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    NSS Labs Raises Funding From Texas Venture Growth Forum

    A critical step for companies seeking growth-stage investment is making connections with venture capital firms and other investment groups who are looking to get involved in promising businesses. That’s been especially true for companies in Texas for years, as the lack of a conference that could bring founders concentrated in Texas together with potential funders. Thankfully, that has changed after the first annual Texas Venture Growth Forum – a conference held in Austin and presented by Texas Entrepreneur Networks and Hermes Investment Group – that served as a two-day “speed dating” event for entrepreneurs and investors. Many connections were made between representatives of the 27 companies and 42 investors who attended, with a recently announced Series B investment of $16 million in Austin-based NSS Labs as one of the biggest success stories from the gathering. That deal saw LiveOak Venture Partners and Delta-v Capital team to help NSS Labs continue to grow as a leader in the information security industry. Venu Shamapant, a general partner with LiveOak, selected five businesses his company had early stage investments in to attend the conference in hopes of finding partners who could help them grow to their full potential. “We’d identified the best companies that were in the right stage to get in front of people who were looking to become involved in a growth-stage company,” Shamapant said. “For some of them maybe it wasn’t exactly the right time to do a deal, but they got to start building relationships with late-stage firms and that makes it easier to re-engage when the time is right.” Shamapant said the conference and its emphasis on capital for Series B and growth will help the investment climate in Austin and Texas as a whole move beyond its recent emphasis on startups and early stage funding. “The focus has been on been on early stage companies, but you think of it sort of like a pig moving down the snake… now there are companies that have progressed to the Series B stage,” he said. “The conference is focused on fixing that and being a catalyst so more interactions happen and people are talking to each other continuously.” Dan Williams, vice president of Delta-v with offices in Dallas and Boulder, said he went into the conference looking for companies with more than $20 million in revenue and operating at or close to break-even financially. NSS Labs fit that profile and is concentrated in information security, which has been an interest of Williams for many years. He said he and other investors were pleased to learn that Texas finally had a geographically focused investor conference akin to similar events in cities like San Diego, Atlanta, and Denver. “It’s great to see a community coming together there and for a tech hub that’s as prominent as Austin is, it’s great to have an event that brings the right people together,” he said. “A conference is nice because the leads are immediate and you can move forward from there, whereas most other times deal flow comes from relationships and networks and that is a much longer process for everyone.” The timing of the fall 2015 conference was perfect for NSS Labs’ CEO and president Vikram Phatak and his management team, who had just decided to pursue a Series B round. The $16 million from LiveOak and Delta-v will let the company expand its offerings, build its customer base and grow its headcount from 70 employees to more than 120 by 2019. Phatak said the conference setting offered a “pre-filtered” selection of possible investment partners, with 15 meetings that eventually led to a deal. “A conference allows you to very efficiently check off the ‘no’ box for a lot of people, so you can be as efficient as possible with your time and focus,” Phatak said. “What it did for us is put us in front of people who had an interest but who we might not have met otherwise.” With the Austin and Texas entrepreneur community being fairly close knit, Phatak expects word about the advantages of attending to grow as the second event nears. “I know several smaller companies that as the conference gets closer I’ll reach out to their investors and encourage them to have their companies go to it,” he said. “You look at something like TechCrunch in the bay area and that’s a place where deals happen, and it gets a reputation, and then more deals come about because of that.”  

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    Top Investors in Texas HR Technology

    Technology is changing the way HR operates in the modern world. Here are the top 10 investors in Texas HR Technology companies. The top 10 companies are Accel Partners, Techstars, Right Side Capital Management, Greylock Partners, Austin Ventures, Social Starts, TCV, Salesforce Ventures, IDG Ventures USA and Silverton Partners. Company Name Description Headquarters Location Accel Partners Accel is a leading early and growth-stage venture capital firm, powering a global community of entrepreneurs. Palo Alto, California Techstars Techstars is a Worldwide Network that helps entrepreneurs succeed. Boulder, Colorado Right Side Capital Management Right Side Capital Management invests in capital-efficient, seed-stage technology startups across the U.S. in every technology sector. San Francisco, California Greylock Partners Greylock Partners backs entrepreneurs who are building disruptive, market-transforming consumer and enterprise software companies. Menlo Park, California Austin Ventures Austin Ventures is a venture capital firm investing in early stage and middle market companies. Austin , Texas Social Starts Social Starts is a $60M+ venture partnership that invests at the moment-of-inception and Series A. San Francisco, California TCV Founded in 1995, TCV is a leading provider of capital to growth-stage private and public companies in the technology industry. Palo Alto, California Salesforce Ventures Salesforce Ventures invests in the next gen of enterprise tech to help companies connect with their customers in entirely new ways. San Francisco, California IDG Ventures USA IDG Ventures USA is an early-stage venture capital firm for enterprise IT and consumer founders. San Francisco, California Silverton Partners Silverton Partners is people-driven in their investment strategy. They back exceptional teams who not only have the talent to identify and execute on exciting opportunities but can also pull off the mid-course corrections that are inevitably required in an early stage company. They focus on executive leadership, execution ability and domain expertise in our assessment of teams. Austin, Texas  

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    The Top Ten HR Technology Companies in Texas

    HR Technology is changing the way HR operates in the modern world. Here are the top 10 Texas companies to keep your eye on. These companies include OneSource Virtual, YouEarnedIt, BountyJobs, Pingboard, Workify, Insperity, BullseyeEngagement, SafeGuard World International, BenefitMall and Clearview Staffing Software. Company Name Description Headquarters Location OneSource Virtual OneSource Virtual is a Workday Services Partner and global leader in deployment, consulting and BPaaS services exclusively for Workday. Irving , Texas  YouEarnedIt YouEarnedIt is the leading HR SaaS company that improves bottom-line performance metrics by enhancing the employee experience. Austin , Texas BountyJobs BountyJobs is the leading software technology for employer and recruitment agency collaboration. Austin , Texas  Pingboard Pingboard is a real-time, collaborative org chart that makes it easy to organize teams, plan for growth, and keep everyone informed. With Pingboard, your org chart is always within reach and up-to-date, replacing static org charts made with tools like Visio or PowerPoint. Austin , Texas  Workify Workify is the all-in-one people management platform that helps managers shape a culture that drives performance and improves business. Austin , Texas Insperity Insperity (formerly Administaff), a trusted advisor to America’s best businesses for more than 25 years, provides an array of human resources and business solutions designed to help improve business performance. Kingwood, Texas BullseyeEngagement BullseyeEngagement is a leading global management solutions company that optimizes the employee and operational performance of organizations. Using advanced cloud based technology; Bullseye provides trendsetting, non-form based systems for the measurement of employee and organizational performance. Houston, Texas SafeGuard World International SafeGuard World International provides smart global payroll and employment outsourcing solutions for managing an international workforce. Austin, Texas BenefitMall BenefitMall is the fastest growing provider of integrated payroll and employee benefit products and services. Through equity financing led by Austin Ventures, BenefitMall and CompuPay merged in 2012. Dallas, Texas Clearview Staffing Software Clearview Staffing Software develops business solutions designed exclusively for the healthcare staffing industry. Addison, Texas  

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    The Top Ten Security Companies in Texas

    As technology advances, so does the need for security, here we list the top ten security companies in Texas. These companies include Alert Logic, Huawei Technologies, Armor,Eagle Eye Networks, iSIGHT Partners, AllClear ID,Giant Gray, Edgile Inc.,CSID and Click Security. Company Name Description Headquarters Location Alert Logic Alert Logic provides Security-as-a-Service solutions that secure the application and infrastructure stack of the cloud. Houston , Texas  Huawei Technologies Huawei Technologies provides infrastructure application software and devices with wireline, wireless, and IP technologies. Plano , Texas Armor Armor is a cyber defense company that offers customer-centric security outcomes for e-Commerce, healthcare, and financial institutions. Richardson , Texas  Eagle Eye Networks Eagle Eye Networks delivers cloud based security and operations video management system providing both cloud and on-premise recording. Austin , Texas  iSIGHT Partners Since 2007, iSIGHT Partners has been recognized as the leader in cyber threat intelligence. Dallas , Texas AllClear ID AllClear ID is the leader in customer security, helping business prepare for, respond to, and recover from data breach events. Austin, Texas Giant Gray Giant Gray develops scalable solutions that automatically identify suspicious activity from video surveillance systems. Houston, Texas Edgile Inc. Edgile Inc., a security and risk consulting services firm Austin, Texas CSID CSID provides global identity protection and fraud detection technologies for businesses and their employees and consumers. Austin, Texas Click Security Click Security provides security analytics for enterprises, critical infrastructure, and government agencies to protect their networks. provides security analytics for enterprises, critical infrastructure, and government agencies to protect their networks. Austin, Texas  

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    How to Achieve Market Positioning

    When investors look at a startup, the one thing they want to see more than anything is revenue traction, or momentum.  The first step to building excitement in your startup is often to… Get the word out- While a traditional PR route can certainly help generate interest in your startup, investing big money may not be the most prudent move, especially at this stage.  Luckily, by taking a do-it-yourself approach, you can still launch an effective campaign.  The key to generating buzz in the press is building relationships – with bloggers, reporters, and anyone who can put the word out about your startup. The best way to do this is to give the press what they need – a good story, insightful quotes, and on-topic content.  You can add to your value as a press contact if you can also… Be an expert in your field- Knowing your space, the market players, and the latest developments in your field can help you be a go-to source for content, and allow you to build relationships in the press and beyond. Strive to be at the top of your niche—the more recognition you can get as a knowledgeable insider, the better your reputation, and the more attention your startup will receive.  Don’t be afraid to specialize, if that helps you stand out, but also don’t hesitate to… Follow the trends- Pay attention to the latest trends – what types of companies are getting funded, and why? Then do your best to innovate—whatever is working, try to do that different and better.  In other words, your product should be both relevant and distinctive.  To get this across to the market, you need to… Build a brand- Good branding is critical, and will help you stand out in a crowded field. In marketing, be clever, and consider the unconventional.  Don’t be above a publicity stunt, but only if it is cost-effective, and in-line with your overall strategy. Offer value through content marketing that will educate and entertain. Whatever you do, you must develop a target market and… Know your customers- Undoubtedly, the biggest key to gaining revenue traction is building your customer base, and to do that you must know who they are. What do your customers want? How are you helping them, and how are they using your product? What are their interests, and where can you find them? Cultivating word-of-mouth is fine, but make sure you have a complete marketing strategy as well. Revenue traction, simply put, is when your company starts earning money through organic transactions. It shows that your product is in demand.

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    Courtney Turich and Christie Barany describe using Shark Tank to help launch Monkey Mat

    Courtney Turich and Christie Barany met in Michigan where they both worked for Stryker, a medical device company.  They worked well together and decided to start their own business. They co-founded Monkey Mat after Christie unexpectedly got stuck at the airport for six hours and desperately wanted something to cover the floor – but had to be portable – for her children to play on during the layover.  Courtney wanted a similar solution for her active outdoor lifestyle.  After searching for solutions and surprisingly nothing existing on the market, the two decided to create their own product. When they started the business in 2012, they set as a top goal to go on Shark Tank. They submitted an application online and received a call from a producer for a phone interview.  This led to several rounds of more comprehensive application forms and video submissions, including a request from Shark Tank producers for a five minute video answering twenty questions.  Ultimately Courtney and Christie were invited to film in June. When they arrived at the studio, they met with ABC’s attorneys for hours to review the extensive legal aspects of being a part of Shark Tank. They also had to do a practice pitch to about 50 producers from which they received feedback on their presentation.   On the day of the show they sat in their trailer on-set all day after hair and makeup until it was their turn to film.  When they walked into the “Tank”, they saw the “Sharks” for the first time.   At the time they had $40K in annual revenue.  Within two weeks of the show’s airing, they nearly doubled their sales. You can see the pitch here! Shark Tank Video While going on Shark Tank gave them an initial boost in sales numbers, they then experienced a slight drop in sales after the initial “Shark Tank effect” had worn off.  The activity of Shark Tank can distract from building other sales channels.  Since penetrating a retail channel takes up to a year of advance planning before actually having product placed in stores, focused attention on the process is a must.  Given the post-Shark Tank whirlwind, the ability for such attention was delayed, so there was effectively a rebuilding period after the lull to ramp up retailer presence.   As for their Shark Tank investors, Lori Greiner helped them secure a feature on the talkshow “The View” and has assisted with their placement into key retail channels.  Mark Cuban and his team have also helped identify retail opportunities, co-presented the product live on TV shopping network ShopHQ, as well as provided backend support along the way, so the value of the investors has gone well beyond just funding. As a consumer product goods company, they sell primarily on Amazon and through retail chains.  According to Christie and Courtney, packaging that effectively conveys the product and it’s value to the customer is a key point for penetrating the in-store retail market.  Courtney and Christie first started with belly band packaging, but unfortunately it did not effectively show off the product, so they shifted to a shelf box format which allows customers to actually visualize the product itself.   Today, they are in Bed Bath & Beyond, buybuy Baby, The Container Store, Big 5 Sporting Goods, and more. They are now working on their next product line called Fur-eez, focused on portable and convenient solutions for pet owners.  The debut product is a portable pet sling for small dogs. Courtney and Christie advise to entrepreneurs You don’t know what you don’t know –  don’t get paralyzed by the fear of the unknown, you will learn plenty as you go! Ask a lot of questions – the more the better, and talk to anyone and everyone! Just do it – products and businesses will constantly evolve, so at a reasonable point you have to just get underway with the journey!  

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    Better Care at a Lower Cost, by Mark McClellan

    Better care at a lower cost.  That’s been health policy expert, Mark McClellan’s mantra for years. Finding ways to get payment and regulatory policies to support better care and a lower cost is what McClellan does. “That’s very much part of the current expansion of efforts to move to payment models that are based more on results and value,” he says. McClellan discussed the transition toward value-based health care delivery in his keynote speech “The State of Health Policy” in Austin at HealthCare Texas 2016, an annual conference bringing together more than 300 leading innovators in healthcare information technology, life sciences, and therapeutics. “A lot of these payment reforms are about giving health care providers more flexibility in doing what they think is working with their patients and is best for their patients’ outcomes, but at the same time, since resources aren’t unlimited, having more accountability for results,” McClellan says. In December of 2015, McClellan, who served as head of the U.S. Food and Drug Administration from 2002 to 2004, joined the faculty at Dell Medical School at The University of Texas at Austin to advance the school’s mission of redesigning health care around value. McClellan says that while his primary basis with UT is its new health policy center, he’s working with Dell Medical School on an ongoing basis as they take steps to implement new health care trends and ideas into the curriculum. “One advantage of being a new medical school is that you don’t have to do things the old fashioned way,” McClellan says. “The leadership of the medical school has undertaken a tremendous effort to ask fundamental questions like ‘What kind of education do physicians need to practice in a future medical system that is hopefully going to be much more about better care at a lower cost?’” Dr. Clay Johnston, inaugural dean of the Dell Medical School, said McClellan’s work will support efforts to revolutionize the way people get healthy and stay healthy. “Mark has been a national leader in conceptualizing how to build a better health care system, and now he can really accelerate the pace in putting that system in place,” Dr. Clay Johnston said of McClellan after he was hired at UT. Another one of McClellan’s objectives has been to help provide better information on the quality of care. McClellan says in recent years there has been much support for more transparency regarding prices and quality health care. “I think there’s a lot promising work going on, including by some early stage companies, to help turn all of this health care data into information that’s really useful for patients and physicians and other health care providers that are guiding their decisions,” McClellan says. McClellan notes that it’s very difficult to take raw information from claims data and convert it into a confident, accurate measure of the total cost of care that a patient faces. “It’s not just a matter of what shows up on an insurance claim but things like: ‘Did a patient have a better functional outcome after surgery? What was the outcome of cancer treatment for a patient with an advanced cancer?’” McClellan says the good news is we’re making progress. “It’s an area where there’s been a lot of recent investment by health information companies providing patient-oriented and actionable analytic information on quality and cost of care,” he says. “I hope we continue to make further progress there.”

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    Are You Ready for an Advisor? 5 Questions to Ask Yourself

    There are many resources for startup and growth company CEOs today.  Here are five tips to determine if you are ready for an advisor for your business. 1. Do you know enough about the company and its current state to know what problem you need help with most? In the early stage of the business there are many areas in need of attention – team, product, IP, fundraise etc.  It’s not possible for one advisor to coach all on fronts. It’s best to pick one problem and focus the advisor on that issue.  It should be the issue in which the CEO has the least skill and experience. 2. Are you genuinely interested in learning a new solution instead of finding someone who will rubber stamp your current thinking? It’s often the case, the CEO has a solution and wants to “sell” it to the rest of the team.  Some CEOs will consider bringing in an advisor to do the selling.  This is not a good use of an advisor’s time and will be seen as a ploy rather than a solution. 3. Are you willing to compensate the advisor? Good advisors will want compensation for their time and very good ones will want meaningful compensation.  Before recruiting an advisor, consider what you will give for the work in return. 4. Are you ready to share everything you know about your business? For advisor to be effective the CEO will need to share key information.  If there are areas the CEO doesn’t want to divulge, then it will be  lesser result. 5. Do you have time to debrief you advisor once you make a decision? A strong CEO-Advisor relationship will require quality time for the engagement to yield productive results.  The CEO needs to set aside time on the schedule to execute the relationship properly. Even though you may bring on an advisor, the CEO is still responsible for the business, and its outcome. TEN Capital Network Advisory Program provides a roster of qualified advisors to assist in supporting your company in your growth plan. This includes increasing revenue traction, identifying the business model, and helping prepare the company for a fund raise. This program is only available to companies enrolled in the TEN Capital Network funding program. If you want to find an advisor for your business, please contact us at info@tencapital.group.

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    8 Reasons Why You Want to be an Advisor

    Startups and growth companies need help to find their path forward.  Experienced CEOs and entrepreneurial executives can provide mentorship and coaching to those companies.  There are many reasons to sign up as an advisor and help those startup CEOs.  There will be some financial gain to working as an advisor but don’t go into it with only a financial return in mind. Here are 8 benefits to being an advisor: 1. Get Energized Energize yourself by working with smart, fast-paced teams—there’s no greater energy in the business world than in the startup and the high growth company.  As an advisor you can energize yourself by working with startups filled with smart, faced-paced teams. 2. Keep up With Innovations in the Market Startups are not encumbered with legacy code or out dated practices so they adopt the latest innovations in the market.  If you want to find innovation, hang out with the startups. 3. Hone Your Skills Most CEOs exercise only a few skills each day in their work.  To build other skills you may find working with a startup a great way to flex new creative muscles. 4. Find New Opportunities Today’s startups are tomorrow’s growth companies.  Connecting early is the best way to find new opportunities. 5. Learn About New Markets Startups form around new markets.  There’s no better way to learn about a market then to join a startup in the industry. 6. Access a New Industry Startups often represent new and emerging industries.  To play in those new spaces often means working with startups and growth companies not big companies with well-paying jobs. 7. Expand Your Network Join a startup as an advisor as it will introduce you to new groups and communities. 8. Give Back to the Community Helping startups is a great way to give back to the community as it fosters growth in new leadership and helps build new companies for the future. TEN Capital Network is proud to announce our Advisory Program which provides a roster of qualified advisors to assist in supporting companies in their growth plan. This includes increasing revenue traction, identifying the business model, and helping prepare the company for a fund raise. Signing up as an advisor with TEN is easy and free. Visit our Advisory Program Page and you’ll be on your way to getting energized, finding new opportunities, expanding your network, learning about emerging markets, and more! If you want to find an advisor for your business, please contact us at info@tencapital.group.

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