The Good NET Guide

Posts Tagged ‘deadpool’

Last quarter, based on funding and M&A data we collect in CrunchBase, we signaled that we were cautiously optimistic about the rebound of the tech sector. Q2 trends were no worse than Q1 09: venture financings were up 20% and mergers & acquisitions held steady (excluding Oracle’s acquisition of Sun Microsystems) in comparison to Q1.

With another quarter of data under our belts, we’re feeling even better about the health of technology startups. The number of new startups, venture fundings and M&A are all on the rise. In addition to decent stats, there are lots of new tech products launching across diverse categories, coming from companies both great and small. The Layoff Tracker and Deadpool have quieted down in our sector. In short, we’re feeling like there’s a more rational and focused market for startups and tech.

Strategic M&A Is Back: 3x Q2 Levels

One of the strongest signals of the quarter was the resumption of activity in mergers and acquisitions. The acquisition market really rebounded in Q3 09 to over $45 billion from 231 deals, 3x greater than Q2’s $15 billion. We haven’t seen M&A activity at this level since Q2 08, which recorded 275 deals totaling $59 billion.

Why? Large internet and media companies have faced significant R&D budget cuts in the last year, but they recognize that they need to grow to remain competitive. The weakness in the overall economy and the pullback in venture investing dragged down exit valuations. At more rational prices, large companies see acquisitions as a good use of cash. And the target acquisitions have slashed their own cost structures over the last year and proven they can grow through the downturn, making them even more attractive.

Most encouraging, acquirers are adding strategically to their businesses (Amazon-Zappos, Facebook-Friendfeed, Google-On2, Yahoo!-Xoopit, VMWare-Springsource, RIM-Torch Mobile, Intuit-Mint, etc.) Some acquirers are returning to the market with multiple strategic deals (Adobe, EMC, IBM, Thomson Reuters, Yahoo!, Google, etc.) Deal making was well distributed across business segments (consumer web, retail, mobile, advertising, enterprise, biotech, cleantech)

Deal-making was highly targeted during the quarter. For example, there wasn’t a big rumor mill about deals being shopped to multiple target acquirers. Instead, it appears that many individual deals came together for the right strategic reasons at rational prices and were executed promptly. In many cases, leading acquirers appear to be making preemptive moves for attractive assets, so they don’t risk competitors taking the deals or paying up as valuations rise in the future.

Q3 Venture Financing Is Up 17.5%

Venture investments increased 17.5% to $7.7 billion in Q3 09, from $6.5 billion in Q2. Q3 09 data is on par with the numbers from Q3 08. The most recent peak period was Q2 08, which had 859 deals totaling $8.5 billion. The most recent trough was Q1 09, which had 609 deals totaling $5.5 billion.

Along with the increase in venture financing, the quantity of deals financed was up 11.4% quarter-to-quarter. The number of financings is also on par with the number of deals from a year ago.

Q3 New StartUps Up 25%

CrunchBase estimates that 985 startups were founded in Q3 09, up 25% from Q2. This is based on 241 actual records submitted for Q3 vs 191 for Q2, and extrapolated for delays in startup self-reporting of data. We expect the rise is a bit seasonal and partly attributable to the growth of incubators and fall launch conferences, such as TechCrunch50, where large numbers of startups launch at once.

The full 40-page third-quarter TechCrunch Trends report (including 30 interactive excel exhibits and 59 PDF graphics) is available for $295 as a download here.

This quarter, we added a leaderboard of the 25 most active venture capital firms for Q3, including deal breakouts by round and business sector. If you’re looking for funding, the tables in this report might help you narrow your search.

Trends Table of Contents here.
Data Pack Excel Exhibit List here.
Trends Report Graphics List here.

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Of course, you’re also welcome to grab the data free of charge through our CrunchBase open API. CrunchBase is the largest, free directory of statistical information about startups and technology businesses. We track over 24,500 companies (including 8,700 financings and 2,300 acquisitions), 40,400 people and 3,200 financial organizations.

Check out TechCrunch Trends, our newest TechCrunch-family blog, covering, yup, the latest technology trends sourced through CrunchBase. Daniel Levine and other TechCrunch staff will be adding cool new trends there on a regular basis.

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Storytlr, a nifty web application centered around the concept of lifestreaming, will cease to exist at the end of this year. In a blog post, the two guys who built the service jointly announced the decision to stop operating Storytlr on December 31st 2009.

Unfortunately, all data that doesn’t get backed up by its users in the next ten weeks will be wiped out, although there is a simple tool that allows for easy export of all data and soon users will also be able to download a zip archive of their binary files (images etc.).

As to the why of the voluntarily deadpooling of Storytlr, co-developers Laurent Eschenauer and Alard Weisscher are not at all vague: they simply lost interest after deciding that the project could not be turned into a full-fledged company, and unsuccessfully trying to find alternatives routes or potential partners. And most importantly, lack of time:

The reason is simple: our lives have moved on, kids were born, house were bought, new projects appeared and we don’t have time anymore to operate this service properly.

We have spent the last months looking for alternatives, potential partners, and even thought about creating a startup around this project. Yet, in the end, nothing did really make sense for us and we have decided to pull the plug. It was a tough decision to make, it is a sad day, and we feel sorry for our passionate users who have put so much effort into their page and who have helped us improve the service through their many comments.

The two men are going to try to open source the whole thing, but are not willing or able to provide an ETA since it requires significant refactoring of code. Frankly, I wouldn’t hold my breath for it and check out alternative services such as Soup.io, Lifestream.fm or Sweetcron in the meantime for your digital lifecasting purposes.

As a farewell salute, here’s the probable highlight of the adventure for at least one of the initiators of the project: watch Eschenauer pitch Storytlr to Google co-founder Sergey Brin:

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

As the current hot platform of choice for a lot of developers, we’re not seeing too many Twitter apps just yet in the Deadpool. But one, TwitApps, will hit it tomorrow, the developer is notifying users.

The service was a useful one that allowed you to get an automated email with all your @replies and follower notifications from Twitter. But it would appear that the developer simply got fed up trying to build a new version while continuing to “fire-fight problems” with Twitter’s API. Here’s the core part of the developer’s statement:

I love Twitter and use it a lot, but I’m tired of developing for the API. It’s not that I don’t think the API team over there do a fantastic job, or that I think the API is bad, it’s a personal thing. It no longer excites me the way it once did, and this is part of the reason it’s taken a long time for me to get v2 finished, and it’s still not ready.

So I’ve decided to shut it down rather than continuing to fire-fight problems and pick away at the new version. I’d rather tell the several thousand users of the service have to find alternatives where the developers are more committed to it.

I’m sure I’ll continue to tinker with the Twitter API – I do find it fascinating, but that’s not the same as maintaining a quality product with users to answer to.

The good news is that the code behind TwitApps will live on as an open-source project. This means that anyone else will be free to build and maintain a new TwitApps themselves. The plan is to publish the code to a GitHub account after the site shuts down, tomorrow, September 18 (the emails will continue to run through the 25th).

The service had some 4,000+ users, who apparently have reached out to the developer en masse to try and get him to change his mind, but he says he won’t. So after tomorrow, no more TwitApps. Hopefully someone will use the code to build something similar.

Crunch Network: CrunchBase the free database of technology companies, people, and investors

Lookery, a startup that focuses on collecting demographic data about users and sites around the web and then selling this information to ad networks to target users, is heading to the deadpool. In a blog post, Lookery’s CEO Scott Rafer confirmed that the startup will be shutting its doors after launching in 2007.

Lookery initially started as an ad network for social applications on Facebook, and quickly encountered the troubles of making money off ads on social networks. Lookery ran a promotion for advertisers, offering a guarantee of 12.5 cents per thousand ad impressions (CPMs) in January of 2008. Lookery also made a bold play for ads on traffic from European markets, guaranteeing 25 cents per thousand impressions per advert from European traffic. But things clearly weren’t working out — by July, Lookery was downgrading its guarantee offering 7.5 cents per ad impression, cutting its rates nearly in half.

Although the network served around three billion ad impressions per month, Lookery sold its ad serving business to online advertising network Adknowledge in November of 2008. By that time, Lookery had already branched out into collecting anonymous demographic data from websites and providing this info to advertisers, social networks, dating sites, ISPs, and e-commerce sites.

Lookery raised $3.15 million in angel funding over the past two years, from notable investors and VCs including Charles River Ventures and former FCC Chairman Reed Hundt. And the startup managed to raise a round of funding last September, during tough economic conditions. But in his blog post, Rafer wrote that one of the startup’s downfalls was its original dependence on the Facebook platform. Rafer also mentioned that Facebook’s Summer 2008 redesign had a negative effect on the ad network going on to say that in retrospect, he should have sold the ad network much earlier than November.

Lookery has been added to the deadpool.

Crunch Network: CrunchBase the free database of technology companies, people, and investors

Now that all of the letters to the FCC have been filed by Apple, AT&T and Google, we’re more carefully reading them over for interesting details. The Apple letter would seem to have the most interesting information, as it controls the App Store, and has given some new information about it. Here are some interesting tidbits.

On general app rejections:

We created an approval process that reviews every application submitted to Apple for the App Store in order to protect consumer privacy, safeguard children from inappropriate content, and avoid applications that degrade the core experience of the iPhone. Some types of content such as pornography are rejected outright from the App Store, while others such as graphic combat scenes in action games may be approved but with an appropriate age rating. Most rejections are based on bugs found in the applications. When there is an issue, we try to provide the developer with helpful feedback so they can modify the application in order for us to approve it.

On the app approval rate:

95% of applications are approved within 14 days of their submission.

On the Google Voice rejection:

Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it. The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail.

Apple has a problem with Google Voice’s phone icon, voicemail functionality and SMS functionality:

Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone. For example, on an iPhone, the “Phone” icon that is always shown at the bottom of the Home Screen launches Apple’s mobile telephone application, providing access to Favorites, Recents, Contacts, a Keypad, and Visual Voicemail. The Google Voice application replaces Apple’s Visual Voicemail by routing calls through a separate Google Voice telephone number that stores any voicemail, preventing voicemail from being stored on the iPhone, i.e., disabling Apple’s Visual Voicemail. Similarly, SMS text messages are managed through the Google hub—replacing the iPhone’s text messaging feature.

Apple believes Google Contacts may be a security risk:

In addition, the iPhone user’s entire Contacts database is transferred to Google’s servers, and we have yet to obtain any assurances from Google that this data will only be used in appropriate ways. These factors present several new issues and questions to us that we are still pondering at this time.

On a Google Voice web app:

Google is of course free to provide Google Voice on the iPhone as a web application through Apple’s Safari browser, just as they do for desktop PCs, or to provide its “Google-branded” user experience on other phones, including Android-based phones, and let consumers make their choices.

On AT&T’s role in the Google Voice app rejection:

Apple is acting alone and has not consulted with AT&T about whether or not to approve the Google Voice application. No contractual conditions or non-contractual understandings with AT&T have been a factor in Apple’s decision-making process in this matter.

On Apple’s approval process with regards to its partners:

Apple alone makes the final decisions to approve or not approve iPhone applications.

But, Apple does reject apps on AT&T’s behalf that are VoIP or streaming video apps (like SlingBox):

There is a provision in Apple’s agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T’s cellular network service to originate or terminate a VoIP session without obtaining AT&T’s permission. Apple honors this obligation, in addition to respecting AT&T’s customer Terms of Service, which, for example, prohibit an AT&T customer from using AT&T’s cellular service to redirect a TV signal to an iPhone. From time to time, AT&T has expressed concerns regarding network efficiency and potential network congestion associated with certain applications, and Apple takes such concerns into consideration.

But VoIP apps are okay over WiFi:

Apple has approved numerous standard VoIP applications (such as Skype, Nimbuzz and iCall) for use over WiFi, but not over AT&T’s 3G network.

A bit more on rejections:

Most rejections are based on the application containing quality issues or software bugs, while other rejections involve protecting consumer privacy, safeguarding children from inappropriate content, and avoiding applications that degrade the core experience of the iPhone.

On what takes up most of app reviewers time:

Given the volume and variety of technical issues, most of the review process is consumed with quality issues and software bugs, and providing feedback to developers so they can fix applications.

The number of App Store reviewers:

There are more than 40 full-time trained reviewers, and at least two different reviewers study each application so that the review process is applied uniformly.

Apple now has an App Store executive review board that meets once a week:

Apple also established an App Store executive review board that determines procedures and sets policy for the review process, as well as reviews applications that are escalated to the board because they raise new or complex issues. The review board meets weekly and is comprised of senior management with responsibilities for the App Store.

On the amount of applications that get submitted:

We receive about 8,500 new applications and updates every week, and roughly 20% of them are not approved as originally submitted. In little more than a year, we have reviewed more than 200,000 applications and updates.

All of this information sheds some light on the mystery that has been the App Store. As we’ve noted, the approval process has seemed to improve since Senior VP Phil Schiller got personally involved. It seems likely that he’s on or even leading this App Store executive review team, though Apple doesn’t say that.

[photo: flickr/muffet]

Crunch Network: CrunchBase the free database of technology companies, people, and investors

Tipjoy, a startup that allowed users to easily collect ‘tips’ from their readers and fans in the form of small Paypal transfers, is closing up shop. Earlier this evening Co-founder Ivan Kirigin posted a note to the Tipjoy blog announcing the site’s shutdown. Users with an outstanding positive balance will be able to cash out, but the rest of the site has been turned off.

Tipjoy tried to make web tips feasible by lowering the barrier readers would have to clear as much as possible — to leave a tip, users only had to enter their Email address, with no credit card needed. The amount of money left to a site was effectively a pledge to pay up at some point down the line (Tipjoy tallied up your tips so you could pay them all at once). Unfortunately, users often didn’t take the time to tip at all, and those that did usually didn’t actually pay up.

The company launched last year as part of the Y Combinator class of Spring 2008 and while it saw steady improvements, like a new API in May 2008, it was seeing slow uptake. Later developments included an API that allowed users to send payments over Twitter, and a useful premium Twitter app called Tata-tweet. It also attempted to expand beyond tips to become a more generalized payment service. But despite a solid run, Tipjoy was unable to gain significant traction.

From the site’s blog (be sure to read their post if you have an outstanding balance):

We have decided against continuing to pursue additional funding. After a long and hard look at the market and the situation, we didn’t feel it made sense.

When we evaluate why there’s been so much hype about payments on Twitter, and yet so little traction for us (and even far less for our competitors) it is clear to us that the reason is that a 3rd party payment service doesn’t add enough value. We strongly believe that social payments will work on a social network, provided that they’re done within the platform and not as a 3rd party. “Simple, social payments” is *the* philosophy needed to do digital payments right, but once a service groks that, they need only to implement it on their own. We’ve been the thought leaders in this space, we see the hype and excitement, and yet we know very intimately the difficulties in gaining actual traction. The only way to get around this is for the platforms themselves to control payments - then all people wanting to operate on that platform would have to play along. We believe that a payments system directly and officially integrated into social networks such as Twitter and Facebook will be a huge success.

Thank you to everyone who has supported and helped us along the way.

If you have any questions, get in touch: help@tipjoy.com

Thanks,
Ivan & Abby - Team Tipjoy

Tipjoy has been added to the Deadpool.

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Facial recognition service Riya will shut down on August 21, 2009, says founder Munjal Shah in an email to users this morning. We are adding it to the TechCrunch DeadPool.

This was one of the original services that defined the early Web 2.0 movement. We first covered it, then known as Ojos, four years ago. The service changed its name to Riya before launching at a party, yes, in my back yard. Here’s our fist full overview of the Riya product, which helped users by auto-recognizing friends in photos and tagging them.

The company came close to selling to Google, but the deal never closed. And eventually the company refocused its efforts on visual search ecommerce (and is still going strong at like.com).

The email is below. Thanks for the tip, Orli.

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If the RIAA can’t stop music sharing, the U.S. government is going to have an even harder time trying to stop the sharing of federal court documents hidden behind a paywall. Those documents aren’t protected by copyright law.

The PACER service provides on-line access to U.S. Appellate, District, and Bankruptcy court records and documents. The fee to access PACER is $0.08 per page: “The per page charge applies to the number of pages that results from any search, including a search that yields no matches (one page for no matches.) The charge applies whether or not pages are printed, viewed, or downloaded.” For people who do a lot of legal research, those fees add up quickly.

Enter RECAP, a Firefox add-on created by a group of people at Princeton’s Center for Information Technology. Install the add-on and any documents you access on PACER are automatically uploaded to an Internet Archive repository. These documents are then shared with other users when they do similar searches. See a video overview of how it all works here. The repository already has over one million documents available for free download.

Is this legal? It sure is. The PACER site says “The information gathered from the PACER system is a matter of public record and may be reproduced without permission.” There’s no copyright on these documents.

PACER also says “Any attempt to collect data from PACER in a manner which avoids billing is strictly prohibited and may result in criminal prosecution or civil action.” Technically, though, the data isn’t being collected from PACER by RECAP users, although they are using the site as a search engine of sorts.

Harlan Yu, one of the creators, blogs about the project here.

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

Goodbye, Desktop Factory, we hardly knew ye. Desktop Factory was supposed to offer a sub-$5,000 desktop 3D printer. Alas, they are no more and they’ve sold their IP and assets to an unnamed buyer.

But a funny thing happened as we launched our effort to sell Desktop Factory. We found interested parties who do understand the exciting potential for this breakthrough technology. We found companies that value the industry and can visualize the myriad applications for this affordable printer. Most important, we have found organizations that engage with customers and truly want to be a part of this next major wave in additive fabrication.

Nambu Networks, the company behind tr.im, pic.im, and the Nambu social application for Mac OS and iPhone has announced that tr.im will no longer be shortening URL’s for the public. According to a blog post, the reason behind the decision is Twitter’s decision to use bit.ly for their URL shortening, as well as the cost for servers and development while there are many other solutions for URL shortening.

Nambu Networks will now focus its attention on Nambu for Mac OS and iPhone.

tr.im did well for what it was, but, alas, it was not enough. We simply cannot find a way to justify continuing to work on it, or pay its network costs, which are not inconsequential. tr.im pushes (as I write this) a lot of redirects and URL creations per day, and this required significant development investment and server expansion to accommodate.

Nambu Network’s doesn’t specifically say how many URL’s have been shortened, but looking at Twitter, tr.im was quite popular. The URL’s already shortened with tr.im will not be affected, but all tr.im links will continue to redirect, and will do so until at least December 31, 2009.

tr.im has been added to the Deadpool.

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