Boston Globe, January 06, 2009
By Erica Noonan
You cofounded Twitter.com with venture-capital money back in 2006, and it still isn’t turning a profit. In November, the company declined Facebook’s offer to buy it for $500 million. Say what? We admire and respect Facebook. We are big fans, actually. They approached us, and we took it seriously. But we feel like we want to continue this path we’re on—sustaining this innovation—and the time is not right.
I guess we have a lot of things we think we can prove. We’re thinking really hard about sustainability and revenue and about developing the technology and seeing it taking off.
The 2008 presidential election was Twitter’s biggest day ever. Do you think the technology impacted the election in a positive or negative way?
We expected it to be big, and it was—activity was up by 500 percent. Both [Barack] Obama and [John] McCain twittered, and we had a special election news page set up for all the tweets. Someone called this the first “two-screen” election—people were glued to their televisions and the Internet, reacting to the debates and then the election as they happened. I feel like we helped change democracy to real time.
It’s pretty cool to invent a technology with its own set of descriptive terms. People “twitter” and “tweet” and . . . Someone came up with the word “twoops” to refer to a message you meant to text your friend, but you sent it to Twitter by accident.
Wall St. Journal, December 08, 2008
Greg Osberg, who in September resigned as president of Newsweek, has been hired as chief executive officer of Buzzwire Inc., a Denver mobile-video company.
The two-year-old Buzzwire helps mobile carriers and content producers publish video and Internet radio on mobile devices. It worked on Verizon Wireless’s m.vcast service, which lets users view and share videos on their cellphones, and also counts as clients AT&T Inc. and Alltel Corp., which has now been acquired by Verizon.
Buzzwire founder Andrew MacFarlane said he intends to expand the company’s slate of products and wanted a CEO with experience in the transition of content from print to the Web, which he said is now being replicated in the shift of online content to mobile devices.
Mr. Osberg, 51 years old, spent most of the past 18 years at Newsweek, where he launched a mobile version of the magazine in 2006 and re-launched Newsweek.com last year. Mr. Osberg also spent three years as president of sales and marketing for CNET.
MarketWatch, December 02, 2008
5min VideoSeed(TM) semantic technology allows publishers to match relevant, ad-supported instructional videos to their lifestyle, knowledge and information textual sites.
5min, ( www.5min.com), a leading destination site and distributor of online how-to videos, today announced its VideoSeed semantic syndication platform for instructional and knowledge video programming now reaches more than 110 million unique users a month via its vast network of comprehensive knowledge and information syndication partner sites. 5min pairs brand advertising with tens of thousands of professionally-produced, niche-specific “how-to” titles produced and licensed from hundreds of content partners for semantic delivery via the VideoSeed platform.
5min has closed syndication deals with horizontal sites such as Answers.com, wikiHow, Wikia and Articlesbase as well as vertical sites including Tim Carter’s Ask the Builder, Recipe4Living and Pregnancy.org. Concurrently, 5Min has closed content agreements with Ford Models, Kiplinger’s, Elle, Car & Driver, Petside, Britannica, Big Think, WatchMojo, Road & Track, Woman’s Day and others.
New York Times, November 21, 2008
Shaquille O’Neal had a problem. An Internet impostor using his name was sending messages to unsuspecting Shaq fans. So O’Neal did what any sensible, 7-foot-1, muscle-bound mammoth would do. He started tweeting.
Shaquille O’Neal has moved into the Internet territory of his impersonator, ShaquilleONeal.
“This is the real SHAQUILLE O’NEAL,” came the message from The_Real_Shaq, via Twitter.com, early Tuesday morning.
A clarification was in order because, for the last several months, someone registered as ShaquilleONeal was sending frequent messages, or tweets, to hundreds of subscribers.
The synthetic Shaq sounded a lot like the real O’Neal. His blurbs were whimsical, boastful and creative, even adopting O’Neal’s unique grammatical flourishes.
“My tweets are Shaqalicious,” ShaquilleONeal wrote Nov. 11.
“Andrew Bynum’s knee is like Erika Dampier ... fragile,” ShaquilleONeal wrote Sept. 30, dealing a two-fisted insult to the Lakers’ Andrew Bynum and the Mavericks’ Erick Dampier.
The real Shaq — who could fill an almanac with clever quips — could hardly have said it better. Now he is. O’Neal opened his own Twitter account this week to connect with fans and to take back his identity.
TechCrunch, November 18, 2008
Boxee, maker of a social media center software platform for HDTVs and laptops, has secured $4 million in first round funding from Spark Capital and Union Square Ventures.
The two firms each accounted for exactly 50% of the investment. Bijan Sabet from Spark and Fred Wilson from Union Square (also see Fred’s blog post on the investment where he calls boxee the ‘Firefox of media center software’) will join the boxee board.
Boxee is bringing us a step closer to a true open, social TV experience. The app gives your computer (Mac OSX or Linux, and soon also Windows) or AppleTV a TV-like interface where you can stream local files like personal videos, music, and photos as well as third-party, mainstream web content from sites like YouTube, Hulu, Comedy Central, CNN.com, ABC.com, Last.fm, Flickr, etc. Basically anything that isn’t DRM-protected (which also means there’s no chance you’ll be able to play your entire iTunes library with boxee).
Update: also check out this related post on Netflix streaming movies and TV episodes instantly to the TV via the Xbox 360, starting tomorrow.
Boxee also enables you to retrieve music and movie reviews, song lyrics, trailers, album artwork etc. from the internet, and comes with a social layer too: you can share information about what you’re watching with friends and make recommendations. You can also add services like Twitter, FriendFeed and Tumblr and post to them from the (beautiful) boxee interface, which turns it into a very powerful communication hub to boot.
I gathered from John’s initial review on Crunchgear that boxee uses XBMC, a media center system that makes everything look as elegant as it does. XBMC was created by creative developers who had modified first-gen Xbox consoles to run the software once it was sent over to the machine through FTP. It’s open-source, so that means developers are free to work with the code in order to create their own plug-ins, skins, and alternate interfaces.
Boxee says it is going to need the funding to be in a better position for negotiations with larger content providers like CBS, Hulu, Netflix, Amazon, and the BBC. Boxee is also talking to a series of hardware manufacturers who could be interested in licensing its software for set-top boxes.
Boxee is only available for closed alpha testers for the time being, and has already received 100,000 sign-ups according to the company blog post. They’re aiming for a beta release in 2009, which sounds rather vague. The software is completely free, although we assume a premium version is in the works.
The company was founded in 2007, has about 10 employees and has offices in New York City and Israel. The company previously raised an undisclosed amount of seed money from friends and family.
CNN Money, October 28, 2008

At Barely Political’s headquarters in New York City, cameraman Ian Jenkins fits the bull head on actor Steve Nelson before they head to Wall Street. The satirical Web site is behind videos like Obama girl (remember the YouTube hit, “I Got a Crush on Obama”?). Its parent company, Next New Networks, has raised $21 million from investors like Goldman Sachs.
[By Scott Cendrowski] For the complete article, see the following link
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Press Release, October 27, 2008
Menara Networks, an optical networking specialist, was named as the telecommunications industry’s “Best New Startup” at Light Reading’s annual Leading Lights Awards gala dinner in New York City on Monday night. The award acknowledges Menara Networks’ innovative and unique products and solutions that bring disruptive economics to the transport of 10 GE Ethernet services.
Menara’s CTO & co-founder Salam ElAhmadi, who accepted this prestigious industry award on behalf of the company, praised Menara’s team of outstanding engineers and employees, and the company’s unique silicon and system expertise for delivering the industry’s only system-in-a-module that greatly simplifies Ethernet transport networks.
Leading Lights Awards were determined by a panel of judges comprised of editors from Light Reading, the world’s largest online news service dedicated to the telecommunications industry and analysts from Heavy Reading, a market research organization with similar focus. The judges also took into consideration an extensive industry-wide on-line survey that cumulated in over 26,000 votes. The Leading Lights Awards recognize public and private telecommunications companies for their outstanding achievements in next-generation communications. The “Best New Startup Award” is bestowed upon a “recently launched private company that ...has the best chance at success because of its proven managers, solid backing, and interesting products or services addressing next-generation communications markets.“
Menara’s CEO, Siraj ElAhmadi said, “We are proud to receive this award from such a credible industry source. We are excited and humbled by the strong endorsement we have received from the industry for our game-changing products and solutions, as expressed by the large number of votes cast in our favor. We strongly believe that, in light of the difficult economical situation, our game changing products, that eliminate substantial capital and operational cost from the network, are a great asset to service providers world-wide. We look forward to continue working with our customers and partners and make positive contributions to their bottom line and time-to-market.“
About Menara Networks
Menara Networks develops innovative products and solutions that greatly simplify today’s layered optical transport networks. Leveraging the company’s proprietary high speed ICs and its extensive expertise in optical networking and system design, Menara products provide optical networks with superior performance and improved service velocity while reducing network elements and overall network cost. Menara’s MSA-compliant transceivers with integrated ITU-T G.709 OTN enable OEM customers to seamlessly and rapidly unlock the potential of their platforms by offering unique opportunities for expanded addressable markets and faster revenues. The Company is funded by Sigma Partners, Spark Capital, Concept Ventures, and Applied Materials venture capital arm. Menara is headquartered in Dallas, Texas and has an IC design center in Irvine, California.
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Wall Street Journal, October 27, 2008
One of the hottest technologies in Silicon Valley is also one of the simplest.
The online service from Web start-up Twitter Inc. prompts users to do one thing: answer the question, “What are you doing?“ in 140 characters or less. People type these brief updates, known as “tweets,“ into Twitter’s site or send them to Twitter as text messages. Friends and colleagues can then check the site to monitor each other’s updates.
When the service first appeared a couple of years ago, its appeal seemed largely limited to narcissists who wanted to let everybody know what they were doing in real time. But, like blogs and social-networking sites, Twitter is starting to cross into the mainstream, as a wide range of people find interesting uses for the brief notes.
Doctors are using Twitter to update patients about office hours. Local groups such as the Los Angeles Fire Department are using it to share details about service calls with interested residents, occasionally with graphic descriptions of the victims’ conditions. And dozens of major companies, like computer maker Dell Inc., use Twitter to share deals and product news with people who sign up for the service.
Twitter co-founder Biz Stone, a San Francisco-based entrepreneur, says the company is encouraged that businesses are starting to take to the service. “Looking at the value commercial entities are getting out of Twitter could help us build a sustainable company,“ he says, noting that Twitter might charge for premium services in the future.
All Atwitter
Twitter’s user base is still relatively small, but it’s growing very fast. The company says the number of active users rose sevenfold in the past year. Twitter wouldn’t disclose the total number of users, but for a rough idea of the service’s scope, consider this: Twitter.com had more than a million unique visitors from the U.S. in August 2008, up from just 282,000 in August 2007, according to research firm comScore Inc. Those numbers are likely to underestimate overall usage, much of which happens on mobile phones.
Part of what lures people to the service is ease of use. Users sign up for an account on Twitter.com by creating a user name. Then they can start posting updates through the Web or via text message. The updates appear on Twitter.com or other sites that users connect to their Twitter accounts, such as social-network pages. Users can keep their entries public or visible only to people whom they’ve approved to see them, such as family or friends.
To get the most out of the service, users not only can post updates but can choose to follow others’ Twitter entries as well. To do so, a user—call him Bob—can sign up to follow another user—Mary—by going to her account page and clicking a “follow” button. Then Mary’s updates will appear on Bob’s home screen when he logs into the service, along with updates from the other feeds that Bob chooses to follow. Bob can also see the updates on his cellphone, using Twitter’s mobile Web page or a third-party service.
Twitter can be useful for keeping up with friends, but businesses are also finding ways to employ it. Daniel Rothamel, a real-estate agent from Palmyra, Va., follows feeds from more than 1,000 people, including neighbors and fellow real-estate professionals. The 27-year-old searches the site for people who indicate that they are seeking real-estate help in his area; once he used the service to exchange messages with a potential customer, who later changed his plans.
Mr. Rothamel also uses the site regularly as an instant advice hotline. He recently used the service to pose a question about whether a client could qualify for a particular type of mortgage for a property where the well hadn’t received a safety test. A fellow Twitter user, a mortgage broker in Denver whose updates Mr. Rothamel had been following, quickly responded, “Yes.“ The client got the mortgage and closed on the house a week later.
Mr. Rothamel doesn’t just seek out professional advice, though. He once used the service to help identity some flowers growing in his front yard. He snapped a photo of them, uploaded the image to a Web site, posted a link to the site through Twitter and asked for help. Someone quickly responded, warning him not to pull the flowers up—they were daylilies and would bloom soon enough.
Part of the Crowd
Professionals such as Mr. Rothamel often start using Twitter during conferences, where there is a steady stream of news to share and people are eager to know what’s going on around them. Mr. Stone, the Twitter co-founder, notes that the service typically gains a bunch of new users around big and small events, everything from political debates and concerts to hurricanes. As a result, Twitter is looking at ways to allow people to indicate that they are attending a particular event, so they can more easily share updates with others who are there.
Other users are flocking to Twitter as an easy self-publishing and promotional tool. People are using it to build up their professional reputation by sharing updates about their work in a less time-intensive way than starting a blog. Andrew Flusche, an attorney in Fredericksburg, Va., recently used Twitter to promote a webinar he was holding on trademark registration. The session got 15 attendees, compared with seven for a subsequent seminar he didn’t promote on the service.
Mr. Flusche, 26, has also found the service handy for referring cases to experts in other areas, as well as keeping up with professional contacts he doesn’t see often. “You get interesting glimpses of them,“ he says. “It’s a different way to network with people and get to know them.“
Still, using Twitter can be frustrating if others aren’t playing along. Earlier this year, Oliver Bogler, an associate professor in the department of neurosurgery at the University of Texas M.D. Anderson Cancer Center, tried to use Twitter to communicate with his lab. He felt it would be handy for sharing updates about meetings or interesting research.
But his team didn’t take to the service and never really began checking it. He suspects they didn’t spend enough time at their desks to check Twitter online, and they failed to activate the service on their mobile phones.
Dr. Bogler also found the performance of the service a bit finicky; sometimes it took a while for updates to post. “I am not sure Twitter is ready for the professional scene yet,“ he says. “The barriers to entry are enormous.“
Twitter’s Mr. Stone says the company “has made great advances in reliability and performance” in recent months and will continue to improve. “We still have work to do,“ he says.
Twitter is already spreading quickly at several companies, however. Online shoe retailer Zappos.com Inc., of Henderson, Nev., has more than 450 employees using the service to communicate with one another on topics ranging from politics to marketing plans. Zappos Chief Executive Tony Hsieh kicked off the trend by launching his own personal Twitter account, and continues to blast out updates about his activities to his more than 14,000 followers.
To help employees get the hang of the service, Zappos has begun offering classes. They range from teaching basics like how to follow a friend’s updates to “advanced” topics like using third-party services for fancier tasks, such as adding images to one’s Twitter stream.
Some companies are using the service as a way to reach out to customers. Frank Eliason, director of digital care for Comcast Corp., often resolves dozens of customer-service issues a day over Twitter. Several months ago, employees of the cable operator started mining public Twitter accounts to detect issues people were having with their service, from faulty DVRs to troubled Internet connections.
The Philadelphia-based cable giant now has a seven-person team that works to help resolve those issues over Twitter or by looking up customers’ contact information and calling them at home. “Now we can search for what people are saying [about us] and utilize it,“ says Mr. Eliason.
[By: Jessica E. Vascellaro]
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Press Release, October 27, 2008
Mandalay Media, Inc. (MNDL.OB) (the “Company”) announced today the completion of the acquisition of AMV Holding Limited (“AMV”), a European leader in direct-to-consumer mobile Internet content and services. The Company paid $10.75 million in a combination of cash and the issuance of a promissory note, as well as delivered an aggregate of 4.5 million shares of the Company based on the value of $2.67 per share. Concurrent with the closing of the acquisition, the Company secured a $4.5 million equity financing at $2.67 per share, which includes 50% warrant coverage with each warrant having an exercise price of $2.67 per share. Further details of the transactions will be available in a Current Report on Form 8-K, to be filed by the Company with the Securities and Exchange Commission. AMV will be integrated with Mandalay Media’s mobile subsidiary, Twistbox Entertainment, Inc. (“Twistbox”). Together Twistbox and AMV will employ over 200 people, with offices in the Unites States, United Kingdom, Germany, Poland, Russia, Mexico and Brazil. AMV’s UK offices in Marlow will serve as the Company’s European mobile headquarters. Twistbox and AMV have a combined distribution and reach in excess of 1.2 billion mobile devices. On a monthly basis, the Company’s current services and destinations represent a growing base of more than three million mobile subscribers and in excess of 100 million page views. On a pro forma basis for the six months ending March 31, 2009 (i.e., the second half of the Company’s fiscal year), combined revenues are expected to be in excess of $30 million, with EBITDA (excluding stock option expense) of approximately $4 million. The forward looking pro forma estimates are based on April 1, 2008 to September 30, 2008 historical operating results for both AMV and Twistbox and do not include anticipated operating efficiencies or synergies.
“The acquisition of AMV allows us to almost triple our monthly mobile revenue while gaining the scale and profitability to be a worldwide force in the expansive mobile content arena,” said Bruce Stein, CEO of Mandalay Media. “Mobile is the first of several digital media businesses that Mandalay plans to build. The combination of Twistbox and AMV is a great example of what our team and platform is capable of creating in just eight months.”
“The combination of Twistbox’s global on-deck distribution with AMV’s direct-to-consumer expertise uniquely positions Mandalay Media to deliver compelling consumer propositions while maximizing revenues for its wireless operator and content partners,” stated Twistbox CEO Ian Aaron. “AMV’s Founders and Managing Directors Nate MacLeitch and Jack Cresswell have demonstrated over the past four years their ability to drive both growth and profitability in a rapidly developing European mobile market while positioning AMV as a leader and innovator in marketing mobile internet services.”
“This is a great opportunity to take our direct-to-consumer business to the next level,” stated Nate MacLeitch. “We are excited about the opportunity to accelerate our revenue growth by taking our proven products and mobile marketing capabilities into Twistbox territories including the United States, Europe, Latin America and Asia and enhance our offering with Twistbox ’s stable of leading consumer branded content and partnerships. We see a great opportunity in these market conditions to leverage the platform created by Mandalay Media to grow our business organically and through other strategic acquisitions.”
About AMV Holding Limited:
AMV is a leading mobile media and marketing company delivering games and lifestyle content directly to consumers in the United Kingdom, Australia, South Africa and various other European countries. AMV markets its well established branded services including Bling, Phonebar and GameZone through a unique Customer Relationship Management (CRM) platform that drives revenue through mobile internet, print and TV advertising. For more information, please visit www.amvholding.com.
About Twistbox Entertainment, Inc.:
Twistbox is a leading global producer and publisher of mobile entertainment. Twistbox has exclusive licenses with industry-leading brands, direct distribution with more than 120 wireless operators in over 45 countries and provides an extensive portfolio of award-winning games, WAP sites and mobile TV channels. For more information, please visit www.twistbox.com.
About Mandalay Media, Inc.:
Managed by leading media and technology industry executives, the Company’s mission is to build a unique combination of new media distribution and content companies through acquisitions with domestic and foreign businesses with strong management teams and historical financial performance. For more information, please visit www.mandalaymedia.com.
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Mashable, September 23, 2008
Adap.tv, creators of OneSource, the first platform to help publishers fully monetize their online video content, today announced that it has secured $13M in Series B venture funding. Led by Spark Capital, the Series B round also includes existing investors Redpoint Venture and Gemini Israel Fund. As part of the investment, Spark Capital General Partner Dennis Miller will join the Adap.tv board of directors. Adap.tv will use the financing to accelerate the development of its flagship offering Adap.tv OneSource and its adoption by video publishers and online ad networks.
“Amir and his team have created a technology platform that addresses key pain points for publishers of online video as well as online ad networks,” said Miller. “By removing roadblocks that have prevented the growth of online video advertising, Adap.tv OneSource has the potential to open up vast new areas of monetization, and is rapidly delivering on that potential.”
The opportunity for online video advertising is significant. According to eMarketer, nearly 67 percent of US Internet users view online video ads at least once a month in 2008 and 129.5 million people will watch online video ads this year. By 2013, an estimated 183 million people in the US will watch online videos.
Following a $10M Series A round led by Redpoint Ventures and Gemini Israel Funds in July 2007, this investment makes Adap.tv one of the best capitalized companies in the video advertising space. Since Adap.tv launched OneSource in April, it has signed partnerships with leading video websites, including BitTorrent, Metacafe, DemandMedia, blip.tv and nearly 300 others. With Adap.tv as the latest portfolio addition, Spark Capital focuses on the conflux of the media, entertainment and technology industries with current investments including, Twitter, Veoh Networks and EQAL.
“We recognized Spark Capital as one of the most knowledgeable and influential teams in the online video world,” said Amir Ashkenazi, founder and CEO of Adap.tv. “Today’s funding round represents a tremendous vote of confidence in our value proposition and vision to accelerate adoption of online video advertising through our industry leading OneSource platform.”
Adap.tv OneSource empowers online publishers to run ads in any format and from any source on their video content, without having to perform multiple ad network integrations or adopt special video serving technology. Publishers using Adap.tv can choose from a wealth of online video advertising formats, such as pre-roll video ads or overlay ads, to maximize revenue and protect the user experience. Ad sources may include the publisher’s own sales team or any number of video, display or text ad networks.
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xconomy.com, September 17, 2008
Boston venture firm Spark Capital launched three years ago with a relatively small $260 million fund mainly targeting early-stage investments at the “conflux of the media, entertainment, and technology industries.” Small funds typically focus on a given geographical region, in addition to their specialty areas. But on Monday, when Spark announced the hiring of former New York media executive Moshe “Mo” Koyfman as a principal, it was billed as helping the firm expand in the Big Apple. Indeed, Spark has made only a small percentage of its investments on its home turf – and it’s looking farther and wider as it establishes itself among the elite of media investors, with major plays in CNET Networks and Twitter, as well as a variety of interesting startups.
To learn more about the strategy behind the firm’s expansion, I asked Spark co-founder and general partner Todd Dagres about the trends he sees in media, technology, and entertainment – trends that are driving Spark’s investments (the company closed a new, $360 million fund earlier this year). We spoke, in particular, about how social media sites like YouTube, networking services such as Twitter, and Internet TV networks like Veoh (another Spark portfolio company) are using technology to distribute content directly to consumers – and how consumers, in turn, are using them to program their own entertainment. These changes are rocking traditional media, and everyone – old media and new media – is struggling to understand how to capitalize on the new media behaviors. The stakes are enormous. Says Dagres, “It’s hundreds of billions of dollars that are now ups for grabs in the whole distribution and consumption of content.”
Taking part in this disruption, and finding ways to monetize it, has always been a focal point for Spark – and its growing footprint in New York and beyond is only a manifestation of that.
“We had to make a decision. Do we want to invest in the best deals we can find close to home, or do we want to invest in the best deals we can find? And we decided on the latter,” Dagres says. As a result, he says, “We find ourselves less focused geographically on the New England area, and more focused on the space that we’ve targeted. Right now about a third of our companies are in New York, a third are in California [split evenly between north and south], and a third are everywhere else, including Boston. We’ve actually got more deals in New York than we do in Boston, but that’s because New York is a media capital.”
The strategy seems to be working. Judging by the scope of the firm’s deals, and its participation in major plays like CNET’s recent sale to CBS or Twitter’s financing, Spark is becoming an increasingly influential presence on the media-entertainment-technology landscape. Dagres says it took a while for the firm to make its mark. But now, three years into Spark’s existence, he says: “People know who we are. We’re productive as a team. We feel like we have a good sense of where to invest. We feel like we can compete with anybody in the areas we’ve chosen to focus on.”
So what are those areas? I asked Dagres what trends, or aspects of the ongoing media disruption, he is focused on now. He named three.
“One huge trend is monetizing all of this digital media and this social Web experience,” he says. “You’ve got lots and lots of eyeballs on the Web now looking at video, listening to music, and creating their own personal presence on the Web. The monetization has not yet caught up.” But, he says, “that’s normal. When TV first came along they didn’t know how to monetize it.” Indeed, TV shows had sponsors, rather than advertisers – and they sold tickets to the shows, he says. “And now, of course, it’s an $80 billion business.”
Dagres gave me a few examples of Spark investments aimed at “bridging that gap between the engagement online and the money that’s flowing there.” One is San Diego-based Veoh, which aims to deliver full-screen, high-quality video over the web, bypassing traditional broadcasting systems and regulatory restrictions. Another is Next New Networks, a New York startup founded by veterans of AOL and MTV, among others, to produce web-based “micro television networks” that combine traditional TV programming with community-based Web interactivity. Still another is Eqal, the Los Angeles studio behind the cult Web video series Lonelygirl15. While Veoh is a distribution platform, both of the last two companies are content creators that use the Web to get around the traditional media dominance of distribution channels. As Dagres puts it, “You don’t need a studio or network to be involved, or give up economics to them.”The second big trend is what Dagres calls “life streaming.” Here, there are few better examples than Twitter, the text messaging/social networking/microblogging service in which people convey to their friends and followers what they’re doing at the moment.
“Twitter has taught me something that I didn’t know,” he says. “There’s a growing community of people out there that basically want to stream their lives, and they want to consume—the streams of other people’s lives.” This might sound strange to many, he says. But he notes that there are hundreds of millions of people, most of them under 30, who don’t find it strange at all. “These people, they connect with their friends and they connect over the Web in a way that we only used to do in physical venues,” he says.
Besides Twitter, another Spark investment that seeks to capitalize on this trend is called i’minlikewithyou, or IILWY. Dagres describes it as a cool little New York startup that produces multi-player, social games that attract communities of like-minded players. He calls it half game playing and half life streaming. “I think you are going to see more examples of live content flying around the Web where people are almost creating a kind of virtual proximity,” he says. “I think that’s a very powerful trend that we’re going to see.”
The third trend, an “infrastructure backlash,” stems from the disruptive power of the other two. The upheaval in media and entertainment is not all about applications and content, Dagres says. At some point, the information infrastructure will have to go through what he calls a generational shift in order to handle all the new forms of interaction and consumption. “We’re going to run out of—what I call quality of service,” he says. So to counter that, and provide the connections needed to do what people want to do, he predicts, there will be a wave of investments to add capacity and features to network systems.
One investment Spark has in this space is Intune Networks, an Irish firm that is developing optical switching technology for next-generation metropolitan area networks that will be better able to deliver high-bandwidth content such as streaming HDTV. Another Spark company, Westford, MA-based Verivue, is developing advanced networking solutions for enabling next-generation IPTV (Internet Protocol TV), in which digital television content is transmitted in the form of Internet data packets.
We spoke about one last aspect of Spark’s investment strategy that relates to the current turmoil in financial markets, including the poor market for public offerings – and investor concerns about whether portfolio companies will need lots of additional financing before an exit is possible. “Right now, everybody’s worried about what’s going on with the markets, and when is there going to be an IPO,” Dagres says.
Spark’s approach is to continue being aggressive in its investments, but not to pour huge amounts of money into firms that will need lots of additional capital any time soon – allowing the firm to be patient with its investments. “We pay attention to that, but we don’t let that paralyze us,” he says of the financial climate. “And our early stage focus allows us to let companies pursue big ideas rather than try to get to cash flow break even.”
Especially in these times, that would be welcome news to any entrepreneur.
[By: Robert Buderi]
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Press Release, September 16, 2008
NEW YORK, New York – September 16, 2008 – Next New Networks, the new media company creating micro-television networks on the Internet, including Barely Political, Fast Lane Daily, ThreadBanger and Indy Mogul, announced today the appointment of Lance Podell as Chief Executive Officer overseeing day to day management of the growing company.
Podell brings over 20 years of executive experience as well as marketing and advertising expertise to Next New Networks. Most recently, Podell spent five years as Chief Executive Officer of Seevast Corporation, an operator of marketing services companies offering search engine marketing, content-targeted “sponsored links” for the Web’s top properties and Vertical Ad Networks for CBS and MSNBC. While at Seevast, Podell built the company into a $100M+ business across its lines of operations. He is responsible for multiple innovations including the first sponsored links ad network to run on content pages, and in email, RSS, and video. Prior to Seevast, Lance headed the Sprinks unit of About.com, which he launched and built it into a prosperous unit of the company that was sold to Google under his leadership. Additionally, he has held numerous marketing positions including the Chief Marketing Officer role at DealTime (Shopping.com). Podell began his career in advertising and publishing at such esteemed places as Chiat Day, Time Inc and Ogilvy and Mather
“Lance Podell is a seasoned executive with web business expertise and leadership skills that will be integral to the future of Next New Networks’ corporate strategy,” said Herb Scannell, Chairman, Next New Networks. “He’s built businesses from the ground up and been in the web business since its most formative years. He’s seen and participated in the growth of emerging markets and will be an asset as we continue to establish ourselves as leaders in online television super-distribution and related advertising. We are excited to have Lance on board to lead the next phase of Next New Networks’ growth.”
“Next New Networks is the innovator and trailblazer in online television programming. As an entrepreneur I couldn’t resist the next big frontier on the internet and the opportunity to work with the talented team they’ve put together,” said Lance Podell, CEO, Next New Networks. “I’ve been fortunate to lead companies that pioneered online city guides, comparison shopping, and search and content-targeted advertising. The opportunity to marry the quality and creativity of the Next New Networks product with my content and advertising background positions us well for the future. Plus, this one’s going to be a lot of fun as television is being reinvented by companies like ours on the internet.”
Next New Networks received $23M in funding from leading investors including, Velocity Interactive Group, Spark Capital, Goldman Sachs and the Saban Media Group
“We are pleased to announce the appointment of Lance Podell as CEO of Next New Networks,” said Jonathan Miller, Partner, Velocity Interactive Group. “He’s got a great skill set and experience in taking companies to the next level on the internet. With Herb staying on as Chairman, this will be a very media-savvy company that taps traditional and new media expertise as it builds a robust business in an emerging and dynamic marketplace.”
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Press Release, September 15, 2008
BOSTON AND NEW YORK (September 15, 2008) – Today, Spark Capital announced the addition of media and technology executive Moshe “Mo” Koyfman as principal. Koyfman comes to Spark with a broad range of transactional and operational experience across the consumer Internet and digital media sectors. Based in Boston, Koyfman will split time between Boston and New York and work to deepen the firm’s ties with the New York entrepreneurial community and support Spark’s further expansion into the New York market, which already includes ten emerging companies backed by Spark.
“Technology and the Internet are fundamentally altering and improving the ways in which we all interact with media and services. And New York is continuing to churn out innovative entrepreneurs and businesses capitalizing on this evolution,” said Mo Koyfman. “Having spent the bulk of my career engaged with companies that operate in this sphere, I am thrilled to be joining a fast-growing and pioneering firm with an investment focus so uniquely suited to my interests and experience.”
Before joining Spark, Koyfman spent six years at IAC (NASDAQ: IACID) in a variety of strategic, transactional and operational roles. He most recently served as chief operating officer of Connected Ventures, parent of CollegeHumor.com, BustedTees.com and Vimeo.com. Prior to that, Koyfman helped establish IAC Programming, a new unit of the company focused on opportunities in the digital media space. In his role as vice president, Koyfman spearheaded the acquisition and integration of Connected Ventures and helped conceptualize and incubate a number of new businesses. He previously served as vice president, mergers & acquisitions
“Mo has a keen strategic understanding of the media, entertainment and technology ecosystem and a uniquely diverse background that spans buying, building and operating businesses in the space,” said Todd Dagres, founder and general partner of Spark Capital. “With Mo’s addition, we are expanding Spark’s expertise in our targeted areas of focus and adding someone who can help us mine opportunities in the emerging New York marketplace and beyond. We are thrilled to have him on the Spark team.”
Koyfman graduated from the University of Pennsylvania where he received a B.S. in Economics from The Wharton School with a concentration in Finance and a B.A. in English from The College of Arts & Sciences. Koyfman also serves on the board of directors of ArtWorks, an organization that brings performing arts programming to children suffering from chronic and life-threatening illnesses
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Press Release, August 20, 2008
Clear®, the fast pass for airport security, has secured $44.4 million in venture funding. Led by new investor Spark Capital, this round also includes a second investor Syncom Venture Partners, and existing investors Lockheed Martin, GE Security, Baker Capital, Lehman Brothers, and Clear founder and CEO Steven Brill. Clear will use the financing to further its membership growth in its existing markets and will also expand its signature fast lanes this fall and beyond with airport installations expected in new major markets across the country
Clear members are pre-screened and, after application completion which involves providing iris and fingerprint images, receive a card that allows access to fast security lanes nationwide. Clear members’ identities are assured through biometric verification every time they go through airport security
Clear lanes feature concierges whose assistance speeds throughput while making passage through airport security more hassle-free. Clear’s annual membership fee is $128. The Clear concierge service alone has made Clear lanes 30 percent faster than regular security lanes and Clear plans to improve that even more through enhanced technology which, once approved by the US Government, could allow cardholders not to have to remove shoes, outer garments or laptops as they pass through the security checkpoint
Clear was recently featured in a Condé Nast Traveler story which reported that there are an estimated 8 million fliers who take at least two trips per month and who are Clear’s target market
“Spark’s and Syncom’s new support, along with this renewed support from our existing partners, assures that Clear will now be able to proceed to complete the Clear national network, and then expand to other non-Airport venues,” said Clear founder and CEO Steven Brill. “This marks an exciting new phase in Clear’s growth and in the development of the voluntary credentialing industry.”
“With Clear now accepted in 18 airports, the company has already built the largest airport security fast pass business, and it is well on its way to providing the nation’s travelers the best, most effective way to get easy access to their flights,” said Dennis Miller, general partner, Spark Capital. “Clear’s fast growth with their security verification system will continue to change the way people think about identity credentialing and fast access to venues with security bottlenecks – ranging from airports to sports and concert arenas and beyond. We are excited to work with Steven Brill and his team as they continue to build on their market momentum.”
“Syncom is delighted to partner with Clear, a business that is at the forefront of an exploding market opportunity in voluntary credentialing,” said Terry Jones, Managing Partner, Syncom Venture Partners
Applicants start the membership enrollment process at www.flyclear.com and complete it in person at a Clear enrollment center, where they have their fingerprints and iris images captured. Clear enrollment centers are located in airports with Clear programs and also at convenient city locations, including New York’s Grand Central Terminal
About Clear
Clear, operated by Verified Identity Pass, Inc., has signed up more than 200,000 travelers nationwide. Clear cards are accepted at 18 U.S. airports: Albany, Cincinnati, Denver, Indianapolis, Jacksonville, LaGuardia (Central Terminal B and Terminal D), Little Rock, New York JFK (Terminals 1, 2, 4 and 7), Newark (Terminal B1 and B2), Oakland, Orlando, Reno, Salt Lake City, San Francisco, San José, Washington, DC’s Reagan and Dulles, and Westchester. And, soon, Clear lanes will open at Atlanta’s Hartsfield-Jackson International Airport. Clear members are provided with a high-tech card which allows them to access designated security lanes nationwide for an annual fee of $128. Clear members pass through the security checkpoint faster, with more predictability and less hassle. Applicants start their enrollment at flyclear.com and complete the process at an enrollment location where their fingerprints and iris images are captured and their identification is validated.
Clear’s registered traveler program has been operational since July 19, 2005. For more information, please visit: http://www.flyclear.com
bout Spark Capital
With a deep network that spans technology and media, investing and operations, Spark Capital provides world-class entrepreneurs and revolutionary companies with the resources to succeed in today’s marketplace. Spark Capital has $622 million under management, and is based in Boston, Mass. To learn more, please visit www.sparkcapital.com
About Syncom
Founded in 1977 and headquartered in Silver Spring, Maryland, Syncom Venture Partners manages approximately $400 million of private equity capital on behalf of some of the nation’s largest corporations and public pension funds. For more information, please visit www.syncom.com
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Mashable, August 19, 2008
KickApps, the leading on-demand social media, video player and widget platform, today announced an offering that makes advanced online video publishing available to every web publisher. By combining the KickApps Platform with Akamai’s enterprise class rich media management platform, Stream OS®, web publishers now have access to powerful tools for turnkey creation and management of players for video publishing. Through the integration between Akamai’s Stream OS media management system and the KickApps Platform, the offering provides web publishers drag-and-drop video player customization, a comprehensive media management system, social media enhancements, High Definition (HD) video players, and new video revenue opportunities. Using the KickApps Widget & Video Player Studio, web publishers can easily create, manage and program an unlimited number of custom online video players. Together with the automated digital distribution workflow of Akamai’s Stream OS business rules, web publishers now have on-demand access to a robust online video publishing solution. In addition, KickApps’ video players can be deployed with a range of social media features (e.g. rating, tagging and one-click viral syndication) to drive deeper levels of audience engagement with video content.
“Web publishers have few viable options when it comes to affordable, enterprise-level video publishing solutions that include deep, out-of-the-box social media functionality,” said Alex Blum, CEO of KickApps. “By integrating the two solutions - social & media applications and an enterprise scale video management and distribution solution - web publishers have the means to handle even the most advanced media requirements. With on-demand deployment, we are enabling web publishers to dramatically reduce costs and time-to-market.”
Together, KickApps and Akamai offer web publishers many options for creating unique and differentiated video experiences. In addition to industry-leading video player customization, the offering also provides publishers with a solution for on-demand deployment of HD video. As consumer expectations and demand for HD quality video increase, the challenge for media companies and web publishers will be to easily access these technologies at an affordable price.
To further facilitate growth in the online video market, the companies have developed a standard approach to video player development for web publishers, large and small. As part of this, KickApps has integrated the Akamai Media Player Framework into its video players. The Akamai Media Player Framework provides best practices for creating and deploying video players that support streaming and progressive download of content created in Adobe Flash®, Flex® and AIRâ„¢. The Akamai Media Player Framework enables standards-based integration with many of the major video advertising networks, inviting web publishers to more effectively monetize editorial and user-generated video. Additionally, when coupled with Akamai Stream OS, KickApps’ video players will support automated workflows for publishing and syndication, allowing web publishers full control of their media assets.
“This is a huge step for KickApps’ customers, web publishers and the industry as a whole,” said Tim Napoleon, chief strategist for digital media at Akamai. “This solution offers a simplified way to build players and monetize content with an efficient workflow that is made available through Akamai’s Stream OS. Together, we’re hopeful to remove the final barriers to adoption by making available a highly sophisticated video publishing platform to web publishers of all sizes.”
About KickApps
KickApps provides on-demand social media, video and widget applications that enable web publishers and marketers to grow, engage and monetize online audiences. Its SaaS platform includes social networking, user-generated content, programmable video players, drag-and-drop widget building, WidgeADsâ„¢ and other applications that are tightly integrated with robust media moderation, member management and reporting. The KickApps Platform seamlessly integrates with any website using HTML, CSS, JavaScript, feeds, Widgets and APIs (REST and SOAP). Customers include: ABC Family, CW Television, Guinness World Records, Scripps Network Interactive, VIBE Magazine, HBO, Cinemax, Cox Television, the Phoenix Suns, the New York Knicks, the New York Rangers and thousands of other sites. For more information, visit www.kickapps.com and www.kickdeveloper.com.
The Akamai Difference
Akamai® provides market-leading managed services for powering rich media, dynamic transactions, and enterprise applications online. Having pioneered the content delivery market one decade ago, Akamai’s services have been adopted by the world’s most recognized brands across diverse industries. The alternative to centralized Web infrastructure, Akamai’s global network of tens of thousands of distributed servers provides the scale, reliability, insight and performance for businesses to succeed online. An S&P 500 and NASDAQ 100 company, Akamai has transformed the Internet into a more viable place to inform, entertain, interact, and collaborate. To experience The Akamai Difference, visit www.akamai.com.
StreamOS is a registered trademark of Akamai Technologies, Inc. All other trade or service marks belong to their respective owners and are used without implication of endorsement.
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