DURHAM- Things at Moticity are really heating up.

A provider of mobile solutions for some of the big boys in cellular service, the company is boasting more than 10 million consumers worldwide. With the launch of Fuel, the company’s mobile platform, all eyes are on the little guy.

In a recent Q&A with LTW, Ryan Wuerch, Motricity CEO and chairman shared, “Motricity unifies the mobile content ecosystem, simplifying and streamlining the interactions between disparate content developers, publishers, operators and subscribers.”

The full Q&A follows here:

Even in a better investment climate, VCs are more demanding than ever in terms of due diligence. Why should investors be interested in your firm?

While Motricity is not actively seeking funding (after raising $27 million in October 2004), our current investor base (including Tier-1 firms such as TCV, NEA and Intel) believe that Motricity’s market-leading technology and services, outstanding proven management team and strong customer relationships comprise the solid foundation necessary for Motricity to continue to defend and grow its sustainable market leadership position in the explosive growth sector of wireless content and communications.

What’s your “elevator pitch” in a paragraph or a few sentences?

Motricity is the premier provider of mobile content solutions to the wireless industry, uniquely powering over 120 million mobile subscribers through global partners such as Cingular Wireless, Verizon Wireless, mmO2, Amazon.com, palmOne and many others. The company is also one of the world’s largest providers of mobile content through its network of consumer websites and channel partnerships, reaching over 10 million consumers worldwide. From games to business applications, and from ringtones to eBooks, Motricity powers the entire spectrum of mobile content delivery solutions for consumers and business partners.

What is the “pain point” (or points) you address for your customers?

Our Fuel platform enables mobile operators to improve user experience and increase brand loyalty resulting in higher Average Revenue Per User (ARPU), decreased customer loss (churn), and decreased capital and operational expenditures in the delivery of mobile content and data.

What makes your company unique? Do you have a proprietary and/or a patented technology? Please explain why it is unique and what the status is of any patent filings.

Motricity’s innovative, patent-pending Fuel platform and unique multi-pillar strategy enable mobile operators, media companies, etailers and mobile content portals to increase revenue, attract and retain mobile customers, effectively manage the mobile ecosystem and deliver a more compelling user experience.

What makes your product(s) and/or services unique vs. your competition? (Who is your competition, and what do they offer?) If you have no competition, why not?

Fuel is an open platform that empowers wireless carriers to manage the mobile content ecosystem (versus proprietary, closed platforms such as Qualcomm’s BREW platform).

Motricity unifies the mobile content ecosystem, simplifying and streamlining the interactions between disparate content developers, publishers, operators and subscribers. The company’s managed services focus on the business process as well as the technical implementations and are designed to enhance the end user experience and improve merchandising to consumers. This approach differentiates Motricity from its competitors who offer technical platforms without the focus on market environment and concern for the experience of the end user.

Does your company already generate revenue? If so, how much? Are you cash flow positive?

Motricity does generate significant revenue today, but as a privately-held company we do not disclose our financial details.

What is your target market? What is the size of that market in terms of dollars? What share of that market do you believe you can win?

Motricity provides a mobile content delivery platform that targets the 2 billion mobile subscribers globally. While other platform providers address only a small portion of the mobile market, Motricity has the unique ability to address the entire market of mobile subscribers.
The Yankee Group recently predicted that the U.S. mobile data market alone will represent $15.6 billion by 2008.

What will you do with the invested funds? What is the timeline for product delivery? If you have existing products and services, how will additional funding help you expand your company, if that is the intention, or will you develop new products?

As I mentioned above, Motricity is not currently seeking new funding. We are using the $27 million in funding raised in October of last year to expand our business globally and close strategic acquisitions.

What do you want from an investor other than money?

Motricity’s investors have provided much more than just money. They have provided strategic guidance and support, made customer and partner introductions and added value across the entire company.

Why will investors be impressed with your management team? Include a brief background about key executives.

Collectively, the Motricity management team is dynamic, innovative and experienced; each with a strong personal dedication to building a world-class company using their past successes as a foundation for future growth.

  • Ryan Wuerch, CEO and Chairman, has 14 years of senior management experience. Prior to Motricity, Wuerch spent three years as a partner and president of Learning 2000; and was the senior vice president of ShapeRite, a leading nutritional supplement manufacturer. Under his leadership, ShapeRite earned a ranking of 44th in Inc. Magazine’s annual list of the 500 fastest growing privately-held companies in the nation.
  • Michael Robinson, President of Motricity’s Mobile Content Solutions Group, is a seasoned and successful senior executive. He brings 30 years of experience, 18 of which were spent in senior level management positions with Sprint where he developed PCS Vision and drove industry leading ARPU from mobile data services, and earlier was one of the founding members of Sprint PCS, now the 3rd largest wireless carrier in the US.
  • Matt Petzold, CFO, served as the CFO of Verestar, a $250 million satellite services provider, and UUNET where he managed a financial staff in excess of 300 with operations in 29 countries – during a period of growth from $20 million to $4 billion in annual sales and employee growth from 150 to 10,000.
  • Jud Bowman, CTO, founded Pinpoint Networks, taking a leadership position in providing software and services to mobile operators and raising $20 million in venture capital. Bowman has been named by MIT’s Technology Review magazine as one of the world’s “Top 100 Young Innovators.”

What is the exit strategy for the investor from your company? Are there potential strategic alliances with larger companies? Do you wish to take the company public? Or do you wish to grow the company and either sell it or acquire other companies?

While Motricity is committed to delivering shareholder value, we are not focused on one specific exit strategy. Instead we are focused on continuing to build a strong business with solid technology that will deliver customer value for years to come.

Visit: www.motricity.com