Startup Stories: Freddy Mini of Netvibes

In a time when layoffs abound, it’s unusual to find a startup that is not only retaining staff, but in fact adding them as Netvibes, the provider of customizable start pages is doing. In fact there’s a lot to be surprised about with Netvibes. They have forgone the obvious route of ad dollars and experimented with a series of innovative and successful monetization strategies including enterprise services and brandable products, while still sticking to their core product. CEO Freddy Mini took some time out to talk to the Netsetter about the process of consolidating a startup, the French startup scene and the future of start pages.

The Netsetter:
When you took over from founder Tariq Krim last year it was described as a move to take the “company to its next stage of growth”. How has it gone? Do you think every startup gets to a point when the founder steps out of the lead role?

Freddy Mini:
Well, despite a challenging environment, Netvibes managed to not only stick to its business model, but actually grow its revenue consistently, quarter over quarter. I believe every startup is different and has to be different by nature, so I wouldn’t take the risk of giving a general statement as such. In regards to Netvibes, as previously announced, Tariq and I discussed and planned for this evolution.

The Netsetter:
Despite the economic tumult, you’ve stated that Netvibes is on track to hit the September 2009 break-even goal. This is an impressive achievement by any standards. How did you achieve this? Were you prepared at all for the change in financial seasons late last year?

Freddy Mini:
Netvibes determined to set a challenge for itself mid-last year when we rolled out an 18 month plan to achieve profitability in Q4 2009. This means we created this goal for ourselves before and independently of the global financial crisis. While the crisis slashes the marketing budgets and lengthens the decision-making processes of some potential clients, the reality is that we’re truly lucky to not depend on display ad revenue like other startups. With growing inventories and shrinking demand, it’s causing many people to question the ubiquitous display ad model that the industry has come to rely on.

The financial crisis actually helps us in certain ways by forcing companies to reevaluate their marketing mix. Now companies are asking what is the engagement and direct engagement they’re getting for their dollars, not just the number of clicks. Personalization is the ultimate form of engagement and Netvibes is the first and best personalization platform out there. Although we’re known for our consumer personalized startpage, Netvibes.com, which has millions of users in more than 100 countries, our business comes from the powerful personalization platforms and widget marketing services we offer to marketing agencies, brands, publishers and enterprises.

The Netsetter:
As a regular (free) user of Netvibes I wasn’t aware of the branded “Premium Universe” product you had available until only just recently. To see it in use with companies like Alot.com, Le Figaro and Tagged is great and no doubt has played a large role in bringing Netvibes to it current positive financial status. How do you go about balancing the needs of a paying, enterprise part of the business with the everyday users (like me)?

Freddy Mini:
Netvibes free public pages, also called “Universes”, are static and run under our Netvibes domain. Netvibes Premium Universe, also called “personalized microsites” by ad agencies, are publicly personalizable pages where users can customize themes and layouts, add, remove and move widgets–all under our client’s domain. Here we can iframe netvibes to immerse it within our client layout, ads and/or navigation. Netvibes Premium Universe is an instant, turnkey, drag-and-drop publishing solution that requires zero programming. It can be entirely designed and, even better, managed by a marketing or an editorial person, and later handed off to clients–never touching the hands of a programmer or IT person–because it is so easy to maintain. Similar to how iWeb made publishing easy for consumer, our solution shows more and more the potential of Netvibes as a widget based publishing tool to make life easy for interactive marketers. Netvibes Premium Universe comes built-in with all the personalization, social networking and widget content features that has made Netvibes.com such a success.

For large companies that are looking for even more control, Netvibes Enterprise essentially enables them to install our entire platform on a client server, enabling them to manage their own security and level of customization. Our Enterprise product also has features we don’t use on Netvibes.com, like directory authentication and behaviors.

The Netsetter:
Was the Premium Universe and Premium Widgets strategy the Netvibes plan all along, or did it evolve over time? And if it wasn’t the original plan, how did you come to it?

Freddy Mini:
They both reflect of our product vision. I don’t believe you can have a product monetization strategy apart from a product development plan.

The Netsetter:
Freddy, you have some impressive startup credentials even before Netvibes, as cofounder of musicMe and Managing Director of CNET Networks Europe. As such, how do you feel the French startup scene compares to the Silicon Valley area we hear so much about in the press? Are there any especially promising French startups you can tell us about?

Freddy Mini:
I was happy and not surprised to read last week that the largest age segment for Twitter user was 45-54. I’ve been working on the Internet world since 1995. For 14 years, I’ve heard with that old and obvious statement: the internet will change everything. And it will. I say “will” because I believe we’re still at the beginning. But once the statement made, we all seem to go back to our routines. My point is: let’s stop thinking that the future of the Web rests entirely on the shoulders youngsters in Silicon Valley. If the Web has taught us anything, it’s that age and location are not important. What matters is motivation and vision. There’s definitely a lot of creativity in France, and I’m very proud of that, but there’s also a lot in other countries as well.

The Netsetter:
Last year Guy Kawasaki launched his AllTop service with the stated purpose of taking RSS to a more mainstream audience. How do you think the AllTop service compares with Netvibes in terms of capturing that audience? Do you think the masses will ever take to RSS or is it always going to stay in the tech/early adopter crowd?

Freddy Mini:
Yes, I think so. But I also believe the chasm in between early adopters who are comfortable with technology and mainstream will be crossed only once the technology itself becomes invisible. There’s a reason why books are still around (and why publishers can charge such a high premium for hardcovers). I see things like the Kindle making RSS more invisible for consumers who are used to picking up a print paper. I foresee 2 axes: intelligence in feature, for example with sophisticated layouts to make the reading closer to a magazine than a 80’s computer listing, and intelligence in content, to get personalized delivery and discovery at my fingertips. And that’s what we’ve done with Netvibes, making RSS look more like a magazine that’s 100% personalized for you. The future is all about services, not the tools or technologies themselves.

The Netsetter:
What’s next for Netvibes? How do you see the company evolving?

Freddy Mini:
Startups, by nature, must have big dreams. I believe the future of the Internet is its Personalization. I want to see an Internet for me, where I can control everything, and where I’m not bombarded with information and ad overload. I believe web 1.0 was feudal, publishers were masters and audiences, slaves. Then web 2.0 brought emancipation to the people. But in this new world, there is no reason for the movement to stop. The next step is for each individual to become the master of their own Web. For that we gonna need some Personalization help. How will consumers personalize and gain control of their Web? How will businesses and publishers form a democratic and mutually beneficial relationship with these new consumers? Netvibes is here to answer these questions.

Thanks so much for your time Freddy!