Kind venture. Part 1.
Fresh transactions of the venture industry and news of the innovative companies, and also comments of experts and partners of the largest venture funds in weekly transfer " the Kind venture ".
amp-hr.: today we learn, why technological giants show interest to medical technologies, we will discuss last novelties of the game industry and we learn, how evangelists butstreppinga have involved a round in $100 million Here, with evangelists and I suggest to begin. GitHub, one of the most active ecclesiasts butstreppinga for startups, has involved $100 million venture money from Andreessen Horowitz.
GitHub - service for a hosting of projects and their joint stage-by-stage working out. It is based in 2008 in California by Volume Preston - Verner, Chris Vanstrasom and PJ Hiettom. By means of GitHub it is possible to divide working out process into problems, to distribute from between various executors and to supervise iterations .
Amp-hr. : It is necessary to tell that in GitHub works about hundred persons. It turns out that children have involved on one million where - that on everyone and have forced to doubt thereby those young businessmen who so strongly believed in force and necessity butstreppinga.
D. R: I think, it is necessary to remind all - taki that such butstrepping. It is a way of development of the company when you do not involve external investments and all you do exclusively on the resources and money which you receive from clients that is not so typical for the Silicon valley where almost all develops on investment money.
Amp-hr.: really, it is considered to be that it is a lot of money at the very beginning of a way for a startup can be simply pernicious and bury this project in the beginning, in many respects at the expense of strong influence of the generous investor.
D. R: I think, it is difficult to say that GitHub right at the beginning. All - taki they already work five years, for them about 1,7 million clients which develop on service of more three millions software projects.
Amp-hr.: it is necessary to notice that for Andreessen Horowitz it too a novelty. They invest for the first time such considerable sum on round A.
D. R: Considering that they have collected recently new fund the third fund in the size of $1,5 mlrd, it, in general, an impressive part of the portfolio. I think that we will try to call Andrey Kazakovu from Foresight Ventures. Andrey the programmer in the past, well understands both in IT, and investments. We will try to learn that he thinks concerning this transaction.
at us on air Andrey Kazakov - the operating partner of fund Foresight Ventures. Andrey, I greet! At us questions under absolutely recent transaction Andreessen Horowitz which invested $100 million in company GitHub. And these 100 million are a first round of financing. How you think, how much it is unusual for Andreessen Horowitz, such transaction?
And. K: Andreessen Horowitz invests, probably, in leaders of each market. And concerning GitHub, they have strong domain examinations which will help with company development. Ben Horovits and Mark Andressen, they have made such companies as Loud Cloud, Opsware. And, basically, it is such strong enough enterprise the companies, they well understand, how this market works. And the following branch of development GitHub is just sales with big enterprise the company.
D. R: And here from the point of view of the company? GitHub all time positioned itself as such butstrepping. We see and we know other similar companies, type 37signals. It simply withdrawal aside, or not a withdrawal, and development aside enterprise, that is, not " predacha " ideals butstreppinga?
And. K: As it not seems to me, by own strength they simply can reach those results which can reach with Andreessen Horowitz. Just this command very well understands their target consumer in the future. Thus at them model aggressive enough. If to look at the user base, there where - that 1,7 million users, thus they have closed fanding according to 750 million Clearly that a valley, a valley such enough bubblish. But, all the same, it is necessary to support these pluses with something.
D. R: Last question concerning the further destiny GitHub. How you think, what can be an exit in this history, in particular, for Andreessen Horowitz?
And. K: for example, it is possible to sell this all IBM or to any such player. Or the largest, because they already enough big.
D. R: Clearly, that is, or IPO, or any clear big player.
And. K: Yes. Though, it seems to me, the more clear big player. Because it is more pleasant to do IPO for the companies which on the business simply are understood by the consumer. GitHub, probably, hard. To people to understand easier that such Facebook, rather than to understand that such GitHub.
D. R: Clearly. Andrey, thanks big. I will remind, we on air had an operating partner of fund Foresight Ventures Andrey Kazakov.
D. R: Means, I think, founders GitHub with pleasure look ahead, and sale IBM or to someone similar will be a good variant of succession of events both for founders, and for investors. But the founder and CEO companies GitHub of Volume of Preston - Verner stirs not only exit prospect, but also service of existing clients, and this great number of people which do projects in area open source free noncommercial software projects. And it is important enough, who was the investor in company GitHub because, on hearings, it is a lot of from venture funds of the Silicon valley would like to be enclosed in this company.
Amp-hr.: namely children from GitHub have seen the guy in Mark Andressene, having read its article under the name " Why software is eating the world? " (" Why software technologies devour the world? ") .
D. R: I Will remind that Mark Andressen is a person who, actually, has thought up Netscape, was the founder and the general director of this company. And, probably, here it is possible to mention and fund Andreessen Horowitz philosophy. In the blog Ben Horovits writes that they try to invest only in those companies which cope founders. That is, not hired general directors, namely those who has made the company from zero and conducts it to any such scale and serious future. They result variety of examples from Steve Jobs to any other founders of the companies, which, in their opinion, much more successfully, than the hired general director.
Amp-hr.: I hope that $100 million for GitHub does not become such discouraging factor for young businessmen. We see more many the new companies lifted on own money.
Amp-hr.: Ouya is not the indecent veiled phrase, and the name of the new game console which has received financing through AngelList. Ouya will work on Android. And as a matter of fact it is the games console which can be connected to the TV, it will cost only $99. Besides, all games for Ouya will be absolutely free. It turns out that console Ouya is made to be cracked. On assurances of the developers, everyone at purchase can receive CD key for working out and possibility to change internal stuffing Ouya both program, and an equipment room. But all it sounds, of course, zahvatyvajushche and it is interesting. However there is one question: where money? How to earn on the console where all games will be free? Why business - angels and venture investors have become interested in this history?
D. R: On a broader scale, I too have questions because, if to remember history with Xbox from Microsoft on the first Xbox Microsoft has lost $4 billion. In the same place then only on the second version, on Xbox 360, they have started to earn money. I think, those several millions dollars which were collected by developers Ouya through AngelList, in general, obviously will not suffice on making from this a high-grade mass product.
Amp-hr.: but product Ouya can turn out good as good enough designers are involved in working out Ouya. Among them Iv Behar designer OLPC - manufacturing companies of laptops for children from developing countries; both Ed Fr the former worker of game division Microsoft.
D. R: Good experts, it always, of course, plus in any razrabotcheskoj stories. It is necessary to remind simply that project One Laptop Per Child, that is leptop for each child, it, in general so has not flied up as was supposed. All - taki 200 - dollar leptop did not become the best seller in developing countries. Question in, a leah will begin Ouya any new trend in games consoles. Here again we will try to receive comments at representatives of company Microsoft.
With us on communication Andrey Krjuchkov - the head of a direction of game products Microsoft Russia. Andrey, tell, please, and what models of realisation on a broader scale can be used in game networks of type Xbox LIVE if games on a broader scale are free more often for downloading.
And. K: There is a certain quantity of the games, which free for players. It not only kasaemo prefixes Xbox 360, but also on a broader scale are such trend which is called Free to Play game, that is game, free for actually game. Such most known game is game Microsoft Flight is such simulator of flights of planes. Accordingly, you it can download free of charge, to start to fly by the plane free of charge but if you want to buy any additional plane, you should pay any money if you want to buy an additional location, a map, any new island on which you can sit down, or any airdrome where you will pilot are already costs money. Accordingly, in Xbox LIVE there are such games where you can take free some levels, and additional levels you buy.
And. R: And what trends now you see in branch of games consoles?
And. K: I think that the market three for today. The same as at you three screens with which you work - the screen of the mobile device, phone; it is the computer screen with which you work, the laptop; it is the screen of the TV which at you costs at home. You can play the big abrupt game the big TV, further to take with yourselves small addition on a mobile phone and by means of the computer to check the status of the game.
D. R: With us on communication there was Andrey Krjuchkov - the head of a game direction of company Microsoft Russia. It was not possible to us, truth to learn a sum of transaction on financing of prefix Ouya, but last week AngelList has reported the record transaction on the size - $7,9 million which has lifted a startup under name Rally. Give, we will remind our investigators that such AngelList.
AngelList - the American Internet - the service based in 2010 In bulk by Ravikantom and Babakom Nivi. Service represents a social network for businessmen and investors. A main objective - adjustment of communications between recently created projects and business - angels. In 2011 on AngelList it was registered more than 500 projects and 2,5 thousand investors. The database and program code of service have been opened for foreign developers. The site also has entered into the agreement on partnership with known British business - an incubator.
Amp-hr.: thus $4,4 million have been lifted through resource AngelList, using technology kraudfandinga when a considerable quantity of investors can be enclosed in the project, frequently investing all on $25.
D. R: Thus it is necessary to notice that Rally is the startup, which itself is engaged kraudfandingom. In this case it turns out such kraudfanding in a square. However, unlike AngelList, Rally is engaged kraudfandingom in the field of public and charitable initiatives. In particular the project connected, for example, with selective company Mitta Romni - the candidate for US presidents, or the fellow from Kosta - Riki who tries to raise to itself of money that studies at Kornellsky university.
Amp-hr.: It is important that such great sum of $7,9 million Rally, most likely, never it would be possible to involve, if not two basic investors who were charged actually for this project.
D. R: Certainly, when one of your investors Read Hoffman founder LinkedIn, is probability, as set of small private investors will come to you and will finance your project. But I think, here all - taki the scale and precedent is important. Speaking about attraction of a similar round, startup founders say that they as though have passed through such small IPO. Because, actually, they have told about themselves to thousand and thousand investors, many of which, eventually, have put up in them money and many attributes IPO - such, as a certain marketing campaign too here in an explicit form were present.
Amp-hr.: founder Rally worked as Tom Seres without prodyhu throughout eight days, has spent 70 meetings and has chosen 18 investors from every corner of the globe.
D. R: Making comments on this transaction, Read Hoffman has told that the world has already changed, and have passed those times when enough to tell about the startup to a small group of investors in the Silicon valley. That it, in spite of the fact that is both the admirer and the participant of the traditional venture scheme, quite greets such here kraudfandingovyj the approach to financing of the startup.
Amp-hr.: in the third part of the program I suggest to arrange a blitz from three news. The first - Intel has bought the Israeli company IDesia Biometrics.
IDesia Biometrics - the Israeli company created in 2004 by Denielom Lanzhe and Josefom by the Gross. As of 2012 in IDesia 14 persons work. Technologies of the company allow to distinguish the biodynamic signature of the person the individual indicator based on electric impulses of heart. On it it is possible to make faultless identification of the person, and also to measure a work status kardiosistemy. Technology IDesia Biometrics can be used and for the medical purposes, and for security systems on a level with technologies on recognition of fingerprints and eye retinas.
Amp-hr.: the exact sum of transaction is not disclosed, however in last rounds of financing IDesia has had time to involve already 7 million venture investments from such funds, as Partec International and Aladdin Knowledge.
D. R: I Will risk to assume that a sum of transaction, on an extreme measure, several times more than the sum of the involved investments.
Amp-hr.: on a broader scale it is interesting, why founders IDesia could not lift the necessary sums in the local market in Israel.
D. R: Actually, some Russian funds, for example, as Bright Capital, go on the Israeli market, saying to that there really lack of the venture capital, and they with pleasure want to use those possibilities which to them are given by the Israeli startup.
Amp-hr.: I think that not only shortage of money in the local market has pushed company IDesia to attraction of the foreign investor. Has put, probably, in technology.
D. R: Intel, on a broader scale - that, the global investor. In Israel at Intel it is a lot of and factories on manufacture of microchips, and, naturally, investment any people there are. A question still that IDesia has changed the focus. They at first tried to make a product which would be guided by a state structure and on airports any, maybe, or the questions connected with security on recognition of thy unique signal of heart. But Have understood, probably, that it too long and difficultly, and were reoriented on the consumer market. And with it just to them for certain can help Intel, which itself it is strongly enough reoriented from the company in the field of B2B the manufacturer of chips, in the company focused on the consumer.
Amp-hr.: really, Intel recently shows heightened interest to medical technologies.
D. R: the Example with ultrabeeches when Intel actively advertises a new category of a consumer product - powerful small portable laptops. Thus without being their direct manufacturer.
Amp-hr.: now I suggest to talk about technologies of payments on the Internet. The startup under name Stripe has involved $20 million in round B from semiinvestors, among which General Catalyst, Sequoia, Peter Thiel and other dear investors.
D. R: It is necessary to note, as in the previous round which too has made $20 million, other founders PayPal Max Levchin and Elon Mask participated also.
Amp-hr.: give it is explainable, than startup Stripe is engaged. Stripe does very simple interface for reception of payments in online. Clients Stripe notice that service is very simple and easy in use.
D. R: As I understand, Stripe allows foreign sites to be integrated very easily with payment systems and to take money for any services and products on the Internet. Probably, important characteristic Stripe is also that fact that three of five former founders of company PayPal became investors of this service in spite of the fact that it, in general - that, is direct competitor PayPal. Probably, service is really so simple and good that we can expect from it a certain revolution in online - payments on the Internet and that it becomes such driver and, maybe, the leader of a new coil of growth the Internet - service.
Amp-hr.: on a broader scale it is remarkable that in each program we in one way or another mention about representatives so-called " PayPal - mafias " among which Max Levchin, Elon Mask and Peter Til.
D. R: Really, they, seemingly, almost the most active investors on the Internet. And thus excentric enough choose just those things which as fast as possible change the Internet - the industry.
Amp-hr.: this week is rich on purchases. So on Monday in a blog of startup GoInstant it has been declared that the company will be bought by leader SaaS - market Salesforce. According to site AllThingsD, the sum of transaction has made $76 million that is not too bad for the company based in 2010.
D. R: As you see that GoInstant is the very fresh company based only in 2010, and, in general - that, offering enough simple service. As the product, or company service, is simple enough. It is so-called kobrauzing, that is possibility for the people who are in different places, to be in the same window of the browser and in common to do the same operations. For example, to search for something on the Internet or to click on the same buttons or links.
Amp-hr.: and what for Salesforce has paid $76 million to children who are able kobrauzit?
D. R: Salesforce almost all products offers through the browser is leader SaaS - the market. Therefore, probably, to explain to the confused clients about what button to press, what menu to choose, and any simple service allowing people is necessary to them, working in support Salesforce to work with the clients more effectively. Apparently, this week was rich on transactions worldwide, but not in Russia. We hope that to the following program we learn about new venture transactions in the Russian market.
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