Why I invested in Jackson Square Group

2010-07-19_1017I’ve talked about my investment in Jackson Square Group previously, but since the company has just closed the round of funding, I wanted to highlight why I think Jackson Square Group is going places.

First, a little context:  In March, I invested in Jackson Square Group through Voodoo Ventures and took a seat on the board of directors.  Jackson Square Group just closed its seed financing round on July 15.

I invested in Jackson Square Group because:

  • Patrick Comer, the CEO is as driven a founder as I’ve ever met.  He has extensive background in the market research industry and as an entrepreneur.  Industry experience and multiple startup experiences are a winning combination.
  • The team is top-notch. It’s been eye-opening to me to see the talent that New Orleans has to offer and the energy that this team has brought to the company (of course this is hindsight, b/c I was already committed, but its a good start).
  • The technology is disruptive. This is a bit of a cliche, if your technology isn’t disruptive that might be a problem.  But the Federated Sample platform that Jackson Square has launched increases quality & deliver-ability, automates transactions, and provides many-to-many connections in a industry dominated by one-to-one manual relationships.
  • The market is rapidly evolving. The world of market research surveys adapts as new data collection methodologies come online: door-to-door begat telephone begat email lists begat social networks. Jackson Square’s Federated Sample technology is well-positioned to to move the industry to its next phase.
  • Data. Enough said.

Here is some recent press from Time Picayune, Research Magazine, & Market Research Online.

I’m very pleased to be an investor in Jackson Square Group.  If you are interested in the company, please contact Austin Lavin. As always, if you have questions for me, hit me up.

An Open Letter to David Cohen of TechStars

Dear David -

Last night we had the pleasure of attending the TechStars demo day in Boston where we saw 10 great companies present to 250 mentors, investors, and members of the tech community.  Wow, what an impressive evening and showcase for TechStars.

I’d like to respectively submit for your consideration New Orleans as the next city for TechStars.

You and I have had several conversations over the last year, facilitated by Andrew Hyde, about my desire to launch a mentorship-based seed fund in New Orleans.  We’ve done our homework: studied the models, attended your session at SXSW, and talked to mentors, entrepreneurs and investors all involved with TechStars. You said to me last night “New Orleans is on my radar…” to which I respond: I’m making it my mission to do what it takes to attract TechStars to launch in New Orleans in January of 2011.

I believe we can demonstrate to you that the tech startup community in New Orleans and Louisiana is activated and it would be a winning move for you to launch your Winter session in New Orleans.  Here is what I plan to demonstrate:

  • we have a roster of local and national mentors ready to commit
  • we have sources of capital that will get behind a TechStars New Orleans
  • we have an startup ecosystem of intelligent, passionate, creative, driven entrepreneurs who will provide the core of and be impacted greatly by TechStars
  • we have a favorable climate for tech startups with the 35% digital media incentive which makes Louisiana one of the best places for software and Internet companies in the country
  • we have a collaborative workspace, Launch Pad, ready to house TechStars companies
  • we have activated local leadership lined up to get behind TechStars and make it a success

I have been passionate about the need for a mentorship-based seed fund in New Orleans for the last two years, and I fully believe that the stars are aligned to make it a reality right now with TechStars.  We are committed to making our case to you, learning what we need to know, and answering your questions to make as convincing an argument as possible.

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Introducing Hu.la – our new URL shortener

I am excited to introduce Voodoo’s latest project, Hu.la, a URL shortener.  If you’re reading this post, you probably got here via a tweet or Facebook post via a short link.  While largely a commodity now, we decided to get in on the action too.  We secured this domain name earlier this year, and decided to launch our own URL shortner.  We’ve been using it internally for a couple months and now are rolling it out publicly so you can too.

One of the fun things about having the great engineering talent at Flatsourcing is being able to pursue projects like this, and occasionally they require a few hacks.  So, we want to share the story of how we built Hu.la:

  • bit.ly is the leader in the URL shortner space and we applied to and were accepted in the beta of their bitly.pro program.
  • The bitly.pro service powers New York Times, Amazon and TechCrunch’s own URL shorterns too.  You can sign up here.
  • In order to get a homepage that allows others to access the service, we took a lesson from the guys who created 511cc.org using bitly.pro.
  • And voila: we’ve launched Hu.la – take your links for a spin today.

Any questions or suggestions, please let us know.  We’d love your feedback and for you to make it your default URL shortening service.

Capital Access for Startups in New Orleans

This post has been coming together for a while, and I’m excited that I am finally getting a chance to share the coming capital options for startups in NOLA.  My feeling for a while has been that the seed capital gap and lack of VC in general in Louisiana has been one of the biggest challenges facing startups.  The Receivables Exchange had to go raise its capital outside of Louisiana.

As far as local angel funding, here’s what I wrote to Ben Rosen after his visit to New Orleans last week during Launch Fest:

The next step is to develop a strong, active, angel community to fund these companies, and keep them in New Orleans, rather than needing to go to Austin, NY, Boulder or the Valley for capital & talent.

A big part of our mission at Launch Pad is getting the investment community familiar and comfortable with these types of investments, which may be non-traditional for the region where wealth has traditionally been generated through oil and gas and the port.

It appears that we are on the verge of a tidal shift in the availability of capital for startups locally (fingers crossed).  Here are some of the things that are happening now and on the horizon.

  • Idea Village – open – an eight year old non-profit that provides grant funding & educational curriculum. The 2010 class has just completed, and the application process for 2011 will be open towards the end of this summer.
  • Leap Frog Ventures – projected launch Q3 2010 – a non-profit evergreen fund that Leslie Jacobs, Rick Rees, and Ben Allen are putting together in conjunction with GNO Inc.  The fund is based on the JumpStart program in Cleveland OH. Projected to raise $5-8 million from public and private sources and make seed investments of $250,000 – $500,000.
  • GNO, Inc Opportunity Fund – projected launch Q3 2010 – this is a fund that will package CDFI funds from local banks into an evergreen investment fund that will make low interest convertible debt loans to local startups.  I am unsure of projected raise, the average size of loans is likely to be around $250,000.
  • South Coast Angels – open, currently accepting pitches – this is a local angel fund managed by Clayton White and Choose Taurman.  This is a member managed angel fund, so it is different than an angel network like the events we do at Launch Pad.  My understanding is that they have $2-3 million committed and they are currently seeking investment opportunities of $250,000 to $500,000. They are using AngelSoft software to manage the application process and you can find out about it here.
  • National VC Activity – starting – one of the best opportunities I see is to build strong ties to the national VC community, particularly NY, Boston & Austin.  The Kraft Group investment in NakedPizza led to Steve Schlafman’s participation in Launch Fest.  In addition, David Safaii of Windspeed Ventures came to Launch Fest and is getting connected with the local community.  Nurturing and strengthening these ties is critical.
  • Barrett Vernon Montgomery LLC – open - Disclosure: Investor in Launch Pad.  Currently managing two funds.  Funds under management: $30 million. General size of investments are seed investments of $100,000 to $300,000 with follow on capital of up to $3 million.
  • Long Branch Ventures – open – Michelle Oaks has been an active angel investor in the New Orleans community over the last two years.  Long Branch invests in early stage companies with an investment criteria that includes the company be based in Orleans Parish.
  • Trumpet Ventures – open – Spun off from Trumpet Group in 2009, Trumpet Ventures invests financially and also by providing services in exchange for equity.
  • Launch Pad Angel Network – open – We host quarterly angel pitch events at Launch Pad at the IP.  We hosted the last one during Launch Fest where we had ten 5 minute pitches by entrepreneurs.  70% of the startups were invited to contact an investor following the pitches.  Range of capital has been early stage prototype to seed capital.
  • Voodoo Ventures – open – Voodoo recently made an investment in Jackson Square Group.  I am open to other strategic investment opportunities.

I am particularly excited about the new funding sources coming online listed above.  While I still believe that we’d benefit greatly from a seed accelerator program, and Launch Pad has some things underway to launch one, I think the capital is going to be flowing locally in the next 6 months to a year looking for deals.  If you have a startup idea, now is the time to get your business plan, or better yet, prototype together.

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The importance of co-founders

Yesterday I was reflecting on the inclusion of Launch Pad in this NYTimes article.

Meanwhile, LaunchPad — a k a  LaunchPadNola — which was started by Chris Schultz, offers co-working space and business classes in New Orleans. It has 43 tenants today.

As much as it’s great to be recognized, it does piss me off that it says I started Launch Pad.  I didn’t.  I co-founded it. With Barre Tanguis and Will Donaldson.

One of the most important lessons I’ve learned as an entrepreneur is not to go it alone.  It’s too lonely of a game to try to start a company yourself. And there is evidence that shows that having co-founders is much more likely to lead to business success. As a serial entrepreneur, I’ve embraced the fact that I like to have different things going on, its what gets me fired up, and I’ve been able to pull my passions together under Voodoo Ventures.  I very deliberately have made a decision that unless I have a strong partner or co-founder on a project, I won’t do it.  It is the only way I scale.

I’m proud of my partnerships and acknowledge the fact that my endeavors wouldn’t be where they are without them.

  • Flatsourcing – Oleg Kurnosov, Timur Vafin, Alex Mamaev, Peter Bodenheimer
  • Launch Pad – Barre Tanguis & Will Donaldson
  • TribeCon – Tiffany Starnes
  • Even my recent investment in Jackson Square Group is reflective of this.  Patrick Comer brought me on as a co-founder, alongside his brother Walton Comer.

It took me a while to get to this point.  Having a partner can be hard.  One of the most serious strains on a personal relationship I’ve ever had came when I faced challenges with my partner  and best friend in the first company I ever started.

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