The Praized Blog

One of the first things you learn when you launch your own startup is to actively monitor opportunities in the market and move quickly to leverage them. In my case, it happened three times in the last three years.

The first strategic move happened back in the fall of 2006 when Sylvain Carle, Harry Wakefield and I founded Praized Media to help local media companies leverage the rising force of social media and online word-of-mouth. I also started blogging about what I call “local 2.0,” the intersection of local search and social media. At the time, most people believed that this convergence would not happen. Three years later, it’s one of the hottest sectors.

We made the second key move in fall 2008. Having launched our first social local tools (for WordPress, Movable Type, Facebook and our hub site) a couple of months before, we were approached by a few major media players who signaled to us they would be interested in using the technology we had built within their own online platform. This gave us the confidence to develop white-label enterprise versions of our social local media software, which has been in the market since spring 2009. Building on the popularity of our initial module, we developed many more enterprise modules described here.

The third strategic move is happening now. Last fall (what is it with fall???), we were approached by two US investment banks who aspired to represent us if we ever wanted to find a strategic partner for Praized Media. A few companies also hinted to us that they might be interested in investing in or acquiring Praized Media. Based on that enthusiasm, Sylvain and I (along with our board) discussed the pros and cons of going to the altar with a strategic partner vs. continuing alone.

The market is super-hot for technologies like ours. In the last three months, there has been a flurry of acquisitions and funding events in the “social local” space (we’ve created a document listing them if you’re interested). We could go on the road and raise new VC money to fuel our growth, but anyone that has raised those kinds of funds before knows that this is a brutal process, even when your market is hot. It takes a lot of time and energy, and for small companies, the process forces you to take your eyes off the product/company development roadmap. At the core, Sylvain and I are product/technology guys and that’s what we want to do. In the last two years, we’ve built world-class real-time social local search technologies. We’ve assembled a five-star (pun intended) social local technology development team. We’re notable thought-leaders in our space.

The future of local media will be centered on Aggregation / Discovery / Social / Search and our technology stack enables that. We believe what we’ve built (team and technology) represents the cornerstone of the next-generation local media company (traditional or pure play), and we want to focus on building that vision with a larger organization.

For all those reasons, we have decided to hire Siemer & Associates, LLC., an investment banking firm in Los Angeles that specializes in digital media, to represent us in our search for a strategic partner. We’re obviously supported a 100% in this decision by our board and the whole team is excited by this new move. For our current customers, collaborators and service providers, it is business as usual as this does not impact our day-to-day operations (actually, it frees up more time!). Given current market conditions, we are extremely confident we will find the right strategic partner.

If you’re interested in discussing more the opportunity, you can contact Siemer & Associates at (310) 496-4510 or info@siemer.com.

Montreal Gazette’s Roberto Rocha writes about the effervescent Montreal Web ecosystem today and the Praized team is featured. Excerpts:

But now Montreal is witnessing an Internet renaissance. New Web companies are sprouting up and venture-capital firms and “angel” investors who fund early-stage ideas are starting to pay attention, sowing the seeds of a new economic sector in the city. The activity is being driven not by government subsidies or by tax incentives, but by a desire to create something new and to meet like-minded people who see the Internet as the great new business frontier. (…)

Inspired by the collaborative nature of the Internet, local geeks with bright ideas started meeting at informal, community-organized events called BarCamps. The global movement that began in the Silicon Valley was the grassroots retort to stuffy, invitation-only tech conferences. In a BarCamp, computer whizzes show the first drafts of their garage projects to anyone who will listen. (…)

In a nondescript downtown office, Harry Wakefield and Sébastien Provencher are having one of their final meetings before taking their own startup, Praized Media, global. Their walls are barren save for an expanding pile of empty Guru cans by the windows and diagrams scribbled with the lingo of the new Internet economy – words like widgets, Ruby on Rails and tags.

“These kinds of get-togethers help good ideas bubble to the top,” said Provencher, who met his co-founders at YULbiz, a monthly gathering for business bloggers. Through their BarCamp connections, they assembled a team convincing enough to raise $1 million in venture capital from Garage Technology Ventures, a Silicon Valley VC firm that opened a Montreal office. Established industry groups “haven’t clued in to the fact that there’s a vibrant Web community here,” Provencher said. (…)

Praized Media is also mentioned in this list of Montreal networking venues and start-ups.

Yesterday night, portions of an interview with Sylvain Carle (Praized Media’s CTO) and myself were shown on the national news on Radio-Canada, Canada’s French public television network. We talk about Facebook and social media. You can see the results here (in French). I believe a second portion of this feature will be broadcast tonight at 6:25pm on the Montreal news.

I’m finally back from my vacation and caught up with my e-mails. Tonight, I’ll be attending the first ever Facebookcamp in Toronto (also called Facebook Developer Garage in Facebook).

Toronto was for the longest time the city with the most Facebook users but was recently overthrown by London. “Canadians account for more than 10 per cent of the site’s total population and according to web measurement firm ComScore, in June 2007, 11.4 million Canadians logged onto Facebook, compared with only 343,000 in the same period last year.”

Initiated by my friend Colin Smilie, who recently left Trader Media Canada to start his own business, the event has now grown into humongous proportion with 383 confirmed guests signing up by word-of-mouth in the last few weeks. The un-conference is at MaRS Discovery District. BTW, my friend Sylvain Carle is organizing a Facebookcamp Montreal this Fall.

What it means: yet another proof of the strength of social media. By starting the event, Colin managed to get the attention of the Facebook people (who will be presenting tonight and are sponsoring the conference) and signed up almost 400 people, a large crowd by any measure. If you’re attending and you’d like to connect with me, shoot me an e-mail ( seb AT praized.com).