The next Bill Gates?         

North Valley entrepreneur launches Web‑based software
by Barry Cohen

NORTH VALLEY – Could North Valley resident and entrepreneur Michael Roberts be the next Bill Gates?

Even though their bank accounts are separated by numerous decimal points, there are similarities between the two. Both are from the state of Washington. Both left college before obtainingdegrees. And both developed unique software products.

In Gates’ case, it led to the creation of $44‑billion giant Microsoft Corp.

Roberts’ seven‑year‑old company Velocityscape is considerably smaller. However, it is already a market leader in Web data extraction products and services. Roberts, 28, describes his background as “part electrical engineer and part economist.” He founded the business and serves as president, leading a four‑person team that works out of a Tatum Ranch house he rents.

Velocityscape just launched a new research tool called SpyFu that promises to help internet marketers learn about competitors’ online advertising.

During the test period, anyone can log on to SpyFu.com’s Web site and download reports and statistics for free, said Roberts.

“The service is geared to businesses engaged in e‑commerce or those thinking of launching a software product,” he explained. “Our site will provide information on competitors and the amount of advertising they’re doing on the Web.”

Roberts believes any company that manages an advertising budget of tens or hundreds of thousands of dollars needs the company’s custom analytics. “There is just so much money to be saved and opportunities to be discovered,” he  added.

Access to SpyFu will remain free during the test period. After that, Roberts said a subscription will cost about $20 a month, a figure well below that of competitors.

SpyFu is powered by Velocityscape’s data extraction tool, Web Scraper Plus+, which collects search results every day from the Google Web site and loads them into a database. The company has sold 1,000 licenses for the software and numbers among itscustomers such well known names as Microsoft, Cisco Systems, and Dun & Bradstreet.

Roberts said the name SpyFu is meant to describe “the bombastic fighting style of spies.” The product is the successor to an earlier software tool called Googspy that Roberts created in just four days. By contrast, SpyFu took eight months to build due to the math and computing power it offers.

In addition to the Web Scraper products, Velocityscape provides a full line of consulting services, product training, and hosted extraction services. Roberts said consulting and training account for about 60 percent of the company’s revenues.

The charismatic Roberts and Bill Gates have another thing in common: a social conscience.

Earlier this year Gates announced that he will transition out of a day‑to‑day role in Microsoft to spend more time on his global health and education work at the Bill & Melinda Gates Foundation. Gates endowed the foundation with nearly $29 billion last year.

Roberts’ contributions are on a much smaller scale but just as heartfelt.

The company has donated more than 250 Web Scraper licenses to higher education, developed a site to help Hurricane Katrina survivors, and donated software and services to numerous nonprofit organizations.

Velocityscape has also agreed to donate $27,000 in software and consulting to the Web site operated by parents for Megan’s Law, which requires law enforcement authorities in the United States to identify sex offenders to the public.

“At the end of the day, if you can’t be proud of how you made someone’s life better, then why do business at all,” said Roberts.

Roberts said Velocityscape is turning a profit and that he has had inquires from venture capitalists about buying the company, which he values at about $1.2 million based on earnings

He said he expects to sell eventually, but only after it doubles from its present size.

When he does turn over the keys to Velocityscape, Roberts said he plans to use his share of the proceeds to start another venture.

“I love this stuff,” he explained. “I’ll never stop doing it."