Passing the torch

Succession stories are often associated with anxiety, trepidation and bewilderment; particularly when a founder passes over the reigns.  It’s the exception, rather than the norm, when succession happens naturally, which is why I’m so thrilled with the way Sphere/Surphace’s leadership has evolved. It will come as no surprise to our partners or anyone else following our progress that we’ve entrusted the reigns of the business to Josh Guttman as our next CEO.  Working with my co-founders Martin Remy and Steve Nieker, he’s made Sphere/Surphace hum and has earned the title.

Josh joined Sphere in the second half of 2007, after a lengthy and persistent appeal process. He fully believed in our business and value proposition from the start and it was apparent from the vigor with which he approached me. Once on the team, he applied that same vigor to business development, turning over every rock he could find and signing partnership after partnership, including several of our largest. When we were acquired by AOL in April 2008, we asked Josh to lead our expansion across the AOL universe and represent us on the ground in NYC.  He did so admirably, guiding our contribution to AOL while ensuring that our existing business continued to prosper. Without being asked, he assumed leadership of Product Development, Advertising Management and Design and each of these areas has improved significantly under his stewardship. In March, we named Josh COO and his command of the business has only improved since.   He oversaw some great hires in product development and business development in 2009, and led an inspiring retreat at our annual get together in September.  

My decision to step down was made easier knowing that Surphace is in excellent hands. Josh is the right leader for the business today. He’s a natural leader and a great guy to work with – earning consistent praise from all. Mapping out an exciting product pipeline for the next twelve months, Josh has provided Surphace with the ingredients to continue to prosper as a standalone business within AOL. I couldn’t be more pleased for Josh and excited for the Surphace team. Please join me in raising a virtual toast!

Next.

It’s been almost five years since Martin Remy, Steve Nieker, Toni Schneider and I started working on Sphere.  For me, it’s around 10% of a life. And it’s a time when I find myself thinking a lot about a particular question: What do I want to do next?

In 2005, I had the good fortune of being on the founding team of Sphere and joining True Ventures simultaneously. I always thought that I’d eventually focus all of my attention on one or the other, but both were too much fun and I guess I’m selfish in that way.  As time passed, I went deeper into each role and I never got around to choosing one or the other. It worked out nicely. True is on its second fund and Sphere had a successful sale to AOL in 2008. Most importantly, Sphere’s business and team are both thriving within AOL. While I’m proud of my contributions to both, the heroes in this equation are Martin, Steve, Toni, Shea DiDonna, Braughm Ricke, Om Malik, Puneet Agarwal, John Burke, Phil Black, Jon Callaghan, Marty Moe, Bill Wilson and AOL – they trusted and empowered me to pursue both. I am extremely grateful.

As I’ve thought through the question of what’s next, I’ve realized that I love the complementary perspectives acquired from building a company as an entrepreneur and investor. They are symbiotic roles and it’s really hard to say which has influenced me more. While my role at True as a Venture Partner will continue to deepen (because there is nothing more rewarding than working with people you admire and trust), I also find myself with a burning need to start another company. I’ve discovered my formula and doing both makes me happiest.

As for my next company, I’m not sure what the answer to that question is, but I’ve decided that I need to move on from Sphere (now Surphace) to figure it out.  This may feel like old news as I’ve been working to make myself obsolete as Josh Guttman transitioned into the CEO role. My decision is easy as I know that Surphace is in excellent hands. I wouldn’t feel comfortable leaving if I didn’t believe that Josh was the right leader for the business today.  He’s a natural leader and has a strategy for the future that I believe is going to accelerate growth for Surphace and AOL. I couldn’t be more pleased for Josh and excited for the Surphace team.

As for my thoughts about Surphace and AOL’s future, I’m more optimistic than ever. We joined AOL at an opportune time. AOL is doing what great, sustainable businesses do every so often – they’re reinventing themselves. As the business model of the oldest and one of the biggest Internet businesses evolves, Sphere/Surphace has become an important piece of their strategy to reach across and engage the web. In the past year, we’ve had an insiders’ view into how AOL’s new leadership team has moved aggressively to engage their audience (new vertical focused websites; a focus on engagement and not page-views for page-views sake; hiring leading journalistic talent when others downsized; acquisitions in the local content space; shorter development cycles with an emphasis on release, iterate and release). There is nothing like winning and the AOL publishing business is winning. As a result, I’m pleased to also announce that I’ve agreed to serve as a Special Advisor to AOL Ventures as they reinvent themselves. I am thrilled at this opportunity to evolve my relationship.

I want to give a huge thanks to the people who’ve made the last few years what they were: my family tops the list, an entrepreneur is only as good as their support system and this is my secret sauce. My co-founders, Martin and Steve, who trusted me to play a role in helping them get the tech they invented the exposure it deserved. Toni and Phil who taught me about generosity at a moment when I was able to learn. Matt Mullenweg who opened up my thinking of how a start-up operates.  Marty and Bill who have been consistently supportive since Day One – I can’t underscore enough how much I appreciate the manner in which they’ve empowered us to thrive in an appropriately independent environment. They have treated me (and the Sphere team) with enormous respect for which I am both thankful and flattered.  The original Sphere team, the current Surphace team who have embraced AOL. Our investors and advisors who supported and helped shape our vision. The True team and entrepreneurs who have taught me about sacrifice, vision, execution and the value of pursuing your dreams — and, of course, Lewis Dvorkin, Kevin Lockland and Bill who paid us the nicest compliment of all in offering to acquire our company and then doing so.

It’s been a thrilling, at times difficult, always rewarding and lucky ride I’ve been on. Thanks to all.

Goodbye Sphere, Hello Surphace

We’re super excited to formally announce that Sphere has a new name.  Our new name is Surphace.

The obvious question is why, in the midst of continued success – growth and distribution – are we changing our name?  In most cases, businesses change their names in order to relaunch, restart and/or establish a clean break from their pasts.  Our situation is very different.  Our business is as strong as ever, and from where I sit, the future looks as bright as I can remember (brighter, in fact).

Sphere is a name that’s been good to us.  It helped us become the business we are today catering to the likes of: Time, CNN, Tribune, WSJ, TMZ, CBS, AOL and millions of individual blogs.  As a brand, it communicates the totality of information disseminated across the web.  When we launched the business 3+ years ago, we did so with a desire to deliver that totality to users in the form of a blog search engine, so the name made sense.  Over time, our business has shifted, focusing much of its energy on large name-brand publishers.  We’ve learned that those publishers are as interested in syndication of their own content as they are in retrieving relevant third-party stuff.   In essence, our business today is centered around bringing content to the surface and so, Surphace is a name that, not only defines our business, but one we’ve grown to love.

Surphace is also a name that weaves incredibly well with our 2010 product roadmap, which includes, among other things:

• S4 – our self-serve platform currently in alpha (you can sign up for beta right here)
• SurphBoard – a spiffy updated editorial UI for our larger partners
• A url shortener in stealth mode – strategic to other products
• A real-time conversation thread, showing topical surphing in motion
• And a few more that we can’t yet disclose….:)

Nothing else about us will change.  Practically our entire team (plus a few talented additions) remains intact since the acquisition 18 months ago, and we couldn’t be happier with our extended family at AOL.  Some of you reading this must be chomping at the bit, wondering what’s going to happen to the Sphere domain.   To quell that curiosity, Sphere.com will soon grow to become one of AOL’s benchmark online destinations, and to maximize the suspense, I’ll leave it at that for now.

To all our existing partners, I plan to connect with each of you in person over the coming weeks to discuss our new product pipeline.  To all our future partners, we can’t wait to work with you.  Please get in touch and let’s see what we can create together.

Most clicked on area of AOL News

We’ve been fairly quiet on the blog recently, but only because we’ve been so focused on our continued partner growth, new product pipeline and a few top secret projects…to be announced soon.

Over the past year, as our analytics have steadily caught up with the swift pace of our partner roll-outs, we’ve begun to gather more meaningful insight into the effectiveness of Sphere’s technology for our partners.  Fortunately, we continue to surprise ourselves with the results.  The slightly blurry chart below is a click-map from Omniture for an AOL News article a few weeks ago.  It shows that, on this article, three of the most popular five clicks were into the Sphere module.  This means that, in aggregate, Sphere was the most clicked on item on the page, by a fairly wide margin.  While this was a particularly strong performing article for our technology, Sphere consistently attracted one or two of the top five clicks.   This is tremendously encouraging because more people clicking into Sphere means more effective recirculation for our partners.   It also means that our algorithm is surphacing relevant results that people want to see.  And if that weren’t enough, it also means that many many eyes roll over the ad unit (for those partners who run advertising with us) leading to more opportunities for our advertising partners to get noticed.  We love finding new measurement tools when they show us results like these and we’ll share more in the weeks ahead.

People.com in da Sphere – launches with Brangelina

We launched an exciting new partnership with People.com last week.  This one was a long time in the making and we were waiting for a worthy event to mark its launch.  That event turned out to be the arrival of Angelina and Brad’s twin babies.  Thanks Brangelina!

As you can see in the image below, we’re powering a module on People’s new NewsStorm product, where they aggregate content around a given topic.  In this instance, we’re exclusively showing related content from third party sources.  Incidentally, it’s the first time we’ve done this, not showing any internal content.  Over the past 18 months, we’ve seen publishers become much more open and interested in including third party content on their sites as the old walled garden mentality has diminished.  People.com followed suit and we think it’s a great decision.  A visitor to this page can access lots of relevant content now from disparate sources and we think that makes the offering more valuable to readers.  We’re looking forward to many more celeb happenings, babies and award ceremonies to fuel the NewsStorm fire:)

Our New Address: AOL.COM

Unlike the rumor that Sphere has reserved the Wrigley Field bleachers for Game 7 of the 2008 World Series, the conjecture about Sphere being acquired by a larger platform is officially true. AOL has acquired sphere. More information is here, here and here again for the curious detail seeker.

Where to begin, there is so much to say but we’ll try to be informative, yet brief for today’s ‘get it now, read it fast’ Internet reader. We are very excited about becoming part of AOL and wanted to share with you what it will mean for Sphere and our publisher partners, including “mainstream” media, micro-publishers and blog sites.

Sphere has always been a publisher/ blogger -centric company, even in our early days as a fledgling blog search engine. We founded Sphere with a mission to make contextually relevant connections between all forms of content (mainstream media articles, archived articles, videos, blogs, photos, ads) that enable the reader to go deep on topics of interest. We also, by virtue of our starting point, set out to be a vehicle to enable the individual voice to join the conversation as well as expose their voice to a broader audience of readers. The benefit of joining the ‘sphere is straightforward: publishers/ bloggers who successfully promote distribution of their content and that of others will be in a position to derive more value (aka….make more money, gain more influence, etc.) from media distribution.

Back when we released the Sphere Related Content Widget in 2006, the response told us we’d tapped into a new phenomenon of openness. A bit of a perfect storm as the launch of our service coincided with Publishers starting to embrace the virtues of linking to content outside their site as well as exploring ways to connect to the broader conversation happening in the blogosphere. While many savvy publishers have embraced these concepts, the fact is that there is an immense amount of work still to do in order to a) provide our customers with the best related content technology and approach; b) provide a more comprehensive set of “self service” tools that enable all partners, small, medium and larger to quickly launch our service; and c) enable publishers to most efficiently determine the best ways to distribute and monetize their content.

Our business approach will also remain unchanged – start-up-style, with the same hunger and spirit Sphere was founded on. We are joining AOL at an opportune time. AOL is doing what great, sustainable business do every so often – they’re reinventing themselves. As the business model of the oldest and one of the biggest Internet businesses evolves, Sphere becomes an important piece of their strategy to reach across and engage the web. In the past year, we’ve watched AOL as a partner, move aggressively to build their audience (new services, new web-site that interacts with users, acquisitions in the community space) and their Platform-A advertising business, and they’re making great progress on both fronts. They’ve seen steady growth as a result of the extensive programming and product upgrades they’ve made in the past year. Platform-A, meanwhile, reaches 90% of the domestic online audience and has some of the most sophisticated targeting and measurement tools on the market, positioning them very well in the growing online display ad market. We think it’s a huge advantage to become part of a suite of services that understands how Internet users access/ consume content, and how to intelligently monetize in tandem with that content. This is a win-win for our partners, AOL and Sphere.

We want to acknowledge our team who has made Sphere a success: Co-Founders Martin Remy and Steve Nieker who made it all possible with their vision and amazing abilities; Mike Garfias, Alex Bendig, Andy Cabell, Anne Dorman and Jeff Yolen who joined us early on when we had an idea and two nickels; Adam Embick, Josh Guttman, Kevin Cowan, Sven Henderson, Troy Vitullo and Michael Harzheim who’ve jumped in and have helped us accelerate our growth seamlessly — you rock! If you have a chance to pass them a note, please do.

We humbly thank everyone involved: our awesome team; advisors (Josh Macht; Toni Schneider; Matt Mullenweg; Mike Monteiro; Ron McCoy; Mary Hodder; and Scott Kurnit); investors, many of which wear halo’s (True Ventures; Trident Capital; Radar Partners; Hearst Interactive; Blacksmith; Phil Black; Will Hearst; David Mahoney; Mike Winton; Scott Kurnit; Vince Vannelli; Adaptive Path); our board (Venetia Kontogouris; Phil Black; Darcy Bentley; Scott Kurnit); publisher/ blog partners; the gang at Oddpost who showed us the way to build frugally/ intelligently; OM Malik, Mike Arrington, Kara Swisher, Dan Farber, Matt Marshall and the many other bloggers who’ve partnered, written, and given us advice; our attorney (Stefan Clulow); Howard Zeprun and Ira Parker who insured the dialog kept moving forward; Jen Consalvo who understood our potential and introduced to a number of AOL groups, Lewis DVorkin and Bill Wilson who paid us the nicest compliment of all in offering to acquire our company and then doing so, family and friends. We’re thrilled to be part of this new genesis!

Sphere vs. The Competition

People often ask us how Sphere’s products and technology fare versus our competition. While we believe that the results (namely our footprint) speak for themselves, it’s worth discussing some of the key differentiators between Sphere and other similar services out there:

• Behavioral vs Contextual – Sphere contextual matching will generate higher quality results on content more consistently than behavioral analysis. Several well-funded companies are competing for a piece of our market’s mind-share by offering related content powered by behavioral analysis. In other words, people who read this article also read this one, so we believe there is a relationship between them and you might also want to read it. This technology is very cool and we love it when it comes to e-commerce and the like. When I buy a digital camera, it’s helpful to see the memory cards that other consumers most often purchased. When it comes to content, however, we think it’s much more difficult to establish reliable relationships between, often, very disparate articles. We also understand that click-through rates generated by these services on content are typically significantly lower than those generated by Sphere’s contextually related content approach, and we think this confirms our hypothesis.

• Dynamic Results Guarantee Freshness – Sphere’s related content results are generated dynamically in Java-Script every time the page loads. This guarantees that we’ll provide the reader with the absolute freshest content. If I’m reading an article and a blogger and/or journalist published a contextually relevant piece within the past hour, this is something that I’d like to see and thankfully, Sphere will provide. Getting back to the point above, behavioral relationships typically takes time to establish, which prevents me from seeing the freshest results, from the source I’m on or elsewhere.

• Breadth of Related Content – Our technology is super-flexible and this means we can generate related content results from a multitude of different formats and sources – including articles, videos, photos and podcasts. When you integrate Sphere with your site, we can generate related content from your own articles or videos, as well as from external sources including blogs, videos and podcasts. Since we maintain one of the largest indices of the blogosphere, segmented by topics, and already work with many large video providers, this all happens very quickly.

• Simplicity of Integration – Speaking of speed and quickness, this is the icing on the cake. Several of our competitors require significant excavation and retooling of publishers’ CMS and website. Instead of offloading the work on our partners, we do all the heavy lifting at Sphere, including the indexing and configuration. When it’s all complete, we deliver some slick code wrapped in a red bow with instructions for implementation. That’s it – signed, sealed and delivered. Our typical implementation from start to finish happens in just a few days!!

If you’re a site owner or publisher and any of this gets you excited, send us an email by clicking contact us.