Wasatch Girl

Please Note: New Web Address

2008-02-12T11:55:00.000-07:00

Readers, please note that I have moved this blog to its own domain. If you have subscribed to this feed, please update it with the new WasatchGirl address.

12/05/07 Links

2007-12-05T17:31:00.001-07:00

Real busy with projects today, so not as much time to read. A couple links of interest:

The TechCrunch Umbrella

2007-12-05T17:23:00.000-07:00

I recently realized that TechCrunch has an umbrella of sites including CrunchBase, Crunchgear and a handful of others. I am pretty positive that I should have known about these sites a LONG time ago, especially since I am a TechCrunch reader. However, I am notoriously bad at reading all blogs in my reader and never actually going to the site..... so, missed the connection.

Needless to say, I checked out CrunchBase, a listing of web2.0 company profiles. Out of curiousity I looked up some of the Wasatch companies to see what information was listed.

The Generations Network - listed under MyFamily.com, The Generations Network and Ancestry.com. Information was different on every page, even though each page mentioned the others and how they were all interrelated. The acquisition news was only listed on The Generations Network.
Mozy - information on company and acquisition were accurate. For some reason Tim Draper and Drew Majors were listed as the only investors even though Wasatch was the only one listed under the financing information.
Lignup - not included, but I don't believe it has even been covered on TechCrunch
BungeeLabs - not included, but I don't believe it has even been covered on TechCrunch
Medsphere - not included, but I don't believe it has even been covered on TechCrunch

Hmmm... definitely not perfect... yet, I can't be too hard on the author Mike Arrington as there are a bazillion (note that this is not an actual count) web2.0 companies out there. If anything, Crunchbase can be a good starting point to find companies already noted by Arrington as movers and shakers, as his viewpoints result in a definite increase in site hits. Then perhaps researched on one's own after that.

12/03/07 Links

2007-12-03T16:57:00.001-07:00

Interesting links I discovered today:

And a couple fun links:

Blog Trackback

2007-11-01T11:12:00.000-06:00

I just read this AlwaysOn blog about undergrads and social networking and found it interesting as I follow the social network space as well. Thought I would do a quick trackback.

Blogs in Profile?

2007-10-27T09:23:00.001-06:00

Can anyone tell me why my Blogger profile only shows my personal blog, Cragbaby, rather than both my blogs? I tried to edit it and went to the section that allows me to choose which blogs to display, but the Cragbaby was the only option.(?!)

Also, does anyone know how NOT to get my profile pic on the side bar to run off onto the edge? I might just need to check Blogger help first on this one. But figured since I was posting, might was well post all my questions. =)

Efficient Blog Reading

2007-10-27T08:57:00.000-06:00

It is Saturday morning and I woke up early due to my little pooch needing to go outside. I have been swamped at work lately and haven't had the time to catch up on my blogs. So, this morning I thoroughly enjoyed spending some time reading the feeds and posting up comments.

It made me wonder how most people organize their readers and the order in which they read the posts. I have mine organized with general labels such as friends, vc, technology, utah, entrepreneur, fun, business, stocks and news. And I notice that the most important blogs to me are my friend blogs. Ummm... yes, I should probably read all the new technology blogs first, but sorry, my friends win out. The funny thing is, there are a couple blogs that I find so useful that I purposefully list them as 'friends' in order not to overlook the new postings. One such blog is LifeHacker. If you haven't checked out this site, you should.

After friends, I read the labeled posts in this order: news, technology and vc. I notice that certain labels like business never get read because I skip right to friends. And for some reason I skip certain labels, for instance Utah (sorry Utah bloggers), unless I have a lot of spare time.

I feel as if I need to re-label or think of a new system to better utilize my time and increase the realm of blog posts I read.

Any suggestions?

Windows Only Based Macs?!

2007-10-25T18:33:00.000-06:00

The other day I read the ZDNet blog "Apple should start offering Windows-based Macs". Interesting read, but I disagree.

Apple has established a reputation for an integrated hardware and software resulting in high quality machine with few operating errors. Its performance and reliability are what make the computers so great... and (I believe) have increased the sales. I think there probably is some correlation (though slight) with iPod sales and Macs as the iPod helped to break down the consumer's viewpoints of Apple being hard to use (I mean how can you operate a computer without a right mouse button?). Yet, the main increase most likely resulted from consumers wanting a reliable computer with in-store service rather than having to call India to wait on hold for hours. Why would Apple want to mess this reputation by installing Windows rather than the OSX? If the user really wanted Windows, why not just invest in the upcoming Bootcamp?

I believe the increase of Apple sales are due to consumers becoming more comfortable with the Apple products and Apple slowing reeling each consumer in with each new gadget release.

What are your thoughts? Will the bootcamp be too techy for the normal consumer to use?

Identifying Your Weaknesses

2007-10-23T18:26:00.000-06:00

Today's AlwaysOn included the post "Know What You Suck At" written by Brad Feld. I like the writings of Brad Feld, but this was especially good. He had created a list of things (over a wide range of spectrums) that he was lousy at and therefore, if important, outsourced to other individuals.

I loved the post (and Brad's list) as I know I also suck at a whole bunch of things. I say this not with a lack of confidence, but more as a realization that I just don't have the skill set needed in certain areas. Some of my list includes:

I can not swim. I even took a swim class at a junior college and I seriously can't master the technique and breathing. I would really love to do a triathlon, but I genuinely could not do the swim portion without a life jacket.
I have zero cooking abilities. If it requires more than boiling water, it is out for me. I will gladly clean all the dishes and the entire house, but please do not hope for a good meal outside the realm of Kroger Mac and Cheese.
I don't deal well with cocky people. They irritate me, especially when I feel like they are clueless on the subject matter at hand. And especially when they put someone down to build themselves up.
I have a rough time working on one sole project as I am a true multi-tasker. I need variety and get bored with only one thing on my plate.
I suck at crossing logs over rivers. The log crossing is more treacherous for me than a technical rock climbing route.
I have a hard time NOT giggling in my personal (and sometimes even work) life. Even while playing poker I can't hold a straight face. I like to giggle.... it is part of who I am.
I feel that I struggle to convey my business thoughts and ideas in words. This isn't yet a lost cause, but is one of the main reasons why I started this blog.
I can't watch scary movies and by scary I mean even Ghostbusters.
I struggle not to over extend myself. I always think that there are more than 24 hours in a day.

Brad briefly mentioned entrepreneurs, to which point I want to re-circle. I feel that I often hear the "story" or only the good aspects that a CEO is trying to spin when coming to talk to the firm. The spin is necessary to an extent in order to engage the investors and sell the positive aspects, yet I also want to know the trouble spots or what the management can't do. I absolutely love it when someone genuinely tells me that he/she might not be the right CEO upon entering the growth phase of the business. Or that the company really needs someone with more of "x" experience (x being any area of the business). I really appreciate the humble entrepreneurs who have the necessary passion, but are willing to listen to an outside perspective.

I think Brad nailed the idea on the head when he said our weaknesses can actually be a filter and that we can choose to either work to make these areas our strengths or structure our business/life to either outsource or avoid these areas altogether.

Thanks for the post, Brad.

The Generations Network Acquired by Spectrum Equity

2007-10-22T17:29:00.000-06:00

Spectrum Equity purchased a majority stake in Wasatch Venture Fund's portfolio company The Generations Network (previously known as MyFamily.com) for an investment of $300m. The Utah-based Generations Network is comprised of Ancestry.com, Rootsweb, and MyFamily.com that, according to Hitwise, rank as the second, third and fourth largest U.S. "family lifestyle" sites. The Generation Network has more than 900,000 paying subscribers, receives 8.2m monthly visitors worldwide and counts approximately 2.5 million active site users.

Utah Private Equity Environment

2007-10-12T15:46:00.000-06:00

It is best for an entrepreneur to try and finance her company through her own resources (bootstrapping, friends and family, etc) because it increases her commitment to the company and she then retains ownership. Yet, many companies will need additional capital and depending on the type of business private investors might be interested in participating via debt or for an equity piece. Utah has a good range of financing options available for looking entrepreneurs.

Angels: There are four organized angel groups and a couple of individuals within Salt Lake and Provo. I have listed the organizations only as I believe the individuals seek out their own deal flow. The angels will often invest at the earliest stage of the business, even as early as conception. Certain venture players will also invest at the seed stage (including Wasatch) but this stage is the angel's main focus.

Local Venture Capital Firms: Venture capitalists provide early-stage and growth capital. Due to the venture capital model, VC's usually only invest in high-technology deals able to generate high margins.

Wasatch Venture Fund
vSpring Capital
UV Partners
Canopy Ventures
Prospector Equity Capital
Double Eagle Ventures
EsNet
University Venture Fund
Vast Equity (in the formation process)
Another one is being formed, but due to the fact that I am unsure on their public status I will not post the name on my blog.

Local Private Equity Firms: I have lumped the later stage firms and buyout firms together in the Private Equity list since there are only a handful of these investors in Utah. The later stage firms finance companies that are already cash flow positive and need financing for expansion or in preparation for a liquidation. The buy-out firms actually buy a company and find a new management team (or personally manage the company) to turn the business towards profitability.

Sorenson Capital
Peterson Partners
Cross Creek Capital
DW Healthcare Partners
Banyan Ventures
Two other spin-outs are being formed, but once again I don't know their public status.

Venture Lending: Venture lenders are a financing option that extends the capital between equity rounds. It is debt plus warrant structure, preserving the equity of the company but providing potential upside for the lender. UTFC was the only venture lender until a couple months ago when Zions created a venture lending arm.

Mozy Acquired by EMC

2007-10-12T11:35:00.000-06:00

Wasatch Venture Fund portfolio company Berkeley Data Systems was acquired by EMC, the world leader in information infrastructure solutions. Berkeley Data Systems is the provider of Mozy, an online data backup subscription service. Wasatch invested in Mozy in 2005 alongside Novell co-founder Drew Major and venture capitalist Tim Draper.

KCPW Fall Fundraising Drive

2007-10-11T12:33:00.000-06:00

The semi-annual KCPW Pledge drive is underway. Please take the time to pledge your support by calling 801-359-5279 or visiting their site. Being a phone volunteer for this event is actually one of my favorite volunteer opportunities due to the interesting people involved with the drive. If interested in volunteering in the future, fill out this form.

The MacBook Keeps Me Smiling

2007-10-09T12:19:00.000-06:00

Once again my little Macbook has succeeded in surprising me with its functionality. A couple months ago LifeHacker had posted about the downloadable Mac tool Combine PDF, a freeware that emulates Adobe Acrobat. I used the application and was happy with the product, but did feel the layout could have been a little more user friendly. I hadn't used the application for about a month and went to use it yesterday evening. For some reason I was unable to upload the files I needed to combine. I tried downloading the latest version of Combing PDF and still no dice. After a quick Google search I learned that a PDF combining functionality is already built in on Macs and that freeware isn't necessary at all.

The built-in tool is called the Automator and is esentially a list of macros that can be ran on a file without having to open the file. There are 212 actions available for all built-in application.

Since Microsoft Word was installed there are no actions available to turn a doc into a PDF, meaning that the doc will need to be opened in Microsoft word and saved as a PDF. Unlike Windows where a driver is necessary, the Mac version has the option already available in the print box as a button on the left corner.

Once all the files are saved as PDF's, highlight them in the finder, ctrl+click, and choose Automator and Create Workflow. The Automator box pulls up and shows you all actions available. Find 'Combine PDF Pages' in the list of actions (easier to find by using the search box) and double click so that it is added to the workflow. Make sure that appending pages is marked. Then find the action 'Open Finder Items' and choose Default Application. This will open the combined file and allow you to save it.

From there, save the file with the name and in the directory of choice.

I love Apple!

Stock Photo Site Free Range

2007-08-20T20:50:00.000-06:00

The Lifehacker blog recently wrote a post concerning the stock photography website Free Range as the site provides free stock photography for commercial and noncommercial use.

Free Range has in-house photographers and access to photo archives, but also accepts photo submissions. The company operates through an ad revenue generated model that is split with 80% of the revenue going to the photographers (note that this is only the advertisements on the photographer's page) and the other 20% being retained by the company.

As a blogger I find the site to be extremely useful as a photo or image definitely livens up a post, but I personally have a limited supply of photos that are usually based within a handful of subject realms. I find it particularly useful on the Wasatch Girl blog and for business postings as I usually don't have any relevant photos of my own.

The Due Diligence Process

2007-08-17T14:20:00.000-06:00

Due to the high volume of business plans a VC reviews, only approximately 10% will actually move into the due diligence process and be considered for an investment.

The due diligence process entails a thorough look at all aspects of the business including primary and secondary research and monitoring over a period of time, usually taking 3 - 6 months to complete. Everything from market size to customer calls to a number of meetings with management will take place. It is important for all business pieces to be thoroughly investigated, but three of which stand out at the time of investment:

Management
Market
Deal Structure

1) Management - It is a belief in the VC world that it is better to invest in a mediocre technology with a phenomenal management team, rather than a phenomenal technology with a mediocre team. The reasoning being that it is the team that lines up the deals, structures the business model, rolls the product out to market with accurate timing and keeps the passion alive in the business.

It is also common for venture capitalist to back the same entrepreneur in a number of different ventures if the entrepreneur has previously proven his/her talent.

2) Market - The market size and growth is obviously a needed variable due to the point that without a market there isn't a need for the product/service, nor the possibility of creating a profitable business that can create a return to the investors.

3) Deal structure - Deal structure contains many different variables many of which will be addressed in later posts. Mainly, the structure needs to make sense through its pre-money valuation by being in line with the market comparables and structured to allow the venture capitalist the opportunity for a return at the time of an exit. Complementary to the valuation is ownership. The venture capitalist expects a certain amount of ownership with an investment but wants to keep the majority for the founder and team to keep success as a motivating factor. If previous investors have taken too much equity it is real hard for a venture capitalist to come in without diluting the owner.

Business Plan Breakdown

2007-08-05T21:34:00.000-06:00

As an analyst for a venture capital firm, I read hundreds of business plans a year and assist our portfolio companies in keeping their business plans updated for further rounds of financing. I often am asked advice on how to compile a business plan and though there are numerous formats that can be used, below are the items I generally want to see included.

Executive Summary - this should be succinct summary, telling the reader everything she needs to know within a three - five page span. Mainly this subject should address why the company has been created and what problem it will be solving. If there isn't a problem needing an answer, consider going back to the drawing boards to think of another idea.
Overview - In this section the reader should discover the origins of the idea and a further explanation of the purpose of the innovation.
Technology - The entrepreneur will describe how the problem will be solved by explaining the implemented technology.

Thoroughly describe the technology including diagrams.
Answer why this technology is superior to the offerings on the market.
Include patents (provisional and issued) and explain with brevity the coverage of the scope. Referencing filing numbers is useful.

Product / Business Model

Explain the initial product, price points and how it will be rolled out to the market
Explain the pipeline of products and the timeframe of when each one will be commercialized.
Discuss the business model that will be used and the target audience, explaining why the model and audience chosen are the best solution.
If the company already has customers, these should be included.

Market

Explain the size of the market, backing up your numbers with research reports from top tier research firms (Aberdeen, IDC, Gartner, etc.). With early-stage innovative companies there is the possibility that your market is yet to be tapped and therefore not covered by the analyst firms. The entrepreneur might have to back into numbers by combining markets or creating their own calculations of the market size.
Discuss the annual growth of the market and the drivers that will continue to propel it forward.
Explain the market validation for the product(s).

Competition

Thoroughly discuss the direct and indirect competitors. The most useful comparisons are usually in the form of the Gartner Quadrant and / or a table that breaks down the characteristics in comparison to all other companies. It is useful to note which companies are venture backed and by which firms.
Address the company's competitive advantages with current competition
Describe the barriers for new competitors trying to enter the market

Management Team - list all management team members including thorough biographies. Include any position that will be filled upon financing.
Financials

Financials can be a quick deal killer. Entrepreneurs are enthusiastic about their companies, but this enthusiasm can often translate into aggressive financial projections. Remember that the market might not think your product is as great as you do and that there are a handful of risks that can occur. It is far better to bring very conservative numbers to a VC firm rather than a graph of the hockey stick growth. VC's can imagine wild growth, but don't fare well with extremely hopeful thinking.

Round of Financing Details

Describe how much the company needs and the use of the proceeds.
Some entrepreneurs like to "suggest" a pre-money valuation. This is acceptable, but if doing so make sure to base the value on recent industry pre-money comparables. It is usually best just to leave this information out of the business plan because it is the VC who will be setting the initial terms if they are interested.
If previous investors have been involved, include a capitalization table.

Exit Strategy

A VC operates through the returns produced by their portfolio companies. The company should list out when they plan to exit and through which medium.

One of the best ways to propel your business plan through the rankings of the venture capital firm is through an introduction, especially from an entrepreneur or other professional who has worked with the firm. A simple introduction will highly increase the probability that your plan will get off the analyst desk and into a partner's hand.

Utah Blog with Positive Vibes

2007-08-01T09:37:00.000-06:00

One of my favorite aspects about blogging is the positive nature that can be generated through posts and comments. A local Utah blogger has started weekly postings titled "Giving Props to My Peeps" where the writer, Thom Allen, writes about a person he has been impressed with during the last seven days. What a great idea! His posts can be seen here, here and here.

The Ten Thousand Villages Model

2007-07-27T12:31:00.001-06:00

I have blogged quite a bit about Ten Thousand Villages on my personal blog as I volunteer with the organization on a regular (usually weekly) basis. Today I thought I would post an entry on the WasatchGirl blog instead as not only do I enjoy the volunteer experience, I find the business model to be intriguing.

First, I post about Ten Thousand Villages as the Salt Lake location has recently moved. Due to the unfortunate Sugarhouse development, Ten Thousand Villages had to re-locate and as of today is open in its new location at 1941 South 1100 East (two store fronts north of the Sugarhouse post office). I would urge all readers to go and check out the new store as there is lots of new merchandise.

Second, the business model of this non-profit is interesting. Ten Thousand Villages was formed in 1946 and has grown from a grassroots organization (in the back of Edna Ruth Byler's car trunk) to a very well established company with 160 branches dispersed throughout the United States. The company's mission is fair trade and partners with more than 100 artisans overseas, providing them a fair wage in advance for the merchandise they supply. The materials are shipped to the United States and are sold at branch locations that are managed by (at least in the case of the Salt Lake store) two full time paid employees and one part time paid employee. The rest of the work (running the cash register, checking in merchandise, assisting customers, stocking the store, etc.) is done strictly by volunteers. Not only has this organization succeeded in running a retail store based around volunteer employees, but it has grown in the process.

I find the model to be interesting because:

The payment of artisans in advance provides the necessary capital for the artisans to work without needing to take out a loan or boot strap their operations
The default rate of artisans not providing merchandise (though unknown to me) must be low for the organization to continue payment upfront in environments with very little legal protection
Prices of merchandise are still reasonable even with the higher cost of goods, most likely being offset by not needing to pay volunteer wages
People will volunteer their time, enough to operate a retail operation, if they believe there is a good cause backing the organization.
The company has found a way to combat a social ill on a on-going basis.

To circle this back around to the venture capital perspective, there are a handful of successful for-profit organizations that are focusing on social issues (i.e. Tom's Shoes which has been bootstrapped to date). Financing such start-ups are a number of foundations and social venture capital firms, a handful of which are listed below:

Social Venture Capitalist: Acumen Fund, Benentech, NESsT Venture Fund, New Profit, Calvert Social Venture Capital Funds, VentureSome
Foundations: Echoing Green, Philanthropic Ventures Foundation, Ashoka, Google.org, Equity for Africa, Charitable Venture Foundation, Social Venture Capital Foundation, Entrepreneurs Foundation , Village Enterprise Fund
Microfinance shops: Unitus, DrishTree, SKS Microfinance
Other: Enterprise Works Business Development, SocialVC Business Plan Competition, Yale Business Plan Competition

The Value-Add Buzz

2007-07-26T17:12:00.000-06:00

Most venture capital firms pride themselves in being a "value add", contributing more than just capital to an entrepreneur's business. This term has become a loosely used buzz word, yet (all sarcasm aside) it is an important consideration for the entrepreneur to contemplate.

Venture capitalist are able to greatly contribute through the following:

A VC firm has dealt with hundreds of companies and seen thousands of business plans. This experience translates into high level operating knowledge such as strategy and product roll-out down to market research and competency of business plan construction.
VCs are well networked as the best deals are usually found through their contacts. This network works on the giving side as well as the receiving in the sense that many executive hires for portfolio companies and fellow co-investors can be generated through this web.
The fund portfolio can often contain companies with possibilities for synergies, which can easily be facilitated through the venture capitalist.
VCs are often up-to-date on changes in the industry and can update portfolio companies during board meetings.
Often venture capital funds are supported by advisory boards that consist of industry experts and successful entrepreneurs, willing to give advice to the VCs and CEOs.
Most likely the venture capitalist has been part of an exit, if not a handful of exits. This experience allows the VCs to guide an upcoming exiting company to an investment banker or strategic buyer and then help in the negotiation process.

The ideal situation would be for an entrepreneur to have enough time to analyze the venture capital firm as the venture capital firm completes its due diligence. An investment is definitely a marriage and needs to be contemplated from both sides. Yet this can obviously be easier said than done as often a business plainly needs capital to continue to operate.

Tom's Shoes: Shoes for Tomorrow

2007-07-25T09:24:00.000-06:00

I stumbled upon the great site of Tom's Shoes due to a post on the Lifehacker blog. Tom's Shoes, a company founded by Blake Mycoskie, focuses on addressing poverty and health issues by donating a pair of shoes to a child in need for each pair of shoes purchased.

The concept was conceived as Blake was traveling through poor villages in Argentina and realized that he could create a difference by forming a shoe company. He decided to fashion the shoe after the local alpargatas but with bold colors and artistic styles. He spent two months seeking Argentina fabric and shoe makers and debuted a collection of 15 styles in June 2006. By fall of 2006 he had sold 10,000 pairs of shoes and gave away 10,000 pairs with a handful of volunteers alongside 2,200 miles of Argentinan countryside.

As of February of this year the self-financed company had orders from 300 stores and was turning a profit. On top of that, 240 customers had offered to pay to go volunteer resulting in Mycoskie starting to create a sister company that will offer $2,000 vacations consisting of two days of sightseeing and 4 days of volunteering.

Mac Tool: CombinePDFs

2007-07-18T13:28:00.000-06:00

I came across a fantastic Mac tool today due to this LifeHacker blog post. The tool, CombinePDFs, has the same functionality as Adobe Acrobat but is free. I have the need to combine or edit PDF's on at least a weekly basis and without a PDF editing tool the only way I can merge documents is to first combine in Word and then turn the whole document into a PDF. Needless to say, it is an utter pain and sometimes word documents of the PDFs are no longer on file.

I saw the blog post for the freeware on a day (today) in which I had a need for such a product. I downloaded, tested it and was pleasantly surprised. The tool edits the documents in a different structure than Acrobat as it brings up a box with the pages listed and the options to add files, remove pages and merge documents, rather than the Acrobat version that allows the user to view the document and changing the page layout by actually dragging the thumbnail of the page to its new destination.

(Note that I borrowed this picture from the LifeHacker blog.)

This edit structure isn't as convenient as Adobe Acrobat because Acrobat shows the actual PDF whereas CombinePDF gives the user only the picture above, forcing the user to know the pages that needed to be edited prior to being able to view the document layout. Sure it is a little hiccup, but it is one thousand times better than my current solution and so I will use it with a smile.

Video Hosting Companies

2007-07-13T15:34:00.000-06:00

I recently started to use YouTube to watch videos, but to also upload my own videos for my personal blog. I have had many problems with YouTube not uploading the video correctly or at all, being one of the first times a Google product (though acquired) has sincerely let me down. After four attempts on one video I went to competitor PhotoBucket where I was pleasantly surprised at the quick upload and little hassle.

There are many companies in this space and so I thought I would throw out the question of which ones you readers have used and any feedback. Are there certain characteristics that make one company better than another for the consumer? I am not savvy when it comes to video and so any feedback is appreciate.

Trackback: Donating Blood

2007-07-08T20:30:00.000-06:00

Posted an entry about donating blood in Salt Lake City on the CragBaby Blog.

Two Different Blogs = A Bit of Confusion

2007-07-08T20:09:00.000-06:00

I post on two different blogs, WasatchGirl and Cragbaby. The WasatchGirl is focused on my work while CragBaby (named after my little pooch) highlights my personal life. However, sometimes there are posts that are applicable to both sites if it is a musings that I would enjoy a wide range of commentary. So, when one such posts occurs, I am going to put a trackback on the other blog. Just an FYI....