Tag Archives: investors

Live Universe acquires yet another over funded start-up on the cheap

It appears that the buyer’s profile of Live Universe is to buy web 2.0 companies in trouble on the cheap, yet preferably over funded, with some traffic and good technology, if possible. After they have bought video site Revver (also relatively cheap, price perhaps was in the $1M range) in February 2008, they have also fetched up Pageflakes just the last month for what is believed to be yet another 1M dollar deal. Yesterday we have read over Web that Live Universe has this time bought yet another start-up falling into the same profile (over funded, failed and looking for a fire sale) MeeVee. They have put themselves up for sale via press release the last month.

MeeVee is all about personalized TV guides and the company was said is having over 1.1 million organic unique users in March up from 480,000 in August 2007. The Company uses its editorial voice and proprietary technology to scour a curated list of thousands of sources to connect consumers with customized video, blog and TV programming content that matches their interests. The Company has significant issued IP, community, media relationships, a TV listings personalization engine, streaming TV directory and a compelling product roadmap. The Company has 7 full time employees, all in product and engineering.

Let’s look into the Live Universe’s shopping pattern.

Total funding for Pageflakes was $4.1M – sold out for what is known to be in the $1M range. Total funding for Revver is known to be in the $12.7M range coming from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III – sold also out for anything between $1M and $2M. MeeVee itself has also taken a whopping amount of money from the venture capitalists — $25M over the past years, we bet on it has also been sold out for anything in the $1M / $2M range. From the 3 companies above, MeeVee seems to have traffic, at least.

It is an interesting strategy to buy companies and spur growth, but we guess it is better you buy growing start-ups rather than falling stars that have spent enormous amount of capital yet did not work things out. It is yet to be seen if this strategy is going to be successful on the long term run for Live Universe. Let’s put it that way – a company that has raised $25M and did not manage to work things out is less likely to make it with less money. On the other hand buying distressed assets is something proven by the time. From Live Universe’s perspective it seems clever move that they have bought web assets that needed more than $42M to develop for $3M or something. As web 2.0 moves towards its peak and then its end (the same as what happened with the dot com boom) there would be lots of over funded and over hyped, but failed start-ups for sale on the table for Live Universe to choose from and buy cheaply.

So to conclude if your company has taken enormous amount of money, but has definitely failed to work things out and is looking for some liquidation of its assets Live Universe might be your choice to consider.

The buying company LiveUniverse is probably most popular with the fact it has been founded by one of the founders of MySpace – Brad Greenspan. With over 55M monthly unique visitors, LiveUniverse is one of the world’s largest online entertainment networks. They operate several successful and popular websites across three core verticals: Video, Social Networking & Music. LiveVideo is one of their sites, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

Additionally in 2006, Greenspan also initiated a lawsuit and activism site against his former company, MySpace, calling attention to the fact they were censoring widget makers and software service providers using MySpace as a development platform.

More

http://www.liveuniverse.com/
http://www.crunchbase.com/company/liveuniverse
http://meevee.com/
http://biz.yahoo.com/bw/080407/20080407006076.html
http://www.techcrunch.com/2008/04/07/25-million-later-meevee-in-trouble/
http://www.crunchbase.com/company/meevee
http://www.techcrunch.com/2007/07/16/meevee-cuts-20-of-staff/
http://www.techcrunch.com/2007/09/20/meevee-takes-35-million-series-d/
http://www.econtentmag.com/Articles/ArticleReader.aspx?ArticleID=17395
http://findarticles.com/p/articles/mi_m0EIN/is_2006_Feb_27/ai_n16085490
http://www.techmeme.com/080407/p95#a080407p95
http://www.deftapartners.com/
http://www.labrador.com/
http://www.waldenvc.com/
http://www.jpmorgan.com/pages/jpmorgan/investbk/global/na/baef
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/15/pageflakes-is-acquired-by-brad-greenspan%e2%80%99s-live-universe/
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/08/meevee-put-itself-up-for-sale/
 

MeeVee put itself up for sale

An interesting approach is taken at MeeVee. They are trying to sell themselves through a press release. This morning we have seen a short press announcement put up on Yahoo through BusinessWire giving relatively short details about the company and soliciting interested parties to contact a person at his email as indicated in the pr.

MeeVee is all about personalized TV guides and the company was said is having over 1.1 million organic unique users in March up from 480,000 in August 2007. The Company uses its editorial voice and proprietary technology to scour a curated list of thousands of sources to connect consumers with customized video, blog and TV programming content that matches their interests. The Company has significant issued IP, community, media relationships, a TV listings personalization engine, streaming TV directory and a compelling product roadmap. The Company has 7 full time employees, all in product and engineering.

So, what’s so interesting in here one may ask. First off in the press release the company claims is engaged in multiple discussions with potential acquirers that provide the greatest long term upside and synergy, but are giving a public announcement where they solicit more such interested parties to discuss with them. It is either nobody is interested in the company to date and they are trying to attract such interest or the interested parties are setting their offers too low and MeeVee is trying to establish sort of bidding war in order to drive valuations up.  You don’t normally ask for interested parties to contact a company re a sale unless the current talks (if any) aren’t going well.

So far so good, but when you go into some more details about the company you realize there is something wrong with the whole situation around MeeVee.

The company is known to have taken $25M in total funding to date and having just 1.1M ungues per month off $25M in venture capital appears no longer that attractive as in it was in first reading. That sort of information is skipped in their original press release. Their last round of funding (Series D) was taken just late last year and was in the $3.5M range, which means they have spent most, if not all, of the money they have previously taken. As to what is only left in the company from their last round remains unclear. To top it off the company has gone through some significant layoffs.

Some of MeeVee’s unhappy investors include DEFTA Partners, Edmond de Rothschild Venture Capital, WaldenVC, Labrador Ventures, The Bay Area Equity Fund (Effective January 24, 2008 the private equity investment professionals of the Bay Area Equity Fund have left JPMorgan to form DBL Investors LLC) and FCPR Israel Discovery Fund.

Over the past years we have been witnessing not only one deal where a web site with over 1M unique visitor per month has commanded acquisition prices in the $20M range, but in the MeeVee’s case we do not think that is the case. Why? Well, MeeVeee has spent $25M so far, has laid off its employees and is on its way down. If you have spent $25M the expectations for your company are for much larger reach and audience than just 1.1M visitors per month, so in the case their 1M users per month can be considered quite a failure in the context of the resources being allocated to the company.  The picture is already quite different if you take for an example a web site that has reached the 1M uniques per month mark off say less than $1M of money invested in so far, did not lay off its employees and is not on its way down as a trend on the traffic graphs of sites like Quantcast and Compete.

Whatever the case is it is hard for us to believe that 1.1M uniques per month can command a price anything above the amount of money they have taken from an army of venture capitalists. So what is then the case here? It is perhaps that the VCs are looking for a way to effectively liquidate the company and recoup whatever is possible leaving the founders with literally empty hands.

More about MeeVee

Discovering what’s online and on TV.

MeeVee is the leader in helping people navigate the growing world of online and television entertainment. Each month, over a million tech savvy, affluent and educated online users visit MeeVee to help make their entertainment choices.  These people are passionate about entertainment, and visit MeeVee again and again to track their favorites and to discover and share new entertainment choices.

Why? Today’s consumers are overwhelmed by the millions of online videos and hundreds of digital TV channels now available. MeeVee is the first destination to bring together traditional TV listings and online video from hundreds of sources in one place. Using our patented technology, consumers can personalize MeeVee to search for new TV and online video based on their interests. At MeeVee, our mission is to help them discover more of what they want to see.

Located in Burlingame, CA, MeeVee initially launched in 2005 as a television listings provider.  Using innovative new technologies, MeeVee changed the way consumers find TV programming by enabling them to personalize their guides to surface new programming choices based on people, shows, hobbies and keywords of interest. Now MeeVee is applying that same technology to the growing world of online video, helping individuals to cut through the clutter and discover interesting videos.  Today, MeeVee employs more than thirty enthusiasts who are passionate about our mission of helping consumers discover and enjoy the media they want to see. 

Supported by leading advertisers, including CBS, Netflix, Radio Shack and more, MeeVee also syndicates and licenses our television search and personalization services to leading newspapers, major online content providers and cable operators around the country. Our partners include some of the largest integrated media companies, including Gannett, Hearst and Media News Group. Our list of syndication partners is growing daily and includes USA Today, The Chicago Sun Times, San Francisco Chronicle and the Seattle Times.  Our investors, who have supported some of Silicon Valley’s most successful ventures, include JP Morgan, Labrador Ventures, Walden Venture Capital, Defta Partners, and Rothschild Ventures.

TechCrunch has called MeeVee, “an easy-to-use application and…a nice model for building a personalized web experience.”  MeeVee is a 2007 “Always On” Media 100 winner.

Well, in some of the latest posts about MeeVee on Techcrunch are surely not as positive as the sentence above and MeeVee is as of today put in the dead pool watch list.
More

http://meevee.com/
http://biz.yahoo.com/bw/080407/20080407006076.html 
http://www.techcrunch.com/2008/04/07/25-million-later-meevee-in-trouble/
http://www.crunchbase.com/company/meevee
http://www.techcrunch.com/2007/07/16/meevee-cuts-20-of-staff/
http://www.techcrunch.com/2007/09/20/meevee-takes-35-million-series-d/
http://www.econtentmag.com/Articles/ArticleReader.aspx?ArticleID=17395
http://findarticles.com/p/articles/mi_m0EIN/is_2006_Feb_27/ai_n16085490
http://www.techmeme.com/080407/p95#a080407p95
http://www.deftapartners.com/
http://www.labrador.com/
http://www.waldenvc.com/
http://www.jpmorgan.com/pages/jpmorgan/investbk/global/na/baef

fix8 takes more money to fiddle around animated avatars

It was just a few months ago when fix8 took their first round of funding from Vickers Venture Group. The amount taken was then $3M. Vickers Venture Group is a Singapore-based private equity firm. This time the company says it has landed SK Telecom, which is a leading South Korean telecom, taking some $3M more to make it $5M in total funding. Fix8’s first part of the funding took place last year in October. 

SK Telecom has also awarded Fix8 a contract “to lead the development of SKT’s 3D avatar animation technology to enhance mobile and online communications.”

Fix8 is a web cam avatar community that lets you create animated avatars with your web cam by reading your expressions and gestures. When we took a look into their web site we have discovered tons of tools that you can play around with, including fix8’s wide selection of pre-made avatars and other accessories like voice manipulation, graphics and editing tools. Those clips can easily be embedded in your website or social networking profile, or use it for your instant messaging client like AOL, MSN, Skype or Yahoo Messenger.

Fix8 has recently teamed up with a couple of other companies like Pringo and Stickam. fix8 has also expanded its signature technology through a key partnership with Shanghai Media Group (SMG) offering Auditions(TV) to create a new world of Interactive TV where audiences can submit fix8 content for insertion into LIVE or taped programming. fix8 will further bridge the gap between communication devices with the launch of fix8 MOBILE.

Fix8 has also teamed up with Camfess, the premier site for online confessions. The ability to choose your own level of “incremental anonymity” and “confess” without anyone knowing who you are makes Camfess and Fix8 the “perfect fit.”

While we kept on researching around for more information we came across the following user review on the service. Gave it a try for fun. The idea is great but they have a way to go.

  1. It does not work if you have glasses on, and some people’s eyes do not work with them off.
  2. I did not play around long enough to have my body in the picture also, but from the image above it seems the avatar sits in front of the user. It needs to be placed around them so that when users turn their heads sideways, you can not see their head, but the side of the avatar’s head.
  3. It could not see my mouth moving unless I tilted my head backwards so as to get more light on my face (I have a fluorescent light above me so my room aint dark).

Fix8 is based in Sherman Oaks, CA and is a division of Mobinex, Inc.

More about fix8

Fix8 is a unique interactive communication application that allows people to customize their on-screen virtual appearance in real-time using avatar technology and creative accessories. Fix8 integrates human expression analysis and rendering capabilities, avatar/facial sculpting and animation technology, voice manipulation, and one click 3D face maker design capabilities in one package. Fix8 can create live streaming enhanced video to integrate into IM or other broadcast (such as TV) experiences, or record still images and fully-rendered videos.

While certain elements of the Fix8 product line can be found in the competitive landscape, the core technology to provide real-time animation in a consumer oriented application is unduplicated. Further, the specific feature set(s) offered in the Fix8 product line is unique and disruptive.

Fix8 differentiates itself from the competitive set by offering a unique easy to use application that incorporates avatar technology, 2D/3D facial accessories and flash animated accessories, voice masking and altering, and the ability to for a user to create their own individual set of avatars through use of photorealistic images all married with Fix8’s own IP that analyzes and renders human expressions so that the rich animated creations match the movements of the user in real-time for use in video and streaming.

Fix8 has coined the term user-generated reality to define the broad spectrum of creative self-expressive user-generated animation in real-time. Fix8 enhances the entertainment and enriches the communication experience of its clients’ customers by breathing new life into digital channels across multiple mediums.

The team

Linh Duy Tang, but you can call him “TANG”
President / CEO
 
Mr. Linh Tang is a senior executive (but he is really quite young at heart) with a demonstrated record of accomplishment in worldwide business operations. Tang’s vast experience in technology, operations and management make him the ideal fit to lead Fix8 on its mission to revolutionize virtual communication and expression. Tang is responsible for more than just Fix8’s vision and strategy; he is responsible for driving the “Innovation Bus” all the way to the user. A veteran of several startups with 15+ years in IT and consumer goods industries, Tang is – quite simply – THE MAN.
 
Chuning Ho, our very own voice of reason
Vice President of Operations
 
Ms. Chuning Ho brings over 17 years experience in application development, project deployment, executive management and business operations to the Fix8 team. As a founding member of the management team from initial start-up to present, Chuning knows where all the bodies are buried. Her main responsibilities include (but are not limited to) resources management, process standardization and communication strategy establishment and implementation. Chuning also manages to keep the entire team in check almost effortlessly. She is Fix8’s own secret weapon.
 
Scott Freeman, he sees dead people
Vice President of Finance
 
Mr. Scott Freeman brings extensive financial management experience to the Fix8 team. Scott did hard time with Deloitte & Touche, working in their entrepreneurial division, before he made his move to California Suncare, Inc. where he was instrumental in growing the company from $3M in revenue to $45M and assisted in its sale to a private equity firm for approximately $88M. Long story short, Scott knows how to make money and can see a deal well over a mile away. With a wife that is a successful interior designer, a daughter who is an artistic savant and a son who is a terror on the soccer field, Scott doesn’t have to work but he believes in Fix8 and, honestly, someone needs to keep Jake and Dinesh in check.
 
Dinesh Bhatia, proving that there are nice guys in sales
Vice President of Sales
 
Mr. Dinesh Bhatia brings direct experience in the wireless, television, Internet and software industries to the Fix8 team. Dinesh is a pretty smart guy; he graduated from Washington University with double degrees in Electrical Engineering and Computer Science and a Master’s Degree in Biomedical Engineering from Imperial College, London. Dinesh loves the disruptive creation and generation process of the software development community and is responsible for building strong partnerships to enhance the Fix8 user experience through added competitions and connectivity. In his spare time, he loves fiddling around with computers, gadgets, his saxophone and keyboards, photography, astronomy and spending time with his family. Dinesh also loves long walks on the beach – but this is not a personals ad – so let’s stop here.
 
Raphael Ko, it is rumored that he has brothers named Donatello, Leonardo and Michelangelo
Vice President of Engineering
 
Mr. Raphael Ko brings extensive experience in software development and information technologies management to the Fix8 team. Directly responsible for Fix8’s engineering activities, Raphael has drawn upon his 10+ years in software development as well as managing key projects in wireless applications, ERP, and IT services. Raphael’s love of photography and digital imagery fit right in with the Fix8 mission. Not much is known about Raphael’s past, in fact we can’t exactly put our finger on his start date either. One day he just suddenly appeared, fully formed and working (in all honesty) harder than the rest of us, so we let him stay. We still don’t know how he has the time to do what he does and still read all those issues of “Conan the Future Boy;” but some questions are best left unanswered.
 
Hao Zhou, Kevin Bacon stole the idea of six degrees from this guy
Vice President for Sales – China
 
Hao Zhou is a senior executive with an outstanding background in digital television and the new media industry. Shortly after learning how to crawl, Hao began his career as a system engineer, and quickly his work history grew to include sales and promotions of CATV, digital TV, broadband business, indoor and lift media and wireless value-add business. You know that guy who can do anything and has somehow managed to have successfully had every job available in the time it took you to pour your morning coffee? Yeah, well, Hao’s that guy. Hao’s ambition is what has brought him to the Fix8 team with one simple mission: Make Fix8 the next star shining over greater China. If anyone can do it, it’s certainly Hao. He’s our very own Hercules.

About Vickers Venture Partners.

The Vickers Financial Group is the venture capital arm of the Vickers Capital Group, an Asian investment house investing in alternative assets. Vickers Venture Partners is a leading venture capital firm focusing on early stage, high growth companies focused on Asian markets. The firm’s competency stems from the fact that its decision-makers have been part of and hence well-acquainted with the pulse of diverse domains.
 
The market

From what we were able to dig up it seems the space is extremely crowded. The competition include weblin.com, Meez.com, SecondLife, mypictr, gizmoz.com, miieditor, simpsonsmovie.com, gickr.com, Gravatar.com, imvu.com, Zwinky, digibody.com, Faketown, doppelme, SitePal, gaiaonline, imbee, myrl.com, Kaneva, blogoscoped.com, mojikan, frenzoo.com, clickbeurs.nl, Mr. Picassohead, whyrobbierocks.com, weeworld, and voki.com, among others.

More

http://www.sktelecom.com/
http://fix8.com/
http://www.vickersfinancial.com/
http://www.pehub.com/article/articledetail.php?articlepostid=11271
http://www.techcrunch.com/2008/04/03/fix8-takes-2-million-series-a/
http://web2innovations.com/money/2008/02/17/fix8-has-taken-3m-for-animated-avatars-for-your-cam/
http://mashable.com/2007/10/15/fix8-funded/
http://www.techcrunch.com/2007/10/15/fix8-raises-3-million/
http://mashable.com/2007/09/12/avatars/
http://mashable.com/2007/06/26/fix8-stickam/
http://webmaster.stickam.com/2007/06/fix8_partners_with_stickam_to.html
http://www.camfess.com/contents.php?cid=16
http://www.techcrunch.com/2007/05/31/fix8-brings-computer-generated-animation-to-the-webcam/

 

Glam seems to be cutting off revenues for publishers

Something really interesting is going on with Glam Media. To make a long story short Glam is basically a controversial site that runs both a network of its own web sites as well as runs ads on a network of third party sites geared towards women online and has just recently raised a massive amount of funding – $85M.  The total funding for the company is already $114M. You may say yet another ad network site on Web and you might be right in part. However there was something really interesting with Glam – they were perhaps the only ad network out there that was guaranteeing ad revenues for their publishers, mainly lifestyle web sites oriented towards women. Let’s put it that way Glam’s business model was to guarantee some minimum flat pay outs to its publishers. Today, we have read on web, this practice seems to be changing – Glam is no longer going to pay for the entire ad inventory available at its participating web publishers that way effectively cutting off their revenues by 60% up to 80%.

Public information is that Glam pockets about 40 to 50 percent of the revenues it gets from advertising on its partner sites, giving the rest back to the publishing partner. What is remarkable is that Glam pays nothing to produce the content on those publisher sites, meaning it is milking those sites for a full 40 to 50 percent of their worth — merely for providing them with advertising technology.

Nonetheless the company has shown a tremendous increase of its traffic compared to the year before. ComScore reports that worldwide uniques across all sites that Glam sells advertising for had nearly 47 million unique visitors and 1.1 billion page views. Glam Network says it has over 200,000 quality articles across the sites involved.

So one starts to wonder here is this a well thought strategy for Glam to attract lots of publishers by initially paying big bucks and once it achieved its goals (to raise massive amount of funding) to cut those publishers off its network by simply no longer paying them what it has initially been promised. It is no secret that Glam Media succeeded in raising those over $100M in funding money due to its huge reach of over 40M uniques per month across various women web sites and blogs. Once the task was accomplished Glam is no longer in need from those small blogs that perhaps represent a large portion of those 44M uniques per month or is simply changing the policy in order to survive. We have put their business model under some doubts the last time we covered their massive round of funding and then we have written that in today’s hugely competitive environment ad networks are working in everything boils down to who pays more the web publishers. Glam claims it pays most to its web publishers, but it is hard to believe how Glam can out pay Google when they had just $21M in revenues last year while Google’s payout was almost $4B to its web publishers for 2007. Let’s put it that way who earns more from the ad networks is who is going to be capable enough to pay more to the web publishers. So it seems we were basically right. Glam is discontinuing their practice of guaranteed ad revenues for its publishers. 

However, the big question here is for how long those web publishers are going to stay with Glam Media and what will happen to Glam if they leave?

Here is what Glam has replied on Techrunch.

As GM of the Glam Publisher Network, my team’s #1 priority is to ensure the success of our publishers and to help them secure high-CPM brand advertising. Unlike most other networks we do not compromise on our rate card and as a result, our partners benefit from high CPM brand advertising. When we’re unable to deliver a paid ad, we have traditionally run a Glam house ad (i.e. a current house ad announces our upcoming Glam Network blogger awards). Publishers have requested more choice for the impressions that our house ads would normally fill. This default ad technology simply replaces the Glam house ads with a host of options. This is similar to standard network ‘default’ technology that’s been in general use for years.

I want to acknowledge that Glam is successful because of our publisher partners. As a company, our focus is on convincing the brands to engage in new ways with a media landscape made up of independent premium publishers with passionate audiences. We welcome the ongoing dialogue.

More about Glam Media

Glam Media’s distributed media network model is revolutionizing the very definition of what a media company is in the 21st Century.  With 44 million global unique monthly visitors (comScore MediaMetrix), Glam Media provides a compelling mix of fresh, original content created in-house with a carefully curated Glam Publishing Network of more than 450 popular and influential lifestyle websites, blogs and magazines. For premium national brand advertisers, Glam Media offers an unprecedented array of targeted options that are singularly attractive to both upscale and aspirational consumers.

About the founder

Samir Arora, Founder, Chairman, and CEO
Samir Arora founded lifestyle hub Glam Media to create a better way for brand advertisers to connect with their audiences on the Web. A tech-industry veteran, Arora was previously the chairman of Emode/Tickle, Inc, which was later sold to Monster in June 2004. Prior to that, Arora was chairman and CEO of NetObjects, Inc. where he drove the creation of the first web site building product NetObjects Fusion. Arora also currently serves as chairman of Information Capital LLC, a venture capital fund based in Woodside, Calif., that invests in leading-edge “big idea companies” in consumer publishing, media, and technology.

Other team members include:

Fernando Ruarte
Co-founder, CTO and VP, Engineering
Scott Schiller
EVP, Sales, Women’s Markets
John Trimble
EVP, New Markets Sales
Carl Portale
VP and Publishing Director
Joe Lagani
VP and GM, Glam Living
Karin Marke
VP, Sales, Western Region
Jack Rotolo
VP, Sales, Eastern Region
Bernard Desarnauts
VP, Products and Marketing
Scott Swanson
VP and GM, Glam Media Publisher Network
Raj Narayan
Co-founder and Architect
Dianna Mullins
Co-Founder, VP Glam Publisher Network & Ad Operations
Ralf Hirt,
VP, International
Jennifer Salant
VP, Business Development
Ernie Cicogna
Co-Founder and CFO

Major competitors include iVillage, AOL Women, CondeNet, Elle.com, auFeminin.com, Womensforum.com, SINA Women, QQ.com Women, BabyCenter Network, among others.

More

http://web2innovations.com/money/2008/02/25/glam-media-raises-a-massive-round-of-funding-85m/
http://www.glam.com/
http://www.glammedia.com
http://www.glammedia.com/about_glam/news/2008/02/25/glam-media-raises-85-million-in-private-strategic-financing/
http://www.techcrunch.com/2008/03/29/glam-makes-big-cuts-in-publisher-payments-up-to-80-drop-in-revenue
http://www.techcrunch.com/2008/02/24/glam-closes-massive-d-round/
http://online.wsj.com/article/SB120390178731489459.html
http://www.docstoc.com/docs/412152/Glam-Media-Teaser-August-2007
http://www.techcrunch.com/2007/08/12/is-glam-a-sham/
http://www.techcrunch.com/2007/11/13/more-misplaced-glam-exhuberance/
http://www.crunchbase.com/company/glammedia
http://en.wikipedia.org/wiki/Glam_Media,_Inc.
http://venturebeat.com/2008/02/24/womans-network-glam-raises-846-million-at-half-a-billion-valuation-adconian-raises-80m/
http://www.glammedia.com/about_glam/our_story/competitive_landscape.php
http://news.speeple.com/business2.com/2007/08/13/bubble-watch-glam-media-shops-around-a-200-million-private-placement.htm
http://valleywag.com/360436/glam-media-raises-84-million-far-short-of-its-200-million-goal
http://valleywag.com/tech/online-advertising/glam-media-not-looking-so-beautiful-288964.php
http://venturebeat.com/2008/02/20/trends-secretive-new-york-bank-allen-co-gets-into-silicon-valley-media-tech/
http://www.foliomag.com/2008/glam-media-gets-85m-private-equity-financing
http://samirarora.com/html/bio.html

Jivox, yet another video ad network, has raised $2.7M

The funding was led by Opus Capital and also includes investments from individual investors including Jivox founder Diaz Nesamoney. The funds will be used to continue development of the Jivox online video advertising platform, as well as to expand the company’s sales and marketing efforts. No other names of private investors are publicly disclosed.

Jivox is a web-based video advertising service enabling businesses to better communicate their products and services to a micro-targeted audience in a more customized, relevant way than most traditional mass advertising methods, and internet banners and search engines. Jivox is headquartered in San Mateo, California with offices in Bangalore and Delhi in India.

Jivox in a way looks similar to SpotRunner with their pre-made ads for the TV and cable networks, but is being said to be way cheaper than them.

There’s absolutely no cost associated with creating your ads with Jivox AdSlate. Once you create the ad you like to air, then you set your daily, weekly or monthly ad budget. There are no minimums on the budget you set. Just purchase the amount of highly targeted ad inventory as your budget allows rather than the large block purchases required for most video advertising today. You can change your budget at any time.

Jivox AdSlate will optimize your advertising spend by negotiating the lowest cost possible to air your ads with Jivox Video Network Partner sites and maximize your exposure. Jivox will automatically match your ads with the audience that is most likely to respond favorably to your campaign. The cost of airing your ads is typically between $10-$40 range for each 1000 views (CPM).

“To date, video advertising has only been accessible to the large brand advertisers due to the high costs of production and placement on TV. The explosive growth in online video content is creating an opportunity for mid-sized and local businesses to harness the power of the internet to reach consumers. Jivox is enabling mass adoption of an advertising medium that is much more engaging and effective than search and display advertising due to its visual impact,” said Diaz Nesamoney, founder and CEO of Jivox. “We’re very pleased that Opus Capital and our other investors also see the enormous potential of opening up this market to smaller advertisers.”

“By making online video advertising a possibility for more advertisers, Jivox will accelerate broader adoption of the medium,” said Gill Cogan, general partner, Opus Capital. “As an early investor in Informatica and Celequest, we have had a strong long-term relationship with Diaz, and I’ve seen first-hand how he has been able to turn an idea into a product, and then evolve the product to stay one step ahead of the changing needs of the market. We are looking forward to supporting Diaz and the Jivox team as they build Jivox into a successful business.”

The market

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, mid-roll adspost-roll ads, watermark ads, viral ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BlackArrow, BrightRoll, XillianTVPodaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business. Other video advertising players include Revver, VideoEgg’s TheEggNetwork, ScanScout, Adap.tv, AdBrite’s InVideo platform, BroadRamp and Blinkx.

eMarketer predicts online video advertising to nearly double in 2008 to $1.3 billion, but no one’s really nailed a scalable ad platform for video. However, Google’s been quietly testing their own system and there are a bunch of other startups tackling it as well.

More about Jivox

Jivox is an exciting new online video advertising service that gives businesses that want to advertise on the Internet a better, personalized way to communicate their products and services to a micro-targeted audience. If your Internet advertising is not as effective as it used to be, or you are looking for a new way to get your message to your customers via rich visuals and video, Jivox can help.

Jivox helps you create, target and deliver professional video advertising on the Internet – going way beyond the search engine or banner ads – without spending a lot of time and money on producing your ad. Our proprietary technology helps you pinpoint your ads to the exact geographic, behavioral or demographic audiences you need to reach on the web. Here’s how: 

1. Create your own video ad
The Jivox AdSlate self-service video ad maker enables you to use our vast library of stock images, video clips and music to create your own ad or you can take your existing materials (such as a digital picture of your storefront, product shots, head shots, logos, etc.) and insert important information like your contact information, website, special discounts and promotions. See sample ads created with Jivox AdSlate Minutes later, you can be delivering your new ad on our extensive video network. See how it works.

Or, if you have an existing commercial you are using on Cable T.V., you can easily upload and use that to advertise on the Jivox Video Network. Or, let us build your ad for you.

2. Identify your target audience
Jivox delivers tailored, branded advertising to viewers based on their interests, enabling you to maximize your direct response opportunities. The Jivox Video Network delivers your video advertisement to your audience using geographic, demographic, behavioral and contextual intelligence.

Jivox has developed sophisticated algorithms that determine the best web sites and video content in which to serve your ad.

3. Define your budget and timing for your advertising campaign
Even if you have a limited budget, you can start your video ad campaign now with the Jivox Video Network. You can identify specific times of day, days of the week and other important choices or even run Time-of-Day/Day-of-Week ads on an introductory budget. Unlike most other forms of TV and web advertising, with Jivox, you only pay for ads that were actually viewed on a web site. More on Pricing.

The exclusive Jivox Ad Campaign Reports gives you advanced intelligence to optimize your advertising. You can then review the results to make intelligent decisions about how to improve or expand your media choices.

Jivox was founded in 2007 by Diaz Nesamoney, the visionary entrepreneur behind
Informatica (Nasdaq: INFA) and Celequest (acquired in 2007 by Cognos). Jivox aims to
bring the power of online video advertising to the mass market.

Management team

Diaz Nesamoney, Founder & CEO
Diaz Nesamoney founder of Jivox has had two prior successful ventures.  Before founding Jivox, he founded Celequest, raised over $20M in venture capital, and served as its CEO until early 2007, when the company was acquired by Cognos Corporation.  Celequest introduced the market’s first BI appliance, a disruptive innovation that led to its acquisition by Cognos. He was previously co-founder, President and Chief Operating Officer at Informatica (NASDAQ:INFA), which he took from a startup to a publicly traded company in 1999 with a market capitalization of over a billion dollars.  Informatica pioneered data integration software as a category and is now the market leader with over $400M in revenue. Diaz is a trustee of the American India Foundation, a leading international development organization charged with the mission of accelerating social and economic change in India. Diaz holds a Masters degree in Computer Science from the Birla Institute of Technology and Science in India.

Naren Nachiappan, Managing Director, Jivox India
Naren Nachiappan comes to Jivox from Wind River (NASDAQ:WIND), where as Vice President and General Manager, he was a part of the executive team responsible for reigniting growth and adding over $100 million to the top line in three years. Naren was directly responsible for taking the Device Management business from a concept to a multimillion-dollar revenue rate in under 9 quarters. At Wind River, Naren established the company’s first product development team in Bangalore, India, with a zero percent attrition rate through his three-year tenure. Earlier in his career, as CEO of Proceler and as Senior VP at VenturCom (acquired by Citrix), he was responsible for pioneering several industry innovations such as “the first support for automated application acceleration using hybrid SoCs” which resulted in Proceler’s nomination for the 2001 MPR Analysts choice award, and the first flight-essential certified UNIX for avionics applications on the Boeing 777. Naren graduated cum laude from Harvard University and holds an MBA from the UC Berkeley Haas School of Business.

Parth Chandra, Chief Architect
Parth has over 14 years of experience in the software industry in the field of Data Integration and Business Intelligence. Parth has worked most recently at Insights On-Demand, where he was the Chief Architect. Before Insights, he worked at Informatica (NASDAQ:INFA) as a Sr. Software Architect where he was part of the founding team that was responsible for software design and development of their market leading Data Integration products. Prior to Informatica he held software engineering positions at Citicorp Software and Neuron Data where he designed and implemented large scale financial transaction systems and cross platform development environments. Parth holds a degree in Mechanical Engineering from IIT Kanpur and an MBA degree from the Indian Institute of Management (IIM) Bangalore.

More about Opus Capital

Opus Capital Group is an alternative assets firm with more than $1 billion in committed capital under management. Since 1971, Opus Capital’s predecessor funds have invested in more than 350 companies spanning multiple industries.

More
 
http://www.jivox.com/
http://www.jivox.com/Jivox_funding_release_final.pdf
http://www.opuscapital.com/
http://mashable.com/2008/03/10/jivox/
http://www.thealarmclock.com/mt/archives/2007/05/jivox_stealth_m.html
http://www.paidcontent.org/entry/419-self-service-video-ad-provider-jivox-closes-27-million-seed-round/
http://venturebeat.com/2008/03/09/jivox-offers-simple-online-video-ads-for-small-businesses-raises-round/
http://www.redherring.com/Home/23889
http://web2innovations.com/money/2008/03/09/video-advertising-networks-are-hot-brightroll-gets-its-second-round-claims-it-already-served-over-1-billion-video-ads/

Mint keeps on taking money, closes its third round of funding

Mint.com, the site that helps you find better interest rates on bank accounts, credit cards, and other financial products. But here is the interesting part. The site officially launched in September 18, 2007, after nearly two years of development and significant private beta testing, and in just a few weeks, after being announced winner on TechCrunch40, the site took seriously off. In just 18 days, the company said, they had reached more than $2 billion worth of people’s personal financial accounts, and identified more than $40 million in potential savings for those members. In a moment Mint ended up having a new member every five seconds. It turned out that people really will do anything to save a buck. There were more than 50,000 accounts opened up. And logically the investors jumped in. Total funding in no time reached $5.5M for Mint Software.

Today we have read over Internet that Mint is about to announce its third round of funding today – $12.1 million from new investor Benchmark Capital and all previous investors, including Shasta Ventures, Sherpalo Ventures, Felicis Ventures, Hite Capital and First Round Capital. The company has now raised a total of $17 million, most of it since October of 2007. Benchmark’s Bob Kagle is joining the Mint board.

CEO Aaron Patzer says the company is adding 10,000 new users per week, has organized over $10 billion in purchasing activity and has identified around $100 million in savings opportunities for users.

The company makes money via lead generations, and Patzer says users are clicking on presented opportunities 12-15% of the time. That all sound very good and promising but it also raises some concerns and the Mint’s independence different online users are already asking about. Mint is being accused already that they may be selling out trying to get deals with banks to connect to their system.

When’s the last time you went to an ATM that let you take out $1.50, $2.00 or any amount under $20. Then it seems odd that Mint can’t distinguish and break out your ATM fees so you can see how much I spend. I don’t spend $101.50 on ATM fees, I spent $1.50. There are several very obvious things Mint could help with, but don’t.

From the banks perspective they make a lot of money from ATM fees which costs them next nothing providing huge margins. So are they interested in cooperating with a service that makes points out that you are getting fleeced in ATM fees? It is being said there are more examples like this, one gets lousy interest on his/her savings – however somehow the only bank switch recommendations one gets are from CITI bank to … CITI Bank. Never a recommendation to switch to WAMU for example which would save the user $9.50/month in checking, and $20-30/month in ATM fees.

Some users raise the point that Mint might be too much in bed with the banks to be anything other than an overview.

Techcrunch has reported it has a source that told them venture capitalists were clamoring to get a piece of this deal, but the question here is does Mint really need that much money or it is all about the fact that VCs want to be in regardless what Mint’s real needs might be. 

More about Mint

Mint is the freshest, most intelligent way for you to manage your money online. Not only is Mint free, it saves you money. While existing personal finance software packages require hours to set up, a passion for accounting (is that possible?) and hours of weekly maintenance, Mint is virtually effortless.

With Mint, you can be fully up and running in less than five minutes. After that, revolutionary, patent pending Mint technology does the rest, with virtually no more work required. It automatically pulls together your bank, credit union and credit card data, and provides up-to-date and amazingly accurate views of your financial life – from the big picture to specific details, in a friendly and intuitive way.

In addition, Mint goes beyond visibility and analysis; providing personalized money-saving and money-making suggestions. Mint provides users an average of $1,000 in savings opportunities during their first session. Plus, Mint is proactive— alerting you when you are overbudget, have a low balance, need to pay a bill, and more.

Mint is safe and secure: we never know your identity and we provide bank level data security.

How Mint works
Mint is a modern, powerful, easy and secure web-based solution for managing your finances. And it’s free. You register anonymously using any valid email address, and then add the log-in information for the online bank, credit union and credit card accounts you want to consolidate in Mint.

Mint connects to over 3,500 US financial institutions. Your account information is updated each night. Mint automatically categorizes all your purchases, showing you how much you spend on gas, groceries, parking, rent, restaurants, DVD rentals and more, with amazing precision. An advanced alerting system highlights any unusual activity, low balances, unwanted fees and charges, and upcoming bills so you’re in constant contact with your money – effortlessly. 


Mint goes way beyond just reporting. Using a patent-pending search algorithm, Mint constantly searches through thousands of offers from hundreds of providers to find the best deals on everything from bank accounts to credit cards; cable, phone and Internet plans, and more. Mint’s suggestions are “unique to you” as they are based on your individual spending patterns. For example, if you have $20,000 in a bank account that’s earning no interest, Mint might recommend a high interest rate savings account from ING or HSBC. Acting on that suggestion would give you an extra $900 in interest income over a year.

Key Benefits
Mint is an entirely new approach to personal financial management. You don’t work for Mint, it works for you. We think you’ll love Mint because it’s:

Easy to use: You’re up and running in under five minutes. And Mint does virtually all the rest.

Comprehensive: Mint provides detailed visibility into virtually all your financial relationships with a single, secure login.

Visual and Analytical: Mint gives you powerful insights into your finances – making it easier to make good financial decisions

Constantly working to find you savings: Mint typically finds users $1,000 in savings opportunities in their first session – minutes after registering. And Mint keeps looking for new ways for you to save every day — continuously comparing your needs to product, service and bank offerings most relevant to you.

Secure: Mint provides bank level data security and industry leading identity protection. Its security and privacy have been validated by VeriSign and TRUSTe.

Always On: You’re automatically notified of upcoming bills, low balances, and any unusual activity in any of your accounts, through one (m)interface.

Anywhere/anytime access: You can get to Mint anywhere, anytime over the web

And it’s Free!

Breakthrough Technology
Aaron’s personal experience led him to create to two breakthrough technologies which make Mint so useful, intuitive and unique:

Patent-pending categorization technology that automatically identifies and organizes purchases from descriptions in the electronic records at banks and credit card companies.  A proprietary search algorithm which finds savings opportunities unique to each user.  Mint’s technology does everything automatically in a way that other online banking applications and personal finance management software can’t. It provides useful information and smart, specific recommendations for saving or making more money based on each user’s individual purchase history. Today, after nearly two years of development and significant private beta testing, Mint is preparing to announce the public beta of Mint.com. The company has put together an experienced executive and engineering team, and has attracted funding from top tier venture capital firms and angel investors.

Security

Security is crucial when someone is dealing with your financial information and it is no wonder there were many debates surrounding Mint in the public space. We have dug information up ourselves and have found many interesting commentaries made by Mint’s CEO, which we enclose below. Below is what Aaron Patzer, Founder & CEO at Mint.com, has to tell about security.

To all those who are concerned over Mint.com security, a few points:
1) You’re anonymous on Mint.com
2) Our security is independently verified
3) Email & text-message alerts help identify fraud immediately… and being proactive is the best measure.

I’ll make a bold statement: You’re safer on Mint then with online banking. On Mint, you’re completely anonymous. We never ask for a name, address, or SSN – just an email. We know about your finances…but not about you. We’re also independently verified by VeriSign, TRUSTe, and several outside agencies.

We also have serious physical security. Our servers are in a secure, unmarked facility. To get in, you need to pass 3 biometric scanners, 4 locked doors, and several guards. We have our own cage so we’re physically separated from all other companies. Cameras monitor our servers and power supplies 24/7. The servers themselves have additional locks. The hard drives are encrypted. It’s like Mission Impossible (except without the electrified floors…maybe one day).

Perhaps more interestingly, 90% of all fraud actually occurs offline, not online (e.g. someone swipes your card at a restaurant or from your mail). Because Mint sends proactive alerts for low-balance or unusually high spending, you’ll know right away. It’s better than logging into 4-5 different banks every day, or waiting 30 days for a paper statement before finding that something went wrong.

By law you have:
– $0 liability for credit card fraud,
– $50 liability for bank fraud (if you notify your bank within two days)

Again, 90% of all fraud starts offline, for example when someone takes your credit card at a restaurant, or digs through your mail. Sadly, a large portion of fraud is actually committed by friends and family members.

Mint.com helps keep you safe by providing email and text-message alerts for:
– Low balances (e.g. someone is draining your account)
– Unusual spending (e.g. someone buys $1000 in electronics in a day)
– Low available credit

If there are any anomalies, Mint.com shows you right away. The alternative is to a) login to every single credit card, checking, and savings account every day to check for fraud, or b) wait 30 days until a paper statement arrives before noticing an issue.

By taking a proactive approach, Mint.com actually helps protect you from the vast majority of fraud – better than just about any website out there.

Concerning whether using Mint.com violates your bank terms & conditions:

Consider that Quicken and Microsoft Money ask you for the exact same credentials as Mint.com, and have been for the past 10 years. MS Money even uses Yodlee to make it’s connection to banks (same as Mint.com, BofA, and Fidelity).

The problem with those tools is they cost $30-$80, sunset their products every 2-3 years to force an upgrade, require an hour to setup, and take an hour a week to maintain.

Mint is like an extension to online banking: pull all your accounts together in one place, finally see where your money goes, get alerts on anything out of whack, and find savings opportunities worth an average of $1,000/user.

Mint never gives your information to third party advertisers. We have a proprietary database of financial offers, interest rates, and communications (phone, tv, internet, wireless) providers. The matching is done in software, anonymously.

Your information never leaves Mint.com. If or when you click through on a savings opportunity, no information is passed except that the click came from Mint.com.

Mint does make a small referral fee from advertisers on some offers. That’s what keeps Mint free. Whether we have a relationship with a provider in no way affects our ranking algorithm – we find users the best interest rate or lowest price regardless.

What this means in the end is Mint only makes money if we can find ways for the user to save money. And we think that’s pretty revolutionary. The only ads you see are ads that make you money…think about how different that is as a business model.

What the company, by that time, seemed not to be dealing with is the offers it makes are often not competitive with or comparable to what users are getting, mint is just having no way to know that!

For example, I have a Capital One card with 1% back. You see my Capital One account with ? for a cash return, and “offer” me a 1% back card (a *savings* of $250/year!). There needs to be a way to user input the specifics of current accounts and products before you offer to “save” me all that dough!

Mint has told by that time they are tackling the issue within the next month or so, they will be able to accurately capture the rewards earned on just about every credit card. Then, it will be able to accurately reflect the fact you are earning 1% back on your Capital One card. We were unable to dig something up from the public web as to whether this issue has been fixed or not.

Some more drawbacks as we have found them around Web are as follows. You can’t import data to Mint in any way other than through your financial institution, meaning that if you’ve got years’ worth of financial data in Quicken, don’t count on importing it to Mint. That said, Mint can load over a year of your most recent financial data (depending on how long your institution provides it) when you sign up.  On a similar note, Mint doesn’t export data—meaning if you decided to ditch Mint for another money management solution, you’re not going to get a CSV file or any other export of your data.

The most notable and practical drawback to Mint came in the form of strangely named, incomplete transaction descriptions (the imported name was strange—the actual transaction name at the originating financial institution was more descriptive). As a result, I ran into problems setting up renaming rules for transactions in Mint. For example, a transaction that read in my checking account (at the actual US Bank web site) as “Web Authorized Payment AT&T” showed up in Mint as “Web Payment” or something along those lines. I set Mint to automatically rename this transaction to AT&T, but then every Web Authorized Payment in my account was renamed AT&T, although some were gas or water and power bills. Similarly, “Purchase with PIN” shows up in the ledger as “With,” which is not terribly helpful. Next to the all-in-one account integration, automation is Mint’s biggest draw—which means these sort of minor issues need worked out before you can set up renaming rules with complete confidence (especially since you can’t currently undo renaming rules). On the flip side, Mint claims to accurately identify and rename 90% of imported transactions without any need for user import, compared to Quicken’s 40% (their numbers).

Management team

Aaron Patzer
Founder and CEO
Aaron is both the visionary and technical mind behind Mint, the first free, automatic and secure way to manage and save money online. He designed Mint to meet his own needs and those of people like him who value the immediacy of the Web, simplicity and their free time. With 10 patents filed or pending, Aaron brings strong innovation skills to Mint. Prior to founding Mint, Aaron was an architect and technical lead for the San Jose division of Nascentric. Before Nascentric, Aaron worked for IBM and founded two web development and online marketing companies: PWeb and International. Aaron holds an MSEE from Princeton University and a BS in computer science, computer engineering, and electrical engineering from Duke University.

Aaron’s Financial Personality? Über-Frugal but lusting in his heart for expensive cars.

Donna Wells
Chief Marketing Officer
Donna brings over twenty years’ experience in strategic management and marketing to the Mint team, with specific expertise in the financial services industry and online demand generation. She led client acquisition/retention, brand-building and product development for organizations ranging from start-ups to global brands – including Expedia, myCFO, Intuit, Charles Schwab and American Express. Prior to Mint, Donna was Senior Vice President of Marketing at Expedia, where she was responsible for strategic direction of the company’s brand, advertising, direct marketing, customer and partner marketing and market research. At Intuit, as Vice President of Corporate Marketing and acting CMO, she led the company’s corporate marketing functions and general marketing strategy. She also served as Vice President of Intuit’s Small Business and Personal Finance division, responsible for direct marketing, channel marketing and market research for the Quicken, QuickBooks and Small Business Services businesses. Donna joined Intuit from myCFO, Inc., where she was Chief Marketing Officer. She previously held senior positions at Charles Schwab, where she led marketing for segments representing 70% of all Schwab client households, and American Express, where she launched the Gold Rewards and Platinum Corporate Cards. Donna holds a MBA from Stanford University’s Graduate School of Business and a BS in Economics from the Wharton School at the University of Pennsylvania. She is a past Board member of the Financial Women’s Association of San Francisco and the Marketing 50.

Donna’s spending personality: Unremarkable, except in her weakness for luxury hotels.

David K Michaels
VP Engineering
David has over 10 years experience in building secure, distributed, fault-tolerant systems. David was most recently leading the development of server products for PGP, where he helped design, build and ship three major versions of the company’s  flagship product: PGP Universal. Prior to PGP, he built a high-volume financial information product targeting online retail equity traders. David was on the server team at NetDynamics (acquired by Sun Microsystems), implementing core features for security, scalability, fault-tolerance, distributed load balancing, and performance. He has also worked at GeoCities, where he developed the company’s first capability to insert advertising banners on its pages. He has held several positions with Lawrence Livermore National Laboratory working on distributed systems and the WWW. David holds a M.S. in Computer Science with honors from Stanford University and a B.S. in Computer and Information Science from the New Jersey Institute of Technology.

David’s Financial Personality? Conservative and analytic in all spending categories Dining Out. Major Foodie.

Aaron Forth
VP Product
Aaron brings over ten years’ of product development and product management experience to Mint. Prior to joining Mint, Aaron held several leadership positions at eBay and Half.com (acquired by eBay Inc.). Most recently, as Director of Advertising, Aaron was responsible for product strategy, design and product development. Aaron has a background in multivariate testing used to drive analytically-based decisions around product design, improved user experience and strategic partnerships. Prior to working in advertising, Aaron managed internet marketing and product management teams, focused on search engine marketing, search engine optimization and affiliate marketing. Aaron’s career in software was established at Kana Communications, Inc., a CRM software start-up. He holds a bachelor’s degree in Earth Sciences from University of California, Berkeley.

Aaron’s spending personality: Frugal at heart. Focused on enjoying life in practice.

Anton Commissaris
VP Business Development
Anton is responsible for Mint’s business strategy, revenue and partner development. Anton brings to Mint over 15 years of experience in the software and Internet sectors spanning legal, operations, marketing and business development roles. Prior to Mint, Anton was Vice President of Business Development at Right Hemisphere, the leader in visual product communications and collaboration. Prior to Right Hemisphere, Anton was Director of Business Development at Spotlife (Logitech) a pioneer in Web consumer video solutions. Anton began his career as an attorney working in London and Paris, and then in Palo Alto, California at Wilson Sonsini Goodrich & Rosati, the leading law firm for emerging growth high technology companies. He holds law degrees from the University of Auckland and the University of Montpellier, France.

Anton’s Financial Personality? The ultimate deal-seeker and most passionate negotiator. We love having him run Biz Dev.

Mint has been named Best of Show at the 2007 Financial Innovations conference. Mint has also been chosen as the best presenting company at TechCrunch40 and has won a $50,000 cash award. In December 28, 2007 Mint.com has also won the 2008 PC World 25 Most Innovative Products Award.

Competitors and similar companies include BillMonk, Expensr, Wesabe, Zecco, Buxfer, SpendView, Geezeo, sMoneyBox, FreeAgentCentral, Covestor.com, Yodlee, wclipperz.com and passpack.com, among others. Of course, Intuit is the major player in the space.

More

http://www.mint.com
http://www.mint.com/blog
http://www.techcrunch.com/2008/03/05/mint-gets-a-mint/
http://web2innovations.com/money/2008/02/21/mintcom-the-financial-planning-startup-with-an-army-of-high-profile-investors/
http://www.mint.com/press/downloads/release_20080108.pdf
http://www.mint.com/press/downloads/release_20071228.pdf
http://www.techcrunch.com/2007/10/16/mints-47-million-a-round/
http://www.crunchbase.com/company/mint
http://www.techcrunch.com/2007/09/18/mint-wins-techcrunch40-50000-award/
http://www.techcrunch.com/2007/11/14/billeo-secures-7-million-in-financing/
http://www.techcrunch.com/2007/10/07/mint-rakes-it-in/
http://www.netbanker.com/2007/10/mint_mortgagebot_and_prosper_w.html
http://www.informationweek.com/windows/showArticle.jhtml?articleID=178600217
http://www.crunchbase.com/person/aaron-patzer
http://www.linkedin.com/in/apatzer
http://twitter.com/apatzer
http://digg.com/users/apatzer
http://consumerist.com/commenter/apatzer/
http://www.spock.com/Aaron-Patzer-NBd4i1sF
http://www.techcrunch.com/2007/09/18/techcrunch40-session-5-productivity-web-apps/
http://blog.mint.com/blog/personal-finance-interview/personal-finance-interview-with-aaron-patzer-of-mymintcom/
http://blog.mint.com/blog/personal-finance-interview/mint-team-spotlight-sid-bhatt/
http://www.finovate.com/
http://r3fresh.com/2007/10/09/how-secure-is-mintcom/
http://www.nytimes.com/2007/11/22/fashion/22CYBER.html?ex=1353819600&en=6199204353c38df5&ei=5124&partner=permalink&exprod=permalink
http://venturebeat.com/2007/09/18/mint-the-easiest-way-to-manage-your-personal-finances/
http://lifehacker.com/software/screenshot-tour/is-mint-ready-for-your-money-312083.php
http://consumerist.com/consumer/budgets/mintcom-+-a-new-free-personal-finance-management-site-301172.php
http://en.wikipedia.org/wiki/Ram_Shriram
http://www.pcworld.com/article/id,140663-c,technology/article.html
 

Glam Media raises a massive round of funding – $85M

A controversial site Glam that runs both a network of its own web sites as well as runs ads on a network of third party sites geared towards women online has raised a massive amount of funding – $85M.

Glam Publishing Network operates more than 450 popular and influential lifestyle websites, blogs and magazines, but it seems Glam.com is the main anchor with the largest reach among those web properties. They also sell advertisements for other sites, which make up the vast bulk of its huge amount of page views. The network has been criticized in the past for claiming to be the largest women’s site on the Internet, and the fastest growing site in the U.S., based on traffic coming from third party sites they sell ads for. We tend to agree with those arguments because we do believe it is inaccurate for an ad network to claim the traffic of its participating web publishers for its own. ComScore allows publishers to “assign” their traffic to another organization, letting ad networks pool the traffic from all client sites. If a widely used ad network like Google AdSense used this system, Google’s network would be by far the largest. But, it’s a disingenuous statistic, especially since Glam likes to pretend it’s not an ad network.

Glam, opposes that it’s more than a network: They say, like Microsoft has done with Facebook and Digg, and Google has done with MySpace, their network buys up some sites’ ad inventories at a guaranteed rate. That means the profit — the loss respectively — from those ad buys is entirely Glam’s. But it’s said to be a very risky business model. For an example even the mighty Google has recently said, in their earnings call, that ads on MySpace weren’t performing quite well, which means losses for Google. So what will happen to Glam if the ad inventory they are buying does not perform well too?

Public information is that Glam pockets about 40 to 50 percent of the revenues it gets from advertising on its partner sites, giving the rest back to the publishing partner. What is remarkable is that Glam pays nothing to produce the content on those publisher sites, meaning it is milking those sites for a full 40 to 50 percent of their worth — merely for providing them with advertising technology.

Nonetheless the company has shown a tremendous increase of its traffic compared to the year before. ComScore reports that worldwide uniques across all sites that Glam sells advertising for had nearly 47 million unique visitors and 1.1 billion page views. Glam Network says it has over 200,000 quality articles across the sites involved.

Glam has landed some top-tier investors like Hubert Burda Media, GLG and DAG. Glam has offices in Brisbane, Calif. and New York and the pre-money valuation is said to be $425M.

Glam Media, Inc. has closed $84.6 million in private financing, with $64.6 million in Series D funding and $20 million in revenue-based debt financing. Proceeds of the financing will be used to accelerate the growth of the company’s distributed media network that connects premium brand display advertisers with online audiences worldwide.  The equity financing round is led by Hubert Burda Media, an international media powerhouse and publisher of more than 260 magazines titles and an investor in more than 25 high-growth digital holdings.
 
Other investors for the round include:  GLG Partners, a leading alternative asset manager; Duff Ackerman & Goodrich Ventures (DAG), a leading crossover fund with a rich history in Internet and TV networks; and existing investors Accel Partners, Draper Fisher Jurvetson, Walden Ventures and Information CapitalHercules Technology Growth Capital, a leading provider of debt and equity capital, will provide the debt financing.

The new funding will fuel Glam Media’s aggressive global expansion in 2008 across new territories and categories, focusing on transforming brand display advertising on the Web as the market shifts away from the dominance of portals and destination sites to the distributed media network model that Glam Media helped pioneer. The funding will also be used to make strategic acquisitions, invest in technology to grow the distributed media model and further global growth.

Christiane zu Salm, who joins the executive management board of Hubert Burda Media in April 2008, will join the Glam Media Board of Directors as an observer.  Ms. zu Salm was founder of interactive TV network Neun Live and formerly managing director of MTV Central Europe.  Dr. Marcel Reichart, managing director of Research & Development, Marketing and Communications at Burda, and co-founder of the prestigious DLD conference, will oversee the relationship between Burda and Glam.  In a separate announcement today, Glam unveiled its rollout in key international markets starting in the United Kingdom, where Glam along with its publishers is already number one in audience reach, ahead of long established media companies including iVillage and CondeNet.

“Glam Media is well positioned to enable global brand advertisers via their distributed media network model,” said Dr. Marcel Reichart of Hubert Burda Media.  “The investment by Burda leverages our strong position in women and lifestyle media brands and further enables our transformation towards digital media.”

“Glam Media is ideally situated as an influential player in the emerging global digital media landscape,” said Samir Arora, chairman and CEO of Glam Media.  “In 2007, Glam Media was the fastest-growing in comScore Media Metrix Top 50 properties, becoming the number one women’s property on the Web in the U.S. with unprecedented speed.  With fragmentation increasing on the Web, our proven distributed media network model both supports our key publishers and is the optimal way to bring premium brand display advertisers to the Web.”

Banc of America Securities and Allen & Company served as the lead placement agents, with Deutsche Bank as a participating investment bank helping in the placement of this round.

Glam Media continues to experience significant growth both in traffic to Glam-owned-and -operated properties and via the reach of its publisher network of 450+ lifestyle websites and blogs.  Recent strategic hires—including senior sales executive John Trimble from Fox Interactive, former Yahoo! Smart Ads platform executive Dr. Kiumarse Zamanian and Joe Lagani, former Conde Nast publisher—further position the company to take advantage of the market focus and demand for premium brand display advertising.

Glam Media’s distributed media network currently includes Style, Living, Entertainment, Wellness and Shopping channels.  Each channel brings together a blend of original editorial, syndicated and media partner content and curated content from the 450+ sites in the Glam Publisher Network.  Glam Media provides media services—display and video advertising, content syndication, advertorials, search and other application services to its highly select network of publishers and managed vertical networks for traditional media companies.  Glam Media’s pioneering distributed media model has helped hundreds of publishers start and build their businesses by helping them focus on what they love doing the most—creating original content and engaging their audience—while Glam Media creates the “ecosystem” that helps support and leverage the publishers’ power for advertisers worldwide.

More about Hubert Burda Media

Hubert Burda Media is a $2.4 billion in revenue international media group with more than 7,000 employees that first entered the market more than 100 hundred years ago.  Today, the company’s portfolio comprises more than 260 magazines worldwide, over 25 digital holdings, radio networks and television productions as well as media sales, printing and direct marketing operations.

More about Glam Media

Glam Media’s distributed media network model is revolutionizing the very definition of what a media company is in the 21st Century.  With 44 million global unique monthly visitors (comScore MediaMetrix), Glam Media provides a compelling mix of fresh, original content created in-house with a carefully curated Glam Publishing Network of more than 450 popular and influential lifestyle websites, blogs and magazines. For premium national brand advertisers, Glam Media offers an unprecedented array of targeted options that are singularly attractive to both upscale and aspirational consumers.

About the founder

Samir Arora, Founder, Chairman, and CEO
Samir Arora founded lifestyle hub Glam Media to create a better way for brand advertisers to connect with their audiences on the Web. A tech-industry veteran, Arora was previously the chairman of Emode/Tickle, Inc, which was later sold to Monster in June 2004. Prior to that, Arora was chairman and CEO of NetObjects, Inc. where he drove the creation of the first web site building product NetObjects Fusion. Arora also currently serves as chairman of Information Capital LLC, a venture capital fund based in Woodside, Calif., that invests in leading-edge “big idea companies” in consumer publishing, media, and technology.

Other team members include:

Fernando Ruarte
Co-founder, CTO and VP, Engineering
Scott Schiller
EVP, Sales, Women’s Markets
John Trimble
EVP, New Markets Sales
Carl Portale
VP and Publishing Director
Joe Lagani
VP and GM, Glam Living
Karin Marke
VP, Sales, Western Region
Jack Rotolo
VP, Sales, Eastern Region
Bernard Desarnauts
VP, Products and Marketing
Scott Swanson
VP and GM, Glam Media Publisher Network
Raj Narayan
Co-founder and Architect
Dianna Mullins
Co-Founder, VP Glam Publisher Network & Ad Operations
Ralf Hirt,
VP, International
Jennifer Salant
VP, Business Development
Ernie Cicogna
Co-Founder and CFO

Online sources have reported than Glam was looking to raise as much as $200M in August 2007. A document from Glam’s financial advisers, leaked on the Internet last year, suggested the above whopping amount but Mr. Arora says that Glam didn’t plan to raise that much in this round, and that the funds actually raised exceeded its board’s targets. He says the company expects to continue to increase its debt financing to as much as $100 million, in line with its revenue growth. Theresia Gouw Ranzetta, a Glam director and general partner at Accel Partners, a Glam investor, says she had initially wanted the company to raise just $40 million or $50 million. She concluded it wouldn’t be bad to raise a bit more as a “rainy-day fund” because of current macroeconomic uncertainty. The company, according to their original offering document is not yet profitable. They lost around $3.7M on $21M in revenue in 2007 but they project revenues in $150M range for 2008 with promised $40M in profit. The company was launched in 2005 and had previously taken $30M. The company has an ambitious plan to build its own “AdSense”, which they call Glam Evolution Ad Platform.

Major competitors include iVillage, AOL Women, CondeNet, Elle.com, auFeminin.com, Womensforum.com, SINA Women, QQ.com Women, BabyCenter Network, among others.

In today’s hugely competitive environment ad networks are working in everything boils down to who pays more the web publishers. Glam claims it pays most to its web publishers, but it is hard to believe how Glam can out pay Google when they had just $21M in revenues last year while Google’s payout was almost $4B to its web publishers for 2007. Let’s put it that way who earns more from the ad networks is who is going to be capable enough to pay more to the web publishers.  
More

http://www.glam.com/
http://www.glammedia.com
http://www.glammedia.com/about_glam/news/2008/02/25/glam-media-raises-85-million-in-private-strategic-financing/
http://www.techcrunch.com/2008/02/24/glam-closes-massive-d-round/
http://online.wsj.com/article/SB120390178731489459.html
http://www.docstoc.com/docs/412152/Glam-Media-Teaser-August-2007
http://www.techcrunch.com/2007/08/12/is-glam-a-sham/
http://www.techcrunch.com/2007/11/13/more-misplaced-glam-exhuberance/
http://www.crunchbase.com/company/glammedia
http://en.wikipedia.org/wiki/Glam_Media,_Inc.
http://venturebeat.com/2008/02/24/womans-network-glam-raises-846-million-at-half-a-billion-valuation-adconian-raises-80m/
http://www.glammedia.com/about_glam/our_story/competitive_landscape.php
http://news.speeple.com/business2.com/2007/08/13/bubble-watch-glam-media-shops-around-a-200-million-private-placement.htm
http://valleywag.com/360436/glam-media-raises-84-million-far-short-of-its-200-million-goal
http://valleywag.com/tech/online-advertising/glam-media-not-looking-so-beautiful-288964.php
http://venturebeat.com/2008/02/20/trends-secretive-new-york-bank-allen-co-gets-into-silicon-valley-media-tech/
http://www.foliomag.com/2008/glam-media-gets-85m-private-equity-financing
http://samirarora.com/html/bio.html

Page creator Jimdo landed the Samwer Brothers as investors

It has been so much noise around Facebook lately and whose their next investor is going to be so that great small start-ups have naturally been overlooked. One of those is a tiny German based start-up called Jimdo. What is in common between Jimdo and Facebook, you may ask? There is nothing in common aside the fact that they have an investor in common – The Samwer Brothers. Just two months before they invested in Facebook with plans to take the company to Europe, the brothers have poured money into Jimdo through their European Founders Fund. The Samwer Brothers are Jimdo’s first large-scale investor. The amount of the investment is not publicly disclosed.

Jimdo is an AJAX-based web pages creation tool similar to Google Page Creator, allowing users to create homepages completely over the Web, without any knowledge of HTML. Jimdo is perhaps most popular with the fact that you can easily grab a design from any site and apply to yours in a couple of steps. Jimdo is available in several major languages such as Deutsch, English, French, Chinese, Italian and Russian

Jimdo is really easy to use as the company’s web site claims. Once you’ve registered for your own JimdoFree-Page, they will immediately send you an e-mail with a link to your Page. After logging in to the admin mode, you’ll discover Jimdo’s greatest innovation: you practically won’t notice a difference between the site as it appears online and the site as it appears in admin mode!  You can also integrate photos, videos, RSS feeds and downloads just as easily! Your visitors will immediately be able to see any changes that you make.

More about Samwer brothers

After selling the German Internet auction site Alando.de to eBay for $50 million in shares, the brothers have made names for themselves and have become even more involved with startups since. After a brief spell working for eBay, they then set up ringtone firm Jamba, which they sold to the U.S. company Verisign for $273 million in shares and cash in 2004. Little later they have also invested in the German Twitter clone, Frazr, and a handful of other startups. Interestign fact to note is that the Samwer brothers also invested in the Facebook clone StudiVZ, which was sold about a year ago for $112 million. Taking these facts and achievements into consideration we would not be that far in our conclusions if we say the guys are successful serial entrepreneurs and they have something to do with the social networking, at least in Europe. It already comes as no surprise they are interested to bring the most popular social site into Europe and lock down exclusivity for the market.

The Samwer brothers have become the strategic partners for Facebook in Europe. In 2006, they established the European Founders Fund to invest in promising Internet companies.

More about Jimdo

In 2004 we founded NorthClick on an old farm. Without a cent we moved in at Fridtjof’s home and developed the online-software that now is the core of Jimdo. NorthClick distributes this software to small and medium sized enterprises who can use the software for updating their websites really easily. Short after the founding we won a business plan competition, which gave us approximately 20,000 USD.

In combination with some basic agreements and our first customers we had enough money to move to Hamburg and rent our first office. Since then, we already moved into a bigger office and have a rising number of customers and colleagues!

During the last four years more and more of our friends asked us whether they could use our system for private stuff. We were so fascinated by the cool pages they created! Some used the system for pages about themselves, three guys used it to document their sailing trip from Germany to Sydney, some to promote their bands… and the feedback was just unbelievable!

That’s when the idea was born to give Pages to the People!

The team (the founders)

Matthias Henze
Marketing, Distribution
1979. Matthias has a diploma in business studies. He studied at the universities of Kiel, Germany and Goteborg, Sweden. In 2004, he was one of the founders of NorthClick, and of Jimdo in 2007. Almost every evening he puts up a good fight against Fridtjof and Christian (it’s all about being the best in Atomic Bomberman).

Fridtjof Detzner
Interface Design, System Development
1983. Fridtjof and co-founder Christian founded his first company, web agency dream-up.de when they were still going to school. Later he founded NorthClick and Jimdo together with Christian and Matthias. At the moment, he practices handstand-running and furthermore he is innovator of the so-called “salary-golfing”.

Christian Springub
Programming, System Development
1982. Christian founded with Fridtjof the web agency dream-up.de, later with Matthias and Fridtjof NorthClick and Jimdo. If Christian is not in the office, the noise level decreases at once!

~~~~

More

http://www.jimdo.com/
http://www.jimdo.com/blog.php
http://howsyourburger.jimdo.com
http://cornelia-travnicek.jimdo.com
http://mashable.com/2007/10/16/jimdo-samwer/
http://web2innovations.com/money/2008/01/21/after-samwer-brothers-nokia-is-also-going-to-invest-in-facebook/
http://www.techcrunch.com/2007/08/15/steal-this-template-with-jimdo/
http://venturebeat.com/2007/08/15/jimdo-lets-you-create-a-website-or-clone-someone-elses/
http://www.downloadsquad.com/2007/04/04/create-websites-easily-with-jimdo/
http://webware.com/8301-1_109-9704384-2.html?tag=blog
http://blog.outer-court.com/archive/2007-03-16-n33.html
http://ajax.phpmagazine.net/2007/03/jimdo_pages_to_the_people.html
http://themarketingblog.wordpress.com/2007/07/29/people-pages-and-fun/
http://www.genbeta.com/2007/03/15-jimdo-y-noovo-servicios-de-creacion-de-sitios-web-de-forma-facil
http://nioumedia.com/?p=158
http://www.europeanfounders.com/

Mint.com – the financial-planning startup with an army of high-profile investors

First off, Mint.com is a neat, well organized and professional web site to put your finances under control. Explained in layman terms Mint helps you find better interest rates on bank accounts, credit cards, and other financial products. But here is the interesting part. The site officially launched in September 18, 2007, after nearly two years of development and significant private beta testing, and in just a few weeks, after being announced winner on TechCrunch40, the site took seriously off. In just 18 days, the company said, they had reached more than $2 billion worth of people’s personal financial accounts, and identified more than $40 million in potential savings for those members. In a moment Mint ended up having a new member every five seconds. It turned out that people really will do anything to save a buck. There were more than 50,000 accounts opened up. And logically the investors jumped in. Total funding in no time reached $5.5M for Mint Software. Institutional investors include Shasta Ventures and First Round Capital and the company’s angel investors are Josh Kopelman, Rob Hayes, Tod Francis, Ron Conway, Mark Goines, Geoff Ralston, Jeff Clavier, Sy Fahimi and the last but not least Ram Shriram. Some of the angels are top executives from  eBay, Intuit, Google, Yahoo, Charles Schwab, Wilson Sonsini, Reuters, Adteractive, and Weblogic/BEA. Under no doubt it is not every day you can see such a jumpstart for a start-up company.  The company’s founder Aaron Patzer has an interesting story to tell about one of his angels – Ram Shriram (an early Google investor). Ram Shriram actually came in about a month after we closed our round. At the time we only had about $200k open in the round. Unlike most investors (who wait a week, talk to their friends, bring you back for multiple meetings), Ram said “Okay, I’m in” before I was done with the presentation. He then explained that he had no upper limit on what he could invest (good problem to have!), but that his accountants lose track if he doesn’t invest at least $500k. So needless to say, we opened the round up a bit.

Today, just a few months later, Mint claims to have already well over 100,000 registered members (accounts) and is now organizing $6 billion in user transactions, and has identified nearly $90 million in savings opportunities. The company says users are telling them, via their rapid adoption and through survey feedback, that Mint.com is enabling them to do more with their money.

Mint.com’s first customer survey, conducted in December, 2007, shows that 87% of respondents feel they better understand their spending after using Mint. And nearly half of them have changed their spending behavior as a result of what they’ve learned.* the most frequent change being eating and drinking at home more often.

More about Mint

Mint is the freshest, most intelligent way for you to manage your money online. Not only is Mint free, it saves you money. While existing personal finance software packages require hours to set up, a passion for accounting (is that possible?) and hours of weekly maintenance, Mint is virtually effortless.

With Mint, you can be fully up and running in less than five minutes. After that, revolutionary, patent pending Mint technology does the rest, with virtually no more work required. It automatically pulls together your bank, credit union and credit card data, and provides up-to-date and amazingly accurate views of your financial life – from the big picture to specific details, in a friendly and intuitive way.

In addition, Mint goes beyond visibility and analysis; providing personalized money-saving and money-making suggestions. Mint provides users an average of $1,000 in savings opportunities during their first session. Plus, Mint is proactive— alerting you when you are overbudget, have a low balance, need to pay a bill, and more.

Mint is safe and secure: we never know your identity and we provide bank level data security.

How Mint works
Mint is a modern, powerful, easy and secure web-based solution for managing your finances. And it’s free. You register anonymously using any valid email address, and then add the log-in information for the online bank, credit union and credit card accounts you want to consolidate in Mint.

Mint connects to over 3,500 US financial institutions. Your account information is updated each night. Mint automatically categorizes all your purchases, showing you how much you spend on gas, groceries, parking, rent, restaurants, DVD rentals and more, with amazing precision. An advanced alerting system highlights any unusual activity, low balances, unwanted fees and charges, and upcoming bills so you’re in constant contact with your money – effortlessly. 


Mint goes way beyond just reporting. Using a patent-pending search algorithm, Mint constantly searches through thousands of offers from hundreds of providers to find the best deals on everything from bank accounts to credit cards; cable, phone and Internet plans, and more. Mint’s suggestions are “unique to you” as they are based on your individual spending patterns. For example, if you have $20,000 in a bank account that’s earning no interest, Mint might recommend a high interest rate savings account from ING or HSBC. Acting on that suggestion would give you an extra $900 in interest income over a year.

Key Benefits
Mint is an entirely new approach to personal financial management. You don’t work for Mint, it works for you. We think you’ll love Mint because it’s:

Easy to use: You’re up and running in under five minutes. And Mint does virtually all the rest.

Comprehensive: Mint provides detailed visibility into virtually all your financial relationships with a single, secure login.

Visual and Analytical: Mint gives you powerful insights into your finances – making it easier to make good financial decisions

Constantly working to find you savings: Mint typically finds users $1,000 in savings opportunities in their first session – minutes after registering. And Mint keeps looking for new ways for you to save every day — continuously comparing your needs to product, service and bank offerings most relevant to you.

Secure: Mint provides bank level data security and industry leading identity protection. Its security and privacy have been validated by VeriSign and TRUSTe.

Always On: You’re automatically notified of upcoming bills, low balances, and any unusual activity in any of your accounts, through one (m)interface.

Anywhere/anytime access: You can get to Mint anywhere, anytime over the web

And it’s Free!

Breakthrough Technology
Aaron’s personal experience led him to create to two breakthrough technologies which make Mint so useful, intuitive and unique:

Patent-pending categorization technology that automatically identifies and organizes purchases from descriptions in the electronic records at banks and credit card companies.  A proprietary search algorithm which finds savings opportunities unique to each user.  Mint’s technology does everything automatically in a way that other online banking applications and personal finance management software can’t. It provides useful information and smart, specific recommendations for saving or making more money based on each user’s individual purchase history. Today, after nearly two years of development and significant private beta testing, Mint is preparing to announce the public beta of Mint.com. The company has put together an experienced executive and engineering team, and has attracted funding from top tier venture capital firms and angel investors.

Security

Security is crucial when someone is dealing with your financial information and it is no wonder there were many debates surrounding Mint in the public space. We have dug information up ourselves and have found many interesting commentaries made by Mint’s CEO, which we enclose below. Below is what Aaron Patzer, Founder & CEO at Mint.com, has to tell about security.

To all those who are concerned over Mint.com security, a few points:
1) You’re anonymous on Mint.com
2) Our security is independently verified
3) Email & text-message alerts help identify fraud immediately… and being proactive is the best measure.

I’ll make a bold statement: You’re safer on Mint then with online banking. On Mint, you’re completely anonymous. We never ask for a name, address, or SSN – just an email. We know about your finances…but not about you. We’re also independently verified by VeriSign, TRUSTe, and several outside agencies.

We also have serious physical security. Our servers are in a secure, unmarked facility. To get in, you need to pass 3 biometric scanners, 4 locked doors, and several guards. We have our own cage so we’re physically separated from all other companies. Cameras monitor our servers and power supplies 24/7. The servers themselves have additional locks. The hard drives are encrypted. It’s like Mission Impossible (except without the electrified floors…maybe one day).

Perhaps more interestingly, 90% of all fraud actually occurs offline, not online (e.g. someone swipes your card at a restaurant or from your mail). Because Mint sends proactive alerts for low-balance or unusually high spending, you’ll know right away. It’s better than logging into 4-5 different banks every day, or waiting 30 days for a paper statement before finding that something went wrong.

By law you have:
– $0 liability for credit card fraud,
– $50 liability for bank fraud (if you notify your bank within two days)

Again, 90% of all fraud starts offline, for example when someone takes your credit card at a restaurant, or digs through your mail. Sadly, a large portion of fraud is actually committed by friends and family members.

Mint.com helps keep you safe by providing email and text-message alerts for:
– Low balances (e.g. someone is draining your account)
– Unusual spending (e.g. someone buys $1000 in electronics in a day)
– Low available credit

If there are any anomalies, Mint.com shows you right away. The alternative is to a) login to every single credit card, checking, and savings account every day to check for fraud, or b) wait 30 days until a paper statement arrives before noticing an issue.

By taking a proactive approach, Mint.com actually helps protect you from the vast majority of fraud – better than just about any website out there.

Concerning whether using Mint.com violates your bank terms & conditions:

Consider that Quicken and Microsoft Money ask you for the exact same credentials as Mint.com, and have been for the past 10 years. MS Money even uses Yodlee to make it’s connection to banks (same as Mint.com, BofA, and Fidelity).

The problem with those tools is they cost $30-$80, sunset their products every 2-3 years to force an upgrade, require an hour to setup, and take an hour a week to maintain.

Mint is like an extension to online banking: pull all your accounts together in one place, finally see where your money goes, get alerts on anything out of whack, and find savings opportunities worth an average of $1,000/user.

Mint never gives your information to third party advertisers. We have a proprietary database of financial offers, interest rates, and communications (phone, tv, internet, wireless) providers. The matching is done in software, anonymously.

Your information never leaves Mint.com. If or when you click through on a savings opportunity, no information is passed except that the click came from Mint.com.

Mint does make a small referral fee from advertisers on some offers. That’s what keeps Mint free. Whether we have a relationship with a provider in no way affects our ranking algorithm – we find users the best interest rate or lowest price regardless.

What this means in the end is Mint only makes money if we can find ways for the user to save money. And we think that’s pretty revolutionary. The only ads you see are ads that make you money…think about how different that is as a business model.

What the company, by that time, seemed not to be dealing with is the offers it makes are often not competitive with or comparable to what users are getting, mint is just having no way to know that!

For example, I have a Capital One card with 1% back. You see my Capital One account with ? for a cash return, and “offer” me a 1% back card (a *savings* of $250/year!). There needs to be a way to user input the specifics of current accounts and products before you offer to “save” me all that dough!

Mint has told by that time they are tackling the issue within the next month or so, they will be able to accurately capture the rewards earned on just about every credit card. Then, it will be able to accurately reflect the fact you are earning 1% back on your Capital One card. We were unable to dig something up from the public web as to whether this issue has been fixed or not.

Some more drawbacks as we have found them around Web are as follows. You can’t import data to Mint in any way other than through your financial institution, meaning that if you’ve got years’ worth of financial data in Quicken, don’t count on importing it to Mint. That said, Mint can load over a year of your most recent financial data (depending on how long your institution provides it) when you sign up.  On a similar note, Mint doesn’t export data—meaning if you decided to ditch Mint for another money management solution, you’re not going to get a CSV file or any other export of your data.

The most notable and practical drawback to Mint came in the form of strangely named, incomplete transaction descriptions (the imported name was strange—the actual transaction name at the originating financial institution was more descriptive). As a result, I ran into problems setting up renaming rules for transactions in Mint. For example, a transaction that read in my checking account (at the actual US Bank web site) as “Web Authorized Payment AT&T” showed up in Mint as “Web Payment” or something along those lines. I set Mint to automatically rename this transaction to AT&T, but then every Web Authorized Payment in my account was renamed AT&T, although some were gas or water and power bills. Similarly, “Purchase with PIN” shows up in the ledger as “With,” which is not terribly helpful. Next to the all-in-one account integration, automation is Mint’s biggest draw—which means these sort of minor issues need worked out before you can set up renaming rules with complete confidence (especially since you can’t currently undo renaming rules). On the flip side, Mint claims to accurately identify and rename 90% of imported transactions without any need for user import, compared to Quicken’s 40% (their numbers).

Management team

Aaron Patzer
Founder and CEO
Aaron is both the visionary and technical mind behind Mint, the first free, automatic and secure way to manage and save money online. He designed Mint to meet his own needs and those of people like him who value the immediacy of the Web, simplicity and their free time. With 10 patents filed or pending, Aaron brings strong innovation skills to Mint. Prior to founding Mint, Aaron was an architect and technical lead for the San Jose division of Nascentric. Before Nascentric, Aaron worked for IBM and founded two web development and online marketing companies: PWeb and International. Aaron holds an MSEE from Princeton University and a BS in computer science, computer engineering, and electrical engineering from Duke University.

Aaron’s Financial Personality? Über-Frugal but lusting in his heart for expensive cars.

Donna Wells
Chief Marketing Officer
Donna brings over twenty years’ experience in strategic management and marketing to the Mint team, with specific expertise in the financial services industry and online demand generation. She led client acquisition/retention, brand-building and product development for organizations ranging from start-ups to global brands – including Expedia, myCFO, Intuit, Charles Schwab and American Express. Prior to Mint, Donna was Senior Vice President of Marketing at Expedia, where she was responsible for strategic direction of the company’s brand, advertising, direct marketing, customer and partner marketing and market research. At Intuit, as Vice President of Corporate Marketing and acting CMO, she led the company’s corporate marketing functions and general marketing strategy. She also served as Vice President of Intuit’s Small Business and Personal Finance division, responsible for direct marketing, channel marketing and market research for the Quicken, QuickBooks and Small Business Services businesses. Donna joined Intuit from myCFO, Inc., where she was Chief Marketing Officer. She previously held senior positions at Charles Schwab, where she led marketing for segments representing 70% of all Schwab client households, and American Express, where she launched the Gold Rewards and Platinum Corporate Cards. Donna holds a MBA from Stanford University’s Graduate School of Business and a BS in Economics from the Wharton School at the University of Pennsylvania. She is a past Board member of the Financial Women’s Association of San Francisco and the Marketing 50.

Donna’s spending personality: Unremarkable, except in her weakness for luxury hotels.

David K Michaels
VP Engineering
David has over 10 years experience in building secure, distributed, fault-tolerant systems. David was most recently leading the development of server products for PGP, where he helped design, build and ship three major versions of the company’s  flagship product: PGP Universal. Prior to PGP, he built a high-volume financial information product targeting online retail equity traders. David was on the server team at NetDynamics (acquired by Sun Microsystems), implementing core features for security, scalability, fault-tolerance, distributed load balancing, and performance. He has also worked at GeoCities, where he developed the company’s first capability to insert advertising banners on its pages. He has held several positions with Lawrence Livermore National Laboratory working on distributed systems and the WWW. David holds a M.S. in Computer Science with honors from Stanford University and a B.S. in Computer and Information Science from the New Jersey Institute of Technology.

David’s Financial Personality? Conservative and analytic in all spending categories Dining Out. Major Foodie.

Aaron Forth
VP Product
Aaron brings over ten years’ of product development and product management experience to Mint. Prior to joining Mint, Aaron held several leadership positions at eBay and Half.com (acquired by eBay Inc.). Most recently, as Director of Advertising, Aaron was responsible for product strategy, design and product development. Aaron has a background in multivariate testing used to drive analytically-based decisions around product design, improved user experience and strategic partnerships. Prior to working in advertising, Aaron managed internet marketing and product management teams, focused on search engine marketing, search engine optimization and affiliate marketing. Aaron’s career in software was established at Kana Communications, Inc., a CRM software start-up. He holds a bachelor’s degree in Earth Sciences from University of California, Berkeley.

Aaron’s spending personality: Frugal at heart. Focused on enjoying life in practice.

Anton Commissaris
VP Business Development
Anton is responsible for Mint’s business strategy, revenue and partner development. Anton brings to Mint over 15 years of experience in the software and Internet sectors spanning legal, operations, marketing and business development roles. Prior to Mint, Anton was Vice President of Business Development at Right Hemisphere, the leader in visual product communications and collaboration. Prior to Right Hemisphere, Anton was Director of Business Development at Spotlife (Logitech) a pioneer in Web consumer video solutions. Anton began his career as an attorney working in London and Paris, and then in Palo Alto, California at Wilson Sonsini Goodrich & Rosati, the leading law firm for emerging growth high technology companies. He holds law degrees from the University of Auckland and the University of Montpellier, France.

Anton’s Financial Personality? The ultimate deal-seeker and most passionate negotiator. We love having him run Biz Dev.

Mint has been named Best of Show at the 2007 Financial Innovations conference. Mint has also been chosen as the best presenting company at TechCrunch40 and has won a $50,000 cash award. In December 28, 2007 Mint.com has also won the 2008 PC World 25 Most Innovative Products Award.

Competitors and similar companies include BillMonk, Expensr, Wesabe, Zecco, Buxfer, SpendView, Geezeo, sMoneyBox, FreeAgentCentral, Covestor.com, Yodlee, wclipperz.com and passpack.com, among others. Of course, Intuit is the major player in the space.

More

http://www.mint.com
http://www.mint.com/blog
http://www.mint.com/press/downloads/release_20080108.pdf
http://www.mint.com/press/downloads/release_20071228.pdf
http://www.techcrunch.com/2007/10/16/mints-47-million-a-round/
http://www.crunchbase.com/company/mint
http://www.techcrunch.com/2007/09/18/mint-wins-techcrunch40-50000-award/
http://www.techcrunch.com/2007/11/14/billeo-secures-7-million-in-financing/
http://www.techcrunch.com/2007/10/07/mint-rakes-it-in/
http://www.netbanker.com/2007/10/mint_mortgagebot_and_prosper_w.html
http://www.informationweek.com/windows/showArticle.jhtml?articleID=178600217
http://www.crunchbase.com/person/aaron-patzer
http://www.linkedin.com/in/apatzer
http://twitter.com/apatzer
http://digg.com/users/apatzer
http://consumerist.com/commenter/apatzer/
http://www.spock.com/Aaron-Patzer-NBd4i1sF
http://www.techcrunch.com/2007/09/18/techcrunch40-session-5-productivity-web-apps/
http://blog.mint.com/blog/personal-finance-interview/personal-finance-interview-with-aaron-patzer-of-mymintcom/
http://blog.mint.com/blog/personal-finance-interview/mint-team-spotlight-sid-bhatt/
http://www.finovate.com/
http://r3fresh.com/2007/10/09/how-secure-is-mintcom/
http://www.nytimes.com/2007/11/22/fashion/22CYBER.html?ex=1353819600&en=6199204353c38df5&ei=5124&partner=permalink&exprod=permalink
http://venturebeat.com/2007/09/18/mint-the-easiest-way-to-manage-your-personal-finances/
http://lifehacker.com/software/screenshot-tour/is-mint-ready-for-your-money-312083.php
http://consumerist.com/consumer/budgets/mintcom-+-a-new-free-personal-finance-management-site-301172.php
http://en.wikipedia.org/wiki/Ram_Shriram
http://www.pcworld.com/article/id,140663-c,technology/article.html