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Archive for September, 2008

Skyhook Wireless & Broadcom Partner

September 30, 2008 Leave a comment

Boston (Fort Port Channel) based Skyhook Wireless announced today that they are providing advanced Wi-Fi positioning services to Broadcom. Broadcom Corporation (Nasdaq: BRCM) is upgrading its location based infrastructure semiconductors to include Wi-Fi positioning for all of its cell phone chips.

As you know Skyhook provides the cell-tower triangulation and Wi-Fi positioning that we’ve become accustomed to on our iPhone.  If you’ve downloaded a location based iPhone app (NrMe, Where) then you’ve used a combination of GPS and Skyhook technology. This Broadcom deal opens up location based applications to a much larger market – the upcoming Android apps will explode it even more.

Skyhook currently monitors every new location based application that’s added to the iPhone application store and since it’s launch (Summer 2008) the number of applications has more than doubled to over 300.  

The largest number of these applications cater to social networking, local search, navigation and public transportation.

In addition to their mobile software, Skyhook Wireless also has a neat application called Loki.  Loki is a location based search and navigation tool that allows you to share your location with friends either on your blog, website or Facebook profile. Their Find Me and Local Search features give you the ability to pinpoint your exact location and find the closest coffee shop, respectively.  

News:  Techcrunch, Skyhook Wireless

Social Network or Business Network?

September 30, 2008 Leave a comment

According to the current Bizak benchmarks, business networks are significantly more profitable than social networks.  Social networks on Bizak have an average valuation of $763,102.56 while business networks average $5,626,000.00.

Most Valuable Small Businesses

September 27, 2008 Leave a comment

The BizEquity blog has a very interesting list of the top 10 US cities with the most valuable small businesses. Irvine, California tops the list with an average business valuation of $329,850 and my town of Boston, Massachusetts is a close second at $324,103.  NYC is fifth at $279,982.  Some surprises on the list include South Bend, Indiana, Sioux Falls, South Dakota and Wichita, Kansas.  My guess is their valuations are higher, even with less volume than say a New York City, because their costs (rents & salaries) are significantly lower?  

For the entire list please visit The MVB List

Startup Statistics from Bizak

September 26, 2008 1 comment

Bizak allows entrepreneurs to categorize and search for startups according to industry, business type and revenue source.  As of September 26, 2008, Internet industry startups utilizing social networking tools with in house advertising is the most popular type of startup.  

The stickies below outline the most popular types of startups in their respective categories.  Google Adsense still remains very popular at 20% of all revenue models, even though I feel that it has become worthless.  My preference has always been a subscription model in one form or another – Bizak and infoMedMD both integrate a subscription model with corporate services.  Deciding whether to offer services for Free or Not Free are usually the deciding factors between a subscription or advertising model and whether you’re targeting consumers or corporations.  Generally speaking, consumers want your product for free whereas corporations are willing to pay for value added services and/or data. 

Top Startup Industries on Bizak:  Internet (35%), Arts & Entertainment (9%), Computers & Electronics (8%), Business (4%), Politics & Media (4%) and Retail (4%).

Top Website Types on Bizak:  Social Networking (16%), Ecommerce (14%), Consulting Services (11%), Content (9%), Blogs (9%), Video (6%), and Business Networking (6%).

Top Revenue Sources on Bizak:  In-House Advertising (22%), Google Adsense (20%), Product Sales (20%), Consulting Fees (17%), and Subscriptions (11%).  Back in May I also highlighted the top revenue sources on Bizak and it’s good to see with more data that Google Adsense has decreased significantly while product sales have increased.  Based on our statistics in May 2008 (a month after launch) Google Adsense was at 39%, Product sales at 14% and In-House Advertising was 12%.  Subscriptions and Services have remained relatively constant at 11% and still less then 1% use Microsoft Search Advertising and Yahoo Search Marketing for revenues.

What’s Your Business Worth? – BizEquity

September 25, 2008 Leave a comment

 Over the last few months there has been a handful of startups launched that focus on business valuations.  All of them have a different focus with the common bond being the attempt to quantity both businesses and business ideas.  I run Bizak, which focuses on internet startups and computing benchmarks according to industry, type and revenue source for comparative analysis.  YouNoodle, which is based in San Francisco and launched over the summer, mixes business networking with a startup predictor application.  The latest business valuation service to launch is BizEquity, which focuses on offline, small business valuations with a reported database of 10 million business valuations.  BizEquity is based in San Diego and is founded by Tom Taulli and funded by Advanta Ventures.

I recently was able to talk to Tom Taulli about his services and one feature that I find very useful is BizEquity’s Custom Valuation application.  This advanced business calculator allows small business owners (more offline than on – restauranteurs, shop owners, retail, etc.) to calculate a detailed valuation of their business.  You can then elect to submit these calculations to BizEquity’s database.  I like the service that Tom offers and feel that we (Bizak & BizEquity) focus on two distinct markets (online & offline, respectively) that could potentially benefit from the integration of both of our data sets.  As I mentioned last week Bizak just launched their XML data feed which enables databases like BizEquity’s to integrate our internet benchmarks and startup profiles with their current data.

Additionally we discussed in detail some of the services that Bizak offers and Tom graciously included that interview in one of his BloggingStocks posts titled, “What are Startups Worth?”  The topics covered are:  

Q: Some background on Bizak?
Q: You are also launching a new offering?      
Q: What are some of the approaches of valuing an early stage company? Some recent trends?
Q: Thoughts about the recent financial instability and what this may mean for startup valuations?

Goodbye Beta!

September 22, 2008 Leave a comment

 

Bizak is now officially out of beta!  

We completed the investor side, added the XML feed, tweaked the entrepreneur side and dropped the orange beta button!

WebNotes

September 17, 2008 Leave a comment

Many thanks to Alex King, Director of Marketing at WebNotes, for inviting me to visit their offices in Cambridge, MA.  Started by a handful of MIT grads, WebNotes is revolutionizing the way people collect and organize information on the web. WebNotes is currently in Beta and is expected to go live in the next couple of weeks – when they do make sure you check them out.

Online at http://www.webnotes.net/

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