One of the first things you learn when you launch your own startup is to actively monitor opportunities in the market and move quickly to leverage them. In my case, it happened three times in the last three years.
The first strategic move happened back in the fall of 2006 when Sylvain Carle, Harry Wakefield and I founded Praized Media to help local media companies leverage the rising force of social media and online word-of-mouth. I also started blogging about what I call “local 2.0,” the intersection of local search and social media. At the time, most people believed that this convergence would not happen. Three years later, it’s one of the hottest sectors.
We made the second key move in fall 2008. Having launched our first social local tools (for WordPress, Movable Type, Facebook and our hub site) a couple of months before, we were approached by a few major media players who signaled to us they would be interested in using the technology we had built within their own online platform. This gave us the confidence to develop white-label enterprise versions of our social local media software, which has been in the market since spring 2009. Building on the popularity of our initial module, we developed many more enterprise modules described here.
The third strategic move is happening now. Last fall (what is it with fall???), we were approached by two US investment banks who aspired to represent us if we ever wanted to find a strategic partner for Praized Media. A few companies also hinted to us that they might be interested in investing in or acquiring Praized Media. Based on that enthusiasm, Sylvain and I (along with our board) discussed the pros and cons of going to the altar with a strategic partner vs. continuing alone.
The market is super-hot for technologies like ours. In the last three months, there has been a flurry of acquisitions and funding events in the “social local” space (we’ve created a document listing them if you’re interested). We could go on the road and raise new VC money to fuel our growth, but anyone that has raised those kinds of funds before knows that this is a brutal process, even when your market is hot. It takes a lot of time and energy, and for small companies, the process forces you to take your eyes off the product/company development roadmap. At the core, Sylvain and I are product/technology guys and that’s what we want to do. In the last two years, we’ve built world-class real-time social local search technologies. We’ve assembled a five-star (pun intended) social local technology development team. We’re notable thought-leaders in our space.
The future of local media will be centered on Aggregation / Discovery / Social / Search and our technology stack enables that. We believe what we’ve built (team and technology) represents the cornerstone of the next-generation local media company (traditional or pure play), and we want to focus on building that vision with a larger organization.
For all those reasons, we have decided to hire [praized subtype=”small” pid=”858569eeccb433824aca7193236f55ce” type=”badge” dynamic=”true”], an investment banking firm in Los Angeles that specializes in digital media, to represent us in our search for a strategic partner. We’re obviously supported a 100% in this decision by our board and the whole team is excited by this new move. For our current customers, collaborators and service providers, it is business as usual as this does not impact our day-to-day operations (actually, it frees up more time!). Given current market conditions, we are extremely confident we will find the right strategic partner.
If you’re interested in discussing more the opportunity, you can contact Siemer & Associates at (310) 496-4510 or firstname.lastname@example.org.