The Lull, through Grapevine, Maine and running

The “Lull,” reality or perception

This week, there is no central feature for Utterly Biased. Just a question.

What is your current perception of the Boston startup community, tech ecosystem, or whatever else you may want to call it?

Is it robust and thriving? Are there some incredible companies on the cusp of making national headlines or are there a whole lot of small wins that we are going to be seeing?

Or, as a few people have put it to me lately, is Boston in a lull?

For such a small word, “lull” packs quite an emotional kick. Webster’s defines it thusly: “a temporary pause or decline in activity,” and more specifically, “a temporary calm before or during a stormor “a temporary drop in business activity.” Whichever meaning you choose, it is not something you’d like associated with your business, and, it’s especially not the type of branding you’d want to saddle on an entire region’s innovation economy.

A slew of recent conversations I’ve been having with operators, founders, investors, and service providers have turned at some point to the theme that the Boston startup scene is eerily quiet at the moment.

Is this reality or just perception?

So, I ask you to send your thoughts my way. Is Boston in a downturn, or is this just the belief of a few. Is the ecosystem actually evolving as it should?

Send your thought to dennis@utterlybiased.com. I will publish some responses (you can request to have your opinion remain anonymous to the Utterly Biased readership.)

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Under-the-radar

This week, Dave Balter, a man who wears many hats, suggested a local company that he’s tight with that he believes isn’t getting the love it should. Balter singled out Grapevine, saying that the social media influencer marketing platform is “crushing it right now.”

Balter backed Grapevine through Boston Seed, and he is the head of its board of directors. According to Balter, who spends most of his time on his own venture Mylestone, Grapevine has really thrived since partnering with Chinese billionaire Bruno Wu’s Sun Seven Stars. That would make sense, Sun Seven Stars is an international private media and investment conglomerate that can help Grapevine take its social content monetization platform to a global market.

The market for connecting brands with social media influencers has been burgeoning as of late, but there have been two trends to keep an eye on. For one, YouTube, long the king of leveraging influencer marketing, especially with teens, has been seeing some blowback from major advertisers on how much control they have on the branded content that appears alongside their own advertising. While this doesn’t impact the influencers, per se, it is a signal to the marketplace, which has led some brands to look at YouTube alternatives like Snapchat and Instagram.

Second, Instagram has grown exponentially as a place for both branded content and influencer marketing.

Grapevine serves both platforms and should be able to whether changes in consumer tastes better than others in the space.

screen-shot-2017-02-22-at-4-00-23-pmWhat went down this week…

Maine – I met Kerry Gallivan, the CEO and founder of Chimani, a number of years ago at MIT’s VC conference. He looked a bit out of place hawking his outdoor adventure app, surrounded by three-piece suits and overly-eager to network aspiring venture capitalists. Maybe that’s why I was drawn to him and his story. That or the fact that here was this guy building a massive, aspirational project out of Portland, Maine — one of my favorite cities in the US — of all places.

Last year, Gallivan was listed in Outside Magazine as one of the “next pioneers” influencing the future of the America’s national parks. This week, Chimani announced a new product that should help it continue to dominate the national park tourist space.

  • The new Chimani Perks program is a membership savings club program for national park tourists. The program offers discounts on lodging, dining, activities, and more throughout the national park system, both inside the parks and in the neighboring gateway communities. Since its launch, Chimani — which has maps, content, and more for all 59 US national parks as well as those in the UK and Canada — has seen some rapid growth with more than 1.5 million downloads for its niche product. It customers aren’t the hardcore outdoor enthusiasts you might expect, but a large number of families, professionals, and retirees, what Gallivan called ‘windshield tourists’; a classification that makes up about 90 percent of national parks visitors according to the Chimani CEO. The number of active users each year is 750,000 according to Gallivan, and many of those use the park-specific apps to plan their trips rather than navigate them once they are there.  “Customers love our products, but we had to figure a way to make this business sustainable, which is the basis for this new Perks program,” Gallivan said. One thing is clear, its great to see some innovation happening in Portland and a good outdoor-focused business growing in New England.

FitRaceMenu, a platform for road race directors to manage, promote and grow their events, announced that it has sold off its race timing business to Second Wind Racing. RaceMenu, a stalwart of MassChallenge when it was at 1 Marina Park Drive, has quietly built a nice little business in the health and fitness space. Boston is actually a hub for these types of companies with Runkeeper, Inside Tracker, Spartan Races, Tracksmith, and more playing a major role in the active lifestyle and athlete industry.

I spoke with RaceMenu’s J. Alain Ferry, RaceMenu’s founder about the sale and how he is positioning the company moving forward. His response, “It may sound nuts, but it’s to compete against Square and Paypal.” He added that RaceMenu is “playing the long game.” Here’s more from Ferry, who seems to have figured out a way to actually bring innovation to the racing circuit:

  • “As of last week’s sale, we are singularly focused on software, and more specifically mobile payments. The endurance events industry offers a unique (and incredibly lucrative) opportunity for mobile payments. Ever wonder why every half/full marathon and large 5K under the sun has a pre-race expo but no post-race expo? The supply and demand are still there after the race, and even more so in many cases. But there’s no currency, nor will there be anytime soon. While increasing numbers of people run with their phone, that doesn’t really help all the merchants who want to sell to post-race “runners high” consumers. They’re willing to pay for better food, beer, race merchandise, running clothing, running shoes, massages, GPS watches, other race entries, etc. But how do they pay? There’s one thing which every single runner has on them after the race which can help. It’s their race bib. Timing companies use the race bib to identify the runner for scoring purposes. If you can connect their race bib to the credit card they used when registering online, you can also use the race bib for payments. Now you add this currency to an equation where supply and demand already existed and BOOM: you have a new market.”

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