Archive for the "Web 2.0 News & Ideas" Category
by Erick Schonfeld on October 3, 2009

A few days ago, Seesmic CEO Loic Le Meur (@Loic) sent out a retweet with a link to a screenshot of his CTO’s Seesmic Web client showing 1,200 Tweets across nearly 20 columns. The joke was that his CTO was trying to achieve a “world record” for how many Tweets could be loaded up into a Twitter client at one time. (It’s not a world record. Competitor TweetDeck can display an unlimited number of Tweets and columns as well). If you click on the screenshot and pan across the enlarged version of it, there you’ll find a dialog box with Loic’s old avatar doing a hang-10 while kite surfing. The juxtaposition is comical, if a little sad—poor @Loic lost in the overflowing stream of Tweets his company is trying to tame.

The image reminded me of another screenshot (see below) that I once took of an earlier Twitter client called Twhirl, which Seesmic bought before developing its current product. About a year and a half ago, I complained that Twhirl took over my desktop when I first installed it with a constant stream of pop-up messages. I wrote in that post:

This highlights a bigger problem with the Web today. There is too much to pay attention to and not enough ways to reduce the noise.

It’s 18 months later and the problem hasn’t been solved. The screenshot I took back then still resonates because the noise is worse than ever. Indeed, it is being magnified every day as more people pile onto Twitter and Facebook and new apps yet to crest like Google Wave. The data stream is growing stronger, but so too is the danger of drowning in all that information.

by Erick Schonfeld on October 2, 2009

The value of venture-backed exits (which is almost entirely M&A these days) might be down about 50 percent in the third quarter, but total M&A activity (including public companies) is seeing a noticeable uptick.

We ran some numbers on Crunchbase, which keeps track of all announced acquisitions, and in the third quarter $31.8 billion worth of acquisitions were announced, double the amount from the second quarter and up fourfold from the $7.6 billion low in the fourth quarter. That number was even up 23 percent from the year before.

by Guest Author on October 1, 2009

This guest post was written by San Francisco Mayor Gavin Newsom, who was elected to the position in 2003 and reelected in 2007. Newsom is also running for governor of California in the upcoming 2010 election. In this guest post, Mayor Newsom announces a contest to create apps using city data from DataSF.org,.

Last week, we announced a City App Store to highlight and centralize software applications developed from government data available on DataSF.org. The response from the community has been overwhelming.

We have received a number of new civic apps that are now featured in the DataSF App Showcase. We’ve added Mom Maps, a new iPhone app that helps you find kid friendly locations in San Francisco, Dadnab a text messaging service that gives you transit directions, and then there’s EveryBlock, which has just added a new feature. The site breaks down what types of services people are requesting from the city by neighborhood, zip code and day.

This type of innovation is exactly what we were hoping for when we launched DataSF.org less than six weeks ago.

We were not sure what people would create with the data, but we knew that many of our talented developers wanted to help improve San Francisco. Now, our community is coming together to help fill our app store with even more civic apps.

The Center for Investigative Reporting’s California Watch reporting team, Spot.Us, Craigslist founder Craig Newmark, MAPLight.org, the Gov 2.0 Summit, Sun Light Foundation and others are announcing today that they are joining forces to sponsor the first DataSF App Contest on Nov. 7.

by Erick Schonfeld on October 1, 2009

Despite a couple large IPOs (LogMein and A123Systems) and a steady but tempered flow of mergers and acquisitions, financial exits for venture-backed companies remained anemic in the third quarter of 2009. Data released by both Dow Jones VentureSource and the National Venture Capital Association/Thomson Reuters show declines in both M&A and IPO dollars. VentureSource counts $2.9 billion in combined M&A exits in the third quarter, 49 percent lower than a year ago. The NCVA tallies up a $1.8 billion total, which is down 46 percent.

The two organizations have different sets of data, but they show similar trends. For example, VentureSource counts only the two IPOs mentioned above, whereas the NCVA also counts Cumberland Pharmaceuticals. That’s down from five venture backed IPOs in the second quarter.

by Guest Author on September 25, 2009

Editor’s note: This guest post is written by Shelby Bonnie, the CEO of Whiskey Media. He co-founded CNET in 1993 and was the Chairman and CEO from 2000 to 2006. He served as Chairman of the IAB from 2001 to 2003.

OK, Advertising Week just ended… does anyone else feel like the online advertising industry is the orchestra, playing on while the Titanic is sinking?

We have a problem, folks. And I, for one, think we should start to fix it by killing off the CPM, once and for all.

I have been in the Internet media space for 16 years and will start by stating the obvious: The CPM has done more to stunt innovation and drag down quality products than any single thing on the Internet. Maybe it works in other mediums, but it sure as hell doesn’t work on the Internet. Having been both a small and big publisher (now small again), it’s been my experience that the collective focus on CPMs and counting eyeballs by marketers, agencies, and publishers has led to a whole mess of unintended consequences that have produced a series of “solutions” that work for none of those parties. And perhaps more importantly, it’s been terrible for users.

All campaigns start with the best of intentions: “let’s do something creative, engaging, and unique!” But unless someone really senior from the agency or client side intervenes, the road for a campaign always leads to the media buyer and the dreaded spreadsheet, where the two most important columns are impressions and cost. Ironically, there’s usually some good stuff in campaigns, but they are thrown in for free as “value adds.” At some point, publishers decide that if all clients care about is impressions, then OK, we’ll give them impressions. The output is an industry that overproduces shallow, superficial, commoditized impressions. Why do we have so many bad sites that republish the same junky content–content that’s often made by machines or $1-per-post contractors? Why do sites intentionally try to get us to turn lots of pages with tons of top 10 lists, photo galleries, or single-paragraph summaries of someone else’s story?

by Erick Schonfeld on September 25, 2009

What do entrepreneurs want from venture capitalists? A new Cornell study by Ola Bengtsson (now an assistant professor of finance at University of Illinois Urbana-Champaign) and Frederick Wang looked at the stated preferences of entrepreneurs as expressed in comments and ratings on VC-ranking site The Funded. The study, which is based on opinions from roughly 1,500 entrepreneurs about 526 U.S. venture capital firms, tries to assess what they value the most from VCs.

In general, entrepreneurs view independent venture capital firms more favorably than strategic, corporate, or government VCs. They do a pretty good job of identifying which VCs have the best track record (which Bengtsson checked against VentureEconomics data), but just because a VC has a good financial track record doesn’t mean he or she will be the most helpful. And one of the things entrepreneurs value the most from a VC is quick feedback (positive or negative) when they are doing due diligence because time is money, and startups don’t have much of either.

Bengtsson shares some of his conclusions:

by Erick Schonfeld on September 24, 2009

There is no question that mobile browsing is taking off. The latest data from Opera shows that nearly 32 million people used its Opera Mini mobile browser in August, 2009, a 147 percent increase over the year before. In terms of pageviews, Opera Mini delivered 13.9 billion last month, a 235 percent annual increase. That means that each person is loading 436 pages a month on their cell phones, or 14 a day. A year ago, Opera Mini users were uploading 323 pages a month, or 10 a day. So both the number of people browsing on mobile phones and usage is going up.

But is Opera Mini the “world’s most popular mobile browser,” as Opera claims in a press release? What about the mobile version of Safari, which is the only browser allowed on the iPhone or iPod Touch. Apple has sold a total of 50 million iPhones and iPod Touches (30 million iPhones, and 20 million Touches), which both come with the Safari mobile browser.

by Erick Schonfeld on September 20, 2009

Many of the widgets scattered across the Web are made in Flash, but Adobe doesn’t participate in the widget economy. Today, it is taking a first tentative step towards changing that with the release of a new Distribution Manager for widgets created on the Flash Platform. In addition to making it easier for people to share the widgets across 70 Web and mobile destinations, it will track their usage, and serve as a widget ad network as well.

Adobe is obviously interested in getting into the advertising end of the business, which is why it recently announced it is acquiring Omniture for $1.8 billion. Rather than just getting paid once for the tools to create Web apps and content, it wants to get a piece of those recurring advertising dollars too. The widget distribution play is along the same lines, except that for now Adobe is doing it through a partnership with Gigya, the widget distribution and advertising network. What that means is that any money Adobe makes will be split more ways, but in return it achieves faster entry into the market.

by Erick Schonfeld on September 20, 2009

The S&P 500 is up 58 percent from its lowest point last March, the worst of the economic recession seems to be behind us, and even perennial stock market bear Jim Grant is calling for a barn-burner of a recovery, yet predictions of the next stock-market crash are already here. And you can find them on Twitter. Individual traders love to talk stocks on Twitter so much that they have given rise to a whole offshoot service, StockTwits. In fact, some argue that Twitter is becoming a pump-and-dump playground. But it is really no different than the Internet stock boards of old, which mixed honest financial discussion with attempts to manipulate the market with misinformation.

Either way, traders are flocking to Twitter because if there is one area where real-time information is really valuable, it is in trading stocks. The question is, who do you trust and who should you listen to? There are countless stocktwits who are now being joined by more professional prognosticators. One is BAM Investor, which markets its financial model to hedge funds. BAM stands for Behavioral Analysis Of Markets. It uses fractal theory (and the Fibonacci sequence!) to predict emotional mood swings in the market.

About five days ago it predicted that the current stock market rally would crash by 50 percent. It also thinks that Crude Oil is heading down to $56/barrel. But it is bullish on natural gas, predicting a 400% “melt-up”.

by Erick Schonfeld on September 17, 2009

You’ve heard of Deep Blue, the IBM computer that bested Gary Kasparov in a chess match a decade ago. Now, there is Deep Green, a robot that plays pool. And by the looks of the demo video above, it can’t lose.

As Delicious founder, and now-Googler, Joshua Schachter points out, it is “only a matter of time before one of these kills a person.”

Deep Green is a project out of the robotics and computer Vision lab in Queens University. They are also working on an “augmented reality” version of pool that lines up your shot with lasers. This is also known as cheating.

(Video after the jump).

by Guest Author on September 9, 2009

Editor’s note: With all of the debate lately between RSSCloud versus PubSubHubbub, we wanted to hear from a developer who could actually tell us which one might be better and why. The following guest post is written by Josh Fraser, the co-founder of EventVue, who is an active contributor to PubSubHubbub in his free time. He has contributed several client libraries for PubSubHubbub including a WordPress plugin. Guess which side of the debate he falls on.

In the past few months, a lot of attention has been given to the rise of the real-time web. The problem is that the web wasn’t designed with real-time in mind. There is a huge need for the tech community to get behind new protocols that will power this fundamental shift in how web applications work. Today I want to take a look at two of the leading protocols that enable real-time notifications on the web. While there are older protocols that enable real-time notifications like XEP-0060, PubSubHubbub (PuSH) and rssCloud are two new protocols which show a lot of promise of gaining adoption.

Both PuSH and rssCloud address a fundamental flaw in the way web applications work today. Currently, getting updates on the web requires constant polling. Subscribers are forced to act like nagging children asking, “Are we there yet?” Subscribers must constantly ping the publisher to ask if there are new updates even if the answer is “no” 99% of the time. This is terribly inefficient, wastes resources, and makes it incredibly hard to find new content in as soon as it appears. Both protocols flip the current model on its head so that updates are event driven rather than request driven. By that I mean that both protocols eliminate the need for polling by essentially telling subscribers, “Don’t ask us if there’s anything new. We’ll tell you.”

But if you find yourself confused about how they are different, you’re not alone.

by Erick Schonfeld on September 8, 2009

When it comes to lists of top VCs, one of our favorites is the top VC bloggers. Larry Cheng, a partner at Fidelity Ventures, started keeping just such a list last May, based on how many subscribers each VC blogger has on Google Reader. This morning he updated his VC blogger leaderboard. The top 20 are below, all 100 are on his own blog, Thinking About Thinking (No. 71).

These rankings obviously do not correlate with venture returns, but they are one measure of who are the most interesting VCs. Guy Kawasaki and Fred Wilson kept their No. 1 and No. 2 spots on the leaderboard, but Benchmark’s Bill Gurley made a big move from No. 9 to No. 3. That pushed most everybody else down a notch. Dave McClure made his debut on the list at No. 13. And Peter Rip moved up 37 spots to No. 15.

(Leaderboard after the jump):

by Erick Schonfeld on September 7, 2009

In July, AOL Instant Messenger (AIM) embraced the stream in a new beta (for both Windows and Mac) and started moving beyond simple IMs. You can now see your Facebook and Twitter feeds, along with AIM buddy updates and feeds from other services.

The problem was that the Twitter and Facebook feeds were only one way. You could read them, but you couldn’t send updates from AIM to the other services. A few weeks ago that changed, and AIM status updates can now appear as updates in Facebook and Twitter as well.

by Erick Schonfeld on September 7, 2009

One of the most exciting, gee-whiz features being developed for mobile phones right now are augmented reality browsers. Rather than fire up a mobile Web browser like Safari or Opera, these generally add an information layer over the world as seen through your phone’s camera lens. Last year at TechCrunch50, Tonchidot’s Sekai Camera wowed the crowd with its AR browser demo, Layar is creating a lot of buzz in Europe, and this summer AR technologies finally started to hit the market. You had Yelp sneak in an AR feature into its latest iPhone app, and a growing number of Android apps are embracing AR as well.

We are at the very early stages of what may very well become a common interface for mobile browsing, which means that it is still very primitive. You can only click on buildings or objects within your immediate view. Daniel Wagner, a virtual reality researcher at Graz University of Technology in Austria, is proposing two ways to make AR browsing better: panoramic and bird’s-eye zooming.

by Erick Schonfeld on September 7, 2009

Industrial robots are nothing new, but they are getting more and more sophisticated. Watch the video above of the swarming robot warehouse pickers made by Kiva Systems. They are like orange industrial Roombas that go out and find inventory in a warehouse and bring it back to human workers to pack for shipping. Don’t fear them. Really, they are just here to help.

Zappos and Staples use the systems, which are dispatched and controlled by a central computer, and can also detect each other to avoid collisions. (Video after the jump).

by Vivek Wadhwa on September 7, 2009

Editor’s note: This guest post is written by Vivek Wadhwa, an entrepreneur turned academic. He is a Visiting Scholar at UC-Berkeley, Senior Research Associate at Harvard Law School and Executive in Residence at Duke University. Last week, he wrote about the need to lift restrictions on H1-B visas. Follow him on Twitter at @vwadhwa.

I’ve got a message for all the Silicon Valley venture capitalists who think a CEO is over the hill after age 40. Old guys rule. And they are far more likely to be the founder of a successful technology company than most of you understand. How do I know this? Research that my team conducted, based on a survey of 549 entrepreneurs in high-growth industries, showed that the average founder of a high-growth company launched his venture at age 40. We also learned that these founders are likely to be married and have two or more kids. They typically have six to ten years of work experience and real-world ideas. They simply got tired of working for others and wanted to rise above their middle-class heritage.

These clearly aren’t the talented 20-somethings who have “great passion” minus the “distractions like families and children…that get in the way of business” which Sequoia Venture’s Michael Moritz raves about (also in this Building 43 video). Or the ”very low paid” young entrepreneurs who, according to Google’s Eric Schmidt, make “all the right things happen” by “working themselves to death”. But these are the companies which Silicon Valley VC’s seem to flock to. And maybe that’s one reason why the failure rates of VC investments are so high.

by Erick Schonfeld on September 4, 2009

What’s the deal with Comcast, Verizon, and other ISPs petitioning the FCC to lower the definition of broadband? It’s all about money—broadband stimulus money—MG Siegler explains on G4’s Attack of the Show.

As the Obama administration looks to expand broadband access to rural and urban areas that are still under-served, the ISPs want to lower what constitutes broadband so that they can get some of the billions of dollars in stimulus money without shelling out as much to actually deliver the broadband access the stimulus package is designed to create.

Those phone and cable companies are tricky. Watch the video after the jump.

by Erick Schonfeld on September 4, 2009

In most cities across America, Walmart has replaced Main Street as the place people go to do their shopping and mingle with each other. But what is it about Walmart that brings out the—how do I say this delicately?—fashion-challenged freaks. I am talking about people who cover themselves in cheetah-print garb or worse, Easter eggs and bunnies. They are a tiny sliver of the people who go Walmart, but they are fascinating in a human train wreck kind of way. You want to avert your eyes, but you can’t stop looking.

A satirical site called People of Walmart now lets you stare to your heart’s content without actually stepping inside a Walmart store. People can submit photos of the strangest people they encounter in Walmart. (Pics after the jump).

by Guest Author on September 4, 2009

Editor’s note: The following guest post is by Tim O’Reilly, the founder and CEO of computer book publisher O’Reilly Media and a conference organizer. O’Reilly coined the term Web 2.0 five years ago. Now he is arguing it is time for Gov 2.0, and has helped organize a summit next week to talk about what that might mean.

Today, many people equate Web 2.0 with social media; three or four years ago, they equated it with AJAX applications and APIs. Many are now starting to think it’s all about cloud computing. In fact, it’s all of these and more. The way I have always defined Web 2.0, it’s been about what it means for the internet, rather than the personal computer, to be the dominant computing platform. What are the rules of business and competitive advantage when the network is the platform?

So too with Government 2.0. A lot of people equate the term with government use of social media, either to solicit public participation or to get out its message in new ways. Some people think it means making government more transparent. Some people think it means adding AJAX to government websites, or replacing those websites with government APIs, or building new cloud platforms for shared government services. And yes, it means all those things.

But as with Web 2.0, the real secret of success in Government 2.0 is thinking about government as a platform. If there’s one thing we learn from the technology industry, it’s that every big winner has been a platform company: someone whose success has enabled others, who’ve built on their work and multiplied its impact.

by Erick Schonfeld on September 1, 2009

Either Vinod Khosla has the magic or institutional investors are easing back into venture capital, or both. His Khosla Ventures raised $1.1 billion for two new funds, with about $800 million going to Khosla Ventures III and $275 million for a new seed fund.

Taken together, the $1.1 billion is the biggest capital raise for a venture firm in two years, and if you count it as a first-time fund, it is the biggest capital raise in ten years. While these are technically the third and fourth funds managed by the firm, it is the first time Khosla Ventures is taking outside money. (CALPERS, the retirement fund for California state employees, is the biggest new limited partner). Up until now, the capital primarily came from Khosla himself, who is a billionaire, a former star partner at Kleiner Perkins, and a co-founder of Sun Microsystems.

He founded Khosla Ventures in 2004, and now the firm has eight partners. The firm also confirmed today that former Facebook CFO Gideon Yu is now a partner (you read it here first), as is new hire James Kim from CMEA Capital.

bugbugbug