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Cambrian House

Mistakes will be made. But if a person is essentially right, the mistakes he or she makes are not as serious in the long run as the mistakes management will make if it undertakes to tell those in authority exactly how they must do their jobs.
William McKnight, 3M



For Immediate Release

Media Contact:
Shelley Kuipers


Agreement Focuses on Emerging Trends in Online Collaboration

May 20th, 2008 – Cambrian House today announced an agreement where it sold certain assets to Spencer Trask Collaborative Venture Partners (STCVP). STCVP, a member firm of Spencer Trask & Co, has been working for the past year researching the emerging trends in collaboration to support the acceleration of relevant innovation for today's pressing social and economic problems.

"The Cambrian House crowdsourcing community has attracted 50,000-plus smart, creative people who work together to turn ideas into real, successful businesses," said Michael J. Sikorsky, chief executive officer of Cambrian House.

Michael J. Turillo, Jr., chief executive officer of STCVP, said they were impressed with Cambrian House's unique methodology and algorithms with its ChaordixTM suite – to harness the collective problem-solving and creativity capabilities of the Internet in identifying novel ideas suitable for venture funding and support regardless of geographic location.

"We are working to develop the next logical step in the evolution and growing sophistication of online collaboration by creating virtual environments where innovation creation can occur through the wisdom and input of a very broad community of experts and problem stakeholders," Turillo said. "It mirrors what we already know in computing; that parallel processing and cloud computing can greatly expand the reach, brainpower and thinking needed for problem solving."

Since launching in 2006, Cambrian House quickly became recognized in crowdsourcing theory and technology. Simply put, crowdsourcing is the act of taking a task traditionally performed by an employee or contractor, and outsourcing it to a generally large group of people, in the form of an open call. The term has become popular with business authors and journalists as shorthand for the trend of leveraging the mass collaboration enabled by Web 2.0 technologies to achieve business goals.

The sale to Spencer Trask is the natural next step in Cambrian House's ChaordixTM strategy from hosting and developing a mass crowdsourcing community itself, to instead move behind the scenes to support partner communities on the ChaordixTM crowdsourcing platform. Cambrian House chose Spencer Trask as an opportune new home for its community members.

After the transition of members to Spencer Trask, the Cambrian House crowd sourcing community will no longer be active. Cambrian House will continue to develop its portfolio companies, including GwabsTM, Greedy or NeedyTM, and the ChaordixTM crowdsourcing platform.

About Cambrian House

Launched in 2006, Cambrian House began as a crowdsourcing community using wisdom of crowds based approach to discover new business and technology ideas.  Today, Cambrian House focuses on developing companies which emerged from its crowdsourced discoveries. The Cambrian House portfolio includes GwabsTM, Greedy or NeedyTM, FilmRiotTM and the ChaordixTM crowdsourcing platform. For more information, please visit us at www.cambrianhouse.com.

About Spencer Trask

Spencer Trask is a private equity firm that transforms bright ideas into great companies. Through a collaborative network of business leaders, domain experts and co-investors, Spencer Trask builds market-leading companies with a sustainable competitive advantage. Spencer Trask Collaborative Venture Partners, LLC, will expand upon Spencer Trask's current approach to business by harnessing the power of social media and mass collaboration to reinvent how seed venture capital is invested in innovative startups. For more information, please visit us at www.spencertrask.com.