Q2 Recap – The Momentum Continues

Posted by Keith Cline on Tue, Aug 3, 2010

We always like to take a moment to reflect and evaluate all that has happened over the past quarter.  For our evaluation, we use the following indicators:  Top Deals, Company Buzz Watch, and Job Trends.

Overall, it was a productive quarter.  There was a great buzz in the air across the entrepreneurial landscape.  Last quarter also included June's Innovation Month in New England.  This helped maintain the buzz, as countless networking events and conferences were held.

One of the key highlights from the quarter was the Angel Boot Camp event organized by Jon Pierce of Betahouse.  The purpose of this event was to increase the number of angel investors in the area by educating those who were interested in making investments, but perhaps were not sure where to start.  Jon had about 275 people attend this event, which is an impressive number.  Obviously…this type of event and activity is great for the overall ecosystem in Boston.  If you are interested in checking out any of the presentations from the event, click here.

Here’s our recap:

Top Deals

During Q2, we saw a total of 11 acquisitions.  The 2 biggest deals were:  Phase Forward's acquisition by Oracle for $685M and Turbine's acquisition by Warner Bros.  Two other acquisitions worth noting include:  Liquid Machines by Check Point Software and MetaCarta by Nokia.

According to the Deals section on VentureFizz, 54 companies received funding.  Here are some highlights:  Brightcove ($12M), Gemvara ($5.2M), Demandware ($22M), Searchandise Commerce ($7M), Daily Grommet ($3.4M), Yottaa ($4M), Swipely ($7.5M), Sand 9 ($12M), Healthrageous ($6M), Affirmed Networks (11.5M), Jackpot Rewards ($14M), Extreme Reach ($9M).

Company Buzz Watch

SCVNGR – founded by Seth Priebatsch, SCVNGR is a location based mobile platform company that is backed by Google Ventures and Highland Capital Partners.  As they grow and expand, they are starting to compete against Foursquare and Gowalla.  It seems like you are seeing SCVNGR announce new features and partnerships almost daily (which is a good thing).  Check out the video from TechCrunch below.  Click here for additional news and information about SCVNGR.

LogMeIn – as one of the few IPOs from last year, LogMeIn continues to grow and expand due to the success of their mobile remote access and support products.  Their iPhone & iPad apps are consistently ranked among the top grossing apps in the Apple App Store, which is very impressive.  Their stock (NASDAQ: LOGM) has been climbing pretty steady as well.

Brightcove – five to six years ago, several online video platform companies were entering the market with the hope of being the YouTube for enterprise customers.  Since then, most of these competitors have either disappeared or changed their business model.  Brightcove has remained as the dominant player in this sector.  About a year ago, rumors swirled about Google eyeing Brightcove... it will be interesting to see how things eventually play out (IPO or acquisition).

Job Trends

Q2 remained active and consistent in terms of hiring.  Still, a majority of the demand seems to be in Software Engineering and Web Development.  We did notice a brief slow down after Memorial Day.  I believe the slow down was due to two factors.  First, companies hired a considerable amount of people during the first half of the year.  They needed to absorb these new hires and get them up to speed.  Second, the stock market was a little finicky again (Dow was below 10K in June), so you can tell companies are still keeping a watchful eye on the economy.  Once July hit, it seemed like things picked up again, so only a temporary lapse.

On the VentureFizz Job Board, we saw a total of 91 jobs posted.   As always, jobs were featured from companies of all shapes and sizes.  Here are some sample companies who posted in Q2:  BzzAgent, LeapFroxRx, Marathon Technologies, Compete, Endeca, Wistia, Mocospace, Sonian, StarStreet, Bit9, and many, many more.

Q3 already started out with a bang – as ITA Software was acquired by Google for $700M…but I’m getting ahead of myself…more on that next time around. 

Thanks for reading.