Jumat, 15 April 2011

VentureBeat

VentureBeat


Microsoft data center czar to head Apple’s expansion in the cloud?

Posted: 15 Apr 2011 08:58 AM PDT

Looking to expand its presence in the cloud, Apple has reportedly hired Kevin Timmons, the former head of Data Center Services at Microsoft, whose departure from the company was confirmed to Data Center Knowledge.

The news comes after recent speculation that Apple is rumored to be working on a cloud-based storage service to help users store music, videos, and other media on the Internet and access it across their various devices. Some time back, the company was reportedly considering making MobileMe, its current cloud storage service, free in order to make way for the newer service.

Timmons, who joined Microsoft in 2009 from Yahoo, helped oversee the completion of new data centers in Dublin and Chicago and was reportedly on target to reduce the building costs of its new data centers by fifty percent. The infrastructure developed through his tenure helped power some of the company’s most important online services such as Bing, Exchange Online, and Windows Azure.

Last November, Olivier Sanche, Apple’s previous director of global data center operations, passed away unexpectedly from a heart attack. But according to data center expert David Ohara, Timmons will not be replacing the position previously held by Sanche, which was filled by another Apple executive in the department.

While his rumored position at the company is unclear, Timmons holds a strong reputation for building and managing cost-effective data centers, making him a valuable addition to help lead the expansion of its data center facilities.

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RIM CEO defends BlackBerry PlayBook against meany critics

Posted: 15 Apr 2011 08:07 AM PDT

Research in Motion’sRIM BlackBerry PlayBook demo BlackBerry PlayBook tablet has (deservedly) faced heat from reviewers for its missing features and over-reliance on BlackBerry phones. But RIM co-CEO Jim Balsillie says those complaints are misguided, Bloomberg reports.

While it’s normal for a CEO to defend a fledgling product — especially a product whose success holds an entire company's future on the line — Balsillie may end up appearing clueless and out of touch by refusing to acknowledge actual issues with the PlayBook's launch.

In response to critics who said that the PlayBook was rushed to the market, Balsillie said in a TV interview with Bloomberg: "I don't think that's fair. A lot of the people who want this want a secure and free extension of their BlackBerry."

He's referring to the some 60 million BlackBerry phone users worldwide who can pair the PlayBook to access their email, calendar and other applications, as well as use mobile Internet. Without being paired to a BlackBerry phone, key functionality from the PlayBook — including email, contacts and calendar apps — are completely inaccessible. That means the device is practically useless to the hundreds of millions of smartphone users on other platforms worldwide. RIM has said that the PlayBook will get independent versions of email, contacts and other apps this summer.

Apple's iPad has so far sold over 15 million units since it launched last April, and Android tablet companies like Samsung and Motorola have a head start on RIM.  But Balsillie maintains his game face: ""I like our chances for a lot of share," he said. "We're very excited about where we are."

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Glam hits $100M revenue, plans to file IPO as early as fall

Posted: 15 Apr 2011 07:49 AM PDT

glam.comGlam Media, the media and advertising company focused on women, has hit a run rate of $100 million in annual revenue and plans to file to go public as early as this fall, according to a well-placed source who requested anonymity because of the sensitivity of the matter.

Glam is said to be in the early process of hiring bankers to help it with the IPO, but won’t file to go public until after the slow summer months are over.

Glam’s model is a straight-forward one: It serves advertising to independent authors in return for a cut of the revenue.  Those authors, who write about everything from fashion to shopping, keep 50 percent of the advertising revenue; Glam keeps the other 50 percent. While Glam signs a contract with bloggers and other writers that essentially gives Glam the right to control the relationship with advertisers, the company doesn’t actually take ownership of the blogs or their content. This contrasts with a model like Sugar, another women-focused media company, that owns much of its content, and recently raised $15 million.

Glam, which now says it is the sixth largest web property in the U.S, with a reach of 90 million monthly uniques, has been growing and hiring aggressively at a time when other large media companies have been in decline. Glam now rivals the giant portal AOL in reach.

Glam was founded about six years ago, when chief executive Samir Arora met the company’s six co-founders and wrote them their first $1 million check. It has had its share of controversy, with many critics saying it’s model is a house of cards, however it has soldiered on and continued growth throughout the recession, according to insiders.

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Apple and Google steal market share from video game systems

Posted: 15 Apr 2011 07:38 AM PDT

Apple and Google have taken about 8 percent of the overall video game market, according to an analysis by Flurry. And when it comes to portable games, Apple and Google now have about 34 percent of the market revenue.

That’s a big change in just a few years, and one that is bound to have an impact on video game players such as Nintendo, Sony and Microsoft. And for the first time, sales of smartphone and tablet games have grown to $800 million, exceeding the estimated $700 million in revenue from PC games sold at retail.

A year ago, Flurry said that the iPhone and iPod Touch grabbed about 5 percent of the U.S. video game market from 2008 to 2009. Now, the rapid expansion of both the iOS (iPad, iPhone, iPod Touch) and Google Android devices has changed the market even more.

“The magnitude of disruption is increasing, in particular within the portable gaming category,” said Peter Farago, vice president of marketing at Flurry, a major analytics and recommendation service for mobile apps. The analysis is based on publicly available data such as NPD market research numbers in the U.S. and Flurry’s own data based on 12 billion aggregated user sessions per month across 80,000 mobile apps, including iOS, Android and tablet devices. On the video game side of the equation, Flurry does not include revenue from online games and PC games sold at retail.

From 2009 to 2010, iOS and Android game sales grew from 5 percent to 8 percent market share in the U.S. That represents a change in revenue from $500 million in 2009 to $800 million in 2010. Most of the revenue was generated by iPhone games.

Overall, the total U.S. game revenue from the consoles and portables was flat last year, growing to $10.7 billion from $10.4 billion in 2009. But while console gaming’s share of that total grew slightly from $7.4 billion to $7.8 billion in 2010, portable gaming software sales fell. Overall portable game market share dropped from 24 percent in 2009 to 16 percent in 2010. That’s most likely due to the big gains by Apple and Android.

In 2011, Flurry expects to see continued smartphone and tablet growth, fueled by the launch of the iPad 2, the launch of the iPhone on Verizon, and future hardware releases on both Android and Apple platforms. The enablement of in-app purchases on Android, a change which fueled growth on Apple, will also be a big deal, as well as the expected launch of the iPhone 5.

Nintendo chief executive Satoru Iwata recognized the threat in his keynote speech at the Game Developers Conference, saying that mobile platforms “have no motivation to maintain the value of gaming,” meaning the prices for mobile games are low, forcing developers to sacrifice quality. It remains to be seen if the launch of the 3DS handheld from Nintendo this month will help Nintendo retain share. But Nintendo’s own count shows that the Nintendo DS had a better sales start than the 3DS.

In 2010, Apple and Android grew to 34 percent of the portable game market, compared to 19 percent in 2009. During that time, the Nintendo DS shrank from 70 percent to 57 percent, while the Sony PlayStation Portable shrank from 11 percent to 9 percent. Smartphone and tablet sales spiked 60 percent during 2010. The net effect is that portable gaming, without mobile game sales, shrank from $2.7 billion in 2009 to $2.4 billion in 2010.

Wedbush Morgan Securities video game analyst Michael Pachter said that the "onslaught of $1 games is going to continue" and that “[Nintendo and Sony] are going to have to share the market with Apple and Android." Flurry concluded, “Mario may indeed be standing on a burning platform,” a reference to a warning Nokia’s new CEO, Stephen Elop, gave to employees about whether to stand on a burning oil platform or dive into the dangerous water below.

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Moolah Media aims to fix “broken” mobile ads

Posted: 15 Apr 2011 06:00 AM PDT

moolah media mobile redirect

People are doing more and more Web browsing on smartphones, and that's a problem for online advertisers, according to mobile ad network Moolah Media — a problem that the company is tackling with its new “mobile redirect” advertising.

The San Francisco startup estimates that 10 to 18 percent of clicks on email advertising, as well as 2 to 8 percent of clicks on display ads, come from mobile devices. However, many of those ads point to web pages that aren't optimized for phones. Those ads might present users with a form that’s too complicated to fill out on a mobile keyboard, or they might include Flash content (which doesn't work on Apple devices), and so on.

And there's a big cost to those lost opportunities, says Moolah chief executive Shawn Scheuer, who claimed that more than a billion dollars are lost annually because smartphone users are directed to PC-formatted ads.

Moolah says its new ad unit solves the problem by detecting the device that's viewing the ad. If the ad is being viewed on a smartphone, it will redirect clicks to a smartphone-optimized page. It sounds pretty simple, especially if, like me, you’ve already seen a fair amount of mobile-optimized web pages and ads. But Scheuer told me it's still not a widespread practice, especially in the performance-based ad world (where advertisers pay for actions, such as clicking on the ad or filling out a form, rather than impressions):

In theory this is something that the advertiser/website owner could do. A lot of content websites have created mobile pages. Showing content and monetizing mobile traffic are completely different things.

Moreover, lead generators don't necessarily have the knowledge or systems to be effective in mobile. Many lead generators take all their leads from web forms, but have no experience with call centers. We provide the offers and the platform to make them effective (real time reporting, device optimization, etc). In many instances we are creating the mobile offer for the advertiser and using other advertisers/third parties for offer fulfillment.

Moolah Media launched last November and is self-funded.

VB Mobile SummitCalling all mobile executives: This April 25-26, VentureBeat is hosting its inaugural VentureBeat Mobile Summit, where we’ll debate the five key business and policy challenges facing the mobile industry today. Participants will develop concrete, actionable solutions that will shape the future of the mobile industry. The invitation-only event, located at the scenic and relaxing Cavallo Point Resort in Sausalito, Calif., is limited to 180 mobile executives, investors and policymakers. We’ve pretty much finalized the invite list, but have a few spots left. Request an invitation.

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Deals & More: Instructure gets $8M for web-based school tool

Posted: 15 Apr 2011 06:00 AM PDT

Today’s funding announcements include solutions for learning management, private car sales and marketing:

Instructure brings in $8M for online education system: The developer of Canvas, a cloud-based learning management system, has raised a second round of funding from OpenView Venture Partners, EPIC Ventures, TomorrowVentures and Tim Draper of Draper Fisher Jurvetson, peHUB reports. Co-founded in 2008 at Brigham Young University, the company’s system is used by more than 30 educational institutions today, primarily as an alternative to the popular system Blackboard.

CarLotz raises $525K for car sales: The Richmond, Virginia-based company has raised equity funding in its first round, according to a filing with the SEC. Co-founded by three alumni of Harvard Business School, the company was started this year and plans to improve the process of used car sales by owner.

MarketShare raises $32M for marketing analytics: The Los Angeles-based company has raised funding from Elevation Partners to help businesses determine the most effective media mix for marketing investments. The company plans to use the funding in part to fuel strategic acquisitions and expansion into Asia-Pacific, Europe, the Middle East and Africa.

Television ad company INVIDI completes $49M round: The developer of addressable advertising solutions has completed its fourth round of funding with participation from DIRECTV. The New York-based company raised the first $23M of its fourth round from Google and several other investors last May. The company’s Avatar software, which allows TV advertisers to deliver targeted messages to households during commercials, will be inside DIRECTV DVR digital set-top boxes starting in 2011.

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Screw you. Pay me.

Posted: 15 Apr 2011 06:00 AM PDT

Most entrepreneurs – especially those in the b-to-b space – have found themselves saddled with a client who decides at the end of a project that they want to either renegotiate the terms of the deal or not pay at all.

Excuses vary – from “We ended up not using the work” to “it’s really not what we were after”. Mike Monteiro, co-founder and design director at Mule Design, replies to all of them the same way: “F*ck you. Pay me.”

This talk, explaining the philosophy and co-presented with his attorney Gabe Levine, is geared toward the creative services industry, but should resonate with any small business owner who has problem clients.

Topics covered include the importance of contract creation (along with useful tips on what should be included) and how to handle worst-case scenarios, such as clients shifting direction mid-stream and lay offs. (Warning: As you might guess from Monteiro’s reply, the language in this talk can get a bit salty.)

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A Clockwork Orange? EmSense can monitor your emotional reactions to media

Posted: 15 Apr 2011 06:00 AM PDT

Market researchers would love to read your mind as you sit in your home and watch on your PC or TV. With EmSense, they can do just that.

EmSense has come up with something called “quantitative neurometrics.” That means they give you a headband that senses your brain waves as you watch something and then they record the data for researchers. The hope is to reinvent behavioral research and get much better feedback about what works and what doesn’t.

The San Francisco company is launching its “in-home” research panel employing the EmBand monitoring technology today. It can measure positive or negative emotional responses to whatever you’re watching. It can also measure your cognitive engagement, or how much attention you’re paying, by measuring your brain-wave activity. It’s not that different from what Neurosky offers with its brain-wave monitoring technology for toys, but EmSense is focused on a different target market.

Keith Winter, chief executive of EmSense, said that the market research industry has long sought a way to measure emotional responses more accurately so that it can get precise reactions to advertising, creative concepts, packaging and the shopping experience. The advances in neuroscience and electronics have opened the door for this measurement with brain-waving monitoring and other bio-sensory metrics.

EmSense has partnered with market research companies such as Millward Brown and SymphonyIRI Group, which both do research online. But EmSense can also do more accurate, in-home field studies. The company recruits respondents who voluntarily share their information. (Yes, it’s a little creepy and it reminds me of the 1971 film A Clockwork Orange (pictured), but the difference is these test subjects are volunteers. Some people probably really do want to share their exact feelings about what they’re watching). After the user opts in twice, EmSense ships the user a kit with an EmBand wireless headset and a wireless receiver for use with his or her PC. The user is directed to a specific web page and offers their responses. In turn, the users are compensated for their time.

EmSense has 80 employees and it was founded in 2004. Rivals include NeuroFocus and Sands Research. To date, EmSense has tested more than 100,000 respondents in 25 countries. The company was founded by technologists from Hewlett-Packard and the Massachusetts Institute of Technology and the company has applied for 40 patents.

EmSense raised $9 million in a third round of funding back in 2009
from Technology Partners and the Foundry Group.

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mSpot offers Netflix-like movie club for new streaming movies

Posted: 15 Apr 2011 03:00 AM PDT

Netflix has made a big splash with its library of movies for low fixed monthly subscription fees. Now mSpot, which provides streaming movie services for a bunch of big carriers, is offering similar monthly deals with its low-priced mSpot Movies Club for streaming movies. But mSpot’s interesting trick is that it plans to offer more recent movies than Netflix does at similar prices.

The strategy is interesting. mSpot is offering more recent movies than Netflix does, and it comes close to matching Netflix’s all-you-can eat movie pricing. If it works, mSpot’s many partners could become a lot more competitive against Netflix in the streaming movie market.

Daren Tsui, chief executive of Palo Alto, Calif.-based mSpot, said in an interview that mSpot has been able to secure new release movies on the same day that studios release them on DVDs. Netflix, by contrast, has to wait as much as 28 days longer, mainly because of the way the hierarchy works.

The studios release movies at the theaters first, where moviegoers pay top dollar. Then they release them on premium pay TV services such as HBO, iTunes and on DVD movie discs. Lastly, they release them to Netflix, which offers thousands of movies for a fixed subscription rate on DVDs and via streaming video. By getting films on the same day that DVDs are launched, mSpot is trying to get in line ahead of Netflix. (We’ll see if that works, given Netflix’s attempts to pay for original content).

“We think the idea of waiting for a DVD to show up at your house is old school now,” Tsui said. “Netflix’s problem is that it does not offer new releases as streaming videos. We can do that.”

mSpot can do that because it charges a la carte fees for its movies. In the past, it charged $3.99 per movie. But as part of the mSpot Movies Club, mSpot will now charge only $1.99 to $3.99 per a la carte movie. Tsui says the company will get by on a lower profit margin. But users can get the better deals on movie pricing by purchasing prepaid credits for a select number of rentals every month.

Now the fees are much lower than they used to be. A basic mSpot membership costs $4.99 for 20 movie credits, or up to 4 movies. You can pay $7.99 a month for the Plus membership, which gives you 40 movie credits, or up to 8 movies. And you can pay $15.99 a month, offering 80 movies credits, or up to 16 movies. As with typical club deals, you have a limit on how many you can watch per month, in contrast to Netflix’s unlimited model. The studios prefer some kind of limit, since they want a higher purchase price per movie.

In some ways, that pretty much matches Netflix. You can get as many movies as you can watch from Netflix, but in reality you probably only get to watch five or six for your fixed subscription fee. If you stream an mSpot movie to your PC, you can watch it there and pick up where you left off on an iPhone or vice versa.

mSpot has managed to get wide distribution. It is available on the PC, Mac, 10 mobile carriers and 50 handsets. But so far it has only 6 million subscribers across all of its partners. With the new pricing plan, Tsui says the company hopes to change that and catch up with Netflix, which has more than 20 million users.

mSpot also offers a cloud-based music service for Android devices, iPhones and computers. mSpot was founded in 2004 and it has 68 employees. Its customers include AT&T, Verizon, Sprint, and others. It has raised $2.3 million from Trinity Ventures.

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Sony’s milestones: 50M PlayStation 3s sold, 8M PlayStation Moves shipped

Posted: 15 Apr 2011 01:07 AM PDT

Sony said today it has sold more than 50 million PlayStation 3 consoles to date and shipped more than 8 million PlayStation Move motion-sensing controllers.

Those are astounding numbers for any consumer electronics products. But in the video game business, they still mean that Sony is in third place among the Big Three. The good news is that all three major console makers are enjoying a robust and profitable business in this generation of consoles.

By comparison, Nintendo has sold more than 86 million Wii consoles and Microsoft has sold around 53 million Xbox 360s. And Microsoft has shipped more than 10 million motion-sensing Kinect systems since November. Sony marked the milestones at the end of its fiscal year, as of March 29.

The PlayStation 3 went on sale in 2006, while the PlayStation Move went on sale in September. Since sales continue to be brisk, Sony isn’t expected to launch a new video game console anytime soon. Nintendo, by contrast, has seen a significant slowdown in the past year for the Wii, and it is now rumored to be announcing a new console at the E3 game show in June.

Sony also said that the PlayStation Network now has more than 75 million registered accounts in 59 countries, across both the PS 3 and the PlayStation Portable. The PlayStation Store on the network has a total of 105,988 downloadable items, including games, movies and TV shows. Sony and its partners now have 155 Move titles on the market, while the PS 3 has 2,128 games available. Those games have sold more than 480 million units worldwide. In the U.S., more than 80 Move titles will be available by the end of the year.

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Facebook ‘Likes’ journalists; seeks to build relationship with reporters

Posted: 14 Apr 2011 10:08 PM PDT

Facebook and JournalistsFacebook has hired former Mashable Community Manager Vadim Lavrusik for the new position of Journalist Program Manager that will be charged with building relationships with news organizations.

The new position is the latest step by the social media giant to improve the quality of professional news on its website by advocating the use of Facebook as a reporting and promotional tool for journalists.

Lavrusik will manage the new Facebook Journalists page created last week as well as organize journalism-focused events like the one scheduled at Facebook's Palo Alto, Calif. headquarters April 27.

The motivation for Facebook to improve their relationships with the media could be in part to the company wanting to steal some steam away from microblogging site Twitter, which arguably is a more popular reporting tool for journalists.

“The goal is to build programs that bridge the gap between journalists and Facebook,” Lavrusik told CNN. “Twitter is very public. It’s an informational platform. It’s easy to see the application for news.”

However, there are plenty of other reasons they would want to get more involved with journalists and reporting.

News organizations that directly worked with Facebook experienced a 300 percent increase in referral traffic to their websites, the company points out.

If Facebook became an essential tool for reporting professional news, those numbers would be more sustainable and add stability to Facebook's high valuation.

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Did Twitter turn down a $10B offer from Google and force Ev Williams out?

Posted: 14 Apr 2011 09:09 PM PDT

An intense look at the dynamics of the team that built and is currently running white-hot blogging startup Twitter shone new light on the company today, after Fortune magazine penned a lengthy article suggesting former CEO and co-founder Ev Williams was forced out rather than leaving voluntarily in October and that the company once turned down a $10 billion buyout from Google.

It also detailed how the company has experienced continual failure as it tries to launch new, money-making products even as its site traffic has leveled off.

Neither representatives from Google nor Twitter responded to requests for additional comment Thursday.

The Fortune article also made much of previously reported news that Google tried to buy Twitter for as much as $10 billion last fall — buzz that was shot down by current CEO Dick Costolo as recently as February as false, when he told the Mobile World Congress, "I don't know where these things come from. It's just a rumor."

Still, Fortune claims the Google offer did happen, along with a plethora of others reported by VentureBeat at the time, and now questions why Twitter didn't sell at such an outlandishly high figure given its scant $45 million in ad revenue in 2010.

Fortune asks:

Since Twitter was invented, Internet behemoths have been clamoring to buy it in the belief that it is the one social service with the potential to compete with Facebook. Last fall Microsoft, Google, and Facebook itself all considered buying the company. Microsoft never made an offer, according to sources, but Facebook is believed to have offered $2 billion for Twitter, and Google, by far the most serious, offered as much as $10 billion.

Twitter may have been waiting for a more equitable offer: In February, The Wall Street Journal reported that Twitter received a valuation of between $8 and $10 billion, prompting even more talk of a Silicon Valley startup bubble.

The article goes on to chronicle a series of missteps by Twitter's advertising team to tempt more paying users and revenue to the site, including its widely misunderstood Promoted Trends.

Said Fortune:

At the beginning of March, the company released an updated Twitter iPhone application with a new feature called a Quick Bar. This bar ran across the top of a Twitter stream and broadcast trending topics. It included the things people were actually tweeting about most, but also the occasional promoted trend, for which companies paid $120,000. A small group of vocal tech pundits cried foul, with one dubbing it the “Dickbar,” after Costolo. The company immediately modified the product. “They roll things out in an almost sheepish way,” says eMarketer analyst Paul Verna. “When it doesn’t work out, they say it was a test. It’s like a batter getting up to the plate and bunting all the time.”

As for the news that Ev Williams did not simply grow weary of being the king of the Twitter empire –which he once famously called “kind of a sucky job” – and then gratefully hand the reins over to Costolo, the piece says accounts vary as to how and why he left. But there is clearly some ambiguity surrounding Williams' hasty exit.

Writes Fortune:

By October 2010, Williams had run out of steam. There are different accounts of why he left Twitter. Williams says he demoted himself, naming his friend Costolo to replace him. Multiple sources close to the board say its members asked him to step aside, but no board member will confirm that.

Still, whatever the reasons Williams left or the company turned down double-digit offers in the billions, it is obvious Twitter has at least one major question looming: How will it make money — and when?

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MoneyTree Report: Clean tech investments top $1 billion

Posted: 14 Apr 2011 09:07 PM PDT

Clean technology investments top $1 billion, according to the latest MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association.

The Clean Technology sector, which crosses traditional MoneyTree industries and comprises alternative energy, pollution and recycling, power supplies and conservation, saw a 26 percent increase in dollars over the fourth quarter to $1 billion.

The report attributes the increase being driven by several large rounds, including five of the top 10 deals.

Last year’s report showed an 87 percent increase to clean tech. This quarter also marks the fourth time in history that Clean Technology investing exceeded one billion dollars.

With gasoline costs on the rise and the emphasis from governments to create alternative energy solutions, it’s no wonder that the clean tech sector has a boost in investment.

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VC deal size grows in first quarter despite fewer deals made

Posted: 14 Apr 2011 09:00 PM PDT

Venture capitalists invested the most in deals worth $50 million or more since the third quarter of 2001, pumping $5.9 billion into 736 deals in the first quarter of 2011, according to a MoneyTree Report released today by PricewaterhouseCoopers and the National Venture Capital Association.

Using data from Thomson Reuters, the study showed a spike of 5 percent in dollars invested and a 54 percent surge in later stage deals over the prior quarter, with almost all sectors showing double-digit gains.

The unwelcome news was that venture capital fell 11 percent in the number of deals made during the same period in 2010, when $5.6 billion was invested in 827 deals.Still, most of the stats are welcome news for an industry that had struggled at times in 2010 to prove it was no longer spooked by the credit crisis and was ready to jump back into the fray.

“The first quarter investment total is setting us on a path for a solid level of investing in 2011.  While we did see a drop in deal volume, the dollars invested remains strong,” said Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US.  “Accordingly, we’re seeing an uptick in average deal size, which hit $8.0 million in Q1for the first time since the first quarter of 2007.  And, in the first quarter, 14 companies received funding rounds of $50 million or more, with four of those deals worth more than $100 million.”

The software industry remained the single largest investment sector for the quarter, with $1.1 billion invested and 187 rounds closed. But this, too, saw the pinch of fewer deals, dropping 21 percent drop from the quarter prior, when 237 rounds were completed.

Other sectors that benefited from savvier VCs included the clean technology and Internet-specific categories, which both saw double-digit increases.
‘Internet-specific' is a classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company's primary industry category.

Clean technology enjoyed a more than $1 billion dollar gain in the quarter, 26 percent increase in dollars poured in 69 deals, up from 62 in the prior quarter.

Its VC investments also included five of the top 10 deals for the first quarter of 2011.

On the flip side, although the Internet-specific category grabbed $1.2 billion for 171 deals in the first quarter, it also was hit by a 19 percent decrease in dollars and an 18 percent decrease in deals from the fourth quarter of 2010, when $1.5 billion went into 208 deals.

The 54 percent increase in later-stage investments is perhaps an early indicator that VCs are waiting to truly understand the businesses they are investing in before throwing money into the hottest new start-ups.

But despite the ups and downs of these numbers, overall the report bodes well for VC financing in 2011, said Mark Heesen, president of the NVCA, who said the community is finally investing prudently in the hopes of avoiding any sort of bubble around the sorts of companies VCs have been investing in.

"What we are seeing is a commitment to funding companies through the various stages of their lifecycles, even in the later stages when capital needs intensify substantially," he added.  "What this deliberate and prudent pace of investment lacks in hype, it makes up for in sustainability, and we are very encouraged for the coming year.”

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FCC boss says wireless spectrum allocation is key to making mobile broadband competitive

Posted: 14 Apr 2011 08:59 PM PDT

Federal Communications Commission chairman Julius Genachowski said today he is hopeful that the government will be able to reallocate spectrum to satisfy the insatiable appetite for mobile broadband capacity.

But rather than seize the spectrum outright, Genachowski wants Congress to approve a plan that would allow the current owners of the spectrum to share in the proceeds as the government auctions it off to infrastructure companies. Once that spectrum is in the right hands, Genachowski (pictured right) said that a wave of mobile innovation could occur that will keep the U.S. competitive in the global competition for communications technology. In a chat moderated by Fortune writer Adam Lashinsky, Genachowski spoke at the Commonwealth Club event at the Computer History Museum in Mountain View, Calif.

The process of reallocation through auctions will likely lead to the most fast and efficient way to get more bandwidth to mobile broadband subscribers, who are so plentiful now they are causing data traffic jams on the mobile phone networks.

Right now, the available wireless spectrum is set aside for uses such as digital TV services, and broadcast TV companies have not shown any interest in giving up that spectrum willingly. The FCC could seize it, but that would likely lead to a long legal process.

Instead, Genachowski proposed that the spectrum owners be compensated in part after the government auctions the spectrum. Genachowski said that the FCC has some of the authority it needs to put this plan into place and is hopeful that Congress will give it the full authority to conduct the “incentive-based auctions.” By doing it this way, more spectrum would become available, and that would help satisfy the crushing demand. Genachowski said this plan has bipartisan support, support from economists, and support from President Obama.

“I’m hopeful it can happen soon,” he said. “Every day we wait has real costs. We have more dropped calls, more consumer frustration.”

The problem with mobile broadband is that smartphone and tablet usage are stressing the capacity. Smartphone users consume about 24 times more data bandwidth than users of ordinary mobile phones, while tablet users consume 104 times more. Netbook users with wireless cards consume even more. There’s a huge gap between available capacity and the demand for it, Genachowski said.

“Spectrum is a scarce resource where physics puts limits on how much data can travel over the air waves,” he said. “We can’t close the gap because it is so large. We have to allocate spectrum from existing users to those who need it.”

Meanwhile, Genachowski said he was disappointed that the U.S. has not been able to extend broadband communication to more of its citizens. Roughly 25 million people live in regions with no internet access, and another 100 million do not subscribe to services that are available to them. As a result, only 67 percent of the population has broadband access, compared to 90 percent in Singapore.

Genachowski said one recent study found that the U.S. was sixth among 40 countries reviewed in terms of broadband access, but it ranked 40th in terms of how much progress it was making.

“We spend money on programs on universalizing telephone service,” he said. “We need to transform 20th century rules into a smart, efficient broadband access program.”

Genachowski said the U.S. has been the leader in auctioning off spectrum as needed for things such as digital TV. Now the country has to act as if it is in a race to be the innovation leader yet again when it comes to mobile broadband, he said.

“The costs of delays are much greater now because of changes in the global competitive landscape,” he said. “My counterparts around the world are looking at communications as key to economic growth and innovation.”

VB Mobile SummitCalling all mobile executives: This April 25-26, VentureBeat is hosting its inaugural VentureBeat Mobile Summit, where we’ll debate the five key business and policy challenges facing the mobile industry today. Participants will develop concrete, actionable solutions that will shape the future of the mobile industry. The invitation-only event, located at the scenic and relaxing Cavallo Point Resort in Sausalito, Calif., is limited to 180 mobile executives, investors and policymakers. We’ve pretty much finalized the invite list, but have a few spots left. Request an invitation.

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