by tomnora | Aug 26, 2014 | Angel Investor, Drupal, founder, PHP, Revenue Growth, SaaS, Scalability, startup, startup CEO, venture
As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion.
http://j.mp/nora-acquia
There’s a lot of buzz about the Amazon acquisition of TWITCH this week. As a personal friend of the original investor, I’m very happy for this transaction – after 7 years of work, repositioning, and sticking to it their vision has paid off. But that’s a different article…
Less prominent in the news, but possibly more important, is Amazon’s investment in ACQUIA. Acquia, Inc. is the for-profit company founded by Dries Buytaert, the inventor of Drupal, to support his open source project. Drupal was launched in 2001, and Acquia started in 2007. When Open Source software projects are launched, the progenitors often start a for-profit sister company to garner some income from training, support and consulting. Because they are open source. the original products can’t generate revenue, so when these OS projects occassionally blow up into phenomenons like Drupal and WordPress have over the past few years, it’s gratifying but also quite frustrating to watch others derive so much value from your baby while you toil away to lead its growth with no financial return. Plus, there are tons of expenses like servers, bandwidth, office space, travel and the time of many professionals.
Red Hat was one of the first of these types of companies bridging open source with big finance, leveraging Linux support into a profitable business, also leveraging the enterprise. They kind of invented this business model. Sun Microsystems and others almost made it happen, but they were only semi-free. Google has optimized this open source to freemium model in almost all of its products.
But Drupal has succeeded way beyond it’s original expectations. It was originally started as a college dorm project, where many of the best products on the web seem to hatch. It gained recognition during the 2004 presidential campaign when Howard Dean’s IT director decided to use it as a platform for community and campaigning. After that it quickly gained credibility and spread throughout government, and corporate America.
Drupal is now driving some of the largest and most critical websites in the world, including The White House, The Oscars, Twitter, Mercedes Benz, Warner Music Group, The Louvre Museum, The City of Los Angeles and Stanford University. Over its 13 year life the web has vastly changed from primarily static pages to dynamic database driven automated (“rendered”) web page serving, which Drupal excels at. The average website size has also greatly increased, aided by automated rendering systems like Drupal and others. The term Content Management System has become mainstream in everything from the Fortune 500 to small businesses.
Some of Drupal’s success has come from luck, but most of it has been because of strategy and excellent timing. Dries has carefully pushed the technology not to the bleeding edge, but towards the modern edge where enterprises are comfortable. He and his team have avoided many temptations to try new fads, make big changes and try to grow faster. Currently they face enormous pressure to innovate faster, and are responding with Drupal 8, which will incorporate many new modern web architectures previously not part of the Drupal platform.
Acquia has been critical in supporting, guiding, enhancing and positioning Drupal for the past 7 years. It was a startup that launched with funding from day one and has never looked back.
Amazon’s motivation in buying into Acquia is a bit more self serving. Acuia provides premium, high security, supported hosting to it’s customers, which all runs on top of Amazon AWS. Amazon can see that some of AWS most robust and challenging work comes from Acquia with Drupal. For example, Acquia runs its Drupal infrastructure on more than 8,000 AWS instances and serves more than 27 billion hits a month (or 333TB of bandwidth). Amazon has a strategic value beyond many other companies or VCs in their investment.
What will come next? Will Amazon try to acquire all of Acquia before the inevitable IPO? I think we can bet on that.
This is a very contemplative time for Buytaert – he has fierily protected Drupal’s independence and strategic positioning, taking risks but protecting his large customers from drama, can he keep Amazon and Bezos at bay? I have no doubt he will, for he is a true “Startup CEO”, even though his title is CTO at Acquia.
@tomnora
more info on the funding round from @thewhir http://j.mp/nora-acquia
by tomnora | Mar 10, 2014 | AdTech, early stage, founder, Tom Nora
Let’s start with the Non-Tech – Here’s a small piece I just wrote on the subject of how to visit the Bay Area and not be totally focused on techno-nerd things:
You should also expand your horizons beyond the techy stuff. I’ve worked and lived in Silicon Valley off and on for over 30 years (really!) and always enjoy the escapes from my techno-binary lifestyle there.
In fact, if you’re not so one dimensional and career/money/technology focused, you’ll probably have a better chance of meeting the right people.
I’m not disagreeing with the other lists here, especially Scoble’s list is very good and you should do all those. But here are a few of my favorites…
NON-TECHY EXPERIENCES:
>> Go to downtown Los Gatos and walk Main Street and University Ave, it has a very non-techy feel to it. Then sit in the Los Gatos Coffee Roasting Company for a bit.
>> Sit in the Rodin Sculpture Garden on Stanford Campus.
>> Drive the hills between Silicon Valley and the coast, go to the Half Moon Bay for dinner on the pier.
>> Drive up Sand Hill Road, slowly, and take it all in. This is the origin of most of the biggest VC deals in history.
>> Hit some dive bars in SF, there are too many to even list. SF is becoming more techy, but there are still many places where you can forget you’re in the center of techdom.
>> Walk the Golden Gate bridge.
Since SV is so tech focused, it’s actually a pleasant surprise when you find non-tech things to do there. If you do some of the above, I guarantee your trip to Silicon Valley will be much better.
For the technical visit list, my favorite was assembled by Steve Blank…
A Visitors Guide to Silicon Valley | Steve Blank.
by tomnora | Oct 18, 2013 | Angel Investor, CEO Succession, early stage, founder, Hawaii, PHP, SaaS, Scalability, startup CEO, Tom Nora, venture
http://t.co/LkQ7kDluf0
via 5Q03: Puneet Agarwal (True Ventures) on pitching investors, maker culture, and big trends he\’s watching. — The Orchestrate.io Blog.
via 5Q03: Puneet Agarwal (True Ventures) on pitching investors, maker culture, and big trends he’s watching. — The Orchestrate.io Blog.
![Silicon Valley Uber Alles? I think so… Some of their Secret Weapons.]()
by tomnora | Sep 11, 2013 | Angel Investor, Business Development, CEO Succession, Drupal, early stage, founder, Hawaii, Jobs, Launch, Revenue Growth, Scalability, startup, startup CEO, Tom Nora, venture
[contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form] Can any other region “catch up” to Silicon Valley, or be the next Silicon Valley? Statistics show that it’s probably kind of futile to even try. Many have tried, but must be content with their small market shares. How can other regions will ever match the MACHINE: Stanford, Andreesen, Draper, Valentine, Doerr, Facebook/Apple/Google Millionaires, 4 Generation VC firms, Hardware/Software partnerships, over 100 Billon $ market cap cos.
Because high tech and software industries are now being seen as lucrative, job creating, imperative and oh so sexy, many regions are trying as never before to get in on this – mobilizing their governments, old school industries, universities and grandmas to unite to be the next Silicon Valley, calling themselves Silicon- Beach, Forest, Plains, Alley, Prairie, Coast, etc. These towns are setting their expectations way too high while the real Silicon Valley giggles at the sight.
Here are some of the secret weapons that make Silicon Valley stronger than any other “region” and act as its barriers to entry:
1. Silicon – Uh, yeah, that word? It’s what started all this. Silicon Valley launched and was launched by the mainstreaming of the Silicon chip over 50 years ago, which is now part of everything. There was no other part of the planet where anything close in innovation, design manufacturing, equipment, marketing and sale of semiconductors has emanated from. This foundation still drives the area and the world, even thought it gets less attention now than the software side.
2. 100 Years of Growth – It all began with military electronics, low cost housing, lots of empty land and Stanford University. It has spread way beyond to the east bay. San Francisco, over 50 universities and trillions of dollars in revenue. The growth has had bumps but over time has increased more steadily than any other economy in history.
3. Recruitment – Most of the leaders in SV are from elsewhere because Silicon Valley aggressively acquires the best from all over the world. Why not? Via Stanford, Berkeley, Facebook, Google, recruiting Harvard and MIT undergrads, their wonderful PR machine, advertising free meals, free car washes, free dry cleaning, free day care. $150,000 salary right out of college. Unlimited vacation. Where else can you gat all this?
4. Stanford – Not sure this even needs explaining, but Stanford has been a wole new entity in the past 20 years, beyond anyones imagination in wealth creation, funding, computer science, a recruiting engine into SV then on to local companies, pride, confidence, location.
5. Money, money, money – There are so many giant sources of money in SV that it’s staggering. VCs of course, Angels, they invented the term Super Angel, San Francisco, Real Estate leverage, IPO millionaires, corporate funding, Asian and European money, and on and on.
6. Tolerance for Weak Links – Here’s one most people don’t know – most people in SV aren’t stellar; I know several weak players who fake it well and are millionaires or millionaires-to-be just because they’re in the right zip code. The public tagline is everybody has a high IQ, but in reality there are lots of dwebes running around – I know, I’ve managed plenty of them. SVs leaders smartly realize the win ratio can be pretty low if you have a few enormous winners. Most SV projects die, most SV companies die, but if you build the algorithm to plan for this you’ll put more possible winners in play. So what if a few totally unqualified employees that snuck in make a few million. Like any organization, there are several who skate by or get by on good politics. That’s OK if you plan for it, “engineer” for it.
That’s just 6, there are plenty more reasons why there will only be 1 Silicon Valley for along time to come. The best answer for any other local economy is to just make the most of who you are, embrace your own identity, partner with Silicon Valley. And don’t use the word “silicon” in your name. Take Boulder, Colorado as a model, they’ve successfully created their own very strong economy for startups. There’s a startup for every 50 or so people there. They have all the pieces and they are heavily connected to Silicon Valley without envying them.
@tomnora
by tomnora | Aug 22, 2013 | Angel Investor, Business Development, early stage, founder, instagram, Jobs, Launch, Revenue Growth, startup CEO, Tom Nora, venture
This has organically happened a couple of times for me – someone I’ve worked with in the past asks me to write them a recommendation and then spontaneously returns the favor. It’s a very cool gesture and it reinforces the relationship for the future.
Below is an example for a startup entrepreneur I just went through a short mentoring process with, Greg Weinstein. Greg will do very well with his company, I could’ve written a lot more about his attributes.
I recommend (get it?) you try this – swap a recommendation with close present or past colleagues; it will enhance both of your social business circles and create new connections.
It’s hard to derive extra value on linkedin, rise above the fray – this will help you do it.
#networking #linkedin #social_marketing
– – – – – – – – – – – –
Gregory A Weinstein has recommended you on LinkedIn
Gregory A Weinstein
Gregory A Weinstein Founder and CEO, One Fulfilling Life
To: Tom Nora
Date: August 22, 2013
Gregory A Weinstein has recommended your work as Founder, Marketing, Community Development at Startup Workshops.
Dear Tom,
I’ve written this recommendation of your work to share with other LinkedIn users.
Details of the Recommendation: “During the early and critical stages of the conception and start up of One Fulfilling Life, Tom provided us with thoughtful, wise and nurturing insight and guidance. He was our “Board of Directors” and the fit seemed very natural and intuitive.
It was an awesome opportunity and I relish the experience. His guidance saved us a lot of time and money and more importantly kept our momentum moving forward in the face of what could have been crippling obstacles. If your a tech start up and especially if this is your first business venture Tom’s your man. Catch him if you can!!!!!
Thanks Tom”
Service Category: Business Consultant
Year first hired: 2013
Top Qualities: Expert, Praxis High Integrity Systems
