27May

Going Global in the Best Way

May 27, 2016 by

Todd Crosland Startup SiteFew startup companies are able to become the perfect blend of profitable, unique, and philanthropic. Usually, they are just two of the three. However, some startups have created a product, and are driven by a mission, that helps them be all three. One such company is Proof Eyewear. This startup is run by three brothers from rural Idaho, who grew up around sawmills. Now, these brothers own a wooden eyewear company that has taken its mission all over the world.

The company was initially begun with the desire to create eyeglasses using sustainable materials. Having come from a family of sawmill workers, they were already quite familiar with raw materials. They first experimented with a pair of wooden sunglasses. The concept only grew from there. Proof morphed from a company operated out of a garage to one operating all over the world, and they launched in 2010.

One of the most interesting things about this company is that it is managing to make money in a world filled with eyewear companies using plastic. It is doing this by branching out from wood to use other sustainable materials as well. For example, the company produces glasses made from recycled aluminum and cellulose acetate as well. These materials allow eyeglass frames to be shaped in a number of different ways, as opposed to the blocky frames that are made with wood.

While Proof excels at product development and fundraising, it also has delved deeply into entrepreneurial philanthropy. It has adopted a give-back policy in which a percentage of its profits is donated to eye-based nonprofits and camps all over the world. It also partners with other eye-based companies all over the world, ones that are also making revenue, to provide a philanthropic service. Furthermore, it funds trips to the countries in which its philanthropy is practiced for all employees. The founders of the company believes it is important for their employees to be deeply entrenched in the mission of the company. Therefore, anybody in the company can go see the work Proof is funding firsthand.

This has created a company culture of sustainability, closeness, and giving back to the community. No wonder Proof was able to start a new line via the popular crowdfunding platform, Kickstarter. What is more impressive is that this global organization was started on just $15,000 dollars. Each of the brothers donated $5,000 of their dollars to get Proof up and running.
Proof’s business model is one for which more startup companies should aim. Their perfect blend of product, profit, and philanthropy has helped them a great deal with fundraising, and will most likely keep them generating revenue into the foreseeable future.

20Apr

Doing One Thing Well

April 20, 2016 by

Todd Crosland Startup Site

Historically, file sharing startups have not done well. While attempting to disrupt the file sharing industry, many companies build out their platforms to include too many other tools. One such platform could have not only the ability to transfer files, but also a collaboration aspect, amongst other things. This is distracting, raises prices, and becomes the ultimate reason why such startups fail. One Dutch file-sharing startup, however, seems to have figured things out. The company WeTransfer has successfully disrupted the technological industry by keeping their product simple. Through WeTransfer, people are allowed to share large files, and nothing else.

WeTransfer quickly grew after being created, as shown by it reaching profitability in 2015. The company now has 80 million users and is preparing a move to the United States. When using WeTransfer, a person does not even have to sign up to send anything that is 2GB and smaller. To send files above 2GB, a user must sign up for a premium service that costs only $12/month. However, the company makes sure not to push any users toward signing up for their premium service. With this service and the extensive advertising on their website, they are able to make a large amount of money.

Currently, WeTransfer is experiencing a demand in the United States from creative people, such as designers. Therefore, the company is planning to open up an office in Los Angeles and take on some already lucrative startups in this country. Of course, it will come with challenges. Startups such as Hightail, formerly YouSendIt, have shifted their focus to appeal more to creative people. WeTransfer will have to shift its marketing to appeal to more Americans. They are, however, hoping the ease involved in their marketing at home will carry over.

It will be interesting to see how WeTransfer fits into the Los Angeles startup community, but their move to the United States should not overshadow the progress they have already made. This is a company that does not actively push a paid product onto its customers, and created its platform without the bells and whistles that other platforms may use to attempt to stay current. Rather, WeTransfer is focused on transferring files. They began their platform, found this one thing that they were really good at, and stuck with it.

A focus on what works above constant expansion should be a trend followed by more startup companies.

30Mar

Startup Quality and the Economy

March 30, 2016 by

Todd Crosland

It has long been thought that the number of entrepreneurial ventures in a society is what matters. This makes sense. The more small businesses that are formed in one place, the more jobs become available, and the more money is generated in said place. However, Jorge Guzman and Scott Stern, both of MIT, have found in a recent study that quantity may not be as important as quality.  Their paper takes an in-depth look at the startup field in America, and makes a few predictions about its future.

What Guzman and Stern do in this paper is describe ways to determine if startup companies are going to grow. Startups are known for bringing jobs to wherever they are based, but some types of companies have to hire more than others. If a small mom-and-pop shop opens in a city, for example, it will most likely only need a few employees. However, if an innovative company with the potential for a large amount of future growth is begun, it adds a lot more value to a community. These are the ones that help the economy the most.

The researchers refer to a company’s potential for growth as the ‘quality’ of the company, and link it to predictions about the future growth of a particular area. They mapped out the quality of different startup companies, and how quality linked to each company’s gross domestic product (GDP) growth. They found a significant correlation between quality and GDP growth in larger quality companies, but no significant correlation in smaller quality companies.

Of course, everyone who has ever taken a statistics class knows that correlation does not equate to causation. The GDP growth of specific companies could be directly related to the area in which the companies are growing, for example. However, this is an interesting concept for further study.

In order to predict the quality of a company, Guzman and Stern formed an algorithm. It tells them if a company with either go public or be bought for a large sum. This algorithm does not churn out highly specific results from company to company, but it gives a broad understanding of if a company will expand in the future or not.

While this paper leaves much to be desired from a research standpoint, it is also sends a powerful message to America’s entrepreneurial community as a whole. It disproves the idea that entrepreneurial ventures in this country are on the decline. It also challenges the idea that America’s economic growth is slow going. The amount of quality startups is increasing, which means that economic growth must be increasing as well.

Overall, this paper brings America’s entrepreneurial potential into the light. I am intrigued to see what the startup community will do with this information.

08Feb

Startup Takes on Quantum Computing

February 8, 2016 by

Todd Crosland

We can all agree that the advancement of technology, even from 10 years ago, has been profound. We now have phones that are, effectively, miniature computers, 3D printers, and self-driving cars, amongst many other life-changing inventions. Looking at the vast array of technology available today, it is difficult to predict what will come next. However, a new project that has taken over the technological sphere involves quantum computers, and a young startup company seems to be a front-runner in making the first functional one.

Rigetti Computing operates in a small Berkeley office space, working on producing a prototype quantum computer chip by the year 2017. Why by 2017? Apparently, the company, which is only a couple of years old, is attempting to release one of these chips before Google has a chance. They are working around the clock to make complex quantum computing, a concept that was once merely theoretical, a reality.

Quantum computers have been an unreachable technological goal up until now. Qubits, small devices involved in the quantum computing process, must be able to work together, but so far they are only known to interfere with the processing of each other. According to the company’s founder, Rigetti Computing has manufactured qubits that are stable and can work together on a much larger scale. However, Google’s CEO has said the same thing, which makes it unclear as to who will be able to release a prototype of a quantum computing chip before the other.

Rigetti Computing is aiming to create a chip that makes machines operate and learn more quickly, as well as able to run complex simulations in scientific fields. These computers will be complex problem-solvers, which could revolutionize industrial processes by making them more efficient in their energy usage than they are today.

Not only does the company want to create a prototype quantum computer chip, their ultimate goal is to send quantum computing into the cloud. They want to form a quantum-powered cloud computing service that is accessible to all with internet access. For a fee, any person or company would be able to run their problems on the quantum-computer chips, for quick and accurate results and solutions. They also want to be able to someday allow other companies to write code for their quantum hardware.

Of course, even just creating the prototype costs millions of dollars, which is money that Google has, but Rigetti Computing, as a small company, does not. However, the startup is not fazed. Rather, they believe that working in a smaller environment gives them an advantage over Google because their efforts are more focused.

The idea of quantum computing becoming a reality is exciting, but I believe what is more exciting is the prospect of a small startup company releasing such advanced technology. This could change the technological startup environment in a big way, and could spur intelligent young people to start their own companies in an effort to disrupt the technological sphere. I am hopeful, but there is still a long way to go to see if Rigetti Computing will be able to make quantum computing a reality, before much larger companies.

15Dec

Japan Rethinks Startups

December 15, 2015 by

The startup industry in Japan is struggling. The country is known for its large companies such as Toyota and Nintendo, but such large companies make it difficult for newly-formed companies to distinguish themselves. Younger people in Japan are more likely to take jobs at established firms, as they value having stable career paths and do not like the risk involved in starting their own companies. Therefore, startups do not thrive in Japan, as funding is difficult to come by. The government, however, is looking to turn this around.

The government is hoping to change many things related to their startup industry. They have already been attempting to encourage the launch of small businesses, but now they are paying more attention to companies that support the small businesses as well. For example, the government is focused on venture capital firms, as well as on creating a supportive startup environment and attempting to change the mindset of the less adventurous younger generation.

Obviously, this will take time and a lot of change.

The Japanese government is looking to start by instituting entrepreneurial classes in some schools, to encourage students to think outside of the box in terms of career paths. This will take a large amount of extra education, as much of the young Japanese population is hesitant to get into a precarious financial position.

The government is also working alongside Japan’s Venture Capital Association to push investors into making venture capital investments. Having large companies work with startups will, they hope, encourage professionals to take risks in starting new companies, as the professionals will now have some support. A large portion of this partnership is educating younger people on how venture capital works. They believe a better understanding of venture capital will lead more people to see venture capital investment as an option.

The government is also pouring a lot of money into the startup industry. They have put billions of dollars into helping the industry for the last two years, and the number appears to be rising every year. Events pairing startups with investors have become a trend as well. Basically, the government is working all possible angles to try and make their startup industry competitive.

The Japanese government wants its companies to be able to tap further into the global market. Their efforts to expand their startup culture will assist them in their goals overall, but they certainly have a long way to go.

For more information on Japan’s startup industry, I encourage you to go to this article in The Japan Times.

16Jul

JOBS Act Giving Crowdfunding a Boost

July 16, 2015 by

The JOBS Act (Jumpstart Our Business Startup Act), a law that encourages the funding of U.S. small businesses and startups by easing various securities regulations, had the Reg A+ exemption go live on June 19th of this year. The exemption will further facilitate access to capital for smaller companies and provide investors with more investment options.

Smaller companies now have the opportunity to offer and sell up to $50 million in securities in an annual period, subject to eligibility, disclosure and reporting requirements. This is great news for startups and small businesses, of which 86 of the fasting growing startups in the U.S. call Utah home. Regarded as the next “Silicon Valley”, the state leads the Forbes 2014 list of top states to do business, and ranks third on CNBC’s list of the best states to do business.

Because of this, crowdfunding platforms, such as Seed Equity Ventures, are now closing the gap for entrepreneurs working to raise capital in the early stages of their business. Giving them a direct lifeline to make it out alive past their seed stage. All the while, they are providing investors worldwide the option to get involved with compelling new opportunities they otherwise wouldn’t normally find.

The introduction of crowdfunding into the financial landscape of today has created an easy exchange of capital between businesses and their investors through its efficiency in getting key information out to the masses. And the numbers don’t lie.

Last year saw a 167 percent increase in money raised for companies and individuals via crowdfunding; that’s a $15.1 billion jump from 2013. Over $250 million of that came directly from venture capitalists and strategic investors.

Startups with even the greatest potential who choose to not go the crowdfunding route often find themselves struggling to stay afloat in their early stages, namely the seed stage. This is because most venture capitals and institutions are more inclined to make an investment in a smaller business once it’s already been established in the marketplace and seeking to expand.

07May

Crowdfunding – Democracy to the Business World

May 7, 2015 by

Todd Crosland GrowthAs the financial landscape continues to develop, and money can more easily travel from investors to businesses, certain products that show great promise see a greater chance of spotlight. Any start-up today would be remiss to overlook opportunities for crowdfunding in a technologically powered, democratically run world.

Crowdfunding is the easiest way for young entrepreneurs who are trying to introduce their idea to reach their funding goals through mass communication with and access to individual investors and investment firms. Because of crowdfunding, small ventures can reach mainstream appeal with relative ease.

The availability of funds helped Utah-based DemoChimp reach its financial goals by providing a connection to the outside. Businesses in Utah often struggle to reach the hotspots of angel investing (for example New York) and require crowdfunding efforts more than the average start-up. The newest in the digital community is DemoChimp. DemoChimp is primarily a business-to-business Software as a Service program that creates automated demonstrations of a product based on input criteria designated important by the customization of the user. It separates itself from more simple powerpoint slide introductions by designing mobile and visually interactive versions of a product for consensus-based presentation. It self-describes as software that “automates custom product demos to accelerate sales.” Its goal is to expedite, and nearly bypass, the process of manually arranging product demos to increase the adaptability of a typically, or formerly crystallized process. It is a highly organized form of data consolidation in a rapidly accelerating field. DemoChimp has already shown greater agility and dissemination of information with users feeling more comfortable about the priorities they can set for certain pieces or aspects of information. DemoChimp responds to the needs of the individual while representing the offerings of a business. It is cloud accessible and continues to facilitate the traveling of information across and outside of company lines.

DemoChimp & Crowdfunding

DemoChimp exemplified the essential benefit of crowdfunding by successfully raising almost $3 million from varied capital investors. It did this with the help of Albion Financial, Peak Ventures, and Seed Equity, a worldwide broker dealer and funding firm most affiliated with investments in start-up companies and digital campaigns. Seed Equity’s interest means a lot for DemoChimp, as the crowdfunding firm brandishes a personal mission of connecting the most promising business opportunities with global institutional and individual investors. This money raised from friends, related personnel, private investors, and large firms have established DemoChimp as a major player in the realm of business-to-business transactions.

The product continues to expand as it ventures into user-based automation, intelligently designing a demo around the specific demands of the viewer. Reports show that the artificial intelligence is embryonic but positively developing. This money raised from venture capital will be directed toward advancements in the software’s intelligence and marketing capacities. It will seek to find a balanced medium of granularity to assure maximum speed of operation with minimum overhead of communication. Funds not spent on the technical and operational components of the product will be directed toward new leads and customer acquisition. DemoChimp is already being operated by top corporations such as Microsoft and Hewlett-Packard, and its expansion into the non-digital realms is imminent.

06Feb

Google Launchpad for Indian Startups

February 6, 2015 by

Todd-Crosland-Startup-Google-LaunchpadGoogle recently tested its startup mentorship program in Israel and is now shifting its focus to Indian startups. Due to the developing interest in Indian startups, Google has decided to implement its startup program, Launchpad, in India. Monday was the start of the first of four weeks long programs. So far, Launchpad has a shortlist of 20 startups and 1,450 venture capitalists to fund the projects. Most of these companies are in the education and healthcare industries Representatives from Google and other companies will mentor and coach developing startups looking to grow.

This will be beneficial for Google for investment purposes in the future as well as emerging itself in the bolstering digital economy in India. Google Ventures has already invested in a real estate customer support tool, Commonfloor and Freshdesk.

Launchpad is set to mentor close to 100 companies in India. Launchpad started in Israel three years ago, and is currently in 20 different cities around the world. As the digital economy grows, so does Google because companies spend money on Google to obtain a larger customer base. Last year, Google increased online advertising spent by e-commerce companies by 47% year-on-year.

All companies that Google aids in their startup program will be consolidated under Launchpad. Google’s Launchpad is seen as a platform to train developers on how to turn their product into a startup company. While most of Launchpad’s activities will be focused in Bengaluru, Google’s startup mentorship program plans to situate itself in 50 different cities all over India.

Google is not the only company entering India’s digital economy. A couple of months ago, Microsoft launched their business accelerator program Microsoft Ventures in India. From 2013, venture capital funding in India is up 261% or $3.86 billion. Venture capital companies form all over the world are intrigued by India’s bolstering digital economy, as Japan’s Softbank plans to invest $10 billion in India’s startup industry.

05Sep

Impressive Startups in Emerging Markets

September 5, 2014 by

Todd Crosland startup global entrepreneurshipForbes recently came out with a group of new tech startups that have the edge in their own perspective emerging markets. Seedstars World, an affiliate venture capital firm to Seedstars, created this list of emerging markets and dominating startups associated with these markets. There were 19 startup companies mentioned in the article in varying emerging markets.

The first emerging market mentioned is the fast-growing finance infrastructure market. The two startups mentioned for this industry were Accra and Remit.ug. Accra is a Ghana based startup that is developing an online payment platform based on Bitcoins. Remit.ug, based out of Uganda, is building a money transfer platform that allows people from all over the globe to transfer money to people in Africa with a simple click of a button.

The mobile is the next emerging market written about in the article. Many new startups are developing mobile at the beginning of their development stages now that mobile has fully developed as an emerging market. The startups mentioned in this emerging market were Blocks, ChannelKit, Manads, OkHi, StudyPact, and Krowdpop. Blocks is a Tehran based startup that developed their own smartwatch. ChannelKit, from Moscow, is Pinterest for links. Manads is based out of Baku, Azerbaijan and developed advertising for after call screens. OkHi, based out of Nairobi, is developing physical addresses for every cell phone. StudyPact is a Tokyo-based startup that pays students for meeting their study goals, while charging them for not reaching their study goals. Krowdpop is a crowdfunding platform for pop music in South Korea.

Another emerging market in the discussion is mobile delivering services. These services make it easier for the consumer to obtain a good or service by just using their cell phone. Washbox24 is based out of Bangkok, and they use communal locker locations as drop-off points for customer’s laundry.

Fixing world-class issues is another emerging market that multiple startup companies are focusing on. These companies are replacing old technology with new technology to fix the bigger problems facing certain environments. The startups in this category are Khusela, KinTrans, myVLE, and Green Energy. Khusela is based out of Cape Town and is developing a low-budget fire alarm system for slum environemnts. KinTrans, based out of Dubai, is working on their platform that translates sign language in real time, into voice and text. MyVLE, in Casablanca, is an online learning platform that uses SasS. Green Energy, in Nigeria, is developing the process that transforms solid waste into electrical energy and petroleum.

E-commerce is the final emerging market discussed in the article. With fast-growing economies, e-commerce is necessary for fast paced production. The startups for this category include Prisync, Triip, Scandid, Freesheh, Poeyek, and TorQue Workspace. Prisync, based out of Istanbul, is a b-to-b company that offers pricing analytics and tracking. Based out of Ho Chi Mihn, Triip is is a crowdsourcing platform for tours. Scandid, based out of Bangalore, allows its users to compare barcodes using their app. Feesheh is based out of Amman and allows its users to shop online for musical instruments. Poeyek, based out of Darkar, is developing a business management platform for small businesses. TorQue Workspace is a software company based out of Rwanda creating a platform to help wholesalers manage their distribution.

All 19 of these companies are developing their technologies in these emerging markets to hopefully obtain the global edge over their competitors.

06Aug

Crowdfunding Tips for Startup Entrepreneurs

August 6, 2014 by

Todd Crosland CrowdfundingA recent article in crowdfund insider discussed different rules for crowdfunding success. Crowdfunding is a relatively new method for startups to build capital where the general public can invest in a company and gain equity. This method of funding developed so that entrepreneurs could reach a wider audience to raise money in the early stages of development. Crowdfund insider lays out six rules that a startup entrepreneur should be aware of if they decide to use the crowdfunding method for further support.

The first rule is to engage in the investor community. Entrepreneurs need to be present and easily reachable through social media. Research shows that entrepreneurs who are socially active in the investor community are able to attract more investors.

The next rule is every entrepreneur needs to have proof of concept. Having an idea will not obtain any entrepreneurs any investment. They have to have some sort of advancement in their product to prove that the product can be turned into a business. Whether it is sales numbers, awards, or partners signed on, there needs to be something more than just an idea to add to the credibility of the product.

Rule number three is to value your company at a price that isn’t too greedy or too humble. Investors pay attention to the entrepreneur’s valuation to evaluate the kind of entrepreneur that they are. The valuation acts as a self-imposed forecast to how their business will scale.

Next on the list is passion. An entrepreneur must be passionate about the product that they are putting forth. This will show that they are willing to work hard and put the effort into making their company successful. Passion also helps build a strong employee base as passion becomes contagious.

A unique selling proposition is one of the first aspects of a company that an investor looks at. The entrepreneur needs a clear vision as to how the company will succeed and deliver that message in a clear and succinct manner.

Last but not least, if an entrepreneur want’s to gain attention in the crowdfunding community, they need to have a video to tell their company and product story. The video acts as a resume and cover letter for a job; it is the first entry point to an investor. This is where the entrepreneur can clearly display their product, lay out their business plan, and pitch their vision. This is also the platform where entrepreneurs will show their personality and passion for the company as investors watch and make a preliminary judgment.

You can read these tips in more detail from the article itself posted here.