VentureBeat |
- Don’t file your taxes without reading this
- The water net: There’s gold is them there pipes
- Spotify stops (well slows down) the music
- OnLive unveils new features for online game players
- Taptu allows iPad owners to “DJ your news”
- Is your city ready for electrical vehicles?
- NuCaptcha advertising network for video captchas launches self-serve platform
- Fabled white iPhone 4 may finally appear by end of April
- Game makers: Amazon’s Android appstore terms are greedy
- Halfbrick’s Monster Dash is a case study in mobile cross promotion
- Changing times: The venture capital social network
- Currensee raises $4M more for social network of traders
- Russia’s KupiVIP raises record $55M for online shopping club
- By 2015, 50 percent of companies will embrace gamification, Gartner says
- Internet ads finally surpass newspapers
| Don’t file your taxes without reading this Posted: 14 Apr 2011 09:00 AM PDT This series is brought to you by TurboTax Home & Business Edition – Guides You to Your Biggest Tax Refund. Leading up to the April 18 deadline, TurboTax and VentureBeat have teamed up to answer your most pressing tax questions. Missed one? Before you put that stamp on your return, be sure to check out these posts:
Our sponsor encourages you to read these related links. Filing a business tax extension, Business use of vehicles, What tax forms to file as a first-time business owner, What does healthcare reform law mean for businesses? |
| The water net: There’s gold is them there pipes Posted: 14 Apr 2011 09:00 AM PDT
Lux Research recently published a report on the state of water infrastructure worldwide, how data could be the future of water, and which startups to watch. The report estimates the size of the water infrastructure repair (drinking and waste water) market at $17 billion a year worldwide. Cities in the developed world lose on average 10 to 30 percent of their drinking water though leaks. The situation is even worse across much of the developing world, where, in total, water that could supply 200 million people is lost. On the wastewater side (sewers and associated piping), leaks can poison drinking water and cause environmental damage. Water companies call this “non-revenue water”, since they treat the water but cannot charge for it since it does not reach the user. Losing water means losing money. In a world impacted by climate change, there may also be less water to begin with. Leaks also impact customers’ bills. Atlanta undertook a $4 billion project to repair its drinking and wastewater networks, resulting in the highest water-service bills in the U.S. Even small water companies have hundreds of kilometers of pipes. A town of 50,000 typically has more than 200 miles of wastewater pipe alone. So how are leaks currently located? It’s a continuous process of monitoring and comparing current system behavior to historical behavior, such as last year’s pipe pressure compared to this year. Having an operator inspect a pipe manually inch by inch is common practice to track down a local leak, as is replacing an entire pipe. Robots can be used in repairs of pipes too small for humans as an alternative to excavating and replacing the whole pipe. What water companies need to locate and repair leaks more efficiently is a combination of more monitoring data and software to translate it into actions. Monitoring can range from GPS mapping of water lines, real-time water flow monitoring and automated recording pipe conditions using robots. But the most prominent new monitoring technique is smart water meters. Like smart electricity meters, smart meters can send data to water companies several times a day, rather than a few times a year, and reveal inconsistencies in flow that may be due to leaking pipes or stolen water. The problem with meters is that they produce huge amounts of new data that must be analyzed and acted upon. Like electricity companies, water companies need to harness this flow of data using analysis software that can identify and predict problem areas. One startup the report mentions in this context is TaKaDu which offers water monitoring as a service. The company’s software links to existing sensors in the water network like flow meters. Based on this information, it alerts operators to what problems are arising and where. Although only in existence for two years, TaKaDu already counts Thames Water (which runs London’s water system) as a client.
Startups aren’t the only companies to have spotted the potential in the water market. Mobile carrier Orange recently launched a new mobile operator specifically for carrying smart water metering data. And consumer electronics giant LG has created a new business division focusing on waste water treatment. So what’s next? Google Thirst? Watch this space. Companies: Lux Research, redzone robotics, TaKaDu |
| Spotify stops (well slows down) the music Posted: 14 Apr 2011 08:50 AM PDT
Spotify Free users will only be able to listen to 10 hours of music a month rather than the previously allowed 20 hours and play a particular track a maximum of 5 times. Previously tracks could be played an unlimited number of times. 10 hours is equivalent to around 200 tracks or 20 albums. New users can get access to Spotify on the previous terms for 6 months. Users who signed up for Spotify more than 6 months ago will be effected from May 1. Spotify offers a number of subscriptions. Spotify Free comes with ads. The Unlimited subscription is ad-free and costs €4.99 ($7.22) a month. Premium, which allows Spotify to be accessed on mobile and other non-PC devices, is priced a €9.99 ($14.46) a month. The new changes are clearly an attempt to steer users towards paid subscriptions and possibly also foreshadow the service which will eventually launch in the US. Although the changes are not drastic unless you are a heavy Spotify Free user (guilty as charged) I can’t help being reminded of Techcrunch’s April fools story in which Spotify closes down its European service to fund the U.S. launch. Spotify is based in Sweden and has 10 million users around the world (1 million of which are paying), mainly in Europe. The company has received funding of $120 million and is valued at around $1 billion. Companies: spotify |
| OnLive unveils new features for online game players Posted: 14 Apr 2011 08:38 AM PDT
It also unleashed the ability to automatically share the online service with friends on a user’s Gmail list. Both features are important to improving the social nature of OnLive, which is critical to help the service spread far and wide. It’s important for OnLive to broaden its audience so that it can attract a wider library of games from video game publishers. The more users, the more games it can attract. And the more games, the less likely those users are to go to a local video game store instead. OnLive is a server-based game service. It computes a game in an internet-connected data center and then sends compressed video of the action at a high speed to the user’s machine, where it is displayed on the screen. Since the response time is fast, the user doesn’t know that the game isn’t being processed on his or her local computer. With OnLive, users can log into their games from any type of computer, anywhere, and get access to dozens of games they can try out or purchase or rent, Netflix style. From the start, OnLive has offered Brag Clip recording, where you can share a snippet of your game session with friends as a video of the action. Now the automatic recording makes that feature more convenient, particularly when you reach a key moment of the game, said Joe Bentley, vice president of engineering at Palo Alto, Calif.-based OnLive. OnLive has also added new achievements and the Gmail-based OnLive Friend Finder. Finding friends automatically is what helped Facebook grow into a huge social network. OnLive recognizes that and will add more ways to invite your friends to join its service in an automated way. OnLive also has new email notifications for everything from friend requests to chat messages and video sharing. When users log into OnLive, they will also find an upgrade to the games list, with personal stats tracked for each game on the list, such as total play time, last time played, and achievements earned. OnLive has raised a large amount of funding, including $40 million from HTC in February. Other investors include Warner Bros., Autodesk, Maverick Capital, AT&T, British Telecommunications and The Belgacom Group. The company was founded nine years ago and has 250 employees. Because its technology is potentially disruptive to traditional game retailers, investors valued the company last year at $1.1 billion and, based on issued shares, its value could be as high as $1.8 billion. Companies: OnLive People: Joe Bentley |
| Taptu allows iPad owners to “DJ your news” Posted: 14 Apr 2011 08:13 AM PDT
Chief executive Mitch Lazar joined the company last year, and he said his main goal was to help Taptu narrow its focus to an area where it could compete and make money. Since then, the company has released newsreading apps for the iPhone and Android, and today it's announcing its iPad app too — or more specifically a "universal" iOS app that will deliver an optimized experience for the iPhone or the iPad, depending on your device. Even though the company, which is headquartered in Cambridge, England and Denver, Colorado, is no longer focused on mobile search, Lazar said the technology is still used in the app and it helps differentiate Taptu from better-known competitors. The company is "trying to come at it as a search problem," Lazar said. So rather than just allowing people to browse and see recommended content from RSS feeds, Taptu promises a broader spectrum of news, allowing users to find articles from "thousands more" websites, blogs, and Twitter feeds. And now users can personalize that approach for their own interests, DJing the news by combining their favorite news sources to create a new "stream" from scratch, or by taking one of the topic streams curated by Taptu and customizing it with their own sources. I've been playing with the Taptu iPad app for the last day or so, and I've been pretty impressed. As much as Lazar emphasized search and customization, I’ve been struck by with the app's design, which allows users to browse many headlines at once without feeling overwhelming. If a company is going to take on beautiful apps like Flipboard and Pulse, good design is a requirement. Companies: Taptu People: Mitch Lazar |
| Is your city ready for electrical vehicles? Posted: 14 Apr 2011 08:00 AM PDT
Ford used measures such as a streamlined permit process, utility rate structures that support nighttime charging, incentives such as high occupancy vehicle (HOV) lanes, preferred parking and tax incentives to determine the rankings. Ford also took into consideration specialized measures some cities are taking to support electric vehicles. A number of cities are putting special parking in place for EVs. In Honolulu all parking facilities with 100 parking spaces or more must designate at least 1 percent for EVs by the end of the year. Los Angeles will have designated charging spots throughout California where EVs can park after paying a $17 application fee. Boston, New York City and Philadelphia are looking into opportunities to promote travel between the cities by electric vehicle. In Houston, electricians can be given immediate online approval to install chargers. Ford plans to launch five electrified vehicles in North America by 2012 and Europe by 2013. Two Ford EVs, the Ford Fusion Hybrid and Ford Focus made it into the top 10 EVs of 2011 selected by the Kelly Blue book. Companies: ford |
| NuCaptcha advertising network for video captchas launches self-serve platform Posted: 14 Apr 2011 07:58 AM PDT
NuCaptcha, aims to put captchas (which ask you to type in a word on the screen so you can prove you are human and are not a bot) to work by providing an enhanced security process that actually generates revenue for publishers instead of just taking up space and annoying visitors with indecipherable characters. The company’s captcha solution, which embeds the mangled captcha text into a video advertisement that users must watch to complete the process, just launched a self-serving platform for brand managers and publishers. A self-serve platform for publishers could do well for sites looking to increase revenue through multiple sources, especially with this combination of security and advertising that kills two birds with one stone. And even if revenue isn’t an issue, NuCaptcha’s platform is more secure than traditional captcha and has a much higher rate of success, according to the company’s user testing. “Traditional captcha frustrates users because they are hard to read, are prone to security breaches and deliver zero revenue to publishers – there is Lots of Pain and No Gain in the market,” the company said. “Our aim was straight-forward: provide a better user experience while providing enhanced security and generate revenue for publishers.” The company said they plan to utilize the abundance of pre existing video ads that can easily be converted into new captcha ads through the ReCaptcha self-serve platform. NuCaptcha’s basic level ad platform is free to publishers and offers up to 25,000 NuCatptchas per month. The company also offers two other levels of premium access to their platform with more advanced features. Founded in 2008, Vancouver-based NuCaptcha has sales offices in New York and San Francisco. The company has under $5 million in angel investment and competition from Solve Media, ReCaptcha and AdsCaptcha. Check out the NuCaptcha demo embedded to get a better idea of their platform. NU Engage Montage from Christopher Bailey on Vimeo. Companies: NuCaptcha |
| Fabled white iPhone 4 may finally appear by end of April Posted: 14 Apr 2011 07:35 AM PDT
The news comes after a 10-month delay for the white iPhone 4 — Apple showed it off prior to the iPhone 4’s launch, but it never made its way to stores. The delay is unprecedented for Apple, a company that’s well-known for its attention to hardware detail. But it’s not the only issue that the iPhone 4 faced at launch — let’s not forget the antennagate fiasco. The device was delayed several times since the initial launch of the iPhone 4 in June 2010, and Apple finally said in October that the device won’t be released until spring 2011. It was later revealed that a possible hardware flaw with the white case and the iPhone's camera could be the culprit. One of Bloomberg’s sources pointed to complications with a sensor in the device as a possible cause for the delay. In January, we reported that the white iPhone 4 showed up in Best Buy’s internal retail systems for a potential March release. And last month, Apple SVP of marketing Phil Schiller tweeted a reminder that the device will be available in the spring. If the iPhone 5 gets delayed until the fall, as rumors seem to hint, delivering the white iPhone 4 now may serve to bump up iPhone sales until then. But honestly, I can’t imagine that anyone who has been holding out specifically for the white iPhone 4 for this long is anything but crazy.
Companies: Apple |
| Game makers: Amazon’s Android appstore terms are greedy Posted: 14 Apr 2011 06:00 AM PDT
In this battle, developers are worried they will be cannon fodder. The International Game Developers Association, the professional association for game developers, has sent Amazon an open letter accusing the company of adopting developer-unfriendly terms for its new Android app store. If Amazon doesn’t change its terms, developers will make less money on games and have less say in how their games are sold and merchandised, the group said.
Bellamy said the group raised its concerns with Amazon’s executives but there has been no change so far. Prices will likely be lower on smartphones and tablets, and the IGDA’s members are used to that by now. But the terms that Amazon has used are particularly tough, including a clause where it will pay the developer either 70 percent of the purchase price or 20 percent of the list price. Given the steep discounting that Amazon is doing, that means there could be very little money for a developer. Amazon started its app store a few weeks ago with 3,800 apps. To get attention, it offered a very big promotion, offering Rovio’s popular Angry Birds game for free. Rovio was likely able to dictate its terms to Amazon, since Angry Birds could help get Amazon off on the right foot as it takes on Apple, which has more than 50,000 games in the App Store. In some ways, the IGDA is a little late. Apple is the company that set the standard for low prices paid for apps, with many games going for free and many selling for just 99 cents. Whatever Amazon is doing, it can argue that it is just trying to compete with Apple. But the IGDA says that no other app store owner is asking for the same strict terms, like requiring that a developer give up the right to be able to set its price for a game and put that decision entirely in Amazon’s hands. Amazon is also requiring that developers permanently match the lowest price for a game anywhere else it is sold. If a developer discounts a game for a weekend on the iPhone, it then has to permanently set its price at that discounted figure on Amazon. The IGDA worries that Amazon will start a downward spiral in mobile game prices, much as Amazon did with the launch of downloadable casual web games. Those games were once sold for $20 each, but now they sell for $7 or less. Here’s the full text of the IGDA letter:
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| Halfbrick’s Monster Dash is a case study in mobile cross promotion Posted: 14 Apr 2011 06:00 AM PDT
Sometimes, mobile developers get lucky with a game that goes straight to the top of the charts. But other games can use all the help in the world to get noticed, and that’s what OpenFeint provides for them. By adding social cross-promotion and virality to mobile games, OpenFeint is starting to show it can be a kingmaker among mobile developers. Getting games discovered on mobile app stores is still exceedingly difficult, but as Halfbrick’s case study shows, it’s getting easier. OpenFeint has created a social platform that allows mobile game players to engage in chat, challenge friends to multiplayer matches, and see where they rank on leaderboards. Developers use the OpenFeint platform so that they don’t have to worry about anything except building a fun game. OpenFeint has additional tools and marketing programs to help the developers reach bigger audiences. OpenFeint can cross-promote games that are similar to the one being played, and it can help developers adapt an iPhone game to run on Android. The end result is more visibility for a game. With Halfbrick’s Monster Dash, OpenFeint promoted the game so that users would see it while playing Fruit Ninja. If they tapped on the little promo, they could immediately install the game and play it. After OpenFeint did the cross promotion, Monster Dash’s downloads spiked 123 percent in two days, said Phil Larsen, head of Brisbane, Australia-based Halfbrick. The game also jumped from No. 143 on the Apple OpenFeint has other ways for developers to get more players through promotions, such as Free Game of the Day and Fire Sale. The first offers a paid game as a free app for one day, while the Fire Sale uses a group-buying model to drive down the prices of premium games. Halfbrick was founded in 2001. OpenFeint has more than 5,000 games with more than 75 million registered users. Companies: Halfbrick, OpenFeint |
| Changing times: The venture capital social network Posted: 14 Apr 2011 06:00 AM PDT (Editor's note: Charley Polachi is a partner at Polachi, an executive recruiting firm. He submitted this story to VentureBeat.) As the founders of hip start-ups continue to get younger, even veteran VCs are finding it challenging to get face time with them and learn about potential hot deals before the competition. Recently, I had breakfast with a VC in his mid-forties who told me he had been working on developing his own social network to get to know these founders and cultivate them as prospects for investment. He's got his own approach to growing this talent via a "living social network". It works like this: He's identified several folks in their mid-thirties who he socializes with, travels with and even plays hoops with. They, in turn, are introducing him to the up and comers in their networks– the twenty somethings (or younger) who are planning to develop the next great company. This private VC social network is working, too. So far he has been involved with more than 10 great deals and put out several term sheets. Historically entrepreneurs with great ideas would seek out investment dollars on Sand Hill Road, Mount Money in Waltham or other centers of venture capital by a direct frontal approach. They'd bang on doors, ask for introductions, or beg for pitch meetings in order to bring their company to the attention of investors. This approach is still used, but the savvy investors have always been proactive in seeking out or "shagging" deals by attending lots of events, networking, digging around inside of MIT, Stanford and other academic centers. Many times, this work was delegated to an army of young associates who worked the event calendar aggressively to make connections for the older partners. Now with the advent of very young entrepreneurs who drop out of school at age 19 or 20 to found start-ups, the VC community has had to modify their approach to developing proprietary deal flow. One firm, Polaris Ventures, created Dogpatch Labs in Cambridge, San Francisco and New York to provide resources and venues to meet and nurture exciting new companies. General Catalyst has opened an office in Palo Alto with a team of very young and talented professionals whose charter is to aggressively seed great new companies (the goal is rumored to be over 50 investments). Most firms make extensive use of Facebook, Linkedin, Plaxo and proprietary intranets to maintain a presence in the emerging start up world. Even entrepreneurs are getting in the act using Linkedin Discussion groups to cover everything from raising money, finding talent and subletting space. Here in Boston we have BREW (Boston Region Entrepreneurship Week), BizSpark Meetup, Metrowest Networking Group and Mass Innovation Nights to name a few – all of them use social networks to help foster innovation. And it’s hardly a localized phenomenon. The lesson learned here pretty simple: In an industry that deals with the innovation economy, the VC community has to innovate itself. Traditional models don't work by themselves any longer. |
| Currensee raises $4M more for social network of traders Posted: 14 Apr 2011 04:00 AM PDT
Currensee considers itself a social network for traders to share and collaborate around daily trading activities. The company has a host of trading tools to help make informed trade decisions, including RSS feeds, instant messaging and Facebook widgets as well as a trader leader-board, which ranks investors based on performance. The company recently launched what it calls the “Trade Leaders Investment Program,” which allows anyone to follow and automatically copy investments from top traders in the network. It’s a valuable program if the company wants to move outside of educated and professional traders to a broader market, which may be the case, as more than $3 billion in volume has been traded through the program, according to the company. Almost a year ago, the company appeared to be experiencing rapid growth, with more than 1 million trades and 5,000 members in just 6 months. Since then, the company has close to 3 million trades, which would put it on pace since the launch. However, the total member count is just 8,000, which may explain the new investment program and expanding sales team. StockTwits appears to be the company’s closest competition, offering a social community, or network, of investors and traders with the ability to follow each other, exchange ideas and get input for planning their next trade. The Boston-based company, founded in 2008, previously secured a second round of funding for $8.8 million from from North Bridge Venture Partners, Egan-Managed Capital and Vernon & Park Capital. All three venture capital firms participated in this latest round. Companies: Currensee, Egan Managed Capital, north bridge venture partners, Vernon & Park Capital |
| Russia’s KupiVIP raises record $55M for online shopping club Posted: 14 Apr 2011 01:54 AM PDT
KupiVIP hosts up to 20 private online flash sales every day, much like the Western rival Gilt Groupe. It sells heavily discounted fashion and home goods from 1,200 luxury brands. The deal shows that social shopping is a trend that is remaking e-commerce around the globe. The third round of funding is a record for a Russian e-commerce business and will help the company offer white label e-commerce services to international brands. New investors include Balderton Capital, Bessemer Venture Partners and Russia Partners. Existing investors Accel Partners and Mangrove Capital Partners did not invest in the new round. Dharmash Mistry, a partner at Balderton Capital, said Russia is the second-largest internet market in Europe and will soon overtake Germany thanks to its 35-percent year-over-year growth. KupiVIP was launched in October 2008 and has 750 employees. Its prices are typically reduced 70 percent for its members. But the company has also launched its “private e-commerce services” for other retailers such as Quiksilver and TSUM (Russia’s leading luxury retailer). The Moscow-based company was founded by 28-year-old Oskar Hartmann, a German-born entrepreneur. The company previously raised $20 million in January 2010 from Accel and Mangrove. Revenue in 2010 grew 600 percent. Hartmann says the company is only beginning to scratch the surface. More than 200,000 customers log in each day, and the company delivers millions of packages a year. Companies: Accel Partners, balderton capital, Bessemer Venture Partners, KupiVIP, Mangrove Capital Partners, Russia Partners People: dharmash mistry, Oskar Hartmann |
| By 2015, 50 percent of companies will embrace gamification, Gartner says Posted: 14 Apr 2011 01:28 AM PDT
Gamification is the process of making non-game things more game-like, such as making a business contest more competitive by adding a leaderboard or achievements. In the past year or so, the idea has gained a lot of currency among investors, startups and game industry veterans. We have written many stories about gamification as espoused by Gamification conference organizer Gabe Zichermann and the somewhat different “game thinking” touted by game design veteran Amy Jo Kim, but it’s interesting to see the words of the early proselytizers of this trend emerge from the high priests of enterprise analysis at Gartner. In fact, the idea of gamification is getting so popular it’s stirring backlash, said Tim Chang, principal at Norwest Venture Partners. With Gartner on board, the advocates of gamification can feel like they’re becoming more credible. By 2014, the market researcher predicts that a gamified service for consumer goods marketing and customer retention will become as important as Facebook, eBay or Amazon. More than 70 percent of Global 2000 organizations will have at least one gamified app. “Gamification describes the broad trend of employing game mechanics to non-game environments such as innovation, marketing, training, employee performance, health and social change,” said Brian Burke, an analyst at Gartner. “Enterprise architects, CIOs and IT planners must be aware of, and lead, the business trend of gamification, educate their business counterparts and collaborate in the evaluation of opportunities within the organization.” Chang at Norwest said that gamification will infiltrate much of society and business in the next year. But Jeremy Liew, a partner at Lightspeed Venture Partners who spoke on game investments at the SF Game Developers Workshop this week, is one of the skeptics. He said that gamification won’t work if you don’t want to do the activity that is being gamified. For instance, he said, “I should eat less and exercise more. But I don’t.” As an example of gamification, Gartner cited the U.K.’s Department for Work and Pensions, which created an innovation game called Idea Street to decentralize innovation and generate ideas from its 120,000 people across the organization. Idea Street is a social collaboration platform with the addition of game mechanics, including points, leaderboards and a “buzz index.” The employees went wild for it. Within the first 18 months, Idea Street had approximately 4,500 users and had generated 1,400 ideas, 63 of which had gone forward to implementation. Further examples include the U.S. military’s “America’s Army” video-game recruiting tool, and the World Bank-sponsored Evoke game, which crowdsources ideas from players globally to solve social challenges, Gartner said. Gamification gets people more engaged, helps change behaviors and stimulates innovation, Gartner said. The applications in business include accelerating feedback cycles by incenting users to give feedback. Gamification sets clear rules and a compelling narrative for players to feel empowered at a task. And it sets up tasks that are achievable. Companies: Gartner People: Amy Jo Kim, Brian Burke, Gabe Zichermann, Jeremy Liew, Tim Chang |
| Internet ads finally surpass newspapers Posted: 14 Apr 2011 12:41 AM PDT
The Internet Advertising Bureau reported that full-year 2010 internet ad revenues were $26 billion, up 15 percent from 2009. The report from IAB and PwC also said that internet ad revenue came roaring back from the recession and had a strong fourth quarter. While competition for ad dollars on the internet is fierce, web sites can take heart that their medium is back to strong growth. Fourth quarter internet ad revenues were $7.4 billion, up 19 percent from a year ago.That helped the internet beat out newspapers, which reported revenue of $22.8 billion. The ad revenues related to TV will still higher. Regular TV distribution ads generated $28.6 billion, while cable TV generated $22 billion in revenue and broadcast TV reported $17.6 billion. But newspapers should take heart in the fact that new media have not killed off old media. Radio ads are still a $15 billion business. Companies: Internet Advertising Bureau |
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