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End-of-year reflections

New_Years_Toast I was going to do an industry retrospective on 2008 along with predictions for 2009, but then I looked around at some other bloggers and saw that some really great pieces had already been written. So rather than do my own, let me point you to some great posts:

Jon Arnold wrote VoIP in 2008 - “I’m Not Dead”

Traditional landline VoIP was a good place to start, but in 2009, VoIP will be more about voice services than telephony…  more about voice-based or voice-enabled applications that make the voice experience more interesting. In some cases it will be about making calls less expensive, but for the most part it will be about doing new things or old things in new ways.

He goes on to list 10 innovative start-ups and I’m pleased to say that Fonolo was included (actually top of the list, but I’m not going to read anything into that.)

Andy Abramson posted some commentary on Jon’s post here.

Garrett Smith has been putting up an excellent series of posts, asking a standard set of questions to interesting people in the industry. So far, he has posted answers from Nick Galea (3CX), Rafael Fonseca (Cedar Point Communications), Steve Wong (Clearsight Networks), David Schenkel (Objectworld), Dan Hoffman (M5), Peter Diedrich (Mobivox), Mike Oeth (Junction Networks), Irv Shapiro (IfByPhone), Ari Rabban (Phone.com), Alec Saunders (Iotum) and Andy Abramson (Comunicano). I’ve just submitted my answers, so hopefully I’m not too late to be included. You can see the whole series here. [CORRECTION: You can read my interview here.]

Springwise posted “This year’s top 10 telecom & mobile ideas” and I was pleasantly surprised that Fonolo was included. (We’re listed as number 1, but once again I’m not going to read anything into that.)

Finally, Robert Poe wrote an excellent piece titled “The Top 25 VoIP Innovations of 2008“. I’ll take an excerpt from that post as the closing note for my closing post of the year:

The VoIP industry, like most others, felt the impact of the 2008 economic crisis. Promising startups laid off employees. Some even shut down. But VoIP companies had an advantage many others didn’t: their capacity for intense innovation. That ability let them provide products and services that could help struggling businesses of all sorts, and even individuals, save money and work in new and better ways… It’s no surprise, then, that the level of VoIP innovation remained as high this year as in 2007.

I expect no less from 2009! Happy new year everyone!

Disclaimer: Andy and Jon are advisors to Fonolo.

From Canadian VCs… a pulse!

Last Tuesday I was at a local Toronto event called CEO Fusion, run by Bryan Watson, who is also director of the National Angel Capital Organization. He started the evening by saying to the crowd that traditional venture capital in Toronto is effectively gone. So the mood among entrepeneurs in the room was pretty gloomy. In fact, the main theme of the evening was “how to survive with less capital”.

Well, yesterday Mark (”StartupCFO”) MacLeod sounded a bright note by posting news about a couple recent VC deals in Canada.

1) Tech Capital Partners invested in PostRank (formerly AideRSS), a tool from bloggers to understand the traffic in and out of their blogs. They just released an update today that won praise from ReadWriteWeb: “We love … PostRank … but today [it’s] really outdone itself with the release of a powerful and eye catching new widget to display your blog’s hottest posts”. [More] I haven’t tried PostRank yet (I’ve been neglecting the ole’ blog a bit) … maybe in the new year.

2) RHO Canada and Growthworks joined JLA as investors in Netshelter, putting together an $11m round. Netshelter is a “vertical media network”, which means they own a collection of niche websites/blogs that add up to a lot of well-segmented traffic. Their site claims they “recently passed CNET to become the #1 Tech property online according to comScore”. Scanning through their list of properties there are indeed a few names I recognize, but I have to say it’s surprising that a company I’ve never heard of has this kind of reach.

3) Overlay.tv just raised $4.6 from Edgestone, Tech Capital Partners  and Celtic House. Wired calls them “VH1’s Pop-up video mashed together with the shopping network.”

That’s the good news. The bad news is that all of these are later stage or follow-on rounds. No new deals.

Following Mark’s post, I had a Twitter thread with him and old friend Jim “JPWP” Parsons:

2008-12-17_170701

I’ve heard several people say things ike “we need a restart on VC” or that the “VC model is broken”. But I haven’t really heard how it can be done differently.

For a different perspective, read this excellent post from Allan Leinwand, a Bay Area VC that I met last year: Counterpoint: It’s Time for Venture Capital – Now More Than Ever.

Bryan Watson just got back to me on this, adding some data to quantify the trend (emphasis mine):

There are, with a few notable exceptions like Growthworks, XPV, Avrio Ventures, TechCapital Partners, etc., virtually no VCs left in the early-stage space in Ontario. The Canadian Venture Capital Association released a report on November 18th citing that, from across Canada, Ontario experienced one of the most substantial declines in VC activity in Q3 2008. A total of $163 million was invested in 36 companies in the province, or 43% less than the $283 million of Q3 2007. I suspect most of this was later-stage follow-on investment into existing portfolio companies, not new investment in early-stage companies. Thank goodness for Angels!

Thank goodness indeed. Without them, start-ups like Fonolo and many others simply wouldn’t exist in Canada.

Fonolo Opens to the Public

image Yesterday, we announced that Fonolo is now in open beta testing. This is a big milestone for the company. It was met with great applause from the press, and great enthusiasm from the general public.

Here’s the press release:
Fonolo Gives Consumers Relief from Phone-Menu Frustration for More Than 300 North American Companies

The significance

One of the key challenges for any web service (whether it’s Google or Facebook or CNN) is its ability to "scale". That is, does it work as well when a million people use it, as it does when ten people use it? Today, we are sufficiently confident in the infrastructure we’ve built to give up that control and open our doors to the public. By announcing free, unlimited calling, we’ve said "Yes, Fonolo can handle full scale calling".

But Fonolo actually has two scaling challenges. The first is handling large call volume, as described above. The second is being able to scale up our database of companies. The foundation of Fonolo is our "spidering" that maps out the phone menus. It goes without saying that Fonolo is not going useful to you if the company you want to call is not in our index. By announcing that over 300 companies are available on Fonolo, we’ve said "Yes, our database is big enough to be useful to the general public."

The response

CNet:
"[Fonolo] lets you browse company phone trees and dial straight to that section, skipping having to sit through tedious voice menus or remember specific buttons to press. Better yet, it does it all without you having to actually dial the number on your phone."
Fonolo’s easy deep dial service opens up

Skype Journal:
"we all love to navigate our way through those pesky…  phone trees that go through menu after menu to connect you directly to an appropriate destination service or person. NOT!"
Fonolo Takes Its "Deep Dialing" Into Full Public Beta

Lifehacker Blog:
"Pick a company, browse their phone directory tree by title and automated dialog, choose where you want to jump in, and Fonolo calls you with a direct connection there… auto-dial jujitsu."
Fonolo Cuts Through Corporate Voicemail Trees


Crunchies

Oh, and one last thing: Please vote for Fonolo in the Crunchie awards. It’s dead simple. There’s no form to fill out. Just click here and then click "Nominate". Today’s the last day for votes, so please do it before midnight.

EComm Conf 2009 open for registration

Ecomm badgeI just received a note from organizer Lee Dryburgh that registration is now open for the 2009 Emerging Communication Conference (”EComm”). Lee’s been generous enough to extend a special discount to loyal readers of my blog: Use promotional code “Fonolo” for 20% off!

EComm is fast becoming the primary forum for innovation in the telecom space. I think there are two factors that make this conference such a dynamic event.

First is the format: Everybody in one room, 15 minutes per speaker, strictly enforced. I’ve never liked the old “trade show” format, where there are multiple “tracks” filled with hour-long “panel discussions” and you find yourself wandering from room to room, looking for something interesting.  Lee’s format is much better suited to our modern day attention micro-span.

Second is that the speaker list is a well balanced mix. It’s got big name incumbents (Sprint, Nokia, BT, T-Mobile), established disruptors (Skype, Digium, Voxeo), disruptors-in-progress (PhoneTag, IfByPhone, Iotum) and big picture thinkers (Martin Geddes, Dean Bubley, Alan Quayle).

You may recall that at last year’s EComm, we unveiled Fonolo for the first time, and won “Best New Product”. (Video of that presentation is here.) Lee has given me a speaking slot once again and we’re going to use the opportunity for another juicy announcement, so I hope to see many of you there.

Fonolo Featured at Telco 2.0

Telco 2.0 LogoMartin Geddes, Chief Analyst of STL Partners,  is one of the most respected analysts in telecom. STL’s annual “Telco 2.0 Executive Brainstorm” is a must-attend event for the world’s top telecom execs in the world. This year, I was honored to have Martin feature Fonolo in his keynote speech, which is summarized in this post: Voice telephony: death or glory?

An excerpt:

“[Martin’s] thesis is a simple one: telcos have consistently abandoned their core product, and are ignoring new business models, whilst pursuing a fools’ gold in media content. The old model — charging users for software services that have no marginal cost or barriers to entry — is dying. To illustrate future business models he gave three examples of how money could be made in future…

The first of these was… Fonolo [which] exquisitely demonstrates that the value is in integration of telephony and the Web, as well as moving from the call itself to the set-up of the interaction.

… [but] who benefits more: the consumer, or the call centre? We think that it’s the latter, and the consumer is the price-sensitive side. The call centre wants the maximum rate of self-care, high customer satisfaction, and the web site offers the ability to do all kinds of enhanced multi-modal interactions that a 0-9*# keypad can’t do well… Therefore in our two-sided market world, we’d get telcos to distribute and promote this tool (on their fixed, mobile and on-device portals). They would then sell these enhanced capabilities to call centres.”

As part of the presentation, Martin showed a short video I made for him that discusses how Fonolo can work with carriers:

Fonolo Named to the "Fierce 15"

imageI’m a bit slow to post this news, but better late than never: Fonolo was picked by FierceVoIP as one of the "Fierce 15" companies for 2008.

The award recognizes "creativity and innovation in the marketplace."

Here’s an excerpt:

"[Fonolo] seems to have the right combination of founders, open technology, and ‘Why didn’t I think of that?’ features… Deep Dialing allows people to skip through IVR phone menus (also known as "Phone hell") of large companies and navigate to the information/place they require… There’s also an intelligent call history service — just the thing when dealing with crappy customer service — to automatic track calls made to a given company complete with recordings and user notes, regardless of the phone used."

They close by saying: "Is there enough here for a sustainable business model? Good question but regardless, Fonolo has broken out of the drab set of me-too VoIP apps over the past year."

Yes, that’s a good question. Short answer: Yes! Long answer: Stay tuned for some interesting announcements in the new year. 

The rest of the Fierce15 is listed here.

Our press release is here.

Fonolo unveils iPhone App, wins "Judges’ Choice" at GigaOm’s Mobilize

iphone-app First the big news - Yes, we have an iPhone app!

The Fonolo iPhone application lets you search our database of companies, navigate their phone menus and deep dial, all from your iPhone. (Deep dialing means you skip the phone menu and connect directly to the point you want.)

To make the call, you just tap the spot on the menu that you want. Fonolo then makes the call to the company, navigates to their menu, and calls you back.  When you answer, Fonolo connects your call to the company.

Good things about Fonolo-on-iPhone:

1) It feels natural: The navigation is “iPhone style”. That is, you navigate a phone menu the same way you navigate your music library artist-to-album-to-song. I believe you’ll find yourself thinking “Of course this is how phone menus should work on my iPhone”.

2) One less step: Unlike Fonolo-on-the-web, we don’t need to prompt you for a phone number since we know you are on your iPhone.

3) Smooth integration with the calling process: When the call you’ve requested comes in, the iPhone switches to “phone mode” letting you talk and use the keypad normally. When you end the call, iPhone takes you back to the Fonolo app where you left off.

Bad things about Fonolo-on-iPhone:

1) It’s not on App Store yet.

Sadly, we are in the same boat as many other iPhone developers in being at the mercy of Apple’s review process. There’s already been lots of complaining about that process, but I’m not going to jump on that bandwagon because I think there’s merit in their approach. The trade-off for a slow review process is that approved applications will be “well behaved”. That in turn leads to confidence among users that it is safe to experiment with different applications and that, in my opinion, is worth the price we’re paying as developers. I have my fingers crossed that we will be on the App Store quickly.

Winning at Mobilize
We were very lucky to unveil our application at the Mobilize conference, put on for the first time by the talented folks at GigaOm. I hope Mobilize becomes a regular event because I found it to be an excellent show: Top notch speakers and panels; A very savvy crowd which was a good mix of start-ups, big industry and VC; plus a beautiful venue (UCSF’s Mission Bay Center).

My favorite part of the show was the Launchpad event in which we participated and ultimately won. Here’s the video which includes a demonstration of Fonolo on the iPhone:

The judges for the event:

  • Ryan Block, Editor, GDGT.com
  • Tim Chang, Principal, Norwest Venture Partners
  • Nagraj Kashyap, Sr. Director, Qualcomm Ventures
  • James Kendrick, jkOnTheRun

image

After the presentation, judges get a minute to make comments à la American Idle. I can’t really remember that part, because it was all a blur, but according to GigaOm’s coverage:

Kashyap said: “I love the app, this is the first thing I’m going to do when I get home.”  and Block said: “I want to give that guy a hug.”

Wow! Thanks.

Some additional coverage

TechCrunch: Fonolo Joins The Growing Arsenal Against Phone Tree Hell
Top iPhone News: Fonolo for iPhone makes navigating phone menus a snap
iPhone Buzz: Fonolo for iPhone makes navigating phone menus a snap
Mobile Syrup: Fonolo wins Judges’ Prize at Mobilize 2008
Jon Arnold: Fonolo - Top Pick by Judges at Mobilize

Fonolo on CBC last week, ITExpo and Mobilize next week

Well I’m back from a brief blogging break. (Those of you who know me know the good reason why!)

image A couple weeks ago I did an interview with CBC’s Nora Young, for her show, "Spark". It was aired last week and you can catch the podcast here

 

imageNext week I’ll be on the west coast to present at two conferences. First, will be ITExpo, in Los Angeles. Conference organizer Rich Tehrani has a post here with a preview of the show and links to audio interviews he’s conducted with many of the presenters.

 

image Second is GigaOm’s Mobilize conference in San Francisco. This is the first year Mobilize is running but given the caliber of the people running it, I’m sure it will be a great event. Fonolo was selected as one of 13 companies for their "Launchpad". We’ll have a pretty exciting announcement there so stay tuned.

Fonolo announces API and SIP support

I am attending the Clue Con Telephony Developer Conference in Chicago today and tomorrow. This is a great show for getting into the technical nitty-gritty of emerging telephony technology. Tomorrow, I will be giving a presentation here on 3 exciting new developments with Fonolo …

1) An API

It has always been on our roadmap to release an API (application programming interface) for Fonolo. We decided to accelerate its release in order to capitalize on the excitement and interest that Fonolo has generated in the community, in particular with carriers and mobile developers.

Today’s release is focused on Deep Dialing. It exposes functionality that lets you
•    Search Fonolo’s directory of companies;
•    Display the full text of the phone menu for a selected company;
•    Initiate a Deep Dial process to any node in the phone menu;

(If you’re wondering what Deep Dialing is, read this.)

2) A developer program

To go along with the API, we announced a developer program. Because the API allows you to place phone calls, we have to put some safeguards around its use. So we set up a form at developer.fonolo.com that lets you request a developer account. Each account has a unique key that will help us track usage.

3) SIP support

We now allow you to route calls to any SIP address, as well as any North American PSTN number. At the moment, SIP routing is only available through the API, not the web interface.

 

The API does not include access to any account-based info such as call history, call recordings, personal bookmarks or call notes. That’s coming in a later release. (For technically minded, the API is based on JSON-RPC requests over HTTPS.)

You can read the full press release here.

Shai on Squawk Box tomorrow

I’ll be interviewed tomorrow by Alec Saunders on Squawk Box at 11am Eastern time.

Squawk Box is a call-in show hosted on Facebook and powered by Calliflower. If you’ve never attended a Squawk Box session before, it’s really easy to tune in and they have a very friendly approach to participating: You can either write your question on the “wall” or you can raise your hand and ask your question through the microphone.

If you’re on Facebook, just click here and join.

UPDATE: You can hear a recording of the show here.


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Fonolo is hiring

We need web developers and C++ developers. VoIP experience a plus. Being near Toronto also a plus. Write to jobs @ foncloud dot com.