With Ex-Yahoo CTO On Bo...

Yottaa , the Boston-based startup that offers cloud-based web performance monitoring and optimization services for small businesses, is today announcing that it has closed a $9 million series B financing round. Each of the startup’s existing investors, including General Catalyst Partners, Stata Venture Partners and Cambridge West Ventures, re-upped for Yottaa’s series B, joined by additional undisclosed investors. Yottaa’s new round brings its total funding to $13 million and will be primarily allocated towards product development and increasing the rapidity of its product release cycle, as Yottaa gears up to add further features and components to its suite of services that aim to optimize, protect, and monotor websites and critical web apps for organizations of all stripes, but particularly the little guys — startups and SMBs. Certainly, this is no easy task, especially considering that Yottaa is now straddling two continents, with the majority of its near-50 employees based in China while its headquarters are to be found in Boston. Yet, in spite of this — and in spite of the rising star that is the popular and well-funded Cloudflare (nominally, a Yottaa competitor) — the startup has been growing fast. Led by Coach Wei, the former Chairman of Nexaweb, Yottaa has attracted over 80K businesses, thanks to its affordable software that allows businesses of all sizes to accelerate their websites and critical web apps. What’s more, over the last six months, Yottaa’s Site Speed Optimizer has grown to serve over 100 million unique visitors per month, and, as of last month, five percent of web users have visited sites accelerated by the Yottaa network. Back in February, the startup announced its Content Delivery Network (CDN) service , which leverages the startup’s patented cloud-routing technology and global infrastructure to automate realtime, front-end optimization for the websites of startups and small businesses. And speaking of that, adding to its value proposition and giving it a more defensible position in an attractive and growing market, Yottaa has been granted two patents, one being the aforementioned cloud routing technology, with a second granted in web performance and front-end optimization. What’s more, the startup has another eight patents pending approval. Two months ago, Yottaa added some impressive talent (and experience) to its team, including the addition of former Yahoo CTO Raymie Stata to its board of directors. At Yahoo, Stata helped develop the company’s technology strategy and drive key projects like Hadoop. Prior to joining Yahoo, the CTO founded Stata Labs, which developed content management technology relating to email, leading the company until it was acquired by Yahoo. Along with Stata, the startup also hired Morris Porter as VP of Sales and Business Development, who formerly led sales operations for Citrix Online and served as VP of sales at Intranets.com, which he helped transform into a $600 million business unit within Cisco Systems. On top of all this, Yottaa has been continuing with what its CEO describes as an aggressive product release cycle, turning its attention to the mobile web, launching a solution that allows users to bring a speed boost to their mobile web sites. Combining its patented front-end optimization service with a global content delivery network (CDN), the mobile acceleration software aims to address the mobile performance bottlenecks that have become endemic to the delivery and execution of the code that drives mobile applications, solving these challenges in an automated fashion. The startup’s mobile performance solution was developed in partnership with another Boston-based startup, MocoSpace, a social gaming platform that today boasts over 25 million registered users. With MocoSpace in tow, the solution has been developed to help ensure that MocoSpace and other mobile companies can offer a great users experience in both mobile apps and HTML5 games on increasingly speedy mobile devices and networks. With its growing suite of optimization and performance solutions for websites and web apps, one could see Yottaa as increasingly looking like a small-business-oriented version of Akamai. Either way, there is plenty of talent and competition in the space, but Wei thinks that the scope of the problem is huge and is only getting bigger thanks to the skyrocketing adoption of the mobile web. One could build a big company just by focusing on a particular link in the chain, he says, like mobile. It’s taken Yottaa a long time to get to a place where the team (and Wei) feel like they’ve developed a steady foundation on which to work. But Wei says that he believes the team has arrived and, instead of taking the lean startup, fast iteration approach to product development, the team is focusing on solving these thorny optimization issues with a bigger team that will focus on rolling out bigger products every three months or so. It may be an alternative approach given the popularity of the lean startup dynamic in Silicon Valley, but with one foot in China already, a handful of patents pending, and more products on the way, Yottaa may very well be following Cloudflare to a lofty valuation. For more, find Yottaa at home here.

Juniper Networks Invest...

Video conferencing startup Vidyo announced Tuesday that it has received a strategic investment from Juniper Networks as part of the network equipment vendor’s Junos Innovation Fund. The funding comes alongside existing Vidyo investors such as QuestMark Partners, Menlo Ventures, Rho Ventures, Star Ventures, and Four Rivers Group. Vidyo makes video conferencing software that allows organizations to very efficiently and effectively make and receive video calls across any number of connected devices. Its video compression technology is based on H.264 Scalable Video Coding (SVC), which can be used to deploy high-quality video conferencing, even on constrained mobile networks. The company sells some video conferencing equipment directly to enterprises, but it also has a large and growing OEM business, with partners such as HP, Google, Ricoh, Hitachi and others licensing the technology to put in their own products. The Juniper investment could signal either a possible acquisition at some point in the future — or at the very least a much closer partnership, which could mean integrating Vidyo’s video conferencing technology directly into its networking equipment. Juniper partnerships and strategic investments that have turned into acquisitions include Ankeena, which was also part of the Junos portfolio before the network equipment manufacturer acquired it outright in 2010. Juniper also integrated the technology of Packet Design , another company in its portfolio, into its networking equipment. And Juniper was rumored to be looking to buy portfolio company Cotendo before it was acquired by CDN competitor Akamai. Vidyo is headquartered in Hackensack, NJ, but has 12 other offices and 225 employees worldwide. While terms of the Juniper funding weren’t disclosed, they bringing total money raised to $97 million since being founded in 2005.

KurbKarma: A Social Net...

We have all been there: you are in your car, you need to park, and you cannot, no matter how much you try, find a space. You see cars pulling away, but it’s too far for you to get there before another car swoops in. You see people walking and you trail them, hoping they’re heading to a vehicle. It’s a frustrating state of affairs, but a new startup, KurbKarma , is launching today at TC Disrupt New York to try to solve it. “Parking where and when you need it” is the basic idea here: you have people who have spaces they are about to leave; and you have people who need spaces. The app ( available for iOS ) works like an ad hoc social network to link these people up. Those who have a space can post their status on an app, those who need a space find one on the map. The app integrates with Google Maps to plot spaces near you, and lets you send messages — several sendable with the touch of a button — to let the space owners know how far away you are. Spaces are “sold” with KarmaKredits: people who donate their spot pick up one KarmaKredit. People who need a space use two KarmaKredits to buy them. Like many of the best ideas out there, KurbKarma came out of the immediate needs of its founders. Neha Sampat and Matthew Baier are friends with longstanding backgrounds in tech, who are both also qualified as sommeliers, and they had a plan to get together to scheme for their next enological activity. Arranging to meet in the North Beach district of San Francisco, they drove around, looking for a place to park — which can be an impossible task in that part of town. By the time finally found a place to park, they knew what they had to do next: try to solve this problem for themselves and others. What’s interesting about the app is that it has both a practical  and  a moral twist to it. “There’s an element of paying it forward,” says Baier. “It’s a community effort to make parking easier; you are adding additional parking spaces to the public domain.” He also points out that the app helps aid the “peace of mind” of the driver, allowing them to focus on driving rather than looking off the road for a spot. But it’s not all about charity and goodwill: KurbKarma has also started to work a revenue model into the business, in the form of a virtual currency. You can always use the app free of charge, but if you have not had the chance to pick up KarmaKredits by offering spaces to the network, you can buy some through the App Store, with each credit costing $0.99. The app is free in the app store, and every new user gets 10 free KarmaKredits for signing up. The pair have been picking up a mailing list of users for launch with a bit of viral marketing that has clearly struck a chord in the traffic-choked streets of San Francisco: they went around a few areas of town — including the financial district and Dolores Park — and put what looked like parking tickets under the wipers of various cars. Then they stepped back to watch: people would pick them up, thinking “Oh no, not another parking ticket,” said co-founder Matthew Baier. Inside: a note about how annoying parking can be with a link to a fun domain offering a solution for how to improve it. (example: parkingisabitch.com ) They’ve collected 2,500 names this way so far. In the future, there are some exciting developments planned for KurbKarma. They include an Android version to complement the iOS app coming out today. And there are also discussions with other device makers (eg GPS system producers) to integrate with some of the other tools that drivers already use to get around. (The reason that the pair went with iOS first, says Sampat, is because they are launching in New York and San Francisco — both cities where people use their smartphones for navigation; in the future, when the company expands to other markets, especially in regions like Europe, where GPS in-car navigation systems are very popular, other hardware will need to come into play.) Baier also says that KurbKarma is working on expanding the kinds of spaces that they will integrate into the app: right now it’s geared at public parking, but down the line there will also be options to take private parking, in the form of garages, driveways and other off-street spaces. And, crucially for the business’ scale, it is talking with some large third parties that already focus on car-based city travel to help market the offering. I have to admit when I first heard the idea for KurbKarma, I had my doubts: it puts too much weight on the goodwill of other people, and being able to plan and stick to commitments with total strangers — and there are so many variables: traffic that can delay you; people needing to rush away and leave the space before they said they would; and people changing their mind and staying longer than originally intended. There are some elements already worked into the app that should help discourage flaky behavior, such as user ratings after a transaction is completed (or not, as the case may be): “It will happen from time to time that people leave,” notes Sampat. “But if they do that they will see negative ratings. The ratings will weed out those who do not follow the rules.” And sometimes it is the most unlikely — and original — of ideas that really take off. Just think of Airbnb and the idea of people who had never thought of themselves as ad hoc hoteliers suddenly giving up rooms in their private homes: that, too, sounded like a big leap for people to take. And yet today I think it’s miles better than most of the hotel options many cities offer. “Sharing models are becoming more mainstream,” says Baier. “The idea is already out there.” I’d put a few KarmaKredits on KurbKarma striking a similar chord.

Open Garden Lets You Cr...

What if you couldn’t just share your Internet connection with the few WiFi devices tethered to your phone or hotspot, but with pretty much everybody around you? Open Garden , which is launching at TechCrunch Disrupt today, lets you create a mesh network that ties together all the Open Garden-enabled devices around you into one large network that then automatically shares Internet access and bandwidth between all of these devices. Basically, Open Garden wants to become a crowdsourcing platform for mobile connectivity. For now, Open Garden works on Android, Windows and Mac (it will be available in the Google Play store after today’s Disrupt demo). In the long run, Open Garden also hopes to make an iOS application available. The San Francisco-based company was founded in 2011 and has assembled quite an impressive team. Co-founder Micha Benoliel, for example, worked at Skype before starting his own company, and co-founder Stanislav Shalunov has a deep background in Internet infrastructure, including work at Internet 2 and BitTorrent. The company’s third co-founder, Greg Hazel, was previously the lead programmer of the popular BitTorrent client μTorrent. One especially nifty aspect of this project is that Open Garden used its own networking and P2P expertise to built (and patent) its own discovery mechanisms so devices that run its software can easily detect each other. Given the proprietary nature of this, the company doesn’t talk about the exact details of how it does this publicly, though. Right now, Open Garden only uses one Internet offramp for the whole mesh network (though it’s worth noting that it breaks down large networks into smaller ones with about ten nodes as well). If the network detects multiple offramps, it currently selects the fastest one available and switches to another one if that node goes offline or slows down. Soon, says Benoliel, it will also support multi-channel bundling to create a higher data throughput by using multiple on-ramps. Ideally, this could even work if your phone isn’t on a mesh network, as it would allow you to use a WiFi and 3G or 4G network simultaneously. For now, though, the company’s focus is squarely on getting its beta out into the market and making the overall experience as seamless as possible. The obvious question about a project like this, of course, is about how the carriers will react. Benoliel told me that he isn’t too worried about this, though. He likened it to the arrival of VoIP, a technology that the carriers have now embraced. Carriers will just have to adapt to concepts like this and figure out the best ways to make use of them. The Open Garden team believes that, in the long run, the carriers will understand that they can benefit from being part of Open Garden’s open network. Ideally, of course, an ad-hoc mesh network like this could also help carriers offload more data from their 3G and 4G networks. While the company didn’t disclose any details, Benoliel told me that Open Garden already has an agreement with one “forward-looking European carrier.” Other companies that will likely have a hard time appreciating this project are paid WiFi networks like Boingo or GoGo. A phone running Open Garden, after all, could easily provide basic web access to everybody at an airport gate or even on a WiFi-enabled plane. The company, which is probably one of the first to be based on San Francisco’s Treasure Island, has raised some money in a seed round so far and expects to add on to this round or raise a larger VC round soon. Disrupt Q&A Q : Is the plan to sell the app? A : We want to keep it free. Shooting for a freemium model with extra features like VPN access for business users. Q : What about security and privacy? A : The mesh network is encrypted. The device doesn’t let you monitor the traffic on the network. Q : What about the implications on battery power? A : Most of the power consumption comes from the data transmission. Open Garden can also help you save some battery by offloading to WiFi, which uses less power than a 3G or 4G connection. Q : How do you get around the freeloader problem. A : Open Garden has been thinking about moving to a credit system. Q : Do you have competition today? A : We have built a lot of IP. We have a strong competitive advantage there. Competition is in the carrier network offloading business. That’s mostly hardware manufacturers building femotcells etc.

David Karp: Tumblr’s Re...

In a fireside chat with MG Siegler at TechCrunch Disrupt Monday, Tumblr founder David Karp described how his company thinks differently about advertising than Facebook or Google, and how they hope to make it less distracting and more meaningful to users. In short, it’s all about telling stories. Karp said that for Tumblr, the stuff that appears in the main feed is pretty sacred, as it’s all content that users have chosen to subscribe to. Instead of inserting branded content into the stream in the same way that companies like Twitter are beginning to do, Tumblr has instead reserved the right-side column for content that users may not have seen. But the differences go deeper than that — Karp wants brands and marketers to use Tumblr as a way to tell stories that they can’t otherwise tell on other social networks or with search ads. “The new revenue model we recently put in place is built around creative brand advertising, which is something that Facebook and Google don’t support,” Karp said. Rather than a/b testing a blue link to try to find the most effective direct response ad, Karp wants brands to use Tumblr to tell stories that create intent on the part of consumers — which is the type of advertising that they want to see anyway. Also, while much of the available ad space being sold by other Internet companies goes to big brands, Karp sees an opportunity to make inventory available to individual users, who could use the space more effectively, and who might not annoy their friends in the way that brand advertising might. “We want to make some real estate available not just to big brands, but to carve it out for people that are already a part of the network,” Karp said. “It’s problematic when that American Express post shows up in your feed, but it’s different when it’s one of your friends.” In addition to talking about the new revenue products, Karp described the organizational transition which recently took place and enabled long-time Tumblr president John Maloney to resign. Tumblr has grown from 15 employees to more than 105 since the beginning of last year. A lot of those hires were made to add senior executives to the staff who could oversee various different parts of the organization. Not only did that allow Maloney to step down, but it also meant that Karp hasn’t really written any code over the last six months. Karp said it took a while for him to embrace the change, but now he’s able to dream stuff up, whiteboard it, and a team of engineers who were “worlds more brilliant than [he] ever was can build it.”