A Series of Small Things
Random Thoughts on Building Venture-Backed Companies in the Midwest
Attention charities: Who needs some money?
9.27.11 by Dov
We’re pleased to announce our recent financing, along with MK Capital, of BidPal Network. BidPal uses handheld devices (think iPod Touch) to automate auction bidding, donations and payments for charitable fundraisers. Their platform drives additional bids and donations, as people get caught up in the excitement of bidding without having to stand over paper “bid sheets” (which also serve to discourage them from bidding against their friends). Their software also streamlines the management of the event – making pre- and post-event activities much simpler for the charity. And – to top it all off – in many cases, a sponsor can be found (who gets to advertise on the devices) to cover the cost of the service, making it pure upside for the charity! How cool is that?
The Indianapolis-based company is led by CEO Scott Webber, former CEO of Software Artistry and Autobase.
Any charities looking for help with their fundraising – just give them a call/email to see what the excitement’s all about.
{end shameless sales pitch}
Is New York’s Tech Boom Sustainable? – NYTimes.com
9.27.11 by Dov
Is New York’s Tech Boom Sustainable? – NYTimes.com.
With New Technology, Start-Ups Go Lean – WSJ.com
9.16.11 by Dov
With New Technology, Start-Ups Go Lean – WSJ.com.
Scale Computing vs. The Competition – YouTube
9.16.11 by Dov
Scale Computing vs. The Competition – YouTube.
Cheap launch costs increasing number of angel-backed startups
9.14.11 by Dov
HEARD ON THE STREET: Start-Ups Feast on Angel Food – WSJ.com.
Right in the heart of it all
9.12.11 by Dov
Battelle, advisor to the Ohio Third Frontier and my former employer, has recommended to the Third Frontier Commission that it focus its development efforts on 10 specific high-tech areas. Included on the list are several – business software/enterprise computing; health information technology; medical technology; and elements of automation technology, situational awareness and surveillance systems – that we focus on at Allos.
This is exactly why we created Allos – to address the growth in these industries which are emerging in Ohio and the broader Midwest, but for which there is limited early-stage venture capital available today.
We’re looking forward to the increasing number of companies we expect to emerge from these segments as the Third Frontier continues to accelerate the creation of new businesses in the state. It’s just too bad we can’t fund them all…
Kicking the patent can
9.2.11 by Dov
There’s a lot of talk about Paul Graham’s (of Y Combinator) proposed patent pledge. Basically, it asks established tech companies to promise not to enforce their patents against companies with less than 25 people.
While I suppose it’s better than nothing, I’m not sure it’s a whole lot better. First of all, unless you’re still living in the bubble (and maybe all those coastal folks are), I’m not sure a VC wants to back a company that plans on selling out (and thus presumably avoiding the patent infringement issue) before it reaches 25 employees. And even if you do, having those patents out there can impede your ability to exit, as they can/will be used against the company by a potential acquirer – even if they have the resources such that they don’t actually care.
The real problem here is that there are too many patents being issued for “technologies” (often methods) that aren’t really all that novel. The patent system was designed to be a tradeoff – you, Mr. or Ms. inventor, get a government-supported monopoly on your cool new idea. But in exchange, you have to teach the rest of the world how to do/make what you figured out, so they can build on it and eventually do it themselves. If any developer would have solved the problem the same way that is described in the patent application, you haven’t really taught anyone anything (what in other disciplines and patent-speak would be called “obvious to one skilled in the art”). So, these are patents being issued (and granted a monopoly) without the inventors (read tech companies) holding up their end of the exchange.
I suppose a patent pledge may be something to talk about while we wait (probably for a really long time) for Congress to fix the actual problem (by revising the patent law such that the patent office can stop granting these types of patents), but I’m not sure it really kicks the can more than a couple of inches.
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