Mark Hendrickson
by Mark Hendrickson on October 21, 2009

Anyone familiar with internet startup culture knows how little capital it takes to start a tech company these days. With hardware and software costs practically nonexistent for most new companies, the main determinant of whether a promising startup will get underway and off the ground lies with the founders’ circumstances, namely whether they can pay off their personal bills from month-to-month and find a place to work.

This climate should produce an a important, long-term counterweight to the problems of our economy as a whole. While established corporations have been reeling, laying off workers and draining money from the federal budget, tech companies in high growth sectors have continued to sprout up with the promise of new jobs and services. And with costs so low, entrepreneurship – and its concomitant boon to the economy – these days relies overwhelmingly on one factor: the entrepreneur.

by Mark Hendrickson on September 25, 2009

It’s been a big week for European entrepreneurship, what with 20+ startups emerging at Seedcamp and Dopplr getting picked up by Nokia (or does it just feel that way since I’m here with GeeksOnAPlane for the first time in four years?).

In any case, Seedcamp’s six winners were announced earlier today. If you’re not familiar with Seedcamp, it’s a startup mentorship and funding program for European entrepreneurs that shares basic tenets with US-based Y Combinator and TechStars, among several others. I had the opportunity to sit down on Wednesday with Seedcamp founder Saul Klein and ask him about a variety of topics ranging from the idiosyncrasies of European entrepreneurship to Spotify, smart energy, and the real-time web. In addition to founding Seedcamp, Klein is a partner at Index Ventures and a founding partner at The Accelerator Group (TAG).

A transcript of the interview follows below.

by Mark Hendrickson on September 22, 2009

It would seem that tech startup culture – which extols the virtues of agility, cost-efficiency and risk-taking – should make strange bedfellow with the staid, inefficient, and downright corporate practice of federal governance that’s conducted from within the Beltway everyday. Many in the Valley also presume that their startup ecosystem would be best off if left alone by all three branches of government, lest they impinge on its ability to innovate and create vibrant new businesses.

However, at a GovTech meeting attended by GeeksOnAPlane in Washington, DC on Friday, administration and state department officials insisted that a sea change of sorts is occurring within the federal government, one in which our public officials have begun embracing both Web 2.0 technology and the management methodologies that have made it possible. The message from officials was that the Obama administration in particular is dedicated to leveraging new information technology for increased transparency and responsiveness, with the goals of enabling citizens to learn more about their government and make their voices better heard. Andrew McLaughlin, the administration’s deputy CTO, talked about turning the government into a platform that enabled “services at the edge”, with Data.gov and Apps.gov as first draft efforts towards this end. Interest was also expressed in how the administration might adopt startup techniques to drive innovation in how it governs, with Eric Ries explaining how the lean startup method can applied by government and Director of Citizen Participation Katie Stanton declaring that government is at its own “pivot point”.

by Mark Hendrickson on September 17, 2009

This past June I had the privilege of traveling to East Asia with a group of techies on a trip dubbed GeeksOnAPlane. The experience was a quick-and-dirty way to familiarize myself with the tech industries of Japan and China, since we were herded through back-to-back conferences and networking events meant to give us primers on a number of sectors such as web, mobile, and gaming (you can read about what I learned in each of those countries here and here).

I’m happy to say that the second GeeksOnAPlane trip will take me the other way around the world starting today. Our first stop will be in DC where we plan to meet with representatives from the White House Digital Media Group and the State Department Technology Innovation Team followed by an afternoon Startup2Startup lunch at the Washington Post. After that short layover on the east coast, we’ll jump the pond to attend Seedcamp in London and then the Picnic tech festival in Amsterdam. While I’ll be flying back home after Amsterdam, the rest of the group will continue to Berlin, Prague, Paris, and back to London for a series of other tech events such as Future of Web Apps and Ignite.

by Mark Hendrickson on June 18, 2009

After a whirlwind tour of East Asia with GeeksOnAPlane (see my assessment posts for China and Japan here and here), I’m back in the states and almost fully recovered from a potent bout of jet lag. I’m not complaining, however, since several other members of our group came down with a nasty stomach flu on the return flight. And one member, Mike Su of Break Media, actually got picked up by the Chinese authorities in Beijing on suspicion of swine flu, only to be stuck in quarantine for five days before getting cleared and released.

Mike, who had skipped the Tokyo leg of the trip and joined us in Beijing only a couple of days earlier, took his poorly timed incarceration in stride. Since he needed no real medical attention whatsoever (the officials nabbed him because he had sat two rows away from someone on the plane over who indeed carried swine flu), Mike was left to sit alone in a hotel room for days on end with just his thoughts and a computer. Finding nothing else meaningful to do, he decided to blog his entire experience for the rest of us to enjoy.

by Mark Hendrickson on June 14, 2009

This past Thursday, the GeeksOnAPlane group of traveling techies had the opportunity to attend Startonomics Beijing and learn about broad swaths of the Chinese web industry. The speakers, who represented companies such as Google China, Kong Zhong, Five Minutes and ChinaNetCloud, discussed topics such as gaming, social networking, network infrastructure and internet cafes. Overall, we were impressed not only by how massive the Chinese market for computing-related services is, but how fast it’s still growing as well.

According to Georg Godula, whose company Web2Asia helps internet companies get off the ground in East Asian countries, there are currently about 350 million internet users in China, many of which are very new. In 2008 alone, the internet population grew by approximately 80 million people. That’s an astonishing 220,000 per day, or 9,000 per hour. Most of these users are quite young, with a distribution centering around 18-24 years old. Since the number of users outstrips the number of computers, Chinese youth spends much of its time browsing the web and playing games in Internet cafes, particularly in less dense parts of the country where few alternative entertainment options exist.

by Mark Hendrickson on June 10, 2009

Over the last two and a half days – the short window of time within which the GeeksOnAPlane group has been staying in Tokyo – I’ve attended two industry events (Tokyo 2.0 and Startonomics Japan) and talked with those who live or do business here about how web technology in Japan differs from that in the US. And while this is enough time to gain only a superficial amount of insight into the Japanese tech scene, I’ve gotten the impression that things aren’t fundamentally that different from the way things are back home; there are just idiosyncrasies (albeit important ones) within the Japanese tech landscape.

by Mark Hendrickson on June 8, 2009

After attending a great Tokyo 2.0 event last night (more to come about that later), the GeeksOnAPlane group is now at Startonomics Tokyo, where we’ll be hearing about a broad range of topics pertaining to Japanese tech throughout the day.

Join us below as we watch the presentations.

by Mark Hendrickson on June 7, 2009

It’s been over three months since I wrote anything here on TechCrunch, but over the next 10 days or so you’ll be hearing more from me as I travel with a group of 32 techies through East Asia as part of GeeksOnAPlane, a field trip of sorts organized by Dave McClure intended to open our Western eyes to how the technology industry works in Japan and China.

The web as experienced by the biggest continent on the planet unfortunately gets short shrift on the blogs that regularly hit Techmeme. I personally can profess to have only cursory knowledge of the trends and companies that come out of Asia, and that knowledge consists mainly of echoes that get passed along by word of mouth. Sarah Lacy has done all of us a favor by recently reporting from China, but we can always use more to enlighten us about what’s going on across the Pacific.

by Mark Hendrickson on February 24, 2009

Ginx, the third-party interface for Twitter that makes it easier to share news with friends, has added a new feature that organizes experts into groups so you follow their ongoing commentary on your favorite topics.

Each group on Ginx is created and administered by a single owner who determines who the experts are in a particular field or category. For example, here’s a group of journalists who are focused on covering Apple news. It’s run by the user mirthlab and members include John Gruber and Arnold Kim.

Currently there are 11 groups in total on Ginx, and all of them are listed in this simple directory. The others include one about China and another about Arizona politics.

by Mark Hendrickson on February 18, 2009

The internet is full of all sorts of chatter. And some of that chatter might actually be about your brand. Wouldn’t you like to filter out the noise and hear what people are saying about it?

Enter Scout Labs, a SaaS dashboard that makes it easy to keep track of what people across the internet are saying about particular topics. The product, which we first reviewed in December 2007 while still in private beta, is now generally available.

by Mark Hendrickson on February 17, 2009

Today was the second day in the trial brought against popular torrent site The Pirate Bay by a phalanx of media companies formed by Universal, Warner Brothers, MGM, EMI, 20th Century Fox, Columbia Pictures, and Sony BMG.

So far the trial has amounted to a circus wherein the plaintiffs have struggled to make their case. According to them, The Pirate Bay has profitably caused over $13 million in damages by assisting copyright infringement and helping to make copyrighted material available. But they’ve done a lousy job presenting evidence that has been three years in the making.

by Mark Hendrickson on February 16, 2009

Boulder, Colorado-based startup incubator TechStars has decided to open a second office in Boston where it will run a concurrent mentorship program starting this summer.

The Boston program – which will probably be located in Cambridge – will accept the same number of companies (10) as the Boulder program, effectively doubling the number of TechStars companies admitted each year. Assuming application rates don’t rise dramatically, this will make it easier for companies to get into the program – especially if they’re willing to relocate to either city.

by Mark Hendrickson on February 16, 2009

Dawdle, an online market for resold games, consoles and accessories, relaunched this past Fall as a niche eBay competitor of sorts. It’s a place where gamers can get some money back on their old supplies, albeit not through auctions but a straightforward price listing and “buy it now” process.

After amassing a collection of about 5,000 unique items for sale across the site (but not yet amassing much traffic), Dawdle has decided to make things more attractive to independent, brick-and-mortar retailers who might want to sell their excess inventory online. In addition to simply listing your goods alongside everything else on Dawdle, individuals and stores alike can now set up their own virtual, branded storefronts. These are intended to help resellers cultivate their reputations onsite and hopefully ship more units.

by Mark Hendrickson on February 16, 2009

Nvidia has announced that it plans to power $99 mobile internet devices with its Tegra 600 series chips, perhaps as early as this summer.

What’s a mobile internet device (MID)? Well, it’s a gadget that fits somewhere in between a smartphone and a netbook. It’s compact and internet-enabled, but it can’t quite fit in your pocket or make phone calls. It’s primarily intended for web surfing and watching videos over a WiFi or 3G connection.

According to VentureBeat, Nvidia is touting both the long battery life and the HD video capabilities of these Tegra-based devices. General Manager Michael Rayfield says they can go for days without a recharge and they support 1080p HD video playback, which is the high end of what you’ll find streaming online.

by Mark Hendrickson on February 14, 2009

When NBC Universal and News Corporation-backed Hulu launched in Fall 2007, it was a signal that old television media might actually grasp the distributive power of the internet. Not only were great programs made available for free as streaming videos, users could grab and embed them anywhere online – in their entirety or just as clips.

So it’s a bit of a shame to see another giant media conglomerate, Viacom, buck this trend and actually clamp down on the embedding of videos from the MTV Network. Yesterday in a post to its developer blog, a staff member for MTVN developer services announced that video embeds would no longer be available through MTV’s API, starting sometime in early March.

by Mark Hendrickson on February 13, 2009

Update: We just got off the phone with IVP partner Todd Chaffee who says this round was actually in excess of $35 million. Apparently, $35 million is just the total of what Benchmark and IVP put in ($21 million and $14 million respectively), while the additional amount put in by Union Square Ventures and Spark Capital is still unknown. According to Chaffee, “Everybody wanted to protect their pro rata and then some.”

Biz Stone just announced on the official Twitter blog that Twitter closed a third round of funding led by Benchmark and Institutional Venture Partners last night. We have confirmation from IVP that the round was $35 million, and that Union Square Ventures and Spark Capital also participated. The news gels with our report last month that Twitter was raising a new round at around a $250 million valuation following Facebook’s failed attempt to acquire the company, with IVP as one of the leading investors.

Stone says the company was not actively looking for additional funding because they haven’t burned through all of the money from the last round. But he was impressed by both of the VCs who led the round (and presumably also impressed by some very favorable terms).

This is the first time either Benchmark or IVP have invested in Twitter. Union Square Ventures participated in both the Series A and Series B as well, while Spark Capital first joined for the Series B. For more information about Twitter’s funding history, refer to its CrunchBase profile. As part of this Series C deal, Peter Fenton from Benchmark will be joining Twitter’s board of directors.

by Mark Hendrickson on February 13, 2009

At the beginning of last December, Ning reversed course on its anything-legal-goes policy by declaring a prohibition on adult social networks. The reason? Porn wasn’t paying the bills; instead of attracting advertisers, it was scaring them away. Legal adult content was also begetting illegal content, which drew the ire of both authorities and lawyers with DMCA notices in hand.

Given the report released by CPM Advisors at the beginning of 2008, which suggested that Ning relied on adult content for much of its traffic, one might expect Ning to take a hit after shooing the smut out the door. But according to comScore traffic from January, that hasn’t been the case at all.

by Mark Hendrickson on February 12, 2009

This past December we reported on how Facebook was coming up on Blogger to steal its top spot among social media sites when measured by total unique visitors worldwide.

Now, it appears as though Facebook has finally done it. Data from comScore, which unfortunately goes only through December 2008, shows how Facebook’s visitors (221 million) basically matched Blogger’s (225.5 million) by the end of the year. That’s a gap of just 4.5 million versus the gap of 21 million that existed in November. Assuming Facebook’s upward trend continued in January (and Blogger’s remained flat), the social network sits on top of the roost now.

by Mark Hendrickson on February 12, 2009

The Scene, a new social network geared towards improving your nightlife, is making its public debut at the Twiistup 5 event in Santa Monica, CA today. After three months in beta, the company is announcing the seed round of funding it raised from Velocity Interactive Group and angel investor Marko Babic. An iPhone application (for when you’re stumbling around the streets at 1:00am looking for the next bar) has also been released.

The Scene has a strong “let’s go out to a club and get drunk” vibe to it (not that there’s anything wrong with that). But it makes me wonder how many people who have this urge will actually boot up their computers and start planning out the best way to go about it, let alone carry the iPhone app around in their pockets and post updates to the site as their nights go on.

by Mark Hendrickson on February 11, 2009

I met up with Randy Ching, co-founder of Ginx alongside eBay founder Pierre Omidyar, this afternoon to finally get a glimpse of what their secret startup is all about.

We first wrote about Ginx last month when it was revealed that parent company Peer News had raised $2 million in funding. At the time, we could only infer its purpose from Omidyar’s twitter account, which was hooked into Ginx somehow.

Now we know that it’s basically an interface for Twitter on steroids. Ching explains that the most fundamental purpose behind Ginx is to help people share news and other content over the internet. Citing the figure that 20% of all tweets contain links, Ching says that Ginx was built to make better use of them, to encourage more sharing of links, and to connect people who didn’t know each other already along the way.

by Mark Hendrickson on February 11, 2009

When online retail service WujWuj first launched, it focused on helping people pool their money to buy gifts for friends and family. That never really took off, so the service was shut down and is now being reborn with new focus on so-called “group buys”.

A group buy is a type of sale in which the price of an item drops as more people commit to purchasing it. Consumers benefit from lower prices as more people commit, and retailers benefit from an increase in sales volume. Essentially, it’s a way for retailers to incentivize their consumers to market their goods for them, because customers will be inclined to spread the word about deals.

WujWuj CEO Monti Majthoub tells me that most group buys are currently organized in online forums like FatWallet and AnandTech. His new GroupBuy system adds more structure and “viral” potential to the process by leveraging the power of widgets.

by Mark Hendrickson on February 11, 2009

Yahoo is announcing several changes to its Search BOSS service, which lets developers incorporate web results from Yahoo’s main search index into their own web apps. The biggest of these changes intends to transform one of Yahoo’s most innovative projects into a real business.

Since launch, the BOSS API has been provided entirely for free. Now Yahoo is putting in place a freemium model where it’ll be free only for developers who generate fewer than 10,000 queries per day. After that, a tiered pricing model will kick in that charges for BOSS as if it were a utility (think AWS). Rates will vary depending on the type of query (web result vs. spelling correction, for example), how many results the developer wants returned per query (with a new maximum of 1000 results), and just how far the developer goes over the free queries cap. The pricing scheme is also backed by a newly introduced service level agreement.

by Mark Hendrickson on February 11, 2009

Google appears to have a new obsession with knowing and broadcasting your current location. A week after announcing Latitude, which shares your location with friends on Google Maps and threatens to render several startups irrelevant, an engineer has developed location-aware email signatures for Gmail.

After turning on the “Location in Signature” feature in Gmail Labs, you’ll see a new checkbox in the Signature area of your settings that says “Append your location to the signature.” Once the box is checked, all of your subsequent emails will end with something like “Sent from: San Francisco, California”.

by Mark Hendrickson on February 10, 2009

This could be good news for the music industry, which suffers from steadily declining record sales and stands to benefit from more ticket sales for live performances. Or just another last-ditch measure to save itself from an inevitable death and rebirth.

According to Paidcontent, Live Nation and Ticketmaster have entered into a definitive agreement to merge into an entity called Live Nation Entertainment.

From the release:

The companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $2.5 billion. Under the agreement, Ticketmaster shareholders will receive 1.384 shares of Live Nation common stock for each share of Ticketmaster they own, subject to certain adjustments defined within the agreement. Live Nation and Ticketmaster shareholders will each own approximately 50 percent of the combined company. The new company anticipates generating approximately $40 million of operating synergies through the combination of their ticketing, marketing, data centers and back-office functions.

Ticketmaster specializes in online ticketing whereas Live Nation focuses on concert promotions. They will still have to go through regularly review before the merger can be completed, and as Paidcontent points out, there will be those in the music industry that create stiff resistance to this consolidation of power (especially with Ticketmaster’s reputation for monopolizing ticket sales on its own).

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