Posts Tagged ‘california’

PostHeaderIcon Complaints Against Yelp’s “Extortion” Practices Grow Louder

Yelp has been hit with another lawsuit, the third in a matter of a few weeks. Similar to the previous complaints, this lawsuit filed by Boris Levitt, the owner of Renaissance Furniture Restoration in San Francisco, claims that Yelp’s “unfair and unethical conduct in promoting, marketing and advertising its website as maintaining unbiased reviews” is unlawful and hurt his business. Levitt’s suit is similar to the previous claims that Yelp is extorting businesses for advertising. We’ve embedded the complaint below.

The business claims that after declining a request to purchase advertising on Yelp, a number of positive reviews from his business’ listing on the reviews site mysteriously disappeared, downgrading the company’s rating on the site. Levitt claims that ten out of eleven five star reviews were removed from his company’s page following his decision not to purchase advertising on Yelp.

Two weeks ago, the company got slapped by a lawsuit from from the D’ames Day Spa of San Diego County, accusing Yelp of removing many positive reviews because the spa declined to run ads on the site. And the previous week, two law firms, Beck & Lee from Miami and The Weston Firm in San Diego, filed a class action lawsuit in Los Angeles federal court alleging unfair business practices by local business review and rating website operator Yelp.

The lawsuit alleged that the heavily funded startup runs an “extortion scheme” and has “unscrupulous sales practices” in place to generate revenue, in which the company’s employees call businesses demanding monthly payments in the guise of advertising contracts, in exchange for removing or modifying negative reviews.

Additionally, today, nine small businesses from across the United States have joined the Beck & Lee and Weston suit, including The Bleeding Heart Bakery in Chicago; Bleeding Heart Bakery of Chicago, Illinois; Scion Restaurant of Washington, D.C.; J.L. Ferri Entertainment, Inc. of New York, New York; Sofa Outlet of San Mateo, California; Celibré, Inc. of Torrance, California; Astro Appliance Service of San Carlos, California; Wag My Tail, Inc., of Tujunga, California; Le Petite Retreat, of Los Angeles, California and Mermaids Cruise of San Francisco, California

Last year, the East Bay Express ran an explosive story, basically accusing Yelp of being in the ‘Business of Extortion 2.0′, which covered similar ground. Shortly after reporter Kathleen Richards published the article, Yelp vehemently denied everything and called her piece inaccurate.

Yelp CEO and co-founder Jeremy Stoppelman has explicitly denied that they ever offered preferential treatment in exchange for money.


Boris Levitt Vs. Yelp

Information provided by CrunchBase




PostHeaderIcon AT&T Emails SF Customers That The Network Is Getting Better (Did The Call Fail?)

When bashing AT&T’s network, two cities usually come up above all others: New York City and San Francisco. AT&T has even acknowledged just how bad it is in those cities. But they’ve also said for a while that they’re working on making it better. And apparently now that work is far enough along that they’re emailing customers about it.

Over the past week, AT&T has been emailing its customers in San Francisco to let them know that the network is getting better. “We wanted you to be among the first to know! We recently enhanced the 3G network in the greater San Francisco area to provide better in-building 3G coverage, fewer dropped calls and a better overall wireless experience,” says the email.

It continues, “With better coverage on the nation’s fastest 3G network, there’s never been a better time to be an AT&T customer.” In other words, “things are getting better, please don’t leave.”

Hopefully, it’s a good sign if AT&T feels comfortable enough about its network to email its customers. Another good sign: AT&T did a great job this past week keeping its network stable during the SXSW festival (after failing badly last year). Still, AT&T has been saying for a while that they’re working on fixing the network in San Francisco, and on any given day it can be as bad as ever.

Below, find the full email being sent:

We wanted you to be among the first to know! We recently enhanced the 3G network in the greater San Francisco area to provide better in-building 3G coverage, fewer dropped calls and a better overall wireless experience.

The great news is coverage in Northern California will continue to improve as we expand capacity, optimize and add more sites in the coming months.

With better coverage on the nation’s fastest 3G network, there’s never been a better time to be an AT&T customer.

We thank you for your continued loyalty and look forward to sharing more good news soon.

Information provided by CrunchBase




PostHeaderIcon TechCrunch Friday GiveAway: An Apple iPad #CRUNCH

It’s Apple iPad day, and every early adopter worth their salt is pre-ordering one of the soon to be ubiquitous little devices and counting the days until they get their hands on it on April 3. You’ve been waiting on this thing since December 2008, after all.

We know you’ve already bought two for yourselves, the limit, because that’s how TechCrunch readers roll. We know this because we’ve told our advertisers that every single one of our 9.2 million monthly readers is a high disposable income influencer in technology and media that just loves to try out new things that they see advertised on TechCrunch. And since those advertisers believe us, we have the means to buy an extra iPad and give it to you. Even though you’ll then have three of them. Because you, dear reader, are a high disposable income influencer.

Anyhow back to the iPad. This isn’ the 3G version, which comes later in April. This is the 16GB Wifi iPad, a $499 retail device, that we’ll give away to one lucky reader chosen at random who comments below or retweets this post. Just fan the TechCrunch Facebook page and then do one of two things: either retweet this post, and make sure to include the #crunch hashtag, or leave a comment below telling us why this device must be yours. The contest ends at noon California time on Saturday. Please only tweet the message once, anyone tweeting repeatedly will be disqualified. We’ll pick a winner tomorrow afternoon and contact you for more details. Anyone in the world is eligible, as long as you can receive delivered packages (our Nexus One winner lives in Romania). And we’ll throw in a TechCrunch tshirt.

Information provided by CrunchBase




PostHeaderIcon Lunch.com Communities Let You Build Your Own Niche Reviews Site

Last August, we wrote about Lunch.com, a reviews site that’s setting out with the goal to make the world a better place by changing the way people think about each other (as I wrote then, it’s a pretty lofty goal). Today, the company is launching a new feature called Communities that lets users build their own review sites around any niche topic. If you’d like to try founding a community, you can do so using the beta code “techcrunch”.

The new feature can be likened to a ‘Ning for review sites’. As a community founder, you select a topic on whatever you’d like, then invite other users to contribute reviews and other content (you can elect to moderate this as it comes in). For examples, check out Strollerland, a new community that’s dedicated to reviewing strollers. There’s also Gluten Free Groupies, for (surprise) people who like to talk about gluten-free foods.

The benefits of this kind of niche-community setup are clear — if you cater to a group of people passionate about a given topic, they’re probably going to be more knowledgeable and engaged than your average user. I’d rather take recommendations from someone who reads about strollers all day than from a guy who liked the one he chose at random at Wal-Mart.

CEO J.R. Johnson says that Lunch’s system allows for the creation of multiple communities around the same topic (for example, there could be ten different reviews communities that revolved around bicycles). Because all of these niche review sites are built on the Lunch.com platform, the site can use its universal search and suggestion engine to recommend content you may be interested in, even if it’s found on a different community than the one you’re currently browsing.

However, it sounds like new communities may have some trouble getting off the ground.  Johnson says he expects that lots of the niche review sites will be launched by existing online communities (say, a Yahoo Group).  For them, the system should work well, but if you just want to launch a review site about stamps but don’t already have many friends who are interested in the topic, you may have trouble getting much traction.  That said, these niche communities will be exposed to search engines, and if you produce relevant content Lunch’s recommendation engine should also help introduce your community to new users.

Information provided by CrunchBase




PostHeaderIcon Update: In Time For SXSW, Twitter Officially Turns On Geolocation

A few days ago, we spotted Twitter’s initial roll out of a geolocation feature on its Website. It appeared that Twitter was testing the feature because it quickly turned it off. Last night, the feature went back on, and Twitter co-founder and CEO Biz Stone officially announced it.

While Twitter’s geolocation feature has been live through its API since last November, this is the first time Twitter has enabled geolocation on its site. To start Tweeting with your location attached, you need to enable the feature in your Twitter Account Settings. Once you’ve opted-in, you will be able to add your location information to all your Tweets or choose to add them to individual Tweets as you compose them. You can choose to share your exact location (your coordinates) or your neighborhood or town.

Currently, the feature only works with Firefox 3.5 and Chrome for Windows. If you decide you want to send a Tweet without your location, you can simply click the “x” next to your location to disable it. Interestingly, if you Tweet with your geolocation on Twitter, the location doesn’t seem to show up in TweetDeck, Seesmic or presumably other third-party clients. And It doesn’t work from Twitter’s mobile site, at least not on the iPhone, where it would make more sense.

As we wrote in our earlier coverage, the timing of this move by Twitter is purposeful. With the SXSW conference in Austin starting today, the location wars are heating up. Earlier in the week, the New York Times reported that Facebook would unveil its answer to location next month at its f8 conference. Google, meanwhile, is in the game with Latitude and to some extent Buzz (but could have been in it a lot more). And of course, Foursquare, Gowalla and a host of other location-based apps are rolling out additional functionality. As we previously noted, many of these apps use Twitter’s geolocation API to pass the data back to Twitter, so it makes sense that this would be a good time to turn the functionality on for the website.

Information provided by CrunchBase




PostHeaderIcon BoomStartup Gives Utah Its Own Startup Incubator

While California and New York tend to get the most attention as technology hubs, other states are quietly hosting their own vibrant communities around technology and innovation. Utah is one of these states. Utah is home to tech giants Omniture (which was acquired by Adobe for $1.8 billion), Novell, Symantec. And today, Utah is getting its very own startup incubator, BoomStartup, which is a seed capital and mentor-focused investment program for web and software start-ups based in Utah.

Based in Orem, Utah at the Canyon Park Technology Center (the original site of WordPerfect Corporation), BoomStartup is a full-time program that will run from May to August and provides each selected company with seed capital (up to $15,000), mentoring from entrepreneurs and technologists, free office space and resources, and education that takes them through the various steps of getting a tech startup off the ground. For its first rounds, the organization will choose eight startups to participate in the program. Applicants for BoomStartup must have a founding team (two or more individuals) and an idea with a focus on web, mobile, software, and non‐hardware tech. Startups can apply here.

BoomStartup was founded by Utah angel investor John Richards who invested in Omniture. BoomStartup is made up of seven other mentors and investors in the fund. Each investor-mentor has contributed $15,000 in the fund. Investors include Omniture co-founders Josh James and John Pestana, Ralph Yarro, Nobu Mutaguchi, Martin Frey, and Rod Watson.

It’s always great to see investors and former tech executives investing time (and money) in promising startups and ideas. And we are seeing a plethora of innovative startups emerging from a variety of incubators around the country and world, including Y Combinator, TechStars, The Founder Institute, Launchbox Digital and more.

Continued Richards: “This group of investor-mentors has a track record of growing successful businesses and creating innovative technologies. Their expertise and vision will be invaluable to the selected companies, and give them the know how to overcome the obstacles they might confront, whether that be on the business or technological side.”

BoomStartup will host a series of “Meet the Investor-Mentor Days” through the April 12, 2010 deadline; the first will be held Friday, March 12, 2010 at 4 p.m. at the Canyon Park Technology Center, Building J (1401 N. Research Way, Orem, Utah). Investors-Mentors will be on hand to talk with prospective applicants about business, technology and discuss strategies for their businesses.




PostHeaderIcon Brazil: Copy Cats? What Copy Cats?

I’ll say this about Brazilian startups—they’re certainly not dominated by Web copycats. Perhaps it’s because there aren’t a huge number of Brazilians who’ve made it big in the Valley transmuting the local way of doing things back home or because there’s not a lot of US venture capital flooding into the country. Perhaps it’s the country’s noted isolationist streak, or perhaps it was just the startups I lucked into meeting.

But whatever the reason I saw fewer “We’re-the-fill-in-the-blank-Web-company-of-Brazil” ventures than I have in any other market to which I’ve traveled in the last few years. Many Brazilians I spoke with said it’s just part of their nature, that they’re not competitive (tell that to fans of opposing soccer teams), and that they’d rather chase “green field” – or, as they say, “blue ocean” – opportunities. See, they don’t even use the same color to describe opportunities.

No matter the reason, after nearly 30 weeks of emerging market travel it was refreshing to go to a country and see things that are unequivocally new, even if risky and a bit, well, wacky. To make the point, here are three of my favorites: Companies that make bugs, houses and diamonds.

The World’s Ickiest Factory: Bug is one of most aptly-named companies in the world. This company makes bugs. No really, I saw the factory: Millions of eggs, and jars and jars of larvae and cocoons. There’s a “cook” on staff who makes up the peanut-buttery solution these bugs feed on and each room is kept at an optimal temperature for that stage of bug development. Like something out of a sci-fi movie, the company is growing natural predators for common agricultural pests, so that farmers can move away from pesticides in accordance with a growing wave of worldwide safety regulations and the organic food movement. It’s combating a caterpillar with a wasp—like nature intended– but rather than selling live wasps, it sells wasp-infected caterpillar eggs and cocoons. Think of them like thousands of little Trojan horses being dropped into Brazil’s sugar cane, tomato, and soybean fields.

Brazil is the second largest agricultural country in terms of exports and the largest pesticide user in the world, recently overtaking the United States. The company is only doing a few million in revenues but is hugely profitable. That’s the good thing about growing something found in nature—it’s pretty cheap once you figure out the optimal way to do it.

But even without all that, I would love this story because Heraldo Negri, one of the co-founders, is just obsessed with bugs. Since he was 19-years-old he’s photographed pictures of bugs in every stage of life. He has albums and albums of them and even started a niche publishing house to produce his bug books for the masses. He doesn’t seem to think this is weird at all. When he handed me a stack of his books on bugs he exclaimed, “Your husband will love these!” (Note: My husband has a horrible fear of spiders.) That’s Negri above, standing on the left. What you can’t see from the picture is that he’s holding two fistfuls of larvae. Here’s a close-up….

Negri—a former college professor who lives several hours outside of Sao Paulo— always wanted to be an entrepreneur but says he never quite had the guts to take the plunge. But the sheer obsession with the idea and technology drove him to take a sabbatical (which he intends to be permanent) from his university teaching job to run this company full-time.

Bug is funded by Fundo Criatec, a government-sponsored venture fund. It’s one of its hottest companies and Francisco Jardim (standing to the right in the main photo), who’s in charge of the fund’s deals throughout the state of Sao Paulo, drives out to Piracicaba meet with them several times a month.

Bug was a risky investment deal in a country that doesn’t take a ton of venture risk. The technology was there, but several VCs walked from negotiations because the company didn’t yet have local certification to sell to farmers. Now, it is one of the only ones that does, and its biggest problem is meeting demand, so it’s investing in better, larger bug-growing facilities. (Right now they’re largely using a series of houses and an old supermarket.) Certification is a process that takes several years, and tellingly, some big multinationals and other upstarts recently applied for certification, Jardim says.

How to Build a House in One Day: It doesn’t take much travel to see that millions of people in the emerging world need better housing—hell, you could just watch “City of God,” “Slumdog Millionaire,” or earthquake footage from Haiti. Or just visit 16th and Mission in San Francisco. Much of the emerging world is living in makeshift structures that are missing walls, doors or decent ceilings. That’s what makes BS Construtora so potentially exciting not only for Brazil but the entire emerging world.

BS Construtora was started 14 years ago and for many years was just a small business known in agriculture sectors for its ability to build structures such as silos faster than the competition. 2006 was a bad year for agriculture in Brazil, and the company had to look around for other customers. The founder Sidnei Borges dos Santos, a former brick layer, was looking at a shoebox when he had the idea for how to build a prefab house quicker than the competition. Rather than pre-make parts and assemble them wall-by-wall and beam-by-bean, what if he made a mold that could lay the concrete for the whole room in one big piece, add the shutters, paint it and throw it on a truck? The molds leave room for plumbing and lighting and plop the houses on the ground just like the inspiration–an upside-down shoebox.

Today the company can build a house in 24 hours. It’s currently building a whole city complete with 1,600 houses, electricity, phone lines, Internet access, schools, a hospital, a police station, a fire station and a shopping mall in the Amazon for a crew building a hydroelectric dam. The photo of the village I saw looked eerily like where “The Others” live in Lost, but a house built on the cheap in 24 hours isn’t for show—it’s for necessity and speed. And there’s a ton of need in the world for this product. The company is meeting with governments of South Africa, Ghana, other parts of Latin America and Asia to talk about expansion.

The problem is thin margins. So far BS Construtora has been financing itself mostly through working capital while trying to dramatically increase capacity. It can build 20,000 houses in a year and CEO Marcelo Miranda wants that up to 30,000. In another year, the company will start looking at raising some funding to help grow faster, he says. For now, he wants to give the valuation some time to build, given all the growth the company is seeing. The houses go for between $15,000 and $140,000, for nicer-non-Lost-like models. The company is also developing some new four-story models to get farther into the commercial market.

BS Construtora gets a few big corporate or government funded projects like the village described above—a $120 million-plus project—but the bulk are developed and sold on the real estate market. The former is likely lower margin but less volatile, and the latter is the opposite. Between the two, though, the company generated an impressive $100 million in revenues last year – made all the more impressive by the fact that this is a startup that hasn’t received any external funding, operating in an emerging market.

In a decline-of-America-side-note, Miranda is a recent Stanford MBA grad who got 13 other job offers upon graduation, including some impressive ones to head up multi-national divisions in Brazil. (He asked me not to disclose specifics.) He gutsily chose to take this rather uncertain post at BS Construtora last year—at nearly half the pay he was offered elsewhere– despite the fact it was mostly an idea with little execution.

Why’d Miranda go back to Brazil? Part of it was a desire to build something in his homeland. Part of it was when he interviewed at companies in the US they intimated that there was pressure to hire only Americans. “It was the wrong time to be there,” he says. “The feelings were not good for a foreigner like me.” Looks like that brain drain isn’t limited to India and China.

Drilling Your Teeth the P-Diddy Way: Another Fundo Criatec investment is CVD. (I know, it’s not nearly as well named as Bug.) This company makes man-made, multi-crystal diamonds, with technology spun-off from the Brazilian equivalent of NASA, INPE. Aeronautics was big during the dictator days and there was a need for super-hard materials that were durable and wouldn’t corrode, so it started experimenting with growing diamonds and using them in space. Much like the early days of NASA gave American things like the EKG and Tang, Vladimir Airoldi (left) is working to make this diamond technology applicable to everyday life.

The key to CVD’s edge isn’t so much the diamond itself, it’s the way it preps the diamond to be adhered to another surface. The first product is tips of dentist drills. Diamond powder is already used on drills, but it doesn’t stay on well. Because CVD’s adhesives are so much stronger it can drill with an ultra-sonic, not rotational motion, which means no pain, no bleeding and no anesthetic, the company says. Early adoption has been a challenge. Dentists are trained a certain way and don’t like to deviate. So far just 5,000 dentists in Brazil have tried it and 3,000 are still using it. Another early use is drilling into the earth. CVD did a pilot-sale of some diamond-adhered drill tips to Petrobras a few months ago.

The hope is to turn CVD into a platform company that can spin out lots of these ideas, and partner with others to take them to market. Obviously, the challenge here will be the latter. The technology is there, and Airoldi, a CalPoly grad who got his ideas about tech transfer from his experience in California, can come up with dozens of use cases of the top of his head. Focus is going to be a key for this company.

But, like Bug and BS Construtora, CVD is trying to introduce new technology into industries that many other entrepreneurs have forgotten about. If that’s going to be the new green field – or blue ocean—opportunity, Brazil is a good place to bet.




PostHeaderIcon YouTube Launches Auto-Captions For All Videos

I’m here at YouTube’s office in San Bruno, where the company is holding a press conference to discuss the launch of auto-captions. YouTube Director of Product Management Hunter Walk kicked off the event by discussing some of YouTube’s goals through the years — one of which is accessibility.

Walk said that a few years ago, accessibility meant giving users more ways to access their content (for example, through their mobile phones). Now, the company is focusing more on making its content accessible to even more people. Google software engineer Ken Harrenstein then took the stage to walk through some of YouTube’s initiatives on this front.

Harrenstein walked us through YouTube’s past feature launches, including the launch of captions and subtitles. In November of last year, the company began to roll out auto-captions on a limited scale, which use speech recognition to automatically transcribe what’s said in a video. And now, it’s going to enable the feature for all videos uploaded to YouTube where English is spoken.

This makes the videos accessible not just to deaf people, but also to viewers around the world, who can translate any video that’s in English to another language. However, Harrenstein took time to point out that the captioning isn’t perfect, showing how the words “SIM card” got transcribed to “salmon”.

Here are some of the details for uploading videos:

  • While we plan to broaden the feature to include more languages in the months to come, currently, auto-captioning is only for videos where English is spoken.
  • Just like any speech recognition application, auto-captions require a clearly spoken audio track. Videos with background noise or a muffled voice can’t be auto-captioned. President Obama’s speech on the recent Chilean Earthquake is a good example of the kind of audio that works for auto-captions.
  • Auto-captions aren’t perfect and just like any other transcription, the owner of the video needs to check to make sure they’re accurate. In other cases, the audio file may not be good enough to generate auto-captions. But please be patient — our speech recognition technology gets better every day.
  • Auto-captions should be available to everyone who’s interested in using them. We’re also working to provide auto-captions for all past user uploads that fit the above mentioned requirements. If you’re having trouble enabling them for your video, please visit our Help Center here.

Google researcher Mike Cohen then took the stage to talk about Google’s Speech Technology. The ultimate vision, he says, is to provide accurate captions for all videos in all languages. But that comes with many problems, including a massive vocabulary, issues with poor recordings and background noise, and accents. And every language comes with its own unique challenges.

YouTube hasn’t yet run all of its videos through the new transcription service, but video owners will be able to manually request that their older videos get transcribed more quickly through each video’s options screen.

Harrenstein, who is deaf, retook the stage to tell a personal story. When he was at MIT, he didn’t go to many of his lectures because he was unable to understand the lectures (which weren’t signed). Now, he can watch MIT lectures on YouTube, with captioning enabled.

Next, some students from the California School for the Deaf in Fremont, and their instructor Joey Baer, took the stage to thank YouTube for the launch. Check out their enthusiasm in the video below. Really, this is quite amazing.




PostHeaderIcon The AOL Executive Shuffle Continues: Entertainment Chief Mike Rich Departs

There’s been a lot of churn in AOL’s executive and employee ranks since Tim Armstrong became CEO. The latest exec to head for the door is 9-year veteran Mike Rich, who is the senior VP in charge of AOL Entertainment (which includes AOL Music, Moviefone, and AOL Television). He joins a growing list of the old guard departing the company (Bill Wilson, David Liu, Ted Cahall, Grant Cerny) in the wake of Armstrong’s new hires.

For instance, former Googler David Eun is now president of AOL Media and Studios. Under him, David Mason, the co-founder of recently acquired StudioNow has just ben promoted to senior VP of the AOL Content Platform. And recently hired former Google engineer Jeff Reynar will lead the engineering efforts for that Content Platform, which includes StudioNow and Seed.

When Armstrong brought Eun on board, he told me that he was done making changes in the top ranks, but AOL is in the midst of reducing its entire workforce by one third. The shuffle will continue.

Information provided by CrunchBase

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Mike Rich, Senior Vice President, AOL Entertainment




PostHeaderIcon John Doerr On Bloom Energy Launch: “This Is Like The Google IPO”

After eight years of operating in quasi-stealth, Bloom Energy came out with a bang today at an event in Silicon Valley attended by Arnold Schwarzenegger, Colin Powell, Larry Page, John Doerr, and executives from eBay, Walmart, Coca-Cola, and FedEx. All of the big-name companies, including Google, are beta customers of Bloom’s distributed energy fuel cell technology (which was the subject of a 60 Minutes profile on Sunday and various other stories since then).

Doerr, the Kleiner Perkins VC who backed both Bloom and Google, said today: “This Is Like The Google IPO.” Except without the IPO part. Doerr was referring to the fact that, like Google, Bloom has kept its business close to its vest until it actually could show some progress in terms of customers and products. Five Bloom energy boxes about the size of a parking space each now provide 15 percent of the power at eBay’s campus. Walmart is testing the boxes in two locations where it is carrying 60 to 80 percent of the energy load of an entire store. Google co-founder Larry Page calls the technology a “very big deal” and looks forward to the day that it can expand the number of Bloom boxes Google uses to the point where it can power one of its data centers.

Bloom founder and CEO KR Sridhar, who got his start designing technologies for NASA that would allow humans to live on Mars, explained how Bloom’s fuel cell technology works. It takes almost any fuel from ethanol to biomass and turns it into electricity. Fuel cells are nothing new, but Bloom has figured out a way to make them cheaply and efficiently. A Sridhar claims that a Bloom box, which he calls an energy server, is twice as efficient as the electricity grid. “For the same amount of electricity, you need half the fuel,” he says. “If you use a renewable fuel you are carbon neutral. Use all the electricity you want and don’t feel guilty about polluting the environment.”

Each fuel cell, which is made from sand essentially (zirconium oxide), is a square wafer about the size of a CD box. Each wafer can produce about 25 watts of energy, enough to power a lightbulb. Stack them together and you get a box that could power a house. Group them into larger units, and you get enough energy to power a building or an entire campus. He calls them energy servers because they are modular like servers in a data center. Need more energy? Add more boxes.

They are like backyard generators. No electricity is lost through distribution, and they can convert a variety of fuels into electricity, allowing customers to use whatever is locally available or cheapest. There are no moving parts, vents, or discharge other than heat.

Right now, only businesses and large facilities can afford these things. They cost about $750,000 for a 100 kilowatt system (Google is using a 400 kilowatt systems to power one building on its campus, and the Walmart stores are also using 400 kilowatt systems). Nevertheless, Bloom says the systems should pay for themselves within three to five years because of lower electricity costs. A typical electricity cost for commercial customers is 8 to 10 cents per kilowatt-hour versus 13 cents for what they might pay a California utility. That 3 to 5 cents per kilowatt-hour in savings adds up if you are running a huge retail store or a data center.

The costs should come down over time to the point where Bloom boxes really can be used in homes. One potentially disruptive feature of the technology is that it works both ways: fuel can produce electricity, but it can also go the other way so that electricity produces fuel. Sridhar foresees the killer app for his technology becoming practical in about a decade: a Bloom home energy server combined with solar panels or some other renewable energy. The electricity from the solar panels could produce fuel, which can be used to produce electricity to power the house or even to gas up your (modified) car.

Dreams like those are the kind that fuel something else: big IPOs. When’s the real one, Doerr?




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