Tuesday, March 29, 2011

personal finance budgets





Another day, another honking big funding for another online start-up (and yet another broken embargo too!).


It’s like Groundhog Day in Silicon Valley as usual.


Today, Cambridge, Mass.-based HubSpot wins tech’s version of the lottery, grabbing $32 million from Sequoia Capital, Google Ventures and also Salesforce.com.


It is unclear what the valuation for HubSpot is now, although it is likely high given it has raised $65 million now.


HubSpot makes marketing software for businesses, who use it to find prospects and generate leads, along with tools to analyze the process. It claims it has “4,000 customers, over 50 percent market share, five million leads managed, and 70 million page views tracked monthly.”


The Series D financing included HubSpot’s existing venture investors–General Catalyst Partners, Matrix Partners, and Scale Venture Partners–and part of it will be used to cash out existing shareholders. In previous rounds, the start-up has raised $33 million.


Here is the official press release:


Sequoia, Google Ventures, and Salesforce.com Invest $32 Million in HubSpot

Marketing Software Company Attracts New Strategic Investors


CAMBRIDGE, MA–(Marketwire – March 8, 2011)–Today, for the first time ever, Sequoia Capital, Google Ventures and Salesforce.com all invested together in one company, providing HubSpot with a Series D round of financing through a $32 million investment. HubSpot provides all-in-one marketing software used by over 4,000 businesses to get found by more prospects, convert them into leads and sales, and analyze the entire marketing process.


“The fundamental way that people shop, learn, and buy has changed radically in the last few years. HubSpot helps transform the way businesses market from outbound marketing (cold calls, email blasts, and direct mail) to inbound marketing (Google, blogs, social media, mobile, etc.),” said Brian Halligan, co-founder and CEO of HubSpot.


Sequoia Capital has a long history of partnering with founders to help them build long-term, multi-billion dollar companies, including Google, LinkedIn, AdMob, YouTube, Yahoo!, Apple, and Oracle. “We back companies that are transforming their industries,” said Jim Goetz, General Partner at Sequoia Capital. “HubSpot is the emerging category leader in the SaaS marketing sector. Their customer base exceeds that of all the other relevant marketing software companies combined, including Eloqua, Marketo, Genius, and Manticore.”


“Today, every company needs to succeed in search, social, sales, and marketing–I can’t think of a more powerful trifecta than Google, Salesforce.com, and HubSpot. With 4,000 customers, HubSpot is already a clear marketing leader–now, with this new infusion of capital and recognition by Google’s venture arm and Salesforce.com, HubSpot has a great opportunity to separate itself from the pack and become the leading marketing platform in the small and medium business space,” said Brent Leary, co-founder of CRM Essentials.


Google Ventures Partner, Rich Miner (formerly co-founder of Android) said, “We agree with HubSpot’s belief that search engines, social media, and mobile devices have fundamentally changed how businesses should market themselves. We’re thrilled to support their efforts to help thousands of small and medium businesses reach potential customers.”


Dharmesh Shah, co-founder and CTO of HubSpot commented, “We founded the company based on a simple premise: Businesses want an easy-to-use, complete and integrated marketing platform that helps them get more leads and customers. We plan to use this new capital to further invest in this ambitious vision and further our existing lead in the marketing software category.”







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For Apple, the mobile market is a cash cow. The company’s iPhone and iPad are proving to be the top mobile companions for people around the globe. Apple has sold over 100 million iPhones. Its iPad sales have hit 15 million. The company understands the mobile market and it knows how to capitalize on it.




But what about the living room? It has the Apple TV, sure, and the Mac mini is often times connected to an HDTV, but what else has Apple done to push the envelope in the living room? It still hasn’t launched the long-rumored television we keep hearing about, and it seems that offering a game console — a hope for many Apple fans over the past few years — won’t happen.


I fully realize that Apple can’t be everything to every customer. It delivers computers, smartphones, tablets, personal media players, two operating systems, wireless routers, and much more. But I also realize that Apple is an entertainment company. It’s about trying to give people more opportunity to enjoy their lives through technology. And it would only make sense if it doubled down on the living room.


Let’s turn our attention to the Apple TV for a minute.


Prior to its announcement in September, rumors were running rampant over what the former “hobby” would offer. Folks thought it would deliver gaming, interface with DVRs, include Apple’s App Store, and much more. They thought it would be a sizable update over its predecessor.


Instead, Apple offered a stripped-down alternative.


The second-generation Apple TV comes with the ability for users to stream Netflix content. It has Flickr and Internet radio. And it allows users to stream their music over their home network to their televisions. It offers movies and television shows, as well, but most would agree that it’s slim pickings for now.


At that event in September, Steve Jobs said that Apple’s research showed customers didn’t want everything a company could pile into a device. They simply want the ability to consume the content they enjoy without the fuss that might come along with something like Google TV-based devices.


But by delivering the bare minimum, Apple did itself no favors. The company took the easy way out and pretended like it no longer views the living room as a hobby. The only issue is, the Apple TV is still a hobby. It’s a device that lacks all the functionality we’ve come to expect from Apple — a company that typically prides itself on offering the best value for the cash. And at least so far, it leaves me wanting more.


So, what am I looking for? I want to see Apple improve the Apple TV by bringing its App Store to the platform. I’d also like to see some kind of gaming component come to the device, either through the App Store or as part of a more-capable platform.


And perhaps most importantly, I’d like to see Apple think beyond its set-top box and deliver products that try something new. I’m not sold on the possibility of Apple offering a groundbreaking television, but if it can surprise me, I’m all for it.


Simply put, I’m looking for Apple to be Apple. Right now, it’s just like every other company in the living room; it’s content to have a presence but not dominate.


That needs to end.


No single company can stake claim to the living room right now. Steve Jobs just needs to take advantage of that void and do something special.


But first, he needs to take the living room — and its revenue potential — seriously.









For Apple, the mobile market is a cash cow. The company’s iPhone and iPad are proving to be the top mobile companions for people around the globe. Apple has sold over 100 million iPhones. Its iPad sales have hit 15 million. The company understands the mobile market and it knows how to capitalize on it.




But what about the living room? It has the Apple TV, sure, and the Mac mini is often times connected to an HDTV, but what else has Apple done to push the envelope in the living room? It still hasn’t launched the long-rumored television we keep hearing about, and it seems that offering a game console — a hope for many Apple fans over the past few years — won’t happen.


I fully realize that Apple can’t be everything to every customer. It delivers computers, smartphones, tablets, personal media players, two operating systems, wireless routers, and much more. But I also realize that Apple is an entertainment company. It’s about trying to give people more opportunity to enjoy their lives through technology. And it would only make sense if it doubled down on the living room.


Let’s turn our attention to the Apple TV for a minute.


Prior to its announcement in September, rumors were running rampant over what the former “hobby” would offer. Folks thought it would deliver gaming, interface with DVRs, include Apple’s App Store, and much more. They thought it would be a sizable update over its predecessor.


Instead, Apple offered a stripped-down alternative.


The second-generation Apple TV comes with the ability for users to stream Netflix content. It has Flickr and Internet radio. And it allows users to stream their music over their home network to their televisions. It offers movies and television shows, as well, but most would agree that it’s slim pickings for now.


At that event in September, Steve Jobs said that Apple’s research showed customers didn’t want everything a company could pile into a device. They simply want the ability to consume the content they enjoy without the fuss that might come along with something like Google TV-based devices.


But by delivering the bare minimum, Apple did itself no favors. The company took the easy way out and pretended like it no longer views the living room as a hobby. The only issue is, the Apple TV is still a hobby. It’s a device that lacks all the functionality we’ve come to expect from Apple — a company that typically prides itself on offering the best value for the cash. And at least so far, it leaves me wanting more.


So, what am I looking for? I want to see Apple improve the Apple TV by bringing its App Store to the platform. I’d also like to see some kind of gaming component come to the device, either through the App Store or as part of a more-capable platform.


And perhaps most importantly, I’d like to see Apple think beyond its set-top box and deliver products that try something new. I’m not sold on the possibility of Apple offering a groundbreaking television, but if it can surprise me, I’m all for it.


Simply put, I’m looking for Apple to be Apple. Right now, it’s just like every other company in the living room; it’s content to have a presence but not dominate.


That needs to end.


No single company can stake claim to the living room right now. Steve Jobs just needs to take advantage of that void and do something special.


But first, he needs to take the living room — and its revenue potential — seriously.








Surface Encounters

Surface Encounters

What’s affecting me, my clients and other small-business owners this week.


THE QUAKE IN JAPAN, A GOOFBALL IN VENEZUELA Japanese earthquake damage is estimated at $310 billion and could be the costliest natural disaster ever. Japanese exports suffer. Kate Rogers of Fox revisits how to protect your business from catastrophe. “Small-business owners can determine if they should be seeking disaster coverage by weighing their investment in the business itself, among other factors. If the business is the sole form of income, the risk is much greater than if it is a hobby or part-time project.” Elsewhere around the world, the war industry gets a boost in Libya. And Hugo Chávez of Venezuela says capitalism may have destroyed life on Mars.


REAL ESTATE FALLS, JOBS RISE Mark Thoma says commodity prices are increasing because of world demand. A small-business owner in Georgia is trying not to pass on the cost of high gas prices. Detroit’s population declines 25 percent. Existing-home sales fall to the lowest on record. Meredith Whitney, an investment adviser, says, “Unless the government comes out with a 50-year mortgage, this market is in trouble longer term.” Gallup’s job-creation index is the highest since September 2008. Durable goods orders fall.


ANNE HATHAWAY AND WARREN BUFFETT The Fed earns $79 billion and predicts that the recovery is taking hold. Nonetheless, one of its officials warns that the United States is approaching insolvency. Meanwhile, Warren E. Buffett predicts growth but some think his company’s stock is buoyed by Anne Hathaway. Household balances sheets continue to improve. Scott Grannis says “the Philadelphia Fed Business Outlook Survey came in very strong. It hasn’t been this strong since the economic boom times of the early 1980s. It’s very difficult to ignore the mounting evidence of a strong economic recovery.” Architect billings increased slightly in February.


DEFICIT THRILLS The Committee for a Responsible Federal Budget is thrilled to see 64 senators calling for comprehensive deficit reduction. But Stan Collender, a budget expert, isn’t thrilled at all: “Does a letter that is so vanilla that it could have been written at any time over the past 40 years really indicate any movement on the current budget debate?” James Pethokoukis of Reuters says he thinks President Obama’s budget is wildly dangerous.


A NEW DEFINITION OF SMALL BUSINESS Timothy F. Geithner says that American small businesses need greater access to capital to spur innovation. The Small Business Administration, facing even more cuts, is for the first time in more than 25  years proposing to change the way it defines small businesses. JPMorgan Chase says it will cease its debit card rewards program because of new legislation that would restrict fees. Missouri gets $27 million in incentives for small-business growth. The Small Business Savings Account Act makes its way through Congress.


TAKING CREDIT The health care legislation celebrates its first anniversary and Ezra Klein defends it by saying, “Is it a perfect piece of legislation? Not even close. Will everything work as expected? Almost certainly not. But for all its flaws, it’s a good law. And it’s worth trying.” Many small businesses are still not taking advantage of the health care tax credit.


TECHNOLOGY UPGRADES A Google project manager pitches cloud computing: “Web-based software is much less costly for buyers than traditional software, and programmers can be so much more innovative, that it’s worthwhile for an entrepreneur to say, O.K., let’s start from scratch.” Paul Mah, an information technology expert, gives us eight reasons to upgrade to Internet Explorer 9. Firefox 4 is released. Microsoft jumps to second in video search and introduces a new PC tool for small business. Netflix suffers an outage. BlackBerry’s tablet is scheduled to arrive in April. AT&T buys T-Mobile but not for the reason you think. And boy. has computer technology come a long way in 10 years.


THE GROWING APPS MARKET Information Week reports that 38 percent of small- and medium-size businesses depend on mobile apps. Amazon introduces an Android app store, and Apple is not pleased. Minda Zetlin of Inc. asks if you should make a tablet app for your business: “The answer is likely a yes if one, your product or service is one where having tablet access could benefit customers; and two, your customers are the type who use tablets.” Just in time: a flood of royal wedding apps.


SPEAKING OF THE BIG WEDDING General Electric releases a much-needed William and Kate refrigerator. Jack Daniels introduces a new product — perhaps to help us forget the royal wedding. Danny Wong gives us three winning ideas to consider. A dating site features a new single man every day. Score plans an e-business learning Web site for small business. Small Business Television is rebranding itself and has introduced a new Web site. Small Business Opportunities magazine is doing the same. A small business introduces its first electric car. Sales of e-books have doubled. The group buying industry is projected to grow to $2.7 billion this year.


TWITTER’S TAX BREAKS Casey Hibbard explains how one company used social media to make $300,000 in a weekend. Robert Scoble discovers the future of work: “Just when we thought we figured out the new ’social enterprise’ market along comes Convofy.” Twitter shows San Francisco’s businesses how to save a bundle on taxes. A one-legged wrestler shows us how to become a national champ.


IT’S GOOD TO BE GREEN A woman in Canada gets a standing ovation for being green. The Manhattan Chamber of Commerce holds its green marketing event on Wednesday. The Clinton Global Initiative holds its university conference this week with a focus on entrepreneurship and a live webcast.


ADVICE FOR SXSW: HAND OUT PILLOWS The Global Entrepreneurship Congress meets in Shanghai this week. April 2 is International Pillow Fight Day. The South By Southwest conference: as seen from a bunch of social media video bloggers — which is yet another reason I won’t attend next year. American Airlines offers a big promo for California business travelers. John Jantsch wants to know the worst business advice you ever received. A third-base coach gives life advice.


SEARCHING FOR HELP WITH SEARCH An American Express survey finds that more than half of small-business owners say they need help with search-engine marketing. A video about why it’s not important to go viral goes viral. Dharmesh Shah shares a few low-cost advertising ideas for start-ups and cautions readers to “think of advertising not as a long-term traffic strategy but as a testing tool to improve your Web site and find out more about your ideal visitor.” An advertising blog discusses how to develop a relationship with the media. Lucy Thornton comes up with a few good marketing themes for April.


A 100-MILLION-MEMBER NETWORK LinkedIn officially reaches 100 million members. Seems like a good time to read the co-founder’s 10 rules for entrepreneurial success.


TRIED TALKING? Whitson Gordon of Lifehacker gives us his top 10 tricks for working while on the go. Example: “Whether it’s that old, dead iPod or the smartphone you’re already carrying with you, you probably have gigs of unused storage lying around waiting to be filled with portable apps, files and other digital travel necessities.” Melanie Brooks of Workawesome.com explains why she uses a leather day planner instead of a smartphone. Greg Schinkel warns against hiding behind our keyboards: “Before you hit ‘reply to all’ and send back a zinger to someone who maligned you, stop and go talk to the person.”


THIS WEEK’S AWARDS


BEST WAY TO GET YOUR CUSTOMERS TO LOVE YOU Ben Yoskovitz talks about the benefits of delighting your customers: “The rewards are immense. Loyal, rabid fans tweet shamelessly about how incredible you are, how valuable your Web application is and how successful your start-up will be.”


BEST WAY TO MARKET WITHOUT A BUDGET Shisha Dublin-Green explains how to market without a marketing budget: “Form an alliance: if you have a hair salon that’s mostly frequented by women with young children and elderly women, you can offer a service whereby you arrange to do their grocery shopping whilst they’re in the salon. You may decide to form an alliance with a local reputable grocer or delivery service to provide this for your customers. This could also be a way to reach out to new customers via your local grocer.”


BEST ADVICE FOR BOOTSTRAPPERS The Smart Bear says that the things money cannot buy are still the most valuable things: “Show proof of your ability to master the things money cannot buy — your ability to learn, change and improve.”


THIS WEEK’S QUESTION: How do you bring in customers without spending a lot? We do free webinars every month.


Gene Marks owns the Marks Group PC, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.




It looks like women have caught up with men in numbers in the workplace. For the first time in history, women in the USA now outnumber men in the workforce, and there are now more women in supervisory positions than there are males. The question is whether they will handle the downside of working any better than men.



According to an article by Ella L. J. Edmondson Bell, Ph.D., titled The 21st Century Workplace -- Are Women the New Men?, the economic downturn has hit men harder. They held nearly 80 percent of jobs that have been lost during what is now being called the "mancession." Will women now inherit the stress, pressure, exhaustion, burn out and heart attacks commonly associated with male leaders in business?



Some predict that this new female-dominated workplace will mean a softening of the corporate culture, with more benevolent leaders. Others foresee just the opposite. Ella says many women don't want to be seen as "soft" -- and others simply aren't. No one would call Carly Fiorina, the head of Hewlett Packard from 1999 to 2005, a wilting lily. According to her memoir, Tough Choices, she was sometimes referred to as Chainsaw Carly.



All of this is especially relevant on the entrepreneurial side, since statistics show that women are starting businesses at more than twice the rate of their male counterparts. Some would argue that the growing success rate of women entrepreneurs shows that they are resourceful, and better able to succeed, despite the odds.



While I'm sure we will continue to see progress on the female side, I predict that they will struggle with the same major challenges faced today by men. These include:




  1. Funding your dream. Raising money is hard, whether you are counting on friends, investors, or banks. I rarely see women at angel investment groups, either asking for money, or offering to fund new ventures. Men seem more focused on this one.



  2. Need for increased confidence and mindset skills. Many women and men are paralyzed by perfection, plagued by pessimism, and the need to satisfy others, rather than themselves. We need more women leaders.



  3. Motivation to succeed. Every entrepreneur needs to love what they do, and believe so strongly in their product or service that they can weather the tough times. On this one, it's easy to spot the ones with passion, from either gender.



  4. Manage time and priorities. Women, often more than men, try to do too much. It's hard to balance the continual demands of the business, personal relationships, and home life. Every entrepreneur needs to prioritize the important tasks ahead of urgent tasks.



  5. Never stop learning. After you start your business, the learning really begins. True entrepreneurs look at failures as their best learning experiences. Networking, and using your network is the next most important element of learning.



I don't see any challenges which are so gender specific that they can't be overcome by any entrepreneur. Yet I don't think women should be convinced that the battle for equality is almost over. There is still the question of why there are so few women in high places, and why the average income for women in business is about 68% of men's income.



What I am hoping is that women will not just be the new men, and suffer from the same maladies and limitations. I'll be looking for women to create the "new business culture" that every worker wants -- better role definitions, more effective and productive leadership, and better work-life balance. That would make women entrepreneurs the new women, rather than the new men!






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