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.

A New Chief

We’re psyched to announce that Josh Guttman has been promoted to Chief Operating Officer of Sphere.

Josh joined us in November of 2007. His primary focus was on helping Sphere accelerate its Publisher footprint. He excelled in that role, quickly becoming a leading contributor to our extensive network of A-list partners.  Also, we asked him to lead our expansion within AOL – he has done an exceptional job guiding our efforts.

Above all, it’s his proactive leadership that has made the most important impact on Sphere. without being asked, he has taken on a leadership role on Product Development, Design and Advertising Management. Each of these areas have been strengthened significantly under his leadership.

Thus, the entire Sphere team is thrilled to see his contributions, his role and responsibility at Sphere recognized. Congrats Josh!

You can follow him on Twitter at @JGut

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!

Related Video – Widgetized for WordPress

We’ve been excited about the video opportunity for a long time. The team recognized the power of displaying related video on articles early and the related video on Reuters has been one of our best performing installations. Now, we’re starting to roll it out to the rest of our partners, beginning with our pop-up widget for self-hosted WordPress bloggers – we’ll make it available to all platforms soon but we want to put it in the hands of WordPress bloggers first, as they’ve been an awesome group of early adopters for a number of our applications. If you blog about topics widely covered in mainstream media, the video widget adds a different dimension to the information gathering experience and we believe this is what’s driving the extraordinarily high click-thru rates we’ve generated by presenting video thumbnails. It also shows the flexibility and scalability of our platform, for which Martin and Steve deserve the lion’s share of credit. Great work guys!!