Category Archives: Money

New Online Social Network Offers Revolutionary WEshares(tm) to its Members

What do you get out of online social networks? Probably nothing more than just that: Online social networking. A multi-billion dollar corporation is allowing you to communicate with others while using all your information to make huge profits. Not only are you helping them make loads of money from advertising, but you are guaranteeing that a few people make a lot of money off your efforts.

ExpatOdyssey.com is a new online social network that goes against this business model. We also want to make a few bucks, but we want you to share in the success. We want to share something sustainable, unique, and revolutionary. ExpatOdyssey wants to give you more than a few pointless prizes or vouchers. Let us help you help yourself!

You’re probably wondering how this works because it sounds a little too good to be true. Simple. You become a member and use ExpatOdyssey to do what you usually do on online social networks. However, this is the point at which ExpatOdyssey.com is completely different. You are also an actual owner. The moment you sign up, you are awarded WEshares(tm). You are contributing to the website by being a member, so you deserve a reward. Every time you upload photographs, invite friends, create forums, or any one of the innumerable things you can do on ExpatOdyssey, you accumulate WEshares(tm). Like shares in a company, they represent what percentage of ExpatOdyssey.com you own.

Carlo Jacobs, Founder of ExpatOdyssey.com comments: “When the Occupy Wall Street movement began, my wife and I decided that the time was finally right for a venture that included and benefitted everyone, the 99% who have been left behind. We decided not to accept venture capitalists to create ExpatOdyssey.com or any large investors and struggled along with some meagre savings. A few friends heard about our novel idea and invested some money so that ExpatOdyssey.com could be shared with everyone out there. From that point onwards, we knew that our decision for all members to have the opportunity to get or earn Free WEshares(tm), or invest, was the right one.”

In fact, ExpatOdyssey.com has made investment so accessible to everyone that if they want, members can invest from as little as $5 with WEshares currently priced at only 0.1cents per WEshare. We are all passionate about changing the current status quo, or at least doing our part to make a significant difference and giving everyone the chance to own a piece of the future. Businesses usually offer shares when the price is already unattainable. Instead ExpatOdyssey.com is giving everyone the chance to get a piece of the pie at the beginning when it matters most! What’s more is that because our members are owners, we listen to our members’ suggestions, what they want and need and as a result, over time, ExpatOdyssey.com will end up being the world’s best online social network.

Via EPR Network

Revel Systems was officially announced as the winner of the Business iPad App of the Year Award

On January 31, 2012 Revel Systems was officially announced as the winner of the Business iPad App of the Year Award. This weekend at Macworld | iWorld, it was clear early on that the Best Business iPad App awards came down to two remarkable companies: Square, led by Jack Dorsey, and Revel Systems, led by female entrepreneur Lisa Falzone. Both of the nominees were a hit with the crowd, and both were in the payment industry, which is the fastest-moving market for iPad apps. Even though voters were presented with an impressive field of nominees, the battle was clearly dominated by these two competitors.

While competition was fierce between Square and Revel, here’s a breakdown of the vote: First of all, users chose Revel Systems as the most useful business iPad app. Revel was also found to help with a wider array of business functions, with seven to Square’s four. Square was found to have over 100,000 users, while Revel Systems has fewer than 100,000. As far as which offers the simplest user interface, both companies were tied. Finally, users chose Revel Systems as the company with the best customer support.

In the end, Macworld users declared Revel Systems iPad POS the winner. Lisa Falzone, CEO and co-founder of Revel Systems, told iPad Biz Apps today that “Revel is honored to have won such an award, and thanks all of the voters at Macworld | iWorld for voting for them.” A wide range of powerful apps were represented, but Revel’s sophisticated level of functionality and wide range of applications led to its selection as the best iPad business app.

Even though Square has been nominated for a Crunchies award, and has over 100,000 customers, users found that it only supplies a payment app. On the other hand, Revel Systems offers a fully functional Point of Sale system to manage every task that store owners encounter on a daily basis. This can explain why Revel has landed deals with many heavy-hitters like Popeye’s Chicken in Georgia (popeyes.com), Illy Coffee in San Francisco (illy.com), U-sushi in San Francisco (u-sushi.com), Camille’s Sidewalk Café in Oklahoma (www.camillescafe.com), and other big franchises. On the other hand, Square’s clientele is largely restricted to businesses that only require a few simple operations, including farmers’ markets, taxi cabs, and street vendors.

Now that the competition is over, Ms. Falzone is back to leading Revel Systems to the top of the Point of Sale marketplace. She has raised $3.7 million in her “A” round of funding last year and is gearing up for her “B” round. The recent victory of Revel Systems has cemented Ms. Falzone’s place among today’s top women entrepreneurs, and she looks forward to the future of what Revel Systems will accomplish. Moving forward, the company hopes to facilitate growth through its open API, which allows all companies to integrate into Revel—creating new opportunities for local commerce to thrive into the future.

Via EPR Network

Business iPad App Of The Year Award

Business iPad Apps are in high demand fueling the future of American businesses. Now BiziPadapps.com has brought you a contest to see which Business iPad apps are the best for 2011. Vote today for your chance to be the winner for Business iPad App of the Year Award. Voting stops Jan 15th 2011. Winner will be announced Jan 31st 2012.

Much like the crunchies award but we are focused on just businesses that are leading the way into the future using the Apple iPad apps which can help businesses excel into the future. Apple iPad Apps like Drop Box, Docusign, Square and others are among the few that were nominated.

List of iPad Business Apps of the year Nominees that made it to the TOP TEN BUSINESS APPS OF THE YEAR:

In alpha order:

DocuSign
Drop Box
GoCal for Google Calendar
Highrise HQ
iTookOff Paid Leave Tracker
Revel Systems iPad POS
Mint for iPad
Instapaper
SpeakEasy Voice Recorder
Square Payment

With over 500,000 thousand votes so far find out who the winners are for this years contest of Business iPad App of the Year Award. Criteria for this year: which iPad app contributes to businesses and helps them excel.

Via EPR Network


Bootstrapping: Weapon of Mass Reconstruction

“Sramana Mitra’s Bootstrapping: Weapon of Mass Reconstruction is a book for our time because it’s something real out of Silicon Valley. No more stories about legendary VC fundings of startup-to-IPO in six months. …This book has some fascinating histories of the different paths people take to entrepreneurship, and the difficulties they face. I would only have wished each of the interviews to be longer and deeper, because every story is worth telling.” – Fast Company

In a world battered by economic crisis, Sramana Mitra believes entrepreneurship is the only sustainable path forward to a healthy economic world order. And core to the success of entrepreneurial ventures today is the invigorating art of bootstrapping. Sramana Mitra–a serial entrepreneur, strategy consultant and Forbes columnist–takes aim at this essential route along the roadmap to startup success with Bootstrapping: Weapon of Mass Reconstruction (Entrepreneur Journeys Vol. 2; BookSurge; June 1, 2009; $16.95 paperback).

Along with the incisive analysis and commentary that have popularized popularized her blog “Sramana Mitra on Strategy” and Forbes columns, Mitra showcases a dozen successful entrepreneurs and their lessons from the bootstrapping trenches. Overflowing with lively entrepreneurial tangents, theories and behind-closed-doors-experience, the book rises to the level of economic policy discussion while simultaneously offering practical advice from experienced bootstrappers. Important issues like doing more with less, getting started with little or no capital, and validating the market on the cheap are discussed with the likes of Om Malik of GigaOm and Greg Gianforte of RightNow.

In her characteristic narrative style, Mitra shepherds established and aspiring entrepreneurs through another inspiring and page-turning expedition into venture land, a territory she hopes will be claimed by many more in the years to come.

“From my perspective it is clear that small business must be a top policy priority,” explains Mitra. “Let us hope that in the coming decade the number of small businesses will double, then triple and quadruple. For here is the most powerful engine of economic growth and sustenance. Here is our way back.”

More Praise for Bootstrapping:

“Mitra clearly has a passion for small businesses. This useful volume is largely comprised of interviews with the founders of such companies. Her skilled questioning prompts a discussion of the many issues involved in starting and growing a business. The entrepreneurs share wisdom and insight useful to any budding or existing business owner. The reader will be struck by the vision, inventiveness and sheer determination of these entrepreneurial heroes, who operate businesses that are successful but far below the radar. A highly relevant and timely work on entrepreneurship’s role in economic reconstruction.” – Kirkus Discoveries

“Sramana’s work on bootstrapped entrepreneurs is an inspiration in these tough economic times. The solutions to our economic problems ultimately lie with the entrepreneur who brings imagination, resourcefulness and good old-fashioned elbow grease to tackle old problems in new ways, create new solutions and new industries. It is all too easy to forget this, particularly when we feed on the depressing daily diet of endless bailouts and hear trillions of dollars being thrown around. A great entrepreneur can do a lot with ten thousand dollars. This book is a good antidote to the depressing mood of these times.” – Sridhar Vembu, CEO of AdventNet and Zoho, Bootstrapped to over $50 million in annual revenue

“In the end, a true entrepreneur will not be denied. What Sramana captures with simple grace are the riveting personal stories of modern day business alchemists, who mix vision, pragmatism and relentless effort to forge creative new and successful ventures. Her collection of interviews will make for an engaging, educational read, for those in the entrepreneurial space, those considering joining the game and those just plain curious about the formative innovators whose efforts provide outsize social returns of the most concrete and enduring nature.” – Don Hutchison, Silicon Valley Angel Investor

ABOUT THE AUTHOR: Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley. She has founded three companies, is a columnist for Forbes, and writes a business blog, Sramana Mitra on Strategy (www.sramanamitra.com). She has a master’s degree in electrical engineering and computer science from MIT.

Via EPR Network

Start-Up Weebiz.Com Launches With The Promise To Give Away 1.000.000€ To Its Most Influential Company

Weemagine, a Portuguese Web 2.0 startup, is launching Weebiz.com (its first product). Weebiz is just like a business expo, but with the utilities of a social network, where companies from all around the globe can leverage their business contacts to find opportunities and achieve success.

To promote and incentivize further networking, Weebiz is going to offer a prize of ONE MILLION Euros to its most influential company.

Registering a company and using Weebiz is free, although there are First-Class accounts that give company profiles an Authenticated badge as well as other advantages like permanent business headlines, unlimited products, etc.

All First-Class accounts will be eligible to win the 1.000.000€ challenge and the winner will be the company that uses Weebiz to its full potential (which will be determined by a score, calculated according with a formula available at Weebiz.com).

João Santos, General Manager of Weemagine, believes that “In a moment of economic uncertainty and fragility, more and more companies are finding that the internet is a platform bursting with opportunities. Web 2.0 applications and social software have proven to be highly efficient and cost-effective tools whose usefulness is nowadays unquestionable. So, in a moment when businesses must find new markets and clients, partners and alliances, new ways to promote themselves and their brands, Weebiz aims at providing them with exactly the kind of new approach to business that they need to succeed in the rough economic environment of today.”

About Weemagine:

A technology startup based in Leiria, Portugal. Weemagine is an ambitious project of a small team of enthusiastic, senior year students and recently graduates from the University of Coimbra.

Via EPR Network

2008’s Most Popular Web 2.0 Sites

Today we are living in web 2.0 times more than ever before. PR, press coverage, buzz, evangelism, lobbying, who knows who, who blogs who, who talks about who, mainstream media and beyond – all of those words found in the dictionary of almost every new web site that coins itself as web 2.0, but as the global economy crisis is raising upon us promising to leave us working in a very depressed business environment with little to no liquidation events at all for the next years the real question is: who the real winners in today’s web 2.0 space are based on real people using their web properties since 2005 the web 2.0 term was coined for first time. Since then we have witnessed hundreds of millions of US dollars poured into different web 2.0 sites, applications and technologies and perhaps now is the time to find out which of those web sites have worked things out. We took the time necessary to discover today’s most popular web 2.0 sites based on real traffic and site usage and Not on buzz or size of funding. Sites are ranked based on the estimated traffic figures. After spending years in assessing web 2.0 sites applying tens of different from economical and technological to media criteria in an effort to evaluate them we came up to the conclusion that there is only one criterion worth our attention and it is the real people that use a given site, the traffic, the site usage, etc., based on which the web site can successfully be monetized. Of course, there are a few exceptions from the general rule like sites with extremely valuable technologies and no traffic at all, but as we said, they are exceptions. Ad networks, web networks, hosted networks and group of sites that use consolidated traffic numbers as their own or such ones that rely on the traffic of other sites to boost their own figures (ex.: various ad networks, Quantcast, WordPress etc.) are not taken into consideration and the sites from within those respective networks and groups have been ranked separately. International traffic is of course taken into consideration. Add ons, social network apps and widgets usage is not taken into consideration. Sub-domains as well as international TLDs part of the principal business of the main domain/web site are included. Media sites including such covering the web 2.0 space have also been included. Old buys from the dot com era are not considered and ranked accordingly.

Disclaimer: some data based on which the sites below are ranked may not be complete or correct due to lack of public data available for the traffic of respective sites. Please also note that the data taken into consideration for the ranking may have meanwhile changed and might possibly be no longer the same at the time you are reading the list. Data has been gathered during the months of July, August, September and December 2008.

Today’s most popular Web 2.0 sites based on the traffic they get as measured during the months of July, August and September 2008.

Priority is given to direct traffic measurement methods wherever applicable. Panel data as well as toolbar traffic figures are not taken into cosndieration. Traffic details as taken from Quantcast, Google Analytics*, Nielsen Site Audit, Nielsen NetRatings, comScore Media Metrix, internal server log files*, Compete and Alexa. Press release, public relation and buzz traffic and usage figures as they have appeared in the mainstream and specialized media are given with lower priority unless supported by direct traffic measurement methods.

*wherever applicable

Web Property / Unique visitors per month

  1. WordPress.com ~ 100M
  2. YouTube.com ~ 73M
  3. MySpace.com ~ 72M
  4. Wikipedia.org ~ 69M
  5. Hi5.com ~ 54M
  6. Facebook.com ~ 43M
  7. BlogSpot.com ~ 43M
  8. PhotoBucket.com ~ 34M
  9. MetaCafe.com ~ 30M
  10. Blogger.com ~ 27M
  11. Flickr.com ~ 23M
  12. Scribd.com ~ 23M
  13. Digg.com ~ 21M
  14. Typepad.com ~ 17M
  15. Imeem.com ~ 17M
  16. Snap.com ~ 15.7M
  17. Fotolog.com ~ 15.6M
  18. RockYou.com ~ 15M
  19. Veoh.com ~ 12M
  20. Wikihow.com ~ 12M
  21. Topix.com ~ 11.5M
  22. Blinkx.com ~ 11M
  23. HuffingtonPost.com ~ 11M
  24. Technorati.com ~ 10.6M
  25. Wikia.com ~ 10.8M
  26. Zimbio.com ~ 10.3M
  27. SpyFu.com ~ 10.1M
  28. Heavy.com ~ 9.3M
  29. Yelp.com ~ 8.9M
  30. Slide.com ~ 8.5M
  31. SimplyHired.com ~ 8.5M
  32. Squidoo.com ~ 8.1M
  33. LinkedIn.com ~ 7.5M
  34. HubPages.com ~ 7.2M
  35. Hulu.com ~ 7.1M
  36. AssociatedContent.com ~ 7M
  37. Indeed.com ~ 5.4M
  38. LiveJournal.com ~ 5.2M
  39. Bebo.com ~ 5.1M
  40. Habbo.com ~ 4.9M
  41. Fixya.com ~ 4.5M
  42. RapidShare.com ~ 4.5M
  43. AnswerBag.com ~ 4.4M
  44. Metafilter.com ~ 4.3M
  45. Crackle (Grouper) ~ 4M
  46. Ning.com ~ 3.8M
  47. Breitbart.com ~ 3.8M
  48. BookingBuddy.com ~ 3.7M
  49. Kayak.com ~ 3.6M
  50. Blurtit.com ~ 3.2M
  51. Kaboodle.com ~ 3M
  52. Meebo.com ~ 2.9M
  53. Friendster.com ~ 2.7M
  54. WowWiki.com ~ 2.8M
  55. Truveo.com ~ 2.7M
  56. Trulia.com ~ 2.7M
  57. Twitter.com ~ 2.5M
  58. BoingBoing.net ~ 2.4M
  59. Techcrunch.com ~ 2.2M
  60. Zillow.com ~ 2.2M
  61. MyNewPlace.com ~ 2.2M
  62. Mahalo.com ~ 2.1M
  63. Vox.com ~ 2M
  64. Last.fm ~ 2M
  65. Glam.com ~ 1.9M
  66. Multiply.com ~ 1.9M
  67. Popsugar.com ~ 1.6M
  68. Addthis.com ~ 1.5M
  69. Pandora.com ~ 1.4M
  70. Brightcove.com ~ 1.4M
  71. LinkedWords.com ~ 1.3M
  72. Devshed.com ~ 1.3M
  73. AppleInsider.com ~ 1.3M
  74. Newsvine.com ~ 1.3M
  75. Fark.com ~ 1.2M
  76. BleacherReport.com ~ 1.2M
  77. Mashable.com ~ 1.2M
  78. Zwinky.com ~ 1.2M
  79. Quantcast.com ~ 1.2M
  80. StumbleUpon.com ~ 1.1M
  81. SecondLife.com ~ 1.1M
  82. Magnify.net ~ 1.1M
  83. Uncyclopedia.org ~ 1M
  84. Weblo.com ~ 1M
  85. Del.icio.us ~ 1M
  86. Reddit.com < 1M
  87. Pbwiki.com < 1M
  88. AggregateKnowledge.com < 1M
  89. Eventful.com < 1M
  90. Dizzler.com < 1M
  91. Synthasite.com < 1M
  92. Vimeo.com < 1M
  93. Zibb.com <1M

Web 2.0 sites having less than 1M unique visitors per month even though popular in one way or another are not subject of this list and are not taken into consideration. We know for at least 100 other considered really good web 2.0 sites, apps and technologies of today, but since they are getting less than 1M uniuqes per month they were not able to make our list. However, sites being almost there (850K-950K/mo) and believed to be in position to reach the 1M monthly mark in the next months are also included at the bottom of the list. Those sites are marked with “<“, which means close to 1M, but not yet there. No hard feelings :).

If we’ve omitted one site or another that you know is getting at least 1M uniques per month and you are not seeing it above, drop us a note at info[at]web2innovations.com and we’ll have it included. Please note that the site proposed should be having steady traffic for at least 3 months prior submission to the list above. Sites like, for example: Powerset and Cuil, may not qualify for inclusion due to their temporary traffic leaps caused by buzz they have gotten, a criterion we try to offset. For other corrections and omissions please write at same email address. Requests for corrections of the traffic figures the sites are ranked on can only be justified by providing us with the accurate traffic numbers from reliable direct measurement sources (Quantified at Quantcast, Google Analytics, Nielsen Site Audit, Nielsen NetRatings, comScore Media Metrix, internal server log files, other third party traffic measurement services that use the direct method. No panel data, no Alexa, no Compete etc. will be taken into consideration).

* Note that ranks given to sites at w2i reflect only our own vision for and understanding of the site usage, traffic and unique visitors of the sites being ranked and does not necessarily involve other industry experts’, professionals’, journalists’ and bloggers’ opinions. You acknowledge that any ranking available on web2innovations.com (The Site) is for informational purposes only and should not be construed as investment advice or a recommendation that you, or anyone you advise, should buy, acquire or invest in any of the companies being analyzed and ranked on the Site, or undertake any investment strategy, based on rankings seen on the Site. Moreover, if a company is described or mentioned in our Site, you acknowledge that such description or mention does not constitute a recommendation by web2innovations.com that you engage or otherwise use such web site.

The full list

REGIS Corporation Deployed The First Firewall-Protected Payment Terminal In The World From Talentbeat Inc.

REGIS Corporation, the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education over 13,500 locations worldwide, deployed the first firewall-protected payment terminal in the world. The solution utilizes the PCI-certified payment platform whizPay™ from TalentBeat Inc., which accepts REGIS payments for gift cards, credit cards (Visa, MasterCard, AMEX, Discover, Diner, JCB), and debit cards.

By implementing this solution, Regis Corporation expects to enforce high-level security measures to protect the security of their credit/debit card customers while utilizing the robust, fast and accurate platform for its high volume, complex processing needs.

The solution is integrated into the whizPay™ ASP platform developed by TalentBeat which is fully PCI certified and provides a global multicurrency payment gateway, making store-level integration standard across all geographies.

About Regis Corporation
Regis Corporation, headquartered in Minneapolis, Minnesota, is the beauty industry’s global leader in beauty salons, hair restoration centers and cosmetology education. As of June 30, 2008, the Company owned, franchised or held ownership interests in over 13,500 worldwide locations. To learn about REGIS, please visit www.regiscorp.com.

About TalentBeat
Headquartered in Boston, TalentBeat, Inc. is a global IT consulting and technology service company specializing in industry-specific solutions, strategic outsourcing and integration services for last nine years. TalentBeat is a premier provider of electronic payment solutions combined with CRM, loyalty and gift solutions in both traditional and alternative payments channels.

whizPay™ is a modular multipurpose, PCI-certified platform enabling merchants to provide a personalized, rich experience for their customers with integrated CRM and Rewards solutions on both gift and credit cards. The platform is designed as SAAS (Software as a Service) enabling merchants to pick and choose specific features to suit their corporate strategy. This “Pay as you Grow” platform enables merchants to reduce operational costs and avoid huge upfront investments in payment solutions. The whizPay platform is integrated into a majority of POS devices, shopping carts and processors worldwide, making the deployment and integration extremely efficient. The platform also provides multicurrency, mobile payments, IVR Self Service Solutions, Virtual terminal and WebServices for third party integration as part of the platform providing several avenues to accept payments.

Via EPR Network

More Retail press releases

 

New web 2.0 site allows students to publish, protect, share, and earn from their High School and College papers

New website allows students to publish, protect, share, and earn from their High School and College papers. Students spend countless hours researching and writing, it has always been done for education and a degree. Now that effort is being turned in to spending money.

The launch of a new Student community website allows students to publish their papers, while maintaining full ownership of their work.

Until now, students wrote a paper or essay, turned it in for grading, it sat on their computer hard drive until that hard drive crashed. Students would say “Well, it stinks, but I got the grade, and I graduated”. Now students can archive their work, share it with other students, and earn some serious gas money.

The writing that High School and College students do can now act as an annuity that pays them for life. “The work students do is more than busy work, it’s valuable research that can be used by students and teachers alike year after year” says Co-Founder of PayPerz.com, Richard Wohl. “Our student community allows students to archive their work, not only is the service free, but they get paid a share of the advertising revenue generated by their work”.

Modeled after some very successful self-publishing websites, PayPerz.com is specifically geared to College and High School Students. “Covering hundreds of subjects and growing daily, our indexed and searchable database is written to make the most of search engine technology, as more students participate in PayPerz.com, the amount of information will give our website an incredible amount of unpublished, unique content.” One technology advantage over other similar sites, PayPerz.com allows users to upload directly from a Word Documents, no retyping needed. Although an advances text editor is available to edit or add to existing documents. PayPerz.com also allows students to add unlimited pictures and video to their research. The site still in beta testing is open to all High School and College students in the United States.

PayPerz.com protects students from being plagiarized by quickly indexing their work, this allows the tools currently in use by Universities around the country to ensure content turned in is unique.

Currently PayPerz.com is working with cost-per-action advertisers in order to protect it’s partners from click fraud. PayPerz.com and it’s student publishers only get paid when a click leads to an action. This helps PayPerz to ensure it keeps its advertisers happy, it discourages community members from clicking for the sake of clicking. The real value of the site is in the un-indexed research and information it will provide.

Once out of Beta, PayPerz.com will be paying it’s top student publisher a $5000 cash prize, now that’s some serious college spending money.

Via EPR Network

More Education News

Live Universe acquires yet another deadpooled start-up on the cheap

A couple of weeks ago we realized the shopping pattern of Live Universe is to buy failed, but over funded, start ups on the cheap and the deal we read about a few days ago makes no exception. Just over a few week ago the founders of and five engineers from VoIP services provider Jangl left for Jajah after the company failed to find a proper buyer. Following their departure, it was unclear what would happen to Jangl’s assets and remaining staff. Wonder no longer – Live Universe is here to help. As you may guess they bought the failed company, perhaps on the cheap too. We tried to find out what the acquisition price is, but since we found nothing neither reliable enough nor even rumors around the blogosphere about the exact price, we do assume the price tag is not much different from what the other failed start-up enjoyed in their deals with Live Universe. Call it $1M and you might be closer to the truth than you may expect.

Well not bad, except the fact that Jangl has raised $9M to date from a number of perhaps unhappy investors today. Among others Jangl’s investors include Storm Ventures, Labrador Ventures, Cardinal Venture Capital, Alex Mendez, Stuart Davidson and Chris Hadsell.

Based on a number of posts across the blogosphere we learn that problems of the company have likely started the late last fall. By that time Jangl’s board began telling the founders to pursue an acquisition strategy or raise more money despite the company had closed deals with several partners, including Plentyoffish and Tagged.

Despite the rumors that many companies have taken a look into the Jangl, it is clear that no deal has emerged from those interests.

Jangl allows consumers to exchange text messages, phone calls and voicemail without sharing their real numbers. Jangl customers can send/receive SMS messages from their mobile device or their Jangl account online, have voice messages sent directly to their email or profile inbox as MP3 files, and block contact from someone at any time, among other capabilities. Jangl provides its services to users of Facebook (JanglMe application), Bebo, Plentyoffish.com, Match.com, Friendster, Tagged, FriendFinder, Fubar, and more, and also offers its services at Jangl.com.

In late 2007, Jangl began testing a variety of ad placements in phone calls and SMS messages. One of its most recently partners – dating site Plentyoffish.com – will be a free service supported entirely by advertising. This advertising revenue stream will be Jangl’s second, as the company has already been generating partner revenue since January 2007.

Other companies bought on the cheap by Live Universe include Pageflakes (funding $4.1- sold out for what is known to be in the $1M range). Revver ‘s total funding is known to be in the $12.7M range coming from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III – sold also out for anything between $1M and $2M. MeeVee itself has also taken a whopping amount of money from the venture capitalists — $25M over the past years, we bet on it has also been sold out for anything in the $1M / $2M range. From the 3 companies above, MeeVee seemed by that time to have traffic, at least. Today’s deal is for yet another company that has taken $9M and has perhaps gone for nothing more than $1M.

A simple math that we started out a couple of weeks ago revealed that Live Universe has bought $42M worth in distressed assets for $3M in total and if we include the deal from today it turns out that the buyer has acquired web properties that have taken over $51M to develop for $4M in all.

The buying company LiveUniverse is probably most popular with the fact it has been founded by one of the founders of MySpace – Brad Greenspan. With over 55M monthly unique visitors, LiveUniverse is one of the world’s largest online entertainment networks. They operate several successful and popular websites across three core verticals: Video, Social Networking & Music. LiveVideo is one of their sites, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

Competitors/similar companies include: SayNow, Jajah, Jaxtr, Dial Plus, GrandCentral and TringMe.

More

http://www.liveuniverse.com/
http://www.crunchbase.com/company/liveuniverse
http://jangl.com/
http://cerdafied.typepad.com/
http://www.techcrunch.com/2008/05/16/live-universe-picking-up-jangls-pieces/
http://www.crunchbase.com/company/jangl
http://www.techmeme.com/070524/p7#a070524p7
http://venturebeat.com/2008/05/07/internet-phone-company-jangl-to-sell-assets-core-team-goes-to-competitor-jajah/
http://web2innovations.com/money/2008/05/09/live-universe-acquires-yet-another-over-funded-start-up-on-the-cheap/
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/15/pageflakes-is-acquired-by-brad-greenspan%e2%80%99s-live-universe/
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/08/meevee-put-itself-up-for-sale/

Mobile Web 2.0 to reach $22.4B by 2013, says Juniper Research

The global market for Mobile Web 2.0 will be worth $22.4bn in 2013, up from $5.5bn currently, according to a new report by Juniper Research.  Embracing social networking & User Generated Content (UGC), mobile search and mobile IM (Instant Messaging), Mobile Web 2.0 provides a framework for delivery of collaborative applications, further enhanced and contextualized via LBS (Location Based Services).

In its latest report – ‘Mobile Web 2.0: Leveraging ‘Location, IM, Social Web & Search’ – Juniper examines how a fundamental shift in Internet usage patterns is shaping Mobile Web development, driving subscriber adoption and forcing structural changes within the industry. At the core of this evolution is the user as a creator and consumer of content (i.e. the prosumer), and the ‘social web’ – which describes a wide variety of social computing tools enabling users to develop detailed Web identities, create online communities and communicate with like-minded individuals.

“Combining the power of the social network map – namely: ‘who I know, how I know and where I know’ – with that of mobility, presents the greatest opportunity for revenue generation of any of the applications as defined within Juniper’s Mobile Web 2.0 framework,” states Ian Chard, Juniper Research Analyst and author of the new report. “The phone is carried with us most of the time and contains a huge amount of personal data, making it a logical extension for the social network and a host of other collaborative Web 2.0 applications being mobilised.”

Other findings from the report:

  • Total global revenues for mobile social networking/UGC will rocket from $1.8bn in 2008, to $11.2bn in 2013, accounting for 50% of the market, while growth in mobile search and mobile IM will be more measured;
  • Service revenues will account for the lion’s-share of total Mobile Web 2.0 revenues, although mobile advertising represents a significant opportunity;
  • Far East & China, Western Europe and North America dominate the global market for Mobile Web 2.0, but will be surpassed by the developing regions over the forecast period.

Fresh Challenges

Despite the new opportunities for players across the value chain, Mobile Web 2.0 creates fresh challenges over and above those typically associated with mobilising Internet applications. MNOs must adjust to advertising-sponsored strategies and accommodate partnerships with Web-based players, while device manufacturers and technology vendors must somehow find the means to stitch together what is at present, a highly-fragmented market. Any player in Social Web is also subject to regulatory measures concerning privacy and data retention.

Juniper Research assesses the current and future status of the Mobile Web 2.0 market based on interviews, case studies and analysis from representatives of some of the organisations leading this growing market.

 Whitepapers and further details of the study ‘Mobile Web 2.0: Leveraging ‘Location, IM, Social Web & Search’ 2008-2013 can be freely downloaded from http://www.juniperresearch.com

Juniper Research is a telecoms analyst firm specialising in the mobile and wireless sector with particular emphasis on business models, applications, content and device strategies. Juniper is headquartered in the UK and has been operational for five years. Juniper Research provides market expertise and advice to organisations operating across the telecoms and related sectors. We publish regular off-the-shelf research reports and provide business modelling, market sizing, forecasting and competitive analysis to consultancy clients across the world.

More

http://www.juniperresearch.com/
http://www.juniperresearch.com/about-us.php
http://www.juniperresearch.com/shop/viewpressrelease.php?id=119&pr=91
http://www.juniperresearch.com/shop/viewauthor.php?id=119&author=84

Facebook raised $100M more, total is now at $493M

Facebook keeps on growing so does its expenditures. The latest news from the company is that they have raised yet another $100M round of funding. The company says this time all the money will go for buying servers, lots of servers. BusinessWeek has estimated they are going to scale things up with 50,000 new servers on top of their 10,000 they are currently running on. Total amount of money raised by Facebook is now $493M (we did the math and it seems $438M in total, but other more reliable sources claim it is $493M) according to several sources. This time, however, the founding is not against equity, but is a venture lending deal with TriplePoint Capital, a Menlo Park, Calif. based company that specializes in lending money to startups. Facebook already claims 109M monthly unique visitors and many people say the site is at times very slow.

Venture lending peaked during the dot-com bubble of the late 1990s and early part of this decade, but is making a comeback as startups use debt to pay for computer servers, telecom gear, and software. “The last thing the entrepreneur wants to do is see those precious equity dollars flowing into equipment purchases,” says TriplePoint CEO Jim Labe. “It’s a very unproductive use of equity to plow it into fixed assets.”

Forrester Research’s Gillett estimates that Google is buying half a million servers each year, while Microsoft’s annual consumption is as much as 200,000 servers.

Executives at Facebook declined to say which vendors will provide the servers. But the social network is already a big customer of Rackable Systems, which said in a recent financial statement that it derived $11.5 million, or 17% of $68 million in first-quarter revenue, from Facebook. This puts the total server expenditures of Facebook at $46M per year. With the new round this amount will significantly increase.

Facebook is hugely popular social networking site, second only to MySpace in terms of users. Other popular social networking sites are Bebo and Friendster, the second one tried to acquire Facebook in 2004 for just $10M.

The latest comScore metrics, we have seen, revealed that Facebook is actually havingo ver 100M unique visitors per month.

Peter Thiel, cofounder of PayPal and managing partner of the Founders Fund was the first angel investor in the company. He invested $500,000 into Facebook in early 2004. Later Accel Partners poured $12.7 million more in funding, at a valuation in the $100 million range.

The next year [2006], Facebook received $25 million in funding from Greylock Partners and Meritech Capital, as well as returning investors Accel Partners and Peter Thiel. The pre-money valuation for this deal was in the $525 million range.

Facebook is reported to have turned deals down from Friendster, Yahoo, Viacom  and the mighty Google a few months ago when Zuckerberg has chosen Microsoft to partner with. Microsoft de-facto has invested $240 million into Facebook for just 1.6 percent of the company in October 2007. This put the company’s valuation at over $15 billion on just $150 million in annual revenues.

More

http://www.facebook.com/
http://www.tpcp.com/
http://www.rackable.com/
http://www.techcrunch.com/2008/05/10/facebook-raises-another-100-million/
http://www.businessweek.com/technology/content/may2008/tc2008059_855064.htm
http://mashable.com/2008/05/09/facebook-triplepoint-funding/
http://venturebeat.com/2008/05/09/facebook-borrows-100m-to-build-out-its-infrastructure/
http://gigaom.com/2008/05/11/the-rising-cost-of-facebook-infrastructure/
http://www.marketwatch.com/news/story/hong-kong-tycoon-li-raises/story.aspx?guid=%7BE4097AA2-9EA3-4773-9100-456E68EE1C9A%7D
http://www.allfacebook.com/2008/03/facebook-gets-another-40-million/
http://www.techcrunch.com/2008/03/27/hong-kong-billionaire-puts-another-40-million-into-facebook/
http://mashable.com/2008/03/27/facebook-hutchinson-investment/
http://web2innovations.com/money/2007/11/30/hong-kong-billionaire-li-ka-shing-invests-60m-in-facebook-funding-totals-33820m-to-date/
http://gigaom.com/2008/03/27/facebook-soon-to-appear-in-3g/
http://www.facebook.com/apps/application.php?id=2915120374&b
http://gigaom.com/2008/03/13/lets-justify-facebooks-300-per-user-valuation/
http://www.crunchbase.com/company/facebook
http://www.techcrunch.com/2007/11/30/another-60-million-for-facebook/
http://kara.allthingsd.com/20071130/facebook-nabs-60-million-investment-from-li-ka-shing/
http://www.hutchison-whampoa.com/eng/about/chairman/chairman.htm

Live Universe acquires yet another over funded start-up on the cheap

It appears that the buyer’s profile of Live Universe is to buy web 2.0 companies in trouble on the cheap, yet preferably over funded, with some traffic and good technology, if possible. After they have bought video site Revver (also relatively cheap, price perhaps was in the $1M range) in February 2008, they have also fetched up Pageflakes just the last month for what is believed to be yet another 1M dollar deal. Yesterday we have read over Web that Live Universe has this time bought yet another start-up falling into the same profile (over funded, failed and looking for a fire sale) MeeVee. They have put themselves up for sale via press release the last month.

MeeVee is all about personalized TV guides and the company was said is having over 1.1 million organic unique users in March up from 480,000 in August 2007. The Company uses its editorial voice and proprietary technology to scour a curated list of thousands of sources to connect consumers with customized video, blog and TV programming content that matches their interests. The Company has significant issued IP, community, media relationships, a TV listings personalization engine, streaming TV directory and a compelling product roadmap. The Company has 7 full time employees, all in product and engineering.

Let’s look into the Live Universe’s shopping pattern.

Total funding for Pageflakes was $4.1M – sold out for what is known to be in the $1M range. Total funding for Revver is known to be in the $12.7M range coming from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III – sold also out for anything between $1M and $2M. MeeVee itself has also taken a whopping amount of money from the venture capitalists — $25M over the past years, we bet on it has also been sold out for anything in the $1M / $2M range. From the 3 companies above, MeeVee seems to have traffic, at least.

It is an interesting strategy to buy companies and spur growth, but we guess it is better you buy growing start-ups rather than falling stars that have spent enormous amount of capital yet did not work things out. It is yet to be seen if this strategy is going to be successful on the long term run for Live Universe. Let’s put it that way – a company that has raised $25M and did not manage to work things out is less likely to make it with less money. On the other hand buying distressed assets is something proven by the time. From Live Universe’s perspective it seems clever move that they have bought web assets that needed more than $42M to develop for $3M or something. As web 2.0 moves towards its peak and then its end (the same as what happened with the dot com boom) there would be lots of over funded and over hyped, but failed start-ups for sale on the table for Live Universe to choose from and buy cheaply.

So to conclude if your company has taken enormous amount of money, but has definitely failed to work things out and is looking for some liquidation of its assets Live Universe might be your choice to consider.

The buying company LiveUniverse is probably most popular with the fact it has been founded by one of the founders of MySpace – Brad Greenspan. With over 55M monthly unique visitors, LiveUniverse is one of the world’s largest online entertainment networks. They operate several successful and popular websites across three core verticals: Video, Social Networking & Music. LiveVideo is one of their sites, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

Additionally in 2006, Greenspan also initiated a lawsuit and activism site against his former company, MySpace, calling attention to the fact they were censoring widget makers and software service providers using MySpace as a development platform.

More

http://www.liveuniverse.com/
http://www.crunchbase.com/company/liveuniverse
http://meevee.com/
http://biz.yahoo.com/bw/080407/20080407006076.html
http://www.techcrunch.com/2008/04/07/25-million-later-meevee-in-trouble/
http://www.crunchbase.com/company/meevee
http://www.techcrunch.com/2007/07/16/meevee-cuts-20-of-staff/
http://www.techcrunch.com/2007/09/20/meevee-takes-35-million-series-d/
http://www.econtentmag.com/Articles/ArticleReader.aspx?ArticleID=17395
http://findarticles.com/p/articles/mi_m0EIN/is_2006_Feb_27/ai_n16085490
http://www.techmeme.com/080407/p95#a080407p95
http://www.deftapartners.com/
http://www.labrador.com/
http://www.waldenvc.com/
http://www.jpmorgan.com/pages/jpmorgan/investbk/global/na/baef
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/15/pageflakes-is-acquired-by-brad-greenspan%e2%80%99s-live-universe/
http://web2innovations.com/money/2008/02/15/revver-the-video-revenue-sharing-site-finally-sells-out-but-the-price-is-not-hefty/
http://web2innovations.com/money/2008/04/08/meevee-put-itself-up-for-sale/
 

LinkedIn is out pitching for a major round at the staggering $1B pre-money

The rumors across the valley are that LinkedIn is out trying to raise a new round at $1B pre-money valuation. They are using the service of the New York based secretive investment bank Allen & Co. where the Managing Director Dave Wehner seems to be engaged with the effort to help LinkedIn secure its next round of funding.

There were clearly rumors over the past months that LinkedIn was looking for potential sell out as one of the rumored suitors was News Corp., but as it often happens nowadays after you fail to sell out you are raising a new round instead at preferably huge pre-money valuation to keep your company alive until IPO and M&A markets improve. Similar deals were done by many web 2.0 start-ups from the valley and among others are Slide, Ning, Federated Media and most recently Meebo.

If those rumors turn out to be accurate it will be one of the most expensive private venture deals in recent history. So far LinkedIn is said to have taken $27.5M in total over three rounds. They have also claimed publicly they will reach anything between $70M and $100 million in revenue in 2008. Yet if this is true that they need new round before their exit it means they are barely profitable.

The latest numbers from LinkedIn are as follows: over 20M registered users worldwide, more than 1M new users get registered on their social networking site each month and the average user is said to be 41 years old making around $110,000, which the company says allows it to charge advertisers $75 per thousand impressions.

However, both Quantcast and Compete do report for no more than 4 up to 5M uniques per month to their site. 

This past January, cofounder and board chairman Reid Hoffman told the Sydney Morning Herald that the company will most likely file for an IPO before 2010 if “he isn’t first tempted to sell to one of the suitors that have inquired about buying LinkedIn. Hoffman wouldn’t identify the suitors.” This simply sounds like invitation for the suitors to sweeten their offers.

More about LinkedIn

LinkedIn is an online network of more than 20 million experienced professionals from around the world, representing 150 industries. When you join, you create a profile that summarizes your professional accomplishments. Your profile helps you find and be found by former colleagues, clients, and partners. You can add more connections by inviting trusted contacts to join LinkedIn and connect to you. Your network consists of your connections, your connections’ connections, and the people they know, linking you to thousands of qualified professionals.

Through your network you can:

  • Find potential clients, service providers, subject experts, and partners who come recommended
  • Be found for business opportunities
  • Search for great jobs
  • Discover inside connections that can help you land jobs and close deals
  • Post and distribute job listings
  • Find high-quality passive candidates
  • Get introduced to other professionals through the people you know

LinkedIn is free to join. We also offer paid accounts that give you more tools for finding and reaching the right people, whether or not they are in your network.

LinkedIn participates in the EU Safe Harbor Privacy Framework and is certified to meet the strict privacy guidelines of the European Union. All relationships on LinkedIn are mutually confirmed, and no one appears in the LinkedIn Network without knowledge and explicit consent.

LinkedIn is located in Mountain View, California and is funded by world-class investors including Sequoia Capital, Greylock, the European Founders Fund, and Bessemer Venture Partners.

More about Allen & Co

Investment bank Allen & Company has been involved in a number of high profile mergers and acquisitions in the past. Interesting for the Allen & Company is the privacy the investment firm seems to be working in as argument for which is the absence of even a basic site for the company on Web. Perhaps they don’t like publicity. Yet, we have found the firm’s contact details, which can be found among the other links on the end of the story’s page.

For Allen & Company, there’s no business like financing show business. The investment bank serves variously as investor, underwriter, and broker to some of the biggest names in entertainment, technology, and information. Viewed as something of a secret society, the firm has had a quiet hand in such hookups as Seagram (now part of Vivendi) and Universal Studios, Hasbro and Galoob Toys, and Disney and Capital Cities/ABC. The firm’s famous annual retreat in Sun Valley, Idaho, attracts more moguls than a double-black ski run (Warren Buffet, Bill Gates, and eBay CEO Meg Whitman have attended). Brothers Herbert and Charles Allen founded the company in 1922.

Key people and executives for Allen & Company LLC are as follows:

  • Non-Executive Chairman Donald R. (Don) Keough
  • President, CEO, and Director Herbert A. (Herb) Allen
  • Managing Director and CFO Kim M. Wieland

More

http://www.linkedin.com/
http://blog.linkedin.com/
http://www.linkedin.com/in/reidhoffman
http://www.usatoday.com/tech/webguide/internetlife/2008-01-20-linkedin_N.htm
http://venturebeat.com/2008/05/05/whats-happening-at-linkedin-is-it-getting-bought/
http://www.techcrunch.com/2008/05/05/allen-co-pitching-linkedin-at-1-billion/
http://www.crunchbase.com/company/linkedin
http://www.crunchbase.com/financial-organization/allen-and-company
http://uk.techcrunch.com/2007/11/28/more-linkedinnews-corp-reports-coming-in/
http://venturebeat.com/2007/11/27/source-yes-linkedin-and-news-corp-are-working-on-a-deal
http://www.thestandard.com/news/2008/04/29/linkedin-prepares-lucrative-push-europe
http://venturebeat.com/2007/12/09/linkedin-launches-platform-redesign-a-better-business-social-network
http://www.smh.com.au/news/biztech/serial-entrepreneur-with-the-golden-touch/2008/01/22/1200764231508.html?page=fullpage#contentSwap2
http://500hats.com/
http://venturebeat.com/2008/02/20/trends-secretive-new-york-bank-allen-co-gets-into-silicon-valley-media-tech/
http://www.hoovers.com/allen-&-company/–ID__51026–/free-co-factsheet.xhtml
http://quantcast.com/linkedin.com
http://siteanalytics.compete.com/linkedin.com?metric=uv

Meebo raised $25M on reportedly $200M pre-money

The rumors were lately that Meebo failed to sell and that’s why it went into this new round of funding instead and not at the initial $250M pre-money valuation they were hoping for but at $175 – $200M (as it seems $200M). Some sources claim that companies like Fox/MySpace and AOL have taken a long look at the company, but ultimately passed based on the price.

A couple of days ago it went official that Meebo has taken a $25 million third round of financing from Jafco Ventures, Time Warner Investments and KTB Ventures. Previous investors Draper Fisher Jurvetson and Sequoia Capital are said to have also participated.

With this round Meebo’s only exit might be the IPO road, which for a company with little to no revenues is not that easy to accomplish. If the new investors are looking for 2x or 3x their money at the exit it would be hard for Meebo to sell itself out for anything less than $500M or go for an IPO, which for a company with little to no revenues is kind of unbelievable for us to happen.

Meebo is a popular and rapidly growing web based instant messaging start up that was backed up by Sequoia Capital and is said to have roughly 4.6M unique visitors per month according to comScore’s publicly available stats. That’s valuing each of their visitors at the $54 mark, which is significantly more than what AOL has just recently paid for each of Bebo’s 22M visitors – $39 according our simple math. Many industry experts, commentators and bloggers have expressed their negative feelings about the potential deal and more concrete about its pre-money valuation. Anyone remember Slide and their pre-money valuation of $500M? Yet it was said then they had over 150M or so users worldwide, which, if true, valued their users at the $3 range.  

There is however something most of the technology blogs seem to have overlooked. Joshua Beil from Level 3 Communications has commented on one of the tech blogs that Meebo’s per user valuation could change quite substantially if one takes into account their unique visitors of the MeeboMe rooms widget. I’ve seen, he says, numbers in the 10-14M range and counting for just this application. Factor this in to the 4.6M uniques to Meebo.com and it’s at a discount to Bebo. We have no idea where he does take his numbers and what his affiliation with the company is, but if we take those numbers for real the $250M valuation does not sound ridicules anymore. In addition to that Venturebeat reports that Meebo has attracted 29 million monthly unique users worldwide, but they also say that some investors remain quite skeptical about Meebo and their business model. We have no clear idea where Venturebeat has come to that number of visitors.

Meebo launched in September 2005 and received funding from Sequoia Capital in December 2005 and Draper Fisher Jurvetson in January 2007. Today, Meebo’s users exchange over 100 million instant messages daily.In early 2007, Meebo gets another $9 million from Draper Fisher Jurvetson and Sequoia Capital. Skype’s lead investor and YouTube’s lead investor are teaming up. Tim Draper, one of the early investors in Skype, did the deal for DFJ. Meebo’s total funding is now $37.5 million.

More

http://www.meebo.com/
http://blog.meebo.com/about
http://www.monty.com/
http://www.techcrunch.com/2008/04/30/its-official-meebo-raises-25-million-from-jafco-time-warner-and-ktb/
http://www.techcrunch.com/2008/04/30/meebo-closes-big-funding-round/
http://www.techcrunch.com/2008/04/09/meebo-cant-get-their-price-go-for-a-fundraising-instead-of-sale/
http://www.conceptualist.com/2008/04/09/1-million-in-revenues-200-million-valuation/
http://web2innovations.com/money/2008/03/18/meebo-tries-to-raise-25m-in-return-of-only-10-equity-valuing-the-company-at-the-whopping-250m/
http://www.techcrunch.com/2008/01/31/meebo-turns-chat-rooms-into-a-web-service/
http://venturebeat.com/2008/03/17/meebo-raising-round-valued-up-to-250-million-bear-stearns-sold-for-236-million/
http://www.webware.com/8301-1_109-9896718-2.html?part=rss&tag=feed&subj=Webware
http://www.techcrunch.com/2008/03/18/is-meebo-worth-half-a-slide/
http://venturebeat.com/2007/01/18/im-service-meebo-growing-quickly-raises-more-cash/
http://www.techcrunch.com/2005/12/16/meebo-confirms-sequoia-funding/
http://web2innovations.com/money/2007/11/22/meebo-received-funding-from-sequoia-capital/
http://blog.meebo.com/?p=78
http://venturebeat.com/2006/08/02/meebome-lets-you-chat-directly-from-any-homepage/
http://venturebeat.com/2007/01/10/web-20-shakeout-continued-whats-up-at-insider-pages-meebo-others/
http://www.crunchbase.com/company/meebo
http://www.techmeme.com/080318/p7#a080318p7
http://quantcast.com/meebo.com
http://siteanalytics.compete.com/meebo.com?metric=uv
http://web2innovations.com/money/2008/03/14/22m-uniques-mo-site-bebo-goes-to-aol-for-850m-in-all-cash-deal/
http://www.techcrunch.com/2008/01/18/slide-gets-their-huge-valuation-and-raises-50-million/
http://www.crunchbase.com/financial-organization/montgomery-co
http://venturebeat.com/2007/12/06/meebo-partners-with-videoegg-to-help-app-developers-make-more-money/

Microsoft – Yahoo saga seems to be over!

Well, after 3 months of negotiations, speculations and rumors the saga between Microsoft and Yahoo seems to be over, for now. Microsoft has formally withdrawn their offer to buy Yahoo while the second publicly declared a victory for the Web at all. While there are clearly no winners in this virtual war here is what the people at Microsoft have told Yahoo today.

“We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo! and the market as a whole. Our goal in pursuing a combination with Yahoo! was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees,” said Steve Ballmer, chief executive officer of Microsoft.

“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Ballmer.

“We have a talented team in place and a compelling plan to grow our business through innovative new services and strategic transactions with other business partners. While Yahoo! would have accelerated our strategy, I am confident that we can continue to move forward toward our goals,” Ballmer said.

“We are investing heavily in new tools and Web experiences, we have dramatically improved our search performance and advertiser satisfaction, and we will continue to build our scale through organic growth and partnerships,” said Kevin Johnson, Microsoft president for platforms and services.

On the other side here is Yahoo’s response to Microsoft

“We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets. From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft’s offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view. Yahoo! is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market. Our solid results for the first quarter of 2008 and increased full year 2008 operating cash flow outlook reflect the progress the company is making. Today, Yahoo! has:

– a refined strategic focus to drive enhanced volume and yield;

– reorganized to focus its efforts on its most promising products and services;

– invested in innovations designed to revolutionize display advertising and facilitate closing the competitive gap in search; and

– enhanced expense and resource management to support improved profitability.”

Jerry Yang, co-founder and chief executive officer, Yahoo! Inc. added, “I am incredibly proud of the way our team has come together over the last three months. This process has underscored our unique and valuable strategic position. With the distraction of Microsoft’s unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users.”

The simple truth is that Microsoft has definitely been hurt on its image and is walking out from this with serious dose of frustration. As to Yahoo they will surely take a serious hit by the stock market, their market capitalization will be big time hurt and they are probably going to become an easy pray to private equity players. There are all signs to believe that Microsoft will eventually return for Yahoo when time comes and the valuations are less. Rumors have it that Yahoo might eventually pursue a merger with AOL. Teaming up with Google is not an option. Aside having anti-trust implications it might also hurt their Panama advertising strategy on the long term run. 

Really more from MS/Yahoo’s saga

http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=308131
http://webinsider.blogspot.com/2008/05/microsoft-cancelled-bid-for-yahoo-why.html
http://blog.pmarca.com/2008/05/examining-micro.html
http://www.techcrunch.com/2008/05/03/yahoos-tough-week-ahead/
http://www.techcrunch.com/2008/05/03/yahoo-responds/
http://www.techcrunch.com/2008/03/29/yahoos-new-rock-star-retention-program/
http://www.techcrunch.com/2008/05/03/breaking-microsoft-walks/
http://mashable.com/2008/05/03/breaking-microsoft-corporation-rescinds-offer-for-yahoo-inc/
http://venturebeat.com/2008/05/03/yahoo-breaks-the-wrist-microsoft-walks-away/
http://www.centernetworks.com/microsoft-yahoo-aol
http://web2innovations.com/money/2008/04/03/despite-rumors-microsoft-is-highly-unlikely-to-increase-its-bid-for-yahoo/
http://online.wsj.com/article/SB120701820580579519.html?mod=googlenews_wsj
http://web2innovations.com/money/2008/03/26/yahoo-shares-up-44-on-rumors-microsoft-will-increase-the-bid-to-34/
http://www.techcrunch.com/2008/03/25/citigroup-raises-yahoo-target-to-34-based-on-revised-microsoft-bid/
http://www.infoworld.com/article/08/03/25/Citigroup-says-Microsoft-likely-to-raise-bid-for-Yahoo_1.html
http://finance.yahoo.com/q?s=MSFT
http://finance.yahoo.com/q?s=yhoo
http://uk.reuters.com/article/technology-media-telco-SP/idUKN1819990520080219
http://news.zdnet.com/2100-9588_22-6231021.html
http://mashable.com/2008/02/18/bill-gates-were-not-raising-the-yahoo-bid/
http://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
http://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
http://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer/
http://web2innovations.com/money/2008/02/11/yahoo%e2%80%99s-official-response-to-microsoft%e2%80%99s-offer-no/
http://web2innovations.com/money/2008/02/12/and-here-is-what-microsoft-has-to-tell-yahoo/
http://biz.yahoo.com/prnews/080211/aqm241.html
http://finance.yahoo.com/q?d=t&s=msft
http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
http://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

Sony acquired digital media identification company Gracenote for about $260M

Sony has today announced that it has entered into an agreement to acquire Gracenote for about $260M plus other contingent consideration. Gracenote provides a range of music-related solutions including MusicID, which detects which song is currently being played by an application and loads track information for the user. MusicID leverages a database of over 6M CDs and 80M tracks and the technology has been in works since 1995 known previously with the name CDDB.

“Gracenote is a global leader in technology and services for digital media identification, enrichment, and recommendation, and these capabilities will be essential to the next wave of innovation in content, services, and consumer electronics,” said Tim Schaaff, SCA Senior Vice President, Software. “Sony sees tremendous growth potential in developing Gracenote as a separately run business unit, and by broadly embracing Gracenote’s platforms, Sony expects to significantly enhance and accelerate its own digital content, service, and device initiatives.”

“We are very pleased to join Sony as its strategic vision is very much in line with our own,” said Craig Palmer, Gracenote CEO. “Having a closer connection with the content and digital services community will accelerate adoption of Gracenote technologies, and the relationship will also give us the resources necessary to rapidly expand development of next generation products for the industry.”

Gracenote’s existing business will continue to operate separately. As a wholly owned Sony subsidiary, Gracenote will continue to develop new technologies in existing as well as new areas of operation. The senior management team will remain with the company. Sony and Gracenote anticipate that the transaction will close in late May, subject to certain regulatory and other approvals.

Many consumer music app services Apple iTunes, Yahoo! Music Jukebox, and Winamp use Gracenote for their music detection capabilities. Other consumer electronic brands are also associated with the company such as SonyEricsson, Philips Wireless Music Systems, Cadillac, Apple iPod, among others. 

More about Gracenote

Gracenote is a global leader in embedded technology, enriched content, and data services for digital entertainment solutions within the Internet, consumer electronics, mobile, and automotive markets. Formerly known as CDDB®, Gracenote delivers a substantially improved consumer experience in digital media devices and applications, plus media monitoring and other data services to the recording industry, making it an integral part of the digital media economy. Gracenote powers leading services including Apple iTunes, Yahoo! Music Jukebox, Winamp; home and automotive products from Alpine, Panasonic, Philips and Sony; and mobile music applications from Samsung, Sony Ericsson, KDDI (Japan), KTF (Korea), Musiwave (Europe), and others. Gracenote is headquartered in Emeryville, California.

Founders

Steve Scherf, Co-Founder & Chief Architect/Vice President of Service Development
Steve Scherf and business partner Ti Kan created the CDDB compact disc recognition service as a hobby in 1995 in order to get personal computers to display information about the CDs they were playing. To their surprise, the service became overwhelmingly popular, prompting them to found CDDB LLC in 1998. Later that year the company was acquired by Escient LLC, and the name was changed to Gracenote. After the acquisition, Scherf took on the role of Chief Architect for all Gracenote services. Scherf has since been the driving force behind nearly every fundamental Gracenote technology, cementing his position as one of the main pioneers of media recognition. Scherf personally designed and built the lion’s share of the current incarnation of the Gracenote service, a modular system that is extremely flexible, scalable and massively redundant, and is capable of easily incorporating new services as the need arises. He architected, designed, and developed the technology behind other Gracenote online products, such as Link, Discover, Music Enrichment, the MusicID® search engine, and others. In addition, Scherf has assimilated a number of third-party recognition technologies into the Gracenote suite, such as Mobile MusicID, re-implementing and improving them from the ground up. His pioneering work in media recognition also forms the basis of Gracenote’s embedded offerings. Prior to co-founding Gracenote, Scherf worked as Unix kernel developer for such companies as Altos Computer Systems, Acer America and Stratus Computer, delving into file systems, I/O performance, SCSI subsystems, networking and fault tolerance. Scherf graduated from the University of California, Santa Cruz in 1988 with a B.A. in Math and Biology.

Dale (Ty) Roberts, Co-Founder
Ty Roberts is widely recognized as one of the inventors of enhanced CD technology and is accredited with producing the industry’s first enhanced CDs. He joined Gracenote in November of 1998 after the company acquired ION, a multimedia and music technology company that he founded in 1993. Roberts serves as Gracenote’s chief technology strategist, providing technology direction and overseeing the creation of products and services that leverage the power of the Gracenote database to deliver information services. While at ION, Roberts produced the recording industry’s first enhanced audio CD titles, including David Bowie’s “Jump” and “Headcandy” from Brian Eno. He was the company’s lead technologist and innovator in adding multimedia content to traditional audio CDs. ION was also widely recognized as a leading provider of enhanced CD production tools utilized by recording and multimedia development companies. In September 1993, Bertelsmann Music Group created the first interactive record label after acquiring a 50 percent interest in ION. Prior to founding ION, Roberts was a founder and senior manager of LightSource, a software development company that produced multimedia and graphics editing software. Previously, he was a senior engineer at Pixar, where he created several award winning, Apple-based music applications including “Studio Session” and “Jam Session.” Roberts is Gracenote’s representative to the Secure Digital Music Initiative (SDMI), organization that is chartered with establishing standards for di gital music and music playing devices.

Ann Greenberg, Co-Founder
A pioneer in the online world, Ms. Greenberg is an inventor on seven U.S. patents, related to the delivery of content synchronized to audio recordings. She joined Gracenote in November of 1998 after the company acquired ION, a multimedia and music technology company that she founded in 1993. Greenberg served as Sr. Vice President of Marketing, Business and Strategic Development during her tenure at Gracenote until October 2001. No longer affiliated with Gracenote, Ms. Greenberg currently works as an independent consultant in the Bay Area. While at ION, Ms. Greenberg produced the recording industry’s first enhanced audio CD titles, including David Bowie’s “Jump” and “Headcandy” from Brian Eno. Greenberg designed the Jump’s groundbreaking interactive video, and produced the world’s first musician-hosted chat with David Bowie in 1994 – a format that has become standard practice in launching albums. Greenberg transitioned ION’s enhanced CD technology and business models into implementations that use the Web and are being utilized at Gracenote today. Prior to founding ION, Greenberg was the head of marketing for the Academy Award winning Edward R. Pressman Film Corporation, whose over 60 films include: Wall Street, True Stories, Talk Radio, Reversal of Fortune, Hoffa, Bad Lieutenant, The Crow and Judge Dredd. Ms. Greenberg studied Architecture and Cinema and earned a degree in Creative Arts & Cinema from California State University at San Francisco.

Scott A. Jones – Chairman of the Board and co-Founder
Scott Jones carefully sculpted the Gracenote company into existence by acquiring pivotal enabling technologies from CDDB, ION, Escient, Quintessential Player, and Cantametrix. He served as the company’s Chairman/CEO from 1998 to 2001 and is now Chairman of the Board. Jones raised significant capital, recruited a talented management team, contributed technology and intellectual property, and strategically guided Gracenote to pursue market segments that are the foundation of the Company’s success.

More about Sony Corporation of America

Sony Corporation of America, based in New York, NY, is a U.S. subsidiary of Sony Corporation, headquartered in Tokyo. Sony is a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. Its motion picture, television, computer entertainment, music and online businesses make Sony one of the most comprehensive entertainment companies in the world. Sony’s principal U.S. businesses include Sony Electronics Inc., Sony Pictures Entertainment Inc., Sony Computer Entertainment America Inc., and a 50% interest in Sony BMG Music Entertainment, one of the largest recorded music companies in the world. Sony recorded consolidated annual sales of approximately $70.3 billion for the fiscal year ended March 31, 2007, and it employs 163,000 people worldwide. Sony’s consolidated sales in the U.S. for the fiscal year ended March 31, 2007 were $18.9 billion. 

More

http://www.gracenote.com/
http://www.gracenote.com/company_info/press/042208/
https://doors.gracenote.com/developer/
http://www.sony.com
http://www.sony.com/SCA/index.shtml
http://www.streetinsider.com/Press%2BReleases/Sony%2BCorporation%2Bof%2BAmerica%2Bto%2BAcquire%2BGracenote/3566949.html
http://www.techcrunch.com/2008/04/22/sony-buys-gracenote-for-260m/
http://www.crunchbase.com/company/gracenote
http://www.techmeme.com/080422/p141#a080422p141
http://en.wikipedia.org/wiki/Secure_Digital_Music_Initiative

Amazon Web Services on its way to surpass $500M in sales this year

In a recent conference call Amazon has announced that it has reached over $131M in sales during the fourth-quarter of 2007 from its Web Services, which much or less means more than $500M in revenues for the entire fiscal 2008 for Amazon coming solely from its Web Services. When compared to the $5.7B for the same quarter coming in from its core business activates that amount looks tiny and small, but it is symbolic for the major transition undertaken at Amazon to shift the focus from simply an online retailer to a broader Internet company and mostly an innovator in the web space. We are also sure that the margins are surely greater in the web services field for Amazon than the profits derived from its traditional retail business. Standing alone the Amazon Web Services’ revenues are certainly huge and newsworthy. Amazon Web Services turn out to be a very successful strategy for Bezos’ globe-spanning empire to drive sales and profits up. The company claims as well there are over 60,000 different customers across the various Amazon Web Services.

What is also interesting and noteworthy from the information that recently became publicly available online is the fact that the biggest users of Amazon Web Services are not the army of web 2.0 start-ups but large-scale corporations from the banking and the pharmaceutical sectors.

More about Amazon Web Services

Amazon Web Services provides developers with direct access to Amazon’s robust technology platform. Build on Amazon’s suite of web services to enable and enhance your applications. We innovate for you, so that you can innovate for your customers.

Amazon WS include Amazon Elastic Compute Cloud, Amazon SimpleDB, Amazon Simple Storage Service and Amazon Simple Queue Service.

Amazon Elastic Compute Cloud (Amazon EC2) – Beta

Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. It is designed to make web-scale computing easier for developers. Amazon EC2’s simple web service interface allows you to obtain and configure capacity with minimal friction. It provides you with complete control of your computing resources and lets you run on Amazon’s proven computing environment. Amazon EC2 reduces the time required to obtain and boot new server instances to minutes, allowing you to quickly scale capacity, both up and down, as your computing requirements change. Amazon EC2 changes the economics of computing by allowing you to pay only for capacity that you actually use.  Amazon EC2 provides developers the tools to build failure resilient applications and isolate themselves from common failure scenarios.

Amazon SimpleDB™- Limited Beta

Amazon SimpleDB is a web service for running queries on structured data in real time. This service works in close conjunction with Amazon Simple Storage Service (Amazon S3) and Amazon Elastic Compute Cloud (Amazon EC2), collectively providing the ability to store, process and query data sets in the cloud. These services are designed to make web-scale computing easier and more cost-effective for developers. Traditionally, this type of functionality has been accomplished with a clustered relational database that requires a sizable upfront investment, brings more complexity than is typically needed, and often requires a DBA to maintain and administer. In contrast, Amazon SimpleDB is easy to use and provides the core functionality of a database – real-time lookup and simple querying of structured data – without the operational complexity.  Amazon SimpleDB requires no schema, automatically indexes your data and provides a simple API for storage and access.  This eliminates the administrative burden of data modeling, index maintenance, and performance tuning. Developers gain access to this functionality within Amazon’s proven computing environment, are able to scale instantly, and pay only for what they use.

Amazon Simple Storage Service (Amazon S3)

Amazon S3 is storage for the Internet. It is designed to make web-scale computing easier for developers. Amazon S3 provides a simple web services interface that can be used to store and retrieve any amount of data, at any time, from anywhere on the web. It gives any developer access to the same highly scalable, reliable, fast, inexpensive data storage infrastructure that Amazon uses to run its own global network of web sites. The service aims to maximize benefits of scale and to pass those benefits on to developers.

Amazon Simple Queue Service (Amazon SQS)

Amazon Simple Queue Service (Amazon SQS) offers a reliable, highly scalable, hosted queue for storing messages as they travel between computers. By using Amazon SQS, developers can simply move data between distributed components of their applications that perform different tasks, without losing messages or requiring each component to be always available. Amazon SQS makes it easy to build an automated workflow, working in close conjunction with the Amazon Elastic Compute Cloud (Amazon EC2) and the other AWS infrastructure web services. Amazon SQS works by exposing Amazon’s web-scale messaging infrastructure as a web service. Any computer on the Internet can add or read messages without any installed software or special firewall configurations. Components of applications using Amazon SQS can run independently, and do not need to be on the same network, developed with the same technologies, or running at the same time.

There are many other companies in the sector and among others are Nirvanix (recently received funding from European Founders Fund) and RackSpace’s Mosso.

More

http://www.amazon.com/gp/browse.html?node=3435361
http://www.wired.com/techbiz/it/magazine/16-05/mf_amazon
http://www.techcrunch.com/2008/04/21/who-are-the-biggest-users-of-amazon-web-services-its-not-startups/
http://aws.amazon.com/ec2
http://aws.amazon.com/s3
http://www.amazon.com/SimpleDB-AWS-Service-Pricing/b?ie=UTF8&node=342335011
http://www.amazon.com/Simple-Queue-Service-home-page/b?ie=UTF8&node=13584001
http://www.techcrunch.com/2008/01/30/amazon-earnings-call-details-web-services-use-up-more-bandwidth-than-amazoncom-the-kindle-is-a-hit/
http://www.techcrunch.com/2006/03/14/amazon-grid-storage-web-service-launches/
http://www.techcrunch.com/2006/03/14/amazon-grid-storage-web-service-launches/
http://www.techcrunch.com/2007/12/14/amazon-takes-on-oracle-and-ibm-with-simple-db-beta/
http://www.fabianschonholz.com/2008/03/11/a-hybrid-solution/
http://open.nytimes.com/2007/11/01/self-service-prorated-super-computing-fun/
http://www.nirvanix.com/
https://www.mosso.com/

VC deals show a decline in the first quarter of 2008

While angel investors are taking on venture capitalists and have last year invested as much as VCs did the VC deals show a decline in the first quarter of 2008. According to a new report from PricewaterhouseCoopers, venture capital investment in the United States headed south in the first quarter of 2008.

The report found that venture capital has dropped 8.5 percent to $7.1 billion in the three months ending March 31 from the $7.8 billion invested in the previous quarter, resulting in the lowest quarter since Q4 2006. Funding for early and late stage companies declined in the first quarter, though funding rose for expansion-stage companies. Some sources claim that new startups are being hit the hardest.

In more specific the VC money going into the software sector (including Internet, Web, IT) declined 9 percent quarter-over-quarter and flat year-over-year to $1.264B and is said to be equal with the amount invested in biotech companies ($1.267B). In perspective to the only Internet deals those declined 7 percent from the fourth quarter of 2007 to $1.310 billion, but were slightly up year-over-year. Clean tech investments have gone crazy and hit the peak in third quarter of 2007 during which period more than $851M was invested.

In the context of web 2.0 it could simply be the fact that it is dirty cheap lately to start a new web-2.0 company online and the VC money offered to those is always a bit more than what this company in particular needs from to get off the ground and stabilize. This could be seen as a reason why the VC deals for Internet only start-ups have slightly declined in the last 2 quarters. Another potential reason of this slight meltdown could be the fact that the first quarter of the calendar year is usually the quietest so part of the decline may be seasonal.

Yet, the most logical reason could be the overall economy meltdown in US, which might now have its impact over the VC market too.

More

http://www.pwc.com/
http://www.techcrunch.com/2008/04/18/is-the-venture-capital-party-over/
http://www.boston.com/business/articles/2008/04/19/venture_capital_funding_diminishes/
http://venturebeat.com/2008/04/18/its-official-venture-investment-declined-in-q1/
http://www.techcrunch.com/2008/04/20/vc-deals-in-charts-q1-2008%e2%80%94welcome-to-the-slowdown/
http://web2innovations.com/money/2008/04/18/angel-investors-have-invested-as-much-as-26-billion-in-start-ups-last-year-almost-as-much-as-vcs-did/
http://dondodge.typepad.com/the_next_big_thing/2008/04/angel-investors.html
http://www.techcrunch.com/2008/04/15/where-have-all-the-bold-vcs-gone/
http://www.nvca.org/ffax.html
http://www.paulgraham.com/googles.html
http://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/

Angel investors have invested as much as $26 billion in start ups last year, almost as much as VCs did

Today we have read over a few technology and business blogs that angel investors have poured $26B in start-up companies for the last year alone. Aside the fact this is an impressive amount of money it is also very close to what VCs did themselves – $29B. Furthermore the number of deals backed up by angels is way bigger than the number of deals venture capitalists closed – 57,120 vs. 3813 deals in behalf of the private investors. The sources also claim there are 258,200 active angel investors in the USA alone. The vast majority of the angel deals go for Software and Internet start-ups. Angel investors continue to be the largest source of seed stage and early stage start-up capital, with 39% of 2007 angel investments going there. Based on those reports it seems the angels most rely on mergers and acquisitions for their exits, while VCs are more inclined for IPOs.

Basically angels tend to invest just like VCs do except they do smaller investments $200K to $2M and they do about 15 times as many deals as VCs. In most cases angels have the same investment criteria and expectations of significant returns as the VCs look for. The average deal size (seed stage) is about $250K.

The larger angel groups in Silicon Valley and Boston do significantly more deals and invest between $350K and $600K per round, and maybe $1.5M to $2M per company.

The conclusion here is that launching a start-up company and then getting it off the ground is a whole lot cheaper today then it used to be some years ago. This somehow leaves most of the traditional VCs out of the game since either angel investors are beating them or the large Internet players are buying those start ups far before the VCs get their hands over them.

As Paul Graham from Y Combinator points out there is is growing gap between the $20K to $100k most angels will put in and the $2 million to $3 million that a venture firm will commit. He argues that what startups need are more investments somewhere in the middle to fill that gap. Most Web startups don’t need $2 million. They need $300,000 or $500,000. But most venture capitalists don’t think those types of investments are worth their while.

Some very active angel pools are as follows Keiretsu Forum, Band of Angels, Beacon Angels, Boston Harbor Angels, Common Angels, eCoast Angels, Hub Angels, Launchpad among others.

Here is an interesting list of tips for you on how to land an angel for your start up business.

(Picture by CNN)

More

http://dondodge.typepad.com/the_next_big_thing/2008/04/angel-investors.html
http://www.techcrunch.com/2008/04/15/where-have-all-the-bold-vcs-gone/
http://www.nvca.org/ffax.html
http://www.paulgraham.com/googles.html
http://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/
http://wsbe.unh.edu/cvr
http://www.keiretsuforum.com/
http://www.bandangels.com/
http://www.angelcapitalassociation.org/
http://www.beaconangels.com/
http://www.bostonharborangels.com/
http://www.commonangels.com/
http://www.ecoastangels.com/
http://www.launchpadventuregroup.com/
http://www.hubangels.com/

Federated Media raises huge round of funding – $50M

 In a period full with launch of new ad networks and deals about such Federated Media has raised a huge amount of money – $50 million in a C round led by Oak Investment Partners and Omidyar Network as a returning investor from their first round. The rumor has it the company has turned down a $100M buy out offer some time ago and apparently they have chosen to go through the investors’ road. The pre-money valuation for this road is rumored to be in the $200M range, which off $22M in revenues the company is brining in per year is not that overvalued at all. The company claims to be reaching a collective audience of over 50M people in US per month, which is an impressive number, yet those eye bolls are under the control of the web publishers and they may leave, together with their visitors, any time they do not like what are being paid for bringing them in. The company’s current investment comes on top of $7.5M previously taken. Federated Media claims profitability reached in September 2007.

Oak Investment Partners is actually buying out a minority stake for their $50M and this is not really a typical funding deal as it turns out.

“Federated Media has a proven, profitable business model with some of the industry’s most knowledgeable people at the helm,” said Fred Harman, general partner at Oak, who will be joining the FM board of directors. “The company has shown clear leadership in the emerging conversational media ecosystem. FM represents some of the best publisher and advertiser content on the Web, and with productive industry relationships, the company is poised to do amazing things going forward.”

With expertise in custom, integrated conversational marketing campaigns, FM has developed deep and long-term relationships with leading brand marketers and advertising agencies. Over the last three years, the company has expanded beyond its technology roots into verticals including parenting, business & marketing, media & entertainment, video gaming, graphics arts, automotive and more.

“We’ve been an early and avid supporter of Federated’s model,” said Casey Jones, vice president of marketing at Dell. “We look forward to continuing our work with the company as it expands its business.”

FM’s full portfolio of digital media brands includes web favorites such as Boing Boing, Ars Technica, Ask A Ninja, Digg, Dooce, Confessions of a Pioneer Woman and NOTCOT, as well as social networking applications including Graffiti Wall (in Facebook, Hi5, MySpace and other social networks), Watercooler (in Facebook, Bebo and others) and many more. FM is expanding its portfolio and has just this year brought on diverse sites such as Silicon Alley Insider, Destructoid and Buzzine. FM also manages sponsorship programs for a roster of events such as the twice-annual Conversational Marketing Summit and Outside Lands Music & Arts Festival.

“FM and Oak are a great match,” said Chris Albinson, co-founder and managing director of Panorama Capital, an early investor and board member at FM. “Oak will add great value to FM’s board, and we look forward to working with Fred and his team.”

FM generates revenue for its partner sites and event organizers through integrated sponsorships, advertising and other marketing services for global brands and their advertising agencies. Recent examples of premium brand-building programs include BMW’s 1-Series drawing contest, which invited Facebook members to custom paint BMW models using Graffiti’s digital illustrating tools, and the co-publishing and promotion partnership with American Express around their OPEN Forum blog for small business owners.

“We’re proud to bring Oak on board as major investor,” said John Battelle, founder and CEO of Federated Media. “The Oak team understands the media business and has relationships within the media and Internet industries that will benefit FM with insights from Silicon Valley as well.

More about Federated Media (FM)

Founded in 2005, FM represents more than 125 conversational media entrepreneurs who run more than 150 of the world’s most respected websites, blogs, and social networking applications. The company became profitable in the third quarter of 2007.

Federated Media (FM) is an advertisement serving company that works with many of the top blogs on the web. It acts as a middle man that connects medium sized websites/companies with large and small advertisers. FM is essentially an ad aggregator for companies that are too small to have direct relationships with big advertisers yet big enough to demand higher rates than available on services such as Google’s Adsense. It can distribute ads to numerous blogs helping advertisers and ad publishers avoid an overwhelming amount of business relationships.

FM does banner as well as text advertising on a CPM (cost per impression) basis. Pricing varies per blog property and can reach upwards of $30 per thousand impressions.

Founder is John Battelle

John Battelle is an entrepreneur, journalist, professor, and author who has founded or co-founded businesses, magazines and websites. Formerly a professor at the Graduate School of Journalism at the University of California, Berkeley, Battelle, 42, is also a founder and Executive Producer of the Web 2.0 conferences and “band manager” with BoingBoing.net. Previously, Battelle was founder, Chairman, and CEO of Standard Media International (SMI), publisher of The Industry Standard and TheStandard.com. Prior to founding The Standard, Battelle was a co-founding editor of Wired magazine and Wired Ventures. Before Wired, Battelle worked at the Los Angeles Times and MacWeek, a unit of Ziff Davis. John is currently CEO and Chairman of Federated Media.

In 2005-6, Battelle wrote The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture (Penguin/Portfolio), an international bestseller published in 26 languages. He maintains Searchblog, a daily site covering the intersection of media, technology and the internet at www.battellemedia.com.

Battelle was a founding Board member of the Online Publishers Association and sits on the board of the Interactive Advertising Bureau, as well as the Board of his children’s school.

Battelle has been named a “Global Leader for Tomorrow” and “Young Global Leader” by the World Economic Forum in Davos, Switzerland. He was a finalist in the “Entrepreneur of the Year” competition by Ernst & Young and has recently been named an “Innovator,” one of ten best marketers in the business, by Advertising Age and one the the “Most Important People on The Web” by PCWorld. He holds a bachelor’s and a master’s degree from the University of California, Berkeley.

Investors include Omidyar Network, New York Times, Mitchell Kapor, Andrew Anker, Mike Homer, Tim O’Reilly, JP Morgan and Oak Investment Partners, which has given the money for their last and biggest round to date.

More about Oak Investment Partners

Oak Investment Partners is a multi-stage venture capital firm with a total of $8.4 billion in committed capital. The primary investment focus is on high growth opportunities in Internet/new media, communications, information technology, financial services information technology, healthcare services and consumer retail. Over a 28-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 450 companies at key points in their lifecycle. Oak has been involved in the formation of companies, funded spinouts of operating divisions and technology assets, and provided growth equity to mid- and late-stage private businesses and to public companies through PIPE investments.

The space is very crowded and among other competitors Technorati is one of the companies holding greater chance for turning its fairly popular online brand into an ad network for blogs

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http://federatedmedia.net/
http://www.federatedmedia.net/press/2008/04/federated_media_receives_inves.php
http://www.oakvc.com/
http://www.crunchbase.com/company/federatedmedia
http://www.techcrunch.com/2008/04/15/federated-medias-50-million-c-round-confirmed%e2%80%94no-plans-to-buy-up-blog-partners/
http://www.techcrunch.com/2008/03/21/federated-medias-battelle-slams-rival-hints-at-investing-in-publishers/
http://www.techcrunch.com/2008/03/21/federated-medias-battelle-slams-rival-hints-at-investing-in-publishers/
http://www.crunchbase.com/person/john-battelle
http://web2innovations.com/money/2008/03/02/technorati-is-rumored-to-be-in-preparation-of-blogger-ad-network/