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Demoxi raises $1.5 million for secure "identity wallet"

Demoxi, which is announcing $1.5 million in funding today from Monster Venture Partners and others, is only a few months old. But the technology behind the company goes back 11 years to the beginning of VoteHere.net, a Bellevue online voting startup that -- despite raising more than $20 million -- never really took off.

In today's column, I talk about some of that history and how Demoxi plans to use 50 patents from VoteHere (and its predecessor company Dategrity) to create a new way for people to manage their passwords and personal information online.

Restarting a company with existing technology is nothing new. Issaquah's BioPassword -- an online security startup backed by OVP Venture Partners and Ignition -- was reborn in 2002 when Hollywood movie producer Mark DiSalle purchased the technology in an asset sale. Electronic signature startup DocuSign, also backed by Ignition, is a restart from a company called DocuTouch. Seattle's TripHub also has been revitalized after hitting the wall during the dot-com bust.

Northwest Venture Associates' Tom Simpson, an original investor in Dategrity/VoteHere and a board member at Demoxi, said the original concept at VoteHere didn't develop as quickly as the company thought. But he expressed confidence that the cash and brain power that went into the idea can be reused at Demoxi.

"The advent of social networks, and the growing popularity of them, provides an ideal near-term opportunity to deploy Dategrity's intellectual property. It is a broader market opportunity than just
elections, less seasonal and it does (not) require the endorsement of any governmental agency," he said.

Demoxi is the latest investment for Monster Venture Partners, a new Seattle area firm led by Global Market Insite founder Rob Monster.

Posted by at July 20, 2007 7:58 a.m.
Comments
#42100

Posted by unregistered user at 7/20/07 8:57 a.m.

Yet another secure ID play + yet another ad play = a potentially tough go. One of the firms mentioned above is already having difficulties, and transferring some of the old VoteHere crew is hardly a ringing endorsement for successful growth and market vision.

m

#42116

Posted by unregistered user at 7/20/07 10:23 a.m.

The one good thing you can say about this is that the VoteHere/Dategrity mess didn't go completely bankrupt. Otherwise it's a bunch of worthless patents managed by people with a proven inability to run a business.

BTW, Dategrity was not the predecessor of VoteHere. The other way around. Dategrity was the (first) grasp at the straws of technology from a failed company- VoteHere.

#42119

Posted by unregistered user at 7/20/07 10:30 a.m.

a start-up with both a president/chairman and ceo. hmmmm

is there a trust or competence issue here?

#42127

Posted by unregistered user at 7/20/07 11:15 a.m.

So why did Tom Simpson invest in votehere when it addressed a narrow, seasonal market and that did require the endorsement of a governmental agency? Bush league VC.

#42141

Posted by Pope at 7/20/07 12:14 p.m.

Hey John - Just a clarification for your readers. TripHub is, as you suggest, doing well. Our customers continue to send very positive feedback and our recent partnership with Orbitz (our third partnership with a publicly traded company) provides further validation of our model and the clear demand for trip-related communication and collaboration services.

But comparing today's TripHub with the un-related company that hit the wall in 2000 is mis-leading. Though the name is the same, the focus, team, and business model are completely different. We bought the name and URL but the company you see today was built entirely from the ground up starting in 2005 (years after the article you referenced). We first launched our group trip planning service at www.triphub.com in March 2006.

I hope this clarification helps set the record straight.

Thanks,

John Pope
VP Marketing
TripHub Inc.

#42147

Posted by John Cook at 7/20/07 12:46 p.m.

Hello John,

As I mentioned to you on the phone, I consider the "new" TripHub a restart of the "old" TripHub with the same name, same location (Seattle), similar business area (group travel vs. student travel groups)and at least one of the original investors, Madrona. That was the point of the post -- companies that start over with something fresh after an initial idea fails.

I am sure Madrona learned some lessons about what didn't work with the original TripHub and are now applying some of those in an effort to make the new TripHub succeed.

Thanks for the comment.

John Cook

#42178

Posted by unregistered user at 7/20/07 2:51 p.m.

I do not understand all of these backbiting comments.

Here is a company that has perservered over many years,has fifty patents,and is contributing to the local economy.

We should applaud these entrepreneurs instead of criticizing them.

#42183

Posted by unregistered user at 7/20/07 3:02 p.m.

Who is Dan Spillane, Alex?

m

#42269

Posted by unregistered user at 7/21/07 8:04 a.m.

#42178- if you don't like reading criticism, don't read.

#42358

Posted by unregistered user at 7/22/07 12:16 p.m.

john cook - are you on monster venture partners payroll? every move mr. monster makes you are there to report it. surely there must be more interesting people to write about.

specific to the venture, when did hard drives become a safe haven for personal information? as hackers have shown, neither the cloud nor the hard drive are beyond infiltration. and the recent record of the US patent office is not good. many patents have been given for very few real innovations. the system is under siege and the fact that this company has access to some intellectual property means very little.

leave it to mr. monster to think big though. the target is global consumers and the goal is a platform that earns their respect, trust and confidence.

at the same time he is revolutionizing health care as a chairman of another company and transforming the global market research industry as a board member of the company he just left.

looking forward to the next world changing investment from mr. monster makes. and we all know who will be there to report on it.

#42364

Posted by unregistered user at 7/22/07 1:10 p.m.

"looking forward to the next world changing investment from mr. monster makes. and we all know who will be there to report on it."

I hope so. I hate being the last to hear about something.

#42372

Posted by unregistered user at 7/22/07 2:51 p.m.

good for you. i will look for more interesting and likely to produce something things. goodnight.

#42484

Posted by unregistered user at 7/23/07 1:04 p.m.

This is Rob Monster.

First of all, thanks for all the input on this latest venture. Demoxi is an exciting project. It is by no means a slam dunk since we are not the only ones who are pursuing a strategy to embrace and extend OpenID. In forming Demoxi, I saw an opportunity to leverage 11 years of development and $20 million in cumulative investment in a federated identity platform which has been successfully used in binding elections among 15 million voters in 200+ elections. The technology works. That said, I view voting as a use-case rather than the core of Demoxi. Online identity is the core of Demoxi.

As for the tie-in to Healthcare.com, there actually is one. For example, a use case for Demoxi is HIPAA-compliant communication between patient and care provider. Research shows that the average patient and physician trade voice mails an average of 7 times before they can talk live. Secure messaging enables secure, asynchronous and non-phishable communication between patient and care provider. This is a key synergy. Look for Healthcare.com to start shipping next month. The current site is mostly licensed parking content that happens to be getting 500,000 unique visitors per month.

As for the tie-in to GMI, it just so happens that one of the largest issues facing the online market research industry is that of identity fraud. GMI learned this in places like Russia where a surprising number of Russians claimed to be Brits. GMI developed considerable know-how to defend against this fraud. Demoxi takes this to the next level by making it possible to spawn survey invitations via real-time secure RSS feed to persons who are verified as being eligible is a powerful enhancement over the current e-mail-based workflow.

On my decision to play a dual role as Chairman and President of Demoxi, I realize that this is not conventional. Demoxi is the only company where I have taken an operating role. I did this because (1) I think it is a big idea, (2) time is of the essence, and (3) Demoxi brings tremendous synergies to most of the other investments I have either made or am contemplating. Jim Adler is doing an excellent job and so I expect to eventually transition to being only Chairman. However, in the early going, Demoxi needs me to play a larger role in order to build momentum around this huge opportunity.

#42506

Posted by unregistered user at 7/23/07 2:47 p.m.

Translation: The market we are attacking is drenched and if I'm throwing up the cash I will control it with an iron fist.

"Demoxi needs me to play a larger role..."

This type of quote is not going to do a whole lot to assuage those who have lambasted him in the past.

m

#42507

Posted by unregistered user at 7/23/07 2:51 p.m.

Rob will provide much-needed adult supervision. Whether that translates an opportunity into a successful business remains to be seen.

#42549

Posted by unregistered user at 7/23/07 7:04 p.m.

ha

#43522

Posted by unregistered user at 7/30/07 11:21 a.m.

The only man who makes no mistakes is a man who never does anything. Do not be afraid to make mistakes but don't make the same mistake twice.

#44480

Posted by unregistered user at 8/3/07 3:41 p.m.

Monster + Adler. A great team if failure is your goal.

#44868

Posted by unregistered user at 8/7/07 4:00 a.m.

Hi all. I'am amazed that votehere and/or dategrity have 50 patents. Has somebody information about that patents?

#60570

Posted by unregistered user at 10/25/07 8:45 p.m.

I got drunk tonight
and pondered the father
I should have been
but for my cowardice,
self-loathing and insecurity.

I got drunk tonight
and pondered the abortion;
the hormone injections, pills
and miscarriage that left you
curled up and cramping, weeping
because you were such
the devoted Catholic.

I got drunk tonight
and pondered if I would have been up for the task
had we gone through
with our original plan
to keep the child, get married
and move into the basement
of my parent's house.

I got drunk tonight
and pondered your broken heart
and mine,
the rage I felt
because your parents wanted so bad
that you terminate the pregnancy,
rage that would have been better
aimed at myself (maybe).

I got drunk tonight
and pondered the shit way
I treated you after
one argument over the phone,
the way I let you slip
into oblivion.

I got drunk tonight
and pondered on the truth
of if I really love you,
searching memories of lust so throbbing
at 3:00AM
pushing your panties down
not even sure if you were really

awake-

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