All of the positives aside, it appears to me that the facts are that several talented Atlanta/Southeast regional entrepreneurs worked full-time for over a year on a disruptive technology that was developing good partnerships and good press and got bought out for small change.  Lance Weatherby put it well, “There are three types of successful exits for startup founders.  You get a new car, you get a new house, or you get a new life.“  It looks like the Twitpay deal sits in “new car” territory, with “new job” thrown in since I imagine they’ll get to draw a salary as they work with investors including Acculynk CEO Ashish Bahl to refocus the technology.  I’m not privy to any details, but I maintain some hope that the Twitpay team has enough of a stake in the new entity to push up into “new house” or “new life” territory.

There are a number of issues with the whole deal that I think put a bit of a damper on Atlanta’s startup ecosystem:

• What Cluster? – There is indeed a solid bench of payment processing technology companies in Atlanta, but it’s hard to see much benefits from this in Twitpay’s story.  With the acquirers in the payments space, the best I can say is that participating in this cluster may have meant the difference between “new car” and “no car”.  It’s small wonder entrepreneurs often ignore our local clusters.  Many local entrepreneurs who are fully dedicated to their startup just end up in “new 2nd mortgage” territory.
• The Series A acquisition – Atlanta is not “The Valley”, and this deal rubs that fact in.  A “success story” version of this situation would have seen the $1 million invested in Twitpay and used to give the company strategic investors and a couple more iterations to “get it right”.  Buying startups after their initial model is “busted” and funding their additional experiments after the fact is not an appealing outcome for entrepreneurs.
• The compensation sucks – If our version of a success story is that a founding team of entrepreneurs goes without salary for a year and a “good” outcome is that they get to split $100k 3 ways, and THEN get to draw a real salary as an employee, we have a real problem.  New Georgia Tech CS grads can make twice that much, fresh out of school, guaranteed.  This sends a message to talented potential technical co-founders to just go get a J.O.B.
• Few Lasting Benefits – these guys have “new car” money.  They’re not going to be the next partners in Shotput Ventures, they’re not going to be a part of the next big angel deal or have large amounts of time on their hands to re-invest into other startups and entrepreneurs.  Furthermore, they’re now employees, which means they’re not spending much time starting their NEXT company.  They do have some domain knowledge and credibility to bring into their next startup.  Who knows?  They may even co-found something awesome that does benefit from Atlanta’s strength in payment processing.

Let me be very clear that I may have a number of facts wrong about compensation, deal terms, etc.  I’m a total outsider to this deal so I know little more than the publicly stated facts (the rest are educated guesses), but that also means that the way the deal looks to me may very well be the way it appears to other outsiders in the Atlanta startup ecosystem.  I also have the utmost respect for everyone involved in this situation.  The Twitpay team rocks.  I am sure their acquirers have great intentions and solid potential to do great things with Twitpay.

If I’ve got something wrong, let me know.

An ongoing message and lesson I take with me is that Atlanta is for bootstrappers unless you are fundable on reputation and track record alone, or you are one heck of a fundraiser.  Don’t quit your day job.  Let customers fund your growth.

The first 24 hours of Startup Weekend are a volatile time.  During ASW1, a huge swath of business and marketing types ran away after we chose to work on Skribit, and more attrition followed during early and mid Saturday afternoon as the team lurched into action.  During ASW2, many, MANY teams flamed out when they realized that the person who pitched the idea was trying to find free development & sales labor to build their idea in the coming months.  This year, at least 2 of the 8 teams totally cratered in the first 24 hours.

It happens.  Teams realize they can’t agree on what to build, that they can’t build what they want to, or that someone else already built the whole thing.  It’s not always a reflection on the people involved.  In some cases, I think it IS a reflection of the idea pitched.  Vague pitches about ill-defined products that will take a year to build are recipes for team implosion.

The first 24 hours of Startup Weekend are kind of insane.  You have teams of 5 to 20 people trying to get on the same page to figure out exactly what their project is, how to make money, and how to work effectively with a dozen strangers.

Touchdown Nation was no exception.  We had a great working session on Friday night deciding many of the things the game was and was not.  It changed a decent bit from my original pitch, or at least what I had in my head, which is a good thing and a great reflection on the team.  We came into this morning with a list of things to get done by noon, and we basically hit all of them, but there was still this sense of urgency.  We had a loose plan, a new name, and the technology infrastructure was in place, but hadn’t had any time to actually build the technology, the business, or the marketing.  It’s an uneasy feeling, which makes people on a team want to spend more time generating certainty instead of building something.

In the afternoon, we started to do less planning and more doing.  There are amazing times in startups where I believe the core team is in a rhythm.  In a rhythm, people on different teams understand the common needs enough that problems are worked out in conference calls, not huge meetings, and I believe Touchdown Nation hit that stride today.  When everyone is running toward the same goal, you need less meetings to reach that goal.  Course corrections happen through natural conversations, not huge meetings.

We hit that moment today.  Code started flying, blog posts started getting posted, you name it), but we got everyone technically ready to do their job.

That’s enough for now.  We”re very exicted and having a blast.  Check out @TouchdownNation for the latest news.

Game On!

-Rob

We launched Skribit in 3 days, and it remains one of the most successful Startup Weekend companies anywhere.  Last year, I spent time on the Seed Stage Records and Giving Time teams.  I left Seed Stage after Friday night, before it proceeded to implode on Saturday, and spent the rest of the time on Giving Time, which may be viable but hasn’t launched yet.

I pitched an idea at Startup Weekend, didn’t last year, and decided to pitch an idea this year.  Whether or not my idea was picked, my main goal was to launch whatever app I did work on by Sunday night.

Imagine my surprise when I presented an idea to build a social game for Facebook centered around Football, which I initially called Football Nation (the actual name is TBD), and I ended up with a team to build it!  The idea is that football is super popular, and Facebook apps are super popular, but nobody has effectively combined the two – instead, people are busy building farms, restaurants, and mafias on Facebook.  Not only could a football app be successful as a standalone app, it could provide a foundation to build a niche in social sports games and eventually a way to dethrone EA as the king of sports games.  (Frustration with NCAA Football 10 was actually the pain point that generated this idea.)

Our team is pretty enthusiastic about football.  We’ll be streaming Georgia Tech v. Duke on a projector tomorrow, and probably some other games.  Our team was not as well versed in Facebook social games.  In perhaps an odd move, we spent the first 30 minutes or so of our team meeting playing  the currently popular Facebook games in teams of two.  Mafia Wars, Restaurant City, Farmville, YoVille, and I even assigned Sorority Life to a guy I knew could take it. Hopefully they can detach from these new-found addictions enough to work on our app tomorrow.

I think we’ve got a good concept, and great thoughts from the team helped solidify answers to some key product decisions.  I am immensely grateful to have a strong development team which I can trust implicitly because I have worked with most of them.  I’m excited about the non-developer elements of our team too because they had great input and we need strong design, marketing, biz dev, etc. to make this thing work, and we have all of those skills.

If you’re a creative type and interested in helping, please find us.  We have a great start, but I believe that with this app, we have  a nearly unlimited need for UI input and asset production to make this game really rock.

If you’re planning to come to a startup weekend, prepare an idea to pitch.  The process of running  a team that has chosen your idea is amazingly different from being a part of a tea built around someone else’s idea.

Tomorrow is going to rock.

The first Atlanta startup weekend created Skribit, which launched VERY late Sunday night of that weekend, and was one of the first Startup Weekend projects to take on a life of its own beyond the weekend.  With every ASW1 attendee united on 1 project, we had an amazingly balanced and capable team, but we lost a lot of people after day 1 when they decided the idea wasn’t for them.  Skribit received funding from Georgia Tech’s Edison Fund, and is actively being worked on by Paul Stamatiou and others.

The second Atlanta startup weekend took on a new format.  Instead of having 60+ people create one company, we split into multiple groups to launch multiple companies – this was a good thing, although it led to a skewed distribution of resources (Reepli may have had 1/3 of the total developer pool, possibly with zero non-developers.)  I’m not convinced that the multiple projects led to any less attrition on day 2 than the ASW1 format.

The other big change was that teams were no longer encouraged to launch their company by Sunday night.  I think this was a VERY bad thing.  Businessy types who had been hunting for a technical co-founder for months pitched their huge-scope ideas.  Developers don’t show up at Startup Weekend to get another job, especially on ideas that several other developers have already declined to work on.  Friday night, I decided to join the Seed Stage Records team.  Late that night, when SSR’s goal for the weekend was set as launching a static web page by Friday night and doing more in the months ahead, I bailed.  The team imploded on Saturday over vision & direction issues that wouldn’t have been a problem if they had been focused on launching a minimum viable product by Sunday night.  Saturday morning, I joined the GivingTi.me team.  I rolled up my sleeves and put a lot of work into building a launchable site over the next 2 days.  It didn’t launch, mostly, I think, because there was NO pressure to launch.  Nobody cared if Giving Time launched by Sunday night, so there was no pressure to work until 1 AM at night, no pressure to cut scope, etc, etc.  It STILL hasn’t launched 9 months later.  As best I can tell, none of the code our team wrote will be used when it does launch.  Almost sounds like a wasted weekend, but I still had a blast.

I believe the first Atlanta Startup Weekend did a better job of building community and launching product.  ASW2 did launch TwitPay, but it germinated from the core Merb team, and I’m not sure the weekend did more than give those guys a kick in the pants to launch a rocking idea (to their credit, they DID launch something).  ASW1 did a LOT more to build Atlanta’s entrepreneurial community.  Part of that is because ASW1 was a part of Atlanta’s Great Awakening.  In many cases, it was the first time many of Atlanta’s startup-oriented minds met and had a chance to size each other up.  I think that’s too flippant, though.  The process of fighting over the concept, scope, and design of Skribit to successfully launch it in 3 days led to a better product and a better community.  At the end of ASW1, I knew who I wanted to work with again, and who I did not (AND I currently work with 2 of my Skribit co-founders).

So my call for Atlanta Startup Weekend 3 is to LAUNCH SOMETHING.  Don’t pitch an idea that can’t be launched by Sunday night.  Don’t join a concept that needs 6 months of work to launch – this isn’t startup speed-dating.  Don’t let your first team meeting degenerate into 1 year planning meetings and a goal to launch a landing page.  Find a great idea with other smart Atlanta / SouthEast regional people to work with to LAUNCH some version of that product in 3 days.

And if you’re working on a startup either full-time or on the side, the same challenge is out there.  Launch Something so you can begin getting customer feedback, iterating on your idea, and learning, instead of thrashing on an unlaunched app.

@jimmyfallon has taken the late night show slot on NBC formerly occupied by Conan O’Brien, with moderate viewer ratings thus far.  Interestingly, this evening, Jimmy and guests @kevinrose (Digg.com), @alexalbrecht (Digg.com), and @rustyrockets (Russell Brand, Forgetting Sarah Marshall funny guy) asked their Twitter followers and TV viewers to follow @bryanbrinkman, with the goal of unseating @BarackObama as the most followed person in Twitter.  Bryan’s a New York City based creative dude focused on video and animation.  He started today with 7 followers on Twitter.  For the uninitiated, Twitter is a “micro-blogging” service where users can post what they’re doing in 140 characters or less. Unlike Facebook or MySpace, you don’t have to be “friends” with someone.  I can follow your status updates even if you don’t care what I’m doing, and vice-versa.

I started following Bryan on Twitter earlier on Wednesday, after Jimmy twittered about it, but before the show aired – his follower count was still 4 digits at the time.  When he appeared on the show on the East coast, Bryan had over 11,000 followers due only to the “tweets” (twitter updates) of Jimmy and his guests.  As of the time I’m submitting this post, Bryan has over 18,600 followers, and this is even before Jimmy’s show airs on the Twitter-heavy West coast. In doing so, he passes the Wall Street Journal and Fast Company Magazine to become one of the 10 most popular Twitter users in New York City and in the Top 300 out of 1.3+ million twitter users.  Tuesday, Ellen DeGeneres created Twitter account @TheEllenShow, after guest @iamdiddy (P Diddy) demonstrated Twitter to her, and already has almost 50,000 followers in just 2 days, placing her among the 200 most popular twitterers.  Twitter has also been heavily talked about on the major news networks – it is everywhere.

As I was updating stats for this post, Twitter showed me a fail whale several times, as it does then they’re getting more traffic than they can handle.  Twitter Search’s trending topics at the time were Jimmy Fallon, Google Voice, Bryan Brinkman, #SxSW, Late Night, South Park, Watchmen, Russell Brand, #melo, and GrandCentral – with 4 of these 9 topics related to Fallon’s gag, I have to believe that the fail whale was caused by Jimmy Fallon sending a ton of curious viewers to Twitter in a burst.

Twitter is everywhere on TV now, so much that I am inclined to call it mainstream.  I see not just technophiles on Twitter now – I see people I know from all disciplines – PhD chemists, real estate agents, entertainers, churches, you name it – joining Twitter.  Twitter’s been pretty stable lately, but with 33% growth in just the past month, and the ability of a single mainstream media hit to induce fail-whale’s, I think we’re in for a whole new era of growth as Twitter is embraced by a mainstream audience, and a whole new era of odd Twitter behavior as a flood of new users enters faster than the existing users can educate them about Twitter’s social norms.

Dear Georgia Christian Coalition:  you’re doing more damage than good.  Show me what part of your Bible shows Jesus running around lobbying King Herod and Caesar to make the 10 Commandments the law of the land?  From where I sit, your efforts on issues like this do nothing but turn non-Christians off to the church, and to the message of Jesus.  Well done.

Jesus didn’t spend his time telling unreligious people what NOT to do.  He spent time building relationships, hanging out with people that religious folks didn’t approve of, and knew that changes in lifestyle come from the heart, not from legislature.  He did spent a good bit of time chastising religious people (Pharisees & Sadducees) who were obsessed with rules and rituals (sound familiar?).

Even more hollow is the moral ambiguity behind the focus on this one issue.  If selling alcohol on Sunday is bad, why are you not leading the charge to introduce laws to ban alcohol sales every day, or prohibit selling anything on Sunday?  Why allow the sale of lottery tickets on Sunday, and why not close down “gentlemen’s clubs” on Sunday or every day as well?  Taking an annual stand against six-packs on Sunday is posturing – if you’re going to take a stand, at least stand for something more than an awkward compromise.

Lobbying against Sunday alcohol sales in the name of Jesus drives people away from wanting to become or even associate with a Christian, and harms the Republican party you so closely tie yourself to.  Try being known for what you’re for, instead of what your against, and focus on people, not laws.

On the other hand, I could not have built the FeatureFrame technology without Flex.  There’s no simpler way to build a widgetized video player with embedded applications.  The same pains of horrible documentation, irrational design decisions, insidious bugs, and painful workarounds remain, but the things it makes easier pale in comparison to the obstacles of any other approach.

And of course in building a virtual world such as Elf Island, Flex is an obvious choice if you want to play it in the browser and build maintainable code (binary Flash files make a poor foundation for a sustainable product).

For most languages you might want to build a Flex app in, free, open options are available.  I had a recent need to prototype a solution that might also turn into a test fixture for our vendors to use in producing Flash apps, so Rails seemed the natural solution for simplicity of deployment and prototyping speed.

The main choices to support Flex Remoting calls in Ruby are RubyAMF and WebORB.

In trying to decide, I encountered a very useful comment in this thread:

"The biggest difference between what WEBorb provides and what RubyAMF(only
AMF alternative I am aware of) provides is workflow.  Weborb is a great
product written by guys who do java primarily.  So it follows the patterns
of having a Service layer that connects you to your application.

RubyAMF is written by a ruby developer."

Immediately, I know what my choice is.  WebORB is obviously the trap of over-architecture and suffering that pervades “correct” Java development.  A quick search on how to use RubyAMF (in a controller) confirmed my suspicions:


respond_to do |format|
format.html # index.rhtml
format.xml { render ml => @people.to_xml }
format.amf { render :amf => @people }
end


When I see code like this and compare it to the WebORB or GraniteDS implementations, I just can’t imagine choosing those other paths.

Rails + RubyAMF is concise, clean and obvious in what it’s doing.  Yes, please.

Ruby on Rails has this concept of “scaffolding“, which makes it trivial to get a simple web application running to perform create/read/update/delete operations on a simple business object.  So if you wanted to build a basic address book, Rails could basically create that application with a one line scaffold generate script.  It produces a simple web interface, and handles all of the database calls for you.  Java code to accomplish the same task is typically more verbose, but even if you wrote it from scratch in any language, it would be fairly intuitive for an experienced developer with no knowledge of your business to immediately understand the app and how to extend and maintain it.

At some point, almost any app becomes more complex.  The current version of Digg could not be developed for $200, and I dare say it would be foolish for someone like Digg to build an application of its current complexity completely contracted out.

I’ve been in startups all along the continuum, and made transitions between different mixes of internal versus external product development and infrastructure.  My current opinion is to outsource the scaffolding.  If you’re deploying a java/tomcat/MySQL app on a plain vanilla linux distribution, you can probably have a contract sys admin put that together for you – any other competent admin can look at how it’s configured and fix your problems.  When you start depending on all sorts of custom extensions, configurations, replication, huge scale, and/or DB sharding, it’s probably time to hire some admins that can own that custom knowledge you depend on.

The same thing goes for product development.  Are you building out a marketing web site?  An app that could be built with Rails scaffolding?  Contract it out – good contractors will realize how easy it is and crank it out for cheap (though maybe more than $200).  Most capable software developers you would hire or have hired don’t want to build or maintain that stuff anyhow.  Save internal development for the custom, proprietary stuff you need to spend time on, the meat and potatoes code that differentiates your application from everybody else’s.  The stuff that will take even a good developer more than a couple of hours to really comprehend.  Start throwing the switch to internal resources when it starts to get complicated – you’ll be much happier.  Trying to insource knowledge of a complex application that’s already been written by someone else is doable, but quite a challenge.

In spite of that, I was able to hatch FeatureFrame during my off-hours. It did occupy much of my creativity, and the process of building a product prototype, a pitch for Startup Riot, filing a provisional patent, designing a logo and business cards, and creating an actual business entity has been exciting, challenging, and in a twisted sense, fun. Many thanks to my Twitter posse, who often functioned as my co-founder, providing feedback and helping with decisions where I needed more than just my opinion. No I do not have stock options for any of you. Some interesting FeatureFrame news may yet be around the corner. It is still an interest and a passion of mine, and it will live on, but it’s not quite ready to be my main job.

The other thing I suspected when I left WeTheCitizens was that there were some interesting opportunities out there that weren’t crossing my inbox either because they were being filled by recruiters we’d used at WeTheCitizens, or because people generally seem to have the (often correct) impression that an executive in a startup isn’t really looking for another opportunity, at least until the startup’s been bought/folded and the earn-out is done. Being on contract actually did seem to send a clear signal, “Hey, I won’t be doing this new gig for too long, and I’ll need something interesting to do after that.”

A few moderately interesting things came and went, but one opportunity stood out, and I’m now a few weeks into my new role with Good Egg Studios. For all the times we jabbed at one of my Premiere colleagues for his work on Barbie.com, I never thought I would be working to build a virtual world for kids.  But here I am working on Elf Island.  A glance at the site and the blog should begin to make it obvious why.  This is an amazingly talented team, with the right marketing, the right funding, and the right product at the right time. The creativity and talent of the creative team is off the charts, and has combined with some talented technical resources to build a virtual world that a generation ahead of what kids are currently using.  The $2 billion valuation of Webkinz and Disney’s $700 million acquisition of Club Penguin are both examples of companies who have made this space extremely profitable.  The “secret” of Elf Island and our “play games, do good” mantra (which allows users to directly help non-profit causes) are going to be very sticky features that I think kids and adults will enjoy (even before launch, we’ve already had eager & hopeful users build us a fan site).  Our office space in west Atlanta is a win both for commute and for awesomeness – I need to take some photos, or come by and visit some time.

So that’s the news.  We are hiring a Java developer, a Flex developer, and a technical project manager (dev mgr?), so if you are somebody or know somebody who would enjoy such a role, do let me know.

I wanted to avoid generating curse words, or any words for that matter, so I opted not to use vowels rather than try and figure out something more clever.  I also had no requirement to obfuscate the sequential nature of the generated value.  The result essentially converts a number to a base 54 string suitable for use as a URL parameter.

URL_CHARS = ('0'..'9').to_a + %w(b c d f g h j k l m n p q r s t v w x y z) + %w(B C D F G H J K L M N P Q R S T V W X Y Z - _)
URL_BASE = URL_CHARS.size

def generateUrl idNumber
localCount = idNumber
result = ”;
while localCount != 0
rem = localCount % URL_BASE
localCount = (localCount – rem) / URL_BASE
result = URL_CHARS[rem] + result
end
return result
end

My usage will be to convert the numeric primary key of my model objects to this hash, so that Person #1174229 could be referenced as the short url http://app.com/p?i=7sH_

Obviously, the straightforward business of inserting this value into your table, performing lookups on it, etc is omitted and should be fairly straightforward to a seasoned developer.  The function can fit almost a half-billion values into 5 characters, and doesn’t experience the stack overflow issues of some recursive implementations I found, so I think it’s pretty useful.  (7 characters give you 1.3 trillion possibilities… nice!)

I can see a pretty cool plugin being built to solve this problem… maybe I’ll get around to writing short_url_fu one of these days.