The SaaS world this week saw HubSpot acquire the chatbot builder Motion AI, which provides an editor for websites to build a chat function through Facebook, Slack, SMS and more. While the terms of the deal were not released, this should come as an indicator that AI will be incredibly important for companies gaining a competitive edge on their customer service. Equally disruptive in the tech space this week is Uber’s expulsion from London, as Transport for London announced this morning that they will not be renewing their license at the end of this month. Read below for the full story.
Speaking of Facebook, the social media giant this week removed four ad-targeting options in light of a report that found that certain fields could be used to target ads to people who declare themselves anti-Semitic in their “about me” section of the site. Self-reported targeting fields will no longer be available for new campaigns until Facebook enacts new processes to help prevent this issue.
New in SaaS listings include a highly profitable business in the real estate space, with a c.$13K gross revenue per month and authoritative brand in a growing niche with over 14 years of experience, and a video editing SaaS company with thousands of account users and a highly scalable cost structure in a growing niche. Also listed was a display advertising site in the food and recipes niche, with a monthly gross revenue of $2K, rankings for over 40,000 keywords, a strong traffic profile of over 1.1 million users and an authoritative brand with over 6 years of operations. These businesses are likely to go fast, so be sure to request information today if you would like to learn more!
In events, Founder Thomas Smale has been busy in Dublin this week speaking at SaaStock, where he also met many past clients. The FE team has also been enjoying Boston Startup Week, where Thomas today spoke about how to grow the value of your startup. CEO Ismael Wrixen has been busy at conferences locally as well, having hosted a series of roundtables at Business of Software earlier this week, where he discussed exit planning and the current trends in business software with several influencers in the industry.
Next week on Tuesday September 26, FE will be co-hosting a networking INBOUND event in Boston in coordination with the YEC. You can RSVP here. Be sure to say hi and/or Tweet us if you are attending!
Continue below for more on London’s expulsion of Uber, Facebook’s new changes to their ad policy, HubSpot’s acquisition of the chatbuilder Motion AI, and Facebook turning over Russian 2016 election ads to Congress.
Deal Highlights
New:
Software – CAD Real Estate Software – $13K gross/mo
- Authoritative brand in a growing niche with 14 years of business operations
- Patented CAD tools
- Strong earnings with year-over-year revenue growth of over 10%
- Ranks for 6,600 keywords, driving c.1,470 downloads over the trailing 12 months
- Low owner involvement
Yearly net profit: $135,000
Asking price: $445,000
Display Advertising – Food & Recipes – $2K gross/mo
- Strong traffic profile with 1.1 million unique users driving over 2 million page views in the last 12 months
- Keyword rankings for c.40,000 keywords
- Established brand with over 6 years of operations
- Low owner involvement
Yearly net profit: $13,000
Asking price: $55,000
Software – Video Editing – $1.6K gross/mo
- Thousands of user accounts created to date
- Clear opportunity to transition into SaaS/recurring subscription model
- Lean and highly scalable cost structure
- Early presence in a rapidly growing niche
- Low owner involvement
Yearly net profit: $17,000
Asking price: $50,000
Sold:
E-Commerce – Sustainable Home Goods – $30K gross/mo
In the News…
No Uber for You, London
Just today, London stripped Uber of its license to operate in the city. This will go into effect on September 30, as Uber’s license is set to expire then and the city of London is not currently planning on renewing it.
The decision by London authorities comes in the wake of a series of what they considered to be unprofessional behavior, rendering them undeserving of a car hire license. Transportation for London is quoted as saying, “Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications,“ TFL said. Uber’s lack of reporting of serious criminal offenses and thorough background checks of Uber drivers seem to be the biggest motivators leading to this decision.
Uber, which accounts for one-third of the cars for hire in London, plans on appealing the decision.
Facebook’s Zero Tolerance of Intolerance
Facebook has yet another announcement in their string of improving restrictions to what advertisers can do on the site. After a recent report that pointed out distasteful advertising behavior, Facebook is removing the ability to target information in the “about” section of a user’s profile.
A recent report from ProPublica revealed that the fields could be used to target those who self-report as anti-Semitic in their academic field of study and/or employment. Therefore, FAcebook has decided to make this feature unavailable for future ad campaigns until they resolve the issue, but will not pull it from existing ad campaigns. The reason for this, according to Facebook, is “to help ensure that targeting is not used for discriminatory purposes, we are removing these self-reported targeting fields until we have the right processes in place to help prevent this issue.”
If targeting specific educational and employment fields of users was a significant part of your business’ Facebook advertising strategy, you will want to make sure you adjust appropriately while Facebook sorts out this issue.
HubSpot Acquires Chatbot Builder
HubSpot announced on Wednesday that they have acquired Motion AI, a prominent visual chatbot builder and editor. Motion AI allows companies to create a chatbot for their site’s customer service functions.
While they did not disclose the financials of the deal, HubSpot CEO Brian Halligan said of the acquisition: “It’s impossible to ignore the impact of chat and messaging, not just on the way B2B companies operate, but on society as a whole. We’re in the midst of a massive shift as businesses embrace this new platform and consumers come to expect more immediate, always-on communication from brands.”
Motion AI’s software allows sites to build a chatbot using SMS, Facebook Messenger, Slack, and more, without needing to do any programming. The whole team will stay on and integrate with the HubSpot team.
Facebook to Turn Over Russian 2016 Campaign Ads to Congress
Facebook will turn over to Congress copies of circa 3,000 ads purchased by groups linked to Russia in the 2016 election, stating that they would release details associated with the advertisements.
The news-laden social media giant has opted to cooperate with Congress in order to grant the necessary transparency to the investigation of Russian interference in the 2016 election. Facebook’s General Counsel shared where the company stands on the situation, saying “We believe it is vitally important that government authorities have the information they need to deliver to the public a full assessment of what happened in the 2016 election.”
Facebook has been entangled in Russian collusion headlines since the election almost a year ago. Their cooperation indicates a serious overhaul of advertising standards.