Location-based services and startups: Trends, observations and investment themes

Location Based Market Study:
Trends, Observations, and Investment

Yujin Chung, Wharton School of Business, MBA ‗10
Simon Lu, Wharton School of Business, MBA ‗11
Gautam Tambay, Wharton School of Business, MBA ‗10

This information is confidential and was prepared by Yujin Chung, Simon Lu, and Gautam Tambay. It is not to be referenced, published, presented, or forwarded without their prior written consent.

Thanks to our sponsors and friends for all your support!

• Professor Rawley, Management Department, Wharton
• Steve Ennen, Wharton Interactive Media Initiative
• Jason Finkelstein, WaveMarket
• Josh Wais, Qualcomm Ventures
• Dalton Caldwell, picplz
• Frank Chen, Ronny Conway; Andreessen Horowitz
• Phineas Barnes, First Round Capital
• Rebecca Lynn, Morgenthaler Ventures
• Fred Wilson, Union Square Ventures
• Tony Zhang, Khosla Ventures

2

Agenda

• What is going on with location?

• Why is location important?

• How do these startups grow?

• Where do you invest in the location category?

3

Location can be organized around a map;
Research focuses Above-the-Map

Layer Description Example

“Above the map” • Applications
User-interactive layer • Application platforms

• Geo data
“On the map” • Location data
Visual representation and
• Contextual
contextual layer
• API‘s

• Infrastructure
“Below the map” • Device
Hardware / software
• Chipset
infrastructure layer
• Carrier

4

Location is on the mind of everyone, from VCs…
Select Invested Recent Location-Enabled Total Invested
Venture Capital Firms Mobile Investments Amount (MM)

$10.4

1.4

1.4

17.1

4.8

9.5

17.4

16.8

1.7

0.5

Source: CrunchBase. 5

…to the blogosphere…
Blog / Publication Date Comments
Jan-09 ―…millions of people are now walking around with a gizmo in their pocket
that not only knows where they are but also plugs into the Internet to share
that info, merge it with online databases, and find out what—and who—is in
the immediate vicinity… Simply put, location changes everything. This
one input—our coordinates—has the potential to change all the
outputs. Where we shop, who we talk to, what we read, what we search for,
where we go—they all change once we merge location and the Web.‖

Mar-10 ―Location-based mobile spending will hit $4 billion in 2015, up from
$34 million in 2009… commitments increasingly [allocated] to smart
phones, Kindles, iPads,
portable gaming devices and even cars. What used to be called point-of-
purchase is now called mobile advertising… mobile can be an extension
of a retailer's storefront.‖
Mar-10 To someone not in their 20s whose location generally isn‘t that interesting to
others… the idea of handing over your privacy with both hands to strap on a
digital ankle bracelet sounds profoundly unattractive… but to a younger
cohort that lives on the grid, the location of people you know and care
about is vital information, the coin of the realm.

Jan-10 Location-based ads will become mainstream as advertising and the
mobile web become location-aware. Brands will start to use location-
based apps to drive sales and marketing efforts.

Dec-09 Location, as a trend, remains on fire… And you can expect the big players
to step up their game in the space as well, as they all look to connect the
social online world with the real world — a real world that has also has a lot
of money potentially tied to location.
6

…to Web 2.0 incumbents

Company Date Event / News / Rumors
Mar-10 • Twitter turns on feature to directly tweet your location

Dec-09 • Twitter acquires Mixer Labs, parent company of GeoAPI

Mar-10 • ―Facebook Will Allow Users to Share Location‖, NYTimes

Feb-10 • Rumors circulate of Facebook ‗s potential interest to acquire Loopt

Mar-10 • TechCrunch reports that ―Location may get a central place in
Google‘s web search redesign‖

Feb-10 • Google launches Buzz (a social network with embed location)

Mar-10 • Launches sub-country Region Targeting (proximity advertising)

Jan-10 • Yelp turns on location ―Check-in‖ features

7

Data, technology, distribution, and access are
enabling location based services…
Catalyst Summary Opportunities
Improving Location • Higher quality and
Precision (Meters) Time to Fix (Sec) Cost
Determination real-time data streams
100 to 5,000 10 ~$0.06 per lookup

5 to 20 1 Fixed $ per device

Complementary • Smartphone adoption; location • Novel applications
technology in the is more useful when combined beyond web apps
handset (sensors) with other media

Increasing adoption of • 20% CAGR in Mobile Internet Users 111
126 • Ubiquity of location
mobile internet 98 information
84
69
51

2008 2009 2010 2011 2012 2013
US Mobile Internet Users (MM)
Mobile "ecosystems"/ • Centralized application stores accelerated distribution of • Independent
app stores / APIs location-aware applications; 70% economics to participants application
vs 30-50% with carrier-direct deals development

8

…leading to robust market estimates

$2,708 177,018

53% CAGR 63% CAGR
Revenues $2,043 Subscribers
$1,863
119,075

$1,299 89,366

61,836

$714

31,668
$327
15,472

2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013
North American Consumer LBS Revenues (MM) North American Consumer LBS Subscribers ('000s)

Source: Gartner. 9

Location based application development is
flowering on iPhone and Android
iPhone Android

Source: Skyhook Wireless, Jan / Feb ‗10 10

Agenda





11

Why is location so interesting?

Who is here?
Why did they Are they
come here? alone? What
Were they do they
influenced? share?
How so?

Were they
here before?
How often?
When?
Coming back?

Data:
Bridging online presence with physical world 12

Real-time data in the physical world is
fragmented / incomplete, thus limiting action
• Current methods gathers limited real-time metrics and
are not obtained by smaller venues
Membership Cards & Surveys Point of Sales Systems
Loyalty Programs

• Data limited to a single • Difficult to collect • Focuses only on
environment without incentives or transactions
promotions
• High costs to implement • Plus similar limitations
effectively • Data stales of loyalty programs

13

What if we curate data which enables web
analytics to the physical world?

Data Types Data Aggregators Data Consumers

Web 2.0 Example
• Prior Visits • Google Analytics • The Huffington Post
• Referrals • Webtrends • Nestle
• Uniques • Alexa • Yelp
• Bounces • Compete • Discount Tire
• Pageviews • Quantcast • Microsoft
• Session time

Location-Based Services Example
• Total Check-Ins • Foursquare • Bravo, MTV
• Check-Ins w/ Friends • Gowalla • Marc Jacobs
• Check-Ins at New Places • Google Buzz • Tasti D-Lite
• Check-Ins at Other Venues • Twitter • Zagat
• The neighborhood bar

14

LBS data goes beyond coordinates and
deliver a web-like picture of behavior
WHERE WHO WHAT WHEN WHY HOW
Geo- Social graph Context Frequency, Intent Path to arrival
awareness and group time and and path to
dynamics duration exit

• Fixing on • Identifying • Revealing the • Signaling • Understanding • Identifying
latitude and segments or real identity of degrees of transactional influences
longitude social a location loyalties nature at a driving traffic
coordinates networks location
correlated to a • Attributing • Correlating • Determining
• Surfacing location location‘s presence with • Maximizing linkages
traffic patterns characteristics temporal positive between
• Uncovering to one‘s events and incentives, locations
network behavior and seasonality minimizing
tightness preferences negative
between • Measuring
nodes in the engagement
physical world

Basic Data Rich Data
15

Enables the data hungry with a new tool
Segment Examples Illustrative Decision Makers Illustrative Outcomes
Local • Establishment owners • Employing unique and effective
Venues, • General managers loyalty programs
Groups,
Teams
Consumer • Brand Managers • Leveraging a customer‘s social
Brands • Ad Agencies capital and converting him/her
into a brand ambassador

Media and • Editors • Extending total engagement by
Content • Marketing Directors promoting physical world
Owners interactions

Retailers • Social Media Directors • Experimenting with cross-sell
• Loyalty Program Managers opportunities amongst local
affiliates, new response
metrics, or real-time promotions
Events and • Event Organizers • Enhancing customer
Destinations • Business Development experience through
personalized services and
discovery

Note: Illustrative decision makers and outcomes not limited to individual segments. 16

…but each sees signals in the data uniquely
Value of LBS Data to Individual Data Consumers
WHERE: WHEN: HOW:
Geo- WHO: WHAT: Frequency, WHY: Path to arrival
Awareness Social Graph Context time and Intent and path to
duration exit

Local
Venues

Consumer
Brands

Media and
Content
Owners

Retailers

Events and
Destinations
17

Thus, the data can be captured & has value,
but we lack an efficient model to generate it

Data
Data Types Data Consumers
Aggregators

Require
mechanism to Local Venues
Geo-awareness
Consumer Brands
Social Graph incentivize data
Media Owners
Context creation
Content Owners
Temporal +
Retailers
Intent Open platform to Events
Path to Discovery encourage Destinations
volume

18

Multiple models are competing as the
standard to generate this data
Game Driven
Active Broadcast Passive Broadcast
Broadcast
Description User actively notifies system Player notifies system of Location notification
upon arriving at a location or location to enhance game secondary to primary
venue play behavior
Example
Companies

Details • Leverages existing social • Check-ins incented by • Location an after-thought of
network leveling-up, unlocking another action
rewards, or earning virtual
• Motivates location discovery currency • Examples primary actions
and sharing include tweeting, texting,
• Other models centered on group chatting, scanning a
• Competitive dynamics tied discovery games and barcode or taking a photo
to location, commonly recreational exploration
rewarding future check-ins

19

Conclusion #1: Location Check-Ins = Clicks
Classic Web Analytics LBS Equivalent

Total Visits per User Total Check-Ins per Customer

Unique Visitors / Pageviews Total New Check-Ins

Returning Visits Repeat Customer Check-Ins

Pageviews by Server Time Check-Ins by Venue Time

Bounce Percentage Sequential Check-Ins with Short Gaps

Upstream / Downstream Sites Sequential Check-Ins at local affiliates

Referrer Check-Ins driven by API or Internal Tips

At critical mass, the physical world check-in becomes as telling as the online click
20

Agenda





21

Data creation starts with virtual incentives but
evolves into robust user engagement

Intangible Content Tangible

• Check-ins • Recommendations • Discounts for
• via location • Customer loyalty
• Points • via social graph • Recommendations
• Social strength
• Virtual goods • Associated content
• Photos • Venue analytics
• Prestige • Videos
• Tweets

Incentives Development

22

LBS consumer value creation cycle… 3 phases

Consumer Phase 1
Phase 2
Phase 3
2 Location Intangible
data / 1 rewards /
3 Eyeballs Content

LBS company

Tactical Influence
benefits Consumer immediate
Improved (coupons, data purchase Strategic
customer service discounts) behavior information
(e.g. more (e.g. consumer
conveniently Value Provider behavior
located stores) patterns)

23

1
Phase 1: User engagement

• Engage end-users through a quality incentive structure
‒ Game mechanics
Description ‒ Social information
‒ Local content

• User engagement (get to inflexion point - first 100k users?)
‒ Understanding of social mechanics
Success Factors ‒ UI and design
• Monitoring quality of content
‒ Editorial quality for reviews, ensuring fairness for check-ins
• Platform (e.g., Foursquare API)

• Check-in aggregators (e.g., SocialGreat)
• Local content aggregators (e.g., Yelp)
Eco-system • Geo-location enablers (e.g., Skyhook Wireless)
opportunities • Plays that leverage Foursquare and other location APIs (e.g.,
LocaModa allows venues to display check-ins on a digital out-of-home
screen, encouraging patrons to visit)

24

2
Phase 2: Provide tangible value to consumers

• Liaise with businesses to provide coupons and discounts based on
user‘s behavior patterns
Description • Hence, influence immediate purchase behavior

• Business Development is key at this stage
• Focus deals on ‗benefit to user base‘ rather than revenue potential for
Success Factors LBS company

• Mobile couponing (e.g., an ad network for Location-based / real-time
coupons and advertising)
Eco-system
opportunities

25

3
Phase 3: The pot of gold in the data hose

• Monetize the data-hose through sophisticated analytics
• Use analytics to drive strategic decisions for businesses
Description ‒ e.g., Where should Starbucks open its next location in
Philadelphia?
‒ e.g., Dynamic pricing based on time and crowd

• Quality and completeness of data generated
• Development of the surrounding ecosystem
Success Factors ‒ e.g., Analytics companies that can mine this data
‒ e.g., API that other companies can user to mine the data hose

• Analytics companies – turn location data into business intelligence
‒ Localytics-like companies could move into this space
Eco-system ‒ e.g., Sell aggregate data about coffee drinkers in Atlanta to Peets
opportunities • Local ad campaign managers (e.g. Hootsuite)

26

3 Phase 3: The Foursquare dashboard for local
businesses is only the tip of the iceberg

Next step is to augment data stream with purchase information (e.g. Blippy)
and provide more aggregated insights to businesses 27

Conclusion # 2: Real, tangible gains for consumers
must follow the initial intangible incentives
1 2 Content and 3 Data hose:
Intangible tangible tangible
value to users benefits to benefits to
users businesses

• Virtual prizes and social • Increasing dependence on • Once a stable consumer
prestige are good for initial super-users for content, incentive ecosystem is
buzz and user engagement recommendations created, businesses can find
• Typical for user- value in the data hose
• Initial buzz, leader board generated content
dynamics lead to the birth of (e.g. YouTube, Blogs) • Use location and behavior
super users, but can be data to drive tangible,
fad-ish. • Super-users need to strategic value for
motivated through businesses through
tangible incentives analytics
• (e.g., rev-share in
YouTube, mayor
discounts on
Foursquare)

Over time, users get fatigued with just intangible incentives
Focus on consumers first, business partners second (Silicon Valley adage)
28

Agenda





29

Above-the-Map landscape dominated by social
network apps, $97M in funding the last 3 years
Firms by Sector VC Funding by Sector (2007-10)
N = 68 (Total: $97M)

Source: Crunchbase directory of applications with ―location-based‖ tag 30

Evaluate against data quality and data creation

Classic New Data
VC Filters Lens Data Quality and Uniqueness Sustainability of Datastream

Team • CTO / Architect • Business development focused on user
• Marketing innovation (e.g., how to engagement
keep users engaged?)
• UI genius

Market • Value of datastreams • User lifetime value analysis
• Potential for business model
(e.g., Commerce, advertising,
subscription)

Marketing Strategy • User acquisition (e.g., viral loop • Early user behavior understanding
features) • User acquisition cost analysis
• Engagement (e.g., check-ins, deals) • Consumption media

Technology • Database management / scalability • Heavy analytics
• Site scalability • Scalable for brand / venue partners

31

Based on our framework, Custom maps and
Gaming are attractive sectors for investigation

# of VC Data Quality / Data
Value of Data Attractiveness?
firms Funding Uniqueness Sustainability

Advertising 3 $0.3

Commerce 11 $1.3

Communication 7 $1.4

Content 9 $23.1

Custom maps 6 $4.0

Gaming 6 $10.3

Platform 11 $18.1

Social network 15 $33.5

32

Why Custom Maps is so interesting
Classic New Data

• Background in custom map • Business development experience with top
development (e.g., Navteq, Google venues
maps, Teleatlas) • Predictive analytics experience
Team
• Smart compass integration
• Clean UI

• Pain point: Google maps and similar • Microcontent enables contextually relevant
services are too broad and offers and advertising
Market
contextually generalized • Strong opportunity for brand enhancement

• Focus on venue niches with long • Large venue tie-ins (e.g., Disneyland
session time (e.g., theme parks, malls, sponsorship ―download the map right now‖)
parking garages) • Big event tie-ins
• Enable quick share download for social • Sporting
Marketing Strategy enhancement (e.g., group trips) • Concerts
• Partnership opportunities with travel • Festivals
sites and tour guide organizations • Conferences

• Computationally easier to control push • Build out venue service for data access and
recommendations and offers given customer activity analysis
Technology limited data set • Scalable map creation
• Allows developers to focus on timed
recommendations and offers
33

Out of the Custom Maps category, Micello
presents a strong fit with our investment thesis
Founding VC
Name Description CEO funding Investors
Mapicurious Mapicurious provides point of interest collection and distribution, custom branded mapping Brad N/A N/A
applications, and georeferencing services. Mapicurious.com is hub of user generated map Gilreath
content.
Micello Bringing the pulse of an indoor location where people gather - shopping mall, convention Ankit N/A Seed
center, hotel/casinos, theme parks, stadiums .. Micello provides a unique platform with an Agarwal
interactive map of the place on your mobile device. There API‘s enable building and delivery
of rich content based on ―What‘s Happening Inside‖ a place of interest.
My City Way My City Way is a location-aware platform that helps discover the world around you - soon to Sonpreet $1M IA Ventures
be available in over 40 cities around the world on a variety of mobile devices. With more than Bhatia FirstMark
50 hyper-local apps rolled into each city-specific guide, My City Way is a one-stop application Capital
platform to discover, interact with, experience and share information in any city. Tailored for NYC EDC
use by local residents and visitors alike, My City Way is an interactive city discovery gateway
on your mobile device.
Primospot Primospot helps navigate the confusing world of urban parking, to quickly find the best place Michael N/A N/A
to park. Hill
The service is unique in that it covers on-street free and metered parking, as well as
commercial garages and even bike racks. In addition to parking locations, Primospot also
knows the rules and regulations, holiday and seasonal changes, and is able to calculate in
real-time how long a car can remain legally parked.
PublicEarth PublicEarth, launched in November 2009, is a free wiki database of and about locations, Michael $3M Polaris
generated and updated by users. On the site, people create and maintain PlaceBook™ Rubin Venture
personal atlases - which organize and manage their personal locations for ease in sharing, Partners
searching, travel planning and activity discovery.
SpotScore SpotScore is a Seattle-based startup looking to make your lives easier and revolutionize the N/A N/A
parking industry through the use of Intelligent Parking.

34

Why Gaming is so interesting
Classic New Data

Team • Ex traditional or social gaming (e.g., • Expertise in building great gameplay
Electronic Arts, Blizzard, Zynga) • Thoughts on expanding to ―normals‖
• Heavy focus on UI and real-time regarding easy gameplay
analytics

Market • Opportunity with ―micro-gaming‖ • Ability to incorporate venues and objects as
concept where session times are context for gaming (e.g., ―Real life Grand
<5min Theft Auto‖)
• Initially drive engagement via virtual • Replace virtual upgrades with actual
goods and social leaderboard products
competition • License for interruptive advertising as long
as in context of the game

Marketing Strategy • Utilize open API‘s of other services to • Location trigger upgrades / virtual goods in
promote game context of gameplay
• Cost per Installation model and • Location trigger game installation and
cross linking sharing
• Sharing with other prominent apps
• Enable team / social dynamics to
assist viral growth

Technology • Expertise in building viral loops • Build out venue service to allow customized
• Heavy data / analytics component upgrades / virtual goods within game
• Clean / robust graphics delivery context
35

Booyah (2M users) and SCVNGR are growing
aggressively but plenty of room for more engaged
experiences
Founding VC
Booyah Booyah, headquartered in Palo Alto, Calif., is dedicated to creating new forms of Keith Lee $9.5 KPCB
entertainment to the masses by bringing together elements of the real world and the
digital world. Booyah is defining a growing new market called Real-World Gaming.
CipherCities Citizens of Cipher Cities love playing games in everyday environments. They use the Deb Polson N/A N/A
web to build mobile adventures that they share with friends and fellow citizens.
Cipher Citizens can be game builders, players or musty lurkers. They can share game
photos, rate games and builders, and revel in the joy of location-based gaming.
Australia based
Geocade Geocade, a social gaming platform for mobile games, enables game developers to Jim Caralis N/A N/A
increase game downloads, enhance game play and create recurring revenue streams
by giving them the ability to create local leaderboards in nearly every city and town
worldwide.
Geolania Geolania is a massive mobile social game that uses geolocation and augmented N/A N/A N/A
reality for a context gaming. It mix strategy, virtual world, LBS and social components
to create a unique mobile gaming experience.
Orbster Orbster is a developer and publisher of location-based games for mobile phones. Georg $0.75M Seed
The company‘s aim is to develop and sell successful games for the growing market in Broxtermann
location-based content for mobile phones. The core of the online and mobile-
integrated game platform allows every player and provider of game ideas to create
location-based games for mobile phones with navigation functions such as GPS
without programming knowledge.
Scvngr SCVNGR is a location based mobile gaming platform that lets anyone, individual or Seth $4.8 Google
institution build awesome location-based interactive mobile games that can be played Priebatsch Ventures
from any cell phone. Highland
Capital
DreamIt
36

Appendix

37

The datacentric approach offers a new approach on
evaluating location based startups for investment
Early stage (Seed, Series A) Late stage (Series B & beyond)

Team • Experience in creating processes around • Smart business development hires
• User acquisition • Engagement via promotions / hard
• User engagement incentives
• Fast analysis / recommendation • Relationships with key brands
• Fast code release background • Product development hires
• Manage mobile cross platform • Experience creating new services
fragmentation? (paid / ad-based) off robust data
Market • Value of datastreams to target verticals • Mix of tactical (coupons) and strategic
Potential • Timing data (new services) which solve pain points
• Venue context for users
• User activity
Marketing (Goto market) (Growth strategy)
Strategy • Clear understanding of initial target • Relationships with technology partners
segment regarding user acquisition
• Lightweight user engagement (check-in) • Easier user interaction
• ―Not annoying‖ game mechanics
Technology • Built on, not within, social media • Cross-database functionality - use LBS
platforms as link to more robust forms of personal
• Zynga vs. Feedtrace data
• Fast, scalable database manipulation • Phone number to credit card
• Ability to scalably introduce real
promotions over virtual goods
38
• Free donut over badge

Advertising overview

Founding VC
Cirius The company‘s flagship product is called AdLocal, which is a location- Gen
Technologies based mobile advertising platform that‘s currently being offered in Japan Miyazawa
USA and the USA (through Cirius USA). AdLocal makes it possible to reach
consumers with ads that take into account the physical location of users
via GPS, Cell-IDs, map coordinates and other information.
Snacksquare Snacksquare is a provider of automated location based advertising via James $0.03M Seed
sms text messages. Based on deep integration with the Foursquare API, Gillmore
Snacksquare facilitates push marketing via SMS txt messages from local
businesses to real people and potential customers at the time and place
they are near to the venue.
Snacksquare allows merchants to create Automated Location Based
Alerts (―ALBA‖) in a similar fashion to building an email marketing
campaign in Constant Contact or Mail Chimp.
Socialbomb Every brand manager wants to build apps that will kickstart conversations Michael Dory $0.24M First Round
across the world‘s Facebook pages, Twitter streams and iPhones. Capital, Rose
Socialbomb helps developers and creatives build those apps. They Tech
provide a single API that communicates with many social networks at
once, so developers can spend their time on the core application instead
of programing for each individual service.
The Socialbomb engine is a RESTful API that lets customers exchange
data dynamically with specific services. They push data to Facebook,
Twitter, YouTube, Flickr and other social networks, and then pull
information back into their customers‘ applications for richer features and
more meaningful analytics. The Socialbomb API can provide detailed
feedback about which content users like, comment on, and share.

39

Commerce overview (1 of 2)
Founding VC
Anttenna Anttenna is a free mobile application that facilitates real-time, location-based, person- Marcus Seed, Moritz
to-person exchanges. By turning traditional classified listings into geo-tagged twitter Wandell Looew
sized microlistings, Anttenna lets you quickly connect, chat in realtime (―Anttweet‖),
and exchange physical goods/services with people nearby.
Chevia Chevia allows users to share knowledge about interesting local products with their Paul Lo $0.1M Seed
friends and relevant communities, powered by a user-generated product catalog and
a discovery engine that lets users locate and discover relevant/related products and
real-time information that are of interest, and explore things around them.
Mobile Flow mobile flow enables the delivery of relevant, timely information to a consumer base Ade
that uses mobile platforms to access product information, make purchasing decisions Bamigboye
and carry out transactions.
Customers can create and deliver coupons or other product purchasing incentives,
publish mobile web sites to support product promotions, enable customers to carry
out transactions whilst on the move, use multi-media messaging and mobile video to
deliver product information that is engaging and viral.
Outalot Outalot is a portable resource for finding nearby restaurants, bars, shops, and Jesse Boyes
movies. Outalot‘s service is available on the web, iPhone, and mobile handsets by
visiting outalot.com.
SkyBlox ScoutMob provides location-aware coupons, offering rapidly-expiring deals on local $0.1M SGIO
food, coffee, and shops, all tailored to your location and city.
ScoutMob‘s mobile application allows the coupons to be delivered directly to the
iPhone without having to print out or download. The app enables users to:
* Store and sort local deals by newest, most popular, nearby, and hurry-you-fool-
it‘s-about-to-expire.
* Get extra incentive from these locations when you make a return visit.
* When you find a deal worth pursuing, pull it up on your screen & show your
friendly server.
40

Commerce overview (2 of 2)
Founding VC
Spreezio Spreezio is a location-based consumer service designed to bring local shoppers, merchants, and sales Todd
reps together through personalized shopping deals. Chipman
Spreezio enables shoppers to make a deal on any product or service. Shoppers can buy what they
want, when they need it, where they are at. They are guaranteed to get the best local deals based on
value. Once they accept a deal, Spreezio lets them tell their friends via social networking sites like
Facebook and Twitter.
VouChaCha VouChaCha is a location based, on-demand mobile application that enables users to pull personalised Ben Brown Seedcamp
vouchers and special offers for retailers within a two minute walk of their current location. For retailers
and leisure venue operators Vouchacha reacts instantly to low capacity or overstock. Enabling them to
send personalised offers to potential customers that are within a two minute walk of their venue. From
initial contact VouChaCha will bring customers to the door of retailers faster than any other type of
advertising.
YOOSE YOOSE is the mobile coupon wallet 2.0. Everything that fills up today‘s consumer‘s wallet will be Christian $0.04M Seed
available on his mobile phone: loyalty cards, coupons, shopping lists, and much more. This provides a Geissendoerf
unique direct access to the consumers for product brands, retailer, transport & travel provider, mobile er
network operators and others. YOOSE is the future of relationship marketing.
Zollpo Wouldn‘t you want to know if there are any exciting new sales around you? Zollpo.com gives you the Idan Bianco
power to find all these sales and more in a click away. Zollpo.com was created in order to give
customers a free access to the ―real world‘s‖ sales. Sales that unless the web, might not have been
visible.
Zollpo.com also connects Small & Medium Business with less marketing tools to their customers. In
Zollpo.com we‘ve developed a search engine to help people find on a static map, all the sales: around
them, around their work place, around their next vacation spot.
eMapia eMapia is a location based marketplace that is designed to make shopping an easy experience. We use Adel
Google Maps technology to enable sellers (businesses or individuals) to add their items and link them to Mohamed
locations they desire, which is normally where the shop or house is located.
Postabon Postabon is a location aware discount platform that allows users to find and share in store deals, Stuart Wall $1.1M Spark
discounts, sales, and coupons. Capital
Postabon uses game like incentives (followers, karma score, etc) to encourage users to be active
members of the community. Its users vote and comment on deals to collaboratively filter the content and
ensure the best deals rise to the top. They also use advanced machine learning algorithms to
recommend the most relevant deals to users based on their location, past usage history, and current
interests. 41

Communication overview
Founding VC
BlockChalk BlockChalk allows users to leave messages at locations in their neighborhood using their mobile
device. Described as ―the voice of your neighborhood,‖ BlockChalk encourages users to leave
notes, or ―chalks,‖ about what‘s going on in a certain location. Users can then reply to other users‘
chalks.
BlockChalk recently (as of Jan 2010) launched both an iPhone app as well as an API for
developers.
Cellflare Location Based web service that allows users to stay visually connected to each other via their
Mobile Devices. Users can view the real time status of their family and friends from any Internet
Browser (Canada based)
GeoGraffiti GeoGraffiti enables the open exchange of location-specific opinions and advice in Voice Mark form Angel
with any phone. Users can virtually ―mark‖ real world places by publishing a Voice Mark message.
A Voice Mark™ is a short voice message captured via phone that shares information (e.g. opinions,
tips, warnings, advice) about a venue, event, promotion, or really anything else one cares to share.
HelloPulse HelloPulse matches you to other people based on the places that you spend time at, and the Jane
activities that you love. We believe that a shared love for a bar, or a park, dog-walking or Thompson
kickboxing, is a great indicator of how two people will connect. It also makes it easy to choose a
location for a date and it makes it fit more naturally into your everyday life.
Miselu Inc. Miselu is a voice sharing and archiving application that allows you to capture those special
moments, create comments, leave thoughts, comment on photos and more. Share your voice on
Miselu or through your social networks, blogs and email. Listen to others, follow their updates or
listen to those special moments from the past. A new paradigm in communicating via voice, Miselu
brings you a new dimension to networking.
ShortGPS Shortgps is providing an easy tool to communicate a location. With shortgps.com you can create a Andreas
location on a map and after setup the zoom scale or hybrid mode, you can add an external link. Ebert
After this, you will get a short URL to use it in Tweets or any other kind of messages where you will
tell ―where‖.
Hot potato Hot Potato connects friends and fans around live events. Justin $1.42M First Round
We‘re building tools for real-time social collaboration amongst groups who share an interest in any Shaffer Capital
event or experience as it‘s happening. RRE Ventures
Whether checking in, recording your perspective, or just enjoying others contributions, it‘s more fun Scott Banister
to participate in events with Hot Potato.
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Content overview (1 of 2)
Name Description Founding VC Investors
CEO funding
Inphodrive Interactive mobile platform for behind the wheel; stay online while driving Mark Heifets
NAVX NAVX sources, aggregates and distributes geolocalized content that can be used in GPS Jean
and, more generally, in any location-aware device. Cherbonnier
The portfolio of content includes gas prices, speedcam locations, parking spaces, wifi
hotspots, restaurants, bars, etc.
To companies, NAVX provides content that enhances their offering and allows them to
generate additional revenues through subscriptions. The content is particularly useful in
―connected devices‖ able to send and receive dynamic and relevant information through
wireless connections. NAVX has established relations with TomTom, Garmin, Mio,
Magellan, TeleAtlas, Orange and other significant players of the Navigation Industry.
Pegshot Pegshot is a mobile video/photo service used to efficiently share location-based media with Phil Thomas
friends and family. DiGiulio
Pegshot is based in Boulder, CO and New York City and is a spinoff of a company widely
known in the local video space called WellcomeMat.com. Founders are Phil Thomas
DiGiulio, David Overcash and Christian Sterner.
Tagcrumbs Tagcrumbs is building the infrastructure for user-generated and editorial location-based Sascha
content on mobile devices and the web. Konietzke
Tagcrumbs helps people to easily remember places and share their favorites with their
friends and the world, using mobile applications and the web. Exciting locations to dive,
climb, surf or fish, stunning viewpoints or sublime architecture and great hangouts like
restaurants, bars and cafés can all be found here.
Taggstr Taggstr enables you to make your world more ―taggable‖ and leave your own marks on Alamgir $0.05M SVASE/Cambridg
places around the world. Mand e West Ventures
By allowing you to leave ―taggs‖ wherever you go, Taggstr enables you to leave your own
little marks. Not only is Taggstr a tagging platform, but it allows you to easily find interesting
places around you.
Foodspotting Foodspotting is a visual local guide that lets you find dishes instead of just restaurants. It‘s Alexa Dan Martell (seed)
powered by Foodspotters, who can share their food photos and expertise while building a Andrzejewski
visual collection of foods and where to find them.

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Location-based services and startups: Trends, observations and investment themes

Location-based services and startups: Trends, observations and investment themes

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