Friday, June 26, 2009

Oneforty is First Company in TechStars Boston to Get Seed Funding

TechStars' first-ever summer program for entrepreneurs in Boston started on May 26th. Fifteen days later, on June 10th, the first team got funding. That must be some kind of land speed record.

The funded company is Oneforty, founded by Boston Twitter maven Laura 'Pistachio' Fitton. Fitton, who has 35,000 followers on Twitter, is also the author of 'Twitter for Dummies,' just published. (Makes me wonder if someone has already written 'Twitter for Sophisticates.' Is it really that complex?) Fitton also runs Pistachio Consulting, based in Brighton, Ma.

Investors describe the new company's goal as creating an "app store for Twitter," bringing together in one place all the free and paid apps designed to enhance Twitter's value and utility. Fitton herself isn't wild about the phrase "app store for Twitter," instead describing the company as "a Twitter ecosystem play" that intends to "help people make sense of the Twitter ecosystem, and find, rate and share apps." Fitton noted that she'd started talking with potential investors before the TechStars program began.

Several angel investors have put less than $250,000 into the company, I'm told. They include Jeff Bennett of NameMedia (formerly of Lycos) and John Landry of Lead Dog Ventures (formerly of Lotus). Oneforty is still a bit virtual. Fitton is out in San Francisco developing the site with Pivotal Labs. She has two full-time employees starting next week at the TechStars office in Cambridge, and several others working on the project as contractors.

"I invested very much in [Laura], and her network and her enthusiasm, which is really quite contagious," Landry says. "She believes that Twitter is an infrastructure. She's on a mission, and she will figure out how to make this pay off."

Nice start for TechStars Boston, which wraps up in late August.

(In the video below, shot at SXSW in March, Fitton dodges some questions about Oneforty...starting at about the one-minute mark.)

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Wednesday, April 22, 2009

'Social Marketing' Guru Larry Weber Joins Twitter

It's a big day in the Twitter-verse... social marketing guru Larry Weber has posted his fifth Tweet today, having joined the service in mid-April. Larry runs the W2 Group, founded Weber PR, and is the author of "Marketing to the Social Web." Sixty-two followers so far.

This must mean Twitter is going to be important one day soon...

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Monday, March 30, 2009

Charles River Ventures' New Fund (and the Twitter Back-Story)

Charles River Ventures just closed a new $320 million fund, its fourteenth. The firm has had some big liquidity events over the past two years, generating about $600 million in returns, including the IPOs of local start-ups Virtusa and Netezza, and acquisitions of EqualLogic, Compete.com, and Acopia Networks.

Among CRV's more recent investments they list in the official press release are Nantero, Scribd, Vlingo, and Twitter.

Curious story about Twitter... CRV only has about $250K in that company, which has raised $55 million in total. CRV had invested in Twitter founder Evan Williams' earlier venture, Odeo, which didn't take off. Williams decided to repay the investors and go off and do Twitter. (The technology for it had been an offshoot of Odeo.) When Twitter started raising funds, Charles River put in that quarter-million early on, but hasn't participated in any rounds since, and doesn't have a board seat. (But Twitter is listed as one of CRV partner George Zachary's investments.)

Also interesting that TechCrunch lists CRV as a Menlo Park firm. While a lot of its activity has been out West, five of the eight investing partners for this new fund are based in Waltham, Mass. (all but Bill Tai, George Zachary and Saar Gur.)

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Sunday, March 8, 2009

The World is All A-Twitter

Today's Globe column is on Twitter, which has had a pretty amazing couple of weeks.

Founder Evan Williams is profiled in the NY Times' "The Boss" column today. Williams was also at the White House this past week week, for a summit of young business leaders, and was interviewed by Charlie Rose last month. Jon Stewart and Samantha Bee also mocked the company recently on 'The Daily Show.'

All without a business plan that they've chosen to announce yet. And all without a PR firm, according to Twitter board member Bijan Sabet, a partner at Spark Capital in Boston.

I sat down with Sabet on Friday for a quick chat. He'd just returned from a Twitter board meeting in San Francisco. Like his colleague Todd Dagres, he's a bit bemused by how much interest there is in what Twitter's business model will be. He gave me the impression that it'll start rolling out this year, though it's still undetermined exactly when.

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Thursday, February 26, 2009

Todd Dagres on Twitter's (Eventual) Business Model

I was talking yesterday with Spark Capital founder Todd Dagres... and I asked him if the rumors were true that he has begun Twittering. (Spark is the lone Boston investor in San Francisco-based Twitter, having recently participated in the company's $35 million fourth round.)

It's true, but his Twitter identity is tough to find. (It's here.)

A pithy sample post: "Lots of coats and ties in the room. Ties = bear market."

I asked Dagres why he'd started using Twitter (though others at his firm blog, he has never been a big blogger), and when we'd hear about Twitter's business model.

"I tried it because I wanted to see what all the fuss was about," Dagres said. "This thing is growing about as fast as I’ve ever seen anything grow before. Now, I’m addicted to the stupid thing. I follow Shaq and a few other people who’ve got interesting insights." That would be Spark colleagues Bijan Sabet and Santo Politi, and Jonathan Seelig from GlobeSpan Capital. (While at Battery Ventures, Dagres was an investor in Akamai Technologies, which Seelig helped start.)

Dagres says that Spark and Union Square Ventures are the two biggest shareholders in Twitter.

"We think it’s kind of funny to listen to people [in the press] talk about the lack of a business model," he said. "We know how we’re going to do it, and we’re very confident about how we’re going to do it, and it’s not necessarily in our interest to tell people how we’re going to do it. There is a biz model that has yet to be implemented. Of course, I can't guarantee it’s going to work."

Dagres continued, "All of a sudden there will be some changes that won’t undermine the experience or the virality -- but it will be pretty obvious how we’re going to moentize it."

Twitter hasn't generated any revenue thus far. Dagres said that changing that situation was definitely a project for 2009. But "we’re in no rush right now," he said.

Isn't it nice to fantasize, amidst the current economic gloom, that you work for a company that is under no pressure to start bringing in revenue any time soon?

"Calgon, take me away....."

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Wednesday, June 25, 2008

Will Twitter Be Spark Capital's First Home Run?

You can't have a conversation with a techie without Twitter entering into it somehow. Either:

1. They've just begun Twittering
2. They're skeptical Twitter will ever make money
3. They're complaining about Twitter's frequent outages
4. They believe Twitter is the future of communications

Yesterday, Spark Capital of Boston announced that it was one of two investors in Twitter's new $15 million funding round. (Twitter's parent, Obvious Corp., is based in San Francisco.) The other investor is a dude called Jeff Bezos. PaidContent says the new round values the start-up at a shade under $100 million. TechCrunch had it last month at closer to $80 million. Clearly, they'll use some of the fresh cash to make Twitter more reliable.

Spark partner Bijan Sabet, who'll join Twitter's board, talks about the investment here. Twitter co-founder Biz Stone tells the story from his perspective on the Twitter blog.

I spoke with Sabet this afternoon, and suggested that his avid use of Twitter might've helped him get in on the deal (several other Boston VC firms were angling to invest). Sabet said it'd be self-serving to explain why he thought Obvious chose Spark to invest in this latest round, but he did mention that three other partners at Spark use Twitter; I'm not aware of any other Boston VCs who do. It's hard to imagine a Boston VC lobbying to get into this kind of deal without having some first-hand experience with the product. Sabet says that for Spark, using Twitter "made us feel comfortable that we knew what was going on, beyond just reading the business plan." When I asked again if he thought his status as a Twitter user contributed to the company choosing Spark to be part of this round, Sabet dodged the question...

Of course, the Boston VCs who lost out here will say they didn't like the valuation, or they weren't comfortable putting money into a pre-revenue company... which is their prerogative. But it's worth reading this post from Jason Calacanis about Twitter's potential to be a billion-dollar business.

Getting into this round is a big deal for Spark... an investment that could put the firm on the map. I'll be shocked if Twitter isn't acquired before 2009 is out.

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