Archive for March, 2009

Paying Libya For Links

Tuesday, March 31st, 2009

Libya — until recently, listed by the U.S. for its role in international terrorism — is the “.ly” for web URL shortening service Bit.ly, which just scored a recent venture round.   The service–used by people to make their links shorter, for inclusion in email messages, Twitter posts, etc.– just raised $2M from O’Reilly Alphatech Ventures and a number of high profiles Silicon Valley angels. We’ve talked with many companies trying to use these lesser known top level domains before (ie, Chi.mp is using the Commonwealth of the Marianas Islands, .mp, and the ubiquitous .tv domains you see around here are really domain names from Tuvalu–another Polynesian island.) But really, it seems like you might be just a LITTLE bit nervous about investing $2M in an an address owned, ultimately, by Moammar Qadaffi.

Everybody knows you’re a dog on the Internet

Friday, March 27th, 2009

Remember that famous New Yorker Cartoon, i.e. “On the internet, nobody knows you’re a dog.” ?

The cartoon, published in 1993, showed two dogs sitting at a computer with one at the keyboard, illustrating how–at least back then–it didn’t really matter who you were, you could be anyone you wanted online.

I think there’s a noticeable, striking difference today,  in the world of Facebook, Twitter, et al. The Internet — before the social web — was a fairly anonymous place. When you posted messages on a mailing list, it wasn’t your name (or often, your alias) which counted, it was what you said in your message. In a myriad of ways, it was what you did–rather than who you knew, how you looked, or who you associated with that mattered.

Today–particularly with the social web–it’s more about who you’re linked with, your “friends”, your latest video/photo, what clique you hang out with, what your political opinions are, where you went to school, etc.–an almost 180 degree turn from the once-anonymous Internet. Today, they not only would know that you are a dog, they would know you were a border collie, where you went to obedience school, that you were a fan of Cesar Milan, that your mother was a poodle, your birthday, your ten best friends, if you liked dry or wet dog food, your favorite spot to “mark” territory, how often you went on walks, and who you happened to sniffed out walking.

Now, you might not care, or perhaps, you like all of that social interaction and collaboration. But this is why I mourn the loss of that anonymity: there’s been a loss of the power of merit, intelligent dialogue, and substance in exchange for high school level superficiality. It seems, things which shouldn’t matter (are you male, female — black, white, asian, whatever — disabled, able — Republican/Democrat)–have been thrust into the forefront of the dialogue. So, instead of people paying attention to the substance and facts, it has, sadly, often retreated back to “do you look like/think/dress like me, do you have the same friends as me and hang out with the “cool people” and therefore should I value your opinion?”

I recall a conversation with a very smart, knowledgable friend–who also happens to be physically big, intimidating, and of Middle Eastern descent–about his objections to posting a photo of him on the Internet. I have talked with females who are extremely careful about their online networking because the high level of inappropriate comments and pick up attempts. I wonder about the personal information — things that HR departments and employment attorneys would cringe about if they were asked on an employment form — spread out on Facebook or elsewhere for everyone to see.

Sure, there’s lots to be said for this new social world. And, maybe I’m just being grumpy because I’ve always hated social cliques and “popularity”. But it seems like we’re losing some of the most empowering attributes of the Internet with the social web — anonymity,  color-blindness, valuing intellectual merit of ideas, and the weighing of substance over style.

Panel: Working through the downturn

Wednesday, March 25th, 2009

For anyone who might care, I’ve been called as a last minute, pinch hitter to moderate the SoCalBio panel Working Through the Downturn: Tips for the Bioscience Industry as Obama’s Stimulus Package Takes Effect tomorrow night (Thursday). The panel is up in Oxnard/Ventura. It should be interesting to hear how the bioscience industry is coping with the economy.

A conference where no one will be paying attention

Wednesday, March 25th, 2009

I had to laugh when I saw that a group is putting together a conference all about Twitter, the micro-blogging/messaging service. 140 The Twitter Conference says it is “the place where developers, business people, and enthusiasts converge to find innovative ways to tap into the Real-Time Web.”

Having been to enough technology conferences which aren’t about Twitter, but where 90% of the participants in any particular panel or session seem to be Twittering away about the conference (or reading email on their Blackberry, etc.), I wonder if anyone will actually pay any attention at this one?

Last chance to apply for Technology Awards

Tuesday, March 24th, 2009

Just a heads up for anyone thinking about applying to the Technology Council of Southern California’s annual Technology Industry Awards. Tomorrow is the last day to apply. Categories this year are:

Individual Categories:

  • CEO of the Year
  • Entrepreneur of the Year

Company Categories:

  • Software Company of the Year
  • Hardware/Storage Company of the Year
  • Internet/New Media Company of the Year
  • Entertainment/Gaming Company of the Year
  • Mobile/Communications Company of the Year

We’re a sponsor of the awards, which are a great opportunity to get some recognition for your company.

Southern California’s place on “Innovation Map”

Thursday, March 19th, 2009

There’s been a lot of attention lately given to a McKinsey & Company study of “innovation hubs” –  cities and where the fit in terms of innovation, creation of new companies, etc. There was no mention of Southern California in the map, but recently, they updated their charts and you’re now able to see that San Diego, Orange County, and Los Angeles are three of the clusters approaching the environment of Silicon Valley. All three counties sit on the edge of becoming “dynamic oceans” which McKinsey says consist of “large and vibrant ecosystems with continuous creation and destruction of new businesses.”

I’ve crudely marked up their graphic with the locations of Southern California’s clusters; you’ll note that all three are practically overlapping with San Francisco and Boston.

Southern California: Sports startup central

Wednesday, March 18th, 2009

Maybe it’s because of the upcoming NCAA tournaments, or maybe it’s just because of Southern California’s great weather–but looking over some of our recent coverage it seems like we’re developing quite the list of sports related companies:

There’s probably more, but it seems like there are more than just a handful here.

You’re not asking for enough money

Tuesday, March 17th, 2009

I often run into entrepreneurs looking to raise their very first round of capital (whether that is angel funding or venture capital), and I find there’s a common mistake new entrepreneurs make: they don’t ask for enough money.

Wait a second–you say they’re not asking too much, they’re asking too little?  Yes, lots of entrepreneurs are looking to raise too small of an amount of  money–at least in terms of what angel investors and venture investors are concerned. Many angel investors, venture capitalists, and others who have raised money or help companies in the technology industry tell me the same thing, and in fact tell every entrepreneur they see the same thing.

Going to an organized angel group or venture capitalist, and asking for $50,000, $150,000, or even $250,000 is probably too little. Angel groups probably wouldn’t start looking at investing in your company until you need $500K, and venture capitalists probably not until you’re asking for $2.5 to $5.0M (and maybe more). Why is this? It’s simply an issue of efficiency. The number of investments any firm would have to track if they were only making small $250K investments; for a $500M venture capital fund, that would be an astronomical number of little bitty companies they would have to watch, have an observer or board member on, or otherwise pay attention to. Even angel investors would rather give a chunk of money to a company, and let them run, rather than have that company come back in three months begging members for more capital.

So what do you do if you need $50,000 to get your company off the ground? Well, unfortunately, you’re either stuck hitting up friends and family; mortgaging your house; finding a rich uncle; or maybe finding an individual angel with interest in your company. Or, figure out how you can bootstrap yourself through consulting or something similar. Or, maybe figure out how you could use a larger amount of capital, so that you are big enough to hit the radar of the more traditional financing sources.

Win a free ticket to the Third Annual IMA Conference in Las Vegas

Thursday, March 12th, 2009

Interested in winning a free ticket to the Internet Merchant Association’s
conference in Las Vegas? (worth $599)? The Internet Merchant’s Association conference is focused on the e-retail marketplace.  Find out the three keys to thriving, not just surviving in this economy.

Just email us at info@socaltech.com with your name, email, and contact
information! Paid members of socalTECH get two entries, everyone else,
one.

You can read more about the conference (running March 16 to March 18 at
the Sands Expo Center) at:  http://www.imalasvegas.com.

Google is the next Microsoft

Thursday, March 12th, 2009

A few years ago, there was a pretty standard question that investors would ask startup entrepeneurs looking for money: What happens if Microsoft decides to get into your market? The question today seems to have shifted, rightly so, to: what happens if Google gets into your market?

Last night, Google announced Google Voice, a voicemail transcription service, which goes head to head against a lot of startups. We covered the threat to local startup YouMail, this morning. But, there are lots of other startups who also are threatened by Google’s new offering. (Another local company affected by this is FreeConferenceCall, which offers free conference calling services–also a new offering in Google Voice).

It used to be that Microsoft would enter into, and dominate markets, using the huge revenue engine that was Microsoft’s operating systems (first, MS/DOS, then Microsoft Windows, and now, some combination of Windows/Microsoft Office/etc.). How they would do this was they would use either the power of bundling, or just the sheer ability to fund businesses and projects with those revenue engines until all the competition went out of business or sold. (anyone remember Visicalc? Wordperfect?)

It seems like we’re now seeing the same with Google, which is taking its dominance (and again, revenue engine) and using that to fund lots of projects as loss-leaders, with potentially huge impacts on startups in the sector. There’s now countless sectors which are not viable areas for startups, because of free, subsidized offerings from Google.

How will you react if Google enters your market?