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HuffPost Social Reading  by John Backus Managing Partner, New Atlantic Ventures 

Reclaiming Your Online Privacy Posted

Face it. Everything you do online is visible to someone and can be used without your approval or agreement. You leave details of your online activity in your browser, on your desktop, in your smartphone. All the while, companies, your employer, advertisers and the government are picking up those traces, and piecing them together to make a more perfect profile of – you!

If you aren’t scared now about what organizations know about you, you should be.

Companies have a voracious appetite for your information. The more they know about you, the more they can charge advertisers to micro-target you. The most recent and worrisome real world example is happening as you read this — Google! They just changed their privacy policy, under the faux auspices of “simplicity across sites” to be able to track the content of the emails you write and receive in Gmail, what you search for on Google, what you watch on YouTube, and where you are looking to go on Google Maps. And that goldmine of data wasn’t enough for them. In addition, they specifically and intentionally bypassed Safari’s private browsing mode on your iPhone and iPad to learn more about you.

And, Apple let application developers exploit a flaw in iOS to see all of the contacts in your address book.

Facebook settled with the FTC last fall over its own questionable privacy policies and is now rumored (though they deny it) to be tracking the contents of your text messages from their smart phone app. “Like” something on a website? Facebook knows exactly what you were looking at. Think of every “Like” button on a web page as a Facebook cookie. And remind your friends that “Like” is simply a sneaky way for you to give more personal, valuable information to Facebook.

Your employer knows everything you do at work. They archive your emails – and the court has ruled that company emails are company property — not personal property — and that employees should not have an expectation of privacy when using company resources. Employers also know every website you visit, what pages you see, and how long you spend on each site. You have no privacy when you are working in the office, out of the office but online on your company’s VPN, or doing anything on your company-provided smartphone, tablet or laptop. What you say and where you go belongs to your employer.

Advertisers have an insatiable appetite for user-specific information. Let me share my personal story (and you can try this yourself) Using Firefox, I went to preferences, privacy, and clicked on the underlined text that says “remove individual cookies.” I was taken to a box that showed all of the cookies on my machine. I had over 1000 cookies, most advertiser-related. AND, I use Adblockplus, Betterprivacy, and had checked the privacy box titled “Tell websites I do not want to be tracked.” The same thing happens with Internet Explorer, Chrome, and Safari. Scary. With much fanfare last month, the Government announced the “Do Not Track” browser button, which 400 companies have agreed to honor. Don’t be fooled. This provides limited privacy at best — and only from specific types of advertising, and only certain advertisers have agreed to use it.

Governments want to know more about you as well. The Electronic Frontier Foundation released a report entitled Patterns of Misconduct, which outlined the FBI’s ongoing violation of our Fourth Amendment rights. If not for an aggressive, last-minute online campaign by an unofficial coalition of Internet freedom fighters, Congress was about to pass the SOPA legislation (Stop Online Privacy Act), which would have allowed (and perhaps in some cases required) the government and ISPs to inspect the contents of every packet of information sent across their networks. And Europe isn’t far behind with SOPA’s ugly cousin, ACTA, (Anti-Counterfeiting Trade Agreement) which entrepreneurs in the EU have just started fighting against.

What can you do to reclaim your privacy? There is only one thing to do:

Go invisible. That’s why our venture firm invested in Spotflux. Started by two Internet freedom fighters that have more than a decade of experience solving large-scale security challenges, Spotflux is a free privacy application for consumers, which works by encrypting your Web connection. It downloads in less than a minute on any Windows or Mac computer, anywhere in the world. Spotflux ran a beta test and in less than a year, attracted 100,000 users in 121 countries. It launches globally today.

Spotflux encrypts everything that leaves your desktop, pushes the data through their privacy-scrubbing service, and sends it along. To a website, you are not you — you are Spotflux. And you are invisible unless you choose to login to a website, like your bank, Google, Twitter or Facebook. Even then, companies only know what you do on their site. When you log out, they don’t see where you are on other sites. Better yet, Spotflux’s HTTPS security means no one can eavesdrop on your conversation over a public Wi-Fi connection. And you can surf just as freely overseas as you do in the U.S. Want more? Spotflux also strips out annoying ads and injects real-time malware detection into your browser. Consumers, policy makers and activists are fighting the privacy issue hard but they often face a daunting and cumbersome process. It shouldn’t have to be this way, which is why we think Spotflux is on to something.

Weigh in here with your own privacy horror stories and what you think can be done to reclaim our lost privacy online. Follow John Backus on Twitter:

http://www.twitter.com/jcbackus

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Article from GigaOm.

“Akamai said it purchased Canadian web site optimization company Blaze Wednesday, ahead of its financial results call. In acquiring Blaze, content-delivery network leader Akamai offers an excellent example of how the web is changing as we access it from more devices and as the nature of the web sites we visit changes. This small deal illustrates some big changes in the web.

Blaze, which was formed in 2010, offers a service that helps web sites load faster by optimizing the scripts running on the site. It also recommends clients add a content delivery network and complements the software and CDN mix with consulting services for folks that want to go further. The optimization happens on the backend on Blaze’s servers, so the consumer’s front end experience was faster and fitted to the device he was on at the time. Other companies in this space include Aptimize.

In buying Blaze, Akamai is acknowledging that web sites today are accessed in more places, something anyone who’s been in a Starbucks lately can tell you, but also that the sites themselves are different. They use richer media and offer links back to more applications. Things like sharing something on Twitter or liking it on Facebook via a simple button add seconds to load times and complexity to the overall site. Complicated CSS scripts and lagging ad networks don’t help either.

Blaze was a natural fit for Akamai in many ways as Akamai tries to take its CDN beyond the old days of static content delivery to delivering optimized advertising, helping bring content to mobile devices, and otherwise adapt to the application-heavy and real-time nature of the web. Where web sites were once comprised of fairly simple code optimized for one or two browsers, they’re now a mash up of many applications from different places being viewed on as many as 10 different browsers and platforms. Akamai is just trying to keep up.”

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Article from NYTimes.

“On a recent Thursday night I stood motionless and perplexed on the dance floor of a San Francisco club. As I looked around, 300 or so people danced and darted back and forth to a free open bar while laser lights shot overhead. Cellphones glowed, like a video of luminescent jellyfish, as people snapped pictures and slung moments of the evening onto dozens of social networks.

What made the evening so perplexing was that the party I was attending celebrated Path, a mobile social network that just two months earlier was essentially written off in Silicon Valley. If the company held a party back then, people would have assumed it was a going-out-of-business sale. Now, after rebooting to positive reviews from the blogosphere, Path is again the talk of Silicon Valley. Some are even proclaiming that the company could be “the next Facebook.”

Watching the Valley’s perception of Path go from positive to negative and back has been like watching a hyperactive child with a yo-yo. The valuation has oscillated in near synchronicity.

This, I have learned, is the mentality of much of Silicon Valley, where decisions are not always made based on revenue or potential business models, but instead seem to be driven by a herd mentality and a yearning to be a part of a potential next big thing.

This is most evident in the valuations that are given to companies here. Two start-ups, each with 10 million users and no revenue, can be valued anywhere from $50 million to $1 billion.

Facebook is a prime example of this. The company does generate considerable revenue and is currently valued at $84 billion and is expected to reach $100 billion by the time of its initial public offering later this year. That’s a higher market valuation than Disney or Amazon.

Paul Kedrosky, an investor and entrepreneur, explained in an interview that one reason valuations are so wildly inflated is that venture capitalists want to be associated with a potentially successful start-up just so it looks good in their portfolio. This, he said, has driven absurd buying on the secondary private market, where stocks are bought and sold before a company goes public.

“There is massive buying on the secondary market by venture guys just for the showmanship of it,” he said. “These buyers are much less price sensitive and just want a company in their portfolio so they can stick the logo on their Web site.”

A report released last week by SecondMarket.com, such an online marketplace, said it had $558 million in transactions in 2011, up 55 percent from the year earlier. Almost two-thirds of those transactions were for consumer Web sites and social media start-ups.

Other investors give money to several companies hoping to strike it rich with at least one. I call that the Peter Thiel Effect. Mr. Thiel, a co-founder of PayPal, gave $100,000 to Mark Zuckerberg, a founder of Facebook, when the company was starting out. That investment is expected to be worth $1 billion when Facebook goes public.

In other instances, you have spite investing. This is when venture capitalists will give millions of dollars to a start-up simply because they were not given the opportunity to invest in the competitor with the original idea.

Some investors no longer even need to hear about a company to hand out money. Jakob Lodwick, an entrepreneur and co-founder of Vimeo, recently raised $2 million simply on the promise that he might have a good idea for a company in the near future.

It’s as if someone found out where Hasbro prints Monopoly money and gave every venture capitalist a key to the company’s storage facility.

“I have never seen such a generation of people shorting tech stocks,” Mr. Kedrosky said, noting that he too has chosen to bet that Groupon, Zynga and LinkedIn will fall significantly in value. “Usually the short community is more nervous about it, but there is a monolithic view that this generation of technology I.P.O.’s is completely broken.”

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Article from SFGate.

“Facebook and Yelp are set to lead the biggest year for U.S. initial public offerings by Internet companies since 1999, testing demand for IPOs after investors lost money on Zynga and Pandora Media.

With Facebook considering the largest Internet IPO on record and regulatory filings showing that at least 14 other Web-related companies are planning sales, the industry may raise $11 billion next year, according to data compiled by Bloomberg. That would be the most since $18.5 billion of IPOs in 1999, just before the dot-com bubble burst.

While surging sales growth may lure investors to Facebook, the biggest social-networking site, heightened stock volatility and Europe’s sovereign-debt crisis could temper the pace of global IPOs after a 38 percent decline in 2011. Even Internet companies may cut valuations for their offerings after Zynga, the largest developer of games for Facebook, and online radio company Pandora slumped following share sales this year, according to researcher Morningstar.

“Technology is still a place where you can get outperformance in terms of growth against a tepid market backdrop,” said David Erickson, global co-head of equity capital markets at Barclays. “You might see more IPOs emerge if we get resolution in Europe or stability that makes investors more comfortable with the overall market.”

IPOs raised $155.8 billion in 2011, compared with $252 billion a year earlier, and U.S. initial offerings generated $38.8 billion, about 10 percent less than in 2010, Bloomberg data show. In Asia, IPOs this year have raised $79.2 billion, less than half the $176.5 billion last year, Bloomberg data show.

While funds raised in Europe rose for the year, they sank more than 95 percent since August from a year earlier after the worsening debt crisis and a cut to the U.S. credit rating sapped confidence in global markets.

Morgan Stanley

Morgan Stanley took the biggest share of both U.S. and global IPOs for the second year in a row after working on initial share sales by Glencore International, HCA Holdings and Michael Kors Holdings. Pen Pendleton, a spokesman for Morgan Stanley, declined to comment.

The bank also was the lead underwriter on Zynga and Pandora’s IPOs. The stocks’ declines following those public debuts may prompt greater scrutiny of valuations in 2012, said James Krapfel, an analyst at Morningstar in Chicago.

“Investors will take a harder look at the numbers going forward and need to see strong revenue and profit growth,” Krapfel said. Bookings, an indication of deferred revenue, at Zynga have increased more slowly this year, suggesting the company’s IPO price was too high, according to a Dec. 9 Morningstar report.

Zynga, which raised $1 billion in its IPO this month, has since fallen 2.5 percent after going public at a valuation three times that of Redwood City rival Electronic Arts. Oakland’s Pandora has plunged 36 percent since its June 14 IPO.

Facebook, based in Menlo Park, is examining a $10 billion offering that would value it at more than $100 billion, a person with knowledge of the matter said last month. Total sales at Facebook in 2012 may surge 52 percent to 62 percent from this year’s projected $4.27 billion through increased ad revenue, according to Debra Aho Williamson, an analyst at EMarketer. Industrywide, the display ad market may surge 24 percent to $12.3 billion this year.

“Tech offerings generally offer real growth, and investors get very excited when they can’t find growth in the broader market,” J.D. Moriarty, co-head of equity capital markets for technology in the Americas at Bank of America, said at a briefing this month.

Yelp, the consumer-review website operator, and e-mail marketer ExactTarget both filed for IPOs in November. This year, 19 Internet companies generated $6.6 billion in U.S. initial share sales.

Going public

Glam Media, a Web-advertising company that targets women, plans to make its first IPO filing by the end of the second quarter, people familiar with the matter said. AppNexus, the online-ad company backed by Microsoft, may go public in late 2012, Chief Executive Officer Brian O’Kelley said. Companies like MobiTV and Eloqua, which rely on the Internet to distribute cloud- based software products to clients, may seek an additional $650 million, regulatory filings show.

In Europe, the IPO market has “essentially come to a halt” as the sovereign-debt crisis spread from Greece to Portugal and Italy, said Mary Ann Deignan, head of equity capital markets for the Americas at Bank of America. In September, Siemens AG suspended an IPO of its Osram lighting unit and Spain pulled the initial public offering of its lottery operator as global stocks headed for a one-year low.

“There are companies that would like to go public but are waiting for the right market environment to do so,” said Deignan, speaking at a briefing this month. “As long as policymakers and politicians control the headlines, Europe remains a challenge.”

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/12/28/BUE01MHK4V.DTL#ixzz1hv9KomS3

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Article from SFGate.

“If Facebook is like hanging out at a banquet with a large buffet to feast on, then social network Path is an intimate dinner with close friends. Path is now getting new silverware and table decorations, so to speak, with the release of updated software.

CEO Dave Morin, a Facebook alum, says the dinner-party philosophy remains but users can now share their comings and goings with up to 150 friends, up from the original 50.

With the new version available this week, a year after its debut, Path aims to be more than a sharing application. It wants to be a digital journal that documents your days with a push of a button.

Morin describes it as “a slightly social experience.” You’re not just updating it to share your day with others; you’re recording your life for yourself.

“The idea has always been to give you a trusted place to share with your close friends and family,” Morin said. “Now that the (mobile phone) is the accessory you have in your hand all the time, it’s become a journal.”

Path began as an iPhone application for sharing photos and videos. Users later got the ability to add one of five emoticons to their friends’ photos.

The new version lets users post music and tell everyone where they are, with whom and whether they are awake or asleep. It’s also compatible with Android-running phones for the first time. And, it includes technology that allows the application to make updates on its own, as long as the user agrees to it, or opts in.

For example, if you fly to Minneapolis, the application can track you with GPS and post this when you land: “Arrived in Minneapolis, it’s 6:06 p.m. Mostly cloudy and 50 degrees.” The location updates are neighborhood and city specific but will not pin an actual location.

Morin says the auto-updates make it easier for users to share richer content without much effort. And, while the details may seem personal, your network is only of close friends and family.

The update retains strict privacy controls, which Morin says is key to making people comfortable with sharing, especially in the wake of high-profile debates over privacy issues at Facebook.

On Tuesday, the government announced a proposed settlement with Facebook over “unfair and deceptive” business practices. The pact requires the company to get people’s approval before changing how it shares their data.

The new version of Path integrates larger social networks Facebook, Twitter and Foursquare, allowing status updates to those sites from the Path application.

Morin says the San Francisco-based startup has enough funding for its next stage and just hired its 20th employee. Path has more than 1 million users.”

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