Dear Startup Investor:
Founder John Frei made the hike from Florida to Baltimore by plane. Co-founder Yan Auerbach trekked by car from New Jersey to our offices in Baltimore, Md.
We’ve already talked three dozen times over the phone. But, as I like to tell my fellow co-founder of the Startup Investor, Adam Sharp, it’s so much better when you meet CEOs or founders face-to-face.
I invited the two founders to Baltimore to discuss their plans and recent progress with Adam and me. Both founders were upbeat. I wasn’t surprised. They’ve kept me well informed. I expected nothing less.
Now I’m returning the favor to you, filling you in on their latest developments that came out of our meeting.
I’m pleased to report that SpeechTrans has strengthened and expanded its partnerships with Microsoft (Nasdaq: MSFT), Intel (Nasdaq: INTC), HP (NYSE: HPQ) and others over the past few months. To refresh your memory, you can click right here on the monthly update report we sent you last week.
Here are a few new things I learned.
- John said his Texas presentation to Microsoft got an overwhelmingly positive response.
- Yan has been working closely with HP in making sure their software is 100% compatible with HP’s computers and laptops. By the way, all of HP’s 2014 models will have SpeechTrans’ software.
- Yan is also launching several new initiatives with Intel.
- The guys were really excited about their third-party marketing company. It has already landed them two potentially huge contracts with multi-national telcos in the Middle East and West Africa.
On the fundraising front, SpeechTrans is making excellent progress. They’ve contacted about half the Members of The Chairman’s Circle who reached out to them following our recommendation. John and Yan were both confident that their $1 million fundraising target will be completed in the near future, thanks in part to the investments many of you made. Speaking of which…
One Chairman’s Circle Member was so impressed by John and Yan that he has emailed 100 of his best friends about SpeechTrans, urging them to invest. Out of respect for his privacy, I won’t mention his name to you. But I don’t think he’d have any problem if I tell you some of what he said…
“I think the risk is minimal. One of their apps will be on every HP computer going forward. Also Early Investing has done due diligence.”
I was pleased to hear that he’ll be advising John and Yan as they move ahead with their plans.
Before the meeting wound to a close, Yan pulled out his laptop and gave us a demo of his automatic sales response system. It allows him to track hundreds of customers at once, making only those phone calls that close the deal. John said they’re using their system these days to target customers for their transcription-translation services.
Overall, we were impressed with the company’s progress. As for our first up-close impression of John and Yan, they passed the test with ease. Adam and I agree: These guys know what they’re doing.
They understand they have to keep pushing the boulder up the hill. And they’ve given us every impression that they’re up to the task. SpeechTrans is heading in the right direction, driven by two very capable gentlemen.
Sincerely,
Andy Gordon
Startup Investor Portfolio
