Philly Tech People News 1/4/2015








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Maffei to stay on as CEO of Liberty Media, Liberty Interactive (Denver Business Journal)
Maffei's responsibilities include QVC Group.

Fascinating People I Met in 2014 (Bill McDermott/SAP Community Network)


Kristy Neckowicz Appointed As President of InVizion LLC (Press Release)

Shintaro Kaido has been appointed Director, Drexel Ventures at Drexel University. He previously launched a startup accelerator in Tulsa and Oklahoma City, i2E Immersion Accelerator, where he was accountable for accelerator and Series A deals totaling $2.44M as principal.

Philadelphia medical device firm continues to rebuild management ranks with new CFO (Philadelphia Business Journal)




At Harvard, Wharton, Columbia, MBA startup fever takes hold (Fortune)
Not an especially new trend (certainly at Wharton).

Did SAP Overpay For Concur? (Chirag Mehta/Cloud Computing)john

10 SAP HANA Predictions for 2015 (John Appleby/SAP HANA Blog)


Scaling-up by Racing Downhill (Todd Gibby/Wharton Entrepreneurship Bog)
Todd Gibby is CEO of Philadelphia-based BoardEffect.



Navy Yard-based Cloudnexa, focused on managing migrations to Amazon Web Services, raises $4.37 million


Tom Paine



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Philadelphia (Navy Yard)-based Cloudnexa (not be confused with Cloudamize, another Philly company I recently covered) has raised $4.37 million, according to a SEC Form D filed on New Years Eve day.

It had previously raised a $2.4 million Series A from Mid-Atlantic Angel Group, Ben Franklin Technology Partners of Southeastern Pennsylvania, Milestone Venture Partners and Gabriel Investments in late 2013, according to CrunchBase.

Cloudnexa is a managed services provider and authorized reseller for Amazon Web Servises.

Cloudnexa was founded in 2012 by CEO Joel Davne, who formally headed an earlier cloud services company I followed, Newtown-based Freedom OSS, which was doing some pioneering work in the AWS environment. A Russian company, Luxoft, acquired Freedom OSS' assets in 2013. Cloudnexa's CFO, Bill Testa, help take Heartland Payment Systems and Orchid BioSciences public.

Cloudnexa focuses on "managed services excellence and migration to AWS so that we can carefully, securely and expertly migrate your applications to cloud environments," its website says. In September, Cloudnexa introduced a comprehensive managed cloud offering with Sumo Logic, Trend Micro and AppDynamics.

Cloudnexa has 13 employees on LinkedIn.


Links 1/2/2015: Insurance software startup Adminovate to expand, add 31 jobs in Phiily: Slow going for York rockers' fiber-optic business



5 Tech Icons We Said Goodbye To In 2014 (ReadWrite)

Yahoo could be interested in scooping up a cable network (Fortune)

Adminovate to expand site, add 81 jobs in Philadelphia (Pennsylvania Business Daily)


Slow going for York rockers' fiber-optic business (Philadelphia Inquirer)

PTC chief executive discusses drivers behind ‘Internet of Things’ phenomenon (Boston Globe: Beta Boston)


The Reckoning for old IT service and outsourcing Firms (Brian Sommer/Diginomica)

Enterprise software in 2015: Bubbles, Box and Kim Jong-un (Fortune)

Here’s another look at Apple’s own iBeacon (Gigaom)

Comcast Raising Cable Modem Rental Fees (Multichannel)

FCC To Vote on Net Neutrality in February (Multichannel News)


Philly Tech News' best articles of 2014


Tom Paine



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12/29: Horsham-based chip equipment maker SSEC acquired by Veeco Instruments for $150 million

12/23: Center City-based Cloudamize, helping customers manage cloud spending, ramps for growth

12/16: Veeva Systems, coming off strong quarter, announces several growth initiatives

12/10: Where in the world is Kenexa founder Rudy Karsan? In Philadelphia, investing in startups

11/30: LiquidHub, on acquisition path, aims to get larger but keep focus

11/24: First Round Capital. first institutional investor in Uber, has yet to comment on controversy

11/17: Keystone NAP's new Bucks County modular data center planned for early 2015 opening

11/13: Edison Partners returns fire at out-of-town critics at IMPACT '14, but tends to find most of its own deals elsewhere

10/24: Bill McDermott, Digital Health highlight IMPACT 2014 Capital Conference

10/19: Neat, after period of organizational changes, seeks broader market; Partners with HP on product
Update 11/5: Announces new CEO


10/11: Philadelphia Salesforce.com ecosystem on display at Dreamforce '14

9/29: Villanova-based RoundCorner partners with Salesforce.com Foundation for non-profit, higher ed SaaS

9/23: Sage Group to acquire Mt Laurel-based PayChoice for $158 million

9/6: Quintiq CEO Allis discusses his company's pending acquisition by Dassault Systemes

9/5: Pet360 being acquired by PetSmart for $130 million, plus potential $30 million earnout

8/9: NJ Serial Entrepreneur, Wharton Grad Marc Lore Snags $55 Million to Build E-Commerce Platform Jet

8/5: Cerner acquires Malvern-based Siemens Health Services for $1.3 billion

7/13: Philadelphia Technology Park acquired by St. Louis firm

7/5: Penn Mezzanine, TL Ventures and their ties to Safeguard Scientifics

6/2: Allentown's Trifecta Technologies sells IBM ecommerce practice to focus on fast-growing Salesforce.com business

5/18: Nebraska firm acquires Plymouth Meeting-based Health Advocate for about $265 million

5/7: Garfield Group rebrands and repositions

5/4: Boomi co-founder Rick Nucci launching new venture, Guru

3/20: SevOne to expand to larger Philly office

3/18: Phorum 2014, to be held April 10 during Philly Tech Week, has powerful list of headliners

3/6: LLR Partners closes 4th fund at $950 million

2/23: Convergence, consolidation in US, Global broadband markets

2/21: RJMetrics' growth seen as symbol of Philly entrepreneurial progress

2/15: Hoopla Software raises $8 million led by Trinity Ventures; moving development team to larger Malvern-area offices

2/13: Comcast's objectives in acquiring Time Warner Cable

2/9: Oregon firm acquires King of Prussia-based Maxwell Systems from LLR Partners; some job losses expected

1/13: Charter makes opening bid of more than $61 billion for Time Warner Cable; will (& when will) Comcast get involved?


Dow Jones: LLR exits majority stake in VectorLearning to Providence Equity, but reinvests in minority stake


Tom Paine



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Philadelphia's LLR Partners exited from its majority stake in online education company VectorLearning.com Inc., selling it to PE giant Providence Equity Partners, Dow Jones' LBO Wire reported late last week (subscription required). No financial terms were disclosed.

Scott Perricelli / LLR website
But the firm is reinvesting a portion of its equity in a minority stake in the newly recapitalized company, Dow Jones says, citing LLR partner Scott Perricelli. LLR followed a similar strategy in 2013, when it sold a majority of its stake in Care2Learn, one of two original units of VectorLearning, to Relias Learning LLC. It rolled its remaining equity stake into Relias. In November of this year,  Bertelsmann SE agreed to acquire Relias for an amount Dow Jones reported was in the "hundreds of millions" of dollars.

VectorLearning currently operates RedVector and Target Solutions, which provides online training for firefighters and emergency medical services providers.

LLR also owns stakes in three other education companies: Orbis Education (training and education services in nursing), Brightside Academy (urban operator of early child-care education centers) and Avenues: The World School (a private school operator).

LLR first invested $24 million in VectorLearning in 2011 through its LLR Equity Partners III LP fund. VectorLearning will continue looking for new vertical opportunities in online professional training, Dow Jones quotes Perricelli as saying.

In addition to VectorLearning and Relias, LLR had three other exits in 2014, all from Philadelphia area companies. Quintiq was acquired by Dassault Systemes for around $336 million, Pet360 was acquired by PetSmart for $130 million plus a potential $30 million earnout, and King of Prussia-based Maxwell Systems was acquired by Oregon-based Viewpoint Construction Software (terms not disclosed).


Links 12/31/2014: "The Interview" is coming to Comcast VOD; Payoff for Advanta investors



Ten Huge Multi-Tenant Data Centers that Came Online in 2014 (Data Center Knowledge)

Uber Shuts Down in Spain After Telcos Block Access to App (Wall Street Journal: Digits)

“The Interview” is coming to on-demand services for Comcast, Time Warner Cable and more (Washington Post)

Analytics-based U.S. tech firm Inovalon files for IPO (Reuters)
Maryland healthcare tech firm.

Philadelphia 2015: A Look Ahead
(Region's Business)

Finally, payoff time for Advanta investor (Philadelphia Inquirer)

CEO Duncalfe on how Monetate targets your Internet ads
(Philly.com: Philly Deals)



2014 year-end notes: Yellowdig, Walnut Street Labs, Neat Company, MEG, RevZilla & more


Tom Paine



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Here I try to catch up with some items I've been following in 2014, including a few cases where people took time to talk with me and I didn't get anything written up (apologies):


Yellowdig's Wharton app

Yellowdig, whose founder Shaunak Roy I spoke with in August, is collaboration software for the classroom that is meant to complement, not replace, a school's existing LMS (learning management system), which I think is an important distinction. Now, the Philadelphia Business Journal reports that Wharton, which was piloting the product, has officially signed on as a user. Its also in pilot at Massachusetts Institute of Technology and Columbia University's business school.

Coworking and incubation tech hub Walnet Street Labs emerged this year as a real factor in energizing the tech community in West Chester and beyond. It hosted a Startup Meetup every single week this year, with a lot of spectacular speakers. It held a year-end wrapup meetup this morning to get feedback and plan for 2015. And they're expanding -full third floor and 33% more space:



Philadelphia's The Neat Company announced that their unique combination of cloud-based application, mobile, desktop software, and hardware scanning solutions will be featured on the upcoming season of NBC and Donald Trump's hit reality show "The Celebrity Apprentice," airing on Monday, January 5, 2015 from 8-9 p.m. ET. "The Celebrity Apprentice" pits 16 business-savvy celebrity contestants against each other as they try to raise money and awareness for a charity of their choice.

Wharton connections come into play, by chance?


MEG (for Mobile Engagement Gateway), the mobile marketing tool developed by Stuzo Labs, an offshoot of Philadelphia social media design shop Stuzo, continues to make progress in its limited rollout starting in the Philadelphia area. MEG is an easy to install mobile marketing automation platform for small businesses thats adds valuable functionality to mobile websites, often with little or no customization.

MEG was one of the presenters at the November Philly New Tech Meetup. Jed Singer, VP of Product Marketing for MEG, wrote this piece, 'What Is Mobile Marketing Automation?' also in November.

Aaron McLean, a pioneer in the Philadelphia tech scene, joined Stuzo in September as Partner, with a focus on bringing MEG to scale.

MEG features a number of standard widgets that can be added to mobile apps, including Facebook and Twitter feeds, polls, share, call, and message buttons, email signups, and many more, downloadable at no cost. Other custom applications can be developed by Stuzo staff. Users will also be able to utilize iBeacon technology in retail environments.

Stuzo Labs, founded by Gunter Pfau, was a early pioneer in building apps on Facebook's platform. It was sold to Dachis Group in 2010 but was bought back in 2013. Stuzo is essentially running two separate businesses now, but Pfau told Philly.com that he expects them to meld back together again at some point in the future.

MEG launched a a new website in December.


RevZilla, the Philly-based ecommerce site for motorcycle gear, placed #586 on this year's Inc. 5000. It reported revenue grew from $6.4 million in 2010 to $58.6 million in 2013. RevZilla also expanded into a second, larger building at the Navy Yard during 2014.

Late last year I wrote about a new cloud scheduling app for restaurants and caterers, Schedule Cloud for One Touch, created by Philly restaurateur and entrepreneur Greg Dodge and his business partner Frank O'Dea and developed by Pearl River, NY-based Superior Technology Solutions. The app, rolled out in September 2013, is now actively used by over 3,000 staff members for hospitality giants such as Restaurant Associates, Wolfgang Puck and Universal Studios in a multi-city roll-out including New York, Los Angeles, Boston and Washington DC.

Given the success of Schedule Cloud for One Touch, O’Dea and Dodge are already planning next steps for the platform. “One year out, we’re turning a profit, and growing—very positive for a start-up,” says co-founder Dodge.

Dodge is founder of Philadelphia-based Brookwood Consulting Group and currently operates Philadelphia’s Zavino Wine Bar, with two locations.



The Art Institute of Philadelphia and OKI Data Americas (Mount Laurel) are partnering on the installation and use of the new C941dn LED digital color printer. With this collaboration, The Art Institute of Philadelphia becomes the first school of higher learning within North America to adopt a C941dn and integrate it into select curricula. As part of the relationship, The Art Institute of Philadelphia has full use of the C941dn for three years, during which time the school plans to further integrate the device into its curriculum to take advantage of the printer’s diverse capabilities.


Links 12/29/2014: Über files compliance plan with PA PUC; MSNBC says it will widen its scope



New Jersey Adopts New Software (Tax) Regulations. (PR Newswire)

MSNBC to widen its scope and make other changes, its president says (LA Times)

Tax software CEO Jeff Westphal talks inspiration (Philadelphia Inquirer)
Vertex is probably the largest global software company based in the Philadelphia area that few people pay attention to.

SAP in 2015: Seven Predictions
(ASUG News)

Job of the Week: SAP subsidiary National Security Services seeks chief information security officer (Washington Post)

Uber files compliance plan with PUC
(Pittsburgh Post-Gazette)

After raising $1.1B, Xiaomi is now worth $45B (Gigaom)




Horsham-based chip equipment maker SSEC acquired by Veeco Instruments for $150 million


Tom Paine



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In one of the larger tech deals in the Phily area of 2014, New York State-based Veeco Instruments announced in early December it had acquired SSEC (Horsham) for $150 million in cash. Founded in 1965, SSEC (Solid State Equipment Holdings LLC) is part of the remaing legacy of the area's once considerable semiconducter-related industry.

SSEC says on its website that it "holds to the philosophy that the integrated circuit industry is still in its infancy." SSEC "designs and manufacturers single-wafer wet etch, clean and surface preparation equipment targeting high-growth segments in advanced packaging, micro-electro-mechanical systems (MEMS) and compound semiconductors," writes the trade publication Semiconductor Today. Veeco’s chairman & CEO John R. Peeler said "SSEC extends our compound semiconductor and MEMS footprint, and represents a stepping stone to the high-growth advanced packaging market.” MEMS is a hot area; MEMS appplications are largely being driven by consumer devices, but industrial IoT applications are expected to be major drivers in the future.

SSEC's  WaferEtch(TM) TSV Revealer
Based in Plainview, NY, Veeco (NASDAQ:VECO) had revenue of $332 million and a net loss of $42 million in 2013. Veeco has actually shrunk in recent years, partly as a result of a 2010 divestiture. It is now focused on higher-growth markets of supplying process equipment to the LED, solar, data storage and wireless industries.

Veeco is forecasting SSEC’s revenues to be $65 million in 2015, and it expects it to provide earnings before interest, taxes, depreciation, amortization, equity compensation, and other non-recurring items (adjusted EBITDA) of greater than 20% of sales in 2015.

SSEC was recognized on the 2013 Inc. 5000 with 2012 revenue of $80.4 million, up from $47.7 million in 2009. It would appear that its revenue has gone down since then, given Veeco's 2015 forecast, but such cycles are not unusual in the semiconductor industry.

Rich Richardson has been the longtime chairman of SSEC and Herman Itzkowitz the CEO. Summit Partners made the last reported investment in SSEC in 2011. SSEC has 44 employees listed on LinkedIn, most of them in the Philadelphia area.