July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

We all possess a reservoir of unique knowledge and skills, but this expertise does not always pay off. Rewarder, a company that matches people with specific needs with people eager to meet them, launched a mobile app today to keep people fulfilled on-the-go.

Rewarder is a social marketplace where people can solicit advice, expertise, and resources from the community it exchange for rewards. It takes a unique approach to the shared economy by offering a peer-to-peer marketplace for knowledge, rather than products or services. People can offer $50 for a travel itinerary, or $1000 to locate a rare collectible item.

“In the last six months, we have had many conversations with our users on how to improve our marketplace,” he said in an email.  “Not only is our community filled with multi-taskers that want the option to create and submit Rewards on-the-go, but many also felt that inspiration struck when they were out and about vs. at their computers, and wanted to be able to have a way to create Rewards or respond to them instantly with an idea they came across.”

The company launched with $7 million in October 2012 and has since grown by five times, reaching almost 500,000 members. The funding also supported development of the mobile app which will allow people to post rewards from their smartphones. Users submit to win rewards anytime, anywhere. Rather than flipping through an outdated Highlights magazine at the dentist’s office, why not provide a list of romantic anniversary date ideas to a clueless boyfriend? Or search for an original set of Dungeons and Dragons dice?

CEO Kendall Fargo said that Rewarder’s community is already highly engaged. More than $14 million rewards have been offered to date and hundreds are won each week. Each reward receives an average of seven submissions and there is a 250 percent increase in rewards viewed since December. The mobile app will not only raise levels of engagement, but also facilitate expansion into international markets where mobile technology predominates.

Rewarder is backed by Granite Ventures and Radar Partners, as well as Ron COnway, David Lee, and Kenny Lerer. The team is based in San Francisco.

Consumer attitudes and behaviors surrounding renting, borrowing, and leasing items, versus ownership, are shifting around the country, according to a study conducted by Sunrun and Harris Interactive. The survey of 2,252 adults found that 52% of Americans have chosen to rent, borrow, or lease items instead of buy them in the past two years. Twenty-four percent of Americans are more likely to engage in disownership now than five years ago, and 49% plan to “disown” traditionally-owned items in the next two years.

“These results show we’ve entered an age in which Americans recognize they can get more value by owning less,” said Sunrun cofounder and CEO Lynn Jurich. “At the same time, smart companies are creating innovative business models that offer consumers more flexible choices for accessing the things they want and need. Disownership represents a major cultural shift in consumer behavior- a shift that benefits our wallets, our planet and our communities.”

Part of this shift is due to the desire to save money and cut down on maintenance and storage. However, startups in the “shared economy,” “peer-to-peer marketplace” or “collaborative consumption” space have made it far more convenient, trustworthy, and downright pleasant to share rather than own.

AirBnB changed the landscape for travel accommodation, giving people the opportunity to stay in other people’s homes rather than impersonal and expensive hotels. Ride-sharing companies like ZipCar, Lyft, Uber, SideCar, and RelayRides have made it easier to get around without owning a car, and sites like RentTheRunway, BagBorrowORSteal, and resale marketplaces like Threadflip and Tradesy encourage woman to buy, sell, and wear used garments rather than new.

Many of these startups are based in San Francisco with a user base primarily comprised of “California hipsters.” However, Sunrun’s study found that these cultural shifts are not only occurring amongst the young, trendy, and urban. Among Americans 55 years or older, 25% reported being more likely to rent, lease, or borrow items traditionally owned today than five years ago, and 39% have chosen to rent, borrow, or lease these types of items than in the last two years. Furthermore, around 50% of survey respondents in the South and Midwest said they participate in “disownership.”

Commonly-shared items include vacation houses and rooms, heavy equipment, books/textbooks, and household tools, cars and trucks, and high-end luxury apparel and accessories. Sunrun provides home owners with solar panels without the high up-front costs that deter many people from going solar. It does this through “solar financing,” where people can lease solar panels from third-party providers. The study was commissioned to gather data on how consumers participate in the “access economy.”

The rise of disownership is an important national trend, as well as a tech/startup trend. The shared economy is not only about leveraging under-used resources, but also about connecting people online in a safe way. Even five years ago, the idea of letting a random person on the Internet stay in your home or get in the car with you seemed crazy and potentially dangerous. However, the rise of social networking and crowdsourced information adds in a layer of identity verification and accountability that helps people trust each other.

The economy of disownership is social, local, and often mobile. It is an example of the way tech startups can create meaningful offline interactions, pioneer national cultural change, and benefit the environment to boot.

Photo Credit: Shutterstock

Zaarly started out as a “mobile Craigslist” that focused on the buyer. Its members posted goods or services they were looking for with a certain time frame and price, and people on the other side of the marketplace would fulfill the tasks. In September, Zaarly released “Storefronts” where sellers can display what they do and offer it for sale. This update shifted focus to its best sellers. At the time, Zaarly said the “want engine” that allowed people to request anything would still be available.

However, a report in TechCrunch this morning tipped us off that Zaarly’s core product — the request-anything-buyer-centric marketplace — is no longer available. The storefronts are now the whole shebang.

A post on Zaarly’s blog said that the ‘The Seller Project’ began a year ago. The team realized that there was a select group of active sellers who were building a group of loyal fans and decided to create a platform to help them market their services. “Request Anything” would  be phased out, and Zaarly Storefronts would be the main product.

Zaarly started out in 2011 as a competitor to CraigsList and TaskRabbit. Kleiner Perkins Caufield and Byers led a $14 million round, and current HP CEO Meg Whitman joined the board of directors. Since then, the company added integration with social commerce site The Fancy and released a “Zaarly Anywhere” button that connected products or services on the web directly to Zaarly’s marketplace. The company seemed to be searching for a model that stuck.

Now, Zaarly more closely resembles Etsy or Shopify as a place where people can showcase their unique crafts and skills.

Unfortunately, Zaarly is now a little late to the game for this type of marketplace. Maybe the pivot will prove to be a smart move and help many small business owners boost their marketing and sales. Maybe. But as a consumer, perusing the marketplace, I see a lot of things that look cool, but that I would never buy. I am all for juice cleanses, apartment cleaning, and I bet my boyfriend would appreciate a week of homemade “Bro Meals” delivered to our door, but I don’t see anything that encourages me to buy or that I can’t find anywhere else. That said, next time I am desperate for a fully assembled terrarium with a bonus animal, I know where to go.

Photo Credit: Screenshot

I learned growing up with a pet beagle that some dogs are easier to care for than others. My beloved Cody was not very social, required lots of exercise, and regularly defied forces of nature to steal snacks. For dogs of all shapes, sizes, breeds, and proclivities and their owners, DogVacay is here to help.

DogVacay is a marketplace where pet owners can find qualified local caregivers. The company has raised $6 million to expand its vibrant community and roster of services nationwide. 

DogVacay eliminates the need to put pets in kennels by supplying individuals that can watch the dogs instead. Experienced and qualified hosts create profiles with information about their home and pet owners can browse, book and pay online. The rates are cheaper than that of the typical kennel, and pets benefit from staying in a comfortable environment.

There is significant interest on both ends of the platform, both for owners who need help caring for their pet, and for suppliers who can feed their bank account (and their soul) by indulging their passion for dogs. Along with supervision, DogVacay offers complimentary insurance, 24/7 emergency veterinary care, customer service, and daily photo and video updates.

The business was founded by husband and wife duo Aaron and Karine Hirschorn after seeking kennel alternatives for their own dogs, Rocky and Rambo. Before starting DogVacay, they watched over 100 dogs in their home and saw there was high demand for this type of service. The company has since acquired thousands of hosts and users across the country, paid over $1 million to pet-sitters, and logged 50,000 doggie nights.

This first institutional round of financing came from Benchmark Capital and will be put towards expansing the community and roster of services nationwide. Other investors include First Round Capital, Science, Quest Venture Partners, Baroda Ventures, Andreessen Horowitz, and angels.

DogVacay is based in Santa Monica, CA and has 20 employees. The other dog on the block is Rover.com, which also helps owners find dog sitters.

The internet has woven instant gratification into the fabric of American existence. With just a finger tap, anything can be delivered to your door. Shared economy startups are cropping up left and right, filling the streets with Postmates, TaskRabbits, Execs, and Uber drivers ready to respond to our beck and calls.

Another startup launched today, backed by venture funding, to match individuals with needs to people eager to fulfill them. Rewarder is a social marketplace where people can solicit advice, expertise and resources from the community in exchange for rewards. It essentially gamifies the now familiar shared economy platform.

On Rewarder, users post requests for anything from crafting a customized diet plan to finding a rare collectible item. They also offer financial incentives, and members have the opportunity to respond and win money. It differentiates itself from the errand-centric sites mentioned above, which focus on local and time sensitive tasks.

“One of the reasons we are so excited about Rewarder is that it recognizes the unique knowledge and expertise each person has and rewards them for sharing it to help others,” said Kendall Fargo, Rewarder founder and CEO in a statement. “We believe that by mapping the world’s expertise, Rewarder will offer a more personally meaningful e-commerce experience.”

While in beta, Rewarder has acquired more than 100,000 active users that have posted $10 million in collective rewards. Now it is available to the public, so anyone can search for a specific item of clothing, for ask of help finding a job on a cruise ship.

Its early traction helped Rewarder secure $7 million in its first round of funding. The investment was led by Granite Ventures and Radar Partners and includes participation from angels Ron Conway, David Lee, and Kenny Lerer.

The team is based in San Francisco.

As debates over foreign policy and the state of the economy rage onscreen, another battle is sweeping our nation’s streets. Transportation agencies and alternative transportation networks are facing off, and venture capitalists at least, are hedging their bets with the startups.

Ridesharing company SideCar has announced raising $10 million in funding. This announcement comes just two days after news broke that the California Public Utilities Commission issued Cease & Desist orders to SideCar, Lyft and Zimride, stating that these businesses violate state laws.

These three ride-sharing apps, which connect private drivers with passengers via smartphones, are continuing to operate. The law prohibits transportation services and drivers from operating without proper consent, but the founders assert that the donation-based business model protects them against these charges. Uber, another popular car service, has also been locked in legal battles with regulatory agencies as it attempts roll out its service in new markets around the country.

The popularity and widespread adoption of these taxi alternatives make them a viable investment, even considering the sticky legal issues. Since launching earlier this year in San Francisco, SideCar has facilitated more than 50,000 rides and grown a community of hundreds of drivers and thousands of passengers.

The strong reactions from regulatory agencies and the fierce dedication of consumers frustrated with traditional taxi options are a clear sign that this industry is in a state of disruption.

This investment from Lightspeed Venture Partners and Google Ventures will support expansion into new markets, and according to CEO Sunil Paul will “accelerate the crowd-sourced transportation movement.”

To this effect, SideCar has also announced acquiring a US Patent that covers the company’s method for accepting passenger pickup requests, determining location, and dispatching vehicles to that location.

When the dust does clear and peer-to-peer transportation networks are the norm, these companies and their investors stand to benefit from being early voices to take a stand and deliver inexpensive, reliable, convenient rides. What a concept.

HouseTrip, a British clone of Airbnb, has raised $40 million in its third round of funding.

Like its American doppelganger, HouseTrip is community-driven marketplace for accommodation. Residents post their property on the site as available to rent, along with a profile, price, and reviews. Travelers looking for a place to stay search through the listings and book a rental for their trip. This model benefits the host, who can generate extra income, as well as the visitors who stand to gain more meaningful, personal travel experiences.

“We empower thousands of property owners to make money from their homes and investment properties,” said founder and CEO Arnaud Bertrand. “In Europe, this is of great importance as the economic crisis has impacted so many lives across the Continent. HouseTrip also empowers guests to travel to destinations where they can fully immerse themselves in local culture by literally living like a local, and we reduce the cost of their experience by providing better value.”

Bertrand started HouseTrip after he struggled to book a rental for a getaway to Scotland with his wife. The available options for finding and booking accommodation were inconvenient and outdated, consisting mostly of classified ads and requiring phone calls and wire transfers.

Since then, HouseTrip has built up a selection of 130,000 properties in 15,000 destinations, and the company expects by the end of the year to have helped book more than 3 million nights’ sleep. It has focused its efforts on Europe, and has options ranging from Italian villas to New York apartments.

The investor team also hews closely to European roots. This Series C was led by Accel Partners, with previous investors Balderton Capital and Index Ventures also participating.

“We are a European centric business,” Bertrand said. “Europe is the largest market globally for vacation rentals, and 60% of Europeans travel within Europe. This is the first time Europe’s three largest VCs have come together to back a European player.”

While many Airbnb user list their primary residence, Housetrip targets properties that are consistently available to rent. The team also offers management and calendar tools for the hosts, so they can keep track of their bookings and offer a reliable alternative to visitors.

“Booking entire properties requires the same traveller to scour multiple niche listings sites or to call travel agents, real estate companies and even homeowners directly,” said Accel Partner partner Sonali De Rycker. “Often the same guests have to send a substantial deposit before they even have sight of the property with little guarantee or recourse if the property is not as advertised. The better the service HouseTrip offers to guest, the more likely they are to make a booking which in turn means better business for the hosts – these network effects only reinforce themselves as the company scales.”

This investment will be used to fuel the company’s international expansion. This brings its total funding to almost $60 million, following a $17 million Series B last November.

HouseTrip is based in London, with offices in Switzerland and Portugal.

I have always thought it would be nice to have a ninja at my disposal to take care of tasks like protecting me from attacks, stealthily breaking into ice cream shops once they are closed, and infiltrating covert tech companies to gather top secret information.

This dream may never come true, but I at least I’ll be able to hire a Flinja.

Flinja is a startup that uses the talent, energy, and financial need of college students to create a freelance workforce. On the marketplace, students post services they want to provide, which alumni and staff can directly book. The site provides an opportunity for students to build their professional networks, find jobs and internships, and make a little extra cash.

“As freelancers ourselves, we wish there had been a platform like Flinja around when we were in college that allowed us to make money off our skills and hobbies as well as network with the right people,” said CMO Rebecca Bahr. “With the economy the way it is, Flinja helps students earn money doing what they love and gives alumni and staff within their college network the capability to give back to their alma mater by hiring students for the services they need at an affordable rate.”

So far, the most popular tasks are tutoring, babysitting, driving, and language translation.

For security and networking purposes, the marketplace is only available to people with a .edu email address. The team shared that alumni have even asked for their old college email addresses back so they can sign up. The site securely processes all transactions with a third-party payment system and escrow facilities.

The exclusivity ensures safety, but also provides alumni the opportunity to stay connected to their alma maters.

“We are all proud of the universities we went to,” Bahr said this morning at DEMO. “Flinja allows us to give back to that college without having to write a check, connecting students to alumni one job at a time.”

The company is launching on a school by school basis. It is already available to the University of Southern California community. So far, 12 percent of the current USC population are registered Flinjas, with significant adoption from members of the class of 2016. An official Flinja student association is also on campus.

On Sept. 24, the platform debuted at University of California, Los Angeles and is available at Stanford on Tuesday. Plans for expansion include the rest of the of UC schools, followed by a national campaign. Jason Mendelson of Foundry Group said that this network could be a game-changer.

“I really, really want this company to succeed,” he said. “I think there is a huge opportunity here to tie the campuses to the wealthy alumni, creating a network and being bale to drive that network for jobs and money. This is a trojan horse.”

The five person team has extensive experience in tech spanning PayPal, Google, eBay, and Cisco, as well as other startups. They are based in San Francisco.

Flinja is one of 75 companies and 6 student “alpha” startups chosen by VentureBeat to launch at the DEMO Fall 2012 event taking place this week in Silicon Valley. After we make our selections, the chosen companies pay a fee to present. Our coverage of them remains objective.