drew olanoff is a geek. he beat cancer...by blaming it. also brained up "Social Good", Gmail4Troops, BlogAbroad, and other stuffs.
By Jay Rossiter, SVP, Platforms
Over the last few months, we’ve made exciting changes to some of your favorite Yahoo! products, like Flickr, Mail, Weather, the Homepage and Search. Today, I’m excited to share with you our next big push: we want to give our loyal users and new folks the…
By Marco Wirasinghe, Director of Mobile and Emerging Products
Today Apple announced the 2013 Apple Design Award Winners at WWDC, and we’re beyond thrilled that the Yahoo! Weather for iPhone app has been chosen as one of this year’s recipients.
Apple has built their legacy designing…
By Ron Bell, General Counsel, Yahoo!
We want to set the record straight about stories that Yahoo! has joined a program called PRISM through which we purportedly volunteer information about our users to the U.S. government and give federal agencies access to our user databases. These claims…
How much is a dinner with SV Angel’s co-founder and managing partner, David Lee, worth? When you put it into the context of where the money will be going, the answer should be “it’s almost priceless.” Today, I got to sit down with Lee, and a special new friend of TechCrunch
Heading To Yahoo! And No! I Can’t Do Anything About The Exclamation Mark! http://tcrn.ch/131GILJ
My name is Drew Olanoff, and I have over 10 years of marketing, PR, customer service and support, relationship building and management, product management, and technical support experience in multiple verticals. Online, including mobile.
I coined the phrase "Social Good" for online charitable movements, and invented the online "donation by action" charity model. I founded #BlameDrewsCancer
I pride myself on being a connector. Connecting people, stories, information. I have worked under some amazingly talented and gifted PR pros while working for startups as a "Director of Community", "Community Manager" and "Technology Evangelist". I have the knack of working stories both mainstream as well as online. Bridging that gap is my passion.
I am a leader AND a team player, and strive for nothing short of success. My life motto is "failure is not an option".
During my personal fight with Hodgkins Lymphoma, I created a website that leveraged tweets to raise money for charity. During my treatment, I was able to:
- Participated in official LIVESTRONG events as a Global Envoy
- Appeared on both national and local news (CNN, Fox Philadelphia) to talk about our mission
- Held a 24 hour livestreamed marathon to raise money for LIVESTRONG
- Worked with Drew Carey to raise money by auctioning off the Twitter handle @drew
If you’re unable to access Facebook, it’s not only you. The site is currently down for some users (including several of The Next Web’s team). Heading to the site shows an error message.
Update: Facebook is back up and running as normal; the company says:
Earlier today, an internal issue in our web infrastructure caused the site to be slow or unavailable for a brief period of time. We resolved the issue quickly, and should now be back to 100%. We apologize for any inconvenience.
Down For Everyone Or Just Me also says the site is down on its end. According to Downwhere, Facebook is suffering severe downtime in Brazil, Canada and the US, while it is running fine in other countries.
We have already contacted Facebook for clarification on the situation and will update with any response provided.
Earlier this year in February, Facebook also suffered an outage lasting about an hour, but a cause for the downtime wasn’t provided.
A similar situation in October last year was put down to “a change to DNS as part of a traffic optimization test.”
Image Credit: Lionel Bonaventure via AFP/Getty Images
Yesterday, Tapbots‘ Paul Haddad shared on Twitter that there were already more Tweetbot users on iOS 7 than still on iOS 5.
We confirmed the tweet’s contents with Haddad, then went on to poll a few more developers who corroborated the findings both on and off the record. The statistics here are pretty powerful, and demonstrate the shifting landscape of rapid updates on iOS and exhibit how far ahead Apple still is when compared to Android in this area.
Pioneering Twitter app Twitterrific, by The Iconfactory, is also seeing big usage numbers on iOS 7. The company confirmed that they’re seeing roughly 3x as many users on iOS 7 as there are still using 5.x versions.
The time shifting app Pocket is also seeing big adoption numbers, with 4.8% of weekly iPhone actives last week on iOS 7, 3.9% on iOS 5. All of these stats are even more impressive when you think about the fact that iOS 7 is theoretically still limited to ‘developers and test devices only’.
Obviously there are tons of caveats here, including the fact that despite us reaching out to a spectrum of developers, they could very well represent a cross-section of the early adopter crowd. Twitterrific, for instance, was widely praised (rightfully I believe) for being almost prescient about the look and feel of iOS 7. This means that it ‘fits in’ very well and iOS 7 users might be more inclined to install it than another Twitter client. But given that Tweetbot was seeing similar adoption rates, the issue might be more along the lines of popularity among the ‘early adopter’ crowd.
We spoke to a developer of a hugely popular game whose market is solidly in the ‘median’ (non-techy) user crowd and their results spoke differently about the adoption of iOS 7. While there was still a significant amount of iOS 7 users, they were still around 1/3 of the numbers being seen for iOS 5 versions. So definitely not there yet among ‘normal’ folk.
Still, for the numbers to be anything but a blip on the radar speaks very highly of Apple’s ability to move users from old versions of iOS to new versions. Right now the ‘new’ version is iOS 6, which is seeing massive 93% adoption among users. The mobile web and native app analytics company Localytics shared some interesting stats with us recently that drive home the power of a rapidly upgrading user base.
Localytics found that 64% of qualifying iPads are already on 6.1.3, which is a pretty crazy number. iPod touches came in at 58% and iPhones are at 37%. Roughly 74% of users had upgraded from 5.0 to 5.1 within 14 days, and 6.0-6.1 took even less time at 11 days. Obviously, this allows developers to more rapidly support new features in new versions of the OS, but with iOS 7 it will also allow them to adopt the radically new design language without fear of alienating tons of customers.
Another interesting tidbit they found was that users who had updated to the latest version of the OS were far more likely to update to the latest versions of apps as well. Yes, this might be circumstantial, but other stats corroborate that ‘early adopter’ activity spreading outwards. For instance, users using the current version of an app have 40% more sessions per user and 63% longer session lengths than those on older versions.
I don’t want to harp on the troubles that Google has had with getting Android developers to update, but the latest stats still put the largest percentage of users on a three year old OS. There have definitely been inroads as Jelly Bean is now clocking in at 33%, but the confidence that developers can move to support only the latest versions of the OS just isn’t there yet.
But for iOS developers, the conclusions are simple: developers can be more aggressive about adopting the latest versions of iOS, including their features and feel. Doing so not only frees them up to use the latest APIs and tools, but also brings higher app engagement numbers. It’s a win-win scenario and iOS 7 is already shaping up to be a boon for those who are quick to adapt.
Just over a week after passing a record 2 million searches in a single day, DuckDuckGo has announced a new milestone: the company processed 3,095,907 searches yesterday. DuckDuckGo made it clear that this stat does not include yesterday’s 18.9 million searches via its API and approximately half a million bot searches.
It’s no coincidence that DuckDuckGo’s stats are climbing as the PRISM and larger NSA surveillance controversy grows. The startup has received considerable attention as a Google alternative — remember, Google was cited as a main data source for PRISM. After facing severe criticism for its involvement, Google appealed to the US government in hopes of sharing more about the data requests it receives.
It took 1445 days to get 1M searches, 483 days to get 2M searches, and then just 8 days to pass 3M searches: https://t.co/u4HCuL2e1W
— DuckDuckGo (@duckduckgo) June 18, 2013
Following the PRISM controversy, we reached out to DuckDuckGo CEO and founder Gabriel Weinberg, who clarified that he believes DuckDuckGo could never be of use to PRISM:
…if the NSA were to come to us and ask for all our data, it would not be useful to them because our data is truly anonymous (as opposed to psudo-anonymous, which is never really anonymous).
As we’ve previously detailed, DuckDuckGo has also ramped up its media efforts lately. The service was recently profiled in the Washington Post and founder Gabriel Weinberg appeared on CNBC in April and Bloomberg last week.
The NSA surveillance controversy continues this week, and TNW would be remiss to keep you out of the loop. However, instead of shipping a number of short posts on the most recent news, what follows is a short compendium of what you need to know. For full coverage of PRISM, and the phone records program, head here. Let’s begin.
As TNW previously reported, a bipartisan bill under the name of the ‘LIBERT-E Act’ is in the works. That awkward name breaks down in the following way: the “Limiting Internet and Blanket Electronic Review of Telecommunications and Email Act.” As reported in Politico, the bill’s backers, Republican Rep. Justin Amash and Democrat Rep. John Conyers, stated the following:
We accept that free countries must engage in secret operations from time to time to protect their citizens. Free countries must not, however, operate under secret laws. Secret court opinions obscure the law. They prevent public debate on critical policy issues and they stop Congress from fulfilling its duty to enact sound laws and fix broken ones.
Their bill would increase the amount of disclosure provided to both Congress and the wider public. It’s chances of passage are unclear. It has attracted 31 co-sponsors thus far. The views of the two were articulated in a Huffington Post editorial: “[t]he government has no business stockpiling so much of our data.” We’ll track the bill and keep you informed.
Today General Keith Alexander, head of the NSA, stated that surveillance efforts have stopped “over 50″ potential terror threats in the last decade. That is a bold claim. This comes after the General had stated that, as TNW wrote at the time, “the two previously secret programs have, as Reuters reports, ‘helped to prevent ‘dozens’ of potential terrorist events.’”
The claim is a bit suspect as when it has come to specific events that are discussed as perhaps defused using data collected from the phone record program, or PRISM, they have been circumspect. Please allow me another short quote:
Before, President Obama had indicated that a terrorist attack had been thwarted by PRISM. That attack, it came out, was a 2009 plot in New Yorkin which PRISM played a role. However, others have stated that PRISM’s role in that incident was superfluous, making the argument specious.
Thus, to state that 50 events were disrupted or avoided using NSA surveillance feels perhaps a bit high. This leads us to our next topic.
Sean Joyce, FBI deputy director, today pointed to Khalid Ouazzani as someone that had been stopped. The mentioned effort was the exploding of a bomb at the New York Stock Exchange. “Ouazzani had been providing information and support to this plot,” Joyce said.
As reported by Wired, Ouazzani’s lawyer disputes that, claiming that he pled guilty to money laundering, and that “Khalid Ouazzan was not involved in any plot to bomb the New York Stock Exchange.” It’s also worth noting that his plea deal mentioned no such plot.
In a real way, this appears to be another somewhat hollow example of how recently uncovered NSA programs have proved critical to national security, which is the stated reason we should allow elements of our privacy to be eroded in the face of physical danger.
The USA Today recorded an incredible interview with three whistle-blowers who were all formerly employed at the NSA. The video is worth your time. Here’s the nub of the discussion, in the paper’s words:
They say the documents leaked by Edward Snowden, the 29-year-old former NSA contractor who worked as a systems administrator, proves their claims of sweeping government surveillance of millions of Americans not suspected of any wrongdoing. They say those revelations only hint at the programs’ reach.
That final segment mirrors what the AP reported over the weekend, that the NSA’s overall reach into the data streams of the world is far greater than what PRISM and the phone program are capable of.
Breaking now is a report from the Washington Post that Google will challenge gag orders associated with Foreign Intelligence Surveillance Court data requests. The company will base its arguments on the First Amendment.
That’s what you need to know now. More as it unfolds.
Top Image Credit: Andrew Malone
Google has filed a petition with the Foreign Intelligence Surveillance Court citing its first amendment rights as it asks for permission to disclose controversial Foreign Intelligence Surveillance Act (FISA) requests.
The company revealed in a Google+ post that it is seeking to separate out federal criminal requests from those related to national security:
We have long pushed for transparency so users can better understand the extent to which governments request their data—and Google was the first company to release numbers for National Security Letters. However, greater transparency is needed, so today we have petitioned the Foreign Intelligence Surveillance Court to allow us to publish aggregate numbers of national security requests, including FISA disclosures, separately. Lumping national security requests together with criminal requests—as some companies have been permitted to do—would be a backward step for our users.
The Washington Post obtained a copy of Google’s motion, which referred to the first amendment, which protects freedom of speech, and the high value that the company places on transparency.
According to the Post, Google is specifically asking to reveal the number of national security requests it receives and how many user accounts are affected.
Last week, Google sent an open letter with a similar request addressed to the US Attorney General and the head of the FBI. The company cited a need to defend itself from inaccurate claims that suggest it is giving the government “unfettered access” to its data.
Facebook announced last week that it would begin publishing national security orders in its transparency reports. Apple and Yahoo have followed suit as well.
The National Security Agency has come under scrutiny this month after a series of reports revealed a massive surveillance apparatus that was believed to have the cooperation of the technology industry’s biggest players. President Obama has spoken out in defense of the NSA programs, noting that citizens aren’t getting the “complete story”. The FBI has pointed out that the data collection programs helped the agency thwart bomb plots against the New York Stock Exchange and the New York subway system.
Photo credit: Justin Sullivan/Getty Images
Adobe today announced that publications created with its Digital Publishing Suite (DPS) have surpassed a total of 100 million publication downloads. DPS is Adobe’s software collection designed to help publishers create content for tablets and mobile devices.
The company noted that the number of brands and corporations using DPS has jumped 30 percent over the past six months.
Adobe marked the milestone as it announced its second quarter earnings. The firm beat expectations with revenue of $1.011 billion and earnings per share of $0.36.
The company released a major update to its Creative Cloud offerings on Monday as it navigates away from a software purchase model toward cloud subscriptions.
Feature Image Credit – Thinkstock
Microsoft’s efforts to promote the Xbox One on Facebook have devolved into an old-fashioned ASCII art flame war.
Xbox One and PlayStation 4 faced off last week at E3, and by most accounts, the Xbox took a bruising. Massively unpopular policies regarding used games and persistent Internet connections have left Microsoft with a significant public relations problem on its hands.
After Microsoft changed the cover photo on its Xbox Facebook page on Monday, Sony fans took to the comment thread to post hundreds of ASCII Sony logos, middle fingers and face palms. Microsoft loyalists have responded with the occasional thumbs up, but they appear to be vastly outnumbered. The thread has attracted over 14,500 comments.
Microsoft is taking it all in stride. The company has posted several pieces of ASCII art of its own, dedicating them to all of its “ASCII loving Facebook fans and followers”:
Header image credit: Wavebreak Media
The arrival of the first Ubuntu OS-based smartphone took one step closer today with the formation of the Ubuntu Carrier Advisory Group – a collection of operators around the world that want a say in the ongoing development of the Ubuntu smartphone OS.
Canonical, the company behind the open source operating system Ubuntu, first outlined its plans to have essentially the same version (using the same kernel, at least) of its platform running on PCs, TVs, smartphones and tablets at the beginning of the year but little progress has been seen in the interim months.
However, with the formation of the Carrier Advisory Group (CAG), we can at least rest assured that the industry is considering the possibility of rolling out Ubuntu smartphones at some point in the future.
Among the initial founding members are EE, Deutesche Telekom, Korea Telecom, telecom Italia, LG UPlus, Portugal Telecom, SK Telecom and “the leading Spanish international carrier”.
The aim of the CAG will be to discuss various aspects of development of the platform and will cover things like ways to differentiate it for operators and OEMs (Original Equipment Manufacturers – device makers), which HTML5 standards it should support and how best to establish marketplaces for apps, content and services.
Canonical said the group will also aim look at things like platform fragmentation, revenue share models and payment mechanisms and standards.
The company also noted that other national or internation operators are still welcome to join the CAG, adding that only the group’s members will have access to early information about device manufacturer plans to support the OS, as well as the opportunity to be a launch partner when the first devices do indeed start rolling off the end of the production lines.
Exactly when that will be is unknown, but in the past Mark Shuttleworth, founder of Canonical, has said that the first smartphones should arrive from around January 2014.
Image Credit – Thinkstock
The team behind the Dublin Web Summit are nothing if not ambitious – every year this event in the Irish capital gets bigger, and for 2013 they’re aiming at making it more of a SXSW-style festival than simply a tech conference.
Among the changes this year, the Web Summit is boosting its offering for startups. As usual, the centerpiece for this is the startup competition, which this year will be called PITCH. The exact judging panel hasn’t been firmed up yet, but last year’s included YouTube co-founder Jawed Karim and Michael Birch of Bebo fame and the 2013 panel will be drawn from the Summit’s speaker lineup, so you can expect to pitch in front of some well-known names from the tech scene if you make the grade.
PITCH will have two tracks, meaning that two overall winners will be crowned on the main stage at the end of the Web Summit. Meanwhile free exhibition space will be offered to selected startups, which should be a good way to boost your visibility when you’re there, whether or not you make it into the competition.
Big-name speakers lined up for the 2013 Summit include Di-Ann Eisnor, VP Community Geographer at Google’s latest acquisition, Waze; Digg founder turned Google Ventures VC, Kevin Rose; angel investor Esther Dyson; Phil Libin, CEO of Evernote; Joe Lonsdale, co-founder of Palantir and a partner at Formation8, and Niklas Zennstrom the founder of Skype and Atomico.
The Summit will also welcome Tony Hawk – a name that gamers and skateboard enthusiasts alike will instantly recognize. He’s not just focused on his Ollie Airwalks and 360 Spins, though. The Tony Hawk Foundation has donated over $5m to help fund hundreds of skate parks across the US, and he’s authored a best-selling book – ‘How Did I Get Here: The Ascent of an Unlikely CEO’.
As a media partner for the event, The Next Web looks forward to doing a Nosehook Impossible and Railstand as we cover the Dublin Web Summit on 30-31 October 2013. Tickets are available now.
Image credit: Thinkstock
Huawei launched the Ascend P6 today, the world’s slimmest Android smartphone with some robust mid-to-high end specs.
The handset was unveiled at Huawei’s ‘Beauty’ event in London, just days before Samsung debuts a number of new Galaxy and ATIV devices at its dedicated ‘Premiere 2013′ event in the city.
The Ascend P6 is just 6.18mm thick and comes with a 1.5GHz quad-core processor in a sleek, metallic body. It offers a 4.7-inch high definition display – no word on the resolution for now – and what the company describes as an “industry-leading” 5-megapixel front-facing camera.
It’s joined by an 8-megapixel snapper on the front, capable of shooting at an aperture of just F2.0 and a 4cm macro view. It also supports 1080p video recording and playback, which is the staple for high-end smartphones these days. Huawei revealed today that the device also uses its new IMAGESmart Enginge with Auto Scene Recognition to help casual smartphone users shoot better images on Auto.
The device runs on the latest version of Android, version 4.2.2, with Huawei’s custom Emotion UI slapped on top. There are over 1,000 pre-generated themes to choose from now, alongside three designs created specifically for the Ascend P6′s new colors. The handset is also powered by a 2000 mAh battery, which is competitive but not industry-leading by any means.
“Building on the success of our Ascend P series of fashion smartphones, the Huawei Ascend P6 provides unsurpassed technology and a design that is simply stunning,” Richard Yu, Chief Executive Officer, Huawei Consumer Business Group said.
The device isn’t a huge surprise though. Huawei confirmed its existence in May, using a number of teaser images and a post that revealed very little in terms of detail or specs. The @HuaweiDevice Twitter account then posted a high-resolution image on June 14 teasing the Ascend P6 in its black color variant.
It was followed with a second image yesterday, however, that showed a white version of the smartphone with an unusual metallic case:
Huawei is yet to make any real impact with a high-end Android smartphone, in part because it’s always focused on building devices at the lower-end of the price scale. Samsung currently dominates this space with the Galaxy S3, Note II and newly launched Galaxy S4 – which passed 10 million global sales in its first month – and it will take something rather special to knock it from its lofty perch.
HTC, Sony and a number of other competitors have tried to differentiate themselves, but their efforts are yet to resonate at anything like the same scale. Huawei is still a fairly unknown brand in Western markets, but an eye-catching device such as this one – especially if it can boast the title of the world’s thinnest smartphone – would help it stand out from the crowd.
The Ascend P6 has a recommended retail price of €449 and will be available in black, white and pink with matching color cases. It will launch in China later this month before being sold in Western Europe in July through Vodafone, Telefonica, Orange, H3G, O2, Carphone Warehouse, TalkTalk, Media Markt & Saturn, TIM and online with Amazon and CDiscount. A wider international release hasn’t been detailed yet, although Huawei added that “other markets” would soon follow.
The rumored upcoming HTC One Mini smartphone, previously all whispers and hearsay until now, will ship to customers with that name and include a 720p resolution display, according to one of HTC’s own websites.
The company inadvertently confirmed the existence of the HTC One Mini’s name by posting its User Agent Profile to the HTC-owned Taiwanese domain htcmms.com.tw.
There’s not a lot of info to be gleaned from the pages in terms of the expected specs of the device, but it does confirm that it should arrive running Android 4.2 Jelly Bean and will have a 720p (1280 x 720 pixels) screen resolution. Judging from the page, we’d expect the model number of the HTC One Mini to be PO581. Similar information surfaced ahead of the release of the original HTC One, which can also be found on the site with its model number of PN071.
Official information about the HTC One Mini is thin on the ground, although Engadget said last week , citing tipsters, that the device will arrive with a 4.3-inch display of lower resolution than the original HTC One’s 1080p offering.
The device is also expected to keep the same design as its larger sibling, meaning dual front-facing speakers. Other details such as camera specifications or processor power are still unknown but with the leaks becoming more frequent and HTC likely wanting to ride the wave of popularity its One device is currently enjoying, we’d expect to see official details sooner rather than later.
Naturally, TNW asked HTC for comment on the One Mini, but a spokeswoman for the company simply told us that “HTC does not comment on rumor or speculation”.
The introduction of smaller versions of flagship handsets has also been seen in Samsung’s product lineup with the imminent launch of the Galaxy S4 Mini. However, where Samsung has a broad range of devices at a variety of price points, HTC’s One Mini will play a more key role in its range as it looks like it will essentially fill its mid-range handset slot for the forseeable future. Last year, HTC released a number of HTC One-family devices including the HTC One X, S and V.
Image Credit – AFP/Getty Images
Netflix has announced that it will begin operating in The Netherlands later this year, further expanding its European footprint. The Netherlands, Netflix’s seventh European country, is a relatively small market for the streaming video service, but in keeping with Netflix’s more cautious approach to moving into new countries after its aggressive international expansion last year lost money.
After breaking into several international markets, including the UK, Ireland, Norway, Denmark, Sweden and Finland, in 2012, Netflix said in January that it would dramatically decrease the rate of its overseas expansion in 2013. During the past six months, Netflix has not launched in any new countries.
In its first-quarter earnings report this April, Netflix said that it expects a profit of up to $149 million from its U.S. streaming business in the second quarter, but losses of up to $81 million from its international streaming in 40 countries. The company’s U.S. business is also given a boost by its DVD-by-mail segment, which will contribute additional profits of up to $112 million.
Netflix now has 7.1 million international users in Canada, Great Britain, Ireland, Scandinavia and parts of Latin America and the Caribbean. The streaming video company currently has 29.2 million streaming subscribers in the U.S.
The company did not give any details about its catalog or pricing, but it did say that users in The Netherlands will get access to Hollywood-produced, local and global TV series and films, including Netflix Original Series “House of Cards” and “Arrested Development” on their mobile devices, PCs and game consoles. A site for The Netherlands is now open for notification sign-ups.
Video services provider Ooyala is setting up an R&D operations in Singapore, and is hiring researchers and data scientists for the facility.
The company provides video technology to media companies and telcos, enabling them to stream their content online such as the Australian Open, or helping ESPN embed videos in tweets.It claims to have a collective viewership of about 200 million across 130 countries each month.
Ooyala has had a small staff of four in Singapore since last year, but the new facility will bump up its presence here to about 20 when it’s operational in 2014, said CEO, Jay Fulcher. The center here will focus on researching localized products for Asia, as the company expands outside of the US. Ooyala will keep its core engineering team in Mountain View, where most of its 300 staff are. It also maintains offices in Sydney, Tokyo, LA, New York and London, with teams of about ten in each of them.
Fulcher wouldn’t say how much the company is ploughing into the center here, but said it is making “significant” investments into its growth. Last year, the company raised a massive $35 million round, led by Australian telco, Telstra. It was its fifth round to date.
The company isn’t profitable, but Fulcher said Ooyala can make its books positive “at any given point”, but is choosing to spend aggressively on expansion in the meantime.
45 percent of its revenue comes from North America, with Asia, Latin America and Europe after, in descending order. When I pointed out that it’s generally unusual for companies to have Asia as their second-largest revenue contributor, Fulcher said it’s because Ooyala landed a large client in the Times Group of India. “In fact, that was our first client ever,” he said.
As Ooyala expands in Asia, it’s also chasing the growing audience watching video on mobile devices here. According to its latest video index report, Singapore viewers had the longest live viewing sessions at 52 minutes on average.
57 percent also watched online videos to completion, indicating that they were engaged with the content. And more viewers in the region are watching videos longer than ten minutes—considered “longform” for videos, said Fulcher. A third of viewers in Singapore, Hong Kong, Japan and Thailand watch these longer videos.
Other video networks focusing on mobiles are making an active play for the region, too. California-based Vuclip just reported that its mobile video network has 80 million monthly viewers, with most of them in the emerging markets in Asia and Latin America. It has raised $35 million to date, and earlier this year acquired another mobile video player, Jigsee, to expand into India.
Teambox has added high-definition video conferencing, adding to a list of providers that are adding video to their collaboration platforms.
The Teambox offering is of particular note, as it fully integrates video conferencing and screen sharing directly into the collaboration platform through Zoom, a video-conferencing service. The service allows for video conferencing of up to 25 people across desktops, tablets and mobile devices. It supports iCal, Outlook and Google Calendar.
Teambox has earned recognition for its capability to integrate third-party apps for an inline experience. It’s in some sense a framework for aggregating apps such as Box and Evernote.
But is it that much better than using third-party services in conjunction with a collaboration platform?
Tibco’s Tibbr activity stream product now integrates third-party web-conferencing tools. A customer can start a live meeting by choosing their own platform. The intent is to allow enterprises to leverage the platforms they have invested in.
So there are benefits to both ways of integrating video conferencing with a collaboration platform. Most of the services, such as Microsoft Office 365, have integrated video conferencing, mostly as an add-on.
But the tide is shifting. Services such as Unison now offer video chat through WebRTC, the real-time communications technology that is native to the browser through a JavaScript API. Google Chrome, Firefox and Opera now support the open-source project.
Then there are the services like Pexip, which I looked at last week, which is making video conferencing available as a software.
In all of this, there is one theme. Video conferencing is now moving to software, making integration into collaboration services easier than ever before.
Design-focused commerce company Fab has raised that round of funding we scooped a few months ago. Fab is announcing today that it has raised $150 million in the first tranche of the company’s Series D round of financing. We’re told that $150 million is the first part of a larger Series D round that Fab expects to complete over the next few months. New to this round is Chinese Internet giant Tencent, who will also have a board seat at Fab; and Japanese conglomerate Itochu. Previous investors Atomico, Andreessen Horowitz, Menlo Ventures, RTP Capital, Pinnacle Ventures, Lars Hinrichs, and Docomo Capital also participated in this latest round of financing.
This brings Fab’s total funding to $310 million. We’re hearing from multiple sources that the pre-money valuation of the company was $1 billion, as we had reported in April (a spokesperson for Fab has confirmed the valuation). And we’ve also heard from a source that Fab will be raising another $100 million or more in the later part of this round. At Fab’s last round of financing in 2012, the company was worth around $600 million. Past investors include First Round Capital, SoftTech VC, Baroda Ventures, Ashton Kutcher, Guy Oseary, Thrive Capital, Kevin Rose, SV Angel, The Washington Post, VTB Capital, Phenomen Ventures and the Times of India.
Founder and CEO Jason Goldberg said the company started down the fundraising route in March to raise enough capital to have several years of runway, at least until 2015. He added that for this round there was $400 million worth of interest coming from investors.
Growth, International And Another Pivot
Fourteen million users strong, Fab is continuing to grow at a fast clip after its initial pivot. Last year, the company saw $150 million in revenue, and revealed in February that sales were up by nearly 300 percent in January 2013 over January 2012. In fact, January was Fab’s third-highest sales month ever.
According to the company, Fab should reach $250 million in 2013 sales. Fab’s now achieving 43 percent gross margins, up from 29 percent in 2011. Interestingly, Fab says that most of its revenue is not derived from flash sales, which was the initial model Fab adopted after its pivot in 2011. As we wrote in this profile of the company, Fab infamously pivoted from Fabulis, which was a social network for the gay community, into a flash sales site. Fab says that two-thirds of sales are currently not from the flash-sales on the site, and the company recently rebranded to reflect this change. And 50 percent of Fab’s sales are in home categories.
In May, Fab debuted its new design store, which makes it more of an integrated e-commerce site. You can access design pages by room, type of furniture, color, designer and more.
International is also a huge potential growth area for the company. Fab has 1 million members in the UK, which is generating nearly 40 percent of its sales in Europe and is its fastest-growing market outside the U.S. Asia is the next frontier, which is why Goldberg and Fab are bringing on Tencent and Itochu as partners.
As Goldberg explains, there are currently only four e-commerce companies in the world that are valued at more than $10 billion: Amazon, Alibaba, eBay, and Rakuten. He believes that Fab has a legitimate chance to be the fifth by leading in what he calls Emotional Commerce. This basically means that Fab helps people discover the items they love and want.
Part of Fab’s plan to take over emotional commerce involves making its own line of products and home goods. Fab is also partnering with designers to manufacture and sell home furnishings exclusively through Fab. Additionally, Fab is experimenting with brick and mortar stores, with the first store debuting in Hamburg, Germany. Mobile is also a huge growth area, with one-third of sales being placed via mobile. And international will also be a major strategic focus for Fab, which just acquired German custom furniture store Massivkonzept. Fab sells products in 27 countries and 40 percent of sales today occur outside the U.S.
What Fab Is Spending The Cash On
$150 million is a lot of cash, and Fab is raising more. Where is the money going? Goldberg says that Fab will be investing in additional enhancements to its supply chain, logistics, customer service, technology, and merchandising. At the beginning of 2012 it took 16 days — on average — from time of purchase to shipping a product. Today, 75 percent of Fab’s orders ship within 24 hours of purchase, and Fab wants to make sure this is the case for 100 percent of the products sold on the site. This year Fab will open its own new Fab-operated warehouse in The Netherlands to serve European customers. In 2014 Fab will open a warehouse in the Las Vegas area.
As mentioned above, Fab will also be doubling down on manufacturing and designing more products in-house, as well as working with designers to offer items exclusively on Fab. We can also expect more development in social and mobile. And Goldberg says Fab will be putting more investment in international (likely via more acquisitions, as it has bought five companies in two years).
With the Tencent investment, Goldberg says that Fab will be working together to expand the site’s presence in China.
As for why Fab has raised as much as it has in only two years, Goldberg maintains that this is how retail works. “Tell me an e-commerce business that is worth more than $5 billion that hasn’t raised a lot of money,” he says. To fund things like logistics, fulfillment, inventory and manufacturing, a business needs a lot of capital, he explains. He adds that if Fab stayed as a U.S. business, the company wouldn’t need to raise as much.
There is also now a somewhat clear path towards profitability, at least for the U.S. and European businesses. Goldberg says that Fab will likely become profitable in its U.S. and European operations by Q4 2014 or Q1 2015.
For pretty much as long as anyone can remember, a relationship triangle, or a “love triangle” if you will, has taken shape between companies and the PR firms that represent them and the press that covers them — existing in some sort of recursive loop. Yet, while that triangle should have come to represent a symbiosis and a valuable communication network, somewhere along the way the triangle broke down. (Defying the laws of Geometry, even.) In reality, today this relationship is more like the Bermuda Triangle.
While the matter of who is responsible for the disconnect is subject to debate, the PR industry (for right or wrong) usually takes most of the blame. While the causes are numerous, in the end, most of the problems inherent to the startup-PR relationship are a matter of transparency (or lack therof) and the inability for either side to find the best (and most mutually beneficial) match on the other.
AirPR launched into private beta last year with $1 million in seed funding from 500 Startups, Mohr Davidow Ventures, WordPress founder Matt Mullenweg and others to help solve this problem by creating a marketplace in which startups can find PR representation that’s right for them, and vice versa. Pitched as a kind of “Match.com for PR,” at launch AirPR focused primarily on matching top, pre-screened PR talent in the U.S. with technology startups looking for (and able to pay for) representation.
Last week, after a year of testing the system in closed beta, iterating and tweaking, the San Francisco-based company has finally opened its marketplace to the public. With its public launch, AirPR is opening its doors to all tech startups, expanding its marketplace to include companies in the lifestyle and consumer goods verticals and adding a few tweaks to its formula.
After watching 70 companies go through its PR matchmaking system and processing feedback from PR veterans, AirPR cut its onboarding process in half. Now, in order to find the best match, startups enter the date they want their PR campaign to begin and then answer a series of questions about their focus, stage of development, what kind of help they’d like, how much funding they’ve raised, and so on. AirPR then screens the startups and, if they meet its quality standards, uses the startup’s answers to match them with reps whose experience best fits that criteria. If not, they’re declined.
After being alerted to the incoming business leads, reps then place bids for the client, at which point the startup can sift through the offers, compare them, select the best option and pay for a 60-day contract.
Based on feedback from startups and PR pros, at launch, the platform also now includes a recommendation system, in which AirPR provides the top three matches based on the data its collected on the PR side. Initially, the company provided a list of all possible matches, but the co-founders tell us that companies were often overwhelmed by an abundance of choice and were less inclined to finish the process than if the system served provided three of its closest matches at the top.
In turn, by recommending PR reps and being more proactive in pushing reps to reach out to specific companies, the conversion ended up being faster and a higher percentage of companies closed the deal.
While there may be contention over the cause, most will likely agree that the PR model as it currently stands is in sore need of improvement. As someone who stands at one of the corners of the PR Bermuda Triangle, I can attest to this. PR reps have a tough job, and, as in any interest there are incredibly talented, bright firms and reps that get lumped in with the offenders who blanket journalists inbox with copy-and-pasted pablum and poorly worded pitches that aren’t even relevant to a writer’s beat.
Any improvement on the overall quality of the PR-startup relationship stands to benefit everyone involved, and while it’s still early to say just how effective AirPR’s model will be, it’s worth the effort.
While the startup’s matching algorithm and marketplace model are familiar, what may be even more valuable to the Bermuda Triangle (and to the industry at large) is the insight that can be pulled from the data AirPR collects on how startups are using the system, what they want help with, how effective PR is at meeting its goals, costs, publications they want to speak to, among other things. This data can help both startups and PR people be more effective and precise with their pitches and outreach. (One can also, much to the delight of everyone except PR, imagine AirPR eventually using this data to make a list of the “Top 10 Most Effective PR Firms,” for example.)
AirPR allowed TechCrunch an early look into some of the data (and insights) it’s collected thus far, and the conclusions are telling. For starters, as Alex Wilhem of TNW shared earlier this week, the most popular keyword or service startups were looking for help with was “Growth,” with 84 percent of companies listing that as top priority, followed by 69 percent of companies looking for “Brand Awareness,” 36 percent for “Launch,” 25 percent for “Fundraising,” and 16 percent for “Recruiting.”
Next, another one that will be of interest to PR reps: The company found that fixed bids (a bid with one amount, like $20K for a 4-month project, for example) were 29 percent more likely to close than retainers (monthly bids). In explaining just why in the sam hill we should care, AirPR CEO Sharam Fouladgar-Mercer explains that, historically, the PR industry has primarily operated on a retainer model.
However, the monthly averages for both fixed bids and retainers are almost the same, he says, so the data thus far seems to show that the reliance on the retainer model is psychological, rather than what its customers want. Clients seem to appreciate the one-time fee with specific deliverables, the CEO explained — a conclusion that helps startups and PR move closer to transparency rather than clients being forced to ask “what exactly are we paying for?” each month.
To date, AirPR has found that the average bid accepted on the platform breaks down to roughly $5K/month in fees (whether fixed or retainer) for an average of 5 months. In other words, companies that have between $500K and $4 million in funding want shorter-term contracts with lower rates. This, in and of itself may not be surprising, but the more data it collects, the more it will be able to reveal correlations between not only funding and how much they’re willing to pay, but size of bids and the work they want done, the industry they’re in, and so on.
The CEO also tells us that several of the PR reps on the AirPR platform have doubled their business since joining and are “now looking to grow their practice with other folks on the platform, like a co-op situation,” he says. To this point, the idea from the beginning has been to not only help startups who often have no idea where to start when looking for PR, but to serve PR firms and reps that are looking to expand their practices. In the end, the AirPR co-founder tells us, this helps them weed out lower quality PR and put the best firms and people in control.
If AirPR can follow through on that idea, its marketplace could end up providing a lot of value to both startups and the PR firms that love them by helping them navigate the Bermuda Triangle and get more bang for their buck.
Months after Hurricane Sandy left New York scrambling for power, the city is unveiling 25 solar powered charging stations in parks and public spaces throughout the five boroughs, starting today.
The pilot project between AT&T and the city of New York is officially called AT&T Street Charge. (DUMBO firm Pensa handled design, and Goal Zero provided the solar technology, AT&T handled the cash.) The stations will move to new locations at the beginning of July, rotating throughout the city until September. After that, we’ll see what becomes of them.
Most are a little out of the way for those who don’t go to Fort Greene Park, the Brooklyn Bridge Park, or Riverside Park on the reg, but solar powered, public, and free is a pretty great thing. Definitely better than those public charging stations that also charge you money.
Since the Union Square location won’t open until tomorrow, I headed up to Riverside Park to see what the good people of New York thought of it. If I was hoping for a rare Upper West Side mob scene — and I was — I was sorely disappointed. To be fair, it was an overcast Tuesday at 2:30pm. On a sunny Saturday afternoon when the adjacent Pier 1 Cafe is busier, I’m sure the station will be getting more love.
Joggers, cyclists, dog-walkers, and people who were otherwise not at work stopped by the charging station regularly and gave the attendant an “I’m just taking a look” or “I just wanted to see what it was” before moving on. It is a 12.5′ metal pole with six phone chargers at hip height and three arms at the top that resemble whimsical helicopter blades, so that is a valid reaction.
The most enthusiasm came from a group of 16-year-olds, who rushed the pole going, “Ooohhh, coool.” When I asked them if they’d feel safe leaving their phones there, all five of them gave an immediate and decisive no.
“Are you guys from New York?”
So there you go. But two of the boys did stick around for a few minutes to plug in their phones.
“It’s okay if you’re standing right next to it.”
“I’d pull up a chair.”
Another man checking out the pole said that while he wouldn’t feel comfortable stepping away from his phone — “I hardly like to leave the house with it” — he could see imagine huge lines in the event of another blackout.
The attendant, who works for a company hired by AT&T for the launch, estimated that about 20 or 25 people had charged their phones on the pole in the four hours since she arrived at 11am. In the hour that I was there, only three did, teenage boys included.
A 24-year-old cyclist named Shana reclined in a nearby cafe chairs waiting for her iPod to charge. Asked if she felt comfortable sitting 15 feet away from it, she replied,
“Well, it’s about 6 years old, so…”
Most people seemed to think it was a great idea, especially in light of Sandy, but no New Yorker is going to leave their stuff lying around. I think a nearby Park Enforcement official put it best:
“Never leave anything unattended.”
And so the charging stations stood in the June drizzle waiting for the public to stand right next to them.
[Image: AT&T]
Instagram is planning to launch video functionality in two days. But don’t go deleting Vine just yet. Before shoving Vine’s into the deadpool, let’s just calm it down a second.
Vine has been declared by many as the “Instagram for Video.” Instagram’s own video product is likely already too late to squash Vine like a bug. Heck, Facebook couldn’t even get Poke and Messenger off the ground after incumbents clobbered the space. What makes anyone think Instagram video would be any different?
Vine launched in January of this year, just after the holidays, and spent a few months ramping up the user base before launching on Android a few weeks ago. At the time, Vine had 13 million downloads. Not too shabby for approximately five months of work. It took Vine a few days to swing to the top of the App Store, and the same was true on Google Play following the Android launch.
When Instagram launched on Android, seventeen months after launching on iOS, it had around 30 million users. Obviously, users are a different metric than downloads, but you can see how Vine’s growth is relatively astounding given the timeframe. Especially when you factor in the less pointed evidence: Vine shares have surpassed Instagram shares on Twitter, for example, or even just hearing the term “Vine it” regularly in every day life. And having Twitter as a parent company doesn’t hurt either.
Vine is already established, and better yet, making waves. Vine was used by the Tribeca Film Festival for a special #6SecFilm Contest. The app has been toyed with by designers and advertisers to build new interactive music videos. Brands love Vine because it lets products move in ways that Twitter and Facebook don’t.
And Vine, of course, is still iterating quickly. We’ve seen the team respond to feature requests like the ability to use front-facing camera as well as rear-facing camera, and I wouldn’t be suprisedt to see interesting additions like Voiceover or Animation pop up soon.
Instagram is a powerful foe. The app has over 100 million users, and is now owned by the most powerful social network in the world. But this is far from the end of Vine.
First, Vine is the end product of what Instagram was built to be. Vine skipped past still photos, and filters to make those photos (taken with bad mobile cameras) look prettier, and the slow grind of adding @mentions and photo maps and all those iterative feature tweaks.
Instead, Vine launched as a true Instagram for video, which now has an active and seemingly happy user base. It’s not Twitter’s Cleaner fish, even if Twitter bought up the app and launched it into existence (unlike Instagram’s organic growth that was later bought up by Facebook).
But where Instagram feels like a consumption app first (a time sink, almost), Vine doesn’t. Scrolling through my Vine stream is like having a hangover during an earthquake. Most often, it’s a lot of clanging and wind noise coupled with shaky video of my friends’ latest vacation.
Still, Vines are excellent content. I am utterly pleased when I see a Vine.co link pop up in my Twitter stream, or surface in someone’s Facebook Timeline. I’m even more elated by a Vine.co link sent to my desktop. I like to watch the six-second thrill ride in all its glory. There’s something special about getting a glimpse (in video no less!) into someone’s world.
Instagram is a different story. There was a time when I could scroll through Instagram for days. I’m not so entranced by the photo-sharing phenom anymore. Maybe I’m the only one who feels this way, but I get a sense of Instagram fatigue, both on the creative and consumptive side.
Perhaps it’s due to the fact that I’m all hopped up on Vine. Maybe Instagram’s had its time?
People like consuming video, sure, but it’s almost shocking how much people love making videos, too. Especially when given the right tools. When I see something cool happening out in the world, Instagram is no longer enough. I pray to the social media gods that this wondrous, hilarious, or downright insane scene before me will last the six seconds I need. I sense how strongly other people feel the same as I do.
Instagram for video might offer a similar creative experience, but it’ll be hard to do so without copying Vine’s ability to string together multiple clips in such an easy manner. Easy is the key. And we all know what happens when Facebook tries to copy a threat. Messenger launched after WhatsApp and Viber were blowing up. Poke launched to (shamefully) combat Snapchat. And here comes Instagram, ready to take on Vine.
But will Vine crumble where other competitors stood firm? Will it lay down and die?
Oh no! Not Vine! Vine will survive.
It happened to me. Yes, I once uploaded a pic of my friend to Facebook from my phone, forgot to change the setting from “Public” to “Friends” and had the friend get told that day by a random person: “Hey I just saw a picture of you on Alexia from TechCrunch’s wall!” So now I’m circumspect.
Apparently this social media disaster was happening to more people, because Facebook just fixed it — at least on iOS. Android has apparently had the new feature for over a week.
Now iPhone users too are able to easily edit Facebook’s photo privacy settings — by selecting the drop-down arrow on the status update and selecting “Edit Privacy.” Though you still can’t edit the update text or any comments themselves from your iPhone, this is pretty useful. The last time I messed up on a photo privacy setting, I had to access Facebook’s Mobile Web page on a foreign connection to fix it. Not pretty.
In addition to this nod to paranoid people, Facebook iOS Version 6.2 allows users to post the emotion and action updates they’ve come to know and love on the web, including Happy, Sad, Wonderful and, my favorite, Loved.
You can also now start a new conversation with a photo sent to you in messages in Version 6.2, though I don’t think this feature will be remembered enough to see that much traction, unless teenagers are exhibiting some novel group photosharing behaviors on Facebook Message that I don’t know about.
And speaking of Facebook Message, let me take this post about an app update to let you know that a standalone Messenger for iPad is likely not happening, though a trial app was in the works when we reported on it. Basically Messenger was not seeing the growth Facebook hoped for (turns out people don’t want a messenger app PLUS a Facebook app) after Facebook’s primary app became less buggy and slow. So, nixed.
PSA: Update your apps periodically, people.
More and more jobs deal in the virtual realm, and are done by people sitting down at desks at computers. Desk work can be made interesting in its own ways, but it’s always fun to visit a company that’s actually making physical stuff.
So for this episode of TechCrunch Cribs, we jetted over to New York City to check out the headquarters of Quirky, a startup founded back in 2009 with the aim of “making invention accessible.” Quirky is a company that crowdsources ideas for unique physical products — gadgets, kitchenware, furniture, and the like — and manufactures them at large-scale production so that they can be actually sold in stores.
This process entails lots of prototyping, so Quirky’s downtown Manhattan office is full of fun stuff like 3D printers that help them bring invention ideas to life. It all made for a really fun tour, led by Quirky’s co-founder and head of people and culture Nikki Kaufman, and you can see it all in the video embedded above.
As it promised it would, Google is fighting the government’s gag order on releasing how many users are monitored by the National Security Agency. Unlike Facebook and Microsoft, Google and Twitter publicly rejected a government deal to disclose the total number of spying warrants for user data, which would include (but not detail) the number of requests coming from the controversial Foreign Intelligence Surveillance Court (FISA).
“Lumping national security requests together with criminal requests—as some companies have been permitted to do—would be a backward step for our users,” explained a public statement following the petition.
Unfortunately, as both I and the Washington Post have suggested, even if Google is successful, the most pressing concerns would remain a mystery. Google’s transparency report discloses the number of court orders and users affected, but not what data was given up. Can the government read emails, monitor Gchats and Google Voice phone calls, as leaker Edward Snowden has claimed?
Additionally, if it’s true that the government can demand broad swaths of data, like search logs, the number of affected users could number in the millions. Releasing the total number of users affected would be tantamount to revealing vital sources and methods of surveillance.
Citing their 1st Amendment rights, the petition notes that “Google’s reputation and business has been harmed by the false or misleading reports in the media…Google must respond to such claims with more than generalities.”
There is reason to be optimistic that allowing Google to detail the FISA requests would help repair its reputation. Facebook reported that between the 9,000-10,000 government requests, only 18,000-19,000 users have been affected. This seems to cast doubt that a single government request permits wholesale monitoring of an entire population’s activity. So, while we wouldn’t know what was being given away, most users could breathe easy that they aren’t a target.
I’m sympathetic to Google’s position; certainly they probably want to disclose everything, or just stop the snooping altogether. But, even under the best case scenario, the public is still in the dark.
Read Google’s full petition below.
Editor’s note: Jeff Jordan is a partner at Andreessen Horowitz and is on the boards of Airbnb, Belly, Fab, Circle, Crowdtilt, Lookout and Pinterest, as well as Wealthfront and Zoosk. Previously, Jeff was president and CEO of OpenTable, which he took public in 2009. Before OpenTable, Jeff was president of PayPal, and he was previously the SVP and general manager of eBay North America. Follow him on his blog and on Twitter @jeff_jordan.
The venture industry is awash with talk of the “Series A Crunch”, where it’s getting progressively more challenging for seed companies to land follow-on financing. In my short two-year tenure as a full-time investor, I’ve seen this crunch hit very hard at a number of quality, early-stage consumer companies. Why is this happening? A number of factors are coming together to create this crunch.
A significant supply/demand imbalance has emerged between seed and Series A financings coming out of the economic near-meltdown of 2008-2009. In 2009, there were about the same number of seed and Series A financings, but the number of seed deals have exploded since then while the number of A rounds grew only modestly. In 2012, there were 2.5x as many seed financings as A-round financings, whereas historically these were more in balance. This suggests something like 60 percent of seeds could be stranded.
Investor expectations have expanded substantially. It’s become steadily less expensive to launch many consumer-oriented Internet businesses over the years due to things like Moore’s law, improving programming tools, the cloud and the ability to access users from multiple large platforms. Now we often see the kind of traction that we used to expect from Series B companies in Series A companies, and from Series A companies in seed companies. For example, a number of our recent Series A investments built multi-million dollar revenue run rates on their seed rounds. We’re getting spoiled. Combine this with the above supply/demand imbalance and you’ve got a situation where the bar is being raised exactly when the competition for the A round is becoming particularly fierce.
The source of seed capital has been changing. In recent years, the amount of seed investment from non-traditional institutional sources has increased dramatically. More and more seed capital is coming from sources like angels, “super angels,” micro-VCs and incubators. To under-score this point, we have close to a thousand separate angels as co-investors in the consumer companies in our less-than-four-year old portfolio. This influx of new capital has arguably had an inflationary impact on seed valuations, which obviously has an initial attraction to many entrepreneurs but can create challenges in a “crunch” scenario. These non-institutional sources of capital are not inclined or structured to potentially help a company secure additional capital in a crunch. And the higher valuations provide a higher hurdle that must be overcome by potential new investors in a crunched company.
The number of potential Series A investors appears to be contracting. The venture business is showing early signs of a significant consolidation. The amount of capital invested has trailed the amount raised for a number of years, and the capital that is being raised is increasingly consolidating among fewer, larger firms. The number of investors who can write that Series A check is starting to fall.
The impact of these factors is playing out before our eyes. We’re seeing more and more potentially promising companies who have spent much of their seed rounds to generate solid early traction, but not the kind of traction that sets them up well for a Series A financing these days given the higher bar. These companies face a brutal situation. They are running low on money. Prospective new investors want more proof, particularly given the higher seed valuations. And many of the existing investors, particularly on the angel side, become “tapped out” or “want to stay diversified” when approached for bridge financing. These companies’ futures are rapidly called into question. It’s been very painful to watch.
So here are a few suggestions for entrepreneurs who are trying to start consumer-oriented Internet businesses:
Raise more money in the seed round to give yourself runway to make the progress you’ll need for a Series A, along with some contingency if things don’t go perfectly along the way. The size of seed rounds has increased substantially in our firm’s short history, from under $1 million a few years back to almost $2 million this year.
But I’d argue that even these larger new rounds are often too small given the rising Series A bar. Increasingly, a $1 million to $2 million raise requires absolute perfection on the part of the entrepreneur. You should consider suffering a bit more dilution early on to secure the resources to deliver the metrics that will attract the more demanding Series A investors: things like up-and-to-the-right user and revenue results, deep engagement, compelling cohort economics, and a proven ability to acquire users with a positive ROI on their marketing spend.
Structure your round differently. I’d suggest getting more institutional participation in your seed round, as institutions are more likely to support a high potential but not-yet-ready-for-Series-A company in the event it encounters the crunch. That in no way suggests that follow-on financing from institutions is a certainty or even more likely than not, but my observations suggest the odds are higher. Similarly, consider structuring your seed deal in a way that doesn’t scare off potential new investors in the event that you’re facing a potential crunch. Obviously these recommendations can be interpreted as self-serving given my role as an institutional investor, but my motivation for writing this is in the hopes of helping even one entrepreneur avoid the pain and suffering I’ve been witnessing by those who have been caught in the crunch.
Raise from multiple institutional investors. This can help accomplish a few things. First, it brings more deep pockets to the table that can fund a Series A or a bridge if needed. Second, it can fire up the competitive juices of the participating VCs who don’t want to risk losing out to a rival on the A round at a hot seed company in which they’re both invested. Lastly, having multiple VCs can diminish any potential negative signaling issues down the road if an institutional investor in your seed round does not do the A.
Cultivate these institutional investors as you launch the company, updating them periodically on your progress and learning. Some entrepreneurs do this extremely well, managing to stay top-of-mind with investors and building a relationship, a track record and credibility. These can come in very handy with investors if you find yourself potentially entering crunch territory.
Resist the temptation to raise too early. We often encounter companies that come to us saying that they had inbound interest from another/other firm(s) and elected to use this as a signal to start broader fundraising conversations. But there’s interest and then there’s interest. One of the jobs of a VC is to network broadly with potentially interesting companies, and their “interest” more often than not does not result in funding. And if you swing and miss at an early round, it can be much harder to create positive momentum behind an A round once you go out again. You need to be disciplined. Wait until you have multiple months of metrics moving in the right direction before you start fundraising. Resist the temptation to talk to every prospective investor who calls when you’re not fundraising. Ironically, nothing piques the interest of an investor more than an entrepreneur who remains relatively inaccessible.
There are signs that the startup ecosystem is already correcting to mitigate the crunch going forward. The number of new seed financings is down meaningfully so far in 2013, which would help to correct the supply-demand imbalance. And capital is starting to be attracted to the gap between seed and traditional A rounds, which some term “mango seeds.” But higher investor expectations earlier in a startup’s life are here to stay, and the smart entrepreneur will take steps to mitigate follow-on financing risk. On each and every financing, they should ask themselves one key question: What do I need to prove in this round to get the next round?
I’d like to thank my partner Chaz Flexman for his many insights on this post!
Android home gaming consoles are nearly arriving for the consumer market, but one at least needs a little more time in the oven to bake. It’s the GameStick, the super portable USB-stick style device that plugs into an open HDMI port on your TV to turn it into an Android-powered gaming machine, and its release schedule is being pushed back another month until August, with a retail launch to follow after that, because of a need to gather more feedback related to the GameStick UI so that it can be refined prior to wide release.
GameStick wanted to nail the user experience strikes me as a familiar refrain; another company, Leap Motion, which also achieved lots of support from the community for a novel idea, said something very similar when it delayed its own product recently. In both cases, the apprehension about getting things right the first time around is understandable, since these are products that have few if any antecedents with demonstrated success in the wider consumer market.
The GameStick delay, though another one on top of its first ship date slip, isn’t yet one that should really raise any eyebrows – projects typically underestimate how long it will take to go to market on Kickstarter. The Ouya was also delayed from its original planned launch by three weeks, owing to “demand” on the retail side. BlueStacks’ GamePop hasn’t been delayed as of yet, but it’s targeting a more open-ended end of year launch, and that gives it some flexibility to make sure the experience is just right before putting too fine a point on things.
All of these companies are venturing into relatively uncharted territory, so delays are fine; you can’t hold them to the same standards as an Apple or a Samsung, and even those giants sometimes encounter problems shipping exactly on time. One, two, or even three small delays isn’t surprising; but once the months start to fall away and you don’t hear much, that’s when it’s time to worry.
Tired of your friends texting on their phones while they should be getting schnockered? This clever hack is called the Offline Glass and it’s designed to ensure that you and your friends don’t sit at the bar checking Wikipedia for who starred in The Greatest American Hero and whether Tabitha will totally come out tonight oh my god she won’t she and Christian just broke up oh god she’s with Raul and Paula and maybe she’ll come in an hour! In fact, you can’t hold your phone because of the unique shape of the glass’ bottom.
The glass has a notch cut out of it so it will only stand if it’s situated on top of a phone (an iPhone works best) and you can only use your phone if you’re also holding your beer. Knowing the average drunk person I suspect a) this will destroy hundreds of iPhones a night and b) this will result in lots of spilled beer, but by gosh if it isn’t a clever idea.
The glass is being used in the Salve Jorge Bar in Sao Paolo and was created by the Fischer & Friends ad agency in Brazil. You can’t buy one but, with the right tools, you could probably make a few. I’d like to see someone 3D print a few of these for house parties.
Whenever I go out with the TC team I make everyone play the phone game which consists of piling up all the phones in one place so no one can reach them. It helps encourage conversation and, unless they’re wearing Google Glass, the pained expression after the first few minutes of the game is mesmerizing. Here’s to anything that helps recreate that experience.
The Offline Glass from Mauricio Perussi on Vimeo.
Adobe just reported earnings for its second financial quarter of 2013. The company reported revenue of $1.011 billion and non-GAAP operating income of $247.3 for an earnings per share of $0.36 (though diluted GAAP earnings were only $0.15). That’s a little bit better than most analysts expected, especially with respect to the company’s earnings per share.
The Wall Street consensus was that Adobe would report revenue of about $1.01 billion and earnings per share of $0.34. These numbers, it’s worth noting, are very much in line with Adobe’s last quarter, when the company announced revenue of $1.01 billion and earnings per share of $0.35. In the year-ago quarter, however, Adobe still reported revenue of $1.12 billion.
“Our Q2 results reflect our leadership position in Digital Media and Digital Marketing,” said Shantanu Narayen, Adobe’s president and chief executive officer a canned statement today. “Creative Cloud is revolutionizing the creative process, and Adobe Marketing Cloud is quickly becoming the platform of choice for the world’s leading brands, advertising agencies and media companies.”
Adobe is clearly betting the company on its Creative Cloud subscription service, which is set to almost completely replace the company’s offering of shrink-wrapped software. Just yesterday, Adobe launched its latest offering of all of its major Creative Cloud apps, and today, the company announced that Creative Cloud now has over 700,000 subscribers. That’s up from 479,000 subscribers in the first quarter of 2013. The vast majority (92 percent) of its subscribers, Adobe says, are on its annual plan (vs. paying a slightly higher fee for a month-to-month subscription).
Adobe itself expects to hit over 1.25 million Creative Cloud subscribers by the end of the year and a number of analysts believe this is actually a very conservative number.
Besides Creative Cloud, Adobe’s second main group of services is its Marketing Cloud, which includes services for social marketing, media optimization, analytics, testing and targeting. Last quarter, Marketing Cloud achieved quarterly revenue of $215.4 million, a 20 percent year-over-year increase. This time around, Adobe reported Marketing Cloud revenue of $229.9 million.
It’s that time of the year again for us nerds to infiltrate Sand Hill Road, let loose, and enjoy some good food and libations. We’ve been hosting the TechCrunch summer party with VC firm August Capital since 2006. This year, as in years past, we’ll be partying on August Capital’s beautiful, sunny Sand Hill balcony on Friday, July 26. The party starts at 5:30 p.m. and goes til 9:00 p.m.
Tickets, which you can buy here, are $80 each and include drinks and food. We also have a number of sponsorship opportunities available and inquiries can be sent to sponsors@techcrunch.com.
TechCrunch parties have a history of being the place you want to meet your future investor, acquirer or co-founder. Case in point, back when TechCrunch founder Michael Arrington used to hold these ragers in his Atherton back yard; Box founders Aaron Levie and Dylan Smith met one of their first investors, DFJ. In 2010, we spotted 500 Startups’ Dave McClure writing a check to then stealthy startup Tello (which was recently bought by Urban Airship in December) at the August Capital party.
Hope to see you all there this year!!
About the 8th Annual Summer Party at August Capital
Hardware is so hot right now. So hot, in fact, that another European hardware startup is formulating an attack on the smartphone hardware space — joining the likes of Finland’s Jolla and Spain’s Geeksphone to have a go at handset making. The newest comer stepping in with a plan to shake up the “status quo” is called Kazam: a startup co-founded by a pair of former U.K. HTC execs, Michael Coombes and James Atkins.
Coombes, who spent just over a year and a half as a U.K. head of sales for HTC, according to his LinkedIn, is Kazam’s CEO. Prior to HTC he apparently worked for mobile and telecoms companies including Nokia and Vodafone. While Atkins, Kazam’s CMO, spent just over a year as HTC’s head of marketing for U.K./Ireland, and has previously worked in U.K. marketing roles for freesat, LG and Panasonic. The pair’s professional network is clearly tied tightly to the local market, hence, presumably, Kazam’s focus on Europe first.
“Kazam will focus on Europe at the outset,” Atkins tells TechCrunch via email, adding with some typical marketingspeak embellishment: “We are currently establishing a network of regional sales and marketing offices to ensure we deliver outstanding products and customer service.” The startup has a U.K. base in Mayfair, London.
Details of how exactly Kazam plans to assault the Samsung and Apple smartphone duopoly were not forthcoming when I asked. Atkins declined to answer the bulk of my questions — including such specifics as whether Kazam’s planned smartphones will run Android and be skinned with a custom UI or keep the experience familiarly stock. Instead, he trotted out a repeated PR mantra: “Today we are just announcing that the Kazam brand is here, for the rest you will have to wait and see.”
It’s notable that this startup has already engaged a PR company (Noire) — and talks about creating a mobile brand — even before having a great deal to talk about. Which does serve to underline how smartphones have become a game of who can shout the loudest. A game of brash tones (as I have previously described it).
What did Atkins say? Not a whole lot. He declined to reveal how much funding Kazam is backed by at this point, or whether it is currently looking to raise a round. He did at least confirm it has backers, and that those backers have links into Asian mobile manufacturing companies — which suggests it’s following Jolla’s manufacturing playbook.
“Kazam Mobile has been set up by a group of private equity investors, who have previously launched and operated successful mobile telecommunications companies and technology businesses. Some of their current investments include NF Technology Limited, an R&D company specialising in developing and customising mobile phone devices and tablets and Nichefinder (S’pore) PTE Limited, a proven technology procurement and supply company,” he told TechCrunch.
He also confirmed Kazam’s plan is to launch “a range of smartphones at different prices point/specs” later this year. Asked whether it will look at other types of mobile devices, such as tablets, he said only that its initial focus is on smartphones. He added that he and Coombes left their roles at HTC earlier this year “with the desire to build a new brand that really stands out in the mobile space”.
He also declined to be drawn on the differentiation question but in Kazam’s inaugural press release today Coombes said: “We believe your smartphone is a digital reflection of who you are, and since we are all different, it’s important that we don’t adopt a one size fits all approach. Kazam’s dynamic structure and focus on local markets means we can react quickly to the ever evolving and diverging needs of today’s consumer. We aim to provide quality smartphones that are accessible to everyone.”
The release also includes a statement from Atkins hinting that aftersales service might be how Kazam attempts to stand out in a crowded market: “There is a real opportunity for a new mobile brand to disrupt the status quo. We are passionate about delivering a truly positive mobile experience that doesn’t just stop once you’ve bought the phone. Kazam is about stunning design, robust hardware and intuitive technology, underpinned by outstanding customer service.”
Further details about exactly what kind of customer service opportunity Kazam reckons it has identified were not forthcoming.
The size of Kazam’s team at this point is just Atkins and Coombes — a few more if you count the hired help from their external PR company. But Atkins also said the startup has already “established an R&D centre”. Hopefully with some staff in it, but presumably no permanent headcount yet.
Should Kazam get off the ground with its grand status quo shaking plan it will need to significantly boost its body count — if only to staff the network of regional sales and marketing offices it is currently establishing. It will also need to make decent smartphone hardware — hardware that’s worth shouting about. Whether it will be able to deliver that is clearly something to file under “wait and see”.
Asked how a startup with inevitably bounded resources can succeed in such a fiercely competitive space — when veteran players such as HTC are having such a tough time standing out despite making cracking handsets like the HTC One — Atkins’ said only: “The mobile market whilst competitive, seems to have stagnated.”
Stagnation is one word for it. Saturation is another. Smartphone hardware and software has achieved a very high quality bar, with Android OEMs like Samsung pushing high-end features lower and lower down the price-point range to pull up the capabilities of mid- and even budget handsets. This has resulted in a surfeit of great phones, across a very broad spectrum of price-points. Which means precious little room for anyone new to elbow in. Or stand out.
So there are huge question marks over any startup entering such a fiercely competitive space, especially with so many better resourced former mobile giants continuing to struggle. Disruption often starts small but in a market so beholden to carriers, where the bulk of phones sales occur, it’s especially hard for an upstart to get traction. Carriers tend to be risk averse and have established distribution partnerships and (incentivised) relationships with the smartphone giants so have disincentives to push anything too new. Going it alone with online retail distribution is the alternative, but that route requires a sizeable marketing budget to even get noticed.
Creating handsets for an underserved niche may be one way to carve out a business, as Geeksphone has been. Securing carrier distribution agreements to carry your hardware is another strategy, as Jolla has with Finland’s DNA. For now, it’s unclear whether Kazam has any similar moves up its sleeve, but it will certainly be hoping it has enough local telco connections — and financial backing — to give it a regional chance of inching in. To say it has its work cut out to make any kind of impact is an understatement.
Waze’s big exit to Google proved one thing: if companies can harness the power of the crowd to deliver real-time, granular data, big tech corporations will be watching them closely as potential acquisition targets. There’s another category ripe for the picking, even if the problem being solved isn’t as apparent or immediately useful as traffic and navigation data: weather. A few apps are trying to harness the crowd to provide accurate, ground-level forecasts and conditions, and they’re catching on with consumers, too.
Montreal-based startup SkyMotion is one such firm, and it recently launched its 4.0 update, which not only harnesses crowdsourced weather reports, but also allows other businesses to plug into that data using a public API, to integrate real-time reporting data from SkyMotion’s users into their own products. That provides an up-to-the-minute forecast, one that probably won’t show you weather conditions completely dissimilar from the ones you’re actually feeling outside at any given moment, as can still be the case with apps that pull weather data only from specific weather monitoring stations.
SkyMotion has had considerable success harnessing the crowd to populate its real-time forecasts, with over 200,000 people currently submitting observations according to the company. Over 50 percent of those who download the app actually keep it and use it, and 65 percent of all users are active between 15 and 200 times per month. The company is now close to reaching 500,000 total downloads, and anticipates being well over 1 million by the end of the year should the pace remain near its current rate.
SkyMotion isn’t alone in crowdsourcing weather data. There’s also Weddar, the “people-powered” weather service and mobile app that encourages location-based reporting with a very human element, since it asks people how conditions generally feel on the ground, instead of seeking out specifics. The Weddar team, which is based in Portugal, launched its app back in April 2011, and where once you’d be hard-pressed to find anyone using it outside of its home market, now you’ll probably see results just about anywhere you open it up.
Crowsourced weather data could appeal to big tech companies for the same reason that crowdsourced data does; it greatly improves the quality of consumer-facing products. But it also offers a lot more besides, by providing services that can be combined with other local data including maps and traffic, as well as shopping and advertising information, to give a much more accurate, much more complete snapshot of any given location at any given time. Weather affects everything from the average user’s day planning, to marketing, to budgeting, and companies that are improving the quality of that data will no doubt be on the radar of anyone who makes those things its concern.
At the end of last year, Google introduced a new design for some local search results on tablets that put a carousel with the top results at the top of the page. Today, it’s bringing this design to the desktop, too. This new feature can be triggered by searches for restaurants, bars and other local places, Google says, and it’s currently rolling out in English in the U.S. and should roll out for other languages in the future.
A typical search to see this feature would be something like “Mexican restaurants in nyc.” Google will then put the carousel at the top of the page, including a photo, the standard Zagat ratings, price class and cuisine. A click on these places will bring up their Google+ Local sites with more information.
Users can click on an arrow in the right to see more places and they can use the map in the sidebar to zoom in and the carousel will automatically restrict your searches to this specific area.
Google, of course, also uses a similar design for some of its Knowledge Graph results. As a number of bloggers noticed recently, these Knowledge Graph carousel results seem to be popping up more frequently now than ever before. Given today’s addition of the local search carousel, chances are that Google’s stats show that this is a very effective way of presenting search results. I wouldn’t be surprised if the company continued to expand its use of this design element for other kinds of queries in the near future.
Stealing a page right out of a startup called Aggregift’s playbook, Amazon today launched a new feature called “Amazon Birthday Gift,” which allows a group of Facebook friends to go in on an Amazon.com Gift Card together. That gift isn’t posted to the recipients’ Facebook Timeline until their big day arrives.
To get started with the service, a user buys an Amazon.com gift card, then invites other mutual friends to donate using the Birthday Gift website here. When the birthday arrives, the recipient is tagged in a Facebook Timeline wall post, receiving the digital card and everyone’s birthday greetings.
The new addition is a further expansion of Amazon’s deepening integration with Facebook, as the company last December launched a “Friends and Family Gifting” feature just ahead of the holidays to generate Facebook-enabled gift suggestions, send out reminders, and enable gift list sharing via both email and social networks. Online competitor Walmart, too, had previously launched a similar Facebook-based gift recommendation service in 2011, which was added to the Walmart.com site ahead of the 2012 holiday season.
Social gifting is still very much in the experimental phase, despite the support from e-commerce giants like Walmart, Amazon and others. For instance, Facebook has also dabbled in this area with the fall 2012 debut of Facebook Gifts (built on top of former social gifting startup Karma). The service is meant to tie into one of Facebook’s most regular draws — its birthday reminders. The idea is that users could visit the site, and in addition to wishing their friend “happy birthday,” they could also add a gift to accompany that message. The social network offers gifts like iTunes digital Gift Cards and physical goods, and it even launched its own self-branded “Facebook Card” earlier this year.
However, even with Facebook’s broad reach, its Gifts service has been struggling to generate serious revenue, and certainly falling short of earlier projections and estimations regarding its potential. Meanwhile, some startups like Sincerely (with Sesame) and recently funded Wrapp, carry on in this space, while others head off in new directions. Giftly, for instance, exited to GiftCards.com this March, while Boomerang has turned its focus to the B2B market instead in recent months.
That being said, Amazon still has a shot at winning the social gifting space with its new Amazon Birthday Gift feature, since it can be argued that users don’t associate Facebook’s brand with spending or shopping the way they do with Amazon. (See also: various f-commerce struggles). Plus, Amazon’s cards are the go-to for the “generic” gift option, which people buy when they don’t know what to get, or when they need something last minute.
However, the new service is still limited today to smaller gift amounts ($1, $5, $10 and $25), which can be a challenge for those attempting to raise funds for a larger present like an electronics purchase. Plus, being tied only to birthdays eliminates the big holiday, graduation or wedding presents users may want to go in on together. Often these larger presents are led by a close family member or friend who puts in a big chunk of change, to which others pile on. Not supporting these other types of gifting narrows the already potentially narrow market for digital, social gifting even further.
Amazon Birthday Gift is live now here for interested users.
The world of alternative browsers is littered with also-rans like Rockmelt, but there are also companies that have managed to make a name for themselves in the shadow of Microsoft, Mozilla and Google. One example of this is Maxthon, but another browser that’s quietly gaining a following is Torch, which the company tells us just passed 10 million monthly active users on Mac and Windows after about year on the market.
Torch just launched the latest version of its Chromium-based browser, which now includes a download accelerator and a large update to the Torch Music service, which uses YouTube and Vevo as the basis of its music catalog. Torch Music now offers customized recommendations based on your listening history, location and your Facebook friends’ tastes. Currently, the service has about 5 million songs in its database.
While Torch previously included a version of this service, it has now integrated this service deeper into its user interface with the help of a widget that allows you to search, pause and skip songs.
Torch now also features a built-in download accelerator. While download accelerators were very popular in the early days of (slow) broadband, today’s fast and stable connections have mostly pushed them aside, and the vast majority of Internet users probably doesn’t even remember them. There are some advantages to using a download accelerator, however, especially if you are on a slow or unreliable connection.
The browser also features a built-in BitTorrent client and a media grabber for downloading embedded video files. It also features a smart drag-and-drop-activated search and sharing tool that pops up large boxes for sharing links to services like Facebook, Google+, Twitter and Pinterest and for initiating searches on Google Search, Wikipedia and other services.
Torch Browser only launched on the Mac about a month ago, so most of its users are currently on Windows, the company tells us. If you’re currently a Chrome user and interested in the browser’s features, switching is about as easy as it gets, as Torch just imports all your bookmarks. As it’s based on Chromium, all of the usual Chrome extensions and apps should also work, though Torch seems to be about a generation behind Google’s own release cycle.