Wednesday, April 15, 2009
Drupal 7 UE Redesign: Just Copy Already
Labels: d7ux, drupal 0 comments
Tuesday, March 31, 2009
Idealware releases new CMS report
Labels: drupal, idealware, nptech 1 comments
Tuesday, July 8, 2008
Open source vs Antharia
The folks over at Antharia are some true blue mission driven nonprofit technology providers, but I suspect they are buying into the entire open source vs. vendor thing driven by FUD (fear, uncertainty & doubt) generation on both sides. To whit this post.
I think Jordan and I would enjoy having drinks... something about an affinity for a rant. So here goes,
- Drupal, Plone and Joomla ARE NOT VENDORS.
- Antharia, CitySoft, Convio, etc. ARE NOT SOFTWARE.
- FourtyFourFish / On Content, their software.
- Antharia, the vendor.
If I did not know better I would swear the makers of Drupal, Joomla, and Plone were greasing the pockets of NTEN.I'm not sure how the 1400 individuals that "made" Drupal by offering uncompensated contributions of software code could or even would slip NTEN a check, but hey, whatever. You are not buying a vendor when you use open source software. End of story.
Now, NTEN can take it on the chin for screwing the pooch on the CMS software survey by conflating the software and the vendors into a single entity rather than having people rate the software and the vendor seperately. Not sure how Drupal can deliver on promises since software doesn't make promises, vendors do.
And the open source guys spread FUD about vendors mostly by using the words lock in and free. If you have a good vendor, your probably pretty happy with your lock in.
Finally, as a big open source proponent, I must pose the question... who can write better software? A small company with a couple developers? Or 1200+ contributors driven by a multi-million dollar ecology?
And props to the small nonprofit technology vendors... who can help out a small nonprofit implement software better? 1200+ conributors who couldn't care less about you? A small company where you are an important customer?
What is the best solution for nonprofits? Excellent software (open source) implemented by excellent vendors (small mission driven shops).
Labels: civicrm, drupal, nonprofit, nptech 2 comments
Monday, January 7, 2008
Acquia Valuation- Wow
Acquia, a Drupal start-up from Dries Buytaert, the founder of Drupal was funded for with a 7ドルM seed round. Actually there might have been a smaller seed round and Acquia has been in stealth for awhile, but that is unclear.
The more interesting thing is to speculate on Acquia's pre-money valuation. Basically (I think) you have Dries, a CEO and a business plan. Maybe you have Dries, a CEO and the core team already committed (seems like the core team has been on board for many months from their posts on the Acquia blog).
So some quick math. Assuming they want to keep the founders stake around 50% for a series A, that means VC equity + option pool (lets say 30%) = 50%. Therefore 7ドルM is should be ~20% of the post-money valuation. Putting post money at 35ドルM.
Sounds super high, so maybe they kept founders + option pool at the 50% level and sold the VCs 49% (lets estimate 50% for the math). Of course this means that in a B-round founder control goes away, though we have no idea about what they've done with preferred stock. But 7ドルM is a bunch of money (15 people for 2 years using a 200ドルK per head per year back of the envelope), so that B round is probably not much of a concern.
So the math is 7ドルM equals 50% post-money putting post-money valuation at 14ドルM.
Whatever the case, two guys, a business plan and maybe a team, were worth something in the neighborhood of 7ドルM-28ドルM pre-money. If I were betting in Vegas, 7ドルM or perhaps less.
Still, a few guys + a business plan is worth 7ドルM? Where did all that value come from? It might be the revenue model, but I suspect it really comes from the Drupal community.
This is the far more interesting part of the Acquia story. Drupal has "spun off" (insert more precise term here) a number of consulting forms that have been growing wildly. Valuations of the CivicActions, Advomatics, Trellons, Lullabots, etc. of the Drupal community are probably pretty good-- general rule of thumb for a profitable consulting firm should be 150ドルK revenue per employee per year, but consulting firms have a hard time growing beyond 3ドル-5M in annual revenue. These guys are feeding their families well, but they aren't making what I would consider "real money" off Drupal.
I think the VC's bought into the idea that Acquia's product has already been mostly developed. They have bought into the idea that customer acquisition costs are low because the customers are aggregated and accessible in a single community.
Now lets look at exits. Acquia is to Drupal as RedHat is to Linux. RedHat's exit was via IPO at a valuation around 3ドルB at ~40ドルM annual revenue with annual revenue growth '95-99 running around 100%. Red Hat's product strategy was pretty retail there and now is far more services/ enterprise related. Not sure how much they raised.
Someone believes there can be a multi billion dollar exit on Acquia, and their press release blurb gives a good story:
The Drupal web platform has been downloaded over 2 million times since its inception, and project growth doubles annually. Drupal is used to deliver a wide variety of Web 2.0 application types including single or multi-user blogs, wikis, community networks, digital media portals, and core web content management.What if a single company could sell all kinds of web 2.0 applications without having to pay for the software development? Anyone what to bet on how many times Ning was brought up with VCs (with their rumored post money of 214ドルM in their recent 44ドルM funding round) ? But that might confuse the VCs, since Ning's an eyeball and advertising dollar play, it appears.
I am really curious how Acquia projects revenue. It is distributions and services, but are the customers existing Drupal community members (i.e. a little more retail)? Is it the enterprise players that come into the community and drive the revenue at the consulting companies? By making Drupal easier, how do they project community growth and what percentage of that community growth do they project capturing?
Do they have a Ning story and a Red Hat story? Whichever plays best with investors?
Bottom line though, is that huge pre-money valuation is driven by the strength of Drupal and, very likely, the inability of Drupal to grow its consumer user base as fast as the Joomal community (i.e. Acquia can capture customers the Drupal community simply is not pursuing and cannot reach).
If I were pitching the VCs I would lead with the Red Hat story, then pose the question, "What if a single company could capture all the revenue you see in the Joomla community?"
I'd invest in that company.
Labels: acquia, drupal 0 comments
Friday, December 1, 2006
Reinvention of the wheel again...
One of my irritations in life is when dollars dedicated to social change get invested invested in duplicative technical infrastructure.
So I've been looking at DonorsChoose, Kiva and GlobalGiving. From a software perspective, I pretty much can't tell the difference between them. Authenticated user creates project, visitors contribute money to project, project contains some rich information about the project, there is some accountability structure and reporting.
Why did they have to build three incompatible software systems? Why not standardize on single open source platform? That way each organization's investment in the open source foundation benefits all users. Over time the cost of innovating and maintaining the software per organization falls drastically. [I'm not naive... there are lots of good reasons, but still.]
Better question... where is the "micro-project" data standard so small fundraising opportunities (a school in need of a whiteboard, a village in need of a goat) can be syndicated quickly and easily across the Internet?
Lets build our technology with the same eye toward social change we use when developing our projects.
Labels: civicspace, drupal, fundraising, globalgiving, kiva, microsites 4 comments
Thursday, November 30, 2006
Online communities with fundraising microsites
From the CivicSpace Blog.
We think anyone should be able to create a Kiva or Global Giving style site for their social change project without having to pay for rebuilding the same basic technology over and over. Ultimately, we want to allow anyone to launch a Kiva or Global Giving style site for a low monthly fee with open source software (Drupal/CiviCRM).The benefits of open source is that you can focus on the mission and share the costs of the technology, building a community of folks supporting social change.
Labels: civicrm, civicspace, drupal, fundraising, globalgiving, kiva, microsites 0 comments