Venture capital firm swoops in to take care of a startup's tech, freeing clients' focus.
Launch Pad: Arcseed Sows Tech Solutions
Only a year old, Arcseed is a new local venture capital firm that offers a different type of capital—software solutions.
Arcseed acts as a development partner for startups, taking care of the tech side so clients can focus on the vision and other matters.
“We're not a consulting company. So you don't just pay us per hour. If we like the idea, we'll jump in, take equity,” cofounder Kyle Johns says. “We feel it allows us to be more vested in the success of the companies. You know, if we build a successful product, that means the company succeeds and so do we.”
Thus far, Arcseed has developed software solutions for two Columbus startups: Better Seats and
FirefighterHired. However, the team also is working on its own financial app, MuniAnalyst, and stays picky because of the way it measures success: equity.
“There's been a couple (startups) that we've had to push away, whether it's we just don't feel like it's a good fit or we don't like the idea,” Johns notes.
Invented by: Arcseed
Amount funded: None
Will Arcseed achieve startup success?
“Arcseed sounds like a combination of development partner and funding source, and therein lies their challenge. They must be viewed by their client as the best development partner and the best funding source simultaneously.”
Dan Finkelman, Managing Director, Mulberry Street Consulting
“It could be an interesting avenue to build out prototypes. … However, I do think it's important for any founder of a tech startup to be involved in the technical aspects of the company. … [The] better way to build a startup is to understand the inner workings yourself.”
Disha Shidham, CEO, Savy
“Arcseed has an impactful mission and everyone knows startups are always looking for ‘free' services. The problem is most early-stage startups fail, and … [Arcseed's solution] is not a new solution and usually doesn't work for most development shops.”
Alex Purtell, Accelerator Director, Lumos Innovation
AVE AutoMedia Looks to Entertain Passengers and Make Smart Cities Smarter
After pouncing on the opportunity to be in the Jaguar Land Rover Tech Incubator in Portland, Ore., Columbus startup AVE AutoMedia claims to be fully equipped for a partnership with an undisclosed automaker this summer.
AVE, a transportation infotainment company, was founded last year when CEO Ryan McManus, also the president and founder of marketing agency ContentVia, moved several staff members over to the startup.
The goal was to be one of the first connected car apps to entertain passengers in driverless cars, but the AVE team quickly pivoted to focus on offerings for passengers in conventional vehicles.
In March, AVE AutoMedia rolled out its first app, Neptune, geared toward a large passenger segment: children. The app customizes video content according to the trip's destination and duration.
After expected integration with the unnamed automaker this summer, the connected car app will allow drivers to control what children are watching.
McManus hopes data generated from AVE apps also will inform smart cities' logistics.
“Once we're able to understand how we can move through the connected car data, we can have a more accurate understanding of how people move at a micro level,” McManus says. “And that's going to allow public transportation systems like COTA to establish new routes and to determine what times they should be offering these types of routes.”