1.
28 Washington Busint:ssJoumal I April 27-May 3, 2012
BizSmarts
Calendar
This week
• Social Madness: With this informa-
tion webinar, you can learn more about
-
the Washington Businessjoumal's local
and national #Socialr.,"adness competi-
tion and find out how to make the most
of your nomination_ May 1, 10 a_m. Free.
www.washingtonbusinessjournal.com
• For Lemonheads: The Loudoun
County Chamber ofCommerce's Lead-
Share lunch will feature Ara Bagdasar-
ian, who helped create the Lemonhead
Movement, an initiative to empower and
inspire the next generation of entrepre-
neurs, Belmont Country Club, Ashburn.
May 2, 11:30a.m.Members $30, non-
members $45. www.loudounchamber.org
• Business Plans: This is the first in a
series of six workshop sessions with the
-
Rockville Women's Business Center to
help you develop your business plan. 95
Monroe St., Rockville. May 2,1 p.m. $75.
www.rockvillewbc.org
• Smart Growth: The Coalition for
Smarter Growth's ninth annual Livable
Communities Leadership Award honors
Evan Goldman of Federal Realty Invest-
ment Trust, for his involvement in the
-
White Flint Partnership and new vision
for the White Flint Metro. National Trust Companies that create software for businesses, unUke those that develop consumer-oriented techllology. generally do not make their
for Historic Preservation. May 2, 6:30 products available for free. But Alex Murguia says he has figured out a way to do that alld still make money. Photo byJoanne S. Lawton
p.m. $100. www.smartergrowth.net
• Entrepreneur Spotlight: This event
from the Northern Virginia Technology
Council provides an opportunity for
startups seeking seed and earlY'stage
funding to present their concept to an
audience of accredited investors. The
A free enterprise
Tower Club, Vienna. May 3, 8 a.m. Free.
www.nvtc.org
Financial software company inStream Solutions takes viser has a client whose son is turning 9 years
old, InStream can show that 80 percent of his
'free' into uncharted territory with new offering counterparts in a similar situation advise their
• Ball on the Mall: The L'Enfant Soci- clients to open a 529 education savings plan.
ety will host the Fourth Annual Ball on By Bill Flook The basics Without revenue from licenses or sub·
the Mall to raise funds for National Mall scriptions, Murguia had to get creative.
Company: inStream Solutions Inc.
restoration efforts being undertaken by InStream makes money essentially as a
the Trust for the National Mall, a non· Free-to-use is as common as kitty pictures in What it does: Offers free-to-use enterprise marketplace. When an adviser gets an alert
profit partner of the National Park ser· the consumer software world. software for companies that a client is due for a certain service, in-
vice. National Mall, entrance on Madison Facebook Inc. populari7.ed what is now the Leadership: CEO Alex Murguia Stream supplies a list of companies that can
Avenue and 13th Street. May 5, 6 p.m. prevailing business model for consumer Web provide that service and gets a cut of any
LoL1tion: Alexandria
$150 to $300. www.nationalmall.org companies: Build an audience as rapidly as resulting sale, paid by the service provider.
possible, then figure out how to make money £mptoyees: About 12 That strategy is similar to the one used by
off of it. Free has become the new norm. etients: Roughly 700 financial advisory firm Personal Inc., a privacy and data'security-
Not so for enterprise software, which fre- clients centered social network based in George-
May 7-13 quently requires users to pay licensing and Startup costs: $700,000 town. Personal, also free to use, is estab·
other fees. Much more revenue has to come lishing a marketplace that would connect
from far fewer users. Naturally, giving your Source of startup funds: Friends and family marketers to its users and take a percentage
• Building Awards: The D.C. Building
Industry Association will celebrate its work away for free just doesn't make sense Website: www.instreamwealth.com ofany transaction - though it is geared more
28th Annual Building Industry Achieve· in most cases. toward cars and other goods.
ment Awards, with honors going to That's why Alex Murguia's startup is such and alerts they can use to track and manage lnStream's business model is a departure
james Abdo of Abdo Development, Gail an anomaly. Murguia, a doctorate·holding their clients' data. The service is geared to- from competing players like Intuit Inc.'s
Edwards ofDCBIA and Gregory O'Dell managing principal at McLean Asset Man· ward the secondary services a financial ad- MinLcom and D.C.·based HelioWallet LLC,
of Events D.C. Hilton Washington Hotel. agement Corp., launched Alexandria·based viser provides beyond managing investments. both personal finance service companies
May 10, 6:30 p.m. $290. www.dcbia.org in5tream Solutions Inc. in November and has It pings an adviser when, say, rates are ideal that take the place of a professional adviser.
seen 700 financial advisory finns adopt his for clients to refinance their mortgages. HelloWaliet has driven growth by selling
company's software. And it doesn't cost the adviser a dime. its software directly to Fortune SOO compa-
InStream provides advisory finns with tools "Initially, I was hesitant because I thought nies, which then pass it on en masse to their
May 14-20 'Well, does that imply cheapness?'" Murguia employees. Mint builds its audience consum-
says. "The reality is, no it hasn't. It's been er by consumer.
• Financial Talk: The Tech Council of quite the opposite," "It's almost like having MinLcom on ste·
Maryland has invited two rock stars of A free product has two key advantages. roids," Murguia says, "Because you have an
financing, New Enterprise Associates Perhaps most important, it speeds adoption adviser in between who is actually pretty
Inc.'sjim Barrett and The Carlyle Group's Initially. Iwas hesitant because - something the consumer Internet world well·motivated to justify his fee and provide
Frank Finelli, to lead its regular network- Ithought 'Well. does that imply figured out long ago. And with a larger user solutions for you that make a lot of sense."
ing breakfast for financial executives. cheapness?' The reality is, no it base, Murguia has bigger data sets to work InStream has raised $700,000 in a friends·
Bethesda Country Club. May 17, 7:30 with, opening up opportunities in analytics and·family seed round and maintains a staff
a,m.Members $40 to $50, nonmembers
hasn't:' that financial advisers can use to help their of about a dozen people.
$90. www.techcouncilmd.com AIel( Murguia, CEO, inStre<lm Solutions Inc" clients make decisions.
commenting on his free-to-use software. He uses this theoretical example: An ad- bjlook@bizjvurnals.com