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Archive for June, 2012

Article from NYTimes.

 

Institutional Venture Partners has another billion to play with.

The venture capital firm, an investor in Twitter, Zynga and LivingSocial, has raised $1 billion for I.V.P. XIV, its 14th and largest fund to date.

According to a partner, Sandy Miller, the firm initially set a $750 million target but increased it on robust demand. The fund, which was raised over four months, relied mainly on capital from previous investors.

Unlike some of its peers, Institutional Venture Partners does not write a lot of checks, usually not more than a dozen a year. As a later-stage investment firm, it invests $10 million to $100 million in seasoned start-ups in three main buckets: Internet, enterprise technology and mobile.

“I hate to sound dull but we’re doing the same strategy,” Mr. Miller said.

Mr. Miller, a longtime technology investor and co-founder of Thomas Weisel Partners, is optimistic despite recent setbacks in the technology sector.

Skepticism in the public markets, most recently highlighted by Facebook‘s underwhelming initial public offering, has damped enthusiasm for some late-stage start-ups. Zynga, for instance, an Institutional Venture Partners portfolio company, has tumbled more than 44 percent since its debut last year. And plenty of experts question whether another start-up it has backed, LivingSocial, is worth such a high valuation after Groupon, its far bigger rival, has fallen about 50 percent since its I.P.O.

Mr. Miller acknowledges that some valuations may pull back, but he says he invests for the long term.

“I’ve watched the technology market over a 30-year period,” he said. “There’s more interesting, high quality companies today than there has ever been and by a very wide margin.”

He added, “In every market, most deals don’t make sense, and that’s true now, but that’s always been true.”

Read more here.

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Article from GigaOm.

Microsoft announced Monday that the company has officially acquired social software startup Yammer for $1.2 billion in cash. The purchase was widely reported more than a week ago, but Microsoft confirmed the deal Monday in a press release.

As we noted earlier this month, the purchase could give Microsoft a social dimension to its popular corporate software products. Yammer creates a Facebook-like experience for business clients.

Yammer will join the Microsoft Office division after the acquisition, but CEO David Sacks will continue to lead the group, Microsoft said in the release. Kurt DelBene, president of the Microsoft Office group, offered some thoughts on how Yammer might fit into the Microsoft world in a blog post that accompanied the formal press release:

The combination of Yammer, SharePoint and Office 365 will provide the most comprehensive and flexible solutions for enterprise social networking. Over time, I see opportunity for exciting new scenarios by adding Yammer’s stand-alone service alongside and integrated into our collaboration offerings with SharePoint, Office 365, Dynamics and Skype. I picture people being able to use Yammer to manage and expand their professional relationships, share and collaborate on Office documents, stay informed about content updates, and to seamlessly move from status updates and feeds into voice and video conversations.

Yammer most recently raised $85 million in a February funding round, which brought it to $142 million in total funding. The company currently has more than 5 million corporate users, including customers at 85 percent of Fortune 500 companies, Microsoft and Yammer announced along with the acquisition today.

“We think that Microsoft is a great partner for us,” Sacks said in a conference call Monday with DelBene and Microsoft CEO Steve Ballmer. “I think it’s really the best possible partner in terms of its reach and resources, and its ability to help us scale.”

Ballmer said Yammer’s emphasis on cloud computing fits perfectly with Microsoft’s expansion into that area, and Yammer’s popularity with corporate clients makes it a natural partner:

“What we love about Yammer is that it was built on the notion that things can grow virally,” Ballmer said.

They noted that Yammer will remain in the San Francisco area even after the acquisition with Microsoft, which is headquartered near Seattle.

“When most people thought social networking was for kids, we had a vision for how it could change the way we work,” Sacks wrote in a blog post Monday. “Four years ago, we started paddling out to catch the wave that we’re riding today.”

Read more here.

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Article from GigaOm.

It was a busy week around our offices. You might have heard that we hosted our Structure 2012 conference. Nevertheless, between all the talk of clouds, software-defined networks and giant data sets, I did manage to read some good articles and wanted to share those with you.

Read original article here.

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Spotflux Guards Your Privacy for Free

A new startup’s free app anonymizes and encrypts your connection, and scans for malware, while you browse.

By Alex Wawro, PCWorld

Keeping your data private while you’re browsing the Web can be time-consuming if you want to stop malware, IP-address snoopers, and malicious ads. Spotflux, a New York startup, is aiming to change that with a no-cost, easy-to-use program that encrypts your Internet connection, anonymizes your IP address, and reduces your risk of infection while you surf. Did I mention that it’s free?

Spotflux Guards Your Online Privacy for FreeSpotflux works sort of like a faster, simpler version of the Tor Network, though it’s not nearly as stringent about ensuring your anonymity. You download the application for Windows or Mac OS X from the Spotflux website (iOS and Android apps are in development), and run it. Installation is easy, and you can set the app to access a proxy server for added safety (or to ensure that you can reach region-restricted sites after your IP address becomes anonymous). When you access the Net while the app is running, all data moving into or out of your PC shuttles through Spotflux servers by way of a 128-bit SSL encrypted connection; software on the servers scans the data for malware (including malicious ads), and eliminates it.

This requires a certain level of trust, since the Spotflux servers are privy to everything you do. The payoff is the assurance that your activities are anonymized and protected. While Spotflux is cagey about what it looks for when filtering traffic (lest the bad guys learn how to circumvent the filters), we do know that it regularly updates its servers to scan for widespread malware such as DNSChanger. “We scour the Web for major offenders, and listen to the users on Facebook and Twitter to find and eliminate major sources of malware,” claims Chris Naegelin, who cofounded Spotflux in Brooklyn, New York, along with Dean Mekkawy. And since Spotflux’s staff operates the Spotflux servers, the service can reasonably promise that no­­body outside the company can use it to snoop on you.

Benefits and Drawbacks

Since your traffic goes through the Spotflux servers twice (first when your browser sends a request, and again when a site responds), you will see a slight performance hit. I ran speed tests, and my download speed consistently degraded by roughly 20 percent while the app was running. The upside: I never saw an irritating ad during several days of browsing, and my antivirus scans came up clean despite my rampant downloading. Plus, according to AT&T, my bandwidth usage was lower than ever during my weekend with Spotflux, which may be an unintended but wonderful consequence of filtering out unwanted ads.

Spotflux is still a relatively new privacy service, so it’s tough to anticipate how the company might respond to government or law enforcement requests for user data (see its stringent privacy policy for more information), but you should try Spotflux if you want a simple tool that increases your online privacy. Once you’re ready for more-comprehensive privacy-protection methods, check out our updated security guides.

http://spotflux.com

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