Monday, May 30, 2005

Name: SquareLoop

Location: McLean

Funding: The company is self-funded, although executives are seeking $500,000 to $750,000 in seed money. They also hope to raise $3 million to $5 million in Series A funding during the first quarter of 2006.

Big idea: SquareLoop is developing technology to deliver location-based messages to cell phones without tracking cell phone users. The technology could be used to deliver homeland security messages, traffic alerts or mobile advertising to a subscribers' cell phones. Joe Walsh, business development and operations director, said the technology can increase the relevancy of the messages a cell phone user receives by adding location and time to the context, and could also alleviate privacy concerns and reduce network overhead.

How it works: "Your mobile phone knows where it is," Walsh said. "We embed in the message the location where the message is valid and let the mobile phone decide whether or not to display it." A user can configure the phone to determine which messages to display and which to ignore.

Where the idea was hatched: Virginia's Center for Innovative Technology and Mitre Corp., a nonprofit firm that provides technology consulting for the government, came up with the technology while working together on a technology transfer program.

Example of use: Mobile phones can track where they have been, Walsh said, so if, for example, there were an E. coli outbreak at a music festival, homeland security officials could send a message the next day to everyone who had been at that festival, directing them to seek medical attention if they exhibit symptoms. If you're in the vicinity of a traffic accident, an advisory could be beamed to your phone before you miss your chance to take a detour. And marketing or advertising agencies could message coupons to people who are near stores selling their products.

Big-name customer: None yet, but Walsh said he hopes to begin adding customers by the fourth quarter of this year. Over the long term, Walsh thinks most of the company's revenue will come from marketers.

Price: Localities would pay to send homeland security messages. Mobile phone users would pay about $4 a month for traffic alerts. Companies would pay for ads.

Founded: October 2004

Who's in charge: Tom Stroup, president; Walsh, business development and operations; Rich Biby, technology; and Rich Heilbrunn, finance.

Employees: Four

Web site: http://www.squareloop.com

Partners: SquareLoop licensed two patents from Mitre that form the basis of the company's technology.

What the name means: "If you look at delivering a message you draw a square or a loop on a map and say, 'I want to deliver a message inside of that area,' " Walsh said.

Quote: "Advertisers refer to cell phones as the third screen, in addition to television and computers," Walsh said. "As it becomes harder and harder to advertise on television, people are looking for new ways to reach people."

-- Andrea Caumont