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Archive for April, 2014

 

 

Rachel Chalmers of Ignition Partners warns founders that VCs really aren’t their friends.


Senior Technology Reporter- Silicon Valley Business Journal

Pity the venture-backed startup founder. That’s the conclusion you might draw from pair of blogs posted this week.

“Why your company should avoid venture capital,” was the headline on the post from Pittsburgh-based growth consultant Andy Birol.

“Five reasons not to raise venture capital,” was the theme of a blog from Rachael Chalmers, the IT analyst turned VC at Ignition Capital in Palo Alto.

Birol’s advice seems focused on entrepreneurs that probably aren’t building the kind of businesses VCs would be interested in anyways. It’s often better to focus on pleasing customers than satisfying the demands and priorities of venture investors, he says.

“Turning to venture capital for money to grow your business is sort of like going to a bar looking for someone to marry. The longer the night goes on, the clearer it is that most people you meet have short-term objectives,” Birol writes.

Chalmer addressed Silicon Valley entrepreneurs more directly.

“The seductive narrative of Silicon Valley stars a genius-hero who goes on a journey, overcomes myriad obstacles, has a flash of insight and is rewarded by wise and benevolent investors with Series A funding. This narrative is bullshit, but it’s everywhere.”

The point of both blogs is that venture funding isn’t the best source of capital for a lot of businesses and getting VC backing is far from being a guarantee for success.

Chalmers estimates that of the 1,000 VC-backed enterprise startups she encountered in 13 years as an analyst, only eight got all the way to an IPO. A total of 188 were acquired and “28 of them failed so hard they don’t even fog a mirror any more.”

A report this week from CB Insights provides even more data on this point. Of all the VC-backed companies that raised seed money in 2009, 75 percent are orphaned, dead or became “self-sustaining.”

This last group is often termed, disdainfully, by VCs as “lifestyle businesses.” That means that there is probably a business that will spport the founders and their families but will never scale.

About 21 percent of the Class of 2009 were acquired. The rest, only about 4 percent, are still around.

The report and the two blogs make the point that the chances of success as a venture-backed startup aren’t great. They may even lead readers to wonder if things have gotten worse in that regard.

But very few VCs I have dealt with suffer fools gladly who think that startup success is easy. They actually go out of their way, as Chalmers does, to dissuade founders from that idea.

The reality is that it has never cost less to build a tech startup and it hasn’t been considered this cool to be a founder than during the tech bubble of the 1990s.

But the facts show that extremely few of these startups are likely to survive, and that doesn’t seem to be anything particularly new. It just runs counter to popular myth.

Cromwell Schubarth is the Senior Technology Reporter at the Business Journal.

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This Could Be The Most Detailed Look Yet At iOS 8, Apple’s Next Major iPhone Update

The next version of iOS is expected to usher in a significant overhaul to Apple’s mobile ecosystem that include new fitness-focused features, improved iCloud integration and some tweaks to Apple’s native apps.

Previous reports have provided some insight as to the types of changes we may see in iOS 8, but Mark Gurman of 9to5Mac has just shared a slew of new details.

Apple is referring to iOS 8 by the internal codename Okemo, according to Gurman. The change will largely focus on updates to existing apps rather than refreshing the software’s appearance. It could be the iOS update that brings Apple Maps up to par with Google Maps, 9to5Mac reports. The updated Apple Maps app in iOS 8 will feature clearer labeling and improved notating of bus stops and public transportation stations.

As Gurman reported in the past, the improved Apple Maps will come with support for public transportation directions and will utilize more-reliable data. It sounds as if Apple plans to address many of the primary criticisms that have plagued its transportation app since it launched with iOS 6.

 

Iphone 5 Apple Maps

REUTERS/Beck Diefenbach

 

 

Apple is also reportedly considering breaking iTunes Radio off into its own separate app as part of its iOS 8 update. iTunes Radio is currently a tab in Apple’s existing iTunes app, but separating it into its own app could help it to compete with the likes of Pandora, Spotify and other streaming services.

A less noticeable but still noteworthy addition to iOS 8 could be support for voice-over-LTE-support. Gurman writes that “carrier sources” have told him the next generation of iOS will be able to process calls over the same network in which data travels. Typically, if your phone is receiving a 4G LTE signal, it will process the call over 3G. Essentially, this means call quality may improve a bit with iOS 8.

Apple may also clean up the notification center in iOS 8. Currently, the drop-down menu divides alerts into Today, All and Missed tabs. The next-generation software could streamline this into just the Today view to make for a more simple viewing experience, according to Gurman.

The company is reportedly testing a new version of CarPlay, the feature that lets you run your iPhone through your car’s dashboard, that can connect to your vehicle wirelessly. The current technology requires you to connect via a Lightning dock connector. Speed is expected to improve across the entire operating system, but Gurman specifies that Apple could be testing a system that could enable the camera to snap faster photos.

 

 

Apple is likely to debut the next major update to its iPhone software at its annual World Wide Developers Conference in June. Although WWDC is still about two months away, we’re already getting a clear picture of what to expect from iOS 8.

Previous reports have suggested the iOS 7 successor will come with a new app called Healthbook which can track your steps, count burned calories, and monitor blood sugar among other fitness-focused features. Apple is also expected to tighten iCloud integration with its OS X desktop software by releasing Text Edit and Preview apps for the iPhone. An update to the iPhone’s messaging app could also let you automatically erase message threads. The next iteration of iOS could allow apps to interact with one another, creating a tighter overall user experience. For example, you may be able to automatically share photos to your preferred social networks without having to do so manually if this feature makes it to the final build of iOS 8.

From what we’ve heard, iOS 8 isn’t shaping up to be  radical update like iOS 7, but it will bring a few new and noteworthy tweaks that could improve the experience across Apple’s native apps.  

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Search Engine DuckDuckGo Is Taking On Google By Doing The One Thing They Won’t Do

 

DuckDuckGo CEO gabriel weinberg

DuckDuckGo

Gabriel Weinberg, CEO at DuckDuckGo

 

DuckDuckGo bills itself as “the search engine that doesn’t track you”. After the revelations in the US National Security Agency files, that sounds tempting.

Named after the playground game duck duck goose, the site is not just banking on the support of people paranoid about GCHQ and the NSA. Its founder, Gabriel Weinberg, argues that privacy makes the web search better, not worse. Since it doesn’t store your previous searches, it does not and cannot present personalized search results. That frees users from the filter bubble – the fear that, as search results are increasingly personalized, they are less likely to be presented with information that challenges their existing ideas.

It also means that DuckDuckGo is forced to keep its focus purely on search. With no stores or data to tap, it cannot become an advertising behemoth, it has no motivation to start trying to build a social network and it doesn’t get anything out of scanning your emails to create a personal profile.

Having answered one billion queries in 2013 alone, DuckDuckGo is on the rise. We asked Weinberg about his website’s journey.

Why did you set up DuckDuckGo in 2008?

DuckDuckGo didn’t come out of any real direct motivation to start a search engine. I had come off my last company in 2006, [The Names Database, a social network that Weinberg sold for $10m], and I was focused on a bunch of personal projects.

One was fighting spam in search results. There were a lot of sites that were just obviously spam in Google at the time, but they seemed pretty easy to identify. Another was crowdsourced data. I found myself going to Wikipedia and IMDB a lot, sites that used crowdsourced data, where you just get answers. The third leg was that I went to this stained-glass class, where they handed out a list of links that were the best places to go for more information on stained-glass production. They didn’t match the Google search results. So I started a third project about getting the links out of people’s heads, to find out where the best stuff was.

DuckDuckGo is based in the small town of Paoli, Pennsylvania. How much do you think that the location puts you outside the general Silicon Valley milieu?

Yeah, we don’t feel connected to that scene. I’m not actually from here, interestingly enough. My wife and I picked here together to move to because we thought it would be a good place to raise a family and for other, deeper reasons that don’t make sense to people outside the US. I think anyone in a similar position in Silicon Valley would have raised a ton more money a ton earlier. But that hasn’t been our focus. And also, just look at how we’ve got 75% remote workers. That’s a very non-Silicon Valley thing to do. Normally you hire the best engineers that you can out of Ivy League schools and bring them all in one place so you can get them in the company.

After all these years, it seems as if people are finally talking about privacy …

Yes, I do think that’s fair. I don’t think it’s a fad. One of the big things people have noticed in the last year is the ads that follow them around the internet and that’s perhaps the most visible notion of this new tracking mindset that most companies are adopting. Those trends are not disappearing. More tracking on the internet, more surveillance, so I think as people find out about it they’re going to be wanting to opt out in some percentage.

When you started, your sole aim was to build a better search engine. When did you decide that privacy was crucial to that?

Instant answers and spam filtering were really the initial focus there and still are in terms of product differentiation. But very quickly after that – I would have done it from the beginning had I actually thought about it, but I hadn’t – was privacy.

The data that you share with your search engine is the most personal data. Because you don’t hold back with your search engine. You don’t think about it in that context. You think “oh, I’ve got a financial problem … just type it in!” And so, that search history is really personal.

It has [also] increasingly been used for marketing, it is available to subpoena and, as we know from the last year, it’s also available through other hidden means for surveillance. Most money a search engine makes comes from showing an ad for something commercial like a car or shoes when users search for them, and it doesn’t impact that business model to not track.

Why not just anonymise the data you collect, rather than offer totally incognito searches?

The reality shows that every time someone had tried to anonymise data, it’s been a failure. As long as you can tie searches together and you keep any shred of the information, any personal information that can tie things back to you, then I think it’s not truly private.

Are you against tracking on a personal level, or is this just business?

No, I do have a philosophical opposition. I think of it as more privacy policy than general. I think they should be set up to be the minimal collection as needed, as opposed to the maximal collection possible.

The other way to look at that is I think they should have a quid pro quo, which is “you’re giving up this particular piece of personal information and you’re getting this benefit in return”, as opposed to the current status quo, which is “we will collect anything we can and not tell you what the benefits are”, just say, in general, “sure, you’ll benefit from this”.

I think that is the key difference. And you’ve seen some companies start to move to this direction, but very slowly.

Is it possible to make a good search engine without collecting Google levels of data?

I believe you can switch to us today, and you’ll be fine. And people are. And you can have a better experience! But also, if you look at your Google searches and what’s coming up, really the amount that they’re using your search history to change the search results is minimal. They are not really using that data currently to improve your search results in any significant way – as far as we can tell. They’re using it for other things. They’re using it to track you across the ad network.

Does that mean you’ve backed off a bit in your fight against personalised searches?

We’ve not backed off! I guess to restate my case I don’t think that personal data, that personalization, has been very useful.The case that everyone mentions is when, say, you type in the weather or you type in pizza and you want local weather or a local pizza place.

Do people eat pizza in the UK?

Yeah.

I figured so. So, we can do that in our instant answer box – using your location on the fly, and not store it – and not change the actual link results. So I think most of what people want that they call personalization is really localization and we can do that without tracking people.

You’ve said before that tracking might be used to charge people more if their profiles reveal they have a lot of money. Is that something you can really see happening, or is it a worst-case scenario?

It’s real, and it already is happening, and will be increased. My general view is that if information is out there that can lead companies to improve their profits, then they will do so unless it’s regulated against.

So I definitely think it’s out there, I think people just don’t know that it exists yet.

This article originally appeared on guardian.co.uk

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Apple Wants Your iPhone’s Camera To Be As Good As What The Pros Use

Apple lens patent

US Patent and Trademark Office

 

 

Apple has just been granted a new patent for interchangeable iPhone camera lenses that would significantly improve the quality of photos.

The patent was filed on Sept. 7, 2012, and could foreshadow some much-needed enhancements to Facebook albums everywhere.

The patent explains that the “bayonet attachment mechanisms” would secure a lens to the outside of an electronic device. These complicated mechanisms, attachments, apertures, and bayonets are all to say that you would be able to switch around fancy lenses that would let you take higher-quality pictures on your phone.

As Ars Technica points out, this most certainly is not the first time anyone has tried to come up with attachable lenses for phones. VicTsing offers magnetic lenses for HTC smartphones, and Sony sells aesthetically overwhelming lenses that operate like complete cameras and communicate wirelessly with Android and iOS phones.

Apple’s own take on the attachable lens will most likely resemble the former option, with an external lens that uses the phone’s existing sensor and storage.

While alternatives are already in the market, Apple owning the attachment would likely translate into sleeker, smaller lenses that seamlessly integrate into iOS. Especially with the iPhone expected to grow in size, interchangeable camera lenses may be just what the iPhone 6 is missing.

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