Archive for the ‘Investment’ Category

Whether they’re being groomed for acquisition or poised for long-term profit as standalone entities, Web 2.0 startups continue gorging on investors’ millions, according to a new report today from Internet Evolution. Despite the confusion of the current economic climate, “Web 2.0’s Biggest $inkholes” highlights key areas where VCs and angel investors think big Web 2.0 payoffs await:

  • Targeted advertising: JellyCloud couldn’t hack it and $11.5 million later went belly up; Lotame is staying afloat with its $28 million purse.
  • Social networking: All-purpose inbox company Xoopit is working on a $6 million round, while Orgoo is on indefinite hiatus; AOL’s $850 million for Bebo ended up being largely a write-off for the company.
  • Video: Lots of money’s chasing the desire to be the next YouTube – too bad most of the hosted content is porn; Trooker and others are betting there’s a market for video search.
  • Search: Cuil ($33 million) and SearchMe ($43.6 million) might imagine themselves Google killers, or at least viable alternatives. For investors, imagination makes for a crummy investment strategy.
  • Self-publishing/social-publishing: Uber.com and Bricabox litter this landscape, having shuttered themselves as things got rocky. It’s unclear whether ShareNow.com can thrive here.

“These startups are gambling that they’ll be acquired by the dominant players in each of these Web 2.0 sectors – Google, Facebook, YouTube, MSN, and Yahoo,” says Terry Sweeney, Editor in Chief of Internet Evolution. “As if today’s market wasn’t enough of a hindrance, many of these startups also suffer from fuzzy business plans, poor execution, and even crummy company names. Incredibly, that’s not stopping the flow of investment in some below-average companies.”

About Internet Evolution: Internet Evolution hosts more than 100 world-famous Internet experts – such as Kevin Mitnick, once the most-wanted computer hacker in the world; Dr. Lawrence Roberts, inventor of packet switching, and one of the world’s foremost authorities on telecom network architectures; Vint Cerf, Vice President and Chief Internet Evangelist for Google; Craig Newmark, the founder of Craigslist.com; Paul Mockapetris, inventor of the Domain Name System (DNS); Howard Schmidt, former White House cybersecurity adviser; and Andrew Keen, author of Cult of the Amateur: How the Internet is killing our culture — all of whom are addressing today’s critical socio-economic issues within its ThinkerNet blogosphere. Internet Evolution also offers broadcast-quality broadband video documentaries and interviews; investigative reports; and user-generated content facilitated via the latest Web 2.0 technology.

About TechWeb: TechWeb, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

About United Business Media Limited: United Business Media Limited (UBM) is a global media and marketing services company that informs markets and brings the world’s buyers and sellers together at events, online, in print, and with the information they need to do business successfully. UBM serves professional and commercial communities, from IT professionals to doctors, from journalists to jewelry dealers, from farmers to pharmacists around the world. UBM employs more than 6,500 people in more than 30 countries. UBM’s businesses operating in the US include CMPMedica, Commonwealth Business Media, Everything Channel, PR Newswire, RISI, TechInsights, TechWeb and Think Services. UBM is listed on the London Stock Exchange (UBM.L) and has a market capitalization of $2.5 billion.


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Brightcove Inc., the leading global Internet TV platform, announced the formation of a majority-owned Japanese subsidiary, Brightcove KK. The new subsidiary is backed by $4.9 million in new investment from Brightcove Inc. and four market-leading Japanese strategic partners: Dentsu, Inc., J-Stream, Inc., transcosmos, Inc. (transcosmos), and Cyber Communications, Inc. (CCI). Three of the investment partners, Dentsu, J-Stream, and CCI, along with Brightcove Inc., will be sales agents for Brightcove KK in Japan, giving Brightcove KK immediate and powerful access to the Japanese market.

Headquartered in Tokyo, Japan, Brightcove KK will operate a localized version of Brightcove’s award-winning, on-demand Internet TV platform, which is currently used by media companies and marketers across North America and Europe. With Brightcove KK, Japanese media companies and marketers will gain access to the most powerful and scalable software as a service (SaaS) solution available for online video players, distribution, and advertising.

“Brightcove enters the Japanese market at a time when household broadband penetration has surpassed 50 percent, presenting enormous opportunities for media companies and advertisers to build online businesses and engage audiences,” said Jeremy Allaire, chairman and chief executive officer, Brightcove. “It is a great privilege to be partnering with the market leaders in Japan for digital media and advertising. By combining the proven Brightcove technology with the capabilities of our partners, Brightcove KK will give media companies and marketers in Japan a unique solution for implementing their online video strategies and unlocking the potential in the market.”

The Brightcove KK partners represent the market leaders in Japan in digital media, advertising, and content delivery.

  • Dentsu, Inc. is the largest advertising company in Japan with a market share of approximately 30 percent and has over 6,000 clients Groupwide.
  • J-Stream, Inc. is Japan’s largest content delivery network specializing in streaming media for content providers and business corporations.
  • transcosmos is Japan’s leading information processing outsourcing company adopting the latest Internet technology through the strategic investment and business development.
  • CCI is Japan’s largest interactive adverting company that currently has more than 30 percent of the country’s digital brand marketing, a popular advertising serving technology, and online advertising network.

These companies bring tremendous reach into the media and marketing sectors in Japan, and will help ensure the success of Brightcove KK in the Japanese market.

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Accel Partners, a leading Silicon Valley venture capital firm, today announced the addition of Sameer Gandhi as a partner in their Palo Alto office. Sameer, who was formerly a partner at Sequoia Capital, brings ten years of venture capital investment experience across a range of stages. In his new role with the Accel team, Sameer will help develop leading companies in the consumer Internet and the software sectors.

“Sameer’s investment experience will complement our partnership and extend our capabilities in both software and the consumer internet,” said Theresia Gouw Ranzetta, Partner of Accel. “We are excited to have Sameer as part of the Accel team.”

“The Accel team has built a very strong position,” said Sameer Gandhi. “I am looking forward to working with everyone in the group and being part of the Accel team that helps to build the firm over the coming decades.”

Prior to Accel, Sameer joined Sequoia in 1998 and has been a partner leading several of their investments including Barracuda Networks, eHarmony, Gracenote (acquired by Sony), Marketlive and Sourcefire (FIRE) among others over his decade at the firm. Prior to Sequoia, Sameer was a technology banker at Broadview and a sales engineer at Oracle. Sameer has an MBA from Stanford University and a BSEE and MSEE from the Massachusetts Institute of Technology.

About Accel Partners

Accel was established in 1983 and is a global investment firm with offices in Palo Alto, London and China via the IDG-Accel partnership. Accel also co-manages the Accel-KKR funds focused on technology buyouts. With over $5 billion under management, Accel has helped world-class internet and technology entrepreneurs build over 300 successful companies, many of which have become category-defining enterprises. http://www.accel.com

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The world’s populous nations are also among the fastest growing mobile markets, producing some 320 million new mobile phone subscribers in 2007 alone, an increase of more than 25 percent, according to a new report from TechWeb’s Light Reading called “Top 10 Emerging Mobile Markets 2007.”

China’s mobile operators added about 2 million more new subscribers than India’s wireless carriers, making China the fastest growing mobile market in 2007 by subscriber volume, and helping the country maintain its position as the world’s largest mobile market.

This new report, available free of charge, can be viewed by visiting: http://www.lightreading.com/document.asp?doc_id=151913

“So-called emerging markets have become the drivers of mobile growth, and the top 10 countries in our list alone account for about a third of the 3 billion subscribers worldwide,” says Light Reading reporter Nicole Willing, who compiled the report. “These are the hottest markets to watch in the mobile world, and they have plenty more room to grow.”

The major service providers mentioned in this report include: Etisalat, MTN Irancell, HT Mobile, Vimpel-Communications, China Mobile, and China Unicom.

About Light Reading

Founded in 2000, Light Reading is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. It reaches an extensive audience of executives and technologists within the telecom and enterprise networking communities, as well as the financial/industry analysts and investors who track these sectors. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next- generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

*13.3 million business decision-makers: based on # of monthly connections.

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Bocada, Inc., a leader in data protection management software, announced that Microsoft has implemented the Bocada Centralized Manager for DPM 2007 and Bocada Enterprise for DPM 2007 solutions to manage mission-critical data protection operations and achieve policy mandates for compliance.

Microsoft offers its System Center Data Protection Manager 2007 to continuously protect and reliably recover data on Microsoft applications and file servers. DPM 2007 was built to protect and recover Microsoft workloads including SQL Server, Exchange Server, SharePoint Server and Windows file servers. As one of the biggest users of Microsoft applications, Microsoft IT began migration to DPM 2007 for its entire data protection environment in 2007.

To assist in the migration from the existing data protection implementation to the large scale Data Protection Manager 2007 deployment, Microsoft IT deployed Bocada Enterprise for Data Protection Manager, a reporting and analysis solution to provide visibility into the status of all activity and data protection trends. Bocada Enterprise reports including success and failure, troubleshooting, server throughput and SLA summaries helped the IT team bring the new application up and fine tune their environment.

“As we implemented Data Protection Manager 2007, Bocada’s solutions provided valuable reporting and analysis on the activity across hundreds of servers and clients,” said Ajay Malhotra, Group Program Manager, Microsoft IT. “Now that the implementation is complete, we are delighted to use Bocada’s Centralized Manager to improve our view of operational data and response times.”

Once the Data Protection Manager servers were up and running, Microsoft then worked with Bocada to implement the Bocada Centralized Manager for Data Protection Manager, a central monitoring and control console which provides the ability to monitor all job activity, centrally manage data protection groups and track storage pool use in real time across multiple data protection servers. Administrators are able to restart failed jobs, automatically track media targets and be alerted if storage pool thresholds are exceeded anywhere in the environment.

“Microsoft has been a long time customer of Bocada. It is through close collaboration with customers like Microsoft that Bocada ensures a great return on investment for our products,” said Dorothy Pults, vice president of development. “By immediately implementing in such a large scale environment, we are confident our solutions can enhance the experience of customers utilizing Data Protection Manager 2007.”

About Bocada Centralized Manager and Bocada Enterprise

Today, customers are required to manage multiple heterogeneous data protection applications from disparate consoles, adding to operational and administrative complexity. Bocada is addressing this issue by providing a centralized management console to application servers, centrally viewing data protection schedules, and monitoring for policy adherence. Combining this functionality with the industry leading Bocada Enterprise reporting functionality provides users with full end to end management of the data protection environment.

As with the flagship Bocada Enterprise solution, the Bocada Centralized Manager is an agentless technology which allows for fast, simple deployment and updates.

About Bocada

Bocada provides automated insight and visibility into data protection processes, enabling IT organizations to confidently analyze data recoverability, predict risk vulnerability and identify opportunities for cost reduction. Based on patented, agent-less technology, Bocada solutions deploy rapidly and scale to meet the demands of the largest multi-vendor data protection environments. More than 400 brand-name customers and partners worldwide trust Bocada for their data protection operations, including Microsoft, Sprint, Unilever and Valero Energy. Headquartered in Bellevue, Washington, Bocada is privately held, funded by leading venture investors. For more information visit: http://www.bocada.com

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Kaazing Corporation, a leader in enterprise real-time Web solutions, raised $1 million in an initial round of financing. Investors include a number of high-profile Silicon Valley private investors. Kaazing will use the funds to expand its development team for its real-time Web platform – Enterprise Comet(TM) – and to increase marketing efforts.

“We are all very excited to be working with such a diverse group of investors,” said Jacobi, chief executive officer of Kaazing. “As Web technologies push the boundaries of the Internet to deliver more dynamic and interactive applications, there are increasingly more pain-points in existing methods of Web application delivery. It is time we alter the fabric of the Web, creating a new Web that allows the development of real-time, multi-user applications based on the simple and democratizing standard technologies like HTML and JavaScript.”

With Kaazing’s patent-pending Enterprise Comet(TM) technology, companies can build mission-critical solutions, such as online trading systems, online betting and games, RFID/GPS tracking systems, and sports and news broadcasting applications using standard Web technologies, without sacrificing reliability or scalability.

As Gigaom contributor Alistar Croll so succinctly stated, “Think Tibco over Firefox. And while it sounds like enterprise-grade software, it can in fact drive a new generation of real-time Rich Internet Applications.”

For more information about Kaazing and Kaazing’s Enterprise Edition please visit http://www.kaazing.com

About Kaazing Corporation

Kaazing Corporation’s Enterprise Comet solution is the industry’s most advanced real-time solution for Java EE. It provides IT organizations with the infrastructure to rapidly and reliably create and deploy mission critical real-time Web applications with no browser plug-ins or usage of traditional client-side polling. For more information visit Kaazing Corporation’s web site at http://www.kaazing.com.

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SocialMedia Advertising Network announced today that CEO Seth Goldstein will speak on the panel “What’s the Future of Social Media Startups?” on Wednesday April 30, 2008, at The Dealmaker Forum – Social Media.

As the numbers of social media companies continue to increase and fight to maintain the top spot as the leader of all things web 2.0, Goldstein and other expert speakers will provide insight into navigating this ever changing landscape.

While the opportunities are endless for social media, there are still many unanswered questions for the future of advertisers, brands and consumers using social networking sites. Social media companies must learn to leverage the space more effectively in order to rise above these obstacles while others simply tread water.

In this session, attendees will learn the struggles, challenges and successes of the leaders in social media startups. They will learn best practices for today that can impact exit options and the future of a company. While IPOs are not yet a viable option, CEOs must learn how to decide whether to flip or grow their companies. Deals such as the potential Microsoft/Yahoo merger will affect the acquisitions landscape, and company leaders must know how to protect their investments. Moderated by Sam Angus, partner of Fenwick & West, Mr. Goldstein is joined by a panel of experts who aim to shed insight into how to build and maintain a successful startup. Attendees will hear from Jeff Clavier, managing partner of Softech VC, Storm Duncan, managing director and co-head technology M&A of Credit Suisse, and Jason Shellen, founder of The Secret Agency. The panel will be held at 3:50 p.m. Pacific Daylight Time.

For more information about this event, please visit: http://www.dealmakermedia.com/dealmaker_forum.html

About the Speaker

Seth is the cofounder and CEO of SocialMedia.com. He is also an angel advisor to a number of Web services companies such as Aggregate Knowledge, Lijit and Downfly. He was the first investor in Web 2.0 pioneer del.icio.us (now part of Yahoo!). In 1995, he created SiteSpecific, one of the first Internet advertising companies. He was Entrepreneur-in-Residence at Flatiron Partners from 1998-2000.

In 2002 Seth co-founded Majestic Research, a next generation Wall Street Research firm that provides leading hedge funds with proprietary data insights. In 2005 he created Root Markets, the first financial exchange for Internet mortgage leads.

In addition to Seth’s entrepreneurial efforts, he is also an active member on the speaking circuit, considered the de facto expert on social media. Providing insight for both advertisers and developers, Seth is often asked for his thoughts on best practices, emerging trends and the future of the social media landscape.

About SocialMedia Advertising Network

SocialMedia Networks enables developers of social media applications to monetize their traffic by providing marketers with the ability to advertise within applications. The company had created the SocialMedia Advertising Platform, which currently delivers over 3B ads per month on applications running within Facebook, bebo and Myspace. SocialMedia Networks has learned what developers and advertisers need first-hand, having internally produced hit Facebook applications such as FoodFight (throw virtual food at your online friends) and Happy Hour (send that friend a virtual cocktail), which have been installed by over 10 million consumers. SocialMedia Networks is based in Palo Alto and San Francisco, CA, with a seasoned leadership team that has been building businesses in the online advertising space for the past 10 years. Interested in joining the conversation? Please visit: http://www.socialmedia.com/

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