CustomMade and 18 Million

What can CustomMade do with it's new round of financing, 18 million dollars? a lot. I am lucky enough to experience the inside view of a large funding round like this for the second time. The first one, AdvisorTech Corp, was during the Internet Bubble years. 20 millions were nothing to talk about. This time around, the market conditions are much more realistic, and the CustomMade round is well deserved and it is a vote of confidence by the markets. One of the main success factors for CustomMade is the pairing of co-founders Seth Rosen and Mike Selguero. They have complimentary skills in a way that I have not seen for a long time.

Another factor of CustomMade's success is the first mover's advantage. While being first does not guarantee success, being first and having a team that have worked and worked to understand the customer gives CustomMade a tremendous advantage over any competitors. Any two sided market place business is difficult to understand. Which side of the market should subsidize the transaction (makers)? How to deal with competition within one side (how to encourage maker participation without shrinking the maker pool by favoring high performers)? How to match make between the two sides (customers and makers)? The CustomMade team has built up a lot of internal knowledge of how to make this market work.

But remember, to quote Mike quoting Seth:

A dollar raised is a dollar not earned -- Seth Rosen

This is a beautiful insight into the truth about startups -- Having raised this large round of financing just means that we are in the hot seat to delivery value to the investors by multiplying those dollars into revenue growth.

Here is a picture of @pks, @MoonlightLuke and @markstenquist working hard with their pen and paper... (We were signing forms for a welding class, to understand how to custom make objects!)

Why I ditched Skitch and Evernote a long time ago

Today the internet is flooded with "we hate Skitch 2.o" sentiment. I hate to tell you, but I ditched both Skitch and Everynote a long time before today. Some background. I loved Skitch. But soon, Skitch gettings to be buggy and would crash on me often. It got to the point where I had to stop using it because I need a reliable way to share images at work. This was just around the time Evernote bought Skitch.

I was a very early Evernote adopter. I work on multiple machines and being able to automagically sync notes across them is priceless. But slowly I am annoyed by the subtle differences in the evernote clients across platforms. By all account Evernote is now a very mature platform but they still have problem deciding whether to support text formatting on all platforms. So I gave up.

I use Yojimbo for all my notes now. I am waiting for a read/write iPad and iPhone client, and that is a problem, but the Yojimbo guys know software and I trust them to get all the features right. Their notes organization support is very good which is what I need, and I use dropbox for general file syncing across platforms.

So why is Skitch and Evernote so bad? and Dropbox and Yojimbo so much better? Because fundamentally Dropbox and Yojimbo are run by techies -- programmers that put actual functionality first and business model second. They use their own products and will not make it not usable. My guess is product development team now drives Skitch and Evernote, and while "aligning their products with their strategic business model", short changing their actual user base.

Note: Yojimbo is an Apple platforms only product. If you use Windows, stick with Evernote.