My Tangent

I'm Antonio. A young, nonconformist b-school grad and 2x entrepreneur ('06 -'08 eCommerce x '10 -'12 after-school Code Academy for iPhone, iPad & Google Android). My interests are expansive. Here's an aggregation of articles and posts from across the web that inspire my current thinking. Low-brow, to high-brow interesting. Credo: Ancora Imparo - "Still I am learning".

Trends and Terms in Seed Investments

Fenwick & West recently published its Seed Financing Survey in acknowledgment of the growing importance of seed financing to entrepreneurs and the VC environment. 


Summary of results based on studying 56 transactions in 2011:

  • The use of convertible notes increased by 10 percentage points (to 41% of deals), and likewise the use of preferred stock decreased by 10 percentage points (to 59% of deals).
  • The median size of convertible note deals increased from $662,500 to $1 million, while the median size of preferred stock deals remained basically flat around $1M.
  • The pre-money valuation in preferred stock financings increased from $3.4 million to $4.0 million for internet/digital media deals, and from $2.7 million to $3.5 million for software deals.
  • The median valuation cap on convertible notes increased from $4.0 million to $7.5 million.  Notes are capped 82% of the time.
  • If notes are repaid prior to next financing, they are typically repaid at 2.0x the principal amount, on average ($1 million note gets $2 million if company sold and note repaid).
  • Notes paid an interest rate of 5.5%, on average, and had a term of 18 months, on average.  Notes were typically unsecured (96% of time).
  • The percentage of convertible note deals that convert at a discount to the next equity valuation increased from 67% to 83%, with that discount being 20% from the next round, on average.
  • The lead investor was a seed fund (46% of the time), professional angel (28% of the time) or VC fund (27% of the time)
  • Investors were given a board seat 70% of the time in preferred stock deals, and 4% of the time in convertible note deals.

Overview of Current Seed Financing Environment

1)   The seed financing environment for internet/digital media and software companies is expanding and becoming increasingly varied.

2)  The amount of seed investing is increasing.

3)  The diversity of seed funding sources is also increasing (e.g., friends/family, individual angels, angel networks, incubators/accelerators, seed funds, VC’s investing earlier, Crowdfunding).

4)  The proliferation of seed capital and diversity of sources seems to be leaning in favor of entrepreneurs, as preferred stock valuations, convertible note usage and convertible note cap amounts are increasing.

A quick launch video of the first private space flight to the International Space Station.  Perhaps a major leap for private industry towards launching great things into space.   

Tangible Programming In K-12: Educating Students To Compete In The 21st Century

Image representing iPhone as depicted in Crunc...
Image via CrunchBase

Today’s world, both corporate and domestic, is largely controlled, managed, and run digitally. Students do homework, write papers, and attend classes online or using digital technology. We communicate via text and email; we manage our calendars, finances, and daily lives at a computer (or in my case, my iPhone), not on paper. Even our social lives and our recreational time are touched, if not managed, by digital technology. This total shift in medium has created an ongoing need for tangible programmers, individuals who understand how to write the code that makes all of this possible.

Until recently, programming and coding were considered important courses for those individuals majoring in computer science, and certainly, these specialists are in short supply in the job market today. Students who have learned coding in the earlier grades are able to integrate these skills into their daily activities, and are well suited for a computer science major when they reach college. All research on promising careers in today’s marketplace point to information technology fields, with coding and programming resting at the top of these lists.

However, a curriculum in grades Kindergarten through 12th grade should require at least basic courses in programming for EVERYONE, not just those interested in pursuing careers in information technology. Teaching students to utilize software and web based programs, without teaching them how to program or code them is much like teaching them to read, but never teaching them to write. In all areas, from math to language arts to music, the ability to code and program will eventually be tantamount to the ability to communicate at all.

There are many different professional fields that will benefit, moving forward, from a knowledge and skill level in tangible programming. Teachers who can write their own code can create custom tools for their students; architects and engineers will be better able to compete in their fields if they are not limited by the software they have access to rather than being able to write their own. Musicians will find that mixing and recording original pieces will require an ability to write their own programs, and the fields of visual arts and graphic design are already heavily dependent on these skills.

The future of toys has been heavily affected by the digital age, and the growing demand for professionals who are able to design and write code for video games, social networking sites, and streaming software will have promising careers stretched out before them. As children are affected by the growing popularity of digital gaming and entertainment systems, so will their rising interest in creating and manipulating this technology.

Educators know that young children have very open minds and are able to pick up new ideas and skills, and if we begin educating them early, instead of waiting until high school or college, the basics of coding will be engrained in their knowledge base. In fact, these students will be able to use these skills as they complete their school projects, class work, and homework, throughout their elementary and secondary education. Whether they are interested in a career in computer science or another topic, by the time they move on to college, they will have the digital communication skills necessary to succeed in any subject area.

Another important reason to expose students early to coding and tangible programming skills is that there is a common image, created by entertainment media primarily, that computer science majors and career programmers are “nerds” and “geeks.” They are depicted as shy people with poor personal skills. This image has been steering students away from the subject for years, but if students are exposed to the skills and knowledge early, they will see that creating their own programs is interesting, and even fun. This past year, I’ve been privileged to partner and build a social venture that has taught students with and without previous programming experience to learn programming, and launch student-generated mobile app products to market. We’ve had students receive as much praise among their peers that’s similar to most student athletes’, and it’s been my most professional satisfying experience. Our team knows that each student will have special skills unique to him/her, and we will try to fine-tune those skill-sets while expanding their skills to overall programming. Some students will be great at UI. Some will understand logic quickly. At the end of the sessions, they will all learn how to create simple applications. By building interest early, the schools can turn out a greater number of graduates with an interest and aptitude in this ever-growing field.

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280vc:

It’s pretty crazy to think about Lowe’s deploying roughly 42,000 iPhones into their stores for better customer service - roughly 25 iPhones per store.  This is an old link, but a powerful validation of the modern smartphone platform.
A couple of observations:
This should scare the hell out of Symbol (Motorola), which built a huge business around proprietary scanning devices.
They picked iOS rather than Android (let alone RIM or MSFT).
With a modern mobile platform, it’s easy to distribute software upgrades overnight to their entire chain of 1,700 stores and 42,000 devices - something not so easy with legacy Point-of-Sale (POS) systems.

I found this interesting (albeit late), I did a cursory search on Symbol, and just found out that Apple Stores ran on them ( http://bit.ly/o955MR ).
View high resolution

280vc:

It’s pretty crazy to think about Lowe’s deploying roughly 42,000 iPhones into their stores for better customer service - roughly 25 iPhones per store.  This is an old link, but a powerful validation of the modern smartphone platform.

A couple of observations:

  1. This should scare the hell out of Symbol (Motorola), which built a huge business around proprietary scanning devices.
  2. They picked iOS rather than Android (let alone RIM or MSFT).
  3. With a modern mobile platform, it’s easy to distribute software upgrades overnight to their entire chain of 1,700 stores and 42,000 devices - something not so easy with legacy Point-of-Sale (POS) systems.

I found this interesting (albeit late), I did a cursory search on Symbol, and just found out that Apple Stores ran on them ( http://bit.ly/o955MR ).

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Welcome to sunny San Diego, Melvin Ingram
Swag.

The Commissioner was Game.

Welcome to sunny San Diego, Melvin Ingram

Swag.

The Commissioner was Game.

(Source: iam3rd, via gowherehiphop)

Chicago-based startup StyleSeek is coming...(sign up here)

I just read an interesting story about StyleSeek’s progress to date, written by a friend of theirs here in Chicago.  They’ve been in stealth mode for much of the last year, and is set to launch in a few weeks.  They’re building a men’s fashion discovery and e-commerce site (via their AngelList page: Tumblr meets Pandora for eCommerce – focused on men’s apparel, footwear and accessories). Keep an eye on them.

“I like Diptyque candles, and Maharishi sandals, and Dita sunglasses, Purple Murder Service samples…I like False t-shirts, Dover Street is off the handle” - Gold Watch.

An app that lets you buy some good karma for your baseball team and an interactive that shows you what a player is worth based on the price of hot dogs at his home stadium were among the creations at Boston Baseball Hack Day held over the weekend at the Globe’s headquarters. “Rally Cry,” created by Kenji Ross, John Hamilton, Mike Paulo and Doug Pfeffer, was designed to capitalize on those times when you truly believe you can affect the outcome of a game. You know what we mean — like when you believe the Sox will win if you watch the game while wearing your favorite Snuggie.

Clever concepts created at Boston Baseball Hack Day - Boston.com

Okay first: BASEBALL HACK DAY! Sports nerds!

Second: Barbarians present and former made “Rally cry.” I love it love it love it. 

(via rickwebb)

Good stuff.

(via rickwebb)