Archive for April, 2011

Digitalsmiths Backed By Industry Leaders in $12.5 Million Series C Funding Round

Wednesday, April 27th, 2011

Series C Round Infusion to Fuel Sales Expansion of Video Search and Discovery for Content Owners and Consumers Worldwide

FOR IMMEDIATE RELEASE

Durham, NC – April 27, 2011

 Digitalsmiths announced today that the company closed an oversubscribed $12.5 million expansion financing. The infusion of capital accelerates domestic and international sales of Digitalsmiths’ video search and discovery products designed to provide a sorely needed upgrade to the video industry’s rudimentary content search, discovery and recommendation capabilities. Technicolor led the round; all existing investors including .406 Ventures, Aurora Funds, Chrysalis Ventures, Capitol Broadcasting and Cisco (CSCO) participated in the financing.

Digitalsmiths is solving – with enabling technology and innovative products – the fundamental problem content owners still face today: How can I, my distributors and consumers quickly and easily search and discover relevant video in a consumer-friendly way? Without Digitalsmiths’ ever-advancing video search and discovery products, the industry would be frozen in the dark ages. Video content owners, be they movie and TV studios, live event producers or digital, cable and satellite operators can now immediately and dramatically improve their search, recommendation and overall discovery capabilities.

“This new funding validates our market progress.  Our mission is to redefine video consumption by reaching the broadest array of devices with the most powerful video discovery platform available,” said Digitalsmiths CEO and Co-Founder Ben Weinberger. “We are fanatical about helping video providers make more money by offering next generation video search and personalized discovery experiences.”

The most recent consumer example of Digitalsmiths unique search and discovery capabilities is that for the first time, in partnership with Turner Sports, NCAA March Madness fans were able to search video highlights in real-time during the tournament.  The unique offering enabled fans to search for and watch top plays, dunks, three-pointers and virtually any other search term conceivable.  Additionally, all video was targeted with ads using Digitalsmiths’ real-time data thus opening new revenue streams.

“The market opportunity for companies such as Digitalsmiths is huge and growing – half a billion people globally will view online video via connected devices such as TVs, games consoles or set-top boxes by 2016,” said Colin Dixon, senior analyst at The Diffusion Group. “The underlying key to monetizing this content is not just search, but actually the discovery of content. Deep metadata enables discovery and unlocks new, additive monetization models as evidenced in the capabilities of the NCAA March Madness video portal. This provides benefits to advertisers and content owners alike.”

Digitalsmiths is fanatical about video discovery, and has long worked to equip members of the video ecosystem with next-generation products to evolve search and recommendations. The company’s products help content owners and operators open the door to increased consumer viewing and provide the fuel for numerous monetization options.

According to Maria Cirino, Co-Founder and Managing Director of .406 Ventures, “Digitalsmiths continues to extend its market leadership from its acquisition of competitor Gotuit earlier this year to significant expansion of its rich patent portfolio and expanding product roster.  The Digitalsmiths team has skillfully positioned themselves squarely at the center of surging demand for our unparalleled advanced video search and discovery capabilities.”

About Digitalsmiths

Digitalsmiths drives video providers’ ability to access video archives and offer personalized experiences through comprehensive, accurate and actionable video metadata. The company’s video discovery solutions are independent of content format or destination device, enabling personalized video experiences that are proven to drive more engagement and greater monetization across mobile, broadband, tablet and TV offerings. Digitalsmiths’ customers include today’s leading Hollywood studios, broadcasters, distributors and publishers including Warner Bros., Turner, The CW Network, Paramount, Telepictures and more

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iSqFt Named Cincinnati’s Healthiest Employer

Monday, April 18th, 2011

April 18, 2011 – iSqFt, the construction industry’s leading preconstruction software provider, announced today that it has been named Cincinnati’s Healthiest Employer by the Business Courier.

“Your health is a gift,” iSqFt President and CEO Dave Conway often says to his company’s employees. “There are a lot of things that we have no control over, but making some simple lifestyle changes can have a huge impact on your health,” he explains. “That’s why I’m so thrilled to earn this award for helping our people improve their lives. This isn’t about work or productivity, it’s about helping people live better lives, and iSqFt is committed to our team members’ health by promoting a ‘wellness culture.’”

Sandra Kuzma, Vice President of Human Resources runs the department responsible for the programs that have gotten iSqFt’s employees taking the first steps to making lifestyle changes through education, resources, and support. “People want to be healthier, but sometimes they just need some support. I’m happy to provide that.”

The competition for this title was fierce, but in the end no other company offered their employees the breadth and depth of helpful programs iSqFt did. “Our Biggest Loser program was a huge hit,” says Kuzma, “and offered an incentive to lose. We literally put our money where our mouth was. We also offer a health-focused newsletter, and we worked with our health care provider to offer health assessments, access to nutritionists, and walking challenges. Oh, and when we have a cookout we provided healthy options and even healthy grilling recipes.”

In fact, a quick tour of the iSqFt facility reveals ready access to helpful tips about eating habits and exercise. “We’re really going for an immersive experience that will help our team members internalize the importance of good health and we want to provide a support network that will help them adopt a healthy lifestyle. We’re focusing on the long-term benefits,” says Kuzma.

When asked why she thinks they’ve succeeded where others have failed, Kuzma says that iSqFt’s employees are different. “There’s an atmosphere of competitiveness here, and our people really rise to a challenge, especially when it’s about something this important.”

But at the end of the day, Kuzma says, it’s up to the individual. “This is something people have to do for themselves. We can’t and don’t want to force people into eating better and exercising. Our goal has been to simply provide the information and opportunities that will help them achieve their goals, whatever they may be.”

It is this attitude and helpful environment that may also have played a role in iSqFt being nominated as one of Cincinnati’s “Best Places to Work” the last three years running. When asked about a possible connection, Kuzma simply says, “Yeah, I think so.”

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Detroit Obsession Obscures Growth of Michigan’s Innovation Economy

Thursday, April 14th, 2011

The following guest post comes from Koleman Karleski, a managing director at Chrysalis Ventures, a venture capital firm investing in early stage healthcare and technology companies in the Midwest and South.

By Koleman Karleski

Not surprisingly, the 2010 census data concerning Detroit’s shrinking population set off what has become a familiar call-response routine between doomsayers lamenting lost glory and civic boosters touting a renaissance.

For the record, I agree with the boosters, but we shouldn’t let this dialogue drown out the promising buzz building between other economic centers across the state.

While the Motor City has struggled to shift gears over the past decade, cities like Ann Arbor, Grand Rapids and Kalamazoo have quietly developed local innovation ecosystems that resemble those of early Silicon Valley and Boston’s Route 128 Corridor.

More importantly, the business leaders in these various hubs are beginning to work together to nurture an entrepreneurial environment that spans the state. This will ensure that Michigan’s fortunes won’t be tied to one single city, region or industry.

Venture capital investment numbers in Michigan bear this out. According to the NVCA MoneyTree Report (based on data by Thomson Reuters), venture capitalists invested nearly $155 million in 31 Michigan companies in 2010. Only about half of that money went to Detroit companies. Between 2004 and 2009, the state’s biotechnology sector attracted $439.6 million in venture funding.

In addition, a number of innovative young companies have elevated Michigan’s profile among national venture capital investors and corporations alike. Former start-ups HealthMedia, HandyLab and Accuri have already been snapped up by larger companies – a sign of success in the high-tech world.

So how do local innovation hubs develop? Most often, they coalesce around a top-notch research institution. In Ann Arbor, the University of Michigan fills this role. U of M is currently among the top 10 universities for spinning new technologies into start-ups, according to the university’s technology transfer office. In fact, Ann Arbor has one of the highest rates of patent density – a rough measure of how much innovation is taking place in a given area – in the nation.

In Grand Rapids, a small but active community of angel investors has come together around the Van Andel Institute, which focuses its research on major diseases such as cancer, osteoporosis and Parkinson’s disease. In Kalamazoo, the Southwest Michigan First Life Sciences Fund is playing an active role in attracting life sciences businesses to the region and helping them grow. As a result, my firm is seeing a robust early stage investing scene developing there, too.

Innovation ecosystems also draw nourishment from well-directed government support. Led by the governor, Michigan has taken aggressive steps to help more of the state’s innovators and entrepreneurs gain access to the capital they need to create high-growth companies. The first Venture Michigan Fund has already committed $95 million for investment in Michigan start-ups, while fund-raising for VMF II has netted $120 million. Add in $120 million from the 21st Century Fund and $200 million from the InvestMichigan! Growth Capital Partners Fund, and you have a fairly impressive investment pool for entrepreneurs and investors to tap.

More importantly, these funds represent unique public-private partnerships that optimize the strengths of each sector and put money in the hands of those who can use it best.

Government support also takes the form of successful business incubator organizations. Guided and funded by entities like the Michigan Economic Development Corporation (MEDC), these organizations help entrepreneurs turn their ideas into growing businesses by providing consulting, business services and office space at affordable rates.

One of the poster children for this approach is the Business Accelerator Network of Southeast Michigan.  A collaboration between Ann Arbor SPARK, Automation Alley, Tech Town and OU INC, this network has invested approximately $18 million in area start-ups and has helped generate more than 1,000 jobs in the state, according to a recent study led by the Kauffman Foundation.

Cooperation across regions and economic sectors once seemed like a rarity in Michigan. However, hardship has a way of engendering renewed focus and new collaborations. Fortunately, the fruits of both have started to frame the discussion about Detroit’s future in new terms.

We’re all still rooting for a rebound, of course. But whether the Motor City can regain its mojo as Michigan’s primary economic engine seems less important than whether it can join these other venture hubs in creating a new state of innovation in Michigan.

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MyHealthDIRECT Receives $4 Million In Series B Investment Funding

Wednesday, April 6th, 2011

Fast-Growing Health Services Innovator will Use Funds from Arboretum Ventures

and Chrysalis Ventures to Facilitate Its Expansion into New Markets Across U.S.


Brookfield, WI – (April 6, 2011) – MyHealthDIRECT today announced that it has closed its Series B investment round with $4 million in funding from two of America’s leading healthcare venture capital firms, Arboretum Ventures and Chrysalis Ventures.  Chrysalis participated in the company’s previous round.  Reflecting the growing demand of MyHealthDIRECT among leading healthcare organizations and agencies, the investments will be used to fund the company’s continued national growth through expansion of its sales, client services and technical resources.

Founded in 2005, MyHealthDIRECT is a web-based access management system that broadly and seamlessly connects patients to healthcare appointments throughout a community or network.   Using a simple Web browser, healthcare organizations can use MyHealthDIRECT to scan and query over 95% of the most popular, commercially-available practice management systems to find and book open and available healthcare appointments in the community.

“We’re excited to continue to achieve important milestones at MyHealthDIRECT.” said Jay Mason, CEO and founder of MyHealthDIRECT.  “These investments come at a time of major growth for our company where we expect to double our headcount and quadruple our sales in 2011.  We look forward to working closely with both Arboretum and Chrysalis to take MyHealthDIRECT to its next level of achievement.”

“Arboretum is very pleased to lead the Series B round of funding for MyHealthDIRECT.  The company’s products help more efficiently connect healthcare providers and patients so the right care can be provided to the right patient at the right place and time,” stated Tim Petersen, Managing Director, Arboretum Ventures.  “MyHealthDIRECT is rapidly establishing itself as the ‘Open Table’ of healthcare, and we are very pleased to provide it with additional growth capital.”

“As demonstrated by our additional investment, we are excited about the important impact that MyHealthDIRECT is having in healthcare,” stated David Jones, Jr., Chairman and Managing Director, Chrysalis Ventures.  “The company has a strong management team, clear vision, and motivated people.  We believe MyHealthDIRECT is making a real difference in improving access to healthcare services and raising the overall quality of medical care.” 

For more information, visit www.myhealthdirect.com.

About Aboretum Ventures

Abortetum Ventures is an early-stage venture capital firm specializing in the healthcare sector.  Arboretum invests through the United States, but with a special interest in the Midwest.  Aboretum aims to transform young companies into mature and thriving businesses that are improving patient outcomes and lowering the cost of care, thereby generating superior returns for entrepreneurs and our investors. Founded in 2002 and headquartered in Ann Arbor, Michigan, Arboretum currently manages $170 million in capital.  Arboretum has made 18 company investments over the past seven years, including investments in HealthMedia (acquired in 2008 by Johnson & Johnson) and HandyLab (acquired in 2009 by Becton Dickinson).

About Chrysalis Ventures

Chrysalis Ventures manages one of Mid-America’s largest funds for early-stage and growth investments with approximately $400 million under management.  Since 1993, the firm has invested in over 65 companies, primarily in the healthcare and technology sectors.  With headquarters in Louisville, Kentucky, Chrysalis has offices in Cleveland, Pittsburgh, Ann Arbor and Houston.  The firm seeks to partner with entrepreneurs to build enduring businesses in industries undergoing significant transformation.  For more information, please visit www.chrysalisventures.com.

About MyHealthDIRECT

MyHealthDIRECT is a national health services solutions company that connects hospitals, care management organizations, public agencies and community collaboratives for the purpose of scheduling and booking timely and appropriate healthcare appointments on behalf of individuals.  Founded in 2005, MyHealthDIRECT offers a web-based solution that organizes and books open and available healthcare appointments in the community into a searchable and schedulable inventory of healthcare services.  The MyHealthDIRECT solution promotes continuity of care, reduces unnecessary cost and utilization and ensures that patients are matched with appointments that best fit their needs and preferences.  For more information on MyHealthDIRECT please visit www.myhealthdirect.com.

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