Saturday Highlights: Enterprise SaaS IPOs just getting started?



Venture Capital investment in Silicon Valley hits dot-com boom levels
But here's why we're (probably) not staring at a crash
(The Register)

All These Enterprise IPOs: Why It’s Just Getting Good. Why These are The Best of Times for SaaS. (Jason M. Lemkin / Enterprise Irregulars)


IBM Earnings Preview: Can Big Blue Regain Its Color? (Investor's Business Daily)

Uber reaches out to PUC about settlement (Pittsburgh Tribune-Review)

As the retail landscape changes, payments hardware is scrambling (Gigaom)


Former Comcast exec, Microsoft advisor Kunkel has new Philly startup





Tom Paine



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Gerard Kunkel / LinkedIn 

Former Comcast exec Gerard Kunkel, who most recently served as an advisor to Microsoft, has a new Philly area startup, Multichannel News reported. It will focus on technologies for the media & entertainment user experience.

In addition to serving as Senior VP of user experience and product design at Comcast, he also was president of GuideWorks LLC, a joint venture between Comcast and what is now part of Rovi, which has since left the joint venture. He also served time with WorldGate, Bensalem's long-running but ultimately failed internet TV and videophone startup.

At Microsoft, he was a strategy advisor to Microsoft on its interactive media explorations, which were at one point broad but ended up focused on its Xbox platform. His tenure with Microsoft ended in November, according to his LinkedIn
profile.

In the 1990's he led the company that designed, developed and deployed the network and customer management software for use in Bell Atlantic’s pioneering Toms River, NJ switched digital video service, sort of an early version of FiOS.

His new startup, which is still in stealth mode, is called SHUX App.

Multichannel News quotes Kunkel as saying SHUX will feature a "highly sharable user experience targeted at a young, mobile, and extremely interactive audience.”

No word yet on financing.


Philadelphia & Drexel Take Center Stage as Growing Hacker and Maker Movements Link Tech Heavyweights With Disruptors

Philadelphia, PA 
Sunday, January 11th 2015 - 1:54 AM | BY Brendan Kaplan

It's two in the morning and while most of Philadelphia sleeps, Drexel University's Sorbonne Center is abuzz with activity as over 120 techies gulp coffee from behind soldering irons, keyboards, sensor arrays, and drone controls. While this might not surprise the casual observer during finals season, bear in mind it's still currently winter break.
The driving force behind this unusual state of affairs is DragonHacks 2015, a hardware hackathon presented as a collaboration between Drexel's schools of Engineering and Computer Science, several corporate sponsors, and Major League Hacking (MLH). For the uninitiated, a hackathon is an event, usually running between 24 and 48 hours, during which competitors vie to create the most innovative, technically elegant, captivating, or just downright fun projects using only sanctioned tools and materials.
  
   
10898331_10104696587373139_5133528757277875762_n.jpg
Typical Hackathon setup with student co-working and collaboration space combined with free access to host location buildings for breakaway groups - this particular one at Drexel Dragon Hacks 2015 | Photograph © Brendan Kaplan


Over the past several years Hackathon events have continued to play an increasingly major role in the trajectory of technology due to their ability to connect existing tech heavyweights like Microsoft and Intel, which were represented at the event, with untapped populations of talented, passionate, and creative people. Indeed, corporate hiring in the tech field is now beginning to eschew traditional hiring practices like career fairs and headhunters, instead opting to interact with talent directly. Combined with an explosion of next generation technologies like IoT (Internet of Things), 3D printing, and other trends that are being pioneered by enthusiasts as much as professionals, Hackathons represent a genuinely new format for innovation that is driving ideas and economics alike. As one representative, Steve Xing from Intel put it:
"Over the past decade, we didn't capitalize as much as we could have on tech trends like mobile due to our dominance in the areas that came before. Fortunately, as markets evolve more frequently, we've been able to use events like this for the dual purposes of snapping up the most cutting edge talent while they are still young, and getting our products into the very groups that are driving this evolution." It only seems appropriate that Steve was hired by Intel as an intern at just such an event, and is now helping drive product line development for IoT sensors and controllers.
In fact, in response to the growth of this ecosystem, Hackathons now have an official accreditation body, Major League Hacking. At the time of this article, MLH is entering its 4th season, each of which corresponds to a college semester. Jonathan Gottfried, one of MLH's cofounders and Vice President of Sponsorships, as well as Aziz Ramos, Creative Director, were on hand to provide guidance to the organizers, ensure the Hackathon adhered to the MLH code of conduct, and support individual participants.
Jonathan described how the organization he helped found was created to fill a void that was apparent to him and several friends who were active in the nascent Hackathon culture years ago. "We got started by attending other events and realizing that everyone kept coming to us for help... We would get questions ranging from 'How do I use this technology?' to 'How can I meet others who want to collaborate?' Every time this happened, we were more convinced of the need for the type of lifestyle organization that could cater to this unique group."
Speaking on his own background and process, Aziz Ramos said, "I came to MLH by participating in Hackathons throughout the country, especially at HackRU, which was hosted at Rutgers where I attended college. I kept working with the founders on different projects at different events, and as I began looking for a job, I reached out to an MLH founder who also attended Rutgers. They hired me because they felt I embodied the quintessential hackathon lifestyle and that I would be perfect to disseminate this culture throughout the community at future hackathons."
When asked whether MLH is the driver or beneficiary of the Hackathon culture, Jon responded by indicating that the community is more tightly knit than to allow such distinctions. "We really work in a mutually reinforcing way. Our company was founded to better serve Hackathons, so in a sense, we are beneficiaries of their existence. However, we've been able to help to increase both their quality and quantity by helping collate best practices and providing some structure. Our growth is only accelerating, which indicates that we are providing some real value to the national hackathon scene. Last year, our spring season had roughly 30 events, this spring, we're on track to support 80. You don't get that type of growth without bringing something to the table that wasn't there before."


Brendan Kaplan, representing sponsor Addteq, hangs with Diaz Gotoma, one of the student organizers of Dragon Hacks 2015. | Photo © 2015 Andrew Pellegrino


The national increase in the number of hackathons also corresponds to some local trends in the Philadelphia economy. One of the organizers of DragonHacks 2015, Diaz Gotoma, recently graduated from Drexel and has spent the past 5 years at the University, and seemed sure that the innovation economy and tech go hand and hand in Philly. He says that the maker/hacker culture in Philadelphia is quite strong, crediting a few factors with local success.
"The low cost of Philadelphia real estate as compared to other similarly educated metro areas is a real strength. Where $10,000 might buy you 2 - 3 months of living in New York, in Philly one could live for almost a year. This flexibility combined with the strong intellectual and educational resources provided by University City have gone hand in hand with the exciting startup culture Philadelphia is increasingly known for." It seems this view has paid off, at least for Diaz, who traded hi-fives and hugs with fellow DragonHacks 2015 organizers at the end of the event as he left for the airport to start a new job at Microsoft in Washington.
While it is difficult to draw a 1:1 comparison, one can't help but notice the strong correlation between student participation in Hackathons and job offers that occur immediately upon, or even before, graduation. Although only a graduate for a few weeks, Diaz's job offer meant he had to leave the hackathon he helped create only 15 short minutes after it ended in order to catch a plane.
Diaz's notions of the connectedness of Hackathons and Philly's innovation economy aren't off base either. The rise of Hackthons over the past 5 years has coincided with the blossoming of many hacker/ maker spaces in Philadelphia such as Hive76, NextFab, and The Department of Making and Doing, which have all popped up in a similar time frame. While all different, each subscribes to an exploratory, experimental, and creatively driven process the founders of Major League Hacking have captured wonderfully with their sanctioned Hackathons.
During judging, each team got the same three minute time frame in which to demo their hack. Although some projects barely made it out of concept while some teams were able to complete several fully functional systems, each got the same time, the same applause, and the same respect. A large portion of the teams were comprised of students who had never met previously, with several having international participants who travelled from all over the world to attend the event. Like Philadelphia's startup community, the common languages of a quintessential hackathon are technology and creativity. Dragon Hacks 2015 was no different, embodying both the local startup revolution and the values of tomorrow’s tech leaders all at once.
For more information on Hackathons, readers can check out Major League Hacking (MLH) at www.mlh.io, or to see more on Dragon Hacks 2015, http://hack-dragon.com/


About the author:
Brendan Kaplan has worked at the intersection of technology and human interaction for the past decade. He has authored award nominated research on similarity between brain development and city development, consulted for several Fortune 500 companies, and facilitated multiple sales of software technology intellectual property rights. He is currently a senior marketing consultant for Addteq.






Yesterday's links: Google using PwC partnership to ramp up enterprise business; Lyft seeks more funding, plans Philly launch



US takeover for north of Scotland software business (Aberdeen Press & Journal)
Bentley Systems' acquisition of C3global.

Google Uses Partnership, Cash To Bolster Enterprise Business (Wall Street Journal: Digits)

Could your service be better? ServiceNow has an answer (Fortune)


Clinipace eyes acquisitions after raising $50M (Raleigh News & Observer)
Started with tech platform for clinical trials; morphed into CRO, but still mantains strengths in technology.

Life in the Cloud – Vendor Activity is High (Insurance Networking News)

Net Neutrality Draft Circulated (Multichannel News)

Lyft readies Philadelphia launch: Drivers trained, $1,500/week offered (Billy Penn)

Lyft Seeking New Mega-Funding to Battle Uber (Re/code)


Data needs “standard shipping crates” says SAP CTO (Computing)

Google Is In Talks With Softcard, The Mobile Payments Company
(TechCrunch)


Links 1/15/2014: Wilmington-based Global Debt Registry raises $7 Million; Blackberry, Samsung deny talks



Wilmington-based Global Debt Registry Secures $7 Million in Series A Funding (Business Wire)

BlackBerry, Samsung deny takeover report (CNBC)

How John Chen Has Tried to Keep BlackBerry Alive (Bloomberg)
Prior to BlackBerry, Chen was CEO of Sybase, which he sold to SAP.

Comcast Expands X1 Features
(Multichannel News)

NBCUniversal Is Using Big Data to Launch Its Audience Targeting Platform (Ad Week)

SAP and Ariba: Morphing or Moving to Full EDI Network Replacement and Support? (Spend Matters)

Boxed, a bulk shopping app, raises $25 million
(Fortune)
No,its not really like Jet; Early investor First Round Capital joined up again in this round.


Manufacturing activity grows at weaker pace in Philly region (AP via Philly.com)


Links 1/14/2015: Comcast sets new regional structure presuming deal approval; Poptent merges with European firm



White House Says U.S. Broadband Market Needs More Competition (Re/code)

Web TV Startup NimbleTV Goes Dark, Promises to Return (Re/code)
Turns out that NimbleTV has been acquired by Synacor.

Whistle Sports Raises Another $28M (Multichannel News)
Wayne Kimmel's SeventySix Capital is also an investor in Whistle.

Comcast Sets New Regional Structure (Multichannel News)
Assuming acquisition goes through.

NRF 15 : Baby you can drive my CAR – SAP on retail’s big picture (Diginomica)


Cloud Accounting Startup Xero Expands Payroll Product In The US
(TechCrunch)

Unit4 surges ahead with SaaS transformation (Diginomica)
FinancialForce reported to be surging.


Video crowdsourcing sites Poptent + Userfarm = the new Vizy (VentureBeat)
Vizy says all offices (including Philly) will remain open, but headquarters will be in London.

PUC seeks to subpoena Uber CEO Kalanick, raises proposed fine to $19 million (Pittsburgh Post-Gazette)

European retailer takes huge lease in Lehigh Valley (Philadelphia Business Journal)

RCN drops 110 Mbps tier into Lehigh Valley (CED)

Here's Why Samsung Would Want to Buy BlackBerry (Bloomberg)


King of Prussia-based Greenphire recieves growth investment from Riverside Company, but its not an acquistion



Tom Paine



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Greenphire, the King of Prussia-based SaaS clinical trial payments platform company, which I profiled in 2013, received an undisclosed growth investment from the Riverside Company, Cleveland-based Riverside announced today.

Terms of the transaction were not disclosed. Jones Day and Deloitte advised Riverside on the transaction and Ares Capital provided debt financing. Pepper Hamilton advised Greenphire.

Greenphire, founded in 2008, made the Inc. 5000 in 2013 with 2012 revenue of $5.4 million, and again in 2014 with 2013 revenue of $6.8 million, up from $803,000 in 2010.

“Software and Healthcare are two of Riverside’s most active specializations,” said Riverside Principal Joe Manning in a statement. “This investment exemplifies Riverside’s strategy of partnering with best-in-class companies with strong management teams.”

“Greenphire has experienced exponential growth each year since its inception. The management team has worked hard to grow while scaling its operations to ensure continued quality. After an extensive search for an investment partner, Greenphire was excited to select The Riverside Company as its partner to ensure continued success into the future,” said Greenphire CEO Samuel Whitaker in the same release.

Fortune's Term Sheet described the tranaction as an acquisition. Although not knowing the exact nature of the deal, Philly Tech News has learned that the transaction was an investment only, and not a full buyout. I couldn't confirm whether early investor FirstMark Capital, whose other Philly area investments included Boomi, Artisan Mobile, and Guru, had exited, as Term Sheet reported.

Last month, John Blakeley, who was formerly chief commercial officer at Greenphire, joined CRF Health in Plymouth Meeting as chief business officer.

The Riverside Company is a global private equity firm focused on acquiring and investing in growing businesses valued at up to $250 million.


Links 1/13/2015: EBay Enterprise making news; Instacart raises $220 million






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Concur: the $8.3 billion company that almost never was (Pudget Sound Business Journal)

Greenphire Receives Growth Investment (PR Newswire)
Fortune's Term Sheet describes it as acquisition; I'm not sure yet what version is correct.

Magento Expands Its Cloud-Based Commerce Ecosystem with Microsoft and Joyent (Business Wire)

EBay Unveils Retail Platform: All About Omni (Women's Wear Daily)

Mavenir to bolster telecom diameter signaling platform with Ulticom purchase (RCR Wireless)

Instacart, the grocery delivery startup, raises $220 million (Fortune)
Comcast Ventures one of several investors.

Q&A: How RelateIQ is filling the CRM gap for SMBs (ZDNet)

Adaptive Insights Makes Leadership Change With New CEO (Wall Street Journal: Venture Capital Dispatch)

IBM Introduces z13, a Mainframe for the Smartphone Economy (New York Times: Bits)


Conservatives Launch Ad Campaign Against Comcast/Time-Warner Merger (Bloomberg Politics)

Comcast-backed FanDuel Quadruples Revenue (Multichannel News)

Bentley Announces Acquisition of C3global and Its Amulet Operational Analytics (Bentley Systems)


Flatiron Health, Fort Washington-based National Comprehensive Cancer Network team up on oncology data



Tom Paine



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Flatiron Health, the New York City-based Cloud Oncology platform founded by Invite Media co-founders Nat Turner and Zach Weinberg, is teaming up with the Fort Washington-based National Comprehensive Cancer Network to create a cloud-based data repository of NCCN Member Institution data -- the NCCN Outcomes Database, the two organizations announced last week.

"Through this collaboration, electronic health record (EHR) data will be aggregated for cancer quality and outcomes assessment, as well as identification of key trends and patterns in the care of patients with cancer. Within this database, NCCN Member Institutions will have the opportunity to measure concordance to the NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines) and will be able to access OncoAnalytics, Flatiron Health's proprietary, cloud-based analytics tool," Flatiron and the NCCN said in a statement.

The resulting data will be available for member institution inquiries, as well as to external parties through a joint commercialization agreement between NCCN and Flatiron, according to the statement.

The National Comprehensive Cancer Network (NCCN) is a not-for-profit alliance of 25 of the world's leading cancer centers devoted to patient care, research, and education.

Flatiron Health, founded in 2012, has raised nearly $140 million in venture funding from firms including Laboratory Corporation of America, First Round Capital, and Google Ventures.

Turner and Weinberg founded web ad buying platform Invite Media, also backed by First Round Capital and launched in Philadelphia before moving to New York, and sold it to Google in 2010.


Links 1/12/2015: SAP preliminary earnings hold up; Is ADT Corp one of Zonoff's new investors?



SAP fourth-quarter profit holds up as cloud shift accelerates (Reuters)

SAP's preliminary earnings release
Cloud subscriptions and support still accounts for less than 7% of revenue.

SAP’s Sneak Peek of Q4 and Year-End Earnings: 4 Customer Takeaways (ASUG News)


Ellison's backing helps Kurian's star to rise at Oracle (Reuters)

PhillyDeals: Oracle has most job openings in Philly (Philly.com: Philly Deals)

IBM ushers in BIGGEST EVER re-org for the cloud era, say insiders (The Register)

CES Redux: State of the Smart Home Wars (Light Reading)
Is ADT Corp one of Zonoff's large new investors? Also, questions about Comcast's plans.


ModCloth Co-Founder Eric Koger Exits Role As CEO; Urban Outfitters’ Matthew Kaness Joins (TechCrunch)
First Round Capital was an early investor.

FCC ‘Peering’ Into Comcast-TWC (Multichannel News)

EMC Reaches Agreement With Investment Firm, Adds Two Directors (Re/code)


PipelineDeals raises $1 million Series A; HQ now in Seattle, though development still in Wayne


Tom Paine



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PipelineDeals, the SaaS CRM for small to medium sized business-to-business companies which I profiled a couple of years back, has raised its first outside funding, after nine years of bootstrapping. Its received a $1 million Series A from a group of Seattle-based angel investors.

Although it started in the Philadelphia area (Wayne), co-founder and CEO JP Werlin says it is now officially based in Seattle where its long had an office, according to the Seattle tech website GeekWire, although its development office remains in Wayne. PipelineDeals now has 25 employees, GeekWire says, and LinkedIn indicates that slightly less than half are in Wayne.

PipelineDeals team in Yellowstone at Summit 2014 / 
PipelineDeals website


Co-founder Nick Bertolino remains based in Wayne.


PipelineDeals made the 2014 Inc. 5000, as revenue reached $2.6 million in 2013, up from $989,000 in 2010. PipelineDeals offers a relatively low-priced ($24 per month per user), sales-focused CRM to serve a market it says Salesforce has largely abandoned. It says it has over 3000 customers.