September 15, 2011 by
kateIt’s been a good year for PlayON! Sports. The Atlanta-based company has exploded in size and geographic footprint, with staff now producing and distributing coverage of more than 10,000 high school athletic events annually, including 2,000 high school championships. And thanks to the recent completion of a $7.2 million Series C investment round — led by Buckhead Investment Partners, Imlay Investments and Hamilton Ventures — the firm will continue to position itself as a leader in high school sports coverage.
Not bad for a company that’s only been in existence since 2005. PlayON! Sports was founded when David Rudolph – then an executive at Turner Broadcasting System – saw an opportunity to start airing sporting events that were lacking television exposure. The concept was developed inside Turner until 2008, when Rudolph teamed up with several Atlanta investment groups to purchase the company.
Although PlayON! started with an emphasis on college sports, company leaders eventually turned their attention to the untapped high school market. The firm is now the nation’s largest rights holder, producer, distributor and aggregator of high school content distributed across television, Internet and streaming enabled devices.
“We had noticed that the viewing audience for high school football games was really impressive, so it was an area that we wanted to explore,” said Rudolph, who serves as President and CEO. “But the real turning point for us was when we were hired by the Georgia High School Association (GHSA) to produce the state wrestling championship. We had over 100,000 viewers, which absolutely blew us away. It was far higher than we expected.”
A recent graduate of ATDC, PlayON! Sports has grown 150 to 200 percent each year and now encompasses more than 21 states and 30 full-time employees. By combining postseason content from various state athletic associations with the regular season events of member schools, PlayON! provides marketers with a unique multi-media platform solution to reach teens and families, said Rudolph.
So what’s next for the company? For starters, nationwide coverage would be nice. They’re also poised to enter the mobile technology market.
“We have a goal and a vision,” said Rudolph. “We want every high school game in the country to be broadcast and distributed in some shape or fashion. In addition, we want to distribute our content on as many platforms as possible, and mobile is the next opportunity for that.”
September 9, 2011 by
kateTo help educate young startups on fundraising strategies, the Atlanta Technology Angels and the Advanced Technology Development Center have joined forces to launch a new ATA/ATDC Entrepreneur Finance Series. Developed by Michel Horten, director of “ATA University” (ATA’s education arm), the comprehensive course encompasses four sessions and will be hosted by ATDC as part of its new Lunch and Learn Educational Series, which takes a more strategic approach to brown bags by focusing on coaching.
As a member of the Atlanta Technology Angels, Horten knows a thing or two about the proper way to court an investor. Over the years, he has been on the receiving end of numerous fundraising pitches from young startups. In many of those cases, a lack of entrepreneurial experience and knowledge of the current early-stage capital market sank even the most attractive investment opportunities.
“Companies generally require one or several rounds of financings in order to succeed. Unfortunately, a lot of entrepreneurs fail in this endeavor, not because their company is not fundable, but because they’re approaching it in the wrong way,” said Horten, a local attorney. “For example, if I’m interested in an opportunity, the first thing I want to know is what I’ll get for my money. Half of the entrepreneurs can’t answer that question.”
Each of the four sessions is designed to be highly interactive, with tips on all of the finance, legal and tax issues that an entrepreneur will need to know to launch a successful capital raise. Topics include the angel financing process, pre-financing requirements, today’s deal terms and securities law compliance.
“The whole purpose of this program is to give young entrepreneurs the A to Z summary of how they should go about raising money,” said Horten. “You don’t really have a second opportunity to pitch the same angel, so this course could help improve a startup’s chances of walking away from a meeting with a check in hand.”
Registration is now open for the free series, which begins Sept. 22. Each session will be held from 11:45 a.m. to 1 p.m. in the Hodges Room on the third floor of ATDC’s headquarters. Based on member interest and turnout, the program could be repeated in the future.
Participants who complete the first two sessions will also receive an invitation to attend a Nov. 10 seminar the Angel Capital Education Foundation is presenting to ATA members and other local angels. The half-day presentation will provide a detailed look at the various methodologies used to value early-stage companies and will give attending entrepreneurs the opportunity to network with local angel investors.
September 2, 2011 by
kateAt Evoca, everyone’s voice counts. Literally.
Launched in 2006, Evoca is a leading mobile and web voice recording service that makes it easy for businesses, organizations and professionals to create and share interviews, language lessons, testimonials, opinions and expertise using any phone, Skype or online audio recorder. In the past five years, the company has seen business explode, with thousands of subscribers across the globe logging millions of recordings through the service.
“The goal of Evoca is to enable anyone to create fresh, valuable content and share it online,” said Murem Sharpe, CEO of the Savannah-based startup. “You can turn any phone – landline or mobile – into a digital recording studio. The same applies to Skype and your computer microphone. We have become an ideal tool for professionals who understand that real voices from real people make stories more compelling and genuine.”
Evoca focuses on the business-to-business and business-to-professional markets, garnering significant interest from journalists, authors, marketers, researchers, consultants and historians. Reporters, for example, use Evoca’s technology to record phone and Skype-based interviews, with the entire conversation instantly digitized to MP3 format and stored to their accounts using a secure cloud platform. Audio recordings can be kept private or instantly posted to Twitter, Facebook, websites, blogs and other social media channels via player widgets. Playback from any computer, smartphone or tablet is possible because Evoca’s innovative “smartplayer” knows whether the listener has an iPhone, iPad, Android or BlackBerry device.
Evoca’s subscription-based service has also become popular with educators and students who want to record their voices on-the-fly and manage and share the audio files in a virtual language lab. Student-specific albums and course-based groups make organization, listening and feedback easy.
The startup also licenses Evoca Enterprise, a cloud-based Software-as-a-Service [SaaS], to enable other companies and web services to incorporate Evoca’s voice recording, management and publishing features within their own brand. This flexible solution is delivered using an API [application programming interface].
A member of ATDC for several years, Sharpe said the accelerator has played a role in Evoca’s success, providing business incubation services, networking opportunities and professional resources in both Savannah and Atlanta. The company plans to continue utilizing ATDC resources as they move into their next phase of growth. As long as people have something to say, Sharpe expects to see continued interest in Evoca’s product.
“It’s really a great audio creation tool that operates entirely in the cloud, without the need for any software installation or IT department resources,” she said.
As co-founder of Ignition Alley, a popular in-town co-working space, Tim Dorr has seen first-hand the benefits of a collaborative working environment. So when ATDC staff began brainstorming ways to provide more office space for member
startups, Dorr suggested providing young entrepreneurs with the opportunity to join an all-day collaborative work session.
Now a reality, the newly created Cowork@ATDC initiative will kick off on Sept. 23. Participants will be able to network, compare stories and collaborate on solutions with other fledgling entrepreneurs, as well as receive advice and feedback from ATDC mentors. The idea, Dorr said, is to provide a synergistic working environment where the challenges and opportunities of entrepreneurship can be shared.
“The exchange of knowledge and general networking are really the main benefits of coworking,” said Dorr, an Entrepreneur in Residence for ATDC. “If I have a problem with something, I might spend hours researching possible answers and trying each one before finding the solution. But with coworking, I might wind up interacting with someone who has already experienced the same or similar struggles and who might have expertise and insight to offer.”
The inaugural session will be held in the Community Room from 9 a.m. to 5 p.m. on Sept. 23. Dorr hopes Cowork@ATDC will eventually become a weekly recurrence. But until staff can determine the demand, it will likely take place once a month or every two or three weeks.
To register for the event, click here.
When ATDC staff conducted a member survey last fall, one of the most common findings was a call for more networking opportunities. And so the monthly Entrepreneurs Night was born, providing young startups with the chance to hobnob with other industry players and hear success stories from a distinguished ATDC entrepreneur.
“We heard the members loud and clear and created Entrepreneurs Night to meet that need,” said Ivy Hughley, ATDC Membership Manager. “It’s a fun and informative event that allows Atlanta startup entrepreneurs to mingle and learn.”
The next event, to be held Aug. 18 from 6 to 7:30 pm, will feature insight from Andy Monin, CEO of Vendormate. A market leader in vendor management and credentialing, Vendormate was ranked 25th on the Inc. 500 list of fastest growing U.S. companies last year, making it the highest-ranking software company on the list. In another major coup, earlier this year the ATDC graduate company landed a significant investment from Primus Capital, a Cleveland-based private equity firm, paving the way for additional growth.
Monin will share his success journey with attendees and discuss the value of ATDC membership, which provided Vendormate with networking opportunities, access to reasonably priced office space, peer learning events and a sense of community.
Launched in 2005, Vendormate provides a unique credentialing solution that enables health care, banking and other clients to better manage supplier networks and reduce the risk of partnering with fraudulent, illegitimate or fiscally irresponsible vendors. Vendormate’s patented software system screens both new and existing vendors to make sure they meet client requirements and comply with government mandates and regulations, such as HIPPA and Medicare’s and Medicaid’s fraud list.
Entrepreneur’s Night takes place the third Thursday of every month in ATDC Community Room 235. The networking event is free for ATDC members.
Mitchell Kopelman has a little advice for most young entrepreneurs and startups. Take advantage of the state’s Angel Investor Tax Credit, and do it as quickly as possible.
“The biggest issue we’ve seen at ATDC is someone might wait to apply until after they have an interested investor,” said Kopelman, a partner with Habif, Arogeti & Wynne, LLP, the largest independent CPA firm in Georgia. “We say, send in the application now. This way, when an investor is interested, your company will already be approved by the state. It’s free and it’s good for one year.”
Signed into law by former Gov. Sonny Perdue in June of 2010, the legislation took effect at the beginning of 2011 and helps to promote the development of startup companies in the state by encouraging direct investment from individuals in high?tech businesses.
The credit provides up to $50,000 annually – or 35 percent of the amount invested in the startup – for individual investors of early-stage, startup companies in Georgia. It’s available for investments made in 2011, 2012 and 2013, however, the credit cannot be used until two years after the investment is made. Other qualifications require that the investments come in the form of cash in exchange for stock by accredited investors that manage $5 million or less in capital. In addition, applicants must be Georgia-based companies, in business for less than three years with fewer than twenty employees. They can have no more than $500,000 in revenue and less than $1 million raised by debt or equity.
Access to early-stage growth in young companies is often difficult to obtain, so the Angel Investor Tax Credit could potentially help boost the Georgia economy by strengthening its entrepreneur-driven community and creating new, high-paying jobs. While there are some industry limitations, most technology companies are eligible so Kopelman encourages ATDC members to read up and apply for the program.
For a business to qualify as an eligible company under the angel tax credit, the startup must register first with the tax commissioner using Form IT-QBR. Although some startups experienced form approval delays in the initial months of the program, Kopelman said the process is moving more quickly now.
“The form itself is very easy,” said Kopelman, who chairs his firm’s Tax Group and Technology Practice. “The issue is that because it was new to the state, approvals were moving very slowly. In at least half a dozen cases, we’ve been able to help accelerate the approval process for these startups by contacting the state directly. The key is to send the form in now, and two months before it expires each year, assuming the company still qualifies.”
For more information on the Angel Investor Tax Credit program or links to the program requirements and Form IT-QBR, read this article co-authored by Kopelman.
The 2010 ATDC Startup Showcase is a premier event celebrating 30 years of the ATDC’s dedication to growing technology companies in Georgia. Further, ATDC member companies who have attained rigorous growth milestones are selected each year to graduate from the startup incubator. The Class of 2010 is:
CommerceV3
Endgame Systems
Izenda
PureWire
Join us Monday, May 24th to celebrate the successes of our graduating companies and 30 years of ATDC service to the Georgia entrepreneurial community at the 2010 Startup Showcase. More than 1000 technology leaders, university leaders, investors, and aspiring entrepreneurs are expected to be present at the event to see ATDC emerging technology company members and graduate members exhibit their innovative technologies.
Please register today.
There are many reasons why one would choose to be an entrepreneur. Here are some common ones. Please add to the list in the comments.
- I hate working for big companies, want to get out of my cubicle and be my own boss
- I want to be rich and have my own airplane
- I have spent the last 5 years in grad school creating this technology and want to build a company around it
- All my friends are doing it
- I read Techcrunch and it sure looks easy
- I cannot find a job, so I wrote a business plan instead
All of these are perfectly valid reasons to become an entrepreneur. Whatever motivates you to work hard and push the envelope. But I want to suggest what it really takes. If you want to launch a successful startup, here are the two most important skills required:
- Can sell
- Can develop a product
The critical fact – if you cannot do one of those things, you are not likely to be a successful entrepreneur. Let’s say you want to build a software startup. If you cannot write brilliant code and are not extraordinarily good at selling software, but are just the idea guy, stop. You cannot outsource these things. Spend a year or two and become a first class Ruby (or PHP) developer. Or go sell Yellow Pages ads for a year and learn how to truly sell.
The ideal scenario is to have a partner that has the complementary skill. If you’re a product guy, go find a kick-ass salesperson to be your cofounder. Or vice-versa. It’s always best if the product guy cannot sell and the salesperson cannot write software. You want your salesperson to wake up every morning thinking about who they’re going to sell to. It is always easier to write code than make a sales call. This temptation by itself can destroy a startup.
It is my contention that if you cannot either create a product or sell it, then you don’t have the right stuff to be an entrepreneur. You had better have a very large checkbook.
This is a reprint of a post from the VentureLab blog – December 2008.
When building a startup idea, it is critical to think through your business model. How do you trade your widget or service for cash? There are some good ones, and there are some bad ones.
Having spent some time with Startup Gauntlet, Pitch Camp and Startup Riot, I’ve had the chance to see some really terrific business ideas. And some remarkably bad ones too.
Here are a few models to avoid:
Spaghetti: “We have five ways of making money.” If one model is good, isn’t five better? This is like a football team with three quarterbacks, they really have none. Don’t throw spaghetti against the wall to see if one of them will stick. Pick the most compelling model and focus on that.
Field of Dreams: “If we build it, surely they will come.” One of the worst things to ever happen to entrepreneurship was the horribly, horribly misleading quote – “If you build a better mousetrap, the world will beat a path to your door.” Uh, no, they won’t.
Boil the Ocean: It’s good to think big, but don’t think too big. You need to prove you can be successful with a few customers and then scale.
China: “If we can only get 1% of the Chinese market for our widget, we will be a billion dollar company.” Sure you will. Where do I sign up? Pick a small market and a way to dominate it. If you can’t find a way to do that, redefine your market. Whatever market you go after, you must be a leader.
Venn Diagram: “We will build A. People want to buy B. We think they might overlap.” Maybe. Probably not.
Bill Clinton: The man from Hope. Hope is not a strategy.
Do you have any other favorites? Send them to me and I will add them to the list.
Coming soon to a blog near you – some really good business models.
Who will be there?
Stephen Fleming, the new Vice Provost of Georgia Tech’s Enterprise Innovation Institute and many of ATDC’s staff will be on hand to discuss the new ATDC.
What’s the agenda?
While there will be a short introduction, the majority of this event will be us listening to you! Our goal is to hear your suggestions for how ATDC can best help Atlanta startup entrepreneurs see the most success.
Why should you come?
If you are running a technology startup in Georgia, you should definitely plan to attend this event because this is your opportunity to provide your ideas, thoughts, and feedback as to how we can best help you build a successful company.
How do you register and find more details?
In anticipation of the demand and to ensure as many can attend as possible this event will be run twice on August 20th. Feel free to register for whichever session best meets your schedule as Stephen Fleming and most of the ATDC staff will be on hand for each event.
Click here for Open Forum 1 (3:00 to 5:00 p.m.)
Click here for Open Forum 2 (7:00 to 9:00 p.m.)
Special thanks to Atlanta Web Entrepreneurs for allowing us to take over their next meetup! We’re holding Open Forum 2 during AWE’s regularly scheduled monthly meeting. Thanks!