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It's that million dollar smile. Bob Moul, Chairman and CEO of AppRenaissance, announced today that the year-old company has raised a $1.5 million seed round of investment led by FirstMark Capital, with contributions from Moul and other Philadelphia angel investors.

AppRenaissance, a rapidly expanding mobile developer located in Old City, expects to take in a million dollars in revenue in its first year, which wraps up midyear. "I would expect to at least double or triple that the second year," says Moul. "We’ll be focusing on major brands in 2012 and have a senior sales exec coming on board to drive that."

Additionally, says Moul, AppRenaissance will use the funding to hire a project manager, some developers, and some architects, as well as to improve its core product Unifeed, a patent-pending mobile middleware platform. "We have both floors at 309 Cherry, so plenty of room to expand," says Moul, who made a successful exit from Boomi when it was acquired by Dell, and was also recently appointed President of Philly Startup Leaders.

Moul, who previously stated that there is a need to close the gap in entrepreneurial funding, says that this seed round "is the stage between friends and family and an A round where an early stage VC would invest.  However, it is on the larger size and has a VC participating." FirstMark Capital was also an investor in Boomi.

AppRenaissance customers include TicketFly, BizEquity, AllFanz, R5 Productions, the newly launched geo-social startup Interact, and high-risk insurer Pennsylvania Surplus Lines Association.

Source: Bob Moul, AppRenaissance
Writer: Sue Spolan

Coming soon: a mad dash. The Weekend Treasure does discounters like Groupon and Amazon Local one better. Each week, subscribers will receive an email with two clues as to where a giveaway will take place over the weekend.

"The email features a local product from a local merchant that's 100 dollars or less in value," says founder Dave Clarke, who has his sights set on the demographic of 22 to 40 year old urban professionals. "The idea is if you want it and love it, and you can figure out the clues and find it, it's yours." It will be Clarke himself standing at the destination with product in hand.

Riffing off the very popular phenomenon of City Chase and other urban scavenger hunts, Clarke says The Weekend Treasure was one of those two in the morning jump out of bed ideas (and seriously, has nothing to do with the fact that Clarke in getting married in a month). "No one is doing this type of thing. By no means do I think I am going to conquer Groupon or Living Social. I am interested in the idea of creating instant delight," says Clarke, who cites recent work with a behavioral psychologist as inspiration for The Weekend Treasure.

Now in pre-launch, with a goal to roll out this spring, The Weekend Treasure will also reward runners up with a discount at the featured merchant. "We'd like to prove it will actually drive traffic," says Clarke. "If a merchant is giving away a hundred dollar product and we drive 2 customers, that's a win. A small win, but better than ecommerce." There is an exhaustion in the marketplace due to the proliferation of email coupon businesses that have jumped on the Groupon train.

Clarke also runs AuthenticMatters, a digital communications consultancy, but says The Weekend Treasure has been gaining mindshare over the past three or four months. Urban adventurers can sign up via The Weekend Treasure's Launchrock powered home page. And Clarke promises he will keep the contest clean. "It's not going to be weird where you have to crawl in a sewer."

Source: Dave Clarke, The Weekend Treasure
Writer: Sue Spolan

Really, it's not stalking. Interact, launched in open beta on April 4 for iOS, is a mobile app that tells you who's nearby, even if you are not yet friends. The ambient location tool created by Anthony Coombs scrapes Facebook data so that when you launch Interact, you get a screen populated with people who are a set distance from you. But it's not creepy, says Coombs. "On a scale of 1 to 10, it's a 2."

Coombs built the app, which joins competitors Banjo, Highlight and Sonar, to foster and facilitate human interaction. "I'm pretty sure human beings connected before the iPhone. What we are doing is mimicking real life human interaction and using the iPhone as a conduit," says Coombs.

Ambient location apps were the talk of SXSWi this year. What sets Interact apart, says Coombs, is that the user can specify business or pleasure.

You are in a cafe and it's love at first sight. Turn on Interact and if your potential paramour is on Facebook, suddenly you have intel. Interact provides a first name, picture and common interests. You both like Led Zeppelin and bowling? It's on. If you both have iPhones, one better. Interact allows users to send a direct text. Coombs is planning an Android rollout as well, but chose to begin with one platform to work out the bugs.

Interact also allows you to specify that you are all work and no play to assist in creating business connections. You can set the geosocial interaction app to check for connections up to 25 miles away. Coombs stresses the privacy controls built into the app missing in others of its ilk. A user can appear invisible, and Interact does not employ GPS to constantly track users. "When I use the app, this is my location," says Coombs. "The app is stamping, not following you."

On the marketing front, Interact is launching a contest to find the most connected college student in Philadelphia. On April 23, Coombs will present A Guide to Building Location Based Social Networks at Philly Tech Week.

Coombs is now actively seeking a few good developers to bring Interact to the next level, and is also seeking user feedback. The app is free and available in the iTunes store.

Source: Anthony Coombs, Interact
Writer: Sue Spolan

While Philadelphia Startup Weekend prepares for the sold out 3.0 edition, organizers have just announced Startup Weekend Health Philadelphia.

The first of its kind in the world, the June 1 event will take place at Venturef0rth and is co-organized by Elliot Menschik, who already possesses a background that blends entrepreneurship and medicine.

Menschik gets an increasing number of calls from healthcare colleagues seeking tech solutions. He says, "Healthcare so lags behind the pace of change in mobile and analytics. As soon as you step into the healthcare domain all that efficiency and convenience goes out the window. Both practitioners and consumers experience this on a daily basis."

Menschik, who founded and sold the startup HxTechnologies, says this lag is the reason he got into healthcare IT in the first place. "There's so much opportunity and it's why it deserves its own weekend."

Philadelphia is just the place for the specialty startup weekend due to its position in both the medical past and present. He writes in the event blog, "From the biopharma corridor to world-class hospitals, medical schools, research institutions, health plans, associations and non-profits, you’d be hard pressed to find another city so immersed in all things medical.  So it’s only fitting that Startup Weekend hold its first-ever Healthcare-only Startup Weekend in the same place as the nation’s first hospital (1751), first medical school (1765), and many other firsts."

Also, Menschik is hoping that potential sponsors, which would include providers, hospitals, insurance providers, and CROs, would not just kick in money, but would send a rep to present a problem. "Ultimately we would like to have sponsors who will alpha or beta test products. The hardest thing is getting a place to test in a field where customers are so conservative," says Menschik.

Meanwhile, the already sold out Philly Startup Weekend 3.0, the general all purpose edition, will take place April 20-22 at The University of the Arts. Says co-organizer Brad Oyler of this year's improvements, "We are switching from mentors to coaches as an experiment to get coaches more involved with Startup Weekend teams, and we are going for a more social version this time, with a nightly team bonding event outside of the venue." Oyler thinks PHLSW 3.0 will be orders of magnitude better than 2.0 in October, 2011.

Source: Elliot Menschik, Brad Oyler, Philadelphia Startup Weekend
Writer: Sue Spolan

When you are talking sustenance, the combination of education and a hot meal is just about ideal. Philasoup, along with Springboard Collaborative, won top prize at Philly SEED, a new crowdfunded gathering specifically for educational entrepreneurs in the style of PhillyStake.

Philasoup's top spot in the Emerging Entrepreneurs category garnered $5,000. Springboard Collaborative, won the Expanding/Established Entrepreneurs category, receiving a bundle of pro-bono services. Funds were collected via ticket sales, as well as from a Knight Foundation grant.

The two winners were chosen from an original 41 applicants and 12 finalists, which included ApprenNet, The School Collective, Lessonsmith, Yes! for Schools Philly, and Investing in Ourselves. Educational entrepreneurs are hot right now; last month's Philly Tech Meetup focused on the same topic.

The awards ceremony took place at WHYY on Wednesday, March 28 to a packed house of nearly 200 people, a number of whom were also members of Young Involved Philly, which has a great track record of getting people out to events. Councilman Bill Green was on hand as co-host, as were several Philadelphia philanthropists.

Rachel Meadows, who works for Councilman Bill Green event organizer for Philly SEED, a member of PhillyCORE Leaders, says she hopes the event will be take place at least annually, if not more frequently.  "There's an audience for these type of events. I think people have realized that bureaucratic change is difficult, so perhaps bottom-up entrepreneurial efforts are more effective."

Kristen Forbriger, the Communications Manager for the Philadelphia School Partnership, looked around at the young, engaged crowd and remarked, "This represents a lot of energy in the city. There are a lot of tough problems to solve and a lot of people wanting to solve those problems."

The winner, Philasoup, will use its award to host a monthly microgrant dinner where educators connect and fund projects to benefit Philadelphia students, regardless of institution.

Source: Rachel Meadows, Kristen Forbinger, Philly SEED
Writer: Sue Spolan

You are in a foreign country. You don't speak the language. Something awful happens. "I was in China," says Ryan Frankel, co-founder of PalmLing, a startup out of University City aimed at providing real time concierge level translation assistance to travelers at a modest daily cost. "I thought I could eat anything on the menu, but the next morning I was in a world of pain. It was a serious situation. I don't speak Mandarin. I staggered to the pharmacy. At that point, I would have given anything to have someone there capable of communicating on my behalf."

That was the lightbulb moment for Frankel, who connected with business partner Kunal Sarda back at Wharton, where both were pursuing MBA degrees. "We are helping international travelers navigate the complexities of a language barrier," says Frankel. A PalmLing subscriber calls an access number 24 hours a day and gets connected real time with a live translator who can do the talking on the traveler's behalf to a pharmacist or taxi driver, for example.

PalmLing has just launched a Kickstarter campaign to raise $25,000, which will be used to create a PalmLing mobile app. Right now, all it takes to get connected to a translator is a standard mobile phone and an access code.

The human capital intensive business requires live translators to sign up. Travelers can book PalmLing for periods of 10, 20 or 60 days, at a variable cost of $1.50 to 4.00 per day, depending on the length of the package.

"We went from zero to 1,300 translators in the last month without any advertising," remarks Frankel, who counts stay at home moms, retirees and ex-military among the legion of live assistants who get paid anywhere from $15 to 25 an hour. "We offer PalmLing for Hindi, Mandarin, and all Spanish speaking countries," says Frankel, who estimates coverage of about 200 million trips annually with those three languages alone. Frankel adds that those 1,300 employees were acquired at nearly zero cost.

Frankel and Sarda are also seeking partnerships with businesses to acquire customers in three core stages of travel: before the trip on sites like Orbitz and TripAdvisor, en route at the airport or in the airline magazine, and at the destination, working with hotels, transportation providers and local mobile phone companies.

Source: Ryan Frankel, PalmLing
Writer: Sue Spolan

Who would think that a 33-minute online promotional video could be so effective? Stroll, the sole licensee for consumer sales of the audio language learning Pimsleur Approach and producer of the animated pitch, is growing at a phenomenal clip. "We grow in one month the way most companies grow in a year," says Dan Roitman, founder and CEO of Stroll. "We have over 150 employees and so far this year are hiring four to five a week. It's like mushrooms sprouting everywhere."

Roitman says he started the company while in college at the University of Maryland, going $70,000 in credit card debt. "I discovered the Pimsleur Approach in 2001 and thought it was such a great product, but so undermarketed," says Roitman. "I saw the opportunity with the product line to take it to another level."

Since 2002, Stroll has expanded at a compounded annual growth rate of 73%. Last year alone Stroll grew 135%.
Competing with Rosetta Stone, which holds the number one slot in the language learning vertical with the benefit of an $80 million dollar investment, Roitman saw that the path to success was all in the metrics. "At this point, we represent the majority of sales in the marketplace," says Roitman, whose sophisticated marketing analytics verge on fanatical. "When we spend $5,000 to place an ad, it's critical that we measure the return on every single ad dollar." Now in its 12th year of business, that 33 minute long landing page video is the result of a decade of rigorous testing.

Roitman had to fight for placement of his first online ad, which broke even. He improved and tweaked until one Pimsleur ad resulted in a 1,500% lift in the conversion rate. "We focused on one channel at a time, and then diversified within that channel."

Roitman says the company's marketing efforts have turned language learning into an impulse purchase. Most people who buy the Pimsleur Approach do not have a pressing need to know Spanish or Chinese, but rather have a latent desire to improve themselves, says Roitman. "We help them take steps to achieve a lifelong dream of learning that language. They open themselves up to a whole new world."

Source: Dan Roitman, Stroll
Writer: Sue Spolan

Students graduating from law school may be well versed in the doctrine, but have no idea how to put together an angel funding package or negotiate a divorce. Drexel University law professor Karl Okamoto is changing the way law is taught through his startup ApprenNet.

Okamoto, a Professor of Law and Director of the Program in Business & Entrepreneurship Law at the Earle Mack School of Law at Drexel, has already rolled out his engaging and gamified instructional program to about 20 law schools nationwide, thanks to initial grants from the National Science Foundation totaling $180,000 so far, with a potential million-dollar grant on its way this summer. Okamoto is assisted by recent Drexel law grad Emily Foote and developer Paul Tzen.

ApprenNet, currently in beta, is an interactive website that augments and expands on the classroom experience by redefining legal education as an apprenticeship. A student watches a client pose a question on a legal topic, then posts a video answer, finally getting to see an expert answering the same question. Others can view student answers, and the budding attorney gets a portfolio of video responses which can be shared with potential employers.

By the end of this semester, Okamoto estimates that a quarter of U.S. law schools will be using ApprenNet. "Professors struggle over how to insert practical training," says Okamoto. ApprenNet is hands off. All the instructor has to do is send a student to the website. The startup grew out of Okamoto's LawMeets program.

"The whole system relies on practitioners' participation," says Okamoto, who has been most heartened by the discovery of a huge pent up demand to provide teaching and feedback among practitioners the world over. Usually, in a guest lecture, students are surfing or sleeping, and are not engaged. The way ApprenNet works, says Okamoto, it takes only 10 minutes to record an expert video, and students are eager to get feedback from the experts.

So far, Okamoto has not sought revenue outside of sponsors who are excited to be in front of law students, like Practical Law Company and Bloomberg. "We have not yet charged any user for the exercise, but have been collecting data on what people are willing to pay," says Okamoto, who is building in the ability to charge users a small monthly subscription fee.

There is also potential to create ApprenNet for many other disciplines, like training food service workers, teachers, or even musical training. "We'll take care of law first, says Okamoto, "and then use it in lots of different places. Why can't we crowdsource violin?"

Source: Karl Okamoto, ApprenNet
Writer: Sue Spolan