KnoxEC: Vuture looks to wrap some VC money around Angels

Venture Tennessee ConnectionsMilt Capps recently published an article on Vuture, a startup with plans for a platform for storing, prior scheduling and custom-sending video messages. Knoxville-based Founder-CEO Michael Crain says his startup is hovering with Angel investors while seeking a venture-capital firm to lead its $500K Seed round.

Crain says a lead investor is likely to come from venture-capital ranks, where institutional money is not shy of capital targets such as his. Crain says he believes he can count on about $50K in Angel money, already, and he has invested $50K from his 401K. He’s talking with both Tennessee and North Carolina investors.

He presented the company during the Knoxville Entrepreneur Center’s Aug. 5 MediaWorks Demo Day, as the app was nearing its first round of Apple review.

Vuture — its name conflates “view” and “future” — sends messages with links to video clips via text or e-mail. Crain said open-rates for text messages are typically much higher than for e-mails, although companies that want to use the service within their businesses are more likely to use e-mail delivery, at this time.

Pricing includes an attractive flex-factor: Customers only pay for videos “that actually reach your target audience,” Crain emphasized.

Knoxville-based Designsensory has supported its mobile app development, which is over the hump and nearly done with a second review by Apple, he said. Would-be users may sign-up via the Vuture website to be alerted when the app is ready.

Crain said his KEC mentor, Lewis Frazer, former CFO of listed Regal Entertainment, was tremendously helpful as Vuture made its way through KEC’s 13-week accelerator program. He gave strong credit, also, to KEC CEO Jim Biggs; and, to Jonathan Sexton, the KEC entrepreneur-in-residence who was particularly helpful in reaching out to specialists and potential investors.

Source: Milt Capps, Venture Tennessee Connections