Altos Research

Over the past couple of years, we've built our client base with realtors and investors, buyers and sellers, with appraisers and traders, with planners and researchers.

During that time, our products for those folks have taken the form of either detailed analytical reports or simply raw data. Either we do all the analytical work, or you do it.

More and more though, we found that there is a big group of people who need an easy way to solve more unique problems than we can possibly address in our pre-designed local reports, but these folks have neither the time nor the experience to sift through the mountains of real estate data on their own.

We realized we needed a product that lets our clients easily query the vast Altos Research database to get the specific answers they need, and use the output in any number of different ways. Thus AltosXplorer was born.


AltosXplorer is for you if you've ever looked at our report products and said, "I don't need just one city, I need to be able to investigate any stat for any zip in the whole area (region, state, country)." Think about the investor who has opportunities that may come up anywhere in Florida, and wants to quickly compare two markets when a new deal arrives.

Or consider an appraiser who works all over Chicagoland. Any given day he needs to illustrate just a couple of key measures in a neighborhood to augment the rest of the data in his report.

For our Realtor clients, AltosXplorer is a lot of fun too. Previously, in order to use our AltosCharts you needed to formulate a long URL to get the right chart. With AltosXplorer, you build the chart you want with just a few clicks and then click, copy and paste! (See Kris Berg's first foray for the perfect example of how AltosXplorer was intended for our Pro clients.)

Can you tell we're giddy around here? I could go on and on but I'll wrap in a single (albeit multi-claused) sentence:

AltosXplorer is a rich internet application that enables you to do your own analysis, create your own trend AltosCharts, on our full database, and export the data to your own analysis in just a few clicks.

Learn more here. Try it out here.

Enjoy.

I twittered this yesterday, but since it's possibly my favorite press coverage my company has received, I figured I blog it today too.

Apparently Hulk Hogan is getting a divorce. He needs, of course, to understand what's happening in the housing market, especially in Las Vegas where he and his soon-to-be-ex have a condo. Where does a pro-wrestler-turned-reality-tv-star turn for the best insights? Why "prominent research firm, Altos Research" of course.

He also pointed out that Linda Bollea obtained an appraisal before his order to close on the property, and that Terry Bollea obtained his own appraisal several weeks after the order. Terry Bollea's appraisal came in at $1,000,000 less than Linda's.

In a statement issued late Friday, Terry Bollea's attorneys said they, "are gratified" by the ruling, adding, "...the sole justification for this transaction offered by Linda Bollea and her attorneys--that it is a good investment--redefines cluelessness...Nowhere is this more true than in Las Vegas, which the prominent firm Altos Research just this week called 'the weakest U.S. housing market.'"

Glad to help, Hulkster. Glad to help.

We released our National Real Estate Report today. Here's the press release.

Real Estate Report: Housing Prices Down By 0.5% in June

Report measures current real estate data in major markets around the country. Data shows Las Vegas the weakest US housing market with real estate prices down 3.6% in June. Current real estate data shows Denver the strongest US housing market in June with prices up fractionally over May 2008.
MOUNTAIN VIEW, CA July 8, 2008 - he Altos 10-City Composite Price Index showed a decline in asking prices of 0.5% in June and 0.8% for the past three months. Prices of properties listed for-sale increased in 15 of 26 major markets according to the Real-Time Real Estate Report, published by Altos Research, the premier source for real-time real estate data, and market analysis consultancy Real IQ.

Asking prices fell at the fastest rate in Las Vegas - down 3.6% during June - and 7.2% over the most recent three-month period. This is the third consecutive month that Las Vegas has held that dubious honor. Listing prices rose at the fastest rate in Denver - up 2.6% in June and 6.4% over the most recent three-month period.

"While the Composite Index continues to show price declines, the rate of decline has slowed recently and more than half of the markets we track are showing sequential asking price increases over the past three months," said Stephen Bedikian, partner and research director for Real IQ. "Housing markets are local, and this downturn remains largely confined to specific geographic areas of the country with four states in particularly bad shape: California, Florida, Nevada and Arizona."

Listed property inventories increased substantially with the 10-City Composite markets showing an increase of 5.7% during the past three months and 1.9% in June. Inventory rose in 17 of 26 markets with the largest jumps in Los Angeles and San Diego, up 8.7% and 6.1% respectively in June.

Data in the Real-Time Housing Market Report is based on analysis of over one million properties currently listed for-sale in 26 metropolitan markets across the country. The report is the most timely source of housing market data on current market activity.

For the Altos 10-City Composite, the average days-on-market was 109, a slight increase from 106 in May. Eleven of 26 markets had an average days-on-market of over 100. By far, the market with the slowest rate of inventory was Miami at an average of 154 days-on-market. Austin led all markets with the fastest rate of inventory turnover at an average of 72 days-on-market.

"Inventory continues to increase which is typical during the seasonally strong spring and summer seasons," said Michael Simonsen, CEO and co-founder of Altos Research. "The true test will come in the fall when the market experiences seasonal weakness. If inventory, especially foreclosure listings, piles up too quickly, prices may start declining broadly again."

The report examines housing pricing, inventory levels and market conditions in 31 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, San Jose, Seattle, Tampa, and Washington, DC. The first report was published December 7, 2007 and is released every month. Report downloads are available at: www.altosresearch.com.

A couple of events coming up at the end of July:

We'll be at the Inman Connect conference in San Francisco for the week of July 23-25. I'll be speaking in the blogging session on "Content That Hooks Readers" which, if you read this blog, you'll know I'm woefully under-qualified for. The good news is that the session is hosted by Kris Berg, and includes the inimitable Jeff Corbett, Benn Rosales, Ben Martin, and Sarah Hromack. Heavy hitters all. You're bound to learn something.

We've ponied up for a (gasp) sponsorship this time. Make sure you come by and help us pretend it's worth the investment.

The preceding Tuesday July 22 is the Real Estate BarCamp - conveniently also in San Francisco. Which, when shortened to REBarCamp it sounds like a concrete conference, I know, but I assure you it'll be more compelling. At a BarCamp the attendees get to create the conference on the fly - presenting content that you think others care about and interacting with those who know stuff you want to learn. I've been to a few bar-camps including the proto-FOO Camp last year and they're always a super enjoyable experience.

Scott and I thought we'd bring some Altos Research technology goodies to share with our partners and anyone else who wants to learn how to maximize all the Altos products. So if you're on your way to San Francisco for the Inman conference, stretch a day earlier and come for the BarCamp.

We released the latest National Real Estate Report today. You can download it here [PDF].

The data inspects 26 metro markets around the country and tracks home prices, inventory and days on market. We also track the Altos 10-City Composite for a National perspective on the trends.

Here's the press release:

HOUSING PRICES DOWN BY 0.3% IN MAY

Listing Prices Fell in Only 11 of 26 markets

MOUNTAIN VIEW, CA � June 10, 2008 � The Altos 10-City Composite Price Index showed a decline in asking prices of just 0.3% in May. Prices of properties listed for-sale increased in 15 of 26 major markets according to the Real-Time Real Estate Report, jointly published by Altos Research, the premier source for real-time real estate research, and market analysis consultancy Real IQ�.

Asking prices fell at the fastest rate in Las Vegas - down 3.7% during May and 6.5% over the most recent three-month period. Listing prices rose at the fastest rate in Denver up 3.7% and Dallas up 2.2% during May. Prices increased by more than one percent for the month in 11 of 26 markets.

"The weakest markets continue to be concentrated in Florida, California, Arizona and Nevada which all experienced the fastest price increases during the boom times," said Michael Simonsen, CEO and co-founder of Altos Research. "Now these same markets are outpacing others on the downside as foreclosures and price declines continue relentlessly. We�re seeing some stability in many markets outside of these hard-hit states."

Listed property inventories increased substantially with the 10-City Composite markets showing an increase of 7.9% during the first quarter and 3.7% in May. Inventory rose in 25 of 26 markets with the Miami market being the only exception. Inventory actually declined 1.3% in Miami during May and 2.4% during the past three months.

Data in the Real-Time Housing Market Report is based on analysis of over one million properties currently listed for-sale in 26 metropolitan markets across the country. The report is the most timely source of housing market data on current market activity.

For the Altos 10-City Composite, the average days-on-market was 106 � an improvement from 111 in April and 113 in March. Miami experienced the longest time-on-market span with an average days-on-market of 152. San Francisco led all markets with the fastest rate of inventory turnover at an average of 73 days-on-market.

"Continued growth in inventory across virtually all markets will restrain near-term price increases," said Stephen Bedikian, partner and research director for Real IQ. "Markets like Denver and Dallas are showing strength because they did not experience high price inflation during the boom and are showing only limited inventory growth now. Affordability and limited inventory are the keys to a healthy market."

The report examines housing pricing, inventory levels and market conditions in 31 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, Salt Lake City, San Diego, San Francisco, San Jose, Seattle, Tampa, and Washington, DC. The first report was published December 7, 2007 and is released every month. Report downloads are available at: www.altosresearch.com.

REALTOR Magazine is out with their annual 30 Under 30 issue. I'm always a sucker for these types of articles highlighting the young and uncannily-good-looking - no matter the industry.

So I was browsing through this year's list of the preternaturally successful and - waitaminnit - I KNOW these guys! Check the Friends-of-Altos on the list:

Boston's Condo king Mike Dimella

East Bay AltosCharts hound Tyler Moxley

and the inimitable Jon Washburn of ActiveRain

(Even if I'm, ahem, a bit beyond the bounds for being included in the list, I'm ecstatic to see our friends on it. Look out, though, because next year Altos will be gunning for 25% reach.)

Congratulations on the attention, guys. It's well deserved.

Our latest National Real Estate Report is out this morning. The headline this month is that while the Altos National 10-City Composite price fell by 0.6% from last month, prices only fell in 7 of the 25 markets covered in the report. Maybe some signs of life? Too soon to call. Probably just spring.

Here's where you can download the full PDF May 2008 National Real Estate Report.

Here's a chart of our two national housing market composite price metrics.

Here's the full press release:

Housing Prices Down by 0.6% in April 2008

National real estate report sees prices falling in only 7 of 25 metropolitan markets. Real-time real estate data also indicates rising inventories and stabilizing market time in many parts of the country.

Mountain View, May 8 2008 - The Altos 10-City Composite Price Index showed a decline in asking prices of 0.9% over the past three months and continued that decline in April with a decrease of 0.6% for the month. Prices of properties listed for-sale fell in only 7 of 25 major markets according to the Real-Time Real Estate Report, jointly published by Altos Research, the premier source for real-time real estate research,

Asking prices fell at the fastest rate in Las Vegas down 2.7% during April. The largest three-month declines occurred in Las Vegas and Philadelphia, off 5.1% and 4.5% respectively. Listing prices rose at the fastest rate in Denver up 2.6% and Charlotte up 2.1%. Prices also increased by more than one percent in April in Boston, Houston, Dallas and San Francisco.

"While this is not shaping up to be a typically strong spring selling season," said Stephen Bedikian, partner and research director for Real IQ, "we are now seeing price stability or price increases in most markets. During April, only the most troubled markets such as Las Vegas, Miami, Tampa, Philadelphia and Phoenix, continued to show asking price declines."

For-sale property inventories increased in 19 of 25 markets during April. Inventory in the Altos 10-City Composite markets rose just 0.8% for the month and 5.6% during the most recent three-month period. Data in the Real-Time Housing Market Report is based on analysis of over one million properties currently listed for-sale in 31 metropolitan markets across the country.

The report is the most timely source of housing market data on current market activity. For the Altos 10-City Composite, the average days-on-market was 111 an improvement from 119 in March and 122 in February. Miami and Detroit experienced the longest time-on-market spans with an average days-on-market of 153 and 143 respectively. Austin led all markets with the fastest rate of inventory turnover at an average of 67 days-on-market.

"Inventory buildup is typical during the spring selling season but so far it has been fairly modest and that is reflected in the decline in average days-on-market," said Michael Simonsen, CEO and co-founder of Altos Research. "Tight mortgage credit, foreclosures, and economic fears continue to put pressure on the real estate market but if inventory growth remains restrained, we may see supply and demand balance out. "

The report examines housing pricing, inventory levels and market conditions in 31 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington, DC. The Real-Time Real Estate Report is released every month.

Two very cool announcements today from Friends of Altos - both are great examples of real estate data helping people make better decisions in this crazy housing market. I just love this kind of innovation.

Krunching.com

First up is Krunching.com: These guys built an investor-focused site with tons of data about properties for sale, investor metrics, property analysis. You can tell it was built by real estate investors answering their own property analysis questions. The site is super-fast and really pretty (in a web 2.0 sense.)

If you're an investor, Krunching is going to be a powerful tool for you. They're taking a freemium business model - they give away a bunch of great data for free and their power users sign up for paid services. They've built Altos local real estate data and analysis into their premium services, so if you don't buy from us, you can get our data in your Krunching subscriptions. My only complaint is that they've used an OFHEO regional chart on their investment summary page. The feds are telling us what happened to home prices in September. Thanks guys. (Hey Brian - you need an AltosChart on that page! Get with the program!) Krunching is only available in California right now, but it's a great start for a national product. Great job guys.

Homethinking Mortgage

Also launched today is a really cool mortgage market analysis product from longtime Altos partner Homethinking.com. I get questions every day from people trying to understand the scope of the mortgage crisis. The Homethinking guys have taken a huge pile of mortgage data and presented it in a super-clean, very powerful visual interface. Want to know how much exposure your town has to sub-prime loans? Homethinking will tell you. Want to know what percent of mortgage applicants are rejected? Check it out. Huge amounts of information in here. Again, thanks to the feds, this data is a year old. Still, it's better information than the world had access to yesterday. So kudos to Niki and team at Homethinking. Looks fantastic. And it comes in cool embeddable widgets!

We did this fun infographic for the Boston Globe's spring real estate section last week.

City/Town	Average days on market	Median price
1. Watertown	63	$476,911
2. Needham Heights	72	$661,418
3. Arlington	73	$623,993
4. West Newton	80	$947,661
5. Reading	84	$449,514
6. Jamaica Plain	84	$658,687
7. Somerville	85	$338,882
8. Waltham	85	$389,807
9. Newton Centre	86	$924,786
10.West Roxbury	87	$432,925

What we found mirrors much of the rest of the country: the close in, nice neighborhoods are where the demand is. Go further out and time-to-sell a home climbs into the many months range.

Click on any city name for the real estate report for that town.

I've surprised myself, but I'm diggin' Twitter. As far as Internet communication goes, I love the blog for it's ability to reach our customers/friends/colleagues; I'm not a big Facebook user (I find FB mostly useful as a repository for friends photos); and I lean to email over IM.

In a fit of myopia, I held out against Twitter for a year, but now I've been tweeting (yes, tweeting) for a couple months. I've come to the realization that Twitter is the social network I've been waiting for. Twitter's focus on pure communication elevates it above the colleague/friend/acquaintance/follower asymmetry problem in the Facebooks of the web. With Twitter I can listen to people who interest me-whether or not they are my "friend". I don't creep them out when I listen. Likewise, my Twitter followers are people who are interested in me and/or Altos whether or not I've ever met them.

I'll often publish market data nuggets on Twitter that are too finite for a blog post. I'll post info on new products to Twitter before it goes anywhere else. Why? It's easy, and the listeners have, by definition, said they want to know.

So in the interest of developing this communication channel, if you are interested in what I/Altos say/do/visit/publish, then follow me on Twitter.

Still asking, WTF is Twitter? See Tara Hunt's explanation

I did a bunch of press calls last week and they all had one question in common: Everyone wants to know if it's a good time to buy.

Our BusinessWeek article from Friday carries the theme:

Where some see despair, others see hope. Sellers, who were once clinging to boom-time expectations, are trimming asking prices. But the news isn't all bad for buyers. In fact, for some the timing couldn't be better. The lower prices—at least in some markets—are making homes affordable for first-time home buyers and more attractive for investors on the lookout for fire-sale discounts.

Prices are down so much, there must be bargains, right?

Well, yes. But don't kid yourself. Getting a steal on a great property is NOT a slam dunk.

Glenn Kelman at Redfin has an excellent post on the challenges involved with mining for bargains in short sales, foreclosures, and other distressed properties. (aside: Glenn's Redfin corporate blog is consistently cogent and entertaining. If you're at all interested in real estate or startups, you should read it.)

Some of our Wall Street clients are well-financed funds that buy distressed mortgages from the banks. In many cases they're actually taking ownership of hundreds of properties every month. Guess what. As a buyer looking for a bargain, these guys are your competition.

So what's the recipe for investing in this market?

1. Be well-financed. In fact, be over-financed. Even good-credit first-timers are having trouble getting loans this spring. But if you're a well capitalized investor with a solid loan-to-value portfolio and a good relationship with your lender, you have a strategic advantage right now.
2. Build insider channels. Chances are if you're only driving around on weekends, you're going to miss the deals. You'll need to augment your search with other avenues, like foreclosure auctions or even direct lender relationships, to truly capitalize on the opportunities. Kelman points out that Redfin's buyers making offers on short sale properties are only succeeding at a 15% rate. Remember that you're competing against professional investors and specialized Wall Street firms for these deals. Also know that these specialized firms don't really want to be long-term owners, so the opportunity occurs when you work directly with them.
   
3. Do your homework. Know your market and your strategy. How are you finding the property? Where are you going to find them? Has your realtor handled many? Is she already selling some? You already know Altos for market analysis, but there are lots of excellent investment analysis websites (some marvelous Altos partners include Deedquest.com and InvestmentRiches.com, check them out.)
4. Be persistent. There's no question the bargains are out there. But your bid on a short sale or foreclosure will be subject to lender approval. (Kris Berg did a great illustration of the trend San Diego.) That means if you're aiming for a bargain, some of your offers will be getting rejected. That means you'll have to keep shopping.
5. Hope against large-scale bailouts. Every government deal aimed at helping owners ironically hurts buyers. You can argue right or wrong, but if you're a buyer, bailouts shrink your opportunity.

In short, bargain shopping for homes is like any bargain hunting. It takes insight and perseverance. It takes relationships. And above all it takes the financial wherewithal to capitalize when the opportunity strikes. Good luck.

We've been ramping up with a bunch of partners this spring, and we're hitting the road in support of their programs, so for all you Altos Research groupies out there, here's what the 2008 March-April World Tour looks like:

Next week you can find us in Atlanta at the RETechSouth gig hosted by Brad Nix and Matt Fagiolli. I'll be just one of a really solid panel of real estate technology brains sharing insights. If you're in the real estate technology world and located anywhere close to Atlanta, you'll be at this gig.

The following week, April 2, we're off to the Institute for Luxury Home Marking seminar in Miami. Love the folks at ILHM and we're going to be doing more with this group in the near future. Some great opportunities, especially if you're involved in the high-end housing market.

Then, mid-April we're back in So Cal for Dustin and Jim's second 4Realz Education seminar. The first one was a rousing success, with agents getting really powerful internet marketing insights. This time the session is in Orange County. This is a session for anyone ramping up their internet marketing presence. A must-see event.

As always, give us a buzz if you're coming to any of these events and let's get together.

Our National Real Estate Report measuring current real estate data trends in a couple dozen housing markets around the country was published today. You can download the PDF here.

Highlights from the March 2008 National Real Estate Report:

• The Altos 10-City Composite median home price declined by 0.4% in February. That's a slightly slower pace than the 1.6% three month decline from December 2007 - February 2008.
• Central cities like Denver and Dallas continue to outperform the coastal bubblevilles. By outperform, I mean housing prices were essentially flat. The Dallas Morning News already picked up the story. As I said in the article, Dallas never climbed as high as say, San Diego, so it has less to fall.

Here's the press release

MOUNTAIN VIEW, CA - March 12, 2008 -
The Altos 10-City Composite showed a decline in asking prices of 1.6% over the past three months and continued that decline in February with a decrease of 0.4% for the month. Prices of properties listed for sale fell in 15 of 22 major markets according to the Real-Time Real Estate Report, jointly published by Altos Research, the premier source for real-time real estate
research, and market analysis consultancy Real IQ™.

Asking prices fell at the fastest rate in San Diego, down 3.0% during February and 5.2% for the most recent three-month period. Prices also fell by more than two percent in the Detroit, Los Angeles and Las Vegas markets during February. Prices increased in Chicago, Charlotte, New York, Dallas, Phoenix and Houston during February and were flat in Seattle.

"We are seeing some stability in asking prices as a result of seasonal reductions in inventory during the past winter months," said Stephen Bedikian, partner and research director for Real IQ. "Unfortunately we also saw an increase in listed property inventories this month which is atypical this early in the year. Only a sustained reduction in inventory will arrest the market's fall nationally."

For sale property inventories increased in 19 of 22 markets during February. The Altos 10-City Composite showed a supply increase of 2.5% for the month. Property inventories declined in only three markets: Chicago, Indianapolis and San Francisco.

Data in the Real-Time Real Estate Report is based on analysis of over one million homes currently listed for-sale in 22 metropolitan markets across the country. The report is the most timely source of real estate data available.

"Inventory growth combined with the recent rise in mortgage rates and reported job losses does not bode well for future price stability," said Michael Simonsen, CEO and co-founder of Altos Research. "We expect housing price declines to resume in earnest during the next several months."

The Real-Time Real Estate Report also found that time-on-market remained high. Miami and Detroit experienced the longest time-on-market spans with an average days-on-market of 146 and Minneapolis was close behind at 145 in February. Seventeen of 22 markets had an average days-on-market of over 100. Denver led all markets with the fastest rate of inventory turnover at an average of 77 days-on-market, followed by Dallas at 79 days.

The report examines housing pricing, inventory levels and market conditions in 22 major U.S. metropolitan statistical areas (MSAs): Atlanta, Austin, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington, DC. The Real-Time Real Estate Report is released every month.

Links:

The Altos Real Estate Data services

This month's National Real Estate Report PDF

RealIQ

Some Altos coverage in Wall Street insider publication Merger Market recently. I met writer Hana Askren in New York last month at the O'Reilly Money:Tech conference. Her article on us is out now. Merger Market's output is all behind a paywall, so here's a snippet of the contents.

Note: Since this pub writes about mergers and acquisitions, the article is centered on the very hypothetical question, Who might acquire Altos Research? With that caveat, enjoy some rampant, totally unfounded speculation:

Altos Research, a Mountain View, California-based real estate data company, could become a target for strategics in the information industry...The startup is profitable, self-funded, and is not actively seeking investments, Simonsen said. Several companies have approached Altos seeking strategic partnerships and some have sought to buy a stake in the company, he added, although none have yet pursued a buyout. One of these strategics may eventually buy the company, he said, but declined to name potential bidders, adding that Altos already has "several relationships in place" with partner companies.

...

An industry executive ... said it would make sense for title insurance companies to acquire a real estate data startup like Altos in order to add to their data offerings. This news service reported that First American has acquired a number of data and analysis companies in recent years, including Basis100.

...

Paul Kedrosky, a venture capitalist in the financial technology industry, also said it would make sense for Altos to be acquired as a "tuck-in" by companies like Fidelity National Information Services or Core Logic. He added that a company like Thomson would also find Altos attractive, as an addition to its information services...A futures exchange might acquire Altos, said the industry executive. Kedrosky agreed, saying that exchanges are becoming aggressive about providing more services to listed companies...Altos collects weekly real estate data and sells it to individual brokers, realtors, and real estate information companies, said Simonsen, as well as Wall Street firms and hedge funds which use the data for trading. Because of the nature of real estate transactions, he added, publicly available data can be more than six months old.

...

The company's first revenue-producing year was 2007 and it is growing at a rate of 20% each month, Simonsen said. While not disclosing revenues, he said that the company has thousands of customers and half of its revenue comes from Wall Street firms. Altos uses Farella Braun & Martel for its legal advising and does not have a relationship with an investment banker. Altos was founded in 2005 by Silicon Valley executives Simonsen and Jason Buberel, who own a majority of the company.