VC and Money RSS

The OnHollywood VC Survey

Packy Kelly — Mon, 12 May 2008 13:59:32 -0700

KPMG is excited to be a sponsor of the 2008 AlwaysOn OnHollywood event. The power structures in the entertainment industries are shifting. Or are they? This event will bring together the leaders from the most recognized media and entertainment companies and the ones looking to disrupt the industry. There will be ample opportunity to hear from the people making the biggest splashes in the marketplace.
[...]

Lightspeed Closes $800M Fund

AO — Mon, 12 May 2008 12:04:02 -0700

Startups better be thinking global from the get-go if they want in on Lightspeed's Fund VIII. The $800M will have a heavily international focus, managing director Ravi Mhatre told AO.

[...]

Jurvetson: We Can Create Life

AO — Mon, 12 May 2008 12:12:45 -0700

DFJ's Steve Jurvetson is bullish on nanotechnolgy, and he believes the future is just a few years away...

[...]

Biz360 Secures $10 Million

AO — Thu, 08 May 2008 14:15:34 -0700

What does an economic downturn do to VCs? Apparently, they focus on business services and products. Biz360's round is the latest in a slew of business IT fundings.

From the press release:

Biz360 Secures $10 Million in Funding to Expand Product Line and Boost Marketing and Sales Personnel

Strategic investment led by Foundation Capital, with full participation of Granite Ventures and Scale Venture Partners

[...]

Good Morning, Vietnam

bradfeld — Wed, 07 May 2008 16:08:52 -0700

Yeah - that was one of my favorite movies of my youth - I've always loved Mork. I guess that's part of the reason I moved to Boulder. The title of this post is nonsensical - I just wrote what came to mind because this is going to be another of my "here's what I found interesting on the web this morning" posts. I've got six for you today instead of five. Going forward,

[...]

How to Ask for the Order

joshkopelman — Wed, 07 May 2008 16:15:42 -0700

I just read Fred Wilson's blog post about the need to ask for the order. I completely agree -- if you don't ask, you don't get.

However, I believe that there are different ways to ask for the same order. And the way that you ask can either increase or decrease the odds of a successful outcome. Some examples:

[...]

The Swinging Pendulum Between Distribution and Monetization

David Beisel — Wed, 07 May 2008 16:03:11 -0700

After the crash at the end of the last decade, web startups clamped down to focus on their core value proposition and were forced out of necessity for survival to hone their revenue models. However, for the past couple years, the metrics of “success” with early-stage digital media startups (especially consumer-facing ones) have clearly focused on distribution, as opposed to monetization.

[...]

Apple shifting power balance in mobile

John_Shinal — Tue, 06 May 2008 14:26:12 -0700

Apple is doing for handset makers what upstarts like mig33 and Thumbplay are doing for mobile software companies -- tilting the balance of power in the wireless applications market away from the big carriers.

[...]

Mary Meeker's State of the Net

AO — Mon, 05 May 2008 17:13:13 -0700

Mary Meeker's overview of the internet economy from the Web 2.0 summit is up. The big coming trends were online advertising growth (of course), local momentum and video monetization.

[...]

Sandcastles in the Sky

Michael Moe — Mon, 05 May 2008 07:04:46 -0700

I spent the last week on a pilgrimage to Dubai the financial Mecca of the Middle East, and Saudi Arabia – the home of Mecca – Mecca. The purpose of my sixteen thousand mile journey, literally half way around the globe, was to seek truth – were the outlandish facts and figures coming out of the Middle East real and sustainable or a bubble that was ready to burst into a mirage in the desert?

[...]

Adify On Ad Network Values

John_Shinal — Mon, 28 Apr 2008 23:10:37 -0700

It was just a month ago that Adify CEO Russ Fraidin told me that he thought his company would be worth more than $300 million "sooner rather than later."

Turns out he was right.

[...]

Twitter Picks Up More Funding

CNET — Mon, 28 Apr 2008 14:45:17 -0700

Maybe last week's outage and subsequent revolt made it look important. Maybe it was the departure of two chiefs. Whatever the reason, a few more investors have sunk up to $20M more into Twitter.

From CNET:

Twitter gets another round of funding

Posted by Charles Cooper
Tweet and ye shall have.

A source familiar with the negotiations tells me that Twitter signed a term sheet for "either $15 million or $20 million" last week.

[...]

Dear Arthur C. Clarke: Sorry We Let You Down

Bill Reichert — Mon, 28 Apr 2008 10:54:56 -0700

Arthur C. Clarke was considered one of the most visionary authors of the
20th century. His images of the future shaped the imaginations of a
generation of geeks and nerds like me. The movie, “2001: A Space Odyssey,”
promised a future that would unfold in my lifetime, unlike the distant
futures described in most science fiction. Indeed the future seemed to be
[...]

Cornflakes

Michael Moe — Mon, 28 Apr 2008 10:19:42 -0700

If one were to mindlessly extrapolate the present to the future, to say 2015, oil would go from $120 to $500 a barrel, corn would be at $15 a bushel and Dubai and Des Moines would be the two most powerful places in the world.

The Euro, which hit a record high last week at $1.60 to the dollar, would be the global currency and the Dali Lama would be at the center of all earthly and heavenly controversies.

[...]

VC Returns Outpace Public Markets

AO — Mon, 28 Apr 2008 10:09:35 -0700

It's a good time to be a VC, according to the latest report from the NVCA. Venture capital returns beat the public market indices, NASDAQ and the S&P 500 in Q4 2007 across almost all horizons.

From the report:

VENTURE CAPITAL PERFORMANCE OUTPACED THE PUBLIC MARKETS ACROSS MOST TIME HORIZONS IN FOURTH QUARTER 2007

Economic Troubles Could Impact Returns in 2008

[...]

Data Center Security: Five Critical Requirements

Greg Ness — Fri, 25 Apr 2008 12:09:17 -0700

Last week I blogged about the rise of more sophisticated exploits and what they mean for data center security. This time let me articulate what I think are the 5 critical requirements for data center intrusion prevention and help the discussion focus on what will be needed today and going forward.

[...]

If you launch your product and no-one notices…

president@svase — Thu, 24 Apr 2008 10:22:57 -0700

Like the tree falling in a forest that no-one hears, if you launch your product on an unsuspecting market and no-one notices, the question is not just has it made any noise, it’s probably more along the lines of do you have a viable business?

Considering the amount of time, energy, sweat and money startups spend on new product development, I’m often amazed at how little thought[...]

Venture Summit East Archives

Venture Summit East — Mon, 21 Apr 2008 16:52:48 -0700

April 7-9, 2008 @ the Four Seasons Hotel. Venture Summit East features the most influential institutional investors, VCs, corporate buyers, ibankers and analysts in the Eastern US.

The Archives are now online! Check the out here: http://alwayson.goingon.com/page/display/26310

IBM buys Israel's Diligent

AO — Mon, 21 Apr 2008 11:10:05 -0700

IBM is rumored to have paid $200 million for the storage solutions developer. It's the latest of a string of Israeli acquisitions by the tech giant. Will Valley VCs be following suit?

From Globes:

The price for the storage solutions company is estimated at $200 million.

Sources inform ''Globes'' that US computing giant IBM Corp. (NYSE: IBM) has acquired Israeli storage solutions developer Diligent Technologies Corporation for $200 million.

[...]

On Age...

joshkopelman — Mon, 21 Apr 2008 03:07:14 -0700

I've been thinking a lot about age recently. As my age catches up to my rapidly graying hair, I'm realizing that I'm no longer the youngest guy in the room...

Today, Business Week released their list of "Tech's Best Young Entrepreneurs", where they highlight eleven "of the tech industry's[...]

Vator Box on idea futures and social shopping

Bambi.Francisco — Mon, 21 Apr 2008 02:34:48 -0700

Do crowds get dumber the larger they get? That’s what Drew Curtis, founder of Fark.com and a previous guest host on Vator Box, said about predictive markets.

[...]

Catalyst, Contrarians and Tipping Points

Michael Moe — Mon, 21 Apr 2008 00:16:37 -0700

If you would understand anything, observe its beginning and development. – Aristotle

It's very true that what ultimately may become historically gigantic starts with an action that may appear insignificant or unrelated.

When George Washington decided

[...]

Nurturing a Healthy Innovation Environment

Irving Wladawsky Berger — Mon, 21 Apr 2008 03:16:32 -0700

I strongly believe that top talent is the most important asset for any business that aspires to a leadership position in the knowledge economy. Talent enables a company to better cope with, adjust to and thrive in our fast changing, unpredictable world.

But while the presence of top talent is a necessary condition for leadership, it is not sufficient. You need to put that talent

[...]

Buzzd Raises A Round

Bambi.Francisco — Mon, 21 Apr 2008 02:51:43 -0700

Buzzd - an emerging, location-based mobile entertainment company - has raised its Series A round.

[...]

Ning Valuation Spot On.

Steve_Rosenbaum — Mon, 21 Apr 2008 04:33:34 -0700

Marc Andresen knew that this latest round of capital would raise some eyebrows so he wasn't about to toot his own horn and make an announcement. But when VentureBeat discovered the financing - the news was out. 60 million on a 500 million pre is pretty heady stuff.

Predictably, the headlines were either skeptical or worse.
[...]

Built to Last vs. Built to Flip

jeffbussgang — Fri, 18 Apr 2008 04:58:18 -0700

Fred Wilson wrote a blog last week on VC exits, bemoaning the lack of liquidity paths. I admire Fred tremendously (both as an investor and blogger!) and think It's a great blog, but it only covers a part of the story.

First, a bit of background. VCs need their start-ups to exit in order to pay back their limited partners. The IPO window is effectively closed for VC-backed

[...]

SignalDemand Deal: VCs Play It Safe

AO — Wed, 16 Apr 2008 06:50:11 -0700

Today's $20M investment in SignalDemand reflects InterWest's new play-it-safe approach to make it through the economic slump, according to the firm's Bruce Cleveland.

It has a close-to-positive cash flow and recurring revenue model. Makes you wonder what criteria InterWest uses when the market's sunny.

From the press release:
[...]

Buddy Media Raises $6.5M

CNET — Wed, 16 Apr 2008 02:11:51 -0700

AO Take: Softbank led a $6.5M round B for Buddy Media, which operates popular apps for Facebook and just launched an ad-network. Previously pointless games like Zombies vs. Werewolves may soon be making money

From CNet:
[...]

Move Networks Gets $46M C Round

AO — Mon, 14 Apr 2008 07:53:55 -0700

Long-play, HD internet video is REALLY heating up. No sooner did we click publish on the RGB Funding news bite than this showed up in the inbox:

AMERICAN FORK, Utah--(BUSINESS WIRE)--Move Networks, a leading provider of high definition online television services, today announced a $46 million Series C funding round led by Benchmark Capital that includes global technology

[...]

Rosum Secures $15M

AO — Wed, 16 Apr 2008 09:30:20 -0700

Rosum Corp uses the broadcast TV infrastructure to deliver location and timing solutions where GPS can't (indoors and in urban canyons). Charles River, Allegis & others pitched in.

Location-based search has taken a while to catch on, mainly because of carrier inertia. Rosum's recent partnerships with Intel and 2Wire may help it break into the infrastructure via the devices.

[...]

Adam Smith 2.0

Irving Wladawsky Berger — Mon, 14 Apr 2008 03:55:12 -0700

The other day, I came across an interesting story about Adam Smith in The Economist. It appears that Adam Smith - the 18th century philosopher and economist, who is generally considered the father of free-market, free-trade capitalism - has been treated with remarkable indifference in his native Scotland. The 17th-century house where he spent the last years of his life has only a small,

[...]

Be a VC for the Day

stevebrotman — Mon, 14 Apr 2008 03:11:45 -0700

Earlier this week I got a cold call from an entrepreneur; I had mistakenly picked up the phone, figuring it was my 4:30 call with a CEO in our portfolio. He immediately launched into his pitch, and I lamely suggested that he send me a username and password for his demo, and I'd get back to him, as I really didn't want to be late on this call. Portfolio companies take priority for VCs over potential portfolio companies, at least me.

[...]

The startup, the investor & Launch: Silicon Valley on new TV show.

president@svase — Fri, 11 Apr 2008 10:43:45 -0700

Our new 30 minute TV show, “The Silicon Valley Entrepreneur,” certainly throws up some surprises.

Last night I interviewed Vajid Jafri, the founder of cFares, Tom Kalinski, the new CEO, and Nat Goldhaber, Managing Director of Claremont Creek Ventures, which lead the A round investment in cFares. I knew something of the story –

[...]

Is Content Worthless?

Jonathan_Handel — Thu, 17 Apr 2008 09:48:31 -0700

“Content is king,” many people believe, meaning that films, television shows, music, news and information are more profitable assets than the technology used to deliver them. But there's an older, cautionary aphorism that applies as well: “Uneasy lies the head that wears the crown.” Content may be king, but, ironically, its perceived value today is being driven towards zero.

[...]

Deal–Or No Deal

Robert_Adelson — Thu, 10 Apr 2008 16:03:08 -0700

In "Let's Make a Deal," the authors began their discussion with tips on how to figure out if the right time is right to bring up employment contract renegotiation. Now, they finish up the "when" and move on to the all-important questions of what to ask for and how—and if it's time to leave.

[...]

Kara Swisher on the Summit Floor

Venture Summit East — Thu, 10 Apr 2008 03:43:58 -0700

Kara Swisher moderated a panel yesterday at Venture Summit East entitled "Is There Still Upside in the Internet?" One of the best moderators in tech, she has a way of needling folks and asking the questions they don't want to answer. Her own take on the panel is here.

One of her staple questions for VCs: what is the most overhyped sector? (the consensus was social networks) and underhyped--this time around it's mobile.[...]

Too Many Ad-based Biz Models?

Venture Summit East — Mon, 12 May 2008 12:28:04 -0700

Kara Swisher challenged a panel of VCs and CEOs in the online ad space to consider whether it's time to pop the "Advertising, of course" startup business "bubblette." Bob Davis, Eric Hippeau and Clickable's David Kidder weigh in.

[...]

Northeastern VCs Still Bullish

Brian_Hughes74172 — Tue, 08 Apr 2008 08:41:19 -0700

Despite murky market conditions, and a slowdown in the broader economy, East Coast investors and entrepreneurs are still bullish on emerging market opportunities.

For the first time, we have taken our Venture Summit show on the road. Venture Summit East in Boston will be an opportunity for venture capitalists, entrepreneurs, bankers and analysts to gather and discuss the state of the industry.[...]

Let's Make a Deal

Robert_Adelson — Thu, 10 Apr 2008 16:06:06 -0700

Boards and CEOs don't like executives who say, "Remember, that employment agreement I signed when I came aboard? I'd like to renegotiate." At the same time, an agreement that was barely acceptable at the time of hire may now be such a source of anger, it is detracting from commitment and drive. In our work in complimentary fields, the position of the authors is that it is really in the[...]

Right Sizing Investments

Justin_Perreault — Mon, 07 Apr 2008 21:40:57 -0700

Big risks certainly can yield big gains for VCs, but over the long run, sizing investments appropriately is the best route to success. In recent years, a number of technology startups have learned this lesson the hard way. With an overabundance of VC funding available, many companies spent too much, too fast, leading to problems down the road.[...]

Avoid Capitalization Pitfalls

Nick.MacShane — Sun, 06 Apr 2008 07:53:18 -0700

Next media companies—the emerging generation of telecom, media, and technology ventures that are defining the future of the digital experience—are hot. But despite the promise the industry holds, executives in this market segment face significant challenges in securing the financing required to build their businesses.[...]

VC Activity Holds Steady

CNET — Thu, 03 Apr 2008 04:32:13 -0700

What's the effect of market chaos on venture capital? CNET's findings agree with our own survey results to be released next week: valuations come down to earth, but investment amounts are unaffected:

In the next two weeks, researchers will issue numbers on how much VCs invested in the first quarter of 2008, which ended March 31. Early projections of financing deals suggest that venture activity isn't waning--at least in the first quarter.

[...]

Boston Venture Capital Heats Up

Venture Summit East — Tue, 01 Apr 2008 08:51:41 -0700

[...]

The Northeast 100 Winners

Venture Summit East — Tue, 15 Apr 2008 10:30:27 -0700

We proudly present the first annual Northeast 100 Top Private Companies. With this list of the most innovative and promising new companies in the Northeastern United Sates, AlwaysOn’s editors and our panel of industry experts introduce a new generation of game-changing players in the Northeast's high-growth marketplace.

[...]

Lou Gerstner at MIT

Irving Wladawsky Berger — Fri, 28 Mar 2008 13:11:48 -0700

Leadership was the overriding objective of the graduate seminar I taught at MIT last Fall, - Technology-based Business Transformation, - which I will be teaching again in the Fall of 2008. I told the students at our first meeting that I hoped the course would help them develop or enhance their leadership skills, so they can better deal with the complex systems, complex markets and complex organizations they will likely encounter throughout their careers.

[...]

Feed Frenzy

joshkopelman — Fri, 28 Mar 2008 13:03:21 -0700

Back in the early 90's, I co-founded a company called Infonautics that ran an online service called Homework Helper. It operated on Prodigy and AOL -- a few years before the development of the web browser. We ran our own data center (the Rackspaces of the world didn't exist) and staffed our network operations team 24x7.

[...]

American Idol in the Boardroom

jeffbussgang — Fri, 28 Mar 2008 12:54:46 -0700

It's taken me a few seasons and heavy lobbying from my wife, but I confess to finally becoming a convert when it comes to American Idol. The show is simply mesmerizing when you blend the individual personalities and talents of the contestants with the judges. In particular, I find that the three judges work incredibly well together to provide an entertaining banter throughout the

[...]

Tech M&A: Pacman City

AO — Fri, 28 Mar 2008 10:21:16 -0700

With downward pressure on valuations, corporate buyers like Microsoft, eBay, Cisco, Google and Oracle will sweep up some bargains. The M&A market should remain robust.

From Business week:

Executives at eBay (EBAY) know a bargain when they see one. For Lorraine McDonough, eBay's mergers chief, 2008 is shaping up to be a good year to go shopping.

[...]

ExGooglers Launch How-to Video Play

Andy Plesser — Sun, 23 Mar 2008 23:53:54 -0700

Co-founders Jason Liebman and Daniel Blackman, along with other Google alumni, have raised $8 million and launched HowCast a new company that produces and distributes "how to videos" on a range of topics.

[...]

Quattrone Launches Boutique Bank

Frank_Quattrone — Tue, 18 Mar 2008 18:26:09 -0700

I am excited to let you know that some former colleagues and I are launching a new financial services venture called Qatalyst Group, a technology-focused merchant banking boutique, headquartered in San Francisco.

Qatalyst Partners, our investment banking business, will provide high-end M&A and corporate finance advice to technology companies globally.[...]

Strange Bedfellows: MS & Adobe

Andy Plesser — Tue, 18 Mar 2008 08:34:22 -0700

We read with interest ZDNet's Larry Dignan's take on the unlikely announcement that Microsoft's Silverlight will run on Adobe's new mobile Flash platform called Flash Light 3.

From our standpoint, Adobe's new Flash player for the phone is pretty awesome. We got this demo earlier this month with Rhett Woods at the Adobe offices in San Francisco. You gotta check

[...]

Patenting Patent Trolls

bradfeld — Mon, 17 Mar 2008 12:38:51 -0700

My partners and I were hanging out at lunch last week when Jason brought up the question of whether or not we could patent the business method of “creating or acquiring intellectual property for the primary objection of bring lawsuits against potential infringers.”

In essence, could we patent the idea of being a patent troll? After a hearty laugh, Jason looked into

[...]

An Exciting New Challenge

Irving Wladawsky Berger — Mon, 17 Mar 2008 12:26:07 -0700

At the beginning of March, I started to work with Citigroup as strategic advisor for innovation and technology. This is a part-time position, which I will take on while continuing my current activities with IBM, MIT and Imperial College.

When I retired from my full time position at IBM last May, my intent was to continue working pretty much full time, but instead of doing so at one

[...]

It's Always Sunny on the Web

David Beisel — Mon, 17 Mar 2008 12:20:16 -0700

Ben Kunz wrote an interesting article in this week’s BusinessWeek, but it wasn’t the controversial and inaptly-named title (“Why Widgets Don’t Work”) which caught my attention. Rather, it was his framework for the “history of the web” which did. He outlined a transition among three distinct phases of consumers’ primary activity online from receiving, to hunting, and now doing.

[...]

Let's Play, Blame the VC

jeffbussgang — Mon, 17 Mar 2008 12:27:31 -0700

I attended a breakfast run by Tony Perkins and AlwaysOn last week in preparation for their upcoming, inaugural event in Boston "AlwaysOn - East". I've attended the NYC event a few times and although they are a bit too buzzword compliant, they tend to attract a high-quality audience in the consumer new media start-up market. Tony and team are now trying to bring the model to

[...]

Scaling Up Innovation—Beyond Borders

tomnastas — Sun, 16 Mar 2008 09:36:13 -0700

In Scaling Up Innovation—Action!, we covered the final six action items in the GoForward strategy. Successful completion of all seven action items gives countries a strong strategic platform from which to spring into the global technology and knowledge market.

In this final section, we'll explore countries that seek out technology no matter where it is, either moving it from country to country or integrating it into their own supply chain.
[...]

Scaling Up Innovation—Action!

tomnastas — Sun, 16 Mar 2008 19:04:50 -0700

In Part 2, we introduced the concept of action items in the GoForward strategy. As we learned in Action Item #1, burgeoning countries that are ramping up their technology growth should begin by targeting their own domestic users first. These countries have industries that are knowledge based; some are clusters around a particular industry while others exist from natural advantages.

[...]

How to Avoid Startup Burnout

John_Shinal — Mon, 10 Mar 2008 18:07:58 -0700

Are you literally "dying of overwork?" Dr. Roe Gallo shares her burnout test and tells Reena Jadhav of IvyBrain that accumulation of stress can not only kill your performance, it can actually kill you!

[...]

New Fund, New Brand: Introducing Flybridge Capital Partners

jeffbussgang — Mon, 17 Mar 2008 22:25:34 -0700

As my blog readers note (and appreciate), I typically don't write about my portfolio companies or fund. But it's hard to resist on this one occasion. Today we announced the closing of our 3rd fund at $280 million and a new brand: Flybridge Capital Partners.

Our strategy and team remains the same: 5 general partners pursuing consumer, medical and information technology

[...]

Bank on Hank

Michael Moe — Mon, 10 Mar 2008 07:11:10 -0700

Alexander Hamilton, the first Secretary of the Treasury, chief advisor to George Washington, author of the Federalist Papers and architect of the National Bank and Debt is regarded as one of the most significant people in American History. Partial evidence of his influence is reflected in that he is one of two non-presidents whose profile is on our legal tender (Hamilton on the $10 bill, Ben Franklin on the $100 bill).

[...]

Scaling Up Innovation, Part 2

tomnastas — Tue, 11 Mar 2008 11:32:37 -0700

As we continue our discussion from Part 1 on creating a GoForward strategy for building technology platforms outside Silicon Valley, we return to Russia. With its strategic assets, we can explore what alternative strategies Russia can deploy to take advantage of its burgeoning ideas as well as make smart use of it intellectual base and bankroll.[...]

TheFunded's Adeo Ressi on bad VCs

John_Shinal — Thu, 06 Mar 2008 11:29:10 -0800

Fast initial uptake of an idea is a sign that its time has come.

For decades, startup CEOs seeking venture capital funding faced a very asymmetrical relationship when they sat across the table from the partners of venture firms. The firm had the cash, while the entrepreneur was competing with thousands of others seeking the same dollars.

[...]

Why Am I Passing?

bradfeld — Wed, 05 Mar 2008 16:57:15 -0800

Every day I tell at least one entrepreneur that I am passing on investment in their company. Some times I tell 10. I don't know what the most in one day is, but it's probably more than 25. I try to respond to all emails so a lot of these are in the "never were appropriate to pursue" category, but at least one each day is someone that I've actually engaged with beyond a cold email that was randomly sent to me.

[...]

For the Record

Michael Moe — Mon, 03 Mar 2008 07:33:23 -0800

The cliché says that records are meant to be broken but for some we prefer that they aren’t. Records that we like are stocks reaching new highs, number of touch-down passes, movie tickets sold, etc. Those are all good records. Unfortunately, this week was historic for a number of records that were broken, most of them not positive. Consider the following records this week:

[...]

Scaling Up Innovation

tomnastas — Thu, 06 Mar 2008 16:23:39 -0800

In posts this week and last November on AO, Irving Wladawsky Berger stressed the need for cities, regions and even countries to “define their own game in a way that fits them best rather that attempting to fashion an initiative after Silicon Valley.” He continues, “perhaps, there are other styles of innovation out there, and cities and regions need to be innovative in their very approach to innovation in order to succeed.”
[...]

(Almost) All Innovation is Local

Irving Wladawsky Berger — Tue, 26 Feb 2008 21:26:27 -0800

At an innovation conference in Mexico in November of 2006, the Colombian journalist Alejandro Santos reminded us, in his eloquent summary, of the advice that the great Leo Tolstoy gave to prospective writers: "Describe your village, and you will be universal." Santos illustrated Tolstoy's maxim with the Colombian writer Gabriel

[...]

The Emergence of Flow-Based Search

Bill Burnham — Fri, 22 Feb 2008 08:46:26 -0800

GigaOm had a post last week on a company called SkyGrid and its official company launch. As an investor, advisor, and beta-user of the platform, I thought I would chime in with my own self-serving post mostly because I wanted to talk about the advanced technology and architecture behind SkyGrid and why it makes the company such an interesting case study in the evolution of search technology.

[...]

Citigroup's Mahaney on Microsoft-Yahoo

John_Shinal — Fri, 22 Feb 2008 08:21:47 -0800

Citigroup stock analyst Mark Mahaney tells Vator.tv managing editor John Shinal in this interview that Microsoft's hostile $44 billion bid for Yahoo will likely succeed, despite the hurdles it faces.

"If you were a betting person you'd have to bet that this deal goes through," although probably at a higher price than the $31 a share Microsoft offered, Mahaney says.

[...]

Bessemer Tops Midas List

davidcowan — Wed, 20 Feb 2008 17:16:47 -0800

Since 2000, Forbes has taken an admirable crack each year at recognizing the most successful dealmakers in high-tech venture capital. Its Midas List attracts some controversy (and whines from VCs) since Forbes must craft its list based on incomplete and somewhat self-reported information. Clearly some folks get too much credit (e.g.[...]

Venture Capital Wear

joshkopelman — Wed, 20 Feb 2008 16:46:48 -0800

I just came across this new website - Venture Capital Wear - and it really cracked me up. Check out their T-shirts...

[...]

Software Reform is Building

bradfeld — Wed, 20 Feb 2008 15:51:48 -0800

I'm an abolitionist. I believe software patents should be abolished. I've started pounding the drum about this and am delighted to hear as many positive responses to my plea as I have. While a few people argue with me about the validity of software patents, most nod their heads up and down in agreement with me. I get plenty of skeptical looks when I say "software patents should be abolished" (as in - c'mon Brad, be realistic), but a guy needs to have goals, right? [...]

More Social, More Mobile, More Money

OnMedia — Tue, 19 Feb 2008 15:41:33 -0800

Where is the Media Industry headed in 2008? What new user behaviors and technologies are disrupting the ad market? How will M&A and IPOs be affected? KPMG and AlwaysOn asked over 300 VCs, CEOs and industry insiders in Silicon Valley and New York City to tell us where they see the media world headed in 2008. Here's what they had to say...

[...]

Sustainable Corporate VC

Bob_Ackerman — Tue, 19 Feb 2008 14:43:26 -0800

Corporate R&D labs are a dying breed. Their role in the world of innovation has been taken over by fleet-footed startups that are evolving faster than any large corporation could hope to match.

Between 1981 and 1999, the share of industrial R&D in the U.S. done by companies with more than 25,000 employees dropped from 70% to 40%.[...]

People Power

Michael Moe — Tue, 19 Feb 2008 08:31:07 -0800

This week I got a first-hand window to the wonderful world of immigration. Like many organizations in knowledge businesses, we look to employ the brightest, hardest working people we can find. We are agnostic to place of birth, sex, or who somebody’s parents are – we need talent to compete.

[...]

2008: The Year of Virtsec

Greg Ness — Thu, 14 Feb 2008 17:35:22 -0800

We are closing on the one year anniversary of my Always On blog post entitled “Virtualization: the Beginning of the End of Static Security.” It has become one of my most read entries since I began blogging on networking and security issues at Always On about 4 years ago. I think the amount of interest and discussion has caught many of us by surprise, including the public network security appliance vendors who have the most to gain and lose.

[...]

Tim Draper on building a new-media brand

John_Shinal — Wed, 13 Feb 2008 14:20:23 -0800

The real-time, interactive nature of the Internet will offer revenue opportunities for content creators that were rarely available using the traditional Hollywood business model, according to venture capitalist Tim Draper.

However, taking advantage of those opportunities -- ranging from online merchandising to placing ads in front of fans -- will require

[...]

Follow-On Financings

jeffbussgang — Thu, 14 Feb 2008 11:55:31 -0800

With the capital market turmoil raging, many argue that 2008 is going to be a tough year for start-ups to raise money, particularly follow-on capital in the form of a Series B financing (not surprisingly to any veteran viewers of Sesame Street, Series "B" follows Series "A" rounds of financing).

[...]

OnMedia 100: Where Are They Now?

Tolman Geffs — Mon, 11 Feb 2008 13:45:42 -0800

Released in January 2007, the AlwaysOn OnMedia 100 list highlights “game-changing players in advertising, marketing, and promotion”. These online media, technology and marketing services companies were very active in M&A and financings throughout the year. Taking a look back on 2007:

Ten of the OnMedia 100 companies were sold;
Another 10 made acquisitions; and

[...]

VC Cafe Shines a Light on Israel

John_Shinal — Tue, 05 Feb 2008 07:36:07 -0800

Israel has the highest ratio of startup companies per capita, according to Ezequiel (Eze) Vidra, who founded the Web site VC Cafe to help shine a spotlight on that nation's entrepreneurs.

[...]

GO GIANTS!

Michael Moe — Mon, 04 Feb 2008 07:11:49 -0800

In a market that is confounding as it is volatile, we are seeking any edge we can find – maybe like Bill Belichick trying to steal defensive signals. Accordingly, we’ve dusted off the old “Super Bowl Indicator” to provide some clarity to the confusion and chaos.

[...]

NYC Embraces Early VC$...

Steve_Rosenbaum — Tue, 05 Feb 2008 12:02:00 -0800

In the past year, I've spent a fair amount of time with Venture Capitalists. I've come to understand the way they view the world, the complex mix of genuine enthusiasm for innovation, mixed with the inexorable math that requires them to turn the money that's been entrusted to them in to results that outsize ordinary invested capital. I don't envy them this schizophrenic existence.
[...]

Venture Summit East, Boston

Venture Summit East — Tue, 15 Apr 2008 10:30:08 -0700

Like its sister event in Silicon Valley, Venture Summit East is a two-day gathering that highlights the significant economic, political and technology trends impacting the global growth investor. Venture Summit East features the most influential institutional investors, venture capitalists, corporate buyers, investment bankers and research analysts in the Eastern US in keynote presentations and panel debates.

[...]

Draper on New Media Investing

John_Shinal — Wed, 30 Jan 2008 07:48:37 -0800

Tim Draper, founding partner with the venture firm Draper, Fisher, Jurvetson, told an audience at the OnMedia conference in New York this week that the emergence of new media is "a typhoon" that will tear apart the revenue model of the traditional media industry and force companies to re-think their industry.

[...]

Two Sides of a Coin

Michael Moe — Mon, 28 Jan 2008 07:23:01 -0800

In formal education, there are precise definitions for occurrences which are meant to make things black and white.

For example, a “correction” is when stocks fall between 10-20% from their 52-week high. A “bear market” is when stocks fall more than 20% in a year. A “bull” market is defined as a period when the market has increasing investor confidence, motivating investors to buy in anticipation of further capital gains.

[...]

After the TechCrunch Bump

joshkopelman — Sun, 27 Jan 2008 19:34:45 -0800

I see many consumer Internet pitches these days where the basic marketing strategy is to (1) get covered by Techcrunch, (2) get tens of thousands of users from the "Techcrunch Bump", and then (3) "grow virally". While a positive Techcrunch review has the potential to send thousands of consumers your way, it does not represent a marketing plan. Munjal Shah at Riya found

[...]

InDiggNation: the Web 2.0 honeymoon ends

John_Shinal — Fri, 25 Jan 2008 20:03:18 -0800

Why would the founders of Digg, the fast-growing social news site that says it gets more than 20 million unique monthly visitors, keep trying to sell it?

The question could have two answers, both of which may be true: either Kevin Rose and Jay Adelson want to get rich and/or the traffic on the site they run isn't quite what it seems.

[...]

The Rise and Fall of Data Center Security

Greg Ness — Wed, 23 Jan 2008 16:20:28 -0800

We're Not in Kansas Anymore

Last week the tech press marked yet another week of security capitulation, with reports of widespread unpatched Oracle databases and the acknowledgement that a cyber attack had recently blacked out at least one city outside the US. It has become even more apparent that our private and public sector IT leadership and vendor community has become increasingly

[...]

3 Below at Lambeau

Michael Moe — Mon, 21 Jan 2008 11:37:34 -0800

Having grown up in Minnesota, I used to look forward to football in December when the wimps from a southern team like the Cowboys would come up to the frozen tundra to play my Vikings.

While both teams had to deal with the brutal conditions, the advantage was always to the home team – partially because Bud Grant and the “Purple People Eaters” knew how much the opponents hated dealing with the cold (and often snow).

[...]

Cha Cha Changing

Michael Moe — Mon, 14 Jan 2008 07:35:04 -0800

It seems the dominant theme of the moment is change.

Being “on message” for a presidential candidate means talking about change. Barak Obama’s campaign slogan is “Stand for Change” and Hillary Clinton’s is “Ready for Change.” Debates center on who will really be for the most change which Senator McCain latched onto ceding Mitt Romney as “truly the change candidate,” but not for flattering reasons.

[...]

Twine: The Birth of Web 3.0

DavidScottLewis — Fri, 11 Jan 2008 15:24:29 -0800

“We're here to make a dent in the universe. Otherwise, why even be here? We're creating a completely new consciousness, like an artist, or a poet.” ~ Steve Jobs as portrayed by Noah Wyle in the opening scene of Pirates of Silicon Valley. Part of a

[...]

Gartner: VirtSec Firewall Options Lacking

Greg Ness — Tue, 08 Jan 2008 11:54:14 -0800

It is great to see the new challenges of virtsec continuing to attract intelligent discussion in the trade press. Take this article by Tim Greene in Network World covering a recent Gartner report. For more on virtsec developments as they happen go to: www.archimedius.net.

[...]

Plaxo Is Cash-Flow Positive

John_Shinal — Mon, 07 Jan 2008 12:27:55 -0800

Plaxo has come a long way since the days when it was known most widely for the irritating emails it automatically sent to all the people on the contact list of Plaxo users who updated their information.

While some people on the receiving end of those spam messages have memories like elephants, millions more have forgiven the company and have in fact embraced it as an online address-book manager.

[...]

GigaOM CEO Malik has heart attack

John_Shinal — Wed, 09 Jan 2008 10:12:59 -0800

from John Shinal, Vator.tv

GigaOmni Media founder and CEO Om Malik, 41, is recuperating from a heart attack suffered Dec. 28, the company said in a blog post.

"It's been a tough week," said Paul Walborsky, the company's COO, who came on board in August to run non-editorial operations for the online network.

[...]

Inside the Sausage Factory 2008

Michael Moe — Wed, 02 Jan 2008 15:20:14 -0800

I always look forward to New Years as it represents a fresh start and a time to make new resolutions and predictions for the upcoming year. To look ahead, it’s important to review where we’ve been; and 2007 was quite a year.

It’s unlikely that many market prognosticators would have predicted that we would have an up market

[...]

The Godfather of Silicon Valley

Hooman_Khalili — Wed, 02 Jan 2008 09:33:09 -0800

Here's my second video with venture capitalist Ron Conway in his San Francisco home. Watch the video to find out what Ron Conway is up to these days. Check out the first video here.

[...]

Interview at TechCrunch 40 with Ron Conway

Hooman_Khalili — Wed, 02 Jan 2008 09:28:36 -0800

Here's my interview with multi-millionaire angel investor Ron Conway about Tom from Myspace, and cashing in on Google before getting kicked out of the TechCrunch40 conference in San Francisco. Conway’s been traveling the world after making millions when Google went public in 2004.

[...]

Best Vator.tv stories of 2007

John_Shinal — Thu, 27 Dec 2007 09:07:22 -0800

For those covering public and private technology companies, including the latest trends and the personalities driving them, there was no shortage of compelling stories to cover in 2007.

During the past six months, as we ramped up the Vator.tv newsroom to a full-time operation, the list of interesting people that we captured on video and in text grew long indeed.

[...]

Back to Basics (Part Four) – Predictability

Michael Moe — Mon, 24 Dec 2007 10:35:57 -0800

So I’m feeling a bit lazy in relying on past ideas to provide content for ThinkThoughts but, hey, it’s been a long year. And I believe it’s not the razzle dazzle that wins games – it’s disciplined execution of the fundamentals. With backdrop, I lead into the fourth part of our Back to Basics series – Predictability.

[...]

NetSuite auction better than Google's

John_Shinal — Wed, 02 Jan 2008 14:33:44 -0800

NetSuite did this week what Google couldn't do more than three years ago -- complete an auction-based IPO at a price that was even higher than the company's bankers anticipated.

That the offering got out the door at a higher price than initially targeted, and the stock went up another 50% in its first two trading days, shows how much has changed since August, 2004.

[...]

Tim Draper: Captain America

Hooman_Khalili — Thu, 20 Dec 2007 11:34:06 -0800

Hi AO folks. Check out my interview with Tim Draper at the BizWorld luncheon in San Francisco and let me know what you think.

[...]

Rothman, VirtSec, NetSec and Blue Lane

Greg Ness — Thu, 20 Dec 2007 13:50:39 -0800

Mike Rothman asked me to talk to him earlier this week about virtualization security as a part of his podcast series. You can listen to the 12 minute 3D chess podcast via the link. Actually in retrospect I think I would call virtsec by static security 3D cat herding (instead of 3D chess). The podcast series is sponsored by ebizQ and hosted by security expert Mike Rothman.

[...]

DailyMotion & VCs in the EU

Venture Summit West — Wed, 19 Dec 2007 14:34:04 -0800

Why Invest Now in Europe and Israel? A Panel of VCs from outside Silicon Valley say the other side of the pond is ripe for Venture Capital, and DailyMotion proves it.

[...]

Truveo's Tim Tuttle on stale Internet advice

John_Shinal — Wed, 19 Dec 2007 12:07:07 -0800

Tim Tuttle and his Truveo co-founder, Adam Beguelin, ran into a lot of investor skittishness when they were trying to raise money for their video search startup in 2004.

Memories of the dotcom implosion, which had torpedoed venture capital fund returns for three straight years, were fresh in the minds of many VCs they met with.

[...]

Back to Basics (Part Three) – Potential

Michael Moe — Sun, 16 Dec 2007 15:58:33 -0800

The new maestro conducted the symphony this week but left the patrons unimpressed. Fed chairman Bernanke’s 25 basis point cut of the Fed funds rate was viewed, in our opinion, as insufficient by investors and in kind stocks went lower for the week. My personal view, for what it’s worth, is that the negative reaction of the market due to the movements of the Fed is silly.

[...]

Starting Up is Harder to Do

Venture Summit West — Wed, 19 Dec 2007 13:35:14 -0800

Seed investors Andy Bechtolsheim, Tim Draper, and Jeff Clavier say the cost of launching a startup is rising, despite reports to the contrary. Hardware prices, marketing efforts and Google-sized salaries are all pushing up the launch cost, which may account for the shrinking number of seed investors. The three spoke last week at Venture Summit West.

[...]

How to Not Choke

guykawasaki — Tue, 11 Dec 2007 08:52:22 -0800

I used to take an adult hockey skills class. Each session started with all of us facing the boards and skating backwards on the instructor’s whistle. We were all supposed to stop on a second whistle; then the instructor grouped students by how far they had skated in the limited time.

(This is a picture of Bret Hedican of the Carolina Hurricanes.

[...]

Back to Basics (Part 2)

Michael Moe — Mon, 10 Dec 2007 07:37:18 -0800

I got some positive feedback on our 4P review from a couple of weeks ago and I thought we would continue the series with the second “P” – Product.

In searching for great growth companies, we are looking to invest in companies that are leaders in what they do. Attractive companies need something that makes them special or great – they need a claim to fame. Starbucks

[...]

Draper & Conway: What Angels Want

Venture Summit West — Wed, 19 Dec 2007 13:35:21 -0800

At Venture Summit West this morning, Tim Draper announced he wants to pour money into enterprise startups, and Ron Conway let out that the falling cost of starting consumer internet companies means there's a huge untapped market for more angel investors. The two also gave their insider take on the YouTube startup story. Check out the highlight video for more.

[...]

Making Millions with no VC

Venture Summit West — Wed, 19 Dec 2007 13:35:35 -0800

Yesterday at a Venture Summit Panel led by Guy Kawasaki, Fark founder Drew Curtis described how he became a millionaire with a 4-person staff. Blake Commagere, who created the Vampires Facebook application and founded Mogad, explained that IM is for grandfathers, and outlined the online behaviors that have replaced it. The panel was hilarious, and is well worth watching in its entirety (we hope to have it up within a few weeks).[...]

2nd Life is Still Alive

Venture Summit West — Wed, 19 Dec 2007 13:35:38 -0800

The vital signs are there, says Bill Gurley: $5 million per month in revenue, and 43,000 members are making a profit net of fees.

Lise Buyer says Second Life is the least understood young company in Silicon Valley. Those who criticize the over-hyped brand marketing campaigns, or the “virtual goods” business model may by missing the point.

[...]

Global, Green and Bullish

Packy Kelly — Wed, 13 Feb 2008 11:12:45 -0800

In anticipation of Venture Summit West, the gathering of investors, VCs, corporate buyers, investment bankers, and research analysts taking place this week in Half Moon Bay, CA, we surveyed the key players in the industry to identify the significant economic, political and technology trends impacting the global growth markets. We want to thank the respondents for taking a few minutes out of their busy schedules to provide their opinions.[...]

Pencils Down; 2008 Plans Are Due

jeffbussgang — Wed, 05 Dec 2007 09:04:03 -0800

While many consumers are focused on the hectic holiday shopping season, many CEOs are focused on the hectic annual planning season.

Each of my eight VC-backed boards are in the throes of this annual ritual - trying to gaze into the crystal ball to divine what next year's results will look like and how to develop a plan to get there.

[...]

The Six Lessons of Kiva

guykawasaki — Tue, 04 Dec 2007 08:13:24 -0800

Stanford Magazine has a terrific article about Kiva called “Small Change, Big Payoff” by Cynthia Haven. This is the story of how Matt and Jessica Jackely Flannery created it to enable people to make micro loans to entrepreneurs around the world.

The results are awesome: more than 123,000 people have loaned more than $12.4 million to 18,000 entrepreneurs.

[...]

Stay Long – Don’t Be Wrong

Michael Moe — Mon, 03 Dec 2007 09:21:55 -0800

As much as I know from past experience, the more I feel alone, the more right I likely am. I was feeling the need to talk to somebody last week, anybody who was bullish like me.

Unexpectedly, I found a like-minded friend over the pond who was taking great pleasure in how bearish everybody in the city was, particularly on America. If it’s in the papers, it’s in the price – history has shown the triumph of the optimist.

[...]

Health Care Needs Leadership

Irving Wladawsky Berger — Mon, 03 Dec 2007 08:15:54 -0800

The November 25 Sunday New York Times included yet another editorial bemoaning "The High Cost of Health Care." It is a good editorial, and I generally agree with both its list of Causes as well as its recommended Solutions. But I wonder if anything will come of it.

The editorial points out that "health care costs are far higher in the United States than in any other

[...]

Getting the Gang Back Together

David Beisel — Fri, 30 Nov 2007 09:06:59 -0800

Venture investors often find comfort when a team of entrepreneurs beginning a startup have previously worked together. If the prior endeavor was a wild success, then the prevailing thinking is that it makes sense to back a team who should know the playbook for victory. But even when the last go-round was a mild success or even a tremendous failure, there is signal value in the fact that these individuals deliberately choose to work together another time.

[...]

Microsoft Bets Big on Global IPTV

Andy Plesser — Thu, 29 Nov 2007 10:26:50 -0800

[...]

How Effective Are LinkedIn and Facebook

mbmccall — Tue, 27 Nov 2007 22:14:00 -0800

I have been using LinkedIn for a couple of years now and Facebook for about 6 months. While I have found both interesting and have played with an array of Facebook applications, I haven't found either extremely useful from a business perspective. In comparing notes with others, most tell me that they use them but neither has led much to new sales, key introductions, etc. Why is this?

[...]

No Pain, No Game

Michael Moe — Tue, 27 Nov 2007 14:20:04 -0800

“It’s always darkest…before it turns pitch black.” – Peter Lynch

Thanksgiving was a nice diversion from the battle we’ve experienced in the stock market in 2007. For those of us in the investment business, this year’s Turkey day is in some ways reminiscent to the first Thanksgiving that took place in Plymouth in 1621.

[...]

Five Computers Are All You Need

bariskaradogan — Tue, 27 Nov 2007 13:49:33 -0800

"I think there is a world market for maybe five computers." - TJ Watson, IBM

This is a famous misquote attributed to T.J. Watson, IBM's president at the time, misjudging the potential of the PC market. As the story goes, IBM which invented the PC, didn't see the vision as to how big it could become and let others, especially Microsoft, get the lion's share of the value

[...]