Live Blogging Capital Factory Demo Day--Sept. 7, 2011

[ Image from the Capital Factory promo video, available here. ]

The LAUNCH team live blogged the Capital Factory Demo Day, from the opening keynote to the five Capital Factory startup pitches to the final talk on recruiting talent.

Our profiles of the summer 2011 class: StoryMix, GroupCharger, SwimTopia, SpeakerMix and HelpJuice.

3:54: Joshua Baer is wrapping up. They want to boost the whole ecosystem -- thanks people for showing up today. Startup crawl is next -- meet other companies in Austin and those from today.

3:53: Yes, people who work at big companies are used to longer timelines. You need people who understand startup timelines. Someone who was at a big company can work at a small company if they've had experience at smaller organizations in their career or have had experience growing a small team within a larger company.

3:50: Question about hiring someone away from their own startup -- Auren hasn't had much luck doing that. Hard to convince another entrepreneur to walk away from their dream.

3:47: Hiring is not a zero-sum game. Great people might not always be the best fit for your company/values. Auren says someone who works for Google might not be someone he wants, and that person might not want to work for him.

3:39: You want people who are passionate and aren't looking for a 40-hour-a-week job.

3:37: Invest in people's growth since you can't necessarily pay them 10% more each year. Push them, teach them. These are likely to be general athletes, not position players.

3:36: Give people chances to opt out, you don't want a high percentage of people accepting your job offer who aren't the right fit.

3:34: What works in the interview process? Find out how the person communicates complex ideas to you. A developer needs to be able to explain things to you so you can understand it, for example. That person should find out your level first so they can adjust their explanation.

3:32: How to find out if someone is good? What they already did, references. Auren says you know if you worked with them in the past. Younger people don't necessarily have the same networks.

3:30: Treat the resume like a sales lead. If the person isn't right, get back to the person right away and let them know. Will pay off for your company. Even Steve Jobs and Steve Ballmer returned his emails when he was an engineering student.

3:29: Know if you need a position player (like a kicker for the football team) or an all-around smart people who can adapt as the business changes. Position players are expensive, don't hireb them unless you know you need that skillset for the next few years.

3:27: Use discrimination in your favor. In an interview, you can discriminate for values like working long hours. They tell people in interview "we work really long hours" and then people who don't want that can drop out of the process.

3:26: Auren Hoffman, CEO and co-founder of Rapleaf on recruiting/hiring tech talent.

3:24: Applause for all those who pitched. Speed pitches over. 

3:20: Jason Cohen of WPEngine --premier wordpress hosting company, Heroku for WordPress. They make sites very fast, 400% speed increase. Can scale and can prevent hacks because they automatically update the version of WordPress you're running. Estimates vary, but 8-14% of all sites powered by WP. 

3:17: Karen of VolunteerSpot. Collects affluent moms and pulls them online via activities they already are involved in. 20M women volunteer, moms out-volunteer other groups 3-1. They improve volunteer turnout. Can get users to work for them when they want them to, get them to act for the brands on VolunteerSpot. Angel round raised last year, raising again.

3:14: Stormpulse -- working with top brands and government, including White House to manage weather risks and weather awareness. All businesses affected by weather? Businesses want weather alerts. Who can escape the weather? Nobody. Spent 25K hours building amazing product. 3M people used the site last month and want the company to do more. Bootstrapped and now raising so they can keep building.

3:11: Charlie Wood of Spanning -- protect critical data in the cloud with a few clicks. Backupify covers everything consumers have in the cloud. Spanning focuses on Google apps and business customers. Raising Series B.

3:08: Rockify - engage and monetize fans of music and video content. Hard for content owners to monetize their videos online, they have to create applications for different web and mobile platforms. Rockify has two other music apps, tens of thousands of users. Cash-flow positive in 18 months.

3:05: Rodney Gibbs of Ricochet Labs -- create a game layer across all knowledge. Product is Qrank. Location awareness, leader boards, social sharing, audio and video, packaged in self-service toolkit so anyone can create and deploy mobile-based game and get data on people playing it. Passengers on flight can play game about city they are going to visit before they land. Qrank -- demo day game where you can answer questions about today's event [only if you are in this building ]. Qrank has over 400K users, working with BBC and Texas Tribune. Brands like Chevy using for contests. Video game companies have licensed platform for their own games.

3:02: Zack of Ravel tells story of mother getting kid ready in the morning and bringing him to [fill in the blank] -- everyone says "school." Your brain detected a pattern and predicted the future. Human brain can't do this for massive data. Ravel is enterprise software to predict behavior from massive data sets, things like detect when video goes viral, when power is going to brown out, when market is going to crash.

2:59: Jesse of NightRaft -- no one is engaging smartphone audience at live events. They have app for fans, community feed for each event: check-ins, tweets, Facebook comments, all in one dashboard. Behind the scenes is data collection, they plan to license the data. Short-term rolling out to events including SXSW 2012. Monetizing through advertising, brands can target people at events.

2:55: Lloyd W. Armbrust of OwnLocal -- app store for local. Building marketplace of cloud-based apps right now. They have distribution, working through small publications and chambers of commerce who are selling their stuff. Less than 1% churn rate, in 35 markets, growing about 20% a month. Y Combinator 2010 company.

2:53: Loku is big data plus Flipboard for local. They scrape the language from data to find out which very local area it applies to. Google gives you dumb results for ice cream shops in a neighborhood. Loku gives you in graphics or map to show you best ice cream stores. Funded by Dave McClure [ see our profile from 500 Startups ]. Raising Series A.

2:52: Announcing here: infochimps is acquiring Keepstream, Capital Factory 2010 class company.

2:50: infochimps -- known for social media APIs but moving into geolocation services. GroupCharger, summer '11 class, using infochimps to go from address to the demographics of alumni. Use zip codes, IP addresses to pull context you need to know.

2:47 Stuart Rench of ihiji -- platform so that retailers can detect and solve problems with TVs, blu-ray players, etc. You receive call from retailer that equipment is overheating so you can get it fixed it before it dies [overheating is common problem with electronic equipment ]. Signed channel partnersip with Forutne 1000 company and set to scale. Raising right now [does not give amount].

2:44 Michael of hoot.me -- switching Facebook to study mode not time-wasting. See what friends are studying and see if friends can help you. Create your own study session, use group video-conferencing. Coming soon: click button to get tutor (reviews) that fits your needs. Over 2K monthly active users, and school year just starting. Founders are students at UT-Austin. Did DreamIT Ventures this summer in NYC, back in Austin now.

2:41: Mason Arnold of Greenling -- makes it easy, fun and delicious to eat healthier with its online grocery delivery service. Their model works in Austin and San Antonio (5K customers) by working with local farmers and delivering to their doors. Popular items are meal kits and seasonal veggie box. Expanding to Houston and Dallas next year. 

2:39: Why this matters -- friends have time to get to you. Friends don't have to worry about missing you. Forecast is positioned. Launched 7-8 weeks ago, grown t 27K users and on track for 50K by the end of Sept. And they are still in private beta, no spend on marketing. Raising $250K, half committed. [ Download the app today though and you're in ]

2:38: Rene of Forecast is up. He goes to the taco shop near his office and checks in, hoping his friend will join him for lunch, and not once has a friend decided to join him. Check-ins don't connect you with friends in the real world. Create a forecast, tell friends where you're going to be later, not where you are now.

2:34: Nick of The Daily Dot is up. How do people who don't know what http is or care about Mark Zuckerberg find communities they care about, how do business owners find trends? Daily Dot is the "hometown" newspaper of the web, the paper of record for what happens online -- for example, the discussions around a YouTube video of a girl playing with a dead squirrel, we ask where are the parents? Daily Dot is reporting on that question. Between Aug. 23 - 31 The Daily Dot had more than 58K unique visitors and 132K pageviews.

2:31: Scott of CopperEgg -- super real-time cloud monitoring for development teams since there were no good tools out there. Updated every several seconds -- not minutes -- so you can see your bugs quickly. Over 200 customers signed up, over 50 countries.  

2:30: Apptive is bootstrapped and looking to raise $500K for marketing efforts and platform development.

2:28: Chris Belew of Apptive takes the stage. Apptive -- any small to medium business can make their own mobile app, requires no coding. This is Chris's second startup.

2:23: John Price, CEO of Vast.com, says he was upset to find out Evernote is coming to Austin because it will make hiring and retaining tech talent harder -- even though he loves the product and uses it daily. He says it's time to recruit the talent that comes to Austin for SXSW every year (22K badge-holders for the 2011 event). They will do that at SXSW 2012 by making it theirs with an event on the Friday of SXSW Interactive and not leaving town to avoid the crush.

2:16: Back from lunch and getting ready to hear from 17 Austin-based startups, all of them raising money Joshua Baer informed us before we started.

12:50: [ Lunch Break ] 

12:46: Audience Q: why did they acquire companies instead of building? Realization from time spent up front. Even though those companies didn't have great technology, they had scale that would have taken them too much time to build from scratch. They started with 15 platforms from their acquisitions, they are down to four now. Migrating them takes time. Next one on the platform will be VRBO, Brian wants all on the same platform by 2013. When Expedia wanted to get in this business, it didn't have many companies to acquire because HomeAway had already snapped them up.

12:35: Fun -- much higher chance of success if you're having fun. Board meetings are not scary, they are open and honest and they have fun with them. He enjoys giving back, HomeAway does a lot of work with Habitat for Humanity.  People on HomeAway are donating homes for free to those in central Texas who lost their homes in fires.

12:35: Fun -- much higher chance of success if you're having fun. Board meetings are not scary, they are open and honest and they have fun with them. He enjoys giving back, HomeAway does a lot of work with Habitat for Humanity. People on HomeAway are donating homes for free to those in central Texas who lost their homes in fires.

12:32: On making big decisions -- when he was younger he made them faster, now he makes decisions with more due diligence. They bought VRBO in 2006, paid a fortune for it but the work centered around what they could extract if they owned it. 

12:31: Never think you're done -- always make it better. Discipline -- what you do, how you spend money.

12:30: Leadership -- communicate the higher mission. If you don't have ability to motivate, you have to find people who can. Entrepreneurs often do this by showing they are willing to do anything. 

12:28: Be quiet -- don't talk to press etc until you're ready for competition. He calls Airbnb a PR machine. Problem is they had a good thing going but now people all over the world gunning for them. HomeAway barely said a word in the first 3-4 years. "If we had told how profitable the business was...we would have had three people there [when acquiring companies] competing with us."

12:27: Speed -- acquired five companies in one day and then went on a tear. When you have opportunity, you take it. Gets tougher to move fast when you're older, but Brian says HomeAway has reenergized him.

12:25: Fit -- investors are with you a long time, want people who will be supportive and respect you (and you them) through good and bad times. He didn't think who investors were mattered when he was younger. Sees the value of HomeAway board and investors -- they trusted him to make decisions. Brian is not focused on equity. Startups are either 1s or 0s, and most of them are 0s. Don't worry about equity, you'll get enough if you're successful and right investors will make sure you get your share.

12:22: Profit model -- a handful of companies get funded with no clear path for making money because they'll figure it out later. Mentions Twitter. Reality of life you're never going to achieve your objectives unless you have a business that's going to make money.

12:21: Passion -- keep people motivated with a higher purpose. HomeAway wants to make it as easy to find, book and stay at a vacation rental as a hotel. They are nowhere near that.

12:19: Be humble -- doesn't work well to tell investors you know everything and your product is the best. Okay to say you don't know everything and have certain risks and that you worry. He raised big money from TCV at worst of recession in October 2008 in part because he admitted his product was a 3 on a scale of 1 to 10. He was the first CEO who presented to them who had said that.

12:18: Nothing more important he could do as CEO than pick the best team possible. Nobody is good at everything, so find people who do certain things better than you. Brian likes strategy but not details; he needed people who complemented him. His COO had acquisition experience, which he knew they needed for HomeAway.

12:16: His experience was important for the success of HomeAway, which he started at age 44. He couldn't have done it when he was younger. "Surround yourself with as much experience as you can, good and bad."

12:14: Plan for the fact that when you intro product, people are going to react to it in ways you can't anticipate. He's never seen such a fast-follow environment in his life. Gives example of Groupon and its imitators. Now he mentions Airbnb as one of their competitors that also has followers. HomeAway raised money so that Expedia couldn't get certain domains, for example -- part of thinking ahead.

12:12: They thought the right way to do HomeAway was a percentage model, but a boring model -- marketplace -- was the best way. Therefore most important thing is scale. Others, not with tech background, had already built the marketplace, so they bought those companies. Now they are "juicing up" those companies with technology.

12:09: When started HomeAway, even before the business plan, he and co-founder called everyone they could find who knew something about the vacation rental market since they knew nothing -- customers, suppliers, etc. Not just look at who's in the market now but who had failed. Turns out Expedia had tried this in 1999 when it bought VacationSpot for $75M but went out of business a year later. Found Rich, ex-CEO of Expedia to find out what happened. They tried to turn it into a hotel business by getting rid of the subscription fee model that had worked. None of the customers wanted that model, however. Next step was finding those customers -- they prefer subscription model because renting their own places. Percentage-driven model keeps buyer and seller away. Owners wanted to talk to travelers, who also wanted to talk to owners since they don't always know what the properties have.

12:07: He learned very quickly you need to have an idea that can be executed. The team, the tool, the plan. As an angel investor, he sees great ideas, but he wants that with terrific execution. He didn't think about taking the risks with an earlier startup in San Francisco where he took $3M and quickly lost it because of a freak natural disaster. 

12:03: Started HomeAway after taking a few year off from Intelliquest Information Group. Family likes to stay in homes rather than hotels. As an entrepreneur, he's always trying to figure out the next thing -- what's the problem I'm having and is there a way to fix that? Every time they wanted to stay someplace they had to find and talk to property managers. Why wasn't there an Expedia for vacation rentals? Austin Ventures invested, which started the company.

12:02: Brian's three themes: the idea, the funding, making it work. 

12:00 Brian Sharples of HomeAway takes the stage for keynote. Says he recently took the company public, spent much of his time talking to investors but today he'll focus on lessons learned as an entrepreneur.

[ break ]

11:22: Joshua Baer calls all the team onto stage for the audience-applause vote [ clap and stomp and hoot for which ones you like most ]. He's got a decibel meter app to measure the volume for each company. StoryMix gets 90 decibels. HelpJuice gets 91 decibels. Speaker Mix gets 89. SwimTopia 91 and GroupCharger 89. Run-off between SwimTopia and HelpJuice -- SwimTopia wins!

11:21: Focused on higher ed market right now because it's so big but they also see how any kind of group or political campaign can use the platform.

11:20: Next target is Southeastern Conference schools -- all their alumni associations have signed up for demo. There are 1.5M alumni clubs, 55K alumni associations, each association spends $125K spend on marketing to alumni, mostly on direct mail on which they lost money. GroupCharger has intro pricing for the first 40 universities that sign up.

11:18: Makes rec to alumni association staff so they can increase donations. Those who stay involved with their school are 3x more likely to give back. GroupCharger helps them get connected in new city and introduced to alumni there. He ran this event's attendees through GourpCharger and is suggesting people who should meet each other based on what info GroupCharger found on them.

11:16: MIT does a great job keeping alumni connected. They built own software focused on helping alumni make connections. Their giving rate is 2-3x higher. University of Oklahoma wants the same tools as MIT but can't afford to build it -- so OU is GroupCharger client.

11:15: Kirtus of GroupCharger [ see our profile ] takes stage. Almost 100M people in U.S. are alumni -- gets audience to call out college name. Budgets slashed 10%, only 5% of alumni donate, schools need more donations, that's where GroupCharger helps.

11:13: Company name is TeamTopia, SwimTopia is first product.

11:11: Sees opp to save a lot of people a lot of time in something that's supposed to be fun for parents and kids. Want coaches to have more time with kids, less time on antiquated software.

11:10: In swimming: 2.6M athletes and 26K teams -- just subscription fees is $10M a year. Other revenue streams: registration fees, merchandise sales, plus ads and sponsorships. $250M in registration fees and dues, and parents spend $300M on merchandise and equipment. Underserved group that's a great place to start. Focused on swimming but not limited as the solution can work for other groups. Youth sports: 50M athletes and $5B in merchandise and registrations. Every team and league uses different services to handle administration and those services don't work well together.

11:07: SwimTopia handles waivers and medical releases, orders for merchandise, collects payments online. replaces spreadsheets. easier to manage volunteer assignments. No more filling in form or sending email, select their kids' events and volunteer time. Coaches can prepare. Over 2,700 registered users this season with 1,100 atheletes, 6 teams, $500 per season. Processed $120K in registration fees and merchandise orders. All have renewed for next season, recommending to friends. Even got a thank you note with a bonus check for $250.

11:06: Team Manager, developed in the 1990s on Microsoft Access, is what most teams use right now. They literally have to pass laptop back and forth, plus parents wouldn't always communicate what their kids were participating in, took up to 15 hours a week. Nobody wants crying kids at the swim meet (see above).

11:04: Mason of SwimTopia [ see our profile ] takes stage -- calls SwimTopia the friendliest swim-team solution. Wife volunteered him to manage the tech side of his kids' swim team. He didn't think it would be hard -- he's been coding since middle school -- but it was. Swim teams are huge, that's the first lesson he learned -- 100 swimmers per team or more. Running a swim meet takes an army of volunteers.

11:02: He worked at a speaking agency. Those who get gigs are the ones who shout the loudest. But they know there are great speakers meeting planners won't find on Google. Excited to improve the quality of events and give those lesser-known people a stage.

11:00: Woman wants author Jim Collins to speak at her commencement event. Professional agencies gave different prices, she found SpeakerMix and used the service to get in touch with his assistant. Jim not available and too expensive, but she found someone else who was in her backyard and she didn't know existed and was much cheaper (with great reviews on SpeakerMix). Got contract signed in four days. 6,500 speakers, $1M booked.

10:59: 70% of events are private, 30% are conferences in the $10B event market. SpeakerMix making connections between organizations looking for speakers and those qualified to speak at their event. 

10:57: Jack of SpeakerMix [ see our profile ] takes the stage. Says former President Bill Clinton makes $10M a year in speaking fees. Even Bristol Palin makes $20K a speech. But how about others? Talks about passionate public school teacher in NYC who now speaks to teaching groups. He made $450K in speaking fees just talking to teaching groups in Texas this summer.

10:55: Tiered pricing plan is freemium. They want 2K SMBs and 10 Fortune 1000 companies by next year and looking to raise $150K.

10:54: Competitors offer something plus knowledge base, like ticketing system, but they are only company focused just on knowledge. HelpJuice will write articles, send to your employees. Once they approve them, HelpJuice updates the FAQ. Past 30 days, 100 companies signed up, 30 live customers, 5 paying customers, already done 10K searches. Already saved 1K emails, 80% chance your customer will find the answer they want via HelpJuice.

10:52: Simple contact form -- next time suport staff gets email, they just have to cc juicers@helpjuice.com. Their people read each email and determine whether you need to update your FAX or add new article. This is the only software that updates FAQs.

10:51: They will answer 50% of support questions without you having to do anything. As customers start typing, they get more accurate results. HelpJuice does the grunt work of answering questions so you don't have to.

10:49: "Julie" looking for information on what to do on Pandora -- Emil shows a huge list of questions on their site, very overwhelming. She's in a hurry and wants to get an answer. She finds the search but doesn't get the answer she's looking for so she emails support. Pandora support is getting emails like that everyday and is losing money because of it. Worse, the FAQ page can be out of date. His quick survey of audience -- people don't keep them up to date.

10:48: Customers ask the same questions over and over again, and answering those emails cost a lot of money. Cheaper to answer via FAQ. Keep your FAQ page up to date and monitor what's coming in with HelpJuice.

10:47: Emil of HelpJuice [ see our profile ] takes the stage after an, um, interesting introduction [he's dressed in all white, likes to talk to ladies.]

10:43: Increasing weekly orders -- over 100 paid orders to date, average of $350 an order with $200 profit. Investing those profits in key hires. Projecting $500K in revenue and looking to raise $500K.

10:41: iPhone app that's coming soon -- take video, upload and share on Facebook. StoryMix receiving referrals right now because Hollis shared her StoryMix wedding video on her Facebook page. Going to major wedding vendor events and has gotten lots of press. 

10:40: Tells story of Percy and Hollis, who wanted video. Their friends and family captured the moments and StoryMix made the edited product. Hollis's reaction--she had tears in her eyes when she saw it.

10:39: First market they picked: wedding videos. 1.75M weddings without video but only 750K get professional videos. They're expensive and boring. But brides recommend getting one because they miss moments of their own event.

10:38: StoryMix: Crowd-source videos being taken without trying to email them. Storyboard platform allows people to choose scenes by dragging and dropping. But not a slide show. Product starts at $99 because of their AutoEdit system that builds 85% of the project automatically.

10:36: Saw the same problem a decade ago with photos -- we now have photobooks. In 2010, over 78M photobooks were sold. Video solution is harder because of transitions and audio quality. iMovie is still too complicated and takes too much time -- and it still looks amateur. Few people in the room who shot video last year have edited it.

10:35: StoryMix [ see our profile here ] Media's Ariane Fisher takes the stage. Create story from your videos. Every year on their anniversary she and her husband would look at their wedding photos and wish they had video f her dancing on the table at the end of the night. Few people share edited videos of their life events. But what about the important memories that get lost and buried?

10:29: Part of revving up [ in Austin ] is having executives in place who have experience scaling companies. Silicon Valley has plenty of them. Bob doesn't think there's a shortage of money in Austin because VCs know how to fly places. Shortage is in good companies.

10:27: UT now has class for students starting companies called "one semester startup" -- not for those who want to start one some day but now. Secret is mentors to help the teams, 100 undergrads have signed up for this semester.

10:26: City of Austin has better entrepreneurial culture than the University of Texas, so cozy up to them. And get professors more interested in entrepreneurship. Profs important in Silicon Valley and Boston, need to get them more involved -- not enough of them have the idea they should be involved in starting companies.

10:22: What Austin needs as an entrepreneurial culture (following inventory). Bob met Michael Dell and John Mackey [ Whole Foods ], they started billion-dollar companies in Austin and they're still here, running them. He realized no program at UT-Austin to stimulate undergraduates' interest in entrepreneurship. No silos: one instructor each from the science, engineering and business schools.

10:19: Fifth, you have to have a plan even if it changes every day. In 1982 they made a 25-year plan for ethernet cards, sketched price dropping from $5K to $5. Evaluate your plan using a process called MOST -- mission, objective, strategy, tactics.

10:14: Second point: Writing. You need to write all the time. Third, speaking: he has given many speeches but is not as good as Steve Jobs [ imitates the Jobs walk -- on his toes because of his energy ]. Fourth: selling. Sales people are a different species but they are "carbon-based just like you are and you need them for your company." You need to know about selling, too, to attract resources and sell a product within your own company.

10:12: On succeeding in entrepreneurship -- he hears that people pull all nighters and eat ramen noodles, or are "on the verge of dying." Jobs was not like that in early days. You need to stay healthy, Bob says. You should sleep 8 hours a day, figure out when you need to be up and go to bed 8 hours before that.

10:07: Steve Jobs called him, said he worked for a company called Apple Computer. He was recruiting. He heard Bob knew networking, he wanted to network his computers and wanted Bob to come to Cupertino and meet him. Bob said he would love to network his company but wouldn't join him because he had his own company [ that became 3com ]. Says Steve immediately got it and helped him network.

10:06: Resigned from Xerox in the late 1970s, started first company in 1979 after hearing fellow MIT alum talk about raising money for a startup.

10:03: Key tool is networking -- he's a networking guy, everything looks like networking to him. People who can network in that ecology do well by developing relationships with developers, investors, customers, etc.

10:01: His job is to tend to the care and feeding of tech entrepreneur ecology. Six major species that evolved over last 65 years: research professors, graduating students, scaling entreprenuers, VCs and angels, strategic partners and early adopters. Scaling entrepreneurs needed most -- plenty of ideas, he said as a VC they needed more people who could be CEOs.

9:57: Luck and virtue are the two ends of "why entrepreneurs are successful" spectrum. Need to be in the middle and ready to handle uncertainty.

9:55: Entrepreneurial, technological innovation at scale -- "we're not starting restaurants here, we're starting Apple Computer." Then Bob says he's dedicating this talk to Steve Jobs, calls him a great entrepreneur who helped him.

9:54:  Things that improve lives start here, Bob says. He believes in spreading freedom and prosperity. He has seen that free enterprise works.

9:52: Bob's various careers: Scientist, entrepreneur, pundit, venture capitalist, and now professor. Came here because his wife does triathalons and wanted a more hospitable climate for training than Boston [ Austin was on her list. ]

9:49: Bob Metcalfe's tweetable joke -- chicken lights up a cigarette and says to the egg, "Now we know the answer to that question."

9:48: Joshua introduces Bob Metcalfe, inventor of ethernet and founder of 3com, now a professor at the University of Texas

9:46: Joshua says investors here from outside Austin -- he mentions San Francisco and the Valley -- thanks them for being here.

9:42: Two classes of Capital Factory before this one -- he mentions three alums that are doing well: Sparefoot ('09) solutions for self-storage industry; Famigo ('09), family-friendly Android app store; and RecycleMatch ('10), enterprise solution for monetizing waste.