The Big One
A breakdown on the day’s biggest Inno story.
Dylan: Endeca is the gift that keeps on giving for Boston tech.
Following the Cambridge tech company’s $1.1B sale to Oracle in 2011, former employees have gone on to found Toast, a restaurant software startup that employs about 500 people and has raised over $133M from investors, including Al Gore’s firm. Salsify, another company founded by Endeca alumni, has more than 100 employees and raised more than $54M. Endeca alumni have also gone on to start companies like Sprout Social, Kyruus and Infinio.
One startup from the Endeca gang that has been fairly quiet is Shoobx, a Boston-based venture that streamlines a company’s legal operations. But that all starts to change on Tuesday when the company — which has raised more than $10M in capital, with Endeca founder Steve Papa as its lead investor — hosts its inaugural Drive conference. Shoobx aims to close the education gap for entrepreneurs when it comes to the legal aspects of running a startup, from incorporating a business and fundraising and granting equity.
Jason Furtado, who founded Shoobx after serving as a product manager at Endeca, told me that he conceived the idea for Shoobx with Steve Papa based on the former Endeca CEO’s experience of dealing with Endeca’s legal complexities.
“He noticed nothing had changed since 1999,” Furtado, Shoobx’s CEO, said, adding that most of a company’s legal work has been through Word documents and PDFs that were constantly sent back and forth over email.
One of the larger issues, Furtado said, is that most entrepreneurs aren’t legal experts, so that can result in extra work and mistakes. For example, Furtado said, he remembers looking at the capitalization table of a company and realized that the company never granted equity to its employees because the company’s leadership assumed the offer letters covered everything.
Furtado said there are over 300 companies currently using Shoobx, though he declined to disclose how many of them are paying clients. One of Shoobx’s most prominent clients is Toast, which has a lengthy case study on Shoobx’s website.
Shoobx has been mostly quiet up until this year, Furtado said, because it was focused on getting the product right. Next year, however, that is set to change. Furtado said that’s when the company, which has about 30 employees, will start to focus more aggressively on acquiring new customers. Whether or not that requires a new financing round remains to be determined, he added. Read more: Endeca Founder Steve Papa Has Put a Lot of $$ into This Quiet Legal Tech Startup in Boston