of his experience with Air Guitar Move™, is well documented in the Wired article from June 2012, where the above photo appeared: In the Kickstarter Future, Hardware Is the New Software, by @RyanTate.)

What Others Have to Say

One of the first clients of Colin's business, before he set up shop in San Francisco, was Matt Bauer, who founded a startup here in Minneapolis called PedalBrain. Matt is one of Colin's biggest supporters and I'm sure was instrumental in inspiring Colin's entrepreneurial pursuits. I asked Matt (a former client of mine, and a developer I have great respect for) to give me his perspective on Colin, who was his contract hardware designer for the PedalBrain product:

"The name of Colin's company, Punch Through Design, refers to an electrical property of transistors. It's a property defined at the extreme case of a transistor where the drain and source regions merge. It's analogous to Colin and his work. He is the merging of a maker/hacker/entrepreneur with that of a precision engineer/manufacturer/large company CEO. He and his team are producing tools and solutions for companies large and small to be at that intersection of hardware and software. No one is merging these two worlds together better than Colin, and no one is busier doing it."

Harold Slawik, a partner in a Minneapolis law firm focused on tech startups, NewCounsel, had this to say about Punch Through's founder:  “We've been working with Colin for a couple of years and have been impressed with what he’s accomplished since taking the plunge with Punch Through. He has the intelligence and the drive to make it big. He’s also very mature and sensible in his business dealings, especially given his age. He is one of the three or four youngest among our active client group of approximately 75.”

A Side Project of Colin's

This past September, Colin shared with me by email his experiment to improve higher education.  He started a program he calls "The First Lecture" to try to address some of the issues he encountered during his time in university.  His theory is that school teaches students the "how" but not the "why."  He believes that leads to a lack of motivation, "and turns brilliantly beautiful and interesting subjects into drudgery."

His experiment is to see how much he can improve a student's experience by simply giving one lecture providing the right "why," or motivation to learn.  Some months ago, Colin gave his first talk for the Microcontrollers class at the University of Minnesota, thanks to the Electrical Engineering department, which allowed him to do do.

To assist in this effort, Colin even donated some equipment to allow the EE students to build things outside of school.  Previously, this equipment was only available in the University's labs; students could not take it home with them.  Thanks to Colin and an equipment supplier, each student in the class received a PicKit2 programmer and a USB logic analyzer.

Here's a video link to Colin's lecture at the University of Minnesota. (Screen shot shown.)  Colin tells me he's now also working with the first university he attended, UW-Eau Claire, to improve its electronics
Colin-Lecture-UMNcourse.  "It's a small school but was really beneficial to me, and part of the reason I got started on my current path," he said. "My professor and advisor there, Dr. Kim Pierson, has been my advocate even after I dropped out of school, which speaks volumes about him. He's there to help out the students, whether they're in school or not." 

And what of his relationship with the University of Minnesota?  "I've stayed in touch with some students from the class I lectured in, and with University personnel," said Colin. "I am in fact actively recruiting now for one or two engineering positions, and the U is a promising pool of talent.  As to the future of my lecture program, I'm working on starting a 'Maker Scholarship,' where people could get scholarships not just for school, but for the projects they're working on, which I believe have a higher return on investment."

Colin ended a recent email update to friends and supporters with this note: "If you too think that higher education can be much better, I'd love your support.  Either by sharing my video link with friends, or helping to expand this initiative to other schools in some way, shape, or form. If you have any ideas, please contact me."
ColinSurfing_Mexico

But That's Not all in Colin's Life

So, you'd think all of the above would be exciting enough?  Wrong!  Colin and his team keep life very
interesting with other pursuits — first of all, surfing. (That's him stylin' a radical longboard bottom turn in Mexico recently.)  Surfing is how I connected with Colin a month or so ago, after seeing a
blog post he did that talked about the team heading to Santa Cruz to hit the beach, part of an offsite retreat of sorts. (The other shot shows three of the team  doing a surf check on that trip.)         

Then I learned, not only does Colin surf, he's into kiteboarding, too! … as part of the famed MaiTai
SurfCheck-PunchThrough_teamGroup.  Hey, this thing is not your normal group of weekend warriors — check out this story about the MaiTai crew in the December 2011 Forbes: Kiteboarding Techies Generate $7 Billion In Market Value.

But, wait, there's more: for these kiteboarders, water isn't enough — they also kite on (you guessed it) snow.  Colin just returned from Utah, where one of the group had previously written this blog post: Utah Snowkiting with Charles River Ventures and MaiTai.

Punching Into the Future

I asked Colin for a closing thought.  He immediately wanted to praise his team.  Mike Waddick, his first hire, now works in Punch Through's office in SE Minneapolis, joined more recently by Ray Kampmeier, still a student at the U of M.  Ray will move to San Francisco when he graduates in May.  Another addition to the team came when Colin hired SF-based iOS developer Kevin Johnson in the summer of 2012, to help round out Punch Through's product development services.  Thus, the team is now four people total — "but we'll be five or six by the summer," said Colin.  In addition, the company uses other contractors for industrial design, mechanical engineering, and overflow software work.

"I'm very thankful for the great people I get to work with at Punch Through," Colin said. "Big shout-outs to Mike, Ray, and Kevin!"

It's easy to see that Colin is building a strong culture at Punch Through Design, which will go a long way toward ensuring the continued success of the firm.  As I said, Minnesota produces some amazing entrepreneurs — and, even if we do have to share a guy like Colin with Wisconsin, and now California, I know he'll be a continuing source of pride to our state.  He proves again that one doesn't necessarily have to complete a degree program to be inspired by our great University.  A love of learning — both formal and informal education — is a huge part of being an entrepreneur. But, in my book, passion and perseverance, plus the ability to recruit and motivate others, make all the difference in succeeding.

And a little surfing and kiting surely can't hurt, either.

——–

Follow Colin and his team's pursuits on the Punch Through web site, the company's Twitter account, and on its LinkedIn and Facebook company pages.

——–

UPDATE 5/7/13: Just learned that a Punch Through client has launched a cool, new product that Colin and his team helped make a reality: Booze-Tracking Bluetooth Breathalyzer Counts Down Your Return To Sobriety.  Talk about a contribution to society!  🙂

Four Minnesotans (and One Transplant) Form the Core of New VC Firm Icon Venture Partners

IconVenturePartners-logoNews broke today about the founding of a new venture capital firm composed mainly of Minnesota names, including partners from a firm with a name familiar to many here in Minnesota that is now being retired.

In a story just published a few hours ago, Icon Ventures Forms from El Dorado's Ashes, Fortune venture capital reporter Dan Primack wrote:

"El Dorado Ventures is kaput, after 27 years of investing in early-stage
companies. But two of its partners
JeffHinck hope to continue working together, on
a new platform that they're calling Icon Venture Partners." 

He said the cofounders — longtime colleagues Jeff Hinck (top right, based in Minnetonka, MN) and former Minnesotan Charles Beeler (below right, based in Menlo Park, CA) — are seeking to raise $80-100 million for the firm's initial fund. As general partners in El Dorado Ventures (Charles for a dozen or more years, and Jeff for the past few years), the duo was instrumental in Series A funding rounds recently for two Minneapolis-based startups: TST Media (known for its Sport NGIN platform), and enStratus — which also just changed its name, to enStratius. It's more than a name change for the VC firm, however, as the story implies El Dorado is closing down, with Icon being formed as a brand-new entity, albeit with some of the same players.

What's more interesting is that three other Minnesotans are mentioned as part of a "large group of venture partners and advisors" in Icon Venture Partners, including Zenas Hutchinson (at left below), Jeff
CharlesBeelerHinck's longtime colleague and fellow partner at Vesbridge Venture Parters (now apparently inactive, so Primack's story implies).

The other two Minnesotans named are Phil Soran (below center), who some 10 years ago cofounded storage company Compellent, acquired by Dell in 2011. Prior to that, Soran cofounded Xiotech, which was acquired by Seagate in the late '90s.  Soran's longtime associate Dennis Johnson (below right), who served in senior sales positions at both storage firms, is the other Minnesota venture partner named in the story. Icon Venture Parters' Hinck and Beeler were early investors in both of Soran's startups, Hinck then a partner at Palo Alto & Minneapolis-based Crescendo Ventures, and Beeler at Menlo Park-based El Dorado.

(Disclosure: Crescendo Ventures was a client of my consulting firm some ten years ago. Compellent was also a client in early 2011.)


ZenasHutchinson 
PhilSoran  
DennisJohnson

 

Thoughts from a Google event in #Minneapolis …

Google and CoCo are cohosting a day-long event today on entrepreneurship and innovation in Minneapolis, including speakers, workshops, and panels — and I'm hanging out here right on through to the closing
GFEmpls-signhappy-hour reception. It's just past lunchtime now, and I thought I'd punch out a post. The afternoon sessions will be split into two tracks: one for businesspeople, marketers, and creatives, and a second for developers and those interested in technology. (I'll be sitting in on the former.)

"Google for Entrepreneurs" is the specific group CoCo partnered with for this event. But, as of today, we know this partnership is going well beyond just today's activities. If you follow the Minnov8 site, where I also blog occasionally, you may have seen my story this morning: "CoCo Ties Up with Google." Big news for our town.

To understand what the GFE program is all about, Mary Grove, who heads it up, explains on this YouTube video. Essentially, it includes Programs, Events (today's not listed – haha, even Google can't keep its own pages updated!), Resources — and you can guess that means  tools and online resources like Apps, Adwords, G+ for Business, dev tools, Groups, free websites, consumer surveys, Google cloud platform, etc.

In this glowing Forbes article from September 2012, "Google Launches Global Entrepreneurs Initiative,"  
the writer goes on to note what GFE isn't: "Google Entrepreneurs is not an incubator, an accelerator or a
GFEmpls-panelventure fund. It’s merely a connection to all of these things."
  I was particularly interested today in finding out what any connection might be to Google Ventures, the company's very own VC fund. (There is very little connection, it turns out, though they seem to fit under the same box on the org chart.)  By the way, you may think you know Google Ventures, but get this — it was recently ranked as the third most active VC firm in a study by CB Insights: "Google Grows Into a Venture Capital Power."

An interesting initiative you can find on the Google Ventures site is called Startup Lab. Not sure how that fits on with the "Google For Entrepreneurs" initiative, if at all, but there sure seems to be some overlap the way it's described. Note the web page says "we’re just getting started."  Well, um, yes — but their last blog post was July 2012. Hmmm. But they do have a current schedule of events, including several this month, all saying "at Startup Lab," which presumably means Mountain View (it doesn't say).

But Google marketing initiatives aside (which is essentially what GFE is), I'm hungering for some insight into other, related and developing Google news,  How about you?  Like this:

"To get products into more hands, Google will open its own stores by the end of the year" (9to5 Google)
"Report: Google to open retail stores in major US cities by yearend" (HuffingtonPost)

Could the big GOOG be planning a store in Minneapolis? As in downtown? Inquiring bloggers want to know…

I'd also like to ask Minneapolis mayor R.T. Rybak (who spoke at today's event) what he thinks about Mayor Bloomberg's announcement a couple days ago of a "We Are Made in NY" campaign to promote his city's startups: "NY mayor launches bid to help tech startups."  I'm betting R.T.'s city probably doesn't have budget for digital billboards and bus ads hyping our "Made in Minneapolis" ventures.  But then, we're a little smaller than NYC… and Bloomberg throws millions around like chump change.

In Minnesota, we don't do big, pushy campaigns about ourselves.  We just talk about such stuff over coffee and cookies.  Oh, and in blogs that no one in New York has probably ever seen or heard of.

Kedrosky: Venture Capital Contraction Has Ended, But Accelerator Contraction Looms

PaulKedroskyPaul Kedrosky, an investor, CNBC commentator, and a fellow at the Kauffman Foundation, sees a train wreck coming. In a post published Febuary 4th, entitled "Venture Capital Contraction Has Ended, But Accelerator Contraction Looms," he first says:

"After arguing a few years ago in a Kauffman paper that the VC industry needed to shrink back to heath, it has mostly done so. Granted, the industry isn't exactly thriving yet, but most of the asset class shrinkage is now over, so further gloom and doom is more a reflection of a particular writer's psychological state than of the merits of cutting VC industry by larger amounts from here."

Then he goes on to cite another shinkage he thinks is imminent:

"…a collapse in the embarrassingly overheated accelerator segment…will almost certainly come later this year…"

 

via www.growthology.org

 

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