regional report | new york: after the alley

STARTUP INTELLIGENCE REGIONAL REPORT | New York: After the Alley

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Regional report | New York: After the Alley

Introduction »Drivers of Change »Investment Scene »Business Opportunities »Trends »Roadblocks »Mergers and Acquisitions »

Startups to look out for



New York: After The AlleyINTRODUCTION

• CommercialtechinnovationinNewYorkhastheenergyoflate90s/early00s,butthistimewithsubstance.Companieshavemorematureproductsandgeneraterevenue.

• Startupsaremorelikelytohaveadeveloperoraveteranentrepreneurasaco-founder.• WestCoastandNewEnglandinvestorsareinNewYorkhuntingforopportunities.• A strong focus on consumerweb and creative industries as opposed to enterprise

software.• NewYorkhasalongwaytogotocatchupwiththeValley.

For the last ten years, New York would hardly be considered a place to go to start a tech business. But in

three years NY has been reborn as a hot-bed of internet startups. A high proportion of these are attempts to automate and scale New York’s traditional expertise in crea-tive and financial services. A palpable shift in perceptions has made it socially accept-able to leave Goldman Sachs to join or start a tech company. Professionals in the scene agree the atmosphere feels like the late nine-ties and the numbers bear this out. More

than 20 early-stage venture capital firms now have offices in New York (see poster). Four major players, Matrix Partners, Canaan Part-ners, First Round Capital and Accel Partners opened offices in New York in the past year.

The ‘mothership’ tech community event, the NY Tech Meetup, has 18,384 online members. About 700

turn up to each monthly event. Other events are popping up around the city. Ten incubators (see poster) are mentoring and launching new startups in New York. Seven shared

Startups to look out for »Startups to look out for »

22



Introduction

workspaces for entrepreneurs opened in the last 18 months (General Assembly, Dogpatch labs, hiveat55, tech@NYU, Green Spaces, New Work City, Rose Tech, NYnightowls).

Access to investment is improving.According to the National

Venture Capital Association New York-based companies completed 360 deals in 2010 worth $1.9bn. This was the highest deal frequency since 2001 when investment in the NY region totaled $3.4bn in 442 deals. Whilst the number of deals has increased, there hasn’t been a proportional increase in total value. This suggests New York startups are increasingly getting Silicon-Valley-style early-stage support.

Media hype and easier access to risky seed funding prompts

fears of a second Silicon Alley tech bubble. But most tech companies have a different profile from ones in the late 90s and early 00s. Startups now have products and services with revenue streams and despite some glaring exceptions (Foursquare raised a further $50m in June 2011 at a valuation of $600m without approaching break even) there is an increasing awareness of how important it is to have a sustainable business model.❑

MOST TECH COMPANIES HAVE A DIFFERENT PROFILE

FROM THE ONES IN THE 90S

Below: Number of members in the NY Tech Meetup has increased steadily since 2008

Silicon Valley New YorkInvestors 4,042 3,714Startups 1,704 897Above: Number of investors and startups according to AngelList

33



Drivers of change

Above: Foursquare, Tumblr Meetup, Gilt Groupe

Drivers of change

Headline startups like Gilt, Four-square, Meetup and Tum-blr have been decisive build-

ing blocks of the local startup ecosystem. These anchor companies have proved that the next Facebook could come from the East Coast and have drawn the eyes of investors. Gilt Groupe, the luxury flash-sales company has raised $236m and is valued at $1bn. Foursquare raised a third round of investment in June 2011. These companies generate the critical mass of investment, experience and in-spiration to get smaller ventures going. Foursquare is the true hub of the booming NY tech scene. Their API appears in the mashups of most hackdays, they host meetups at their offices at 36 Cooper Square and mentor other entrepreneurs. They’re even idolised by Mayor Bloomberg who named a public holiday after them

Anchor Companies

within months is a new phenomenon. It requires new skills that old economies can’t provide. These companies can face competition from anywhere on earth in a way that no other industry has had to deal with. According to conventional economic

theories of clusters, this should improve the comparative advantage of a region like Sili-con Valley, locking out other regions from areas of innovation. Specialised regions have a greater concentration of talent and ex-pertise and a better integrated community.

(April 16th - 4 squared geddit?). Successful exits such as AdMeld (acquired by Google for $400m in June 2011) or Drop.io (acquired and shut down by Facebook in October 2010) nurture the startup ecosystem. Big-ticket exits mean more cash in investors’ and entrepreneurs’ hands, and slowly builds the community of local 2nd and 3rd generation founders who have learnt from their mistakes. This also attracts the attention of talented engineers from schools on the East Coast: MIT, Carnegie Mellon, Cornell and Columbia, who no longer see Silicon Valley as the only place to roll the dice on a startup.

Social Skills

The tech startup company with the potential to be-come a giant multinational

44



Drivers of Change

Joint marketing and competitive pressure drive companies to evolve fast and differ-entiate. Entrepreneurs create more entre-preneurs. Innovation is a positive feedback loop.This renewable cycle has been essen-tial in the making of a ‘NYC startup com-munity’. Luckily for New York, because tech startups can cycle from launch to exit within months or years, this renewable cy-cle can be generated quickly. It’s clear that the NYC startup community is beginning to enjoy some of the benefits of social re-enforcement. The rapid increase in the number and attendance of events and co-working spaces displays the increased appe-tite for knowledge. Accelerators like Gener-al Assembly have demonstrated remarkable results. Within months of opening, resi-dents Nodejitsu and Posling acquired funding and Nodejitsu hired develop-ers from the temporary member’s area.

New York has its core advantages when it comes to fostering en-trepreneurship. It is compact

and easy to get around, unlike Silicon Val-ley. Many of the tech companies there are based down south in Palo Alto, a good hour’s drive from San Francisco. Investors,

startup teams and tech events are all within reach, mostly below Central Park Manhat-tan. In a big city with a busy social agenda, newcomers are easily knitted in. The City That Never Sleeps has its own mentality. Local experts in the tech scene agree on a typical NY founder profile: entrepreneurs are driven and focused, they tend to be positive and stay humble, not turning into ‘rock stars’ as happens in the Bay area. The community is cooperative and willing to help each other since they think of them-selves as the underdogs when compared to the West Coast. Cliques are slow to form.

Due to the city’s financial exper-tise, NY entrepreneurs tend to have better business skills and

focus more on their product’s business model rather than technical features. What was once was a weakness – as web 1.0 com-panies in New York struggled to find de-velopment talent – has become a strength in an era of easy access to cheap pro-gramming environments and outsourced development. New generation NY start-ups are finding the right balance between business-oriented and tech founders.

Above: NYC is more compact and easier to navigate thaan the Valley

55



Cultural shift

As a financial services hub, New York like London provides thousands of well-paid jobs for talented develop-

ers in major banks. The financial crisis has had a noticeable effect on startup investment activity in New York, although the effect has been less marked than in Silicon Valley (see chart on page 8). More significantly, the financial crisis damaged the social standing of Wall Street bankers just as it did to those in the City of London. Suddenly it has become less trendy to work in Goldman Sachs. Even Mayor Bloomberg, a long-standing ally of tax breaks for the major banks seems to be spending a lot of time hosting panels on en-trepreneurship, sponsoring incubators and events through the New York City Economic Develop-ment Corporation and the Department of Infor-mation Technology and Telecommunications (see poster for details of these). New York has been subject to the widening cultural awareness of tech entrepreneurship driven by films like The Social Network and the new medium of mobile, which still belongs in a large part to lean startups.❑

66



Investment Scene

THE INVESTMENT GAP BETWEEN SILICON VALLEY AND NEW YORK IS NARROWING DOWN, ALTHOUGH THE WEST

COAST IS STILL WAY AHEAD

Investment Scene

Investors of all sizes are flocking to New York. Venture Capital Firms, Corporate Venture Capital

arms, bankers turned micro-VCs and entrepreneurs turned angel investors are looking for the next big opportunity. As the poster shows, the epicentre of VC activity is Manhattan, especially around Park Avenue.

Former startup founders from the anchor companies in New York often become angel investors, join

micro VCs or mentor newcomers. Many VC firms with smaller funds and a focus on tech seed funding have set up shop in New York in the last two years, for example Founder Collective, Gramercy Labs, Dream IT Ventures and Joshua Kushner’s Thrive VC (See poster for details).

According to data from the National Venture Capital Association, VCs are increasingly

investing on the East Coast (see graph below). The funding gap between the

Valley and New York has narrowed. The West Coast is still far ahead in terms of total investments: between 2008 and 2011, VCs invested $9.5bn in NY, compared to $48.6bn in Silicon Valley. But the number of deals completed per year in NY increased over the past five years, whilst in Silicon Valley the number declined. In recent years the number of completed deals in New York has risen faster than the total amount invested meaning that investment firms in NY are focusing on startups and early-stage companies, assigning smaller amounts per deal and widening their portfolio.

New York will soon pass Boston to become the tech runner-up. Although Massachusetts

still beats New York on total value invested, the gap is closing here too. In 2010 165 internet startup funding deals were closed in New York, just 113 were closed in Boston. Although both cities are booming, New York is growing faster.❑

77



Above: Venture Capital Investment in New York and Silicon Valley 2001-2010 (NVCA)

Investment Scene

88



Investment Scene

State Invest-ment

The State of NewYork has been wide-ly criticised for not

providing the infrastructurefor tech innovation. Entre-preneurs say current pub-lic investment is not tailoredto them and too top-down.Mayor Bloomberg has beentrying hard to shake this per-ception. The city’s first ChiefDigitalOfficer, Rachel Sterne,was instigated in January. Shewill direct New York’s digitalstrategy. The New York CityEconomic Development Cor-poration funds many of theprogrammes,butshareseffortsandresourceswiththeDepart-mentofSmallBusinessServices,theDepartmentofInformationTechnology and Telecommu-nications and the Office ofMedia and Entertainment.

• An appeal for a new tech university in New York to be sponsored by local

government

• A website called the Business Express Wizard, a simplified business incor-

poration tool with digitally-issued licences and permits

• Business training programs for entrepreneurs, FastTrac and JumpStart

• Six sponsored workspaces and incubators (see poster for details)

• Creation of a $22 million New York City Entrepreneurial Fund (in part-

nership with FirstMark Capital)

• Contests such as NYC Big Apps and NYC Next Idea

• Open access to NYC Platform, a public set of APIs, and NYC Datamine,

a group of 350 sets of local authority data

Above: Mayor Michael Bloomberg is leading an effort to encourage tech entrepreneurship

Officialpoliciestoencourageinnovationalreadyinplaceinclude:

MAYOR BLOOMBERG APPOINTED RACHEL STERNE AS THE CITY’S FIRST CHIEF DIGITAL

OFFICER

99



Investment Scene

Education and Entrepreneurship

NewYorkdoesn’thaveanobviousequivalenttothefamousengineeringcollegesStanfordor Berkeley on the West Coast, churning

outstardevelopersofthefuture.Thiscouldbeamajorstumbling block for New York; the integration ofthe large techcorporations inSiliconValleywith theStanfordCampusiskeytotherapidcyclingofacademicinnovation to commercialapplicationsontheWestCoast.

Mayor Bloomberghas advertisedfor a university

to set up a satellite campuswithin thecityonapatchof localgovernment land,inviting applications from around the country.StanfordUniversityhas expressed interest inopeninga satellite campus.The university wants to invest inan applied-sciences research campus and replicatetheirformulaoutEast.Theproposalisoneofthe18presentedtotheNewYorkCityEconomicDevelopmentCorporation(NYCEDC).Theseinvolve27universities

whoarewillingtobepartofthenewNYtechscene.The NYCEDC will choose the final candidate laterthisyear(2011)andpayforsomeofthesetupcosts.

Within the city, New York University(NYU) is the most active at trying tofoster tech entrepreneurship. Tech@

NYUisaprogramthatconnectstechnologistswithentrepreneurs,promoting startup events andteaching coding skills to thosewith no technical background.The university is also investingsignificantly in its Polytechnic

arm–NYUPoly–asanaturalhomeforstartups.ThePolytechnicinstitutehasthreeincubatorsandpartneredwiththeNYCSeedfundformentoringandfunding.

IvyLeagueColumbiaUniversityisstilllaggingbehindin terms of web startups. Columbia technologyventures is very successful but focusesmostly on

lifesciencesandpharmaceuticalventures.Nevertheless,theuniversityalsopresentedaprojecttoNYCEDC❑.

MAYOR BLOOMBERG APPOINTED RACHEL STERNE AS THE CITY’S FIRST CHIEF DIGITAL OFFICER

Below: Stanford is willing to build a science campus in New York

1010



Business Opportunities

CreativeIndustries

New York startups are currently focus-ing on what the city is most knownfor– itscreative industryandconsum-

er-facingretail.Thecityhasalwaysbeentheme-dia and publishing capital of the United States.Media, communications and publishing indus-tries are the second biggest tenant inNewYork,accounting for 14 percent of the new leases.

Thecreativeindustriesarepartofthecity’sDNA and startups are taking advantageof it. After all, these are the industries

that are being transformedby the Internet.Newinternet businesses interacting with traditionaladvertising, marketing or publishing companiesneed tobe in thecity. It iswherepotentialpart-ners and clients are and proximity still plays animportant role when establishing partnerships.NewsCred is an example of a tech startup inNewYork working along these lines.NewsCredstarted as a community-curated news ranking

system,butmovedtoNewYorkpivotedthisyearto white-label content aggregation and distribu-tion(similartoStrategy Eye,butforopensites).

Apart from Marketing and Advertis-ing, Fashion is also a trending sector.Several startups are shortening the dis-

tance from the catwalk to the web, and poten-tially accessing an enormous market: online ap-parel sales were estimated at $26.6B in 2008,up 17% over the previous year (see trends).The music industry is also going through a re-vivalasstartupsreinventthewaypeoplelistentomusic and watch video.The overall music mar-ket is shrinking (total industry sales are estimat-edtohitanewlowin2014at$5.5B,comparedto industry sales of $10B in 2008), but digitalmusic sales are growing. NY-based startups likeEx.fm, Dubset, Blurts.com or Broadkastr arewell-placed to carve a niche from the vacuumof themusic labels, using semantic search, user-generation and socialmedia tools to deliver andsharemusic,soundandvideoininnovativeways.

Business Opportunities Below: New York is the US media and advertising capital

1111



NY Startups -a different kind

New York startups tend toapproach different mar-kets to those in Silicon

Valley. Startups in the Bay area fre-quently focus on cutting-edge back-end technology where they have aclear competitive advantage.Years ofexperience, close connections withtech universities, a dense contactnetwork andmajor neighbours suchas Google or Facebook, help newventures acquire funding and investinproducts that take longer tobuiltbut have explosive growth potential.Ontheotherhand,NewYorkstartupscanfillacleargapinthemarket.NYventures focus mostly on ConsumerWeb (the exception being financialand marketing analytics). As it be-comescheapertosetupanewcompa-ny,NYentrepreneurstendtoinvestinproductsorservicesthatdonotrequireasmuch technical expertise and thatcanhitthemarketsoonafterproduc-tising.Thesemight have lowermar-ginsandlowergrowthrates,buttheycan grow steadily and easily expand.

Financial Services

NY startups are developingsolutions for offline prob-lems, resolving market

inefficiencies and streamlining op-erations.Duetothecity’sintegrationwithWallStreet,localcompaniesarewell-positioned to understand cli-entsfromthecorporateandfinancialworld andmeet their needs. Formerengineering staff from financial in-stitutions are an asset for startupteams, since they combine technicalskills with business acumen and anacute awareness of the shortcomingsoftechsolutionsinfinancialservices.Financial services represent a hugemarket ripe for exploitation by techstartups.Celentexpectsglobalfinan-cial institutions to spend $363.8bnon external software in 2011. Banksand Hedge Funds have been work-ing on ambitious algorithmic trad-ing platforms for years and theywelcome innovation in these sectors,becoming extremely valuable clients.The FinTech Innovation Lab dem-onstrates the appetite for this kindofinnovation.It isatechstartupin-

cubator for ideas that could disruptfinancial services. Staff at Bank ofAmerica,BarclaysCapital,Citigroup,CreditSuisse,DeutscheBank,Gold-manSachs,J.P.MorganChase,Mor-ganStanley,StateStreetandUBSwillchoosewhichteamsmakeitin,win-nerswillbeannouncedinJuly2011.VCfirmsContourVenturePartners,Polaris Venture Partners, Rho Ven-tures,RREVentures,VillageVenturesand Warburg Pincus will providethe initial investments. Graduatingstartups will have unparalleled ac-cess to clients and contacts onWallStreet. Hidden Levers (see start-ups to look out for) is an emergingstartup (actually based at theVarickStreet incubator – see poster) work-ingoninvestmentanalyticssoftware.Enterproid (see startups to lookout for) is a good example of a hy-brid consumer/commercial prod-uct.The team has a financial back-ground from Morgan Stanley andhasjustlaunchedanapplicationthatsplits the phone in two separate en-vironments (work and leisure)..❑

Business Opportu-

Above: Corporate NY is a huge market for startups

1212



Fashion

NewYorkisthecountry’sfashioncapital – a sizeablemarket thatisstillmostlygroundedintradi-

tionalsupplychainsandofflinesaleschan-nels. Online fashion sales are increasingyear-on-year, growingfaster thanpersonalfi-nance, electronics andhealthcareaccordingtodata from ComScore.Similarly, the Master-cardSpendingPulsere-portshowsUSonlineclothingsalesgrewby28%lastChristmascomparedtoDecember2009.Newonlinetoolsareoptimisingthefashionmarket.Naturally,NewYorkisthebestplaceforthesecompaniestoobloom.

Fashion GPSisoneoftheseleadingNew York fashion innovators thatcould only have come from New

York.They developed an inventoryman-agement system that tracks items lent tostylists and publishers and evaluates therelationship between brands and maga-

zines. Tailor-madefor the fashion indus-try, Fashion GPS hasgainedalotoftractionin the last2years andhasmorethan60cor-porate clients. On the

same note, startup Joor (see startups tolookoutfor)wantstodisruptwholesaling.BoutiquescanuseJoortoscoutfornewde-signersandmaketheirordersonline,with-outspendingtimeinshowrooms,browsingsamplesormeetingdesignersindividually.

Trends

US ONLINE CLOTHING SALES GREW 28% DECEMBER 2009

TO DECEMBER 2010

Above: New York Fashion Week Spring/Summer September 8-15

Trends

13



Fashionstartupsarealsowork-ing onmaking luxury itemsaccessibletomiddle-rangeus-

ers.Startups suchasBirchbox andEdition01(seestartupstolookoutfor)havefoundnewwaystodeliverhigh-valueproductstoonlineusers.

OtherfashionprojectssuchasFashionStake orSvp-ply use different web

2.0 techniques like internet crowdsourcing.FashionStakeisanonlinemarketplace for users to pre-ordercollectionitemsandfundalternativedesigners’newprojects.Svpplyislikeasearchengineforfashionitemsthatadaptsresultstooneneedsortaste.

Since it is a market so sensi-tive to trends, innovativedata analysis is also starting

to play a role in online fashion.Startups such as Stylehop are try-

ing to analyse consumer patternsand produce fast fashion forecaststo merchants. Predicting the nextcraze based on real-time trackingofonline shoppingandcomments.

Above: The Chrysler Building

Trends

1414



TrendsAnalytics

Corporatesarewillingtopayto learn more about theirclientsandtomonetisethat

knowledge.StartupsinNewYorkcanleverageWallStreetexpertiseinreal-timedata-analytics,andselltothegi-antretailbrands,financialinstitutionsandadvertiserswithbasesinthecity.

Startups doing marketing ana-lytics are leading the trend.Withtheadventofsocialme-

dia, traditional measures of retailperformance: footfall, web trafficand voxpop polls, are being out-performed byonline tools.Companies stillneed to measuretraffic stats andc l ickthroughs ,but they arenow looking at more complex fac-tors such as interaction depth and

brand awareness. The targeted on-line advertising market is expectedtogrowsignificantlynextfiveyears,advertiserswanttoidentifytheirau-diencesbeyond the standarddemo-graphics and startups are answeringthose needs by working on hyper-specialized products, for exampleStylehop for fashion brands andLocalResponse for local-based ser-vices (see startups to look out for).

Ordergroove and Cognec-tion take analytics a stepfurther. Both NY start-

upsoffertoolsthathelpbrandsim-proving their customer retention.

O r d e r g r o o v etracks individualuser behaviouron websites andsuggests monthlysubscriptions foritems that a user

buys frequently. Cognection digsdeeper into irrational consump-tion behaviour in order to iden-

tify potential buyers and increasesales (see startups to look out for).

Many startups are alsobuilding Social Me-dia dashboards so that

brands can manage their presenceon the web and interact with theiraudiences. Postling is one of themosttalkedaboutinNewYork.Thecompany,foundedbyex-Etsymem-bers(anothersuccessfulNYventure)gives small businesses a set of toolsthat allows them to self-managetheir brand on multiple platforms.

Beyondsocialmediaandmar-keting, there are also othersectors that could use ana-

lytics tools. Profitably is targetingthoseclients,withitsfinancialmet-rics tools.Thestartup isdevelopingweb-based software for managers,bookkeepers and accountants thatcompiles and analyses customersales, payrolls, employee perfor-manceandotherbusinessmetrics.❑

STARTUPS IN NEW YORK APPLY WALL STREET ANALYTICS TO

RETAIL AND MARKETING

Trends

15



Roadblocks

Roadblocks

THERE STILL HASN’T BEEN A ‘PAYPAL EVENT’ IN NEW YORK

Above: There’s still a chance the New York tech scene will fizzle out.

Although journalists, entrepre-neursandinvestorshighlightNewYork’smomentum, they agree the

city still has many obstacles to overcome

Failuretoreachclimax

Afew successful startup exits havestarted nurturing the ecosystemneededforstartupstothriveinthe

city.Buttherehasn’tbeena‘Paypalevent’,ahugekeystonecompanythatleavesbehindamass of skilled and entrepreneurial staffonexitwhocandeveloptheir own startup pro-jects.Themostobviousway New York couldhurdle this roadblockwould be for severalmedium-sizedcompaniestomerge.ThisisthemostpromisingroutetoablockbusterM&Amarkettoo(seeMergersandacqui-

sitions). If Foursquare or tumblr mergewith other internet companies and exitquickly,theirstaffmightthenplaythatrole.

Bubbles

Startups are attracting more fundingasangelsandVCsseethemasexcit-ing bets. Many in the sector deny

that a second tech bubble is in themak-ing.Theyarguethatthecurrenthighvalu-ations are simply aproductof supply and

demand. But otherspoint towards exces-sivevaluationsthatarefeeding an inevitablebubble. A failed IPOor one that does notmeet the current high

expectationscouldbetheneedlethatpopsthebubble,deflatingthepartyatmosphere.

16



Roadblocks

Moving West

TheNYCstartupsceneisundeniably immature.Despite the sheernum-

berofeventsandVCfirmstherearefewmid-stagefunds.Thereisacleartrendforstartupstomoveh e a d q u a r -ters to seriesSiliconValleywhen theya p p r o a c hB roundsof fund-ing (see Mergers and Acquisi-tions). It’s still fastest to raise fi-nance in theValley.We do notexpect mid-market mergers andacquisitions in the next threeyears, mostly for this reason.

Lack of talent

Ashortage of skilled de-veloperscouldstillholdbackNewYork. As the

economy recovers, financial ser-

vicesandcorporate jobsbecomemore attractive again and fewerwillpreferthethrillsofastartupto the comfortable bonuses ofWall Street. Universities in theareaarenotdoingenoughtoat-tract students into technical ca-

reers. NYUis primar-ily an artsschool. Thearea needs awhole newg ene r a t i on

of highly skilled technical staffwith knowledge of fast-growingandscalablebusinesses,whoun-derstand how startups work.

New York will not ap-proachSiliconValleyasatechhubwithinthree

years.ButthatdoesnotmeanNewYorkcan’tbesuccessful.Focusingontherightindustries,NYstart-upscanstillchangetheworld.❑

THERE IS A CLEAR TREND FOR STARTUPS TO MOVE WEST FOR A

SERIES B ROUND

Below: Westward Ho!

17



Mergers and Acquisitions

Since2009,60NewYork-based softwarecompanies were acquired, for a totalamountof$2.8bn.Halfofthedeals’val-

ueswereundisclosedbutwecanseethatmostof them were under $100m (see next page).Thereisaconspicuousgapbetweenthesmall-estexitsandthe largest.Onlyfourcompanieswere bought for around the $100m mark.

Facebook and Google were among theshoppers in NY. The social networkacquired cloud storage startup Drop.

io for $17m. Google acquired advertisingstartup Invite Media for $40m and videostartup On2 for $132m - one of the mostexpensive deals within the internet sector.

Other web/mobile exits included ap-plication developers AppSense,KickApps and Wimba, gaming

companyBoonty and Jack of All Games.❑

Announcement Date

Bidder Company

Target Company Seller Company Deal Value (US$m)

24-Mar-09* Victory Acquisition Corp

TouchTunes Music Corporation

318

05-Aug-09 Google Inc On2 Technologies Inc

132

31-Jan-11 KIT Digital Inc KickApps Corporation

North Atlantic Capital Corporation; Prism Venture Partners; Softbank Capital Partners; and Spark Capital

45

21-Dec-09 Synnex Corporation

Jack of All Games Inc

Take-Two Interactive Software Inc 43

29-Oct-10 Facebook Inc Drop.io Inc RRE Ventures LLC; and DFJ Gotham Ventures 17

21-Jan-11 Zynga Inc Zynga New York -

20-Oct-10 SG Growth Partners I

Voyetra Turtle Beach Inc (Majority Stake)

-

12-Jul-10 SAC LLC Motionbox Inc Constellation Growth Capital; Canaan Partners; and SAS Investors

-

22-Jun-10 4Info Inc Butter Inc -

12-Jan-09 Nexway SA Boonty Inc Weka Entertainment -

Above: Select deals in web/mobile application space. * represents lapsed deal


18



Users/Contracts Signed and Projections

Announcement Date

Bidder Company Target Company Seller Company Deal Value (US$m)

26-Oct-09 Dassault Systemes SA

IBM Corp (Product Lifecycle Management)

IBM Corporation 600

23-May-11 Kohlberg Kravis Roberts & Co

Ipreo Holdings LLC Veronis Suhler Stevenson 425

22-Nov-10 News Corporation Wireless Generation Inc (90% Stake) 360

24-Mar-09* Victory Acquisition Corp

TouchTunes Music Corporation 318

26-Apr-11 Pearson Plc Schoolnet Inc The Carlyle Group LLC 230

05-Aug-09 Google Inc On2 Technologies Inc 132

27-Aug-09 NYSE Technologies Inc

NYFIX Inc Warburg Pincus LLC 106

31-Aug-09 NICE Systems Ltd Fortent Inc Warburg Pincus LLC 74

23-Feb-11 Goldman Sachs AppSense Inc (Undisclosed Economic Interest)

70

07-Jul-10 Blackboard Inc Wimba Inc 60

04-Feb-10 Industrias Romi SA Hardinge Inc (49.3% Stake) 57

31-Jan-11 KIT Digital Inc KickApps Corporation North Atlantic Capital Corporation; Prism Venture Partners; Softbank Capital Partners; and Spark Capital

45

21-Dec-09 Synnex Corporation Jack of All Games Inc Take-Two Interactive Software Inc 43

02-Jun-10 Google Inc Invite Media Inc Comcast Ventures; First Round Capital; and Genacast Ventures 40

24-Mar-11 R R Donnelley & Sons Company

Journalism Online LLC News Corporation; Steve Brill (private investor); L Gordon Crovitz (private investor); and Leo Hindery Jr (private investor)

35

28-Jul-09 Vista Equity Partners MicroEdge Inc Advent Software Inc 30

19-Jan-10 InterCall Inc Stream57 LLC 28


1919



Captial Intensity/Shareholder Details

Announcement Date


24-Aug-09 TIBCO Software Inc DataSynapse Inc Goldman Sachs; Intel Capital; Bain Capital LLC; Wand Partners Inc.; Wachovia Strategic Ventures; NeoCarta Ventures Inc; Stonehenge Capital Company, LLC; New York City Investment Fund; and Silicon Alley Venture Partners LP

28

26-Aug-09 Instinet Incorporated TORC Financial LLC JDI Financial 21

09-Mar-11 Syntellect Inc CosmoCom Inc 20

22-Jun-10 TIBCO Software Inc Proginet Corporation 18

29-Oct-10 Facebook Inc Drop.io Inc RRE Ventures LLC; and DFJ Gotham Ventures 17

02-Feb-11 Savoye Inc Retrotech Inc 14

17-Sep-09 RuggedCom Inc WiNetworks Inc Columbia Capital; Rho Capital Partners Inc; Cedar Fund; and Evergreen Venture Partners

14

05-Jan-10 Dot Hill Systems Corp Cloverleaf Communications Inc BancBoston Capital Inc; Genesis Partners Ltd.; Hyperion Israel Venture Partners; and Catalyst Investments LP

12

05-Oct-09 KIT Digital Inc The FeedRoom Inc Velocity Equity Partners LLC; BEV Capital; and NewSpring Capital 10

17-May-10 RTN Stealth Software Inc Market Guidance Systems Inc 7

25-Jan-10 VistaPrint NV Soft Sight Inc High Peaks Venture Partners 7

12-Aug-09 CIBC Capital Partners; and ABS Capital Partners

Digital Mandate LLC 6

09-Nov-09 GTCR Golder Rauner LLC NYFIX Inc(Transaction Services business)

NYFIX Inc 5

21-Jun-11 Oracle Corporation FatWire Corporation -

12-May-11 Updata Partners CA Technologies (Internet Security Business Unit)

CA Technologies -

21-Apr-11 ION Trading Wall Street Systems Warburg Pincus LLC -

12-Apr-11 Baymark Partners Computer Integrated Services Company of New York LLC

-


20



Announcement Date


21-Jan-11 Zynga Inc Zynga New York -

18-Jan-11 Adobe Systems Incorporated Demdex Inc -

07-Jan-11 Wall Street Systems Thomson Reuters Corporate Treasury Manager

Thomson Reuters Corporation -

07-Jan-11 DRS Sonar Systems LLC Advanced Acoustic Concepts LLC -

30-Dec-10 WPP Digital Blue State Digital LLC -

06-Dec-10 AT&T Inc Xanboo Inc -

03-Dec-10 BMC Software Inc GridApp Systems Inc -

08-Nov-10 Undertone Inc Jambo Media LLC -

20-Oct-10 SG Growth Partners I Voyetra Turtle Beach Inc (Majority Stake)

-

08-Oct-10 Hellman & Friedman LLC Wall Street Systems -

05-Oct-10 Oracle Corporation Passlogix Inc -

10-Aug-10 IBM Corporation Datacap Inc -

28-Jul-10 StrongMail Systems Inc Conversa Marketing LLC; and Magnetik Communications LLC

-

12-Jul-10 SAC LLC Motionbox Inc Constellation Growth Capital; Canaan Partners; and SAS Investors

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01-Jul-10 Zumasys Inc Choice Computing Inc -

23-Jun-10 Algorithmics Inc VIPitech Towers Watson & Co -

22-Jun-10 Genstar Capital LLC Netsmart Technologies Inc (Undisclosed Stake)

Bessemer Venture Partners; Insight Venture Partners; and Salmon River Capital LLC

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22-Jun-10 4Info Inc Butter Inc -


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Announcement Date


09-Feb-10 Thomson Reuters Corporation Aegisoft LLC -

04-Jan-10 FXall Ltd Lava Flow Inc Citigroup Inc -

09-Nov-09 Carlyle Partners V LP Open Link Financial Inc TA Associates Inc -

22-Oct-09 Edline LLC SchoolWorld RMK Holdings LLC -

15-Sep-09 Rocket Software Inc IBM Corporation (U2 Data Servers and Tools)

IBM Corporation -

04-Mar-09 Marlin Equity Partners LLC MDeverywhere Inc -

25-Feb-09 CDNetworks Co Ltd Panther Express Greylock Partners -

12-Jan-09 Nexway SA Boonty Inc Weka Entertainment -

05-Jan-09 CA Technologies Orchestria Corporation Goldman Sachs; Benchmark Capital; Paladin Capital Group; Constellation Growth Capital; RRE Ventures LLC; Focus Ventures; Doughty Hanson Technology Ventures; and New York City Investment Fund

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The Hyped

• Postling

Postling isa socialmediamanagementtool forsmallbusi-nesses.Brandscanmonitorandmanagetheirpresenceondif-ferentsocialnetworksthroughPostling’sdashboardwhereallbrandmentionsarecompiledandanalysed.Userscanpostup-datesacrossdifferentplatforms,seereviewsthatmentionthecompany, track influential advocates among other features.

ThecompanywasfoundedinJune2009byformerEtsystaffDavid Lifson (CEO), ChrisMaguire (VP of Engineering)andHaimSchoppik(CTO)andlaunchedatthe incubatorDreamITVentures.Sincethen,itraised$700kintworoundsofinvestment.Currentlyithas21,000userswhoaccountfor10,000businesses and is aiming at a $3mSeriesA round.

The Marketing analytics sector is quite crowded withtools like Tweetdeck or Hootsuite. New startups suchas Comufy, Brizzly, CoTweet, MediaFunnel, Spred-fast, Netvibes or Threadsy are also going after smallbusinesses for their social media and marketing strategy.

• Group.me

Group.me is group texting application. Creat-ed in October 2010, it recently launched version2, including location-awareness and photo-sharing.

Co-founders Jared Hecht and Steve Martocci developedGroup.me at a TechCrunch disrupt Hackathon. TheNY startup has secured $11.5m in two rounds of fund-ing. It raised an initial round of angel funding ($850K)with Betaworks, First Round Capital and Thrive VC,among others. In the beginning of 2011, a series Bround of $10.6M brought Khosla Ventures, Lerer Ven-tures, General Catalyst and Founder Collective on board.

ByMay2011, ithadsent100millionmessages.Thecom-panywas recentlyon thenewsagainafter acquiringblack-berryapplicationdeveloperSensobiforanundisclosedsum.

There is a lot of competition in the group texting sector.FastSociety targetspartiesandconcerts’ fans.Yobongo fo-cusesongeo-locatedchatrooms.InstantmessagingKikalsoprovides group-texting features and Beluga was recentlyacquiredbyFacebook.Group.me’snew features alsopointtowards amore comprehensive ‘privatenetwork’ likePath.

Startups tolook out for


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The Fashionable

• Joor

Joorisaprivatenetworkforfashiondesign-ersandretailers.Boutiquescanusetheplat-form tobrowse throughdesigners’ collec-tions,findnewbrandsandplacetheirorders.

MonaBijoorfoundedthecompanyafterherexperienceasafashionbuyerintradeshowsandshowrooms.Theonlinewholesaleplat-formalreadyhas200brandsand1500re-tailersandisaimingat1000designersand7500storesglobally. It focusesexclusivelyonwomen’swearandcontemporarybrands.

Joorfacescompetitionfromotherwhole-saleplatforms,suchasretourware24,butnone focuses solely on high-end fashion.Fashionstakeisalsointhesamemarket,asan alternative crowdfunding platform forfashiondesigners.Eventually,otheronlineretailerssuchasnet-a-porterorASOScouldgo into the professional market as well.

• Edition01

Edition01 is a fashion startup that sellslimited edition and luxury items online.Thestartupwasfoundedin2010andit islaunching officially in September 2011.

• Birchbox

Birchboxisamonthlysubscriptionservicethatdeliversluxurybeautysamples.Usersgetaboxeverymonthwithaselectionof4to5productsfor$10permonth.Theweb-siteisalsoanonlinebeautystorewhereitispossibletobuytheactualproduct.Itfeatureseditorial content on beauty and lifestyle.

Harvard alumni Katia Beauchamp andHayleyBarnafoundedthecompanyinSep-tember2010andhavemorethan20,000subscribers.Investors includeFirstRoundCapitalandAccelPartnerswholedaSeedroundof$1.4m.OtherindividualinvestorsareSamLessin(founderofdrop.io),DaveMorin (founder ofPath),MichaelDear-ing,KirstenGreenandGaryVaynerchuk.

There are many online beauty stores,such as feelunique.com, but most relyon more traditional ecommerce solu-tions. Yellow Box Beauty is also onthe samples by subscription market.

• ClothesHorse

ClothesHorse is an online shoppingtool that helps users find clothes that fitthembest. Itworks as a toolon retailers’websites that helps them decide whichsize to choose. On ClothesHorse web-site, users can also browse and find newdesigner clothes based on their taste.

The startupwas foundedbyDaveWhit-temore, who had experience in theclothing business after his first ven-ture Started a custom clothing com-pany, V Bespoke. Dave is also thePresidentofColumbiaVenturesCommu-nityandNewYorkVenturesCommunity.

ClothesHorse is ‘launching soon’.

THERE ARE MANY ONLINE BEAUTY STORES, BUT MOST RELY ON TRADITIONAL ECOMMERCE


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The Musical

• Dubset

ThisInternetradioallowsyoutodiscovernewmusicrecordedliveatclubsandevents,and create your own custom channel.

David Stein, CEO and found-er of the company who worked as aclub promoter in a previous life. Helaunched the company in February.

Dubsethasdevelopedamusicfingerprint-ingtechnologycalledMixScantoidentifymultiplesongsinamixandthenaccuratelyreportsthemlicensingorganizationstopayroyalties to artists.This technology is themainfactorthatseparatesDubsetfromitsmostsimilarAustriancompetitor,Play.fm.

The platform works as a market-ing tool for DJs and the venues thatthey play at. About 500 DJs have setup profiles. The self-funded startup isstill exploring its monetising options.

• Exfm

ExfmisaChromeextensionthatturnsthewebintoapersonalmusiclibrary.ThissocialmediadiscoveryplatformgatherseveryMP3fileasyoubrowsetheweb,buildingamusiclibraryandsimultaneouslycheckingall thesites visited, adding new music every day.

ThecompanywasfoundedinMarch2010in New York City by Dan Kantor. Previ-ously,hefoundedStreampad,asocialmusicservicethatwasacquiredbyAOLin2008.

In October 2010, the company raised$1.25m in seed funding that includ-ed Spark Capital Partners, Betaworks,Dave Morgan and Founder Collective.It was launched in March 2010 underthe name of ExtensionFM but in ad-dition to the name change version 2.0of the plugin has now been launchedwith new features, including integra-tion with Twitter, Facebook and Tumblr.Ithasrecentlylauncheditsfirstmobileappfor iOS and now has around 50K users.

The Analytical

• Cognection

Cognection is an online retail toolthat wants to quantify and analyse ir-rational consumption behavior. Its aimis to turn that datainto valuable infor-mation for retailers in order to increasetheir sales and customer retention rates.

ThestartupwasfoundedbyPaulM.Co-hen(CEO)whohasabackgroundincog-nitive science and behavioural econom-ics, as well as professional experience ononline retailing. Warren Samlin (COO),Jeff Shaffer (CTO) and Rogerio Can-deias(ChiefScientist)completetheteam.Cognectionwas launched and funded byDream ITVentures ($25k). It isnowac-cepting applicants for its beta program.

Other companies are looking at on-line consumption patterns, such asOrdergroove but Cognection’s ap-proach to irrationality is very innovative.

• Gamechanger

Gamechanger is an application pro-viding aamateur sports statistics. Fornow, it focuses only on baseball andsoftball but the team is working on itsproprietary agnostic ‘stat engine’ in or-der to expand to other sports easily.

The free application was created by TedSullivan(CEO)andKirilSavino(CTO),an ex-doubliclick developer. Foundedin January 2009, Gamechanger alreadylists 24,000 teams. Recently, it landed apartnership with CBS high school sportswebsite MaxPreps.com and with startupNarrative Science, which automaticallytransformsrawdataintojournalisticreports.

Thestartupfacescompetition fromotherscorekeeping tools such as ESPN iScore.Also, many specialized social networkscouldgoaftertheamateursports’statsmar-ketsuchasPitcheroorBluefields.Othersports have their own apps, asShotViewdoes for Golf. Since 2009, it has raised$1.06minthreeangelinvestmentrounds.


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• Profitably

Profitably is a web application for smallbusinesses where managers and account-ants can keep track of their financialdata. Users can analyse metrics on pric-ing, sales or payrolls and get recom-mendations on which areas to act first.

Adam Neary (CEO) founded the com-panyinMarch2010withFrancisHwang(CTO). Graham Siener and Chad Pughcomplete the founding team. The com-panyishostedattheincubatorGeneralAs-semblyand ithas raiseda totalof$1.4min two rounds of funding. Main Inves-tors include North Bridge Venture Part-ners,DavidTischandWhiteOwlCapital.

The company faces competition fromotherfinancialmetricsdashboards,suchas60mo,Star analyticsandmostCustomerRelationship Manager (CRM) services.

• Ordergroove

Ordergrooveisaclient-retentionplatformfor ecommercemerchants thatprovides asortof ‘RSS feed foronlineproductsonecan subscribe to’. It tracks repeated pur-chases,proposing thena subscriptionop-tion for the most purchased products.

Thecompanywasfoundedin2008byGregAlvo,whohadexperienceinonlineretail-ingafterworkingatLiquidation.com.TheteamincludesScottSimonelli(VPofSalesandServices),JorgeEscobar(VPofEngi-neering)andEricStucki(VPofMarketingandOptimization).PeterFadersitsontheBoard ofAdvisors next to JulieConstan-tin,MichaelGoldsteinandMarkWachen.This SaaS solutionworks as a self-serviceplatformwhereclients(onlineretailers)canmonitorandchangetheirsubscriptionop-tions,aswellasmanageinventoryandcus-tomerservice.Ordergroovefacescompeti-tionfromanycustomerloyaltysolutionandfrommanyCRM systems.Others in theclient-retentionsectorincludeRightNow,Loyalty Bus or Cognection, althoughthey all approach the sector differently.

• Opinionaided

Thisfreeapplicationisaplatformforreal-timeanduser-generatedfeedbackonotherusers’ questions. Created in May 2010,it generated 90million responses to over1.2millionuserquestionsinitsfirstyear.

Dan Kurani is the startup’s founder andCEO.InMarch2011,heraised$1.2minanAngelroundthatincludedGeneralCat-alyst,SoftBankCapitalandDraperFisherJurvetson.The applications is nowon itsversion3.0,whichincludesnewcustomiza-tionfeatures,beyondvotingandcomenting.

Question-basedserviceQuoraand,toacer-tainextent,Twitteroperateinthesamemar-ket.Otherwebsiteswith‘how-to’featuresalsogoforthequestionandanswermodel,suchasChachaorMahalo.Youngerstart-upsSnaptagandFashismalsorelyonthesamecrowdsourcingprincipleofinstantus-er-generatedcomment,helpinguserstode-cideonpurchasesandoutfits,respectively.

• Enterproid

Enterproid’sapplication–Divide–splitsmobile phones in two separate environ-ments,whereuserscanhavetheirworkandleisuredatastoredonthecloud.Enterproidis targetingcorporateclientsbyprovidingthem an alternative to RIM Blackberrywhereuserscanstillkeeptheirpersonaldataprivateandtheirprofessionalinfosecure.Itlaunched its private beta inMarch2011.

The company was founded in Janu-ary2009by formerMorganStanley staffAlexander Trewby, David Zhu and An-drew Toy. It is headquartered in NewYork but it has offices in Hong Kong(where the technical development is)and in London. Since January 2010 ithas raised$1.8m in two roundsof fund-ing. Comcast Capital is a main investor.


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The rest

• Broodr

Broodr isanonlinemarketplacewhereuserscanselltheirinventions.Theplatformshow-casesuniqueobjectsandtoysandcollectsa5%feeforeverytransaction.ItlauncheditsprivatebetainApril2011anditisaim-ingtoreach500sellersbythenextmonth.

JasonBlanck founded the startup in thebeginningof2010afterwinningthe2011NYSBusiness PlanCompetition and hasrecently moved to New York for a resi-dencyatOMDincubator.Thecompanyisalsoplanningaseedroundofinvestment.

Broodr faces competition from well es-tablished ecommerce platforms like eBayor Amazon where one can buy virtu-ally anything and other gadgets’ websitessuch as iwantoneofthose.com or firebox.

• SeatGeek

SeatGeek is a ticket search engine forsports, music and culture. It focuseson the ticket secondmarket, aggregat-ing data from different sources. Seat-Geek also uses data analysis to fore-cast tickets’ prices and spot good deals.

DarthmouthalumniJackGroetzingerandRussell D’Souza co-founded SeatGeekinMay 2009, during the firstDream ITVentures incubator in New York. Sincethen, they have raised $2.12M from alarge group of investors including StageOne Capital, Founder Collective, NYCSeed,LererVenturesandAshtonKutcher.

Thestartupusesasimilarprocesstoflightssearch engine such as kayak or Orbitzand its main competitors are FanSnapand sellers such as Ebay orTicketmaster.

• Hoot.me

Hoot is a Facebook application thatadapts the social network to ‘studymode’. Users – teachers and students– ccan collaborate on school projectsvia Facebook, through features suchas screen sharing or video conference.

The company was founded by GauravSanghani (Senior Developer), MichaelKoetting (CEO) and Sid Upadhyay(CTO) in June 2010. Recently it $25kin seed funding from Dream IT Ven-turesandmovedfromTexastoNewYork.

• Selfey

Selfey is a marketplace where users canbuy and sell their spots in a queue.Theapplicationtellsuserswhoelseinlineandif someone is willing to sell their place.

The startup pitched at NYC Start-up Weekend and it plans to launcha beta testing in the near future.


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• Broadkastr

Broadkastr is a social discoverytool for video that uses differ-entAPIs to source video, just asTurntable.fm does for music.

Founder Nayan Behal got fourother members on board andthe team is now working onthe application development.They pitched at NYC Start-up Weekend and are planningto launch a beta testing soon.

• Guyhaus

Guyhaus isa serviceofmonthlydeliveredhousesuppliesformen.The company was founded inApril 2011 and is launching analpha testing next month. Thestartup is also planning a simi-lar service forwomen– galhaus.

Founder Jesse Middleton hasa background in entrepreneur-ship and startups.He previouslyfounded ChefAme, an onlinecommunity for local chefs. An-drew Sternthal, Michael Olivercomplete the founding team.

• Newscred

Newscred is a content platformthat aggregates and providesnewscontenttocorporateclients.The company was founded in2007byShafqatIslam,whopivot-edfromhisinitialideaoffindingrating and voting news sources.InvestorsincludeFloodgateFund,IAVenturesandNavalRavikant.

Newscred offers both a free anda pro version, where users canedit their newspapers, write edi-torialsandmonetizetheiroutlets.

There are many players in theniche news andDIY newsmar-ket. Meehive, a similar servicefromKosmix,wasshutdownlastyear.Outbrain also refocused itsservice.TabbloidandFeedlyareapplications that provide similarservices.StrategyEye is themostdirect competitor, since it tar-getsthecorporatemarketaswell.

• Brandpulsar

Brandpulsar is a brand-recogni-tionadvertisingtool.Itrecognizesbrands’logosinphotosanditdis-playsinteractiveadvertisingrelat-edtothebrand.Theserviceistar-getingpublishersandbrands,whocanalsousenon-brandedimagesto advertise their related prod-ucts(forexample,acarbrandcanuse all car pictures to advertise)

The founding team of Brand-pulsar is made by Etienne De-paulis, Addy Feuerstein, Court-ney Davis, Hadrien Kulik,Nicolas Desjardins and Nico-las Kiehl. The team pitched atNYCStartupWeekendandtest-ed its product on Techcrunch.

• Snaptag

Snaptag is an iPhone applica-tion for social shopping. Userstake a picture of the item theywant to buy and enter price de-tails.The applicationposts it onthe snaptag platform and othersocial networks, where users canrate and comment on the deal.

Snaptag was founded by AyalEbert and launched official-ly in June 2011. Other socialshopping tools include Bar-code Hero and TreatFeed.


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• HiddenLeversHiddenLevers is a financial startup thatanalyzes macroeconomics factors andtheir impacton individuals’ portfolios. Itsproductsincludetrendssetting,riskanalysisand economic data. The startups targetsprivate equity firms, traders, advisors andinvestorsingeneralastheirmainclients.ItalsoestablishedpartnershipswithBusinessInsider,CNNMoneyandMorningStart,whichfeatureHiddenLeverscommentary.

The company was founded by ex-WallStreet traders Praveen Ghanta and RajUdeshi inOctober 2009 and it was partof FinovateSpring2010. It competeswith traditional financial terminals suchas Bloomberg or Reuters. Brightscopeoperates a similar model, but it focusesonly on retirement savings plans.

• Tagify.usTagify is an online application thatmanages personal contacts, according totheirprofessionalexpertise.Theapplicationcrowdsources the needed info in ordertomakea contact’sprofilemoreaccurate.

The founding team pitched at NYCStartupWeekend and took the first placeof the competiton. Co-founders KelseyFalterandNikoPipaloffareworkingwithCorbinFields, Justas Janauskas, Steve LiuandCavaughnNoeltomaturetheproduct.

• Art.syArt.syisaplatformwhereuserscanbrowseart from museums, galleries and privatecollections.ItusesTheArtGenomeProjectas a reference todescribe and connect artpieces,providingnewartrecommendations.

Art.sy was founded in 2009 by CarterCleveland and Sebastian Cwilich, whohave a mixed background of art andComputerScience.The startuphas raised$1.41m in angel funding. Jack Dorsey,from Twitter, Eric Schmidt (Google)and Wendi Murdoch (News Corp)are some of the high-profile investors.

Currently,Art.sy is availableby invitationonly. The company faces competitionfromotherArtbrowsingplatformssuchasDeviantART, ArtFinder or ArtCalendr.

• Class.ioClass.io is a platform where teachersand students can communicate andshare resources. It includes features suchas homework management, facebookalerts, course timeline and it integrateswith Google Apps for Education.

The company is currently part ofincubator DreamitVentures. It willhave to compete with other educationalmanagement tools such as blackboard ormoodle and also with startup Hoot.me.

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DATA SOURCES

• Comscore - State of the U.S. Online Retail Economy in Q3 2010 - http://www.comscore.com/layout/set/popup/request/Presentations/2010/State_of_the_U.S._Online_Retail_Economy_in_Q3_2010_Video_Archive_Request?req=presentation&pre=State+of+the+U.S.+Online+Retail+Economy+in+Q3+2010

• Celent: “IT Spending in Financial Services: A Global Perspective,” January 2010 RMARKET• Mergermarket - New York M&A data• MasterCard Advisors’ SpendingPulse report - http://www.mastercardadvisors.com/us/advisors/en/information_analytics/spendingpulse.html• NVCA - Industry Stats - www.nvca.org/• NYC - Road Map for the digital city - http://www.nyc.gov/html/mome/nycodc/90dayreport.html• Nielsen - Driven by Digital, Music Sales up in 2011 - http://blog.nielsen.com/nielsenwire/consumer/cue-the-music-driven-by-digital-music-sales-up-in-2011/• Porter, M. - “Location, Competition and Economic Development: Local Clusters in a Global Economy.” Economic Development Quarterly 14, no. 1 (February

2000): 15-34.• Porter, M. - Clusters and the New Economics of Competition - HARVARD BUSINESS REVIEW - Nov 01, 1998.

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regional report | new york: after the alley

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