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Perspectives on the wonderful world of tech

DFJ Esprit to support IoT Forum, Cambridge June 27th.

We are delighted to announce DFJ Esprit will be supporting the Internet of Things Forum, Cambridge, June 27th.

DFJ Esprit are an active investor in the Internet of Things having invested in companies such as Neul and GreenPeak Technologies with plenty of appetite for more. DFJ Esprit are one of the most active investors in the European venture capital scene and have featured in recent years, not just in the rankings of investors with the most exits (remember those?) and returns, but with the most new investments in European technology companies.

Simon Cook, Managing Partner, DFJ Esprit will also be participating in the panel discussion – ‘Where is the smart money going?

For more information about the Internet of Things Forum, Cambridge, June 27th, including details about how you could showcase your company to some of the smartest customers, partners and investors on planet IoT, see the dedicated website.

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They stole my idea! The virtual incubator of incubators and accelerators is here!

I joked at our last CEO Tales that I was launching a crowd-funded project on Kickstarter for an ‘accelebator’ for ‘accelebators’. Accelebators of course, combine the best aspects of an accelerator programme with the best bits of an incubator programme to guarantee the creation and development of relentlessly-scalable, robustly value-creating startups that will takeover the world.

My vision did actually involve maybe some educational events for the people running the programmes etc. And probably some other stuff. People were enthusiastic about backing it.

Seems those good folk in Silicon Valley have stolen the idea and added a virtual aspect. I present to you, 1M/1M’s Incubator-In-A-Box. If you really want to run an accelerator, but can’t be bothered to do much, this is the solution for you.

From 1M/1M…

One Million by One Million (1M/1M) is a global virtual incubator that aims to nurture a million entrepreneurs to reach a million dollars each in annual revenue and beyond by 2020, thereby creating a trillion dollars in global GDP and ten million jobs.

What?

  • Choose the scale at which you wish to start. You can incubate 5, 10, 25, 50, 100, or 200 entrepreneurs.
  • Choose one or more locations (or global is fine too).
  • 1M/1M will provide the base-level incubation to these entrepreneurs through the Premium Program. This includes online curriculum, mentoring / strategy consulting, introductions to customers, channel partners, investors, and access to the 1M/1M media and social media channels.
  • Partner can add any amount of additional resources on top, including funding, real-estate, mentoring, network, legal services, accounting services, etc. First right of refusal for any investment opportunity, naturally, rests with the partner.
  • 1M/1M will run contests and help partner recruit the entrepreneurs to bring into their custom portfolio.
  • 1M/1M will also screen the best performers from the incubation portfolio for partner to invest further resources in, after a few months of incubation.

How Much?

  • The 1M/1M Incubator-in-a-Box costs $1000/entrepreneur/year. So, if you incubate 50 entrepreneurs with us, that would cost $50k for a year.

  • We do not take ANY equity, making us the most entrepreneur- (and investor- ) friendly incubator program on the planet. Most incubators take 5-10% equity. Angels come into a clean term sheet with minimum dilution.

My favourite line, “Choose the scale at which you wish to start. You can incubate 5, 10, 25, 50, 100, or 200 entrepreneurs.”

If Silicon Valley didn’t exist, we would have to make it up.

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Small enough to snort? 3 IoT driven trends in healthcare

To London last week to attend the launch of the newly branded Xively, and listen to ARM’s explanation of what they are doing for developers of IoT products. Most of which is worth another blog post but a real show stopper was this:

ARM sniff chip

A 1 mm cube device with sensors, solar panel and processing. ‘Small enough to snort’, indeed (although I guess you wouldn’t need the solar panel in those circumstances).

Of course, this is not ARM’s first venture into ‘ingestible computing’ – they are also responsible for the design of Freescale Semiconductors 2 mm square microprocessor. But they’re plainly taking it seriously, and rightly so. VentureBeat have a nice summary of the potential applications in the market, including:

Smart sensors

‘Companies developing smart sensors that can be placed on the body or in the home  that can accurately, non-invasively predict your chances of becoming ill stand  to attract investors’ attention. Component and connection costs are dramatically  dropping, while at the same time the value of connecting to the Internet has  dramatically increased.’

Software systems for data analysis

‘Businesses across the spectrum are developing algorithms to analyze, for  example, whether a person’s blood pressure and weight require a fitness program  or whether other symptoms merit immediate provider attention. The smarter the  software, the better. Just imagine patient alerts being delivered to warn of an  increased risk of illness before the illness is even detectable through  symptoms.’

New services models for patients

 ‘Smart sensors and smart software, however, will only go so far. At some point,  we’ll need good old-fashioned people power. A new crop of services companies  will arise to give virtual care a healthy dose of checks and balances.’

Unlike other IoT applications this is going to be a long term play and probably one for those with the deep pockets and patience to finance trials.  My guess is we will see at least three generations of FitBit before the first swallowable devices come to market, but it will be interesting to see just what ARM have to offer for the market by then.

If you’d like to hear more about new business opportunities in the Internet of Things, and particularly what IBM, Neul, BT, Unilever, EE, Evrythng and AlertMe think, then sign up for Internet of Things 2013, our one day conference on the business of things. More details and registration are here.

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Good overview of key technology acquirers across technology, commerce, marketing and media

Schematic of key strategic technology purchasers according to Luma Partners.

This is a helpful guide to some of the key strategic purchasers of technology companies.

Clearly doesn’t cover everyone and there is plenty more detail if you want to look closer at any particualr sector. This is the Mobile Landscape according to Luna Partners, the corporate finance house that produces the pictures…

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Coming to IoT13 – book your accommodation now!

If you are coming to IoT13 (and if not, why not? Just take a look at our programme and panellists!) then you’d be well advised to book your hotel options as soon as possible. Cambridge is particularly busy in late June with conferences and the University Graduation ceremony, and it’s not a city that is rich in good hotel deals.

Here’s our (not exactly impartial) set of recommendations for all budgets and links to what the good folks at TripAdvisor say

Budget:

The cheapest option would be to stay in Robinson College itself, which has a range of student rooms available. Basic but very, very close. Alternatively, quite a lot of colleges have rooms available for visitors, but the rule vary on whether you need to be connected with the university to book them.

Mid level/business hotels:

The Regent Hotel is small and affordable. Gets good reviews (and burnt down – and rebuilt – about 6 years ago, so its facilities are quite new)

The Best Western Gonville is rather short on charm but generally well run, clean, good service.

Cambridge City Hotel (ex Crowne Plaza). Bit dated, but big and very central location.

Bit of charm, more upmarket, more expensive

Doubletree is right by the river, and closest (10 min walk) to the actual conference venue.

Hotel du Vin is lovely and priced accordingly

Varsity has best roof garden in town and some stunning views from the rooms higher in the hotel.

Finally, an interesting alternative is a short stay apartment, such as this one which is very popular.

There we have it: hopefully there is enough variety here to meet all needs and budgets. Please note we don’t recommend sleeping on a punt – the ducks have a nasty habit of trying to come aboard at 1.30AM.

 

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Lack of technology IPOs is not short term barrier to growth of Internet of Things. There is money everywhere.

BDO Tech Talk’s review of M&A and Capital Markets activity for the first part of 2013 is an interesting and good read though if you are looking for evidence that the capital markets are opening up to new technology companies, it would help if you are colour blind…

  • In this chart, the blue bubbles represent the size of Follow-On Public Offers for UK companies in the technology sector.
  • The red bubbles represent the size of Initial Public Offers for UK companies in the technology sector.

Anything that strikes you? Clue, there are no red bubbles…

BDO's Tech Talk Q2 2013. Capital markets, M&A in the UK Technology Sector.

BDO’s Tech Talk Q2 2013. Capital market activity in the UK Technology Sector.

You can see more here, including a roundup of the technology M&A activity for the UK technology Sector in Q1 2013.

The lack of new technology offerings on the public markets is hardly news but it is an ongoing concern for the long term growth of the technology sector in the UK.
BDO will be supporting our forthcoming Internet of Things Forum, Cambridge, June 27th. A number of companies, e.g. Cambridge-based Ubisense have already made it onto the public markets, but the lack of activity in public markets could be a significant barrier to the growth and long-term development of this fast growing, emerging sector.
According to Jim Tulley, Research Director at Gartner Group (who featured the Internet of Things as one of its Top Ten Technology Trends for 2013), in a Wall Street Journal article this week:

“Our research says that by 2018, 50% of the internet of things solutions will be provided by startups which are less than 3 years old. We can estimate what the internet of things will be like now. But we know that most of the things that will exist in 2018 we can’t even conceive of because they haven’t been invented yet.”

Is this bad news for the sector if the capital isn’t available to help those companies grow?

No. It isn’t all bad news for the IoT ecosystem as the venture community is actively investing in companies in the space including IQ Capital and DFJ Esprit in Neul, DFJ Esprit in GreenPeak and Intel Capital in SIGFOX illustrating the appetite for investment in the infrastructure plays in the sector while, for example, Ball Park Ventures‘ investment in BrightMove Media, a Springboard Accelerator Company shows there is appetite to invest in the applications that are being developed across all industries.

Meanwhile, smaller, project based ideas are finding sources of finance such as KickStarter and other crowd-sourced funding vehicles have been a significant help in getting their ideas to consumer. The Technology Strategy Board has also been supporting some of the development of IoT related technologies.

We also see significant interest in investing in the sector from investors with VC funds including Index Ventures, Invoke Capital, IQ Capital, Fidelity Ventures, Silicon Valley Bank, Octopus, Balderton Capital, Warburg Pincus, DFJ Esprit, Amadeus, Gresham Private Equity and MMC Ventures among those signed up to participate in the IoT Forum on June 27th in Cambridge.

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Is the team at Google the new Steve Jobs?

Is the team at Google the new Steve Jobs?

Well, the Google team at IO did one thing really, really well yesterday – getting people excited about new product announcements by focusing on making users feel awesome.

This is a good video encapsulating the 3 hour or so keynote at Google I/O yesterday. (#IO13). My Twitter feed seemed to be fairly evenly split between snark/cynicism and enthusiastic evangelism though there seemed to be a more balanced debate about the products, the implications for entrepreneurs building businesses in the technology ecosystem, possible future directions etc than there is during an Apple Keynote.

One thing struck me though. A lot of corporate launches, developer conferences etc these days have been widely ridiculed. Rightly so. Many of them seem to be competing for biggest waste of money to make your company/product look stupid ever – the Samsung S4 launch being an astonishing example.

The Google Keynote, despite being over 3 hours long, was compelling, slick and focused on end users. (What Kathy Sierra would call, making users awesome).

This is the thing that Steve Jobs always did and this was one was totally focused on that one thing…

“Technology should do the hard work so people can get one with doing the things that make them happiest in life.”

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Excellent short video – If Facebook ran your home…

Funny and short video about the never ending changes to Facebook that always seem to produce changes to privacy settings and give you stuff you just down’t want.

Funny and short video about the never ending changes to Facebook that always seem to produce changes to privacy settings and give you stuff you just down’t want. Thanks to Richard Anson at Reevoo for the tip.

Glad it isn’t just us that hates the constant ‘improvements’ that reset your privacy settings and turn everything upside down.

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SIGFOX joins sponsors of IoT Forum, Cambridge June 27th.

We are delighted to announce SIGFOX as supporters of the Internet of Things Forum, Cambridge, June 27th.

SIGFOX – is the first cellular network operator dedicated exclusively to M2M and the IoT.

unique technology for the most cost-effective and low throughput M2M communications on the market. SIGFOX has risen to meet an incredible challenge: transmitting the billions of data of the Internet of Things in a cost-effective, eco-responsible, efficient and reliable way. Their technology works for low throughput devices over very long distances, through buildings and is very low power.

For more information about the Internet of Things Forum, Cambridge, June 27th, including details about how you could showcase your company to some of the smartest customers, partners and investors on planet IoT, see the dedicated website.

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Taylor Wessing joins supporters of IoT Forum, Cambridge June 27th. Give free legal documents to startups.

We are delighted to announce Taylor Wessing as supporters of the Internet of Things Forum, Cambridge, June 27th

Taylor Wessing, experts in digital business

Taylor Wessing – a team of the best European technology lawyers who advise both investors, corporates and entrepreneurial technology companies on a full range of legal and IP issues. Additionally, if you are an early stage technology business in the process of forming or taking an early stage seed investment, they have effectively open-sourced their knowledge and now have produced a resource for early stage companies where you can just go and get their company formation documents, IP assignments, NDAs, Term Sheets, Investment Agreements and all sorts of very useful legal stuff at the extraordinary price of: FREE!

As Taylor Wessing themselves say,

“These documents are made freely available in the hope that they will help to educate the entrepreneurial community and speed up the investment process, not to mention keep costs to a minimum. Alongside the documents themselves, there are explanatory notes on the investment agreement and the articles of association. There are three versions of the articles of association: preference and ordinary, EIS and ordinary and just ordinary.”

You can browse and download them here.

For more information about the Internet of Things Forum, Cambridge, June 27th, including details about how you could showcase your company to some of the smartest customers, partners and investors on planet IoT, see the dedicated website.

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