Tag Archives: kbs ventures

Some Thoughts on SocialFlow, Our Latest Partnership

It was announced yesterday that SocialFlow raised $10MM in Series B funding and our kbs+ Ventures participated along with Fairhaven Capital (lead), Softbank, RRE, AOL Ventures, Betaworks, and Rand Capital.  We blogged about our perspective on why we participated on our corporate blog but I wanted to add a few notes here.

I have been tracking SocialFlow ever since I was introduced to Frank Speiser at an event at Nihal Mehta‘s apartment in January 2010.  After learning about what he was building and why, I quickly saw the opportunity to leverage the technology for marketers.  Later that year, Frank give a talk at The Media Kitchen‘s Digital Media Venture Capital Conference and I’ve stayed in touch since.

When we found out that SocialFlow was raising money and was looking for a strategic or two to participate, it was a no brainer for us because of the trends that we are seeing in the space.  I will explain those below.

1.  Evolution of Communications Architecture:  Way back when, the communications architecture generally consisted of Public Relations, Investor Relations and Paid Media.  While those three still exist today and are still going strong, we’ve now re-arranged the construct to be Paid/Owned/Earned media.  What you [as a brand] do and say in paid media can be made exponentially greater when you leverage owned and earned.

2.  Communications Velocity:  The speed in which communications hits the marketplace has increased rapidly.  I don’t know of a “law” such as what we have with transistors (Moore’s Law), but I have to imagine that the speed in which we communicate has increased so significantly that old media cannot keep up.  Within 15 seconds, I can put out 140 characters to my entire follower-base on Twitter, Facebook, Pinterest, Instagram, Vine, or whatever other communications tool.  When it was just print ads, television ads, or even radio, it took months… sometimes a year (inclusive of production)!

3.  Big Big Data:  Almost every digital platform we use exhausts some form of data trail.  This data trail can be collected, mined, and optimized into an opportunity or insight for a marketer (or any company for that matter).  With the explosion of digital communications, there is a ton of data that’s available to optimize from.  Making sense of this data thru frameworks, architectures, and algorithms, will allow marketers a leg up in the communication “wars” for customers.  Note: It’s not about the size of the data set, it’s about the insight that’s gleaned.

4.  The Shift of Dollars:  We have all seen the charts that show time spent with a media channel vs. advertising dollars and the gap that exists in digital is still large.  But it’s getting smaller, which means that ad dollars continue to flow into the digital landscape.

SocialFlow capitalizes on the four points above.  They are smack in the middle of all of this.  Many of the kbs+ Ventures portfolio companies also exhibit these traits (and others).

With our relationship with Frank, the evolved management team, and the market traction the company has, we were super excited to green light this investment.

 

 

Evolving Corporate Strategic Investing

We had a nice piece written about kbs+ Ventures in the WSJ today that spoke about the evolved model we are bringing to market.  I’m glad the WSJ initially reached out because it’s truly a great story to tell.  You can find the article here.

A month or two ago, we also put a short video online to explain kbs+ Ventures within a Made Here series that our agency is releasing.  The video showcases Taylor and myself talking about our investment vehicle as well as how we incorporate Ventures thinking into the larger agency.  You should check out the video if you’ve not already seen it.

I’ve always said that the world does not need another investor.  There is no lack of venture capital available today to startups of all shapes and sizes.  But, what Madison Avenue needs is to get closer to the technologies that have the power to disrupt our business in the future.  Some agencies are going to wake up 5-10 years from now and realize that they do not have a business any longer.  Other agencies such as ours and some of our peers will embrace this change and start investing in the future.

Its been fun and we’ve really only scratched the surface with what the big opportunity is for us.  Thank you for all of your continued support.

On a side note, if you haven’t yet downloaded our kbs+ Ventures book, what are you waiting for?  You can download Creative Entrepreneurship here.

kbs+ Ventures: Creative Entrepreneurship

Just last week, we launched our first book at kbs+ Ventures.  The book was derived from the insight that our agency‘s staff wanted to learn more about innovation frameworks and what entrepreneurs have to do in order to build a business.  You can download the book here (more formats for the book coming in the near future, follow me on twitter to find out when launched).

Creative Entrepreneurship Books

Last summer, Lara, Eugenia, Taylor and I embarked on the process of creating this book with the support of our agency and MDC Partners.  A few months later, we had a finished product of the book in-hand and were ready to launch it.  We turned the book around in about four weeks.

We decided not to re-create the wheel and write all new content.  Some friends of ours are top venture capitalist and entrepreneurs who already write amazing content online so we asked them to donate some content to our book.  And they did;  some old posts they had written and some brand new content for our book.  A huge fist bump to all the contributors including Blake Masters, Tim O’Reilly, Paul Graham, Jay Jamison, Sarah Lacy, Felix Salmon, Mark Suster, Steve Blank, Marc Averitt, Fred Wilson, Charlie O’Donnell, Chris Dixon, Andrew Chen, Seth Levine, Scott Weiss, Babak Nivi, Matthew Waterman, Dave McClure, Dan Shapiro, Adam Penenberg, Robert Ackerman Jr., Walter Kortschak and Rutul Dave.

We plan to use this book for our Fellows Program.  We also plan on making the book much more widely available – it’s free to you.  We will be distributing the book thru different accelerators, incubators, venture capital offices and other places of entrepreneurship.  Reach out to me if you want to put a bunch in your office or in a place which could reach many entrepreneurs.

Here are some pics of our launch party for the book.  It was a blast.  And here is the writeup on our Tumblog.

We believe this book can have an impact and I’m super proud of the team who made it happen.

 

Alto Email, The Open Graph, MBA Mondays, and Las Vegas CES

Happy Wednesday.  I thought I’d write another post that points to discussions or products that I’ve been part of recently.   Leave some comments below or reach out directly if you’d like to talk further about any of these.

It’s amazing how much an interface can make or break a product, go Alto!.   In early October, I heard AOL was launching Alto, it’s upgraded mail platform.  I signed up for the limited release and was granted access to the system late last night.  I am impressed so far.  I like the interface a lot.  It’s amazing to see how much of a difference the interface can make.  Font selection, user flow and the overall idea of classifying emails is fairly smart and spot on.   I do not use Sparrow so do not have a point of comparison, but it seems to me like accessing Alto over Gmail (even though Alto is a layer on top of Gmail for me) is the way to go.  What do you think?

The big question for Google, especially if users start accessing Alto as the portal to their Gmail is at what point do they disallow this?  Gmail is a revenue driver for Google in relation to AdWords (ads on the sides and above your emails) and Alto basically gets rid of these.  Will AOL roll out an ads product in Alto?

Get Your MBA On, Advertising Models.  Fred Wilson, a friend, venture capitalist and AVC blogger wrote his latest MBA Mondays post on Advertising Revenue Models.  Being that he and I both know that this is in my wheelhouse, I helped write the piece and linked it back to a presentation I gave in 2011 to the NYC TechStars class (I mentor).  The post was not specifically used to quantify or justify advertising but rather expose the different models within advertising revenue.   I think the post is fairly comprehensive and is a good primer for anyone considering taking advertising dollars.  I’m more than happy to talk more about it which is why I created the short-lived but very specific Marketing Wednesday series.

Fb Open Graph Innovation.   At kbs+ Ventures, we see lots of companies who are innovating around advertising and marketing technology.  This is our core area of the marketplace we invest in and one we’ve considerably doubled down on over time.  An area that we see companies spending lots of time thinking about is the Facebook Open Graph.  FbOG is an underutilized asset/utility for brands and there is a ton of room for brands to engage with it.  We are sniffing around this space to understand the forthcoming players in the FbOG space so if you are someone, know someone or are just genuinely excited about the FbOG, leave a comment and we’ll hook up.

2013 Consumer Electronics Show.  I’ll be heading out to Las Vegas for 2013 CES.  I’ll be there for meetings on Monday/Tuesday so if you’re heading out and want to meet up, certainly reach out and we’ll try to coordinate some time to meet up.  I’m specifically looking to meet entrepreneurs or other folks innovating in/around marketing and advertising technology which actually had solid representation at last year’s (2012) CES.