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BA.net feedsburner VentureCapital News 17/07/2008
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Venture Capitalread moreVenture Capital bloggers have a uniquely targeted audience of entrepreneurs interested in what they have to say. These Venture Capitalists write about technology, entrepreneurship, investing, the computer industry, and their random exploits. en-usFeedBurner Networks http://www.feedburner.comThu, 17 Jul 2008 04:59:59 -0500442092http://www.feedburner.comThis is the spliced feed for "Venture Capital". Add this to your news reader to receive updates about the network.Say it ain't so [bijan sabet]read moreThu, 17 Jul 2008 04:59:59 -0500Readers of this tumblelog know that I’m a big fan of Apple products But I’ve also been a critic at times. Mostly when it comes to their willingness to support developers of not. The App store is the coolest thing going with the iPhone. No don’t about it. Now we don’t have to wait for all the iphone app innovation to come from Cupertino. It can come from anywhere. And yet… I’ve been hearing more and more about apps that are still waiting for approval mode from apple. Some of those developers are friends of mine. These apps are somewhat competitive with iTunes I guess. Maybe that is the reason for the hold up. Or maybe it’s because apple is simply swamped. I really hope it’s the latter. Blocking apps is a bad idea for everyone. Including apple.
  Warranty Repair and Online Retail Don't Mix [Feld Thoughts]read moreGreat Stuffbrad@feld.comThu, 17 Jul 2008 03:54:46 -0500My partner Ryan McIntyre has an excruciating story up titled Sharp's Dull Service / My eCommerce Nightmare about his experience buying a snazzy new 52" Sharp Aquos LC-52D92U via Amazon only to have to go through over four months of warranty repair hell before his (now old) new TV worked. He's being politically correct with his title - I would have titled the post "How To Get Rat Fucked When Buying A High Ticket Consumer Electronics Item From An Amazon Affiliate." But then again, Ryan is nicer than me. And he's apparently more patient than me - I simply give my broken things to Ross and order a new improved thing.
  News Flash - I'm Stupid Adjust Accordingly [The Post Money Value]read moreRick SegalThu, 17 Jul 2008 03:20:57 -0500
Live from an Air Canada middle seat. I like to think of myself as a very accessible person. I've been saying for 7+ years, that I'll take meetings, listen, answer emails, etc. I do it to go against the grain of "You have to know somebody that knows me" or other nonsense. I process, on average, 450 or so emails a day, thankfully 2 voice mails a day (hint), and I'm hanging in. So, with that, I'd like to believe given the open nature of this offer, people would use it judiciously. Given the latest rash of stuff flowing in, most with the 'saw your blog' openings, I thought it would be helpful to point out a few things. - Assume I'm busy and I'm blowing through your stuff at lightening speed. I speed read, try to find the nugget, the question, pound an answer and I'm off to the next one.
- Assume I'm a stupid, attention deficit, english is my third language, Luddite, goofball with a checkbook. This outlandish commentary is my admittedly over the top, melodramatic, not so polite way of saying you have to get to the point in a reasonably targeted way given your audience, me. I am a VC trying to turn one dollar into ten. Or more. You have to focus your email/note to the point. To what I'm doing. I'm not Dragon's Den, not recruiting for America's Next Top Model or American Idol.
Problem/Solution/How we can all make money is my simple three part mantra. Unfortunately, the process can just grind down. Here are three email exchanges which I've changed slightly to protect the people/product, etc. First up: I'm the only one who can do this. Them: "Rick, your blog is amazing, you are the only one who does it right. As it happens, I too am the only guy who can solve a serious data integrity transfer integration problem between mobile devices, cloud computing services, and peer to peer interactions. How can I get you to come by my lab and see this" Me: It's difficult for me to justify a flight to AUSTRALIA from Canada without some additional information, like perhaps , an executive summary, PowerPoint, or web site where I can play with this cool stuff. Next up: I'm too busy Them: Mr. Segal. Love the newsletter. We're three people with extensive video compression experience and want to get money to start selling our product. Our compression engine allows HD movies to be streamed over a dial-up Internet and CDMA mobile phones. What's the process to get money or sell this to Mark Cuban? It's worth 100 million but we'll take $16.5 million. Me: Sounds interesting. I need a plan of some type, demo, summary, slide deck, etc, to better evaluate what you have. Them: We're way to busy to do any of that. If we can get some money, we'll hire somebody. Last Up: VCs suck, do you? Them: I've read your blog and you appear to suck less than other VCs. I have an idea to crush Microsoft and Facebook all at the same time. If you do suck less than the rest of your ilk, I'll share my plan. Me: Actually, I suck more. On the last one I almost lied just so I could see what a Microsoft/Facebook crush em combo sandwich would be.

Live from an Air Canada middle seat. I like to think of myself as a very accessible person. I've been saying for 7+ years, that I'll take meetings, listen, answer emails, etc. I do it to go against the grain of "You have to know... A Kindred Spirit In London [A VC]read moreVenture Capital and TechnologyFredThu, 17 Jul 2008 02:15:59 -0500
One of the things I love about the web/tech/venture business is the energy and spirit of people who work in it.
And there are certain people who take that energy and spirit to a new level, like Lucasz in Berlin last week. I spent a good part of yesterday with Saul Klein in London. I did a bunch of meetings at his office and then he hosted a dinner last night with a dozen (maybe more) entrepreneurs.
I love what Saul has done with Open Coffee and Seedcamp.
My month in europe is coming to a close soon but I can tell you that there is a great entrepreneurial scene over here. It's like NYC was five years ago. It's just waiting to bust out.
And when it does, it will be because certain people understood what it takes to build the infrastructure of entrepreneurship and they went and built it. Saul is certainly one of them and I was really jazzed to see what he is up to first hand and to meet a bunch of great entrepreneurs last night.

 One of the things I love about the web/tech/venture business is the energy and spirit of people who work in it. And there are certain people who take that energy and spirit to a new level, like Lucasz in Berlin... Blogging's Dead, Long Live Blogging [A VC]read moreVenture Capital and TechnologyFredThu, 17 Jul 2008 02:02:52 -0500
Late last year I wrote a blog post suggesting that individual bloggers like me were being replaced by traditional media as the leading voices in the blog world. It caused a bit of a stir and I followed it up the next day by saying that "social media requires real people". My point in both posts is that I really like to read blogs owned by and written by a person as opposed to a team of people being paid to blog. I made my point and moved on.
Today I read a post on The Standard that suggests the same thing. Ian Lamont writes the following about the Techmeme leaderboard: the old-school A-listers aren't being displaced by the many talented B-to-Z listers out there.
Rather, the Leaderboard is increasingly populated by mainstream
publishers, tech blog networks, and corporate blogs and PR sites.
And in addition, Nick Carr is taking the summer off from blogging, Scoble's moved the hub of his energy from his blog to FriendFeed, and Calacanis has quit blogging entirely.
As Jason said in his first email (he's moved from blogging to broadcasting): In the early days of blogging Peter Rojas, who was my blog professor, told me what was required to win at blogging: "show up every day."
I agree completely. In good times and bad, I blog every day. That's how it is for me. And I don't plan to change that. I get so much value out of blogging that I can't imagine doing what I do without a little time every day writing down my thoughts.
But change is afoot. Today, we get the news that Alley Insider "raised a pot of money at a mind boggling valuation". That's a joke from Henry Blodget, founder of Alley Insider. But the fact remains that Alley Insider raised about a million dollars to build out the Alley Insider blog. I like Alley Insider and they re-run some of my posts there from time to time.
And last week Rafat Ali sold Paid Content for $30mm to The Guardian. When that was announced, a friend of mine suggested to me that I could sell AVC for $5-10mm. First, I am not sure that's true, but second I could never do that.
This blog is me and I am this blog. It's mine and will always be mine. I understand why many of the individuals who made blogging what it is are either moving on or turning their blogs into businesses. That's the way it is. But I am fortunate that this blog is totally integrated into my business and provides great value to me and my partners. So it's sustainable from an emotional and economic perspective and I plan to keep showing up every day.

 Late last year I wrote a blog post suggesting that individual bloggers like me were being replaced by traditional media as the leading voices in the blog world. It caused a bit of a stir and I followed it up... Bad Practice Alert: Backcheck.net [The Post Money Value]read moreRick SegalWed, 16 Jul 2008 23:26:08 -0500
Recently, I've gotten a couple of notices from an outfit called Backcheck.net. They are a division of something called Checkwell Decision Corporation. They have concerncheck.net and exitcheck.net. Back in an airplane so no links, sorry. Consider how this process works: First, I get this email (names, etc, redacted, this privacy thing going around): "Hello Rick Segal, BackCheck has been contracted by [] Inc. to conduct a pre-employment reference check on [], who has provided us with your name as a reference. A member of our HR Interviewing team will be calling you within the next 24 hours to request that you answer a few questions about Christopher. This step is vital to []’s potential employment with [], and we greatly appreciate your assistance. We respect that you are busy and may not be available when we call. As a result, we would like request that you contact us at your earliest convenience. Please call us at 1-866-xxx-xxxx or 604-xxx-xxxx. Thank you in advance for your assistance in completing a reference for []." I'm not going to pick on the 'we would like request' because I ain't perfect with grammar, spelling, etc, but I'm just saying.. Here's the suck part. I'm massively busy and while I love these two people, would hire these two people, recommended these two people, this is just a friction heavy way to close the loop on getting 15 minutes of my time. This is why I'm counting on Tungle to hunt down companies like this and fix this. "Dear Rick, we know you are busy, please click here to pick a time that works for you and we will call." And, lord, how hard is it to set up an IVR to do this. Please tell us why you like this person, press pound when done with this question. Press one if you'd hire this person again, etc, etc. Lesson for you? Friction free, folks, friction free. Opportunity? It seems to me that somebody could go all Guy "12,000 dollar web company" Kawasaki, Open Source, Web 2.0, Y-Combinator on these Backcheck people and kick their bureaucratically inefficient butts up into a mainframe drive pack. (I get this way when I'm in a middle seat.) Bonus observation: Here's why search isn't finished yet. The reference above to Guy will never come up in a search engine today because of the blurb in the middle of the first and last name. Solve that problem, you're the next Google. It's about analyzing the sentence, etc, blaah blaah.

Recently, I've gotten a couple of notices from an outfit called Backcheck.net. They are a division of something called Checkwell Decision Corporation. They have concerncheck.net and exitcheck.net. Back in an airplane so no links, sorry. Consider how this process works: First, I get this email... Bluefin Sells Sub to Horizon Marine, Competes with iRobot for Big Navy Contract [Xconomy Venture Capital Feed]read moreBostonBoston blog mainNational blog mainSeattle blog maindealsRoboticsoceanographymarineHorizon MarineBluefinBluefin RoboticsSeagliderSpray GliderIRobotUniversity of WashingtonJeff SmithTeledyneWebb ResearchnavyOffice of Naval Researchgeneral dynamicsSPAWARLBSF&IMITSea Grant College ProgramWade RoushWed, 16 Jul 2008 23:01:57 -0500
Wade Roush wrote:
Greg told you last month about Bedford, MA-based iRobot’s collaboration with the University of Washington to turn its Seaglider undersea robot into a commercial product. Not to be outdone, Cambridge, MA-based Bluefin Robotics announced this week that it has received its first commercial contract for a similar autonomous underwater vehicle (AUV), the Spray Glider.
And it looks like Bluefin, iRobot, and a third local company—Falmouth, MA-based Webb Research, recently bought by Teledyne—will all be going up against each other for a big Navy contract for at least 154 of the glider-class robots. The torpedo-shaped vehicles, which can be outfitted with a variety of sensors, have no external moving parts and move through the ocean simply by altering their buoyancy.
Bluefin’s contract, announced Monday, is with Horizon Marine, an oceanographic services company in Marion, MA, that helps oil and gas companies map ocean currents in the vicinities of offshore oil rigs. Bluefin will supply an unspecified number of Spray Glider submarines to Horizon, which will use them as part of its so-called “Eddy Watch” program, which detects strong currents that can damage undersea drilling equipment. “We chose Bluefin Robotics and the Spray Gliders because they offer long-term unattended deployments at a reasonable cost,” said Horizon president James Feeney in a statement.
Bluefin, a 1997 spinoff of the AUV Laboratory at MIT’s Sea Grant College Program, licenses the technology behind the Spray Glider from the Scripps Institute of Oceanography in San Diego, where it was originally developed. Like the UW/iRobot Seaglider and Webb Research’s Slocum Glider, the Spray Glider is designed for autonomous missions lasting up to six months. The winged vehicle can move up and down in the water by moving oil between internal and external bladders. When the oil is inside the robot’s pressurized hull, the vehicle has negative buoyancy, so it sinks; when the oil is moved to the external bladder, it leaves an air-filled space inside, giving the vehicle positive buoyancy and causing it to rise. As it moves up and down in the water column, its wings deflect it forward, so that the vehicle’s overall path resembles the teeth of a saw.
In the course of a single mission, the Spray Glider can dive and ascend 800 times, going as deep as 1,500 meters and covering a total distance of 4,000 kilometers. Every time the vehicle surfaces, it uses GPS to get a fix on its position, and sends the data it’s collected back to controllers via an Iridium satellite phone connection. (The Seaglider and the Slocum Glider function much the same way; all three vehicles were developed in response to an Office of Naval Research challenge to the scientific community about 10 years ago to build an “autonomous ocean sampling network.”)
Bluefin has been manufacturing the Spray Glider for oceanographic research organizations and military agencies since 2004. But the Horizon deal marks the first time that Bluefin has supplied the craft to a commercial client. “The contract is important to us in that it’s really the first time that the oil and gas industry has come to look at this platform,” says Jeff Smith, Bluefin’s director of programs. “Traditionally this has been an academic research vehicle. The Navy has recently looked at using it for data collection to give advantage to the warfighter, and now with this Horizon Marine contract we’re seeing it in real-time applications for commercial oil and gas exploration.”
Smith couldn’t divulge the size of the contract, but he says that each Spray Glider vehicle costs about $100,000 when fully equipped with conductivity, temperature, and depth sensors. (Which isn’t much when you compare it to the $30,000 per day it can cost to send out manned oceanographic survey ships.)
While the Horizon contract is important for Bluefin, however, it’s the Navy relationship that could develop into a real gold mine for the company. In partnership with General Dynamics’ Advanced Information Systems division, Bluefin just submitted a final proposal to supply 154 Spray Gliders, along with data communications gear and other mission support subsystems, to the Space and Naval Warfare Systems Command (SPAWAR). Powered and unpowered AUVs are a key part of SPAWAR’s planned Littoral Battlespace Sensing, Fusion, and Integration (LBSF&I) program, which would provide a better picture of global ocean conditions to naval mission planners.
Smith believes that iRobot and Webb Research have submitted competing proposals to supply gliders for the LBSF&I program. “It’s a very large procurement,” he says. The winning organization could be in an admirable position for the future, since the current LBSF&I contract “is just the first component of a six- or seven-tiered acquisition that the Navy is putting together to get a broader picture of the ocean,” says Smith.
The Navy is expected to announce which organization will receive the initial contract on September 15.
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