What is Prairie Moves?

Published Tuesdays and Thursdays, Prairie Moves keeps our readers informed about career moves, media coverage, product development and more from the companies and individuals we cover on Silicon Prairie News.

If you or your company would like to submit one of the items below for our next Prairie Moves post, please email editor@siliconprairienews.com. And if you have suggestions on how we could improve these posts or any of our coverage, please contact danny@siliconprairienews.com.

Fundings

• Dwolla (Des Moines) raised $5 million in a Series B round led by Union Square Ventures (New York) - Dwolla blog, Union Square Ventures blog, Business Insider, Des Moines Register, SPN, TechCrunch, GigaOm, Fierce Mobile Content, Betabeat, Venture Beat, Vator News, Des Moines Business Record and Fred Wilson
• Todd Simon and Pete Ricketts (both of Omaha) participated in a $2.5 million Series A round of Artspace (New York) - Press Release, TechCrunch and SPN

Career Moves

• Red Nova Labs (Westwood, Kan.) hired four: Eric Hankins and Tim Banks joined it as developers, Andrew Heuback joined its engineering team as a Quality Assurance Tester and Ashley Burgener joined its operations side as a Local Search Administrator - Press Release
• David Sutter, formerly Vice President of Product Development at Sojern, joined iGroup Creative (Papillion, Neb.) as IT Director - linkedin.com
• Larry Latham, an "auction industry pioneer," joined Proxibid to add focus to the company's business development strategy - Press Release and SPN

New Tech

• Torsion Mobile (Des Moines) released Mojaba, a web-based tool that enables creative agencies to build mobile-optimized websites for clients - mojaba.com, Torsion Mobile blog and Terry Heaton’s PoMo Blog

Product/Business Development

• QQ Solutions (Deerfield Beach, Fla.) and SEMCAT (Lincoln, Neb.) integrated their products to provide insurance agencies with a solution for agency management and quoting - Press Release

Mentions

• AgLocal (Overland Park, Kan.) - Tech Cocktail: "Meat to the Table, brought to you by AgLocal"
• Shoot A Brew (Kansas City) - Fox 4 Kansas City: "Shoot-a-Brew: The Ultimate Couch Potato Gizmo?"
• Barcamp Cedar Vally (Cedar Falls) - The Northern Iowan: "Cedar Valley BarCamp"

Gig Bits

• Kansas City Star: "Google may add WiFi, Bluetooth to Kansas City project"
• Kansas City Business Journal: "Google tests next-generation devices that could end up in Kansas City"
• Google Fiber blog: "Kansas City is Fiber-Ready!"
• TechMeme: "Scott Canon / Kansas City Star: Google to start hanging Internet cables today in KCK"
• SPN: "Gig Bits: Crews laying fiber in Kansas City, Google applies to test Wi-Fi" 
• Kansas City Business Journal: "Schools, public locations eagerly await connection to Google high-speed network"
• Kansas City Star: "Google, Unified Government set fees for pole use in KCK"

Blogged

• Syncbak (Marion, Iowa): "Our 'big Hoss' watching Bonanza and going social with a new app feature!" (Video)
• Hudl (Lincoln): "Signing Day 2012—Hudl Athletes from the Top 100"
• AgLocal (Overland Park, Kan.): "Naithan Jones talks AgLocal" (Video)
• Social Media Club of Kansas City: "2012 SMCKC Vision"
• Josh Fleming: "How To Network In Des Moines"

Misc.

• A new group of investors, "Women Investing in Nebraska," is dedicated to focused, collective giving, with a mission to positively impact the state of Nebraska and its university through philanthropy - womeninvestinginnebraska.org
• The Greater Kansas City Chamber of Commerce announced a series of idea sessions on entrepreneurship - "Big 5 for a Greater Kansas City"
• Chicago Tribune: "Pinterest's crafty, comfy feel helps social media site catch on, spread quickly from Midwestern roots"

Image credit: Photo by Frank McMains via Flickr

When Proxibid president Ryan Downs sat down for an interview with Silicon Prairie News in September, Downs highlighted two goals at the top of his company's to-do list for the immediate future: growth of the marketplace and international expansion.

With its latest hire, Proxibid appears to be backing up Downs' talk. The Omaha-based real auction marketplace announced Monday that Larry Latham, billed by Proxibid as an "auction industry pioneer," has joined its team to add focus to its business development strategy.

"I am very excited about the opportunity to work with the Proxibid team," Latham said in a press release. "I look forward to serving as an advocate for the auction industry, and to help chart a path to keep it moving in the right direction. I have a deep admiration for the auction industry as a whole, as well as a vision for the future, and am ready to get to work."

Latham's past work includes creating the technology and logistics that allowed the FCC to auction more than $12 billion dollars of wireless licenses for mobile phones; creating homebid.com, which is believed to be the first real estate internet auction company in the United States; and serving as vice chairman for AmeriBid, which provides asset management and liquidation solutions for financial institutions, governments agencies, real estate investment trusts, hedge funds and bankruptcy courts in the United States.

In his new role at Proxibid, Latham (left) will help the company explore new opportunities for elevating the entire auction industry, a focus that's consistent with the priorities Downs (left) emphasized back in September. 

"We are thrilled to have a partner like Larry Latham join our team to shape the future of the auction industry," Downs said in the press release. "Larry is a visionary and will help to catapult our company and the auction industry into the future."

Image credits: Photo of Larry Latham from NAA News on Wordpress. 

Using Facebook and Linkedin contacts, Legal Sonar aims to help attorneys drum up business and provide people looking for lawyers with reliable references.

During her time practicing law and in the years since, Diana Kander (left) has come to believe that almost no amount of advertising or other bells and whistles can trump the value of a personal recommendation when it comes time to choose an attorney.

Kander tells the story of a friend who was simultaneously going through a divorce and filing for bankruptcy. The friend, a Ph.D., expressed concern to Kander that the lawyer he had hired was doing subpar work. As it turned out, Kander knew of the attorney. A bit surprised, she explained to her friend that the lawyer didn't specialize in either divorce or bankruptcy.

"I was like, 'Gosh, your'e a smart Ph.D. How did you not know that this lawyer isn't qualified?' " Kander recalled in a phone interview late last month. "And I learned that a lot of even smart people are, you know, trusting of people that they don't know very well and just assuming that J.D.s are qualified to do whatever it is that they say that they're qualified to do."

With her latest entrepreneurial venture, Kander is looking to eliminate the assumptions and uncertainty from that equation. On Feb. 1, Kander (CEO), co-founders Nathan Kurtz (COO) and Royce Haynes (CTO) and the rest of their eight-person team launched Legal Sonar. Based in Overland Park, Kan., Legal Sonar is an online directory that uses lawyers' social connections to identify colleagues and potential clients. Think LinkedIn, but for lawyers.

Lawyers pay a subscription — the standard package costs $110 per month, and the premium package runs clients $299 per month — to create Legal Sonar profiles. Those profiles are searchable by people that come to Legal Sonar's website seeking attorneys. Legal Sonar users can search for lawyers by name or area of practice. Then, utilizing the searcher's Facebook and LinkedIn networks, Legal Sonar produces a list of suggested lawyers accompanied by information about any mutual acquaintances.

For lawyers, Legal Sonar is designed to increase visibility and leverage social networks to find new clients. For people seeking lawyers, Legal Sonar aims to provide valuable feedback about potential attorneys and peace of mind that a lawyer comes recommended by a friend or acquaintance. 

That pitch seemed to resonate with attorneys, Kander said, citing the 80 percent close rate she's seen when pitching Legal Sonar to potential clients. "I've been doing sales for a long time," she said, "and I’m not used to this kind of positive feedback, which makes me feel like we have a great product."

In a phone call today, Kander said Legal Sonar had about 100 attorneys on board at launch and has already paired some lawyers with clients in its first few days live. "We've had people call in, and we've been able to find attorneys for people, which is awesome," she said. "It's working."

With $250,000 in total funding — $200,000 came from an angel round, and $50,000 is internal — Kander said Legal Sonar has enough capital to execute its plan for the Kansas City market. Kander plays it close to the vest regarding plans for expansion beyond Kansas City. But, with competition like findlaw.com and others in the space, the Legal Sonar team is putting a premium on iterating early and often.

"It’s like nobody owns and idea until they execute, you know what I mean?" Kander said. "An idea's an idea; it's all about how you execute. We're just trying to execute as strongly as possible without tipping our hand too much."

Disclosure: Legal Sonar CTO Royce Haynes is a Silicon Prairie News contributor. 

Image credits: Explanatory graphic from legalsonar.com. Photo of Kander from twitter.com

Join us live today at 2 p.m. for Episode 73 of PrairieCast. Our guests will be Mike Ferrari, co-founder of Social Money Systems, and Mike Colwell, director of the Business Innovation Zone. As you'd expect, we'll cover the news (not rumors this time) that just broke about Dwolla's investment round and also get the inside scoop from Ferrari about all the recent changes at his company.

Have you checked out PrairieCast's Facebook page? Head on over there and give a "like" at facebook.com/prairiecast.

PrairieCast is a live podcast, recorded weekly, for which a group of entrepreneurs gather to discuss current issues in technology and business that relate to the startup community on the Silicon Prairie. PrairieCast is hosted by Andy Brudtkuhl of 48Web and Geoff Wood of Silicon Prairie News.

PrairieCast is brought to you by Delta Dental of Iowa

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Dwolla, now at around 20 employees, expects to double in size following its latest raise of funds. Above, the Dwolla team at its meetup in December.

Dwolla, an online and mobile payments network based in Des Moines, announced today it raised $5 million in a series B round led by Union Square Ventures of New York, with participation from Village Ventures and Thrive Capital, also of New York, Artists & Instigators of West Conshohocken, Penn. (Marc Eckō's venture innovation company) and angel investor Paige Craig of Los Angeles-based Betterworks.

"The first round, the million-dollar round (in Dec. 2010), was really all about how do we get the product into the marketplace with the right partners?" Dwolla CEO and co-founder Ben Milne (below) said in an interview Monday. "This one's really all about how do we scale the product in the marketplace we're already in with the right partners?"

Fourteen months after its December 2010 national launch, Dwolla boasts more than 80,000 users and a merchant community of more than 7,500 accounts. The startup, which charges 25 cents per transaction of $10 or more and is free for transactions less than that – be they consumer-to-consumer, consumer-to-business or business-to-business – moves $30-$50 million a month across its network, according to a company press release today.

With the new funds, which bring Dwolla's total amount raised to date to around $6.3 million, the company plans to bolster its product development and support and aggressively expand its API offerings. Milne said in the immediate future Dwolla will focus on supporting financial institutions' integration of its Fisync feature, which is similar to its recently released Instant feature in that it aims to cut down the time it takes to load money into Dwolla, a common user complaint of the product.

Dwolla's team now stands at around 20 employees in Des Moines – a base city Milne said was important to maintain as he brought on new investors – and should double in size in relatively short order, the CEO said. "That's not going to be a hiring spree," Milne said. "We expect to bring on quite a few more (users) and continue to scale with (their) needs." With the employee expansion will also come a move from their current office in the Midland Building to the Wells Fargo Financial Center in downtown Des Moines, the Des Moines Register reported today.

With strategic investors on board, Milne is now focused on scaling a company he founded in 2008 as a result of his frustration with credit card fees. "We're focused right now on becoming a billion dollar network, that is not to say worth a billion dollars but move a billion dollars." With sights set high, he's pitting Dwolla's network against established networks, such as Visa, Mastercard and PayPal, and startups like Square and Clover Pay.

"We're focused right now on becoming a billion dollar network, that is not to say worth a billion dollars but move a billion dollars." - Ben Milne, CEO of Dwolla

Expansion to global markets is also in the future for Dwolla. Milne said the expertise of Union Square Ventures will be a valuable asset in that growth.

"At the end of the day," Milne said, "we want anybody who's connected to the internet to be able to instantly access their money and instantly send it to anyone else at a very low cost … I don't care if you're in Dubai or Des Moines, you should be able to do that."

Dwolla's relationship with its two strategic partners and early investors, The Veridian Group and The Members Group, both of Iowa, hasn't changed. As a result of this recent round, Union Square Ventures' partner Albert Wenger earned a seat at Dwolla's board of directors, joining Milne and J.D. Geneser of Dwolla (CFO) and Jeff Russell of The Memebers Group.

Though Milne declined to disclose details of the round or Dwolla's current valuation, Milne answered the question about valuation by saying, "It's good, like, life is good.

"The core focus has to be on building the company," Milne continued, "and today is not about celebrating what happened. It's about celebrating the opportunity to grow the company into what it should be."

Milne's 'dream team'

Two Silicon Prairie News event speakers, Marc Eckō at Big Omaha, left, and Paige Craig at Thinc Iowa, were participants in Dwolla's latest round. Milne said he met both individuals through the events.

Milne spoke about what it means to have a lead investment from Union Square Ventures. The venture capital firm touts a number of notable investments, such as Twitter, foursquare, Zynga and Etsy, and has a management team that includes avid VC blogger Fred Wilson.

"There's a lot of relationships and social validation inside of consumer brands or even consumer markets that I think this helps Dwolla be perceived not as a fly by the night idea but something that has legs," Milne said.

"If we could've picked a dream team, it would have been hard to argue with this," Milne said referring to Dwolla's five investors. "It worked out really well for Dwolla."

Milne said Union Square Ventures brings expertise in the consumer market, Village Ventures (Simple, TxVia) is heavy in payments, Thrive Capital (Warby Parker, Kickstarter) and Eckō of Artsts & Instigators (Zaarly, Nutrisystem) are strong in branding and Craig (Klout, Kiip) brings critical feedback to Dwolla's product strategy. To assemble this group, Milne said he spent 12 weeks straight in airports in latter half of 2011.

"Dwolla reminds us of Etsy," Wenger (left) of Union Square Ventures said in an email interview on Monday. "Like Etsy, Dwolla seems to have struck a chord with its early adopters by taking a different approach from the existing alternatives and focusing on value to the participants."

When asked if Dwolla's use in the Bitcoin marketplace had any effect on this investment – Wilson once blogged on the virtual currency – Wengner said it was not a consideration.

Craig, who was on the speaker lineup with Milne at our Thinc Iowa event in October, said Milne's passion initially captured his attention. "Many founders I meet have passion, but with Dwolla I saw passion paired with genuine purpose," Craig said.

"(Dwolla's) asking 'What would payments look like if we started everything from scratch today without being tied to legacy systems?' " Craig continued. "I love the big dream, and more importantly they've already shown incredible success executing against it."

Craig concluded his email interview with an unsolicited comment about what it means for Milne to build his company in Iowa.

"Well, this isn't actually core to my investment," Craig said, "but the fact that Dwolla is in Des Moines is important – it's representative of a recent trend in the US. Innovation is happening everywhere and Silicon Valley is losing its importance.

He added, "I think Ben and the Dwolla team have a unique opportunity to leverage Midwestern culture, attract a unique and stable team that loves the city, and take a leadership position in the Des Moines community."

Check out the video below to hear more from Milne on raising the Series B round and having the support of the Dwolla community. 

Update 10:10 a.m. – On the Dwolla blog, Milne provides more insight into the raise and shares a bit about each participant in the round: "Dwolla – Entering a growth stage with new partners".

Update 11:10 a.m. – On the Union Square Ventures blog, Wenger shed more light on his firm's investment in Dwolla: "Dwolla".

Image credits: Photo of Dwolla team and Ben Milne by Anna Jones | Art of Photography. Photo of Marc Eckō by Malone & Company. Photo of Paige Craig by Anna Jones | Art of Photography and Ikonix Studio. Photo of Albert Wenger courtesy of Union Square Ventures.

Two Omahans are among a list of investors named as participants in a $2.5 million Series A round by Artspace, an online marketplace for contemporary art. On Jan. 31, the New York-based startup sent out the announcement, naming 12 investors. Four of them are institutional investors and eight are individuals, including Todd Simon (far left), senior vice president* of Omaha Steaks, and Pete Ricketts (near left), former COO of TD Ameritrade and founder of Drakon, an asset management company in Omaha.

Simon has displayed a passion for the arts, serving on the board of directors for the Bemis Center for Contemporary Arts in Omaha. Ricketts has been a part of the Nebraska Angels organization, an angel investing group. In a video produced by the organization in December, Ricketts said his angel investments range between $25,000 and $250,000.

For more on Artspace and its Series A round, read its press release just below or the news on TechCrunch:

Artspace.com, the leading online marketplace for contemporary art, is pleased to announce the close of a $2.5 million Series A round of financing from notable professional and institutional investors. With this new financing, Artspace is pleased to introduce Andrew Goldstein, former Executive Editor of ARTINFO, as the company's new Editor-In-Chief. …

Launched on March 29, 2011, Artspace.com is the only platform where users can buy works by top contemporary artists directly from artist studios, leading commercial galleries and prestigious cultural institutions, including the Guggenheim, David Zwirner, White Cube and many others - all in one place.

Read the full press release

Image credits: Screenshot from artspace.com. Photo of Todd Simon from bemiscenter.org. Photo of Pete Ricketts from platteinstitute.org.

Update 9:10 a.m. – When published, the post incorrectly identified Tood Simon as CEO of Omaha Steaks, per the Artspace.com release. The post has been updated with his correct title of senior vice president.

In January, Betabeat cited un-named sources to report that Dwolla had raised around $10 million in a Series B round led by Union Square Ventures of New York. Dwolla, a Des Moines-based pay online cash transfer startup, responded quickly but passively on Twitter with allusions to songs titled "Rumors." Today, it's a different tune. Business Insider has the online scoop – the Des Moines Register has it in print – that Dwolla has raised a $5 million Series B round led by Union Square Ventures, a venture capital firm who among its notable investments touts Twitter, Zynga, foursquare and Etsy.

Also participating in the round was Village Ventures and Thrive Capital, both of New York, Artists & Instigators of West Conshohocken, Penn. (Marc Eckō's venture innovation company) and angel investor Paige Craig of Los Angeles-based Betterworks.

"The investment is all about getting the product out nationally," Milne told Business Insider. "Union Square Ventures can help build the brand and build the beginning of something we think will be really, really badass.

Business Insider: "Dwolla Raises $5 Million From Union Square Ventures To Continue Building Its (Nearly) Fee-Free Payment Network"

To date, this brings Dwolla to a total amount raised of more than $6 million. In December 2010, it raised its Series A round from investors and strategic partners in Iowa, The Veridian Group and The Members Group, both of Iowa.

Besides the obvious heavy investment coming from New York, here are few early notes on the investors:

• The regular Silicon Prairie News audience may remember that Eckō and Craig spoke at two of our events in 2011, Big Omaha and Thinc Iowa respectively. Dwolla co-founder and CEO attended Big Omaha and was a part of the speaker lineup at Thinc Iowa, as well.
• When it raised its Series A round in December 2010, it had also announced the addition of Village Ventures managing general partner Matt Harris to its advisory board. Today, his firm comes on board as an investor.
• Thrive Capital founder Josh Kushner also has a connection to Betabeat, the outlet that originally broke the Dwolla funding story. From Betabeat's disclosure page: "Thrive Capital is invested in several start-up companies. Josh Kushner, a Thrive principal, is also part-owner of Observer Media Group, which owns Betabeat. Betabeat has no affiliation with Thrive Capital and the views expressed in Betabeat do not necessarily reflect the opinions of Thrive Capital or its principals." 

We have a full story in the works on Dwolla's Series B round. Stay tuned.

Update 9:25 a.m. – Read the full story: "Dwolla raises $5m Series B round led by Union Square Ventures (Video)"

Name: Amanda Garner

Bio: Do-Gooder, information gatherer, data nerd, pop culture observer, made in Nebraska

Title: Director of Community Outreach, Nebraska Global

Age: 34

City: Lincoln, Neb.

Website: nebraskaglobal.com

Twitter: @amandanebr

Linkedin: http://www.linkedin.com/pub/amanda-garner/

Intro music: "There's Always Someone Cooler Than You" by Ben Folds

Silicon Prairie News: As the person in charge of organizing Nebraska Global's philanthropic and service work, how have you seen building software companies and serving the community complement each other?

Amanda Garner: It's about problem solving. We volunteer time to help organizations solve problems to make our community a better place to live and work. We focus on making software that solves problems for the enterprise. In addition, our ability to continue hiring quality people depends on our community remaining an excellent place to live and work. Volunteering offers us many benefits for our employees — they have a lot of fun when volunteering and their eyes get a break from the computer screen.

SPN: To what would you attribute your interest in service work? Is there any person or experience that guided you in that direction?

AG: My mom is one of the most generous people anyone would have the benefit of knowing. If she knows someone needs help, you can’t stop her from helping. One of my early memories is having my mom send a check back to school for a field trip for more than what it was supposed to be. When I told her she wrote the check for too much she explained to me that it was to help other kids go on the field trip because their parents might not be able to afford it.

This led to an early start in the business of trying to change what I thought was wrong in the world. I testified in front of a legislative committee at the age of 16 regarding labor laws. I was inspired during my coming of age by President George H. W. Bush and President Bill Clinton who both speak passionately about everyone's ability to make a difference through service. I started out as a computer science major in college and switched to education, then social work. After college, I tried politics for a bit but the "politics" of politics wasn't a good fit for me. There wasn't a job that rolled all my studies into one position until I began talking with Steve (Kiene) months before Nebraska Global started about a new form of corporate philanthropy. And, I have been challenged by our founders to keep things going and growing. I have found that sometimes the craziest idea that seems the least attainable ends up the one that is the most satisfying to pursue.

SPN: As a Nebraska native working at a company that's dedicated to building successful startups in the state, what are some of the biggest misconceptions about your home state you encounter from people unfamiliar with Nebraska?

AG: For those that think the state is flat I suggest the following road trip: Highway 92 west of St. Paul especially after a good rainfall. Read a Willa Cather book and the words will help you understand the beauty of the plains if you can’t make the trip.

The last time I went to California I felt like I was an alien and was missing some pretty blonde girl ingredient. I think the biggest misconception about Nebraska is actually from Nebraskans. I’m tired of hearing about how wonderful other places are – Nebraska is the only place I want to live. Nebraska is a great place to be because we don't draw judgment on the surface. You get respect from others by being a good person and hard work. It doesn't matter who your parents are, what kind of car you drive or how much you spend on clothes. Because of this, it is a great place for business. I have seen the amount of time other CEOs lend to new and growing companies in Nebraska, and I don't think that would happen in other places. I also like that my commute takes less than an hour round trip which means I have more time in my day. I can make my pretty things or, hypothetically speaking, I could go to the gym.

SPN: You make doilies in your free time. What sparked your interest in the craft?

AG: My Grandma Garner taught me to crochet when I was very young. She made all kinds of pretty things — quilting, tatting, knitting, crochet, embroidery. I spent a lot of time with her growing up. She lived to be 102 or 103 — there was a bit of a debate on her actual date of birth. I didn't start crocheting until after she died. Doilies are very intricate but they are fascinating patterns that are based in mathematics. They work only because there are very specific measures in the pattern that will make them work. I had many early experiments that only my mother thinks are wonderful. I don't actually sell many of them. People don't seem to want doilies anymore. But, I keep making them, and my mom and sister-in-law love them so I'll just keep giving them away.

SPN: You tweet frequently about fantasy football and even have a Tumblr dedicated to the subject. So tell us, beyond lots of Web 2.0 exposure, what's your strategy for building a good fantasy football team?

AG: My oldest brother played football through college at Wesleyan, and I went to all the games. He's a high school football coach now in Broken Bow, Nebraska so his kids are big fans of football as well. My youngest nephew, Yance is a data nerd just like me. At the age of 9 he was pouring over box scores. I want him to know about the good guys of the NFL — the ones who have kept their nose to the grindstone and stayed out of trouble. So, I started a list. The list is of players that I will not choose for my fantasy football team because of their actions: DUIs, assault charges or just general bad behaviors. For example, there are players who continue to get DUIs even though the NFL has a special hotline for them to call for a ride home. I think that if you aren't smart enough to call for a limo to drive you home because you're drunk you aren't smart enough to be a good football player. I think that if you do good then it will reflect positively on your game, so I also have a list of highlights on the good players. In my first year, my list didn't prove out well because I didn't know how to draft. Example: Derrick Mason was an early pick-up in my first season due to his charitable work. He was actually a solid performer last year while on the Ravens but not a stellar performer. This year I understood more about fantasy football and I ended the season with the 2nd most points in the league, but I placed 5th overall. My first round pick was Calvin Johnson. It worked out for me.

Image credit: Photo courtesy of Amanda Garner.

Prairie Portraits: To learn more about this series, see our introduction post, or visit our archives for past Prairie Portraits. To suggest an individual for a future Prairie Portrait, contact editor@siliconprairienews.com.