Startup Camp and Sun Startup Essentials


Sun MicrosystemsWho happens to be in San Francisco today? Sun is hosting Startup Camp on May 4-5, 2008.

Straight from Sue of Heavy Bag Media for Sun Microsystems:

Startup Camp in San Francisco… allow startups to participate in an un-conference networking event to hear from some web 2.0 authorities, meet other startups and apply to Sun’s Startup Essentials Program. The event also includes SpeedGeeking, where startup founders can compete in the Best Startup Contest by presenting a 5-minute pitch of their business to VC led groups of peers. Confirmed guests include: Pete Cashmore, Jonathan Schwartz, David Berlind, Om Malik, Matt Marshall etc. This event is a great way for startups to network and discuss ideas.

Keep track of upcoming trends with new startups across the globe with the mashup between Mashable and Sun Startup Essentials with their Startup Review. (Sorry, I’ve just been wanting to say to say “mashup”.)
We can read the reviews but can’t “join” or request for a review for our apps just yet. The Philippines isn’t listed right now, but that could change soon!


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User experience is paramount in designing web applications


User experience and your web application — is it really part of your mission and vision? Mark Hurst of Good Experience recognizes companies that “do it right” through the 2008 Copernican Awards — i.e. who takes care of the customer?

Popular web applications have made it to the final round, including Facebook, Fresh Direct, kayak, and Survey Monkey.

Startups developing their applications should definitely follow their example. Don’t be like those companies that “invest” in template-from-1999 websites and can hardly be bothered (or don’t know how to) to see if their links actually work or if their font is even readable.

You take into account user experience in your version 1… and all the versions thereafter. Not everyone can afford a dedicated UX team or a usability lab but there are workarounds. From an alpha version, followed by iterations. These iterations are then triggered the continuous feedback systems set in place from the start.

There’s feedback directly given to the development team which can be coursed through ticket systems, user forums, contact forms and email messages (tip: use IMAP so you can sync across different team members and prepare template responses), CRMs, phone reps.

Then there’s the tracking of actual on-the-ground user-session data — and understanding that mass of data.

To track user behavior is essential to making any software effective — if the software vendor were really dedicated to serving his customer and not just out to make a buck.

Brick-and-mortar companies like consumer goods or fashion apparel get their user feedback only through indirect methods. They sit down with focus groups, ask survey questions, hire mystery shoppers, or place a customer service hotline on their product. Their end-user has to exert actual effort. They have to rely on samples as opposed to 100% of their user base.

We’re quite lucky that web applications can log user behavior more religiously — even track all of it. Marketers, developers, and business owners are capable of understanding their users through visual representations with adorable names like heatmaps and confetti.

What startup web applications, live right now, from the Philippines can you say truly takes into consideration UX? If you track user behavior, what tools do you use?


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Mobile Meets Meebo in Chikka 2.0


Chikka 2.0 Web Messenger

Chikka 2.0Chikka has reinvented its Messenger application and it looks like the mobile applications giant is riding the 2.0 wave. The Chikka application meshes the offerings of competing one-stop instant messaging websites Wablet, Meebo, and e-Buddy with its mobile prowess. Let’s dive into the Chikka 2.0 experience and get an insider’s view from the Chikka Business Development Team.

Multiple IM login interface

The multiple IM logins on top of the hompage are enticing… until you realize that you actually have to use a Chikka ID to use the app. So for those who don’t have Chikka accounts, you have to either sign up for a free PC account (not connected to your mobile) or send a P2.50 (usual rate) registration message. Relatively painless. Some users would rather not have to sign up for a Chikka account though, partly for fear of being spammed. When you use other IM apps like Meebo, you can just go ahead and login to your Yahoo! or GTalk.

Chikka 2.0 Login interface

I consulted some designers and programmers and got some points for improvement. The icons on the homepage were clean and layout was okay to use, but the orange was less than easy on the eyes. I understand that’s part of the branding, but hey, you can’t rationalize designers’ comments.

If Chikka is targeting Filipino Meebo users, it has to give something more to convert. Perhaps something like IMified or Sandy the Personal Assistant that integrates the web with productivity or reminders with optional and minimal charges, if any.

What’s good is you no longer have to download extra software or have an extra pop-up to use Chikka. With their web-based interface, Mac people can easily send Chikka IMs.

Inside the Chikka 2.0 Web Messenger

Competition with IM applications

Right now, I don’t actually use Chikka yet for the multiple IM login though. Adium is convenient for that. Perhaps people in the office behind their cubicles and firewalls can maximize this feature that makes Chikka 2.0, well, 2.0.

I asked the Chikka Business Development Team, headed by Mr. Gio Bacareza how they view these other online IM applications. Is their approach a blue ocean strategy in-the-making?

“Our ultimate targets are all web users and mobile subscribers. While we have successfully grown a community of Filipino users here and abroad, adding in the other IM networks will further expand our beachhead as we aim to extend our reach to the mainstream users. By focusing on the convergence of the PC and mobile, as against others who are either purely PC-based or mobile-based businesses, we are in a way changing the landscape. So in that sense, it could be a blue ocean strategy. We just didn’t label it as such. It just made sense for us to use our expertise in the mobile and integrate that with the real estate and more interactive features of the PC.”

“The presence of these major players (e.g. Meebo, e-Buddy, Wablet) in the space we’re in validates our view that it’s a good business to be in. The only thing that differentiates us from these guys is that they are purly web-based services primarily. This limits their revenue models to essentially advertising. Chikka is primarily in the PC-to-mobile business which gives us not only differentiation but also gives us wider range of choices for revenue sources.”

How to Make Money from your Web App

When asked how Chikka intends to make money from the new Chikka app, Gio shares, “… being on the point of convergence of the net and mobile, we can apply revenue models that are accepted by the market. For the web, we have ad based and subscription revenues. For mobile, we have the subscription and per message fees.”

As always with the Chikka app, the caveat is the P2.50 fee charged to the person who replies to your text sent from Chikka. I feel so cheated when I hit send and afterwards realize that it was sent to a +2776391x-xxx-xxxx. I’m not alone on this sentiment. There has to be another revenue model that feels welcome to all users. Perhaps a minimal monthly subscription could be less intrusive and entirely optional, much like Airborne Access’ P199/mo promoted through an initial P99/mo to Smart or PLDT subscribers.

The Making of Chikka 2.0

Chikka 2.0 began as an AJAX experiment in the R&D labs of Chikka as early as 2 years ago. They developed their software, moving their desktop client (the old Chikka) to the web. The alpha was launched last December, the beta in March; target launch is late April. “It will be in continuous beta, meaning we will be continuously adding new services and features and making continuous improvements.”

Try for yourself the all-new Chikka.

Disclosure: JP Dela Torre, Co-Developer of Pinoy Web Startup, used to be associated with Bidshot Wireless, a subsidiary of Chikka Asia. He did minimal R&D on the Chikka 2.0 application.


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Online Bookkeeping Solution for the Philippines


Last March, a private company started developing an online bookkeeping solution to do away with painful BIR forms. The site uses extensive Javascript and PHP. This is 100% online and covers the whole bookkeeping process. That means everything from recording cash in, cash out, paying bills, salaries, and printing BIR-compliant invoices. Still in testing phase, I’ll tell you more when the developers are ready to divulge more information.
Think of this new online bookkeeping software as Quickbooks Online for the Philippines. It will have a similar monthly subscription model. The cash outlay is going to be much much less than hiring a full-time accountant.
I’m sure a lot of users would appreciate a free account just to try out the system before they invest too much in migrating all their information.
I’m giving this a shot especially since I tried talking to Quickbooks and MYOB US and their Philippine distributor Mustard Seed. They can’t give me accounting software for Mac, so it’s back to the spreadsheets.
Windows users can take a look at the Payroll System of Sieg Web Solutions.
There are also other providers for payroll processing (only one facet of the bookkeeping cycle) such as suweldo.net (Ledgea Systems) and Payroll Pilipinas. These two can complement your already existing accounting/bookkeeping system. I previously tinkered with suweldo.net but couldn’t actually finish the payroll. Tell me if you’re able to work it.


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Google App Engine takes off


Google App EngineGoogle just issued a preview release of Google App Engine. Limited to the first 10,000 developers (sorry, waiting list), Google App Engine radically shortens the time from coding your web application to deployment.

Google App Engine was designed to be easy to use, easy to scale, and free to get started. It addresses some of the daunting issues web startups face, particularly hosting/storage, scalability, and maintenance. Currently available for Python only, the SDK seems to be comprehensible to “outsiders” as well.

To know more:

Google’s vision for App Engine sounds like a dream come true for web startups. Then again, Amazon AWS has been pretty popular along with other grid services for web apps on the rise too. Implications?


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Highlights on the first day of Morph Code


Last Saturday, March 29, aspiring Pinoy techneprenuers gathered at the Institute of Social Order building in Ateneo de Manila University to participate in the first day of Morph Code, a Software as Service (SaaS) workshop and business idea competition, initiated by Morph Labs, a Cebu-based Philippine software company.

The first day of the bootcamp included talks from some of the best veterans in the field, including Federico Gonzales, president and CEO of Philippine Emerging Startups Open, Inc. (PESO), and David Abramowski, CEO of Morph Labs. Each expert gave his own take on the status of technology entrepreneurship in the Philippines, and also provided clever advice on how to break into the global market.

Commissioner Tim Diaz de Rivera of the Commission on Information and Communications Technology also joined the event. He remarked on the need of the Philippines for the immediate availability of the Internet and broadband connections, even alluding to the controversial ZTE-NBN deal as a proof of this.

The second day of the event will be held this Saturday, April 5, with a focus on “Stand and Deliver” Elevator Pitches. Each team will be asked to present a pitch of their business concept, followed by a few minutes of Q&A. The concluding event will feature the final presentations from the participants. Awards will be given to the team with the best SaaS business idea and plan.

For more updates on the bootcamp, check the blog. http://blogs.inquirer.net/morph


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Sulit Pay Merchant Account for the Philippines


SulitSulit Buy and Sell Classifieds released yesterday its revolutionary online payment system. The Sulit Pay Debit Card merges the benefits of Paypal, G-cash/Smart Money, merchant accounts, and traditional banking with just one login.

Incredible features are as follows:

  • Fully integrated to all major banks and a number of rural banks nationwide
  • Pay and withdraw using your ATM card (Megalink and BancNet)
  • Accept payments from major credit cards (Visa, MasterCard)
  • Make payments or withdraw from your account using your cellphone through G-Cash or Smart Money
  • Over-the-phone transactions using our patented voice recognition application for secure payments

With the massive economies of scale of the Sulit Community, Sulit Pay beat even the giants BPI/BDO/Metrobank and even Globe, Smart, and Paypal with the lowest transfer fees and most value-added services:

  • very low fees of Php 1.00 or .5% of the total transaction whichever is higher
  • Door-to-door delivery of your money for only Php 10.00 or 1% of amount whichever is higher (minimum amount of Php 500.00)
  • 2.25 hours guaranteed transfer time to your bank, G-Cash or Smart Money account
  • no credit card chargebacks
  • payments are insured up to Php 100,000.00
  • money left in account can earn up to 3.5% interest per annum (interest applied monthly)
  • fully integrated with Sulit Currency

Unbelievable work, Team Sulit! This is the most innovative online payment processor in the market. This brings the Philippines light years ahead in the global merchant account industry.

Register for your Sulit Pay account now.


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Great news from the company behind Pinoy Web Startup


Pigmata MediaPigmata Media, the company behind Pinoy Web Startup, just completed its first round of funding. Pigmata isn’t disclosing exact details just yet but a new office and a new web application are in the works.

More details at the Pigmata blog.


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AO Capital Closes US$ 1.5 M Pre-IPO Round for Morph Labs


Morph Labs(Manila, Philippines, March 31, 2008) — AO Capital Partners Ltd. (AO Capital) today announced the close of a US$ 1.5 million pre-IPO investment in Morph Labs, the leading enabler of Software as a Service (SaaS) that leverages virtual infrastructure and open source technologies based in Cebu City,Philippines. As lead investor, AO Capital has brought in CSK Venture Capital Co. Ltd., the venture capital arm of Japan-based CSK Group.

“Venture investing is about investing in people and partners. Together with Winston Damarillo and his world class management team’s outstanding track record, most of whom are returnees from the previous companies he had founded and sold, we believe we have found in Morph Labs a company that is poised for market leadership in a rapidly growing market segment. We are absolutely excited about Morph Labs’ prospects,” said Martin Lichauco, Managing Director of AO Capital and former Country Manager of global venture capital firm, Walden International. Lichauco continued, “This investment also represents AO Capital’s commitment to technology entrepreneurship value creation in the Philippines.”

Morph Labs was founded by serial entrepreneur Winston Damarillo. Damarillo is best-known for founding Gluecode Software, a company purchased in 2005 by IBM, and integrated into its Websphere application server. Another company, LogicBlaze, was acquired by Iona last year. Damarillo is also the founder of Exist Global, a software services company named to the Red Herring 100 Asia in 2006. The successful software products offered by these companies were developed in the Philippines.

“As lead investor, AO Capital is pleased to report that the pre-IPO round is oversubscribed. While we were prepared to fund the entire round, we found in CSK-VC, a strategic co-investor that can provide vast industry knowledge and deep operating experience to Morph Labs. This is consistent with AO Capital’s investment philosophy which has always been a value-added investment approach. CSK Venture Capital has an excellent track record in transforming early stage companies into industry leaders,” Lichauco added.

Morph Labs recently launched the Morph AppSpace, an innovative on-demand Platform as a Service (PaaS) that provides developers with a complete solution for the deployment, delivery, and ongoing management of web applications in an enterprise-quality setting. Available at www.morphexchange.com, the Morph AppSpace frees developers and independent software vendors from expensive and time-consuming system administration and maintenance tasks.

According to a report by RBC Capital markets, the SaaS industry is in the midst of a five-year period of 43 percent average annual compound growth. It is expected to capture a 23 percent share of the $120 billion US software market by 2010. “Although it is quite early in the evolution of SaaS, we believe this business model is more stable and sustainable than the traditional enterprise software model, which makes it significantly more attractive for Investors,” said RBC Capital Markets equity analyst Brad Whitt.

“Impressive growth, predictable revenue streams, scalable sales models and strong margins and cash flows are reasons why investors should consider investing in the SaaS market opportunity,” Whitt said.

Lichauco said, “Morph Labs has created a unique solution to a market need in the rapidly expanding SaaS industry,” noting that SaaS is forecast to generate almost $28 billion in revenue by 2010.

According to Lichauco, who recently joined the Board of Directors of Morph Labs, the company’s planned initial public offering (IPO) on the Philippine Stock Exchange in the second quarter of 2008 will push through.

About AO Capital Partners Ltd.
AO Capital Partners Ltd. is a member-company of the American Orient Capital Partners Group (”AOCP Group”). The AOCP Group provides high value added advisory services for the private placement of debt and equity capital, corporate restructuring, mergers & acquisition, and project finance.

In addition, the AOCP Group is involved in managing private equity funds for investments in Asian-based companies and has been involved as an advisor and/or investor in over 100 major transactions valued in excess of US$10 billion in Asia. The senior management team of the AOCP Group has over 120 years of cumulative professional experience throughout the region. Along with its head office in Hong Kong, the AOCP Group maintains full service offices in the Philippines, Singapore, and in India.

About Morph Labs
Morph Labs is the leading enabler of Software as a Service (SaaS) that leverages virtual infrastructure and open source technologies to simplify the deployment, delivery, and management of web based applications.

Morph Labs uses virtual infrastructures including Amazon Web Services to provide a truly elastic environment for web applications that can be instantly provisioned and seamlessly scaled.

Morph Labs is a global company with headquarters in Cebu City, Philippines with additional in-country operations in Manila along with Los Angeles, California and Austin, Texas in the U.S.A.


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3 more days till Morph Code


Good ideas will be given life on March 29 at the Morph Code event organized by Morph Labs (sponsored by Ayala Foundation, PESO, INQ.net and Team Asia).

Teams, aspiring techpreneurs have been given an extension to rally up their pitches since our first announcement.

Block your calendars now.
Venue: The Institute of Social Order - Ateneo de Manila University

  • Day 1: Workshop on March 29, 2008 8am-4pm
  • Day 2: Stand and Deliver Elevator Pitches on April 4, 2008 1-6pm
  • Day 3: Final Presentations and Awards on May 3, 2008 8-3pm

Interested to know more? Visit Morph Code

On a personal note: My sincerest apologies for the slow updates these past couple of weeks. It’s been hectic at Pigmata HQ and, honestly, doing my mind sweep and transitioning to the GTD framework (mind sweep and all) takes a lot more time than expected.
But great news! We have a new member on board (she just started today) who’ll be writing some great reviews and articles and keeping things smooth around the office. We’ll tell you all about Ms. K.P. tomorrow.


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