Former SpeechWorks chief executive out raising money for Xtone, startup that wants to speech-enable mobile apps
Now, the former CEO of SpeechWorks, Stuart Patterson, is out talking to local venture capital firms to raise money for another speech-related business. Xtone, founded in Virginia in 2004, wants to help developers of mobile apps add a layer of "Siri-like" speech functionality to them. Patterson tells me that once he closes the company's next round, he'll be setting up shop in Boston and hiring staff up here; Xtone already has several consultants in the area — some of them former SpeechWorks employees.
"We're not in core speech technology," says Patterson, who became CEO of Xtone in January. "We're building a platform to help customers develop new services that use this new modality of speech with their mobile devices, which has been proven by the success of Siri." He says the Xtone platform will let app developers add speech functionality without having to develop it differently for different mobile operating systems, like Apple and Android: "It's a write once, run anywhere platform." (The simplicity of using Xtone's platform to script conversations that users can have with an app will make Xtone more appealing for developers, he asserts, than trying to work with different APIs to take advantage of the built-in speech recognition capabilities of different operating systems.)
In a way, Xtone sounds like it's trying to position itself as a next-generation SpeechWorks: where big companies once relied on speech recognition to help them handle incoming calls more cheaply, now they can use speech-driven mobile apps to deliver more efficient customer service. "We think this intelligent device known as the smartphone will be able to handle these web-based transactions really successfully with speech, and that will completely replace the old IVR world." (IVR stands for "interactive voice response" system, the sort of thing that SpeechWorks used to build.)
Xtone raised $5 million in 2008, and Patterson says he helped raise a small bridge round after he joined the company. One local venture capitalist, whose firm had backed Vlingo, a mobile speech recognition startup from ex-SpeechWorks CTO Mike Phillips, confirmed that his firm is in the midst of doing due diligence on the company.
About Scott Kirsner
Scott Kirsner was part of the team that launched Boston.com in 1995, and has been writing a column for the Globe since 2000. His work has also appeared in Wired, Fast Company, The New York Times, BusinessWeek, Newsweek, and Variety. Scott is also the author of the books "Fans, Friends & Followers" and "Inventing the Movies," was the editor of "The Convergence Guide: Life Sciences in New England," and was a contributor to "The Good City: Writers Explore 21st Century Boston." Scott also helps organize several local events on entrepreneurship, including the Nantucket Conference and Future Forward. Here's some background on how Scott decides what to cover, and how to pitch him a story idea.
Subscribe via e-mail
More from Scott
December 9: Web Innovators Group
Demos of new mobile apps and web ventures at the Royal Sonesta Hotel in Cambridge. Free admission; cash bar.
December 10: Fintech Demo Day
Short demos from startups in the financial technology realm.
December 11: Unpitch
Entrepreneurs and investors sit down for lunch, advice, and feedback. Entrepreneurs must apply to participate.