2017-01-18T12:12:00-08:00If you live in Redwood City, California, or Washington, DC, your next take-out order might be delivered by a robot. Starship Technologies, a London- and Estonia-based robotics company, announced on January 18 the launch of a pilot program that will have its fleet of autonomous bots make food deliveries for DoorDash in the Silicon Valley city and Postmates in the nation's capital. The startup aims to revolutionize on-demand delivery by cracking the last-mile challenge, or making the time-consuming last leg of a delivery. Its self-driving bot, which looks like the love child of an icebox and R2-D2, will ferry goods from grocers and restaurants within a two to three mile radius of the customer. Starship Technologies claims its fleet will complete deliveries in as little as 15 to 30 minutes. The robots use cameras, GPS, software, and the company's proprietary maps to navigate the world around them, and according to the company, may someday help senior citizens and people with mobility issues get what they need. The robots have encountered more than a million pedestrians in testing to date, with few problems. Starship Technologies, which launched in 2014, was founded by two Skype cofounders, Ahti Heinla and Janus Friis. The robotics gurus cut their teeth working on a bot that could collect rock samples on Mars and the moon. They later used the technology they developed to power the delivery guy (or autonomous vehicle) of the future. The company recently announced a $17.2 million seed round led by Mercedes-Benz Vans, Shasta Ventures, and Matrix Partners, among other investors.SEE ALSO: Meet the robot that delivers fresh towels and coffee at hotels across Silicon Valley Join the conversation about this story » NOW WATCH: This machine solves the most time-consuming things about doing laundry [...]
2017-01-18T12:08:44-08:00Austin—Mike Smerklo, co-founder of Next Coast Ventures in Austin, says his venture firm brings a key ingredient to investing: entrepreneurial experience. “We just believe that relevant experience is more important than anecdotal evidence,” he says of himself and co-founder Tom Ball, who have led companies such as ServiceSource, Nucleus Groth, Openfield, and eCoupons, which was […] Austin—Mike Smerklo, co-founder of Next Coast Ventures in Austin, says his venture firm brings a key ingredient to investing: entrepreneurial experience. “We just believe that relevant experience is more important than anecdotal evidence,” he says of himself and co-founder Tom Ball, who have led companies such as ServiceSource, Nucleus Groth, Openfield, and eCoupons, which was later acquired by Lifeminders (NASDAQ: LFMN). Ball was also part of Austin Ventures for a decade before the firm shuttered in 2015. Smerklo says the firm will largely focus on Austin startups, making Series A and B investments in tech companies innovating in... Read more » Reprints | Share: UNDERWRITERS AND PARTNERS [...]
2017-01-18T12:06:26-08:00NASA, already in a serious financial pickle with the Russians, may soon look to Boeing for help. When the space agency retired its last space shuttle in July 2011, it expected commercial carriers like SpaceX and Boeing to launch its astronauts into space by 2015. But both SpaceX and Boeing hit snags with the development of their rockets and spaceships, slipping that schedule by at least 3 years, according to a September 2016 audit by NASA's Office of Inspector General (OIG). This left NASA with one option for getting astronauts to and from the International Space Station (ISS) through 2018: a Russian spacecraft called the Soyuz. Russia has taken full advantage of its temporary monopoly by charging NASA ever-more-exorbitant sums for those Soyuz seats — yet the problem for NASA might soon get worse. As Eric Berger reported at Ars Technica, NASA issued a new solicitation on January 17 to buy two more Soyuz seats from Boeing, plus "an option to acquire crew transportation from Boeing for three crewmembers on the Soyuz in 2019." In other words: NASA may end up buying five tickets aboard the Soyuz from Boeing. If that sounds a little convoluted, particularly since Boeing's spacecraft development delays helped drive NASA to this conundrum in the first place, welcome to the current state of human spaceflight. As Berger notes at Ars Technica, RSC Energia — the Russian entity that makes and launches Soyuz rockets and spacecraft — recently settled a $320 million lawsuit with Boeing. Part of Boeing's settlement package includes five Soyuz seats and, according to NASA's recent solicitation, one is scheduled for 2017, another for 2018, and three for 2019. NASA wants those tickets to ensure it's making good on its roughly $75 billion investment in the ISS, set to disband in 2024, by filling it up with as many crewmembers as possible. What might NASA pay Boeing for each of its Soyuz tickets? A NASA representative declined to provide Business Insider with an estimate, but noted "prices will be finalized during contract negotiations" and that the space agency "will ensure it receives a fair and reasonable price for the transportation services from Boeing before a contract is awarded." Representatives from Boeing acknowledged an emailed query from Business Insider, but did not immediately provide an answer. If precedent is any guide, however, Boeing's Soyuz seats could cost NASA dearly. Roscosmos, Russia's space agency, used to charge NASA as little as $21.8 million per seat in 2008 (when the space shuttle was still around). By 2018, however, it intends to charge NASA $81 million per seat by 2018 — an increase of 372% over 10 years: That's according to NASA OIG's September 2016 audit data. The chart below, also based on the report, factors in the price of a seat and the number of astronauts that NASA plans to launch (about six per year) to show how much NASA has paid Russia and could end up paying for Soyuz seats. The total cost over 12 years is more than $3.36 billion — and that's not including the possible purchase of Boeing's three Soyuz seats for 2019. Assuming NASA's budget remains roughly $18.5 billion a year, that means about 3% of the agency's funding could be diverted to Russia in 2018: A presentation given by a NASA official in May 2016 estimates the cost of each seat aboard SpaceX's Dragon spacecraft and Boeing's CST-100 Starliner spacecraft will be $58 million. The Sept. 2016 audit made clear that any other hiccups in the NASA's commercial crew program, which could earn Boeing and SpaceX up to $4.2 billion and $2.6 billion (respectively) for their services, will be costly. "Given the delays in initiating a U.S. capacity to transport crew to the ISS, NASA has extended its contract with the Russian Space Agency for astronaut transportation through 2018 at an additional cost of $490 million," the report stated. "If the Commercial Crew Program experiences additional delays, NASA may need to buy additional seats from Russia to ensure a con[...]
It’s been a trend for some time, but now it’s official: Americans consume more music through on-demand streaming than digital album and track sales from services like iTunes.
That’s according to a recent report from research firm Nielsen, which said that 2016 was the first year to officially mark the shift to streaming. What’s more, Nielsen says sales of digital albums declined even faster than those of physical albums, as a result of the massive shift to streaming through YouTube, Spotify, and the like.
This chart from Statista shows just how stark the shift was. Year-over-year, Nielsen says audio streams were up 76.4%, while digital album and track sales were both down more than 20%.
2017-01-18T11:37:06-08:00Salesforce CEO Marc Benioff is a master salesman who can turn any conversation into a selling opportunity. So when Yahoo Finance's Andy Serwer asked if Benioff would be open to working with President-elect Donald Trump, who he famously opposed during the election, the billionaire CEO didn't hesitate to bring up an idea for a potential deal. Benioff said: “One thing that I certainly hope he does is to take a good, hard look at how all of our agencies operate. I know that they are still using a lot of on-premise software in the government. I hope that they’ll be looking to go to the cloud and to some of these next-generation solutions that companies like Salesforce and others offer that help them to lower costs and make things easier for all of the citizens of the United States.” Benioff has a point. Even though the shift to web-based cloud services has been going on for over a decade, a lot of large companies or government agencies are still sticking to on-premise software, or those that need to be installed in your own servers. On-premise software tends to be more expensive and harder to use, although some believe it's more secure than cloud software. Salesforce has been making a stronger push towards selling to government agencies lately, as it expands into a broader customer base. Some of the big government agencies under contract include the Justice Department and Defense Department, as well as smaller city offices. Benioff also stressed that his management style and frequent activist efforts will not change under the new Trump administration, despite his history of clashing with Vice President-elect Mike Pence. "I’m not changing how I operate my business," Benioff said. "We have an obligation as CEOs to be able to stand up for what we believe in and advocate on behalf of our companies and our stakeholders, regardless of the political situation and regardless of the economic situation."SEE ALSO: Trump confidant and tech billionaire Peter Thiel thinks Silicon Valley has a sex problem Join the conversation about this story » NOW WATCH: 6 'healthy' eating habits you are better off giving up [...]
No.2 pencils are widely used, but you may not know what the number actually refers to. This video explains how pencils developed into their modern form and the significance of the labeled numbers.
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2017-01-18T11:28:32-08:00The US Department of Labor is suing Oracle, alleging that the database giant "has a systemic practice of paying Caucasian male workers more than their counterparts in the same job title," resulting in women and people of color getting paid less for the same work. Additionally, the lawsuit claims that Oracle has a bias toward hiring Asian-Americans in technical roles, passing over other groups. As a federal contractor, Oracle is required by law to comply with anti-discrimination regulations, including providing an affirmative action program. But according to the Department of Labor, Oracle blocked attempts by the Office of Federal Contract Compliance Programs to do a routine inspection of employee data, to make sure they were compliant. "For example, Oracle refused to provide prior-year compensation data for all employees, complete hiring data for certain business lines, and employee complaints of discrimination," the Department of Labor wrote in a press release. "OFCCP attempted for almost a year to resolve Oracle’s alleged discrimination violations before filing the suit." If Oracle doesn't settle things out with the Department of Labor, it could be looking at the cancellation of its lucrative federal contracts, as well as being blocked from applying for new ones, the press release states. In a statement to Business Insider, an Oracle spokesperson calls the lawsuit "politically motivated" and "wholly without merit:" “The complaint is politically motivated, based on false allegations, and wholly without merit. Oracle values diversity and inclusion, and is a responsible equal opportunity and affirmative action employer. Our hiring and pay decisions are non-discriminatory and made based on legitimate business factors including experience and merit." It's not entirely clear what political factors Oracle is referring to, but it's worth noting that company co-CEO Safra Catz is a key figure on President-elect Donald Trump's transition team, and this suit was filed in the final days of the Obama administration. SEE ALSO: Oracle CEO Safra Catz is joining Trump's transition team, but she'll remain at Oracle Join the conversation about this story » NOW WATCH: 'I don't like tweeting': Trump addresses his Twitter use amid tweetstorm aimed at NBC [...]
2017-01-18T11:28:00-08:00The results of the 2016 election tell us being a Republican and a marijuana legalization advocate are no longer mutually exclusive, if the labels ever were to begin with. Eight US states voted on marijuana legalization ballots in the 2016 Election. Five of them — Arizona, Arkansas, Florida, Montana, and North Dakota — turned red for Trump. Of those five, four states also legalized cannabis in some form, the Marijuana Business Daily reports. "In each case, with the exception of Arkansas, the cannabis initiatives received almost as many or more votes than Trump garnered," the Marijuana Business Daily's Eli McVey writes. We don't know how many people who cast ballots for Trump also voted in favor of legalization. But the data from the Marijuana Business Daily would suggest red states with marijuana legalization initiatives on the ballot showed support for both the president-elect and legal weed. Florida delivered a big win for Trump in the election, giving him 49% of the vote. By comparison, a bill legalizing medical marijuana in the Sunshine State received 71% of the vote. "In Montana, approximately 4% more votes were cast in support of marijuana legalization than for Trump, while the count was essentially even in North Dakota," McVey writes. Arizona became the only state of the eight that voted on marijuana legalization to fail the ballot measure at the polls. Still, the number of votes in support of fully legalized weed was within 2% of the number of votes cast for Trump, the Marijuana Business Daily reports. This may come as a surprise. Most Republicans oppose legalization, while Democrats show overwhelming support for it, according to the latest poll data from the Pew Research Center. However, support for marijuana legalization reached an all-time high in 2016. Sixty percent of Americans surveyed by the Gallup Poll last year said they favor outright legalization, up from 35% in 2005. A similar poll conducted by the Pew Research Center came to similar results: 57% of participating US adults expressed support for marijuana legalization. Meanwhile, Trump will begin his presidency on January 20 with the lowest approval rating of any incoming president in nearly 25 years. As Trump closes in on the White House, marijuana legalization advocates are watching closely to see how the drug will fare under the president-elect. In short, we don't really know. The billionaire real estate mogul has flip-flopped on the issue throughout his public life. Trump has said he supports states' rights to choose how to legislate medical marijuana, though his administration has yet to call for legalization or discuss a specific policy on the Schedule I drug. His pick to head the Justice Department, Alabama Senator Jeff Sessions, is a staunch opponent of legalization. Though he did admit that arresting and imprisoning cannabis offenders is a "problem of resources" for the federal government, during January confirmation hearings. The data from the Marijuana Business Daily suggests Trump ought to think twice before his administration makes any attempts to stamp out the $6.7 billion legal marijuana industry.SEE ALSO: It's 2017 — here's where you can legally smoke weed now Join the conversation about this story » NOW WATCH: This animated map shows where marijuana is legal in the US [...]
2017-01-18T11:02:00-08:00Mobile-app makers and content creators are vying for consumer attention in a crowded and noisy market. Even if an app can stand out enough to prompt a consumer to download it from among a list of millions, it then faces the challenge of enticing him or her to use it enough times to recuperate development, maintenance, and marketing costs. To make matters worse, those marketing costs have hit record-high levels over the past year as discoverability has become more challenging. And while consumers are spending more time in apps, most of that time is spent in a few favorites. Consumers spend almost three-quarters of their total smartphone app time in just their three favorite apps, according to comScore. But it's not all doom and gloom: There are numerous tools at a publisher's disposal to engage and re-engage consumers, and there are new products and solutions coming to market that can help alleviate some of the issues around this app engagement crisis. In a new report from BI Intelligence, we explore the current state of the app market, the issues around engaging consumers, and the tools at a publisher's disposal. We then identify best practices for the implementation of some app engagement tools, and present the pitfalls that some publishers fall into in this pursuit. Here are some key takeaways from the report: The app market today is challenging and volatile. It's difficult to stand out, and most apps have to be offered for free in order to entice consumers who have too much supply to choose from. This puts greater emphasis on engaging consumers after they've downloaded an app in order to recoup costs. Consumers are more difficult to engage today, as most have dozens of apps installed on their devices yet spend most of their time in just a select handful of favorites. There are numerous solutions at hand for mobile app publishers and content creators seeking to engage consumers. Push notifications, in-app messaging, and app message centers with badges are three tools publishers can use to engage consumers. While many publishers mistakenly rely solely on push notifications for app engagements, this is a poor practice because many consumers don't allow push notifications and those that do can easily be overwhelmed when they receive too many. The best solution often includes leveraging two or three of these tools to engage consumers with the right message at the right time. The technology in this market has grown increasingly sophisticated, and publishers that don't diversify their approach run the risk of annoying their consumers to the point of abandonment. There are emerging engagement technologies that will change the current app engagement norms and present new ways for app publishers to communicate with users. The mobile ecosystem is changing quickly as technology improves and consumers become more comfortable conducting more activities on mobile devices. In full, the report: Identifies the major challenges in today's app market and explains why employing good app engagement practices is more important than ever before. Presents the major app engagement tools currently available. Examines the pros and cons of each app engagement tool while outlining some pitfalls that publishers encounter in implementing them. Prescribes best practices for adopting various app engagement tools or strategies. Assesses how the market will likely change over the next five years as emerging technologies change both consumer behavior with mobile devices and introduce new tools with which to engage consumers. Interested in getting the full report? Here are two ways to access it: Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly[...]
President-elect Donald Trump said in an interview this week that he didn't particularly enjoy tweeting but did so to combat bad press.
After the interview aired, Trump took on NBC News and the "Today" show in a tweetstorm about their coverage of him.
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Couriers working for delivery app Jinn have gone on strike over pay outside the company's office in East London.
Jinn, which operates an app that allows people to get things delivered from restaurants like McDonald's and shops, told riders on Wednesday morning that it had changed its payment model.
The company is moving from paying drivers £8 an hour plus £1.50 per delivery to paying them £7 per delivery and no hourly fee, according to two Jinn couriers.
Leon Herrera, Jinn's cofounder, was heckled and told he was a "thief" when he confronted the protestors on the street. "You're treating us like slaves," shouted one of the protesters at Herrera.
A security guard that manages the building Jinn is in told Business Insider around 7pm that the police had been called as drivers surrounded Herrera and tried to stop him returning to his office.
Several drivers at the protest, which took place outside Jinn's office in Aldgate, expressed concern over the new payment model. "What happens if we don't get any orders?" said one courier, who wished to remain anonymous. Another said: "We can wait in the cold for 12 hours straight and not get paid. That’s a problem."
Approximately 40 drivers were at the protest at 6pm (GMT) on Wednesday but some drivers expected that figure to rise to around 100. The protest has been arranged simply by word of mouth as opposed to social media platforms like Facebook and Twitter, one driver said.
2008-11-05T18:58:47-08:00The Web 2.0 Summit started today. If there was one word to describe the overall atmosphere and mood is that it was 'muted.' Despite the new president, the mood lacked the spark and feeling of being part of something big. It was definitely there two years ago. That was then, this is now. We'll see how the rest of it goes. I heard one good stat. Even though the iPhone is only 5% of the smartphone market, it represents 74% of the mobile web traffic. That's an eye-popping number. Once again proof that if you design something well, like the UI of the web surfing experience, people will use it. Welcome to the design era of technology. AT&T must be very happy with its deal and the data revenues its getting as a result. Also, Mary Meeker gave her state of the internet presentation. Lots of good data in there. Whou would think that Skype is about to become the world's largest carrier? You can get it here.The Web 2.0 Summit started today. If there was one word to describe the overall atmosphere and mood is that it was 'muted.' Despite the new president, the mood lacked the spark and feeling of being part of something big. It was definitely there two years ago. That was then, this is now. We'll see how the rest of it goes. I heard one good stat. Even though the iPhone is only 5% of the smartphone market, it represents 74% of the mobile web traffic. That's an eye-popping number. Once again proof that if you design something well, like the UI of the web surfing experience, people will use it. Welcome to the design era of technology. AT&T must be very happy with its deal and the data revenues its getting as a result. Also, Mary Meeker gave her state of the internet presentation. Lots of good data in there. Whou would think that Skype is about to become the world's largest carrier? You can get it here. [...]
2008-11-04T19:08:24-08:00It's not often that the venerable New York Times publishes a glowing piece on one of my portfolio companies. This is a welcome bit of good cheer amidst the backdrop of a generally gloomy economy. When I invested in the young company founded by Jeremy S. and Russ S. back in 2005, Yelp had attracted about 100,000 San Franciscans to its site. Today, with more than 15,000,000 monthly visitors, it (image)
2008-11-02T12:01:58-08:00I admit that I'm a frequent reader of Valleywag, a low-brow blog full of silicon valley gossip. It's often pretty funny, and I know many of the people referenced in the stories, which only adds to the entertainment value.Last week, however, the blog ran an entry containing a fabricated story. The entry was meant to embarrass Jimmy Wales, an entrepreneur we backed two years ago. If there is (image)
2008-10-31T21:11:10-07:00One of our close friends have a pumpkin carving day tradition. This one was one of the best pumpkins carved that day. Thanks Pete & Ayse. Happy Halloween!
One of our close friends have a pumpkin carving day tradition.
This one was one of the best pumpkins carved that day. Thanks Pete & Ayse.
2008-10-30T09:34:59-07:00I had a great time putting this presentation together past week to give at the O'Reilly Web2Expo in Berlin.Thoughts on European Start UpsView SlideShare presentation or Upload your own. (tags: startups vc)Thanks to everyone for the embedding, the video and the really great feedback - much appreciated.For some really practical advice, check out Robin's great post on cash management. [...]
2008-10-29T20:23:26-07:00I've been traveling to Canada a lot for work lately. Air Canada has shown me many movies on demand, United has not given any choice, and both have shamelessly asked for $3 for headphones I haven't paid. None of the movies I saw moved me except for one. Ironically, it was the one I thought would be the worst and avoided consistently until the last leg of the final flight that I am writing this now. I watched "Hancock", barely finished it. I watched "The Incredible Hulk", didn't finish it. I watched "Sex and The City" and couldn't finish it. The plane was landing. I watched Indiana Jones again, and again didn't like it as much as the previous one, "The Last Crusade". The last movie I saw was "Swing Vote". It was a painful movie to watch in the beginning. It was also bad in the middle...but the ending. When Bud asked that question I couldn't help but cry. We need a president who wakes up every morning and asks himself the same question and spends his whole life building a legacy around answering it. I am not going to tell you what question that is. You need to watch the movie if you haven't yet. But this blogger believes that the candidate who can devote his life to answer it is Barack Obama. P.S. This is not a political blog, but around this time, once every four years, there may be a politically inclined post :-)I've been traveling to Canada a lot for work lately. Air Canada has shown me many movies on demand, United has not given any choice, and both have shamelessly asked for $3 for headphones I haven't paid. None of the movies I saw moved me except for one. Ironically, it was the one I thought would be the worst and avoided consistently until the last leg of the final flight that I am writing this now.I watched "Hancock", barely finished it. I watched "The Incredible Hulk", didn't finish it. I watched "Sex and The City" and couldn't finish it. The plane was landing. I watched Indiana Jones again, and again didn't like it as much as the previous one, "The Last Crusade".The last movie I saw was "Swing Vote". It was a painful movie to watch in the beginning. It was also bad in the middle...but the ending. When Bud asked that question I couldn't help but cry. We need a president who wakes up every morning and asks himself the same question and spends his whole life building a legacy around answering it. I am not going to tell you what question that is. You need to watch the movie if you haven't yet. But this blogger believes that the candidate who can devote his life to answer it is Barack Obama.P.S. This is not a political blog, but around this time, once every four years, there may be a politically inclined post :-) [...]
2008-10-29T09:51:04-07:00For a new mobile technology, let alone an operating system, to go from announcement to shipping product is, however you look at it, a spectacular success. That's exactly what happened to Android with the G1 phone available from T-Mobile. It normally takes years for any technology to get in a carrier's network. Android did it in one year. In addition, Walt Mossberg called it "a worthy competitor to the iPhone". Given the iPhone is one of the most impactful technology innovations of the last 3 years, that's is a big statement. Now we are also hearing that Motorola is reorganizing around Android. Yet another sign of success in such a short period of time. Last year I predicted that Android would be a success, I consider that prediction to have come true. Here is what I wrote then, still quite valid: "1) The Success of Google's Android and the Open Handset Alliance: This means that handsets will become more like PC's and wireless carriers will become more like landline DSL providers. This is a bold statement because both handset makers (like Nokia) and carriers (like Vodafone) don't want this to happen. So why do I predict a change in an industry where dinosaurs were surviving for such a long time? Because a meteor the size of Texas hit the wireless industry in 2007 and it was called the iPhone. For the first time in the wireless industry, the handset chose the carrier as opposed to the carrier choosing the handset. The product was so impactful and well designed that some carriers agreed to share 30-40% of their data revenues with Apple in order to have the device on their network. That could be a very meaningful $200 dollars to Apple. Why did carriers agree to that? Because the carriers did the math and the revenue share probably made up the customer acquisition cost that they no longer had to pay which, in the US, is about $200. In return for that bargain they gave up ALL revenue from applications, ringtones etc. The consumers wanted it, they gave it, and doing so opened up the market an catalyzed the next innovation which came from Google. Android and the Open Handset Alliance, enables other people to quickly create new iPhones. It creates an environment that let's developers focus on what they do best, which is writing innovative applications. So that somebody can come up with a device so compelling that it too will chose their carrier (if carriers need a nudge Google can share search revenues, if they need a punch they'll fund an open carrier). Once that happens, the carriers become a dumb pipe, but a dumb pipe with similar economics and no worries for churn. The second reason carriers may embrace Android, is so they don't have to be hostage to Nokia which is exerting a bigger and bigger pressure on carriers. They are even building an ad network and making carriers pay them a piece of their ad revenues....For a new mobile technology, let alone an operating system, to go from announcement to shipping product is, however you look at it, a spectacular success. That's exactly what happened to Android with the G1 phone available from T-Mobile. It normally takes years for any technology to get in a carrier's network. Android did it in one year.In addition, Walt Mossberg called it "a worthy competitor to the iPhone". Given the iPhone is one of the most impactful technology innovations of the last 3 years, that's is a big statement.Now we are also hearing that Motorola is reorganizing around Android. Yet another sign of success in such a short period of time.Last year I predicted that Android would be a success, I consider that prediction to have come true. He[...]
2008-10-23T11:11:37-07:00Congratulations Munjal and the rest of the like.com team on the fundraising! It is just one more testament to the fantastic product you are building. As an angel investor, it is a great pleasure to see the team grow, mature and become that great business that it deserves to be. What a wonderful ride to be a part of.
Congratulations Munjal and the rest of the like.com team on the fundraising! It is just one more testament to the fantastic product you are building. As an angel investor, it is a great pleasure to see the team grow, mature and become that great business that it deserves to be. What a wonderful ride to be a part of.
2008-10-22T11:16:58-07:00TechCrunch reports on portfolio company Like.com's recent funding. Munjal's timing was exquisite and the company is now very well-positioned to not just survive, but thrive, in a tough climate.
TechCrunch reports on portfolio company Like.com's recent funding.
Munjal's timing was exquisite and the company is now very well-positioned to not just survive, but thrive, in a tough climate.
2008-10-15T14:44:00-07:00Kudos to Apple for putting out an environmental report on their new Macbooks (via earth2tech).
2008-10-15T13:00:15-07:00Last Saturday my friend Bobby treated me and some friends to a sneak preview 7-course meal at his sleek new Japanese restaurant, Hamon Washoku (note, web site still under construction at press time) which opens today. Replacing the French crepes-n-coffee...
2008-10-12T22:35:38-07:00In the midst of the current economic meltdown comes a welcome recession buster from Doug Klein, CEO of LightPole and earnest foodie. He recently visited Fisher Farm and wrote in to describe his exploits: I stopped by Fisher on the...
2008-10-09T14:08:29-07:00"Apparently the Nigerian government has warned its citizens that if they get any e-mails from Irish/UK/US banks, promising government-backed deposit security and seeking bank account details, its a scam..."
"Apparently the Nigerian government has warned its citizens that if they get any
e-mails from Irish/UK/US banks, promising government-backed deposit security
and seeking bank account details, its a scam..."
2008-10-01T19:01:08-07:00I got nervous today when I heard one of my consumer internet portfolio companies had posted a political advertisement on YouTube. It seemed obvious to me that any consumer company is likely to alienate half of its customer base by making a political statement. No matter how well-executed the ad, it is guaranteed to hurt business as much as it helps.It appears that I may have jumped too quickly to(image)
2008-09-29T14:42:10-07:00Doesn't this new version of the dollar bill do a perfect job capturing the essence of the Treasury Department's current state of mind?(image)
2008-09-29T14:32:35-07:00My friend Eric Ries, co-founder/CTO of IMVU, has a great blog that's a must-read for entrepreneurs: here's the feedburner link: http://feeds.feedburner.com/startup/lessons/learned Subscribe now! This will save you time, money, headaches and ulcers ...
My friend Eric Ries, co-founder/CTO of IMVU, has a great blog that's a must-read for entrepreneurs: here's the feedburner link: http://feeds.feedburner.com/startup/lessons/learned
Subscribe now! This will save you time, money, headaches and ulcers ...
2008-09-26T16:06:27-07:00http://faculty.chicagogsb.edu/luigi.zingales/Why_Paulson_is_wrong.pdf Here is the first paragraph as a teaser Why Paulson is Wrong Luigi Zingales Robert C. Mc Cormack Professor of Entrepreneurship and Finance University of Chicago -GSB When a profitable company is hit by a very large liability, as was the case in 1985 when Texaco lost a $12 billion court case against Pennzoil, the solution is not to have the government buy its assets at inflated prices: the solution is Chapter 11. In Chapter 11, companies with a solid underlying business generally swap debt for equity: the old equity holders are wiped out and the old debt claims are transformed into equity claims in the new entity which continues operating with a new capital structure. Alternatively, the debtholders can agree to cut down the face value of debt, in exchange for some warrants. Even before Chapter 11, these procedures were the solutions adopted to deal with the large railroad bankruptcies at the turn of the twentieth century. So why is this wellestablished approach not used to solve the financial sectors current problems? The rest is herehttp://faculty.chicagogsb.edu/luigi.zingales/Why_Paulson_is_wrong.pdfHere is the first paragraph as a teaser Why Paulson is Wrong Luigi Zingales Robert C. Mc Cormack Professor of Entrepreneurship and Finance University of Chicago -GSB When a profitable company is hit by a very large liability, as was the case in 1985 when Texaco lost a $12 billion court case against Pennzoil, the solution is not to have the government buy its assets at inflated prices: the solution is Chapter 11. In Chapter 11, companies with a solid underlying business generally swap debt for equity: the old equity holders are wiped out and the old debt claims are transformed into equity claims in the new entity which continues operating with a new capital structure. Alternatively, the debtholders can agree to cut down the face value of debt, in exchange for some warrants. Even before Chapter 11, these procedures were the solutions adopted to deal with the large railroad bankruptcies at the turn of the twentieth century. So why is this wellestablished approach not used to solve the financial sectors current problems?The rest is here [...]
2008-09-22T16:51:34-07:00Congratulations to Nils, Gareth and Andrew and the rest of the Kindo team. They have just announced that they are tying up with MyHeritage. See coverage on Washington Post via Techcrunch, VentureBeat and PaidContent.Over the last year the team has built a simple product which is a pleasure to use in over 14 languages -- all the while building a really nice tone of voice, perfect for the family market. Combining this savvy with MyHeritage's scale and smart technology for photos and family history promises something to look forward to for consumers.Related articles by ZemantaMyHeritage raises $15 million from Index and AccelKindo Finds a New HomeFamily Tree Wars Continue: MyHeritage Raises Big Round, Shows Impressive GrowthFamily Tree Site MyHeritage Gets $15 Million Second RoundNils is getting famous in SwedenKindo's day in the sun [...]
2008-09-18T17:40:16-07:00I got a first-hand sense of how badly Goldman Sachs felt the pressure of the crumbling financial markets this morning. At the start of a private company's board meeting I was attending, a director received a call on his cell phone. One member of the board had not yet arrived, so the director answered the call in case it was the missing attendee. He dispatched with the caller after about a (image)
2008-09-09T23:02:19-07:00Here is the video that says it all
Here is the video that says it all
2008-08-29T17:04:40-07:00This weekend Slow Food hits Baghdad by the Bay. With a slogan of "Good, clean, and fair," the international movement started in 1989 launches perhaps its finest moment to date with a shindig billed as the largest celebration of American...
2008-07-30T09:02:30-07:00Cuil, a much-hyped search engine, launched yesterday. The blogosphere, after eager anticipation, has not been kind to Cuil. Web 2.0 is all about throwing things out there and seeing what works, but if you're going to drum up hype, you...
Cuil, a much-hyped search engine, launched yesterday. The blogosphere, after eager anticipation, has not been kind to Cuil. Web 2.0 is all about throwing things out there and seeing what works, but if you're going to drum up hype, you have to feed the hype monster tasty morsels. The reaction from bloggers and commenters seems all the more vitriolic for having been promised foie gras and fobbed off with crackers instead.
At the risk of seeming to jump on the bandwagon of Cuil-bashers, I must confess that Cuil didn't do a great job finding me on the web either: the search results for "Vineet Buch" seemed of tertiary interest and didn't discover my professional page (that I am a Partner at BlueRun Ventures), or my LinkedIn or Facebook profiles.
2008-07-29T14:12:53-07:00Mashable's Stan Schroeder expounds an interesting theory: that Google's current (and expanding) dominance in web search, at least in the English-speaking world, has trained websites to do all they can to show up high on Google - to such an...
Mashable's Stan Schroeder expounds an interesting theory: that Google's current (and expanding) dominance in web search, at least in the English-speaking world, has trained websites to do all they can to show up high on Google - to such an extent that no upstart search engine can hope to do better than Google for broad horizontal search.
Stan's review of recently launched, well-funded search startup Cuil, as also the TechCrunch review, are lukewarm at best and support Stan's thesis - but this thesis assumes that Google has the best possible knowledge of a user's intentions, and since websites will compete to match Google's algorithm that expresses that intention in a query, Google is by default the winner in any search competition.
The flaw in this argument is that Google has very little information about a user's intention - indeed, Google doesn't even seem to use all the information it could have about the user, because of privacy and latency considerations (for instance, I doubt if Google looks up my interests in my Facebook profile when I search as a logged-in Google user, to discover that by typing the search term "kayak" I probably mean a watercraft and not a travel search engine). Google is constantly refining its approaches to divining intention, of course ... and the masses of data generated by user searches help it get better every day.
But web search is far from perfect today, and it stands to reason that Google's own momentum - and success - will lock it into the innovator's dilemma of doing little more than tweaking its existing algorithms. And some enterprising startup will bring a refreshing new take to searching the web. Wonder what it could be?
2008-07-29T13:22:05-07:00Back in April, I'd written about the really slow movement of brand ad dollars online. Advertising Age just ran an article diving into some of the points I'd raised, and they're worth exploring again. There are a few choice quotes...
Back in April, I'd written about the really slow movement of brand ad dollars online. Advertising Age just ran an article diving into some of the points I'd raised, and they're worth exploring again. There are a few choice quotes from Ad Age that I felt compelled to mention here:
The inconvenient truth is that for all its new-media spin, display advertising is "old" media -- a commercial message to be placed next to editorial or entertainment content.
part of why large companies such as P&G spend so little on the web is because of the feedback they get from the marketing-mix models they still use to determine media outlays: TV and other old media still work. (P&G increased its magazine budget by 7% last year.)
For all its glory, the internet still has not proven itself capable of being a primary branding medium. Most ads online are response-based and work best for brand marketers when they complement a branding campaign in other media.
"The biggest gating factor to internet ad growth is the obsession of the players, the [venture capitalists] and the press with 'bottom of the funnel' marketing in a world where the big money is spent at the top," said Rob Norman, CEO of Group M Interaction. [OUCH!]
2008-07-27T09:29:00-07:00I’ve been toying with the idea of a Value Added Tax on embodied carbon, and I’ve been meaning to put some thoughts in writing. So I came up with what I thought was the brilliantly original acronym: CAT for a “Carbon Added Tax”.
"A carbon added tax (CAT), levied at each stage of production, would have some of the same advantages that a value added consumption tax has. Each producer would have to show receipts for the carbon tax paid on inputs into its production. The taxes levied at each stage of production would be passed on to consumers. It is as if the tax were imposed on consumers… A carbon value added tax will both discourage production in more carbon intensive ways and discourage the consumption of carbon intensive goods."His proposal pretty much sums up my thought process…
2008-07-17T03:07:00-07:00Our data is born free, but everywhere it is in chains.
2008-07-16T23:20:41-07:00Tara Parker-Pope of the New York Times did a piece recently boldly titled The 11 Best Foods You Aren't Eating -- a bit presumptuous in that anybody who is at least somewhat health conscious is heeding the frequently heard advice...
2008-07-11T13:01:00-07:00I read the Economist religiously - or rather I partly skim and partly read the Economist religiously every week. So it was nice that they published a letter I wrote them. (Of course, it relates to Embodied Emissions.)What was surprising is how much they edited the letter. At first, I was taken aback: after all, they had lost the nuance of some of my points. On reflection though, it is quite amazing and flattering that they would take the time and effort to completely re-write such letters to drive home the point they think is worth publishing.In any case, here is the original letter I sent:Dear Sir,Your article entitled “Emissions Suspicions” (June 19 2008) ignores the principle of “consumer-responsibility” - that consumers can be responsible for the carbon embodied in the goods they consume. If our society decides to proactively reduce its total carbon emissions, it makes little sense to just focus on the carbon being emitted (or “produced”) directly in our society. For example, a study by Oxford’s Dieter Helm showed that while “UK greenhouse gas [emitted directly in the UK has] fallen by 15% since 1990…on a consumption basis, the illustrative outcome is a rise in emissions of 19% over the same period… Trade may have displaced the UK’s greenhouse gas appetite elsewhere.” Whether this displacement was caused by carbon regulations or other factors is less relevant - What matters is the total amount of carbon that was emitted to produce the goods and services consumed in the UK.As such, a “carbon tariff” on embodied carbon should not be compared to traditional “import taxes”. The correct analogy is a “Sales tax”. Today, governments tax goods and services both at the point of production (via corporate taxes) and consumption (via VATs or other sales tax). But emissions regulations to-date have been aimed solely at the “production” of green house gases. It is the principle of reducing carbon “consumption” that matters more than the economic implications of leakage (which is the focus of your article.)But is this principle practicable? Your article also claims that assessing embodied emissions is an “impossibly complicated task.” But much work has been done in this area, specifically by UK based “Carbon Trust” (with the BSI and DEFRA) to create standards and make the process simpler, fair and practical. It would have been more appropriate to reference (if not, assess) these efforts in your article, rather than to dismiss them out of hand, as impossible.Regards,Salman Farmanfarmaianhttp://salmanff.blogspot.com/Geneva, SwitzerlandAnd here is how it was reprinted:Green consumer-taxesSIR – If a society decides to proactively reduce its total carbon emissions it makes little sense just to focus on the carbon it directly produces (Economics focus, June 21st). For example, a study by Dieter Helm of Oxford University shows that although greenhouse gases emitted directly in Britain had fallen by 15% since 1990 measured by the conventio[...]
2008-07-07T17:28:08-07:00I had the privilege of attending an informal presentation by Marten Mickos, CEO of MySQL, last week at SAP Labs. Marten was his usual candid self, and spoke frankly about the challenges of making money in Open Source, why MySQL...
I had the privilege of attending an informal presentation by Marten Mickos, CEO of MySQL, last week at SAP Labs. Marten was his usual candid self, and spoke frankly about the challenges of making money in Open Source, why MySQL sold to Sun and the ups and downs after the acquisition closed. Key takeaways:
2008-07-01T11:16:23-07:00Okay, last time we did wine, so now it's time to give beer some air time. I am fortunate to work with a bona fide beermeister, and by that I do not mean somebody with Animal House style binge tendencies,...
2008-07-01T03:34:34-07:00Moins de deux ans après sa première levée de fonds, l’éditeur de messagerie instantanée mobile clôture un deuxième tour de table. Objectif : lancer un nouveau produit et se développer outre-Atlantique. Après une première levée de fonds de 3 millions d’euros réalisée en septembre 2006 auprès des fonds de capital-risque Techfund et Sophia Eurolab, Miyowa […](image)
2008-06-24T01:47:00-07:00Here is another high level analysis of embodied carbon in imports by Oxford’s Dieter Helm (et al). It looks at the UK’s carbon emissions from the “consumption point of view.” The paper notes that using conventional producer-based carbon accounting-methods,
“UK greenhouse gas emissions have fallen by 15% since 1990. In contrast, on a consumption basis, the illustrative outcome is a rise in emissions of 19% over the same period. This is a dramatic reversal of fortune… It suggests that the decline in greenhouse gas emissions from the UK economy may have been to a considerable degree an illusion. Trade may have displaced the UK’s greenhouse gas appetite elsewhere.”The same paper has a well-articulated overview of the “consumer vs producer” paradigm:
“Both these [currently used] methodologies are based on the location of the production of greenhousegases. This, however, is a somewhat misleading and partial basis for policy purposes. For a country could have a very low production of greenhouse gases, but at the same time have a high consumption level. It could produce low-GHG-intensity goods, but import and consume high-GHG-intensity goods. Thus, a developed country might cease to produce steel, aluminium, glass and chemicals domestically, but import the manufactured goods from abroad. In the UK’s case, the shift of production in such activities to China, India and other developing countries in the last two decades suggests that this effect may be considerable… China might argue that, although it produces high emissions, these are on behalf of consumers in developed countries, and therefore the consumers should pay for the relevant reductions. In this way, the polluter is not the producer, but rather the consumer.”Also, the paper finds that “by 2006, the trade deficit in greenhouse gases [in the UK] was 341 MtCO2e, around 50% of domestic UK greenhouse gas emissions.” Another data point in understanding our total carbon footprint.
2008-06-12T20:13:00-07:00I made another one http://davduf2.muxtape.com/
2008-06-02T19:29:14-07:00The first proof of the preacher himself committing the sin is my inability to do a Blog in recent weeks – shame on me for procrastinating!
2008-06-02T16:28:35-07:00Fred Wilson of Union Square Ventures just wrote a very informative and articulate post on how he made it as a VC. Here's what Fred thinks you should do (as opposed to what he did): The way you do that...Fred Wilson of Union Square Ventures just wrote a very informative and articulate post on how he made it as a VC. Here's what Fred thinks you should do (as opposed to what he did):
The way you do that is you work for at least ten years in the industry, getting operating experience, building a killer rolodex, and learning how the business works from the inside. Then in your mid to late 30s, you can make the move to the venture capital business, as a partner, not as a wet behind the ears associate who doesn't know anything other than how to push numbers around a spreadsheet.A number of VC firms do, in fact, hire precisely based on this profile. If you're not prepared to take such a circuitous path, here's a post I wrote a while back on finding a job in venture capital.
2008-05-27T13:05:18-07:00I'll be a judge at the Games track at the Under The Radar Social Media and Entertainment Summit June 3rd in Mountain View. Good mix of companies and I'm looking forward to it!I'll be a judge at the Games track at the Under The Radar Social Media and Entertainment Summit June 3rd in Mountain View. Good mix of companies and I'm looking forward to it!
2008-05-13T20:17:29-07:00It's pretty well known that Amazon Web Services' EC2 and S3 initiatives have taken off and are gaining users not just in startup land but in Corporate America as well. Amazon provides a compute and storage cloud, and the rush...
It's pretty well known that Amazon Web Services' EC2 and S3 initiatives have taken off and are gaining users not just in startup land but in Corporate America as well. Amazon provides a compute and storage cloud, and the rush of companies big (e.g., Google) and small (e.g., Nirvanix) beginning to compete with Amazon in providing clouds has spawned a term and a movement - Cloud Computing.
I've been involved with precursors to cloud computing (Utility Computing, Grid Computing, Application Service Providers - ASPs) from my days at Corio, an early ASP acquired by IBM in 2005. In fact, back in graduate school at Cornell, I did research on assembling commodity hardware into compute grids. Small wonder, then, that Cloud Computing is an area I'm looking at quite actively for potential investments.
Peter Laird has a great blog post that defines the landscape of Cloud Computing; I encourage anybody interested in the space to read Peter's post. And Peter's cheat-sheet on the players is invaluable if you want to appear well-informed :-)
2008-05-03T13:33:00-07:00As a sector, transportation is certainly a significant source of carbon emissions. But perhaps because it is so visible, or even tactile, transportation gets a lot of attention, and people tend to overstate its role in embodied emissions. Some recent NY Times articles make references to some related data which are worth quoting:From the Green Issue of the Magazine: “It is the locavore’s dilemma that organic bananas delivered by a fuel-efficient boat may be responsible for less energy use than highly fertilized, nonorganic potatoes trucked from a hundred miles away. Even locally grown, organic greenhouse tomatoes can consume 20 percent more resources than a tomato from a far-off warm climate, because of all the energy needed to run the greenhouse.”The same issue also quoted the famous New Zealand studies, though in a somewhat skeptical tone: “A handful of studies have recently suggested that in certain cases under certain conditions, produce from places as far away as New Zealand might account for less carbon than comparable domestic products.”Also, when Timberland studied the embodied emissions of its shoes, “the company was surprised to find that transportation may account for less than 5 percent of its greenhouse-gas emissions — while almost 80 percent may come from making the leather, a process buried deep in its supply chain.” (Note however that Timberland seems to have overestimated the emissions related to the leather.)The above study is consistent with Weber and Matthews’ study on the embodied emissions of imports into the United States, which suggests that “CO2 emissions due to international freight transport are unlikely to increase the totals [of embodied emissions in imports] by more than 10%.”In an article on the environmental impact of groceries, it was calculated that a bottle of European wine drunk in New York has 1.4kg of embodied CO2, while a Napa bottle would have 2.5kg. Ironically, in this case, the major difference does lie in transportation, since Napa wine is trucked to New York, while French wine is shipped, thus consuming far less carbon per mile shipped.So much for drinking local (or at least national.)Finally, a hopeful note in today’s article on transportation’s direct carbon footprint. “A paper presented by Travelport at the World Economic Forum in Davos in January… stated that consumers want information about their carbon footprint as it relates both to business and personal travel. 'That desire for information has the potential,' the paper said, 'to reshape the travel policies companies set and the choices companies and consumers make across a broad range of decisions: how they travel; when and where they travel; what airlines, hotels, and rental c[...]
2008-05-01T09:27:02-07:00Dealmaker Media is offering readers $100 off the Under the Radar Social Media and Entertainment event on June 3rd in Mountain View, CA. Click here or on the image below to register with the discount. Here's the conference description (I'm...Dealmaker Media is offering readers $100 off the Under the Radar Social Media and Entertainment event on June 3rd in Mountain View, CA. Click here or on the image below to register with the discount.Here's the conference description (I'm a judge, btw): Under the Radar: Social Media and EntertainmentJune 3, 2008 | 8:00am – 6:00pm Microsoft Campus | Mountain View, CA If you can't beat 'em, buy 'em. No longer is big media trying to compete with the content companies that were stealing the show - instead, they're offering them a premium channel. From YouTube to Bebo and MySpace to Club Penguin, every media mogul, Hollywood tycoon and Silicon Valley innovator wants a piece of this pie. But even Toto knows we're not in Kansas anymore - technology has changed, business models and ad metrics are being reinvented, and the pressure to turn millions of eyeballs into billions of cash is on. Blink once and they just might get side-swiped by a startup with a better product, a smarter model and, even worse, nothing to lose.Under the Radar will uncover 32 startups in the entertainment and social media space that have launched within the year. Covering social networks, advertising, casual gaming, virtual worlds, measurement tools, video, commerce, publishing and more, Under the Radar is the only forum that empowers its audience to discover tomorrow’s leading tech companies. PRESENTERS: 33Across - Identifies influential online users Animoto - Create personalized, professional-quality videos from images and music, offering a new alternative to traditional online photo slideshows AudioMicro - Stock music and sound effects licensing platform Aviary -Suite of web-based applications for people who create and a marketplace to sell that content Dizzywood - A virtual world that allows kids to dress up 3D avatars, play games, explore worlds and meet new friends in a safe environment Comedy.com - aggregated comedy entertainment siteCrowdSPRING - crowdsourcing of creative talent.ffwd - Organized, multi-platform, video content delivered via a browser, with social network awareness, and predictive recommendations.Jygy - mobile social networkingGumGum - A licensing and distribution platform for online content Hollywood Interactive Group - A mass casual mmo based on reality TV concepts and Hollywood stardom. Jacked - Browser-based “second screen” for TV viewers, which provides synchronized content and a real-time interactive[...]
2008-04-21T05:47:29-07:00Novaled, a major know how and service provider for highly efficient long lifetime OLEDs, announces today that the company is winner of Red Herring 100 Europe 2008, an award given to the top 100 private technology companies each year. At the same time Novaled releases the last year’s results proving the enterprises rapid growth.Red Herring’s […](image)
2008-04-20T12:30:00-07:00Following my previous post, I thought to look at Saul’s energy usage / carbon footprint calculations by separating out his personal energy usage from his work related consumption.See the notes below on how I have separated the work from the personal energy usage. The chart below separates out the numbers into 4 categories, and speaks for itself. Almost half of Saul’s home energy usage comes from “Food and Stuff” which represents the embodied emissions of his consumer purchases. Of course, as Saul has pointed out, he has probably underestimated the energy usage associated with these categories.Again, people can dispute the difficulty of calculating the embodied emissions of “stuff”, but at almost 4 times the energy usage of his home heat and electricity, Saul’s calculations should at least, again, put the importance of embodied emissions in perspective.__________________________A few other notes:Like the truck driver in my previous post, Saul’s major source of carbon emissions relates to his travel for work. His total work related energy use should be compared to the value of his work, in revenues from his company or at least with the costs associated with the company. This figure should be compared to other businesses in the same sector.Energy usage of ‘stuff’ related to work would probably need to be more comprehensive, including things like capital goods (servers, furniture), services delivered to his workplace (fedex, as well as consumables (like pencils and paper and printer toner.)Here is the data:Some notes on separating work from home usage:Saul mentions that most of his air travel is for work, so I put in a “wild guess” number of 90% related to work. Inversely, I assumed 90% of his car usage was for personal (ie home) use.In stuff, I only allocated his laptop to work. As noted above, there are probably other work related goods that should be added to his work “stuff”The allocation of societal consumption is an interesting one. Here I have assumed it is half for work and half for home. After all, government exists to serve both individuals and to support businesses. Although the actual impact at ~3% in total is not very big, a more thoughtful method may still be needed here. For example, there could be an argument that government is there only to serve the people, so 100% should be allocated to individuals. At the same, this would distort the picture for developing nations (and the goods they export), especially since substantial government resources are probably expended on supporting businesses. [...]
2008-04-15T13:45:00-07:00“Power Consumption at work... This... brings up a very interesting point... where do you draw the lines in figuring out your own energy consumption? Does work energy go against you or the product of that work?”Saul Griffith’s excellent presentation gives a very thorough view of carbon foot-printing, and the particular question above is quite fundamental. I would argue that personal energy consumption should be treated separately from energy use for work. The energy use related to our work should show up embodied in the product of our work.A few examples could help illustrate why…Say I am truck driver that delivers apples ( ;-) ) to a local grocery store. It would not make sense to mix my personal energy consumption behavior with my job as a truck driver. Even if I lead a carbon neutral personal life, mixing my stellar home footprint and my work related emissions would give a distorted view of the choices I can make – ie the factors which are under my control, in my personal life.Now let’s imagine the exact opposite case. Let’s say you are a small business owner, doing most of your work from the office using emails and phones. Again, you could be driving a hummer from home to work, and leave your oven on 24 hours a day, but if you mix your personal and work energy usage, you would still seem more eco-friendly than the me.Now, to drive the point home, imagine that you are my boss, and you are responsible for deciding the kind of truck I would drive. Clearly, the distortion created by mixing personal and professional energy use and footprints would make the exercise quite meaningless.This is not to say we shouldn’t worry about our work related energy use. All of us have some say in the energy consumption of our workplace. And we can make choices to affect it. But the energy consumption of my apple delivery business should be compared with the energy consumption of other apple delivery businesses, or delivery businesses in general. The result of our work, and the energy we consume to deliver it, would both be manifested in the product of our work – in this case, an apple. So it would also make sense to use metrics like CO2 emissions per apple delivered…Or, for practical purposes, so as to be able to generalize (and mix apples and oranges in the same truck), one could measure, CO2 per dollar of revenue delivered…Or rather, to be able to account for each business’s share of economic activity, carbon emissions per dollar of economic value add.(To illustrate: Let’s assume I have an apple delivery business using apples from my brother’s farm. And say you have an apple farm and del[...]
2008-04-06T01:48:00-07:00“Developing countries, whose economies and populations are growing fastest, [will] contribute 74% of the increase in global primary energy use [until 2030]. China and India alone account for 45% of this increase.” World Energy Outlook 2007, IEA So three quarters of all new power production capacity will be in developing countries. Close to half of it in India and China. And according to the same report: “China, with four times as many people, overtakes the United States to become the world’s largest energy consumer soon after 2010. In 2005, US demand was more than one third larger.”And... “In the longer term, [in China,] demand slows as the economy matures, the structure of output shifts towards less energy-intensive activities and more energy-efficient technologies are introduced.”This last sentence is the most interesting. It sounds like the basic assumption of the report is that China will make a typical progression towards a more advanced economy: As the country becomes richer, not only will it care more about the environment and prioritize more energy efficient technologies, but the economy as a whole will become more service oriented, much like that of the US. Of course, this does not mean that the world will consume fewer goods. It just means that those goods will be produced in a new generation of up and coming developing nations – and those nations would account for the ~30% of the total increased energy use until 2030.One could imagine that, like China today, those countries will want to use the cheapest (and thus potentially the dirtiest) fuels. They might also argue that it would be unfair to impose environmental restrictions on them since they too have a right to grow their economies. Just as China points to Europe and America’s growth and how they were fueled by dirty coal, those countries may point to China along with Europe and America and make the same argument.And from their perspective, they would be right, just as China is “right” in its argument today.The problem is the paradigm upon which the argument relies. It is a “producer responsibility” paradigm of CO2 emissions, looking at emissions based on where they were produced or emitted, not on why they are produced, and for whom. The "producer responsibility" world view ignores the "end-user" or consumer of the products which were created using those emissions.Many developing countries, especially in their early stages of development, rely heavily on exports. In effect, they are using much of that new energy capacity to produce goods wh[...]
2008-04-04T07:04:00-07:00Muxtapes are the new Scrabulous. So I made one. davduf.muxtape.com
2008-04-03T09:30:14-07:00Reims, le 2 avril 2008 : Reims Aviation, leader européen de la surveillance aéroportée légère, annonce avoir signé un protocole d’accord pour l’acquisition de la société Flying Robots(image)
2008-03-29T03:09:05-07:00Golden Horn ventures is organizing a conference in Istanbul, Venture Capital in Emerging Markets. The goal is to bring together fund investors, venture capitalists from all over the world and entrepreneurs and discuss investment strategies, the right and wrong practices...
2008-03-19T11:48:56-07:00Novaled, a major OLED know how and service provider reinforces its presence in the Asian market by opening a Japan Branch office.Effective from 10th March 2008, Novaled set up a Branch Office in the Tokyo area. With this new opening, the company confirms its commitment to the OLED industry in Asia. The Novaled Branch office […](image)
2008-03-12T14:39:07-07:00Les technologies du développement durable « cleantech » s’affirment désormais comme l’une des priorités du capital-risque. Aux Etats-Unis, l’engouement pour le capital-risque vert a même provoqué en fin d’année dernière une mise en garde de l’association des investisseurs en capital, la NVCA, inquiète du risque d’une nouvelle bulle. La croissance est en effet très rapide […](image)
2008-03-08T13:22:34-08:00Emission de France24 évoquant les Cleantech : alors que les industriels américains ont déjà réagi favorablement au secteur des énergies renouvelables, les entreprises européennes se mettent enfin au vert.(image)
2008-03-02T18:13:28-08:00So here is something new for interested entrepreneurs.
2008-02-27T11:26:39-08:00Thierry Lepercq, président de Solaire Direct, est interviewé au sujet de la progression de 200% du marché de l’énergie solaire et photovoltaïque en France.(image)
2008-02-21T19:34:28-08:00AND CLUES FOR A SUCCESSFUL PRESENTATION!
2008-02-15T09:34:13-08:00Citilog, a world leading provider of intelligent real time video monitoring and surveillance solutions for traffic, transportation,security and safety management, today announced MediaIntruder(TM), its intelligent incident detection software-based solution, is now available in North America. MediaIntruder automatically detects in real time any indoor or outdoor intrusion activity using video streams from video surveillance cameras.It uses […](image)
2008-02-11T11:59:37-08:00Après la Caisse d’Epargne Provence-Alpes-Corse, l’énergéticien Solaire direct vient de signer un partenariat avec le Crédit Agricole Alpes Provence. Objectif : encourager professionnels, agriculteurs et propriétaires de maisons individuelles à installer des panneaux photovoltaïques chez eux grâce à la mise en place d’un prêt sur-mesure.Installer des panneaux solaires photovoltaïques sans que cela ne pèse sur […](image)
2008-02-08T17:51:08-08:00Just came back from the Always On event in NY; over 600 people packed into a couple rooms on the 36th floor of a fancy hotel – I was reminded of the events and conferences during the late 90’s – lot’s of buzz, loads of optimism and discussions of the perfect storm!
2008-02-03T22:49:50-08:00A non academic view of business change & improvementStating the sometimes forgotten obvious:A business is a living entity that embodies many functioning organs. It performs the best and is healthy when all the elements are working together in harmony. The physical components of this living organ includes sales, marketing, IT, logistics, accounting, etc. and its psychology is represented by the core values, cultures, and beliefs. A pain or a dis-functionality in any organ influences the effectiveness of the business entity as a whole – if you are ill mentally or physically you can not be fully productive.An illness maybe addressed by a better diet or some vitamins or a few pills a day for a few weeks (process improvement, overtime, incentives, etc.) or may need more drastic measures such as chemotherapy or surgery (re-organization, firings, new IT systems, a new business model, change of partners, etc.).Almost always, to cure an illness the prescribed actions have some side effects. A change in the sales force compensation plan, influences the accounting daily practices, may require new software, may increase returns and impact the resource needs at the warehouse. An improvement in the resource planning software impacts the practices at both payable and receivable ends, Promote the person who is not competent and deal with your good folks looking for another job, etc. etc. Sometimes we actually create the illness with our actions (cutting our hand with a knife or hiring the wrong person).Stating the not so obvious challenge:So BECAREFUL of what I call “THE RIPPLE EFFECT” – Make a decision about A and watch for the ripples impacting B. And every decision big or small has some ripples. So what should an entrepreneur do, not make a decision ? or lose time and opportunities by over analyzing and procrastinating on every decision?You want to stay healthy, you have to monitor your heartbeat, your cholesterol, your blood pressure, etc. etc. and react quickly to avoid worsening of your situation. You want to run a thriving and healthy organization, remember to measure the “right” performance indicators and watch them closely with a broad inclusive perspective.Yesterday, I met an entrepreneur, [...]
2008-02-01T07:24:03-08:00Entrepreneurship is hard. Tackling technical and business problems and building a business from the initial idea up, one step at a time is very difficult. Starting from the idea, technology entrepreneurs make certain mistakes that make their lives even more... Entrepreneurship is hard. Tackling technical and business problems and building a business from the initial idea up, one step at a time is very difficult. Starting from the idea, technology entrepreneurs make certain mistakes that make their lives even more difficult. These mistakes can be caused by the entrepreneur fixating on what she is comfortable with - people tend to stay in their comfort zones -, or misconceptions of what is valuable in business or maybe simply being a first time entrepreneur. As investors in early stage technology companies, we keep on seeing similar problems in different companies, which tells us that these are common mistakes, especially in emerging regions. Below is a list of these mistakes which we have seen and which might eventually cause a business to fail or or an opportunity to be missed. It isn't intended to be exhaustive but rather indicative. Some of the mistakes listed are common to the nature of the technology entrepreneur, but some are the results of the state of the sector in emerging countries. Mistake No 1: "We are a framework company and can do it all" The idea of a framework company sounds attractive. Especially, in this region entrepreneurs tend to collect their expertise into a "framework" with no product or application definition. Having a framework that works can be very advantageous. However, the downside is the entrepreneur's indecisiveness on selecting a focal application that will act as the showcase for the power of the framework. Sometimes, because the entrepreneur lacks sufficient knowledge on a specific area or the "productization" knowledge and expertise, she tends to sell the framework - and that puts her in a very difficult play. An example of a successful framework is what the Skype entrepreneurs had. They had a great peer-to-peer distribution application that they developed in a company prior to Kazaa. Later they used this framework in Kazaa. [...]
2008-01-24T06:23:00-08:00Thanks to Embrase for organizing this. Great crowd. Lots of young entrepreneurs. Awesome. Not enough angels (unless they all kept very quiet and/or are wealthy at a surprisingly young age). Probably just the right number of VCs, although there's a bunch of early-stage investors I would've expected to see there and didn't. (Forget Réseau Capital for a while, guys... your next 10X deal was in the room last night).Format was a bit too strict and people couldn't keep from loudly networking during some of the presentations, which I think is natural and expected. Cool by me. Startups are chaotic, so I can't see why startup events shouldn't be.Sylvain Carle live-blogged Graham Hill's (TreeHugger dude) talk. Check it out, good simple, advice.I've seen two other good posts about last night:Mike LQuebec ValleyQuick thoughts on the presenters (check out their websites):Cozimo: Looks very promising, very user-friendly. Not sure how much value they add to what's out there already (not a space I know very well). If I were them I'd go after very specific market niches, tailor a solution for each of them and focus. If you're a startup and your addressable market is over 1 B $ at Day 1 there's usually a problem.Tungle: I'm totally biased, of course, but I believe these guys are going to be huge. (But 1st they have to LAUNCH, goddammit). One thing's for sure, Google and Mac support has to be early in the roadmap, since they seem to be the calendars of choice for a lot of the evangelists and early adopters out there.Streametrics: Makes a lot of sense. Not sure anyone really understood how it works (only through their own player ??! website doesn't really clarify this for me). But timing could be perfect if they get any kind of traction and beat the dozens that are probably developing something similar.I Gotcha Media: Lots of progress since their "wi-fi pad" days. Definitely cool integration of technologies. They look like they're onto something but I've always had huge concerns about "signage" technologies, whether it'd be for retail stores, malls, airports, elevators. At the end of the day, however cool and useful your displays are, you never "o[...]
2008-01-21T12:03:00-08:00Wow, this little "blog" of mine has been pretty quiet lately, eh ?
During the holidays I had a chance to take a short vacation in Cancun Mexico. Upon arrival I quickly was forced to deal with various types of sales people with a diverse range of techniques. And as any good entrepreneur would (or should), I began to pay attention and learn.
Imagine an endless row of stores all selling pretty much the same products, as a sales person how do you have a customer buy from you and not the guy next door? Now imagine you are selling a $20,000+ time share - and so are about a 100 other people in a 100 yard radius - and you have a few minutes while a tourist is walking by to open and no more than a few days to close. How do you do it?
After observing a significant number of data points (and it is not difficult as you can … yes, imagine again), here is some key learning:
2008-01-13T22:16:40-08:00In the recent past, we've heard grumblings of frustration from management of leading wine e-commerce player Wine.com, over the fact that many wine shops and other merchants were skirting the byzantine laws which govern the distribution and shipment of alcoholic...
2007-12-09T18:21:29-08:00In follow-up to the Podcast discussion Frank Peters, Dave Berkus and I had a couple of weeks ago (http://www.thefrankpetersshow.com/), a few entrepreneurs wanted to learn a little more about the various channels of raising equity and particularly the characteristics of each channel.Following is a 10,000 foot level, but focused discussion of the various equity sources:Friends & FamilyYour dad, uncle or a rich body – almost always non-strategic, almost always come with confused valuations and even more confuse structures that will be costly to clean-up later, and often the money raised gets to be wasted on experimentation. It is however, the easiest money to raise since they know you and trust you the most. Raising Friends and Family round generally does give the VC’s and the Angles the warm and fuzzy that at least your relatives and friends trust you.Angels (individuals & groups)An individual angles or group of angles that pull together to invest – generally invest as individuals or as an LLC. If you have the right angel or the right lead (if a group) to spearhead the process things go smooth, the right group or person can bring significant focus to the process, the wrong angels can introduce a confused direction, non-professional angels often offer less assistance than you expect or they originally may claim, professional angles go out of their way to help a good entrepreneur. Angles often do not make second round investments, if dealing with a group the process may take longer than you expect. Example: Tech Coast AngelsIncubatorsProvide a place, some computer and office support, some HR and accounting support -- only the focused ones work, a lot of incubators have real estate motives which gets them derailed from operations, often too dilutive for very strong teams. Example: Idea lab.Venture Capital FirmsOrganized large funds with a few managers in charge of investing the funds money and helping portfolio companies on the path to exit - funding ratios are very low (less than 1%), generally. The firm matters A LOT, concept st[...]
2007-11-30T09:54:26-08:00… and it happens everyday - different people and different businesses.A year and change ago, I was asked to make an investment in a venture – a couple of smart technologist with previous management experience creating a VOIP related company. I knew the entrepreneurs and was absolutely convinced that they are smart and dedicated. The business model, however, did not make sense to me and I did not invest.The company raised around $500K. A few months later, they are looking for money and are considering a change in the business model… and later, a new angel investor with another $500K or so has influenced the team to focus on an originally tangent mobile technology to create a novel consumer application.The new business model and technology was intriguing and reached for my check book! But before signing, met with the two founders and the recent addition to the team, a brilliant new CEO with big telecom and carrier experience.So, I met the team and my check book was quickly back in my pocket. The founders were showing early stages of the “founder disease” – we are in love with what we are building, we know exactly how it should work, if we only need money to scale the product and market it, the company is worth millions and WE will build it into a new giant. In short, I found the team non-coachable and looking only for a check book and not a partner. I also found the new hotshot CEO Was suffering from the “big company syndrome” -- very limited early stage experience; I did it at XYZ so I can do it here, we had a $100 mil budget, over 300 developers and delivered the product in only 3 years - oopps there is no mega dollar budget, only a few developers, a very limited and rapidly depleting bank account – no room for error.Later news … the team had made some progress and a pilot demo was built, VCs were approached and a term sheet was received at a great valuation (dilution of about 30%).The team did not accept the term sheet. One of the clauses (standard in almost 100% of VC term sheets) was the ab[...]
2007-11-29T14:05:14-08:00Recently, Dave Berkus, Frank Peters and yours truly participated in a round table style podcast on the the Frank Petes Show -- click here to listen. http://www.thefrankpetersshow.com/
2007-11-21T16:36:26-08:00Just in the nick of time, my wife came through with a pointer to a very helpful article in the New York Times (registration required) describing an excellent turkey carving technique. She is hoping to save me from the ignominy...
2007-11-06T22:21:50-08:00With the title of this post, I am paraphrasing another favorite New Yorker cartoon (again).As I toil away trying to raise a million here or a million there for some great cleantech companies (see the side bar of this blog), PetroChina made its debut on the Shanghai stock market, tripling in value, and becoming the world's first trillion-dollar market cap company.Certainly, PetroChina cannot qualify as a Cleantech company, despite some notable important activities. So this boom is just a reminder of the importance traditional energy continues to play in our global economy, and the extent to which demand for it is now driven by China and other developing nations.I guess investors were not concerned by the strong non-market forces which affect the stock price. Chinese regulators just announced a delay in the expected lowering of restrictions on capital flows from mainland investors. These restrictions have driven an unsustainable difference between the Shanghai-listed shares and Hong Kong-listed shares of several comapnies.Also (coincidentally?), Chinese regulators raised the mandated price of retail gasoline last Friday by 10%. These higher prices substantially aid PetroChina's financials, since they buy crude on the world's open market, but sell refined gasoline into a price-controlled market in China.With all these non-market influences, it is difficult to see how this trillion-dollar threshhold could be long maintained. (This also raises broader questions about goverment fiat in China which I intend to address in a separate post.)But for the time being, a new milestone deserves recognition and reflection. Interestingly, we at Bessemer Venture Partners are forever tied to the world's first billion dollar market cap company. In 1901, J.P. Morgan purchased Carnegie Steel, merged it with Federal Steel and several other companies to form U.S. Steel. The combined company's $1.4 billion capitalization set a new mark.Henry Phipps, [...]
2007-11-02T17:37:05-07:00This topic may not be sexy or intellectually challenging, BUT, I think it is important. As emails go, I think we are confusing effectiveness and speed.I get in excess of 250 emails a day. So often important issues may be ignored due to volume and unimportant matters may take a lot of time. And I am not the only one inundated with so much volume.The problem is that simple issues that can be resolved in minutes with a quick personal conversation actually take multiple emails. Important issues that require real discussion is boiled down to snippets of responses – the result is that decisions are most likely not as comprehensive and often based on either partial information or influenced by the desire to quickly get to a yes / no answer. We achieve speed of exchange but in a lot of situations lose effectives. I can’t count the number of occasions when efforts are duplicated because some one acted on partial information exchanges in emails and had to re-do things. Now, add the complications of global operations, language barriers and time zones and you have a real challenge on your hand.There are clearly two schools of thought 1) short, abrupt, and to the point emails vs. 2) verbose and detailed – focusing on CYA. Some write so much stuff that makes me wonder, if they have nothing better to do, and others are so quick to rush to an answer that makes me wonder if they truly care about how their answers may effect the company results and effectiveness.NO, I am not suggesting to go back to the dark ages. I am suggesting, however, that people are essential to execution and confused people can only produce confused results and effective communication is the only way to get to clarity of direction and purpose. One of the ten commandments of effective execution is effective communications – emails are effecting execution!My advice, LEARN, AGAIN, TO USE THE PHONE for important issues, use the email for things [...]
2007-10-30T14:19:00-07:00On Platforms Versus PrescriptionsIt had been a while since I first read Socolow and Pacala’s classic paper laying out the concept of “Stabilization Wedges” – the idea that we can implement several current technologies, each a wedge, to reduce carbon emissions to quasi-sustainable levels.I didn’t feel comfortable with the word “wedge”, and wondered about its philosophical underpinnings. Why did they choose the word?According to Wikipedia, “A wedge is… used to separate two objects… through the application of force.” (emphasis added.) Sounds like somewhat of a primitive method. (Little surprise that the wedge “has been in use as early as the Stone Age.” ;-) )Of course the paper itself is great, in that it sets tangible goals to reduce carbon emissions, and emphasizes that the goals are technologically achievable. But the term ‘wedge’ seems to have been used just because the savings from emissions in the paper’s graph looked like wedges. No deep philosophical underpinning intended!Except that such terms tend to take lives of their own – and in this case, the problem I have with it, is that it can take on a prescriptive connotation. Take these phrases (from the paper) for example:“A wedge would be created if twice today’s quantity of coal-based electricity in 2054 were produced at 60% instead of 40% efficiency.”“a wedge of nuclear electricity.. would require 700 GW of nuclear power with … about twice the nuclear capacity currently deployed.”“a wedge from photovoltaic (PV) electricity would require 2000 GWp of installed capacity that displaces coal electricity in 2054.”“An ethanol wedge would require 250 million hectares committed to high-yield plantations by 2054”etc. etc.Socolow did not necessarily intend for these goals to have policy implications – but don’t they just sound like they are calling us to use the brute applica[...]
2007-10-23T04:23:32-07:00For several months now, I have been privately telling anyone willing to listen that search advertising, though incredibly effective, is over rated. At first glance, it would appear that advertising to someone in context of his search activity is an utter utopia for marketers. What better time to advertise a DVD player, for example, than when a consumer types "DVD player" into Google's search box.(image)
2007-10-13T12:15:25-07:00GigaOm's Earth2Tech (what does that mean?) notes that there are too few women in Cleantech. To help spotlight some of the best, they have posted their list of the The Top 10 Women in Cleantech. While I have to agree the raw numbers of female executives and investors in the space should (and will) go up, we should reflect on what an impressive list of individuals this is regardless of gender. Having met a number of these women in person, I'd say they could take on the male Cleantech all-stars any day. With leaders like this, expect more talented women to be attracted to the field quickly.Congratulations to my ConsumerPowerline co-investor and fellow Board Member Diana Propper de Callejon of Expansion Capital for making the list at #4. By the way, Bessemer first got to know ConsumerPowerline due to the insight and persistence of BVP Analyst Sarah Tavel, herself no slouch:Thank goodness for the talented women in Cleantech!Blogged with Flock[...]
2007-10-11T15:37:26-07:00Recently you may have read (or re-read) of the benefits of resveratrol, which we're pretty sure inspired you to administer some red wine immediately. Did you know, though, that levels of resveratrol are higher in organic wines than in non-organic...
I am quickly learning that writing a blog requires a lot of discipline. You need to be thoughtful and quick - My apologies for being a slow learner - I’ll get there. It would be great, however, if you could help me with topics – what interests you? Here are some topics I am looking at:
2007-10-04T15:58:03-07:00In my days, I have met with many many entrepreneurs. We have agreed and disagreed on things, learned from each other, and experienced disappointments and successes together.Here is “one” way to slice and dice the group.The Pure DreamerThe pure dreamer is filled with new and novel ideas -- innovations and schemes that will make a lot of money -- for some, every once in a while they see their pictures on the front page of the Time magazine . Despite their potential, majority of these folks never cross the bridge and get to the “doing side.” They are always waiting for the right time and almost always regretful (if only, I had that idea a long time ago, ..). My advice to this group is to either admit that you are a dreamer (get it over with) and then enjoy the dreams and the innovations without regret, frustration and the feeling of failure OR “just do it” as the saying goes; the short cut to results may be finding a partner with a different character profile! The “not so Pure” DreamerThese are the self proclaimed entrepreneurs that generate ideas faster than bunny’s produce offsprings. They have a shotgun approach - the more bullets in the air the higher the chance of a hit. The not so pure dreamers have yet to see an idea they do don’t like and a risk level that is too high! My advice to them is that entrepreneurship is more of a laser guided sport and the more is not always the merrier. Aim carefully and focus. Fast talking is not the same as salesmanship and focusing on a quick buck is not entrepreneurship. The Always Stealth CreatorAs the name suggests these guys have discovered the next big thing but are afraid that others may find out and copy it - on the basic assumption that the rest of the universe are “n[...]
2007-10-04T15:57:35-07:00Last week, I was on a panel with other investors discussing the “do’s” and “don’ts” of angel and venture capital investing some one from the audience fired a series of intriguing compounded questions ” why are the VC’s so illusive?, why don’t they have all their information available? Why don’t they disclose how they come up with their valuations? Why are the selection criteria’s so undefined????”All valid questions and valid statements – the event made me think that entrepreneurs view of the equity investment community is entirely different than that of the inner circle and this mismatch of perceptions is not disruptive and unhealthy.So let’s talk about the truth about the Angles and the Venture Capital firms; here is a few points to start with:1- Looking for Money Vs. looking for a partner: investors look for a partner that they can invest in and help grow a business. Entrepreneurs look for money and often feel (although they may claim otherwise) that if they had the money they could do it by themselves. This difference of view causes so many deals to stall and never get funded. Investors don’t want to be running companies, period. They are, however, investing to make money and if the team is not doing it, they have the responsibility to their investors (limited partners of their funds) to act and to get a wining team in place.2- Saying NO: it is very difficult for the VC’s and investors to say no to hundreds of deals before saying yes to one. People don’t like to hear it; it is their baby, their dream and they have worked hard – the no becomes very personal to the entrepreneur. If the investors wanted to make an investment in every deal they see, they would run out of money very [...]
2007-10-04T15:56:57-07:00The entrepreneurs were clearly fatigued when they waked into my office. They had raised close to a $1,000,000 at a whopping valuation of close to $10,000,000. The friends and family investors were joined by a couple of angels who were fortunately (as the entrepreneurs claimed) very hands off. Unfortunately, the bank balance was almost $2000. The product is almost there they claimed and the patent was almost approved. The product a video / picture tool was indeed slick, but I had to scratch my head as how to make money from it. The exit was rather unclear and the deal was over shopped; as almost every VC had looked at it and passed – the problem; the valuation was too high for the progress made, the exit was not clear, and the had no idea as to how to making money.Nice tool! How have you tried to monetize? the answer was “we are trying to build a community” also, “we can offer the tool as an ASP model to enterprise customers”, “we have a customer that uses the tool on his website” , “we feel that when we develop the next version with mobile capabilities it will really pick up” were some of the answers provided in a span of a 30 minute conversation. I guess the best answer was the last answer they gave me “we really don’t know”. The answer to how you tried to sell it was telling also: “we hired some sales people to go out and sell the enterprise version at a price point of $300 to $500” - the sales people never produced any results.A very cool tool, about a million bucks, and a lot of sweat and tears was about to go to waste and you could clearly see the entrepreneurs frustrated and in distress.1- So here is the quick diagnosis and feedback:2- So what if you have th[...]
2007-10-04T15:56:07-07:00There is just too much to say about the topic and I have been warned about being too verbose with lengthily postings so this is a 3 posting series. Following is the first posting:The big picture of bootstrappingBootstraping, in my opinion, is not about conserving cash or paying out of your credit cards (although those may become ways to achieve it). Bootstrapping is about taking the right action at the right time. It is about making quick and timely decisions. And it is about being focused on cash flow and incremental progress.There are a few key elements / drivers that make bootstrapping generally lead to better results:1- When in Bootstrapping mode, the margin of error is much smaller and more importantly the entrepreneur knows it. This causes decisions to be more focused on generating results and on making money, and that is a very good thing.2- The risk is personal and decisions are reduced to absolute “value” delivery. Being the one who would hold the bag if things don’t work and being conscious about the responsibility to our family makes the risks to be taken very personal. Naturally the game becomes much more dangerous but the danger brings with it a wonderful force of reason that makes us focus on doing the things activities and products that delivers value to the customer – the only way to make money is if we sell & collect and the only way to do that is if the customers see a compelling value in what we do – personal risk forces us to focus on the essentials, and that is a very good thing.3- Time is a commodity in bootstrapping mode - this makes agility the norm. Being pressed by time makes us move faster, make quicker deci[...]
2007-10-04T15:55:19-07:00There is just too much to say about the topic and I have been warned about being too verbose with lengthily postings so this is a 3 posting series. Following is the first posting:
2- Bootstrapping initiates the critical sales learning process sooner, not later.
3-Bootstrapping does not waste money: the focus here is on the early and closer customer contact.
4- Bootstrapping accelerates time to market and time to profitability – if you can not possibility wait for the next version to get ready, you compromise and try to make money from what you have.
5-Bootstrappers are less likely to make big, fatal financial mistakes. Being alert about survival makes people much more alert about catching fatal mistakes.
6- Bootstrappers are forced into unconventional thinking – necessity is truly the mother of invention.
7-Bootstrappers have more freedom and flexibility – when you take money you become slaved to the business plan.
8- Bootstrappers end up owning much more of what they create – and that is a good thing.
Coming next a few words about when you should not bootstrap & some of the negatives.
2007-10-04T15:54:35-07:00There is just too much to say about the topic and I have been warned about being too verbose with lengthily postings so this is a 3 posting series. Following is the third and last posting:So when is bootstraping not a good idea? Almost never!However … there are times that injection of external funding is crucial to the delivery of value and no revenues can be generated unless significant investments are made. In these cases the bootstrappong duration may be shortened but not eliminated.When things are not in your control or costs are very high:1- You are in the pharma or medical devices business and an FDA approval is needed before you can sell – these ventures usually involve significant upfront research and multiple scientists , require expensive lab equipment and need to have trial results from hundreds to thousands of people. In this cases the SBIR and other grants are critical and should not be overlooked – not only they are non-dilutive, they help provide credibility – building university and commercialization partners are also critical.2- Chip design – regardless of the simplicity of semiconductor chip ventures, the need for working with fabs and uncontrollable time periods between testing cycles is a killer – every time you make a revision in design you have to wait for 4 to 12 weeks for a turn around – the wait is expensive. These ventures almost always need a lot more money – in these cases the market must be very very large and the innovation very very novel for the investors to engage early – SBIR grants are also often feasible.3- Situations where the time to revenue[...]
2007-10-04T15:53:44-07:00The Mobile market is HOT. At a conference in the valley (silicon that is), out of every three entrepreneurs I talked to two and half had the next big mobile application. The biggest idea is the next ubiquities operating system. A system that is running all mobile phones, allow transportability of applications, improves the development process of new applications, etc. etc.I had a conversation with one these operating system companies yesterday – the fifth or sixth company in the same space I have spoken to in the past couple of months. Naturally, each one has few strengths and some weaknesses and each one has some unique angle and approach. Without a doubt the idea is big and if one could become the standard operating system – the next DOS is conceived and the next Microsoft born – a very nice dream.What I found as common between all of the entrepreneurs I talked to was the underestimation of the power of the big OEM’s (Samsung, Nokia, and Motorola) in controlling their own operating system and the equal power of the carries (AT&T, Verison, Spring) in being the gate keepers of innovation and user adoption.Building an innovative technology requires hard work and very smart technologist, building a business requires getting to markets and selling and building a ubiquities operating system requires an acknowledgment of the power of the incumbent players. This is not to say that we should not dream big, but that we should address the very obvious barriers before we spend many many hours of hard work, refinance our house and expect VC’s to invest – dealing with disapp[...]
2007-10-04T15:52:48-07:00Speaking to entrepreneurs everyday has lead me to believe that most entrepreneurs really like to build a Life Style business and are not in tune with what motivates Venture Capital firms or Angels to invest.
2007-10-04T15:52:09-07:00These days almost every business plan has a viral marketing component to it.How do you get customers? Viral marketing to the rescue; there seems to be an “understanding gap”.I have made it a point in the past few weeks to ask every entrepreneur that brings up the issue “what do you mean by viral marketing?” The diversity of answers and interpretations are fascinating. The responses include, funny videos on Youtube, a page on Myspace, putting definitions on wikipedia, planned message board entries, and of course having a blog. What is interesting is that the definition of viral marketing is reduced to the channels of distributing a message vs. the message itself.To have a viral marketing campaign, you must first have a message that is viral and contagious like a virus, a message that contaminates others as soon as they hear it, to the point of passing it to others. 93% of all sales are initiated through word of mouth, and viral marketing is intended to ignite this process. BUT, the first question is do you have a compelling message, a compelling story a compelling product, and a compelling value proposition that deserves to be viral. The second question is how you communicate it to your potential customers (the channel).If you want to have a viral marketing program, the initial challenge is to figure out what is your contagious (viral) message (the virus), do people care hearing about it, are they impressed enough (contaminated) to pass it on (contaminate others). In the process, you must make sure that people are not alrea[...]
2007-10-04T15:51:22-07:00I got the following question from an entrepreneur and I thought I share it with everyone.“Why do many startups actually fail? In my observation, i have felt that there are many a startups which have a brilliant idea, a genuine team to execute that and also a good support for the product they intend to build, but still the companies fail to break even. I would love to hear from you your views on why startups fail? cheers, Vaibhav”There may be a thousand different reasons, but here is an attempt at simplifying a clearly completed question. Here is a stab at a few common reasons:1- Chemistry: often entrepreneurial teams fail to have the winning chemistry together ; it is a combination of reaching for perfection and greatness and ability to work together to compromise their way to success.2- Too much Brilliance: a lot of companies fail because the market is not ready for the innovation yet and the entrepreneurs focus on their vision as opposed to what the customer wants or needs – they continue to miss the mark by listening to themselves more than listening to those who pay. 3- Confusing Execution & Effort: a very typical problem in startups is that the team is genuine and genuinely believes that they are executing well, but they are not! Execution is not doing a lot of work. Effective execution is what bridges aspiration and results – simply put, if they were executing well, they would not fail! 4- Not Listening: I have seen this one hundreds of times, Entrepreneurs often think that their situat[...]
2007-10-01T06:25:00-07:00Awesome show at Sala Rossa last night. Extra points to Zach for holding most of the on-stage banter in very acceptable French. The boy's got raw talent oozing from his trumpet. Their new album is also slowly making its way into my list of favorites and might end up sitting up there with the first one.
2007-09-27T06:28:00-07:00It would be easy to explain the fact that Tungle yesterday were named DEMOgods at the DEMOfall conference by Marc's natural good looks and contagious charisma, or by Jacou's infectious smile and lightning-quick demo clicking...But I'd rather believe that the crowd were convinced by the innovation and functionality of a technology they feel will make their professional (and personal) lives a bit easier, and help solve the problem of wasted time and effort trying to coordinate meetings.Congratulations to the whole team !Check it out for yourselves (6 min. demo). The free Outlook plug-in and Tungle Spaces (web service) will launch as soon as some minor bugs are ironed out, with Google Calendar, iCal, and Lotus Notes integration coming soon, as well as some very reasonably priced premium features.By the way, the Tungle Blog is also quite worthy of your attention and RSS aggregation. Good stuff. Exciting times.[...]
2007-08-29T08:23:00-07:00This time from my A2M buddies...
2007-08-26T04:50:00-07:00For some time now, I have been wondering if Asia’s economic growth will create a large enough middle class to eclipse the United States as the primary export market it is today. I would often venture that at some point, there could be a major economic event which will bring a paradigm shift in the way that people perceive the US economy’s power. Now, I wonder if the current sub prime crisis and a potential coming US recession will create that event.First, some data I dug up: Developing countries in Asia imported around $1.4 trillion of goods in 2006, up from $0.5 trillion in 2002 – from the perspective of an exporter of goods any where in the world, that means that the market for imports into the emerging markets of Asia grew from around 43% of the US import market in 2002, to 77% in 2006 – almost doubling in relative size. If we count all of east Asia (including the more ‘developed’ markets of Japan, Singapore, Hong Kong and Taiwan), then that relative market size has increased from 117% of the US market in 2002, to 163% in 2006. (Should some body have been paing attention when the size of the Asian import market surpassed that of the US circa 2000? Or were we all caught up in our own post bubble trauma?)The Economist also noted recently that “China now takes 22% of the exports of the rest of emerging Asia, up from 13% in the late 1990s.” So Asian economies, heretofore characteri[...]
2007-08-24T05:36:00-07:00In the early 18th century, Britain ran a huge trade with China because of its insatiable demand for Chinese goods. It paid for all of these goods – largely tea and silk – with silver. According to this wonderful BBC program, the imbalance became so large that “China was referred to as the silver grave of the world, because every silver dollar that is minted would end up in China sooner or later.”At some point, the British had the brilliant idea of marketing more opium to China. As per Wikipedia:“In an attempt to balance its trade deficit Britain began illegally exporting opium to China from British India in the 18th century. The opium trade took off rapidly, and the silver flow began to reverse… when China attempted to enforce her laws against the trade, the conflict erupted.”.. thus the Opium Wars of 1840-1843 and 1856-1860.It’s too tempting not to draw a parallel with today, and wonder (with tongue lightly in cheek) about China as the new dollar grave of the world…Of course, in the 18th century, financial markets were not sophisticated enough for say, the Chinese to use the silver to buy shares in the British East India Company, or finance British government debt.Nor is Chinese military power in such a relatively weak position today…Nonetheless, I wonder if there if the Chinese leadership, famous for its long view of history, still has the Opium wa[...]