| Subcribe via RSS

Silicon Valley: Secret Weapon For The US Economy

I once took Kevin Maney for a flight over Sydney in a seaplane. He didn’t blink when we buzzed low over the Sydney Harbor Bridge. Similarly his steel nerves shine through in an absolutely awesome piece he has written for Portfolio.

Silicon Valley thrives in times like these. True entrepreneurs rise to the challenge and innovation and, subsequently, the economy as a whole benefits. As he says:

During a recession, Silicon Valley doesn’t curl up into a fetal position and pout. It continues to take chances, throwing sparks at kindling, knowing that something will catch fire. It’s the U.S. economy’s secret weapon.

Tags: ,

Extending The Publishing Paradigm: Book As Souvenir

Innovation guru John Wolpert is always pushing the envelope. And so it comes as little surprise to learn that he is innovating again.

This time his innovation is within the publishing arena with the release of his first novel, The Hidden Stage.

Set in a civic theatre not unlike the one in John’s hometown, he was inspired to write this story by a trip to his local theatre in 4th grade. He recalls how he had to go to a play there, and thought he was too cool to go.  He remembers having a serious attitude about it.  But half-way into the show, he became totally mesmerized.  The end of the first chaper of The Hidden Stage has a moment for the main character, Alex Cole,  that is not dissimilar to something that happened to him - and it changed his life.

John believes that a lot of professional writers are starting to wake up to the notion that you don’t have to print heaps of dead tree in advance in order to publish.

The new way - and while the concept of this isn’t new, the practicality of it is very, very new - is to focus on your maven market (in the case of The Hidden Stage, the 100,000 volunteers and professionals at civic theaters in the US), go viral with them, and give them the ability to order the book on Amazon.

He found that using Scribd.com was also a huge bonus.  He is able to tell exactly how the book is doing online.   In ten minutes, he had the whole book - all 450 pages - online and embedded for reading on both his own site and on Scribd.com.

John’s strategy was to first write a compelling book that was a page-turner and then to really lower the barrier to reading that first page.  As reading any book is a serious investment of time, the cover and the site were fundamental to getting that first page read.

He scripted a Flash website to give potential readers a really good sense of what they would be getting if they embarked on reading the story.  Then he gave them a simple one-click path to reading the whole book online, and finally there is the link to Amazon.

John also points out that there is an alternative through Amazon, which is not self-publishing, but simple print-on-demand through BookSurge.  Instead of authors having to put up $$ to do mini print-runs, finally print-on-demand is here.  He says it costs a little more for the book buyer, but it is great that we can finally get books into readers’ hands without having to line the pockets of publishers…all the rest is tapping the market and knowing your audience.

What he’s seen so far from feedback is that people start by reading the first page just to see what it is about.  Then they read a bit more, because the story is exciting.  If the whole story was not available for free online, he suspects that he would not be getting readers to even try the first few pages…it’s psychological.   But then they decide they want the printed book, and can get it from Amazon.

As they say:  “If your idea isn’t good, you lose.  If your idea isn’t viral, you lose.  If people don’t want to buy your souvenir, you lose.”

Tags: ,

NVCA Annual Survey: VC Glass Half Full Or Half Empty

December 18th, 2008 | 1 Comment | Posted in Entrepreneurship, Silicon Valley, Venture Capital

As with everything in life, it’s how you view it that determines your response. You could bitch about how cool the Bay area is this week or marvel at the clarity this brings to the marvellous vistas that abound in this beautiful part of the world.

Same thing with the National Venture Capital Association’s annual survey results. Yes, by all accounts venture guys will be investing less in 2009 than they have done in 2008, but so what.

If your business is compelling enough chances are you stand just as good a likelihood of getting funding in next as in any year. Let others hold back or fold, this increases your funding probability factor.

That said, don’t let me belittle the task ahead for both investors and entrepreneurs - the air is cooler, you get to see further, but the mountains are no less steep. Keep on the journey.

[Pic courtesy of mrjoro]

Tags:

iPhone Image Recognition: Snap And Tell

Wouldn’t it be great if you could take a picture of a book someone is reading in your local coffee shop and before the sugar sinks into your cappucino you have all the data on it and where you can buy it.

Or similarly, what if you could snap a billboard as you hurtle down the 101 (preferably with someone else driving) and before you reach your destination you’ve already pulled up more details on the concert being advertized and bought tickets.

Palo Alto-based SnapTell has the solution. Their image matching technology handles real life photos snapped on the majority of cell phones and parses these against a growing database of products. They are also able to extract text from pictures and use this to drive search.

The company has recently launched an iPhone app - read Jason Kincaid’s review.

Tags:

Microsoft Is (A)Live With Photo Sharing, Social Roll Out While Apple Searches

November 13th, 2008 | 1 Comment | Posted in Photography, Silicon Valley, Social Media, Software, search

Microsoft has rearchitected its Live.com portal to be more of a social network on which users can pull in data from various sources and interact with their friends. TechCrunch has more coverage:

Users are automatically connected with any friends they have on Windows Live Messenger, which is by far the most popular instant messaging service worldwide (Comscore: Microsoft Messenger has 268 million worldwide users, compared to 116 million for Yahoo and 6 million for Google Talk).

Users are asked to build out their profile, and can also bring in content they create on blogs (or any RSS feeds, Flickr, LinkedIn, Pandora, Photobucket, iLike, Twitter, Wordpress and Yelp. When you do something new on those sites, the information flows into Live.com for your friends to see (in a very similar way as FriendFeed, Plaxo and others do today). Eventually, says Microsoft, more than 50 partners will be supported. When users add photos, write reviews, and update their profiles directly on Live.com, that content will be put into the activity stream as well.

The hope, of course, is to get people to hang out a lot more at Live.com. At least those people who use Messenger, since they already have their contacts established. Like Yahoo, Microsoft is going with its strengths, which in their case is instant messaging.

Microsoft’s software plus services strategy has clearly infiltrated Live.com as well as their approach with Office. Live.com users can now access a variety of online services like mail, calendar, photos, online storage, etc., as well as downloaded services that include a mail client, instant messaging, Movie Maker, Photo Gallery, the Toolbar and other services. And now it’s also one big social network.

Included in this new roll out is a photo sharing site call Live Photos. ReadWriteWeb has a solid review.

They point out that the slideshow background changes color depending on the dominant color in the photo being displayed at any given time - this is an interesting feature and points to photo sharing services growing their intelligence of what is taking place inphoto as it were.

Furthermore:

You can share your albums with very granular permissions, and also share individual photos. Every photo can be tagged and your visitors can also leave comments.

On the other side of the spectrum, Apple is reported to be working on a search engine. This one’s more of a rumor than substantiated Valley lore at the moment. Again from TechCrunch’s Michael Arrington.

Tags: , , ,

World 2.0: Al Gore’s Purpose-Driven Web And Rupert Murdoch’s Maelstrom

November 9th, 2008 | 4 Comments | Posted in Silicon Valley, Web

There’s a new puppy headed to the White House. Unites States President-Elect, Barack Obama has promised his children this.

Al Gore, made reference to Barack’s promise in his closing keynote at the Web 2.0 Summit in San Francisco yesterday. He reflected upon his earlier days as a reporter and how he had been in the process of choosing a puppy for his kids.

He brought in someone to help him and his wife choose the type of puppy and the first question he was asked was, “What’s the purpose of the puppy?”

“You see”, said former US Vice President, Al Gore, “a puppy’s got to have a purpose.”

And so it is with our current puppy - the Internet. I was both fortunate enough to be around when this puppy was born, and to have been at the Palace Hotel yesterday and a part of the crowd that gave Al two standing ovations as he made it crystal clear to all of us: the Internet puppy now needs to be given a purpose.

Gone are the endless summer days when you could tweet about your innermost whimsies. Gone are the halycon days when you could simply garner a user base for the sake of doing so.

This puppy needs to be harnessed and made the most of.

As Barack proved with his campaign - a clear purpose, a driven determination and the power of the network can achieve what may appear unachievable at the outset.

Al has predictably urged us all to use the web for the higher purpose of setting the balance right with mother nature. I agree, but I also think this is not enough.

I believe if we keep the status quo, our silo’d nation states based on geographical boundaries and our us/them ideologies and try to solve our environmental problems then we will fail.

We need to change how we view our relationships with one another and with the planet as a whole. We need a true World 2.0.

Al used another analogy in his talk. He spoke about the retrofitting of factories during the industrial age with dynamos. Because these factories had been set up to work optimally based on an outmoded technology these upgrades had minimal impact. It was only when the factories were replaced with more modern ones specifically fashioned to work with dynamos that there was an order of magnitude improvement.

Similarly, while there have been some benefits since the launch of the Internet we have not seen an order of magnitude improvement to date. Instead we have numerous countries censoring web traffic, while others create monopolies for their own benefit to the detriment of the rest of the world.

What we need is to move beyond our current retrofit and architect a whole new way of operating as one world. If we truly want to move beyond, what Elon Musk called yesterday at the Summit, the “market armageddon”, if we truly want to tackle our pressing environmental issues then we need World 2.0.

How can we rely on nationalistic governments to get us out of the mess we are in? Many would argue they got us there in the first place. But this is not a blame game. We don’t have time for that.

We need to recognize that the current systems are an anachronism and that we need a step change now or we will truly be plunged into a time of true darkness.

In a talk he is giving tomorrow, Rupert Murdoch will point out that “we are in an era of unprecedented creative destruction”. He will call on all of us to embrace new technologies. His take is that “technology is ushering in a new golden age for humankind”.

I agree with him. We are at a critical point in our history as a planet. A point when we have but one true path ahead of us, a path that will require us to coalesce into one world and collectively tackle the hugely destructive forces that are all around us.

It is time for World 2.0 - how will you play a part? Will you sit back on your couch and wait to read about it in the New York Times? Or will you seize the moment and drive this forward?

Look at the change that “recovering politician” Al Gore has been able to achieve in a limited time and on a limited budget.

Isn’t it time we took this one giant step further! Let’s give this puppy a real purpose.

Tags: , , ,

Social Network User-Placed Videos Get Auditude With MySpace and MTV

November 3rd, 2008 | No Comments | Posted in Advertising, MySpace, Silicon Valley, Social Media, Startups, Web

Palo Alto-based Auditude is a startup focused on identifying videos, and parts of videos, uploaded to the web and then overlaying ads within these clips. They’ve amassed a database of over 250 million videos and 4 years of TV content and have now done a deal with MySpace and MTV that will allow these parties to monetize the videos being uploaded by MySpace users.

As MySpace’s president of sales and marketing is quoted as saying in the LA Times, “This is a game changer.”

No longer are the content players swimming against the tide - if this holds as a precedent, we should see a complete about face and some strong strokes as they all try to pull ahead in the race to monetize their content.

Tags: , ,

RockYou Raises More Funding To Climb Virtual Superwall

Eric Eldon at VentureBeat has a great piece on RockYou’s move into the Asia Pacific region courtesy of another round of funding from strategic investors in the region, namely Softbank and SK Telecom.

Why Asia Pac you might ask? The answer is - virtual goods.

Cracking the formula for monetizing social networks via virtual goods is the current holy grail. Where better than China to learn the ropes - bigger than web advertising, virtual goods are a $1.2bn business there already.

In addition, Softbank ploughed $400m into Xiaonei - a socnet similar to Facebook, but ahead of the curve: they recently introduced a virtual currency system. Teaming up with these players is a smart move.

UPDATE: Facebook has started to head down a similar track - they’ve moved to a micropayments system as of today.

Tags: , , , ,

LinkedIn Looks Out For Users By Opening Platform

Reid Hoffman has announced that his professional social networking tool, LinkedIn, has opened up its platform to third party developers. The current roll out includes a suite of, eight external and one internal, apps that are aimed at enhancing user productivity through file sharing, project management, arranging business trips etc.

Tags: ,

Open Mobile Markets: How To Drive Impetus

Open mobile platforms and markets are all the rage.

Apple generated $30m in the first month with its iStore, and has attracted a plethora of app developers of all shapes and sizes - from Electronic Arts through to start ups like Palo Alto-based Tapulous.

The first Android-powered GPhone is about to hit the streets and this means the Android market will be open for business. RIM is working on something similar and Microsoft is creating a platform for selling apps on its Windows Mobile systems called SkyMarket.

But take a closer look at the Android Market and one thing is glaringly obvious - it’s relatively deserted. Sure it’s a chicken and egg thing, but what made Facebook’s F8 platform so successful in gaining immediate impetus was the critical mass element.

Currently, only a handful of apps are ready for Android - MySpace has a basic version of its soc network ready, imeem’s Internet radio service and a number of weather related apps are the pick of the bunch.

Where is everybody? EA’s Spore, which is the best mobile game I’ve ever had the pleasure of playing would be a great marquee.

So here’s the rub. The beauty of the iPhone Store was that you could generate revenue immediately. The Android Market is currently missing that key revenue enabler - a closed commerce system.

As the number of app markets proliferates and the total addressable market mushrooms I suspect we’ll see a number of meta solutions appear. In particular meta systems that can market, track and monetize apps across all the platforms as well as tools that allow developers to code once, and release cross platform.

In the meantime, app store owners need to focus on getting traffic in the door, app developers buzzed about their platform and a monetization mechanism in place.

Tags: , , , , ,