Startup Journey Part II: Stay Focused and be prepared to pivot
Two years and forty-six weeks ago I wrote my Startup Journey Part I: From R&D to Commercial Release blog post. It gave an overview of lessons I had learned from starting a technology company and taking it through its initial research and development phase. I can now write about the next phase, on the challenges of taking a technology product into the marketplace. My advice… stay focused, and be prepared to pivot.
To better explain, let me walk you through where we started and where we have ended up. Linxter’s cloud messaging technology took traditional message-oriented middleware (MOM), a complex and expensive platform for secure, reliable, transactional data exchange and re-architected it into an easy-to-use, affordable cloud service. We released our public beta in May 2008 and our commercial 1.0 release in April 2009.
Our cloud messaging tool, designed for software engineers to use when building new products and services, had attracted the attention of Microsoft and in March 2009, the company was invited to join BizSpark One, a “program that identifies a small number of high-potential companies in the Microsoft BizSpark program comprised of more than 40,000 startups from over 100 countries around the world.” Microsoft’s interest in our tool culminated in October 2010 at a private meeting with then President of the Server and Tools division at Microsoft, Bob Muglia.
Following the release of our cloud messaging offering, I had grown to realize that the commercial market for cloud-based reliable, transactional data exchange was smaller than expected. Traditional on-premise MOM is entrenched in financial institutions and certain government agencies, where transactional data exchange is very important. However, outside those segments, very few people even knew what a two-phase commit process was (it deals with reliable and verifiable data transfer) and did not see a need for it in their projects.
A strategic shift was needed, and I began to explore applied uses of our cloud messaging technology. This took me into the in-app purchasing marketspace, also known as major pivot 1 for the company. In the summer of 2011 we re-released Cloud Middleware, which provided private, secure, cloud integration services for in-app purchasing and mobile payments using our cloud messaging technology. This was actually a combination of two unconnected services we had initially built mid-2010 that matured into a single offering. This attracted the attention of PayPal and resulted in several meetings.
However, we still faced several challenges. Our cloud middleware offering could only be consumed by software engineers using our open standards based, but still proprietary, cloud messaging solution. In addition, in-app purchasing on native mobile apps was restricted in the Android and iPhone marketplaces. This led to two initiatives. The first was to rebuild Cloud Middleware to also be consumable via REST and SOAP web service calls for use by the mobile web apps, which is just about done (stilling finishing the documentation). The second was allAware, a free mobile app for nonprofit organizations, also known as major pivot 2 for the company.
Regarding allAware, I need to step back a little… In December 2010, I started toying with four ideas on how to make an even more applied use of our technologies; reliable data exchange and financial transactions. The ideas had all come about from looking at how to solve real world problems I was observing. One idea in particular kept banging me on the head and by April 2011 I decided it needed special focus.
At the temple my wife and I belong to, over the years, I kept on hearing about the challenges of keeping everyone aware of all events, activities and meetings that went on. It occurred to me that someone should create a mobile app for that. It also occurred to me that all faith-based organizations probably faced similar kinds of communication problems.
In addition to trying to help solve communication challenges, I was acutely aware of the financial pressures that many organizations have been facing since October 2008. It made a lot of sense to also allow members make donations through this app… at any time, when a member felt inspired; they could make a donation right from their mobile phone.
By the summer of 2011, allAware had become the primary focus on the company. It came down to a solution that got members (of nonprofit organizations) more involved by making it easier for them to be involved. allAware had become a private social network for non-profit organizations that helps improve interaction and information flow with members, while also providing an easy and effective way for members to make donations, in a more meaningful manner.
allAware was a major shift for the company. Previously we were providing tools for software engineers to use in solving specific problems they faced. We had now built a solution on top of everything we had previously done, and were providing a tool that helped nonprofits and regular people. The allAware chapter of Linxter, Inc. has just begun; however, even during our beta testing, we knew we had found our sweet spot. In addition, when in the process of preparing to launch a new product, it is helpful if you get the opportunity to present it to an executive, at one of the most successful technology companies in history, President of Microsoft North American, Robert Youngjohns.
After months of beta testing with nonprofit organizations, this last Friday I started to publicly talk about allAware. It is with much excitement and personal satisfaction that we move into this new phase, having found our sweet spot. We still have some rough edges on the product to smooth out, and I know there are more challenges ahead, but as start-ups go, when you find your niche, you really know it, at several levels, and to get there, you need to stay focused, and be open and prepared to change direction and pivot when needed.
