SimpleGeo To Be Acquired By Urban Airship
uncrunched.com
uncrunched.com
It's been bumpy, even with relying on them scantly–I had hoped the feature set would grow and mature to take even more work off of my hands. Instead–several times the API changed from under me without warning or backwards compatibility and my alpha app simply broke. Once, embarrassingly in an investor presentation, another time it took a personal tweet to the founders to get things re-sorted out.
I'm sad that for so much money, such a great team, excellent visual design, hot shot investors etc. they didn't take off. I wonder if they just didn't hit on the right business model–for me it seemed I am something of a YCombinator gamble for them: they want my startup Kliq to be reliant on their services such that I can't or don't want to rebuild at scale (wasn't the case), price such that they take money from me Kliq now, as small developer team with little time to build cookie features not core to my app (they didn't charge us a monthly fee until the very very end, while we probably would have paid $5-$20 a month right away and up to $50 with more features), and price such that they "exit" with Kliq if we do end up scaling. Then they just need some success stories and they would have been too. Some ideas as a now former "customer".
Today I’m excited to the acquisition of SimpleGeo. You can read Jay Adelson’s post here. [Dead link]
Both Urban Airship and SimpleGeo started two and a half years ago and I’ll never forget when Crash Corp Inc. (the original SimpleGeo) launched as we both went live with our new sites on the same day with the same font; Museo. We’ve known each other over that entire time and shared lots of discussions and even did a partnership deal in the last couple of months. As we continued to talk and engage we realized that putting our two companies together would make for a really interesting offering for our combined customers.
We’ve learned that our customers (brands, retailers, etailers, media, social networking sites, games and others) want more than just generic tools. Instead of building blocks they want a complete solution that can be used by the entire company to help engage, monetize, locate and understand their mobile user base. Urban Airship will fold in the SimpleGeo product suite to offer a complete set of solutions for our ever growing customer base. Urban Airship is now the leading platform for mobile cloud services in the market. This is a fantastic win for both Urban Airship and SimpleGeo customers and investors.
Obviously there are many things that we need to work out while we make this transition and we’ll be working closely with existing customers from both companies to make sure they are up to speed on our future plans for the combined roadmap.
We’re excited to be continuing to build the business, excited that the SG team is joining Urban Airship, excited about having an office in San Francisco and most of all excited about the next phase of PaaS that we’re going to dominate in years to come.
You can still read it through Google Reader: http://cl.ly/3j0T36272H2r3J0r1N0Q
Original URL: http://urbanairship.com/blog/2011/10/31/urban-airship-acquir...
Very unlikely, the team probably got a chunk.
Remember that the acquiring company is shelling out several million and they really don't give a rat's behind about the liquidity preference. They want the new team to be motivated.
It is standard for the VCs to waive the preference during the negotiations (after much wheedling and whining). If they don't, the deal doesn't go down.
The Series A was $8.14M and they were acquired for $3.5M. If the team tried to get a chunk of that then I doubt they'll be getting funding again.
Remember that the acquiring company is shelling out several million and they really don't give a rat's behind about the liquidity preference.
It's not as simple as that. Both SimpleGeo and UrbanAirship are Foundry Group companies[1][2].
This was clearly a firesale, and Joe Stump appears to care for his team somewhat: Cofounder Joe Stump used to be Digg’s chief architect. According to TechCrunch, three of the new hires were laid off by Digg in March and the fourth one decided to leave. Now, SimpleGeo is bringing in the new guns but also familiar people, which seems to really solidify the team that stands now at 17 employees.[1]
It might be as simple as making sure everyone got a new job, and maybe the non-Foundry Group investors got some money back.
[1] http://venturebeat.com/2010/05/18/simplegeo-second-funding/
[2] http://www.prweb.com/releases/UrbanAirshipFunding/SeriesB201...
Again, it is in the interest of the acquiring company to have the liquidity prefs waived. They want the money to go to the team and have no interest in enriching the VCs.
One exception: Sometimes there is a conflict of interest, where the acquirer has someone in a key position who is also a limited in the VC fund. This is often the reason for some really dumb prices being paid in various deals.
No, I was not. The acquiring company causes the liquidity pref to vanish regardless of the currency, if they're sensible.
huh? and how exactly would they do that in a legal way?
Simple: The acquiring company turns to the VCs and says "If you want the acquisition to happen, you are going to waive your liquidity pref".
It's not complicated. And as for "legal", contracts are renegotiated all the time. You might in fact argue that the liquidity pref is put in as a throwaway, since it is rare that they are ever exercised.
If they are just after the team, they could just offer signing bonuses directly to the team. Such as when Borland didn't want to sell to Microsoft.
The team's BATNA to the acquisition is a signing bonus, or another job.
The founder's BATNA to the acquisition is a signing bonus, or another job.
The acquirer's BATNA to the acquisition is a giving signing bonuses, or hiring the team.
Everyone's BATNA is signing bonuses so if the VC screws around on the preference they get nothing. That's why were not talking about a team change because the best situation for everyone is for the VC to give up the preference.
You get deals done by presenting an option that is superior to the BATNA. (Assuming everyone is rational)
See KART / Indy for what happens when people are prepared to accept the BATNA in the face of a superior offer.
I hope it lives on with Urban Airship and keeps getting resources to improve. In the end it's a good thing that someone is competing with Google in this space.
There are a great group of people at SimpleGeo, and while I never understood how it would be a big business, I was always confident that if a big opportunity existed, they would find it. What this says to me is that the big opportunity in being the data layer for location does not exist as a stand-alone entity.
I am sure the founders are seeing very little of this money. The liquidation preferences "prefer" the investors.
For a period when simplegeo was funded it seemed like everyone was butting their head against this data layer problem... but the big guys eventually figured it out internally and the small guys moved on to groupon clones and suddenly there wasn't a huge market.
Yes, they have a pretty big apps showcase, but it's not enough sometimes.
Anyway, if they get acquired by Urban Airship, it will be great. UA will have a better use for their platform (and UA will need geolocation soon), and I'm happy Simplegeo will have a good use (what they built is really awesome, if you understand geolocation).
Factual provides an API for businesses in the US and around the world. In fact, SimpleGeo partnered with us for some of their data. Other alternatives you can consider are FourSquare, Google Places, etc. Each alternative has it's own pricing structure and terms and conditions.
You can browse some of our POI data by going to http://www.factual.com/topic/places
This Factual is new to me and seems good, I will see it better later (big list of places for Brazil, exactly what I need sometimes).
This is the same indexer that is powering open gov't projects around the world: http://maxogden.com/#blog/diy-open-data-catalog
Bimaple provides powerful location-based search services. Check omniplaces.com for a demonstration site that supports instant, error-tolerant search on more than 17 million business listings. Customers can build a search application easily using our product.
MongoDB has some pretty good geo-aware methods worth looking.
The problem is that spatial data tends to create strange usage patterns compared to other software. I run PostGIS installs with tens of millions of features, most of which will never even be queried. Different spatial queries can result in dramatically different resource needs. I need a service that is affordable to store multi GB datasets, and can query them very quickly. SimpleGeo have not come close to solving this.
I checked SpacialDB page and it seems to be really good and useful for my essay, I want to use it to describe one of the three cases. Can you send me a beta invite, please? I registered there with this email: ricardo [at] fences [dot] com [dot] br
I'm working on a business startup project and this essay will be part of it, so I would like be a new customer when project start.
[edit] (ps.: I'm from Brazil. Feel free to contact me with that email.)