While the markets, as measured by the S&P 500, are approaching highs not seen since 2007, the IPO market and other means used by private companies to raise cash from new investors have slowed to a pace similar to that of 2008 as the recession was going into full swing. Part of the blame can be laid at the feet of Facebook's problematic IPO in May of 2012 while another concern that dampened enthusiasm for IPO's in the second half of 2012 was the looming "Fiscal Cliff" battle, which had many industry watchers predicting a slide back into a recession due to spending cuts and tax increases.


Another factor, especially for private placements and reverse mergers, is the preference of investors for investments that have liquidity and can be sold into an active market. For many, the idea of owning restricted shares or shares that are months or years away from a liquidity event is simply not the most attractive use of their investment dollars.


These concerns aside, money is still being allocated these types of projects when the investment presents an attainable and realistically large opportunity. Here are the keys to presenting the type of investment that will attract attention and funding in this environment:


*Be ready to present the path your company will take on its way to reaching its objectives in detail – Being able to clearly describe how your business will get from where it is now to the point where it rewards its investors can help investors understand the workings of your business as well as the role their investment will play.

*Be able to show proof that your product/service is viable and has a market with enough size to drive the revenues that you're forecasting – A proven product/service with a market looking for the solution your company provides takes a significant amount of risk out of the equation.

*Execute, execute, execute – Companies that take an aggressive stance toward executing their business plan can often succeed even when their product isn't the best on the market. Being perceived as a "doer" versus being a talker is where you want to be in the minds of your investors.


Private companies seeking funding are always operating in a challenging environment and current circumstances are making that job even tougher. Working with a team experienced in helping companies get funded, such as Dmitrij Harder's team at the Solvo Group, can get you prepared for outside investors and put your company in the best position possible for raising capital. For more information, visit: http://solvogroupinc.com/

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  • User Experience and SEO



    Prior to Google’s implementation of the Hummingbird algorithm in the second half of 2013, search engine optimization and delivering a positive user experience with published content were distinctly different practices. Despite Google’s mission to surface high value content, its algorithms were easily manipulated with SEO tricks that didn’t necessarily deliver the information that the search engine users were looking for. At the same time, content that delivered relevant information often earned lower rankings than poorly written articles that prioritized packing in keywords over adding value.


    Hand it to Google, the search engine has stayed true to its commitment to deliver improved user experiences and is now far less vulnerable to manipulative practices. Its ranking algorithm now factors a variety of signals that result from positive user experiences, including:        


            Links from authority sites – Content that contains valuable source material, topic-relevant information or delivers a positive user experience in general can earn links from authority sites to provide additional information or to be cited as a reference. These links carry an increasing amount of weight in the ranking algorithms due to the quasi-vetting process from originating authority sites. This is a completely different ranking methodology than the one which rewarded web pages that had thousands of spammy backlinks purchased for a few pennies each.       

            Social actions – When content is posted to social media platforms such as Twitter and Facebook, user can elect to share that material with their friends and/or followers. Sharing or liking posted content is referred to as a social action, which is an indication that the content delivers a positive user experience, whether it’s entertaining, informative or a combination of the two. Steady and/or increasing social actions with specific web pages can then boost rankings due to the implied legitimacy of independent referrals.    

             Active and positive comment threads – Quality content draws engagement in the form of active commentary threads. Content that is generating shares and likes will also elicit commentary, with the actions reinforcing each other when being weighed by search algorithms. While these reinforcing actions are great for SEO campaigns, they are equally capable of driving higher rankings for negative content, such as news stories.    


    In today’s SEO campaigns, manipulating the algorithms has become increasingly difficult. This is due in part to the growing sophistication in algorithm methodology that can detect spammy links and content. It is also due to the evolution in the way people communicate and share information on the web. The paradigm change now forces SEO and content distribution campaigns to focus on the same primary goal; delivering a positive user experience. 

  • One SEO Change to Implement Now


    As the sophistication of search algorithms continues to increase, search engines are improving their understanding of what their users are looking for with their inquiries. Prior to replacing its search methodology with the Hummingbird algorithm in 2013, search results typically showed results that had a high percentage of the same keywords included in users’ inquiries. While the pages that were returned based on keyword matches generally reflected some relevance to the search, there were also results that had nothing to do with the nature of the inquiry.


    Two of the primary reasons for these unrelated results were black hat techniques that were used to trick the early algorithms into granting high ratings, as well as words that were spelled the same but had different meanings, known as homonyms. An example of a homonym is the word “lead”, which can either be a noun as in the metal or a verb as in “to guide”. An inquiry such as “lead dog” could list sculptures of dogs made of the metal as well as dog teams in the Iditarod race. Refining the search to “what is a lead dog Iditarod” could still return mixed results. With the implementation of the Hummingbird algorithm, searches provided results based on the context of the inquiry, rather than trying to find pages with identical keywords.


    The change to contextual search, in addition to providing a higher percentage of relevant results for all users, was also influenced by the more conversational nature of inquiries from mobile device users. When voice commands are used, it’s more natural to ask a question than limiting inquiries to a few key words. As the search phrases became longer, keyword-based algorithms struggled to return listings that answered the questions that were being posed, which required follow-on searches and lead to a less than optimal user experience.


    For businesses that have not changed the foundation of their SEO initiatives to the new search methodology, previously high rankings are likely to start falling, if they haven’t already. The key to success in context-based search is to modify content so that it answers the questions posed verbally by mobile users. As a simple example, a searcher may pose the question “Where is a pizza place in Anytown?” Content that answers that question, which would earn a higher search listing, would include something like “Jack’s Pizza is located at 123 Main Street in Anytown.”


    As Google and the rest of the search engines try to deliver the best user experience possible, the focus is on eliminating listings that don’t deliver the answers sought by searchers. To that end, the listings that are presented will increasingly address the full context of inquiries with the delivery of specific answers. In this environment the SEO campaigns that are modified to answer questions, rather than match keywords to searches, will deliver website and storefront visits which will drive revenues.  

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