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

Tag: Sequoia Capital

Structure Conference: A Chat with Paul Mikesell, CEO of Clustrix

PaulMikesell-Clustrix0610 Clustrix is all about clustered database systems for Internet-scale applications. It claims the first solution to "combine the high scalability of NoSQL key-value stores with robust relational database functionality, immediate transactional consistency, and seamless deployment of SQL."  Lest you think it's blowing smoke, the company was funded last month to the tune of $18 million by Sequoia Capital, U.S. Venture Partners (USVP), and ATA Ventures. Clustrix-logo

CEO and cofounder Paul Mikesell (who also participated in a great panel at the Structure conference) was previously cofounder of Isilon, which went IPO a few years ago and recently has had a valuation of around $1 billion.  Now he's back to build another company from scratch.

Paul talked to me about what his new firm is doing, and why.  Here's the news announcement Clustrix made at Structure.

Download or listen to Graeme's interview with Paul Mikesell of Clustrix about what's really needed to reach Internet scale.. (MP3)"

Kayak Eats Sidestep – Thanks, ‘Santa Sequoia’

Some of you may recall I’ve posted a lot in the past on the topic of "Travel 2.0."  Here are my twelve posts, which must total something like 20,000 words. I still get a fair amount of traffic to those, even though most are at least a year old.  The subject of many of them was one travel company in particular…a Minnesota startup.  More on that in a bit.

Back to the main impetus for this post today: a big announcement that many of you may have missed, since it occurred over a holiday weekend — when, hopefully, most you are not online. [Sadly, your trusty blogmeister here has to be…one of the occupational hazards of being a blogger!]  Here’s the latest big Travel 2.0 announcement: Kayak.com Secures $196M in Financing Round.

Kayakeatssidestep_2 That’s right — close to two hundred big ones, enabling Kayak to acquire ("merge with") fellow travel metasearch site Sidestep. Sequoia Capital led the round, which included many other existing investors in both firms, and VC superstar Mike Moritz gets a board seat. This is the largest amount of dough in one Travel 2.0 deal that I can ever remember seeing.  I thought ITA Software raising $100M in VC last year was a big deal, but this dwarfs that, all in one big, fat round.  [Interestingly, that ITA deal shares one big investor with the Kayak deal: yes, our Santa Claus friend, Sequoia. Do you get the idea they like Travel 2.0?]

It’s a bold move to elevate the combined entity into what the release labels as one the five top travel brands (by which they mean the amount of Internet traffic).  Moritz is quoted in the release as saying the deal "reshapes the largest sector in online commerce."  He’s right about the size — I’ve seen numbers saying it’s approaching $100 billion. And I was actually quite surprised to hear experts at last year’s "Travel 2.0 conference" call travel, overall, the world’s single largest industry.  So, this is big stuff — I think we have that established now…  🙂

What was the Minnesota startup I mentioned I was writing about last year?  That would be Flyspy.com, a third-generation airfare search engine — still in alpha as we speak (but be patient). Flyspylogo2_2
Keep you eyes open for some news from this startup. I’ve continued to stay in touch with the founder, Rob Metcalf.  No, it’s not about huge amounts of money — the business doesn’t require that now.  But it’s a significant development for a startup that’s been working on its idea for close to five years now. Let’s just say Flyspy is having a very nice Christmas.  Cheers to you. Rob!  (More on this later.)

UPDATE (12/28/07): You say you hunger for more data on this deal? And you just love charts? Boy, do I have a deal for you. You’ll get your fill here: Compete.com’s Analysis of Kayak and Sidestep Merger.

Wow, It’s Wiki-Wiki Week!

First, I hear that MindTouch, which was presenting at the Community 2.0 conference this week in Vegas (which I’m bummed I couldn’t attend), announced the re-launch of its free.pngki site under the new name (and actual Internet domain) “Wik.is”. You can read the press release here. Wikishomepagewmhtalogo The company’s wiki-hosting site was previously located at Wiki.com, but, due to a licensing issue with the domain name operator, MindTouch had to scramble to get its customers’ wikis migrated rather quickly over to a new domain. [More on that later.] I had the opportunity to catch up with Aaron Fulkerson, VP of Product at San Diego-based MindTouch, to do this brief Q&A:

Tech~Surf~Blog: What’s the new site for? And who is it for?

Fulkerson: MindTouch Wik.is gives an organization or individual the ability to integrate a fun and easy-to-use community tool into their existing web site. We offer a free, ad-driven version but, for only $60 a year, users can have an ad-free community wiki that has a consistent look, feel, and navigation with their existing online properties. It’s been my experience that, by giving users a consistent look-and-feel, they’re more inclined to use the technology and participate in the community. The benefits to users of Wik.is include additional and fresh content, community growth, and much more. Wikistypes

Tech~Surf~Blog: Why does MindTouch sponsor this site? What’s in it for you?

Fulkerson: Well, for starters, $60 a year for every organization that upgrades to the Pro version! Seriously, though, we priced the Pro version in order to make the most basic functionality accessible to any organization. We believe that every web site should have a community wiki embedded into it. Wikis are such a powerful and easy-to-use tool that every organization’s web site should have one. At only $60 a year, that’s now a reality.

And, if a user opts for just the free version, we’re still building awareness about MindTouch and our other products. Whether you’re a non-profit or an individual interested in a simple and fun community site, a small business or a large enterprise looking for a community-driven Intranet, or a major media or publishing company seeking a user-generated content strategy, MindTouch has a product that will provide proven benefits. MindTouch is the most comprehensive vendor of wikis, and we’re proving it again.

Tech~Surf~Blog: Explain the “re” launch of this site — what was it before? What will it have from the original site? How is it similar or different?

Fulkerson: Wiki.com was a site that previously licensed our software. MindTouch severed relations with the operator of this site in early November 2006, but, in order to not hurt the end-users of Wiki.com, we allowed Wiki.com to continue to use our software for communities that were already created. Later, in January of this year, when a community member of Wiki.com informed us the operator planned to pull the plug on Wiki.com in 72 hours, we offered to migrate all the content to our servers. We were very concerned that people were about to lose their community and content. It turns out the operator of the site, too, was clearly concerned about this and approved the migration. We worked very hard, almost around the clock, over 48 hours to migrate the sites.

Tech~Surf~Blog: Who is now running Wiki.com (which just also relaunched), and does MindTouch have anything to with it anymore?

Fulkerson: I don’t know the details. We have no involvement with this.

Tech~Surf~Blog: On a side note, how are you and the others who relocated from St. Paul to your San Diego office enjoying your new home?

Fulkerson: I can’t speak for everyone, but my wife and 14-month-old daughter really like Little Italy, as do I — that’s the district where we reside in downtown San Diego. In fact, I love it! It’s a three-block walk to the new office, and I can walk the whole way with a wi-fi connection! There’s a real sense of belonging in the community.

Tech~Surf~Blog: Will you be visiting the Twin Cities again soon?

Fulkerson: I’m really excited to be presenting on a panel at the upcoming Minnesota High Tech Association Spring Conference, on Tuesday, April 10, 2007. I’m looking forward to being back in Minnesota and connecting with friends. [Note: Yours truly is moderating the panel.]

Tech~Surf~Blog: What’s the reaction been to your new Wik.is site so far?

Fulkerson: Traffic has been stellar. [The chart here I grabbed from Aaron’s Flickr page.] We had almost 400 sites register just on March 13! I was suprised. Wikistraffic031306 I really believe the Pro version is exactly what every organization and web site needs in features, and because you can give it a consistent look, feel, and nav. I think about all the organizations I’ve been involved with in the past and know this would be a big help.
[End of Q&A.]

Anyway, back to “Wiki Week.” On the same day as MindTouch makes its announcement, TechCrunch comes forth with a story about another fairly significant development in the wonderful world of wikis: WikiSeek Launches Community Edited Search Engine. WikiSeek is no upstart — it’s two years old and funded to the tune of $5 million by Sequoia Capital.

Just a few days prior, as if to pre-empt the above, the much-hyped new venture of Wikipedia founder Jimmy Wales planted another media story: Wikia plans editable Web search engine.

Then, as if this wasn’t enough to make this week extremely wiki-ish, Business Week up and publishes a CEO Guide to Wikis, with several feature articles on the topic — more than you thought you ever wanted to know about wikis. It’s as if someone declared this National Wiki Week!

Meantime, just today, Jimmy Wales’ new Wikia.com venture took a pretty good bashing from one commenter. Search Insider’s Gord Hotchkiss didn’t hold back on his skeptical view of the whole thing in this Mediapost piece: Jimbo Wales And People-Powered Search: A Long Shot.

We all know the human being can only scale so far, but how far can a collective of them scale? I guess that’s the question when it comes to wiki-based search. Can people really ever be expected to do as well or better for search as algorithms can, at least with any speed? And can they be free of politics, as algorithms surely would expect to remain? 🙂 What do you think, is this Jimbo guy smoking something exotic with that “other peoples’ money” he scored for this new deal?

Give YouTube a Break!

Warner Music did. As this Newsweek story describes, personal relationships really do make a difference in this business. It’s just a bootstrapped startup trying to find its way — they deserve some slack! Youtubenewsweek The sleezy entertainment industry goons need to back off and let innovation bloom. And they will, because there aren’t any deep pockets there to sue yet. The question instead, though (as the article says), is the huge amount of capital it will take to keep YouTube going. The boys at Sequoia have already thrown in $11.5 million — but that’s just the beginning of what this thing will need. Try $2 million a month, some say, just to run the service. Wow, do they need ad revenues — fast! Meantime, how much more will the VCs bet? Well, don’t think they (and their friends) can’t pour it on — and will. Yet there are those already predicting YouTube’s demise….read Analyst Firm Predicts YouTube Is ‘Goin’ Down’ .

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