I have been spending the last few days meeting with some early-stage companies that show promise. I am not sharing all, as even I need to honour those in stealth mode - but I think the following are worthy of being watched:
I met with Mark and Simon of etribes, the company that hosts this blog for me. As a user, I have been impressed with the ease of use of the etribes tools & functionality, as well as the clean look and feel. Most blogging sites, not all are rather cluttered and I selected etribes because it is parsimonious. If you have not guessed, I quite like structure! My conversation with Simon and Mark really helped me to crystallise that this site is about a whole lot more then a blogging and I had not fully comprehended their vision.
I have a feeling that etribes and its vision of how users like myself use and store their content online has much merit. I also began to understand that although I think the etribes site is easy to use, it will get even easier. etribes is an early stage company to watch and has what I would call smart money behind them. Although, they have only raised Angel financing and intend on launching an Series A round later this year - their initial investors, people I would regard as smart money, have built and backed successful companies in the past. There is no reason that etribes cannot be a success, and their sole challenge is to dream a big enough vision that excites others! On that note, good luck to them and the team - one of whom seems to be my biggest fan. I haven't ever had a big fan before who I did not know, so I will try not to let it go to my head!!!!
In August 2006 Frengo completed a seed round of $2.3M led by Index Ventures, Khosla Ventures and angel investors like Saar Gur. Frengo has a partnership with Boost Mobile. The company is led by a group of people who all seem to have worked at Verisign. Frengo combines two venture trends: content for mobile messaging and contests.
The initial release includes familiar online contests:
+ Mobile versions of Fantasy Football.
+ Entertainment-based contests such as “Celebrity Lies” where members win points for spotting the truth among a pack of lies.
+ Posting of content comments and pictures to MySpace pages from a mobile phone.
Universal Music Group has made a strategic investment of an undisclosed amount in Trace.tv. Launched in 2003 in Paris, France, TRACE began as a print magazine and now runs urban music programming in multiple languages across Internet, cable, satellite, radio, IPTV and mobile platforms. It expects to launch in the US market in 2007/8. In 2003, Goldman Sachs Urban Investment Group made an investment. In addition to cash, Universal will provide Trace with global music and video rights, a weekly slot on Universal's International Music Feed and cross promotions, including an urban music partnership to sell mobile content in China.
I am not sure whether I really like tippit to be honest. But I think they have an interesting approach. Tippit figures out which leads pay the most, then create sites to target that audience.
Rather than licensing content, Tippit seems to have hired freelance bloggers and program managers to publish content for each of its sites. The quality of the content seems better than the average. Tippit is building a B2B content network that now includes:
+ VoipNews
+ Daily Wireless
+ It Management
+ IT Security
+ Homeland Security Weekly
Finally, Media Momentum, run by technology investment bank GP Bullhound, announced its 50 fastest growing digital media businesses in the UK. The annual league table recognises the achievements of the most innovative and fastest growing digital media companies in the UK. The initiative is supported by media partners The Independent and industry trade magazine New Media Age, and backed by sponsors Barclays, Olswang and Sky Media.
You can check out the full list here:
http://www.mediamomentum.co.uk/documents/Top50andWinnersList2007.pdf
I will upload this into my document sections, as well!
During my travels of last weekend, I picked up "Life's a Pitch" by Stephen Bayley & Roger Mavity. I bought the book because I liked their statement "How to be businesslike with your emotional life and emotional with your business life" seemed kind of intriguing and frankly, I had a long journey ahead of me - so I thought why not. The book was in fact a rather light read and left me with plenty of time to think through the concepts presented.
Part 1 was your basic guide to good business: keep the message simple, confidence is the key, the tyranny of powerpoint, the business of living - Al Capone and the Queen and how they connect, charisma, or the courage to be different and how nothing beats passion. I think that all of us, understand the above points without my having to go into them in detail.
Part 2, in short can be described as an introduction to the art of seduction, or how to get to yes. Enough said, as the chapters speak for themselves: first impressions: you are what you wear - so be forewarned the messy dresser, a history of charlatanism and camouflage, how to be er, confident, the importance of malice, and finally, visual language: or what does my tattoo say about me.
The most useful piece of advice, I found in Part 2 was that one should never, ever get a tattoo. But, you have to read the book to understand why. The book is a good laugh, and I'd advise you borrow rather then buy a copy. However, its left me doing some pondering.
First, in the world of business, the art of good timing - is it a random luck or is it a skill that can it be acquired? Have been giving this idea some thought, as some early-stage companies come to the market with rather revolutionary ideas, but seem to have the timing off. They get in too early, or occassionally too late and before you know it, your a has been. Timing - or should I say the art of timing is an important business asset. Consider the case of Apple & the iPod. Do read the article, and my conclusion - the iPod was both a leap of thinking, a bit early but solid timing: http://www.dmwmedia.com/news/2007/03/24/weekend-read-apple-the-art-of-good-timing
Second, what does it mean to be brave & novel in one's approach - but not foolhardy? Where does that fine line exist and how do you know that you might have overcrossed it? A tough question to ask and even tougher to answer. But, check out the case of Edelman films which is capitalising on the communication revolution. As they note, individuals are no longer content to be the passive recipients of content. What does this mean? Check out http://www.edelmanfilms.com/main.html to see their vision.
Third, risk as in foolhardy or calculated? How can one tell the difference? How does one decide? I usually abide by the rule, nothing ventured - nothing gained. However, have been giving considerable thought to pause and consider whether this statement is in fact correct. Many people venture, yet few gain? Thus, concrete evidence would suggest that the old saying, may in fact be incorrect. Hmmm. Now that is a thought to ponder; and
Finally, is life really just one big pitch. And, can I really get through it with an amazing wardrobe, some red lipstick and a pair of five inch high heels/leather boots? In which case, is it really more Sex & the City and less House? Hmm - now, thats up to you to the reader to decide.
Media seems to be in a particularly active phase at present with Emap considering selling its Irish assets, EMI & Bertelsmann settling the Napster suit, Thomson planning the launch of an international news service etc. etc.
However, I think today's post should be focused on the Red Herring Top 100 European companies.
I have my personal favourites in all the different categories. But will only share those in TMT - as well, those outside this area - are all gut feelings!
In the internet space, I like - Garlik, ebuddy.com. Check out the rest of the list here: http://www.redherring.com/Article.aspx?a=21767&hed=RH+100+Europe%e2%80%94Internet%2fServices
For entertainment/media companies - I like: Lastfm, Joost and Babel Gum. Again, check out the full list here: http://www.redherring.com/Article.aspx?a=21771&hed=RH+100+Europe%e2%80%94Entertainment%2fMedia
In communications - Rebtel, Truphone, OneAcess Net, Sequans Commuications and Packetfront are worthy of being watched. Check them out & the rest here: http://www.redherring.com/Article.aspx?a=21772&hed=RH+100+Europe%e2%80%94Communications
As for other areas, such as energy, check out redherring - http://www.redherring.com/
A big bravo! to all those European companies selected. One step closer to obtaining your vision!
I posted on the 14th of March about a fledgling mini-blog called Twitter and noted that I wasn't 100%, actually lets be honest, even 50% convinced that it was the next YouTube.
Well, there seems to be quite a lot of people who seem to be convinced in Silicon Valley. As, for me, I will admit that Twitter might be the next step in the instant messaging craze - but as noted by the Business Week article which I am sharing with you, I see its future - being in more realistic and considered services that have more obvious value i.e. "say among friends or colleagues, knowing that someone is sick or at lunch explains why they aren't returning your call or why they're so cranky!"
As I noted in my blog yesterday, I'd quite like to take a few more risks with this blog. In other words, lets practice a bit of fearlessness and adventure.
So, on that note - I'd like to share a success story from the world of new media. Her name is Arianna Huffington. Originally from Greece, Arianna moved to England when she was 16 and graduated from Cambridge University with an M.A. in economics. At 21, she became president of the famed debating society, the Cambridge Union.
Arianna is the co-founder and editor-in-chief of The Huffington Post, a nationally syndicated columnist, and author of eleven books. She is also co-host of "Left, Right & Center," public radio's popular political roundtable program. In May 2005, Arianna launched The Huffington Post, a news and blog site that has quickly become one of the most widely-read, linked to, and frequently-cited media brands on the Internet. In 2006, she was named to the Time 100, Time Magazine's list of the world's 100 most influential people. You can learn more about Arianna here: http://ariannaonline.huffingtonpost.com/about/index.php
But, I am most impressed with what Arianna has created online. The Huffington Post (HP), check it out here: http://www.huffingtonpost.com/ is the future of news/print media. Arianna spoke at OMMA in Hollywood this week and I was quite impressed with her comments and as I have been following her activities for sometime. Her speech, or parts of her speech were shared at: http://www.seroundtable.com/archives/012764.html and I am sharing the important bits with you below:
Arianna in her address noted that there two types of extremism in media: mainstream media tends to go light on content, while the blogging community suffers from OCD (obsessive compulsive disorder - that makes sense to me!). Why is this important - well, think of it this way. Arianne cites a small story in the Washington Post that spoke about Karl Rove. That was ten days ago, and she told her office to make that the headline. It grew into a huge story. As news aggregators, bloggers can very effectively turn little nuggets into big stories.
Arianna believes that HP is a hybrid – a news aggregator and over 800 bloggers. In other words, lots of people write for Arianna for free, just so their views can be heard. The HP offers it bloggers the most accessible system – and mentions that not all blogs have to be Movable Type – for example, the dictated post she received shortly after the Mel Gibson anti-semetic remarks was on the home page of HP within 10 minutes. With a popular blog, they can get the same type of exposure from this as any major newspaper. Further, HP is recognising young bloggers and they are receiving more opportunities thanks to it.
As for the future of print and online media. Arianna does not believe it will be either-or. In the foreseeable future, there will always be magazines, blogs, newspapers, and blogs. She says “let’s have a three-way.” As for print and new media: "The print that wants to survive in the new world has to embrace the new media. It is very important for any major news organization to have a major online presence, and these should be managed by people that know the space. Those that are navigating new media: they must find people that can “swim in the media.” Some are amphibian – she feels she [or HP] can walk on land as well as swim in the new media. Some will be specialized in one or the other." HP will be 2 years old on May 9th, if you want to send a card.
Finally, Arianna says that fearlessness is incredibly important as we approach this new world. One needs to accept a high failure rate. She spoke with Marissa Mayer from Google, who considers a 20% success ratio huge, more often a single digit success ratio is acceptable. One must acknowledge failure as a stepping stone to success. This is critical to any new adventure. Change expectations, and don’t be so easily discouraged when we don’t get something right, right away. Her second book was rejected by 36 publishers – imagine that! At about 31, she had second thoughts and was thinking about another career.
When opening up a new world, we do not know what the next invention to change the world will be. 2 things: sense of humor – nothing like humor to be able to tap into consumer loyalty; and a sense of adventure are necessary pre-requisites!
Sources for this post:
Arianna Huffington, Big Media’s Scramble to be Relevant in a World of Seismic Change, OMMA
Blog from: http://www.seroundtable.com/archives/012764.html
The Huffington Post and Arianna online.
As I noted in my post of Jan, I wasn't 100% convinced of AOL's plans to buy TradeDoubler. It's nice to see that reality does eventually sink in. On a related note Microsoft buys TellMe Networks for $800M to bolster its position in speech recognition - not sure about this one.
Finally, Google believes that it is protected under current copyright laws against its battle with other media players. See article below.
AOL withdraws $900m offer for TradeDoubler, FT, March 14 2007 23:40
Time Warner’s AOL internet division has withdrawn its $900m offer for Swedish internet advertising group TradeDoubler after a decision not to increase the value of the bid.
AOL made the recommended offer of SKr215 per share in January with the backing of about 20 per cent of TradeDoubler’s shareholders. But since then a number of Swedish institutions have demanded a higher offer.
Software giant buys Tellme Networks, a voice recognition company, for an estimated $800 million, RedHerring
Microsoft said Wednesday it would acquire voice-recognition services provider Tellme Networks for an undisclosed amount, a move that boosts the Redmond software giant’s presence in the speech-enabled customer services and mobile search markets. Tellme provides services that let callers verbally make orders or request information without having to speak with a real person. The company provides directory assistance services to carriers such as AT&T and Verizon Wireless and it provides interactive voice response systems for large customers including American Airlines, FedEx, and UPS. The acquisition was reportedly for about $800 million, but officials declined to confirm that amount. The Tellme purchase highlights Microsoft’s push into the unified communications and speech recognition market where it faces competition from companies such as Avaya, Nuance Communications, IBM and private companies like Big Sky Technologies.
Google Bets on Copyright Law: Search king is confident that digital liability law will protect it from Viacom suit, Reuters
Google is confident its popular video-sharing site YouTube and other web services Google offers have strong legal protections under current copyright law, company attorneys said on Tuesday. Media conglomerate Viacom ended six months of thinly veiled threats of legal action against YouTube earlier on Tuesday with a $1-billion lawsuit that accuses Google and YouTube of “massive intentional copyright infringement.” But Google and YouTube lawyers said their actions are squarely within the protections offered by the Digital Millennium Copyright Act (DMCA) of 1998 and they were prepared to defend the company aggressively. The DMCA has served as the legal standard defining U.S. copyright law in the digital age. It limits liability for firms that act quickly to block access to pirated materials once they are notified by copyright holders of specific infringement.
“Here there is a law which is specifically designed to give web hosts such as us, or ... bloggers or people that provide photo-album hosting online ... the ‘safe harbor’ we need in order to be able to do hosting online,” said Alexander Macgillivray, Google’s associate general counsel for products and intellectual property. “We will never launch a product or acquire a company unless we are completely satisfied with its legal basis for operating,” Mr. Macgillivray told Reuters in an interview. Series of Threats
Google’s move to acquire YouTube for $1.65 billion in early October was preceded by a series of threats and at least one federal lawsuit filed against YouTube. YouTube was sued in July 2006 by Los Angeles News Service operator Robert Tur for allowing YouTube users to upload and view his famous footage of trucker Reginald Denny being beaten during the 1992 Los Angeles riots. In September, Doug Morris, chief executive of Universal Music Group, the world’s biggest record company, accused YouTube and News Corp.’s MySpace social network site of being “copyright infringers” at a Wall Street conference. David Drummond, the executive who spearheaded Google’s $1.65-billion acquisition of YouTube last November, serves as both its head of business development and chief legal officer. Responding to Viacom’s suit, which also seeks an injunction that could lead to a possible shutdown of YouTube, Mr. Macgillivray said Google had done its homework. “This is an area of law where there are a bunch of really clear precedents, so Amazon and eBay have both been found to qualify for the safe harbor and there are a whole bunch more,” Mr. Macgillivray said. “We will continue to innovate and continue to host material for people, without being distracted by this suit.” The attorney noted Google previously won dismissal of a lawsuit involving copyright issues filed by Nevada attorney Blake Field. The judge used “safe harbor” protections, among a series of grounds, in granting summary judgment to Google.Copyright 2007 Reuters.
Life, or more specifically work is pretty hectic these days. Therefore, I am spending my leisurely time finding Islands to escape to. So, a very brief post today. Items to watch, primarily: Viacom, Clear Channel & HMV. However, I am beginning this post with a discussion of Twitter.
What's the big deal with Twitter?
Everywhere I turn, I am bombarded with details about Twitter. Twitter is for staying in touch and keeping up with friends no matter where you are or what you’re doing. For some friends you might want instant mobile updates—for others, you can just check the web. I can't see the craze or hype with this for any group other then the tweenies. However, am I wrong? If anyone can explain to me why & how Twitter is and or can become an important feature in my life...I'd be mighty impressed. As, I can be occassionally wrong about these things, I am always happy to listen to a counter-argument. You can check out Twitter here: http://twitter.com/help/aboutus
More serious news:
Viacom Files $1 Billion Copyright Suit Against Google, YouTube
Media conglomerate Viacom on Tuesday announced that it has filed a $1 billion federal copyright infringement lawsuit against video-sharing site YouTube and parent company Google. The lawsuit is a setback for the Google’s efforts to forge commercial relationships with the biggest content companies, which it launched soon after acquiring the video site. Eric Schmidt, Google’s chief executive, led many of the talks. Yet in spite of some short-term and promotional deals, the big media groups which produce the most popular programming have largely rebuffed YouTube. Some, such as NBC Universal, have joined Viacom in expressing their frustration with the site. Refer to for full details: http://www.ft.com/cms/s/5f8c409a-d167-11db-b921-000b5df10621.html
Clear Channel delays vote on $18.7bn deal
Clear Channel Communications delayed the vote on its $18.7bn purchase by two private equity groups, giving the largest US radio station chain an extra month to persuade sceptical investors to support the controversial deal. Originally scheduled for next week, the shareholder meeting to approve or reject the deal has now been shifted to April 19 by a special committee of Clear Channel directors.
Sad news about HMV - turnaround plans fail to impress
HMV markets itself as "Top Dog" for entertainment products on the high street but a fresh profit warning yesterday left it looking more like a lame duck and completely overshadowed the company's announcement of a three-year turnaround plan. Refer to here for full details: http://news.independent.co.uk/business/analysis_and_features/article2355979.ece
The Orchard Licenses Indie Tracks to Last.fm Social Music Network
The Orchard, a digital distributor of independent label music, said on Tuesday that it has signed an agreement with social music network Last.fm, that will allow the service's 15 million users to access The Orchard's catalog of over one million tracks via its customizable radio service. Last.fm offers a feature called "scrobbling," which automatically catalogs what music members are listening to on their computers' media players; the deal will allow Orchard-distributed tracks to be scrobbled by Last.fm users.
There was no unifying theme for me this morning in terms of my morning reading. There is a lot of activity in the world of venture & media, as well as media movement/migration into new channels, partnerships etc. But, nothing that made me - go thats worthy of a post. Therefore, I am sharing the three bits that seemed interesting to me.
First, Boots holds out for a higher offer price, in other words Nigel Rudd, Chairman of Alliance Boots, has rejected a £9.7bn bid approach from Kohlberg Kravis Roberts, the private equity powerhouse, and Stefano Pessina, his executive deputy chairman. Rudd believes that a £10 a share offer was too low to be considered seriously. The Boots buyout makes considerable sense for me. While at Egg, I did some work with Boots and it was pretty clear that the company was underperforming and had vast potential and opportunity to leverage not only its distribution channels, but its very trusted brand name with the consumer under the right management. Under the right controls and team - Boots can easily and quickly outperform its peers and easily return 2x money to the buyout firm. In most cases, I am all for the buyer getting the best price - but - in this instance, Nigel Rudd is spot on with his assessment and decision. My hat off and I am providing the article below.
Second up, recent statements by Finance Minister Palaniappan Chidambaram, who proposed a 35 percent tax on stock options issued by Indian companies and threatened to shut down an offshore tax haven, could stifle growing VC interest in the country is raising concerns among Silicon Valley venture capitalists. Mr. Chidambaram’s comments come just as VC investment in India is poised to ramp up. Venture capital firms pumped $508 million into Indian startups during 2006, according a new report from Venture Intelligence and the US-India Venture Capital Association. That was up 124 percent from 2005 when VCs invested $224 million. You can read more about it here: http://www.redherring.com/Article.aspx?a=21602&hed=India%e2%80%99s+Option+Shock
Anyway, the Indian issue is a bit simpler to deal with then the complete political & social crisis being experienced in Pakistan. A shame that, Pakistan has vast potential and keeps shooting itself in the foot - repeatedly.
Finally, Starbucks - the record company - to launch with Paul McCartney??!!!! Starbucks said on Monday it has formed its own record label, Hear Music, to develop records for sale both in its coffee shops and through traditional music retailers. The coffee chain has parlayed sales of music compilation CDs into a business, Starbucks Entertainment, that has included deals for exclusive content with well-known musicians such as Alanis Morissette and Bob Dylan and with little-known musicians. Those sales have helped increase revenue at Starbucks stores.
In an interview, Starbucks Entertainment President Ken Lombard said exclusive content would not be a major focus as the company works to sell CDs through traditional music channels in addition to its own stores. Starbucks' influence as a music retail outlet has grown in recent years. It posted its biggest success with the Ray Charles album "Genius Loves Company," a co-production with Concord Records that won eight Grammy awards. Concord is also partnering with Starbucks on the new record label. Albums will be released at Starbucks stores and at traditional retailers on the same day, giving the coffee shop chain no advantage, Concord Music Group President Glen Barros said.
This one caught me a little by suprise. That said, I always thought Starbuck Entertainmnet compilation CDs were an innovative concept and can admit to buying my fair share...well, placed product placement - I would argue!
The current market sentiment is quite alarming from an observer's perspective. The market is overheated, I recognise for some that there is no question of this statement. But, for me its very official for the world of media. Of course, when you conclude something along these lines, you find all sorts of evidence to support your view. I am no different and found one or two bits in the paper which made we consider how heated things are becoming. First, the bandwagon effect is the observation that people often do (or believe) things because many other people do (or believe) the same. The effect is often pejoratively referred to as herding instinct, particularly as applied to adolescents. Without examining the merits of the particular thing, people tend to "follow the crowd". The bandwagon effect is the reason for the bandwagon fallacy's success. For a more detailed examination of the word bandwagon refer to here: http://en.wikipedia.org/wiki/Bandwagon_effect
Otherwise, see below for a few examples from the world of media:
Parry follows ITV bid with India fund launch By Andrew Edgecliffe-Johnson, The Financial Times, March 11, 2007
The India Media Fund is expected to announce plans for a $150m-$200m fundraising on Aim as early as this week, having already identified 14 possible investments ranging from television channels to newspapers.
Mecom raises £557m for acquisitions By Andrew Edgecliffe-Johnson, Media Editor, The Financial Times, March 10, 2007
Shares in Mecom rose 4¾p to 84p on news that some of the group's largest shareholders had subscribed for a placing and open offer, priced at 78p per share, which would double Mecom's share capital and provide £557m for acquisitions.
Swisscom ready to move on Fastweb By Adrian Michaels in Milan and Haig Simonian in Zurich, The Financial Times, March 11, 2007
Neither company would comment and people close to the talks stressed no offer had yet been received.
However, they said Swisscom, which will announce its 2006 results on Tuesday, had completed a detailed study of Fastweb’s books and was moving towards a cash bid for all of the company.
If successful, it would mark a breakthrough for Swisscom after years of thwarted ambitions.
The cash-rich Swiss group has long sought growth outside its small, mature home market. However, attempts at sizeable deals in Austria, the Czech Republic and Ireland have all collapsed – mostly after political interference.
I made a commitment to post once a week on a fun topic, given some feedback on my rather focused approach to blogging. So, here goes. I picked up The Fountainhead by Ayn Rand last night and was absently flipping through it when I came to Roark's speech to the Court & jury and it made me think. Refer to the Fountainhead here: http://en.wikipedia.org/wiki/The_Fountainhead
The Fountainhead examines the life of an idealistic young architect, Howard Roark, who prefers to struggle in obscurity rather than compromise his artistic and personal vision by pandering to the prevailing taste in building design. The book's title is a reference to Rand's statement that "man's ego is the fountainhead of human progress," and is a more specific version of the book's theme, which is, in Rand's words, "individualism and collectivism in man's soul."
Anyway, its a complicated story, therefore I recommend that you refer to the wikipedia reference. However, I was struck again by the grace of Rand's writing - read/listen to Roark as he addresses the jury:
"Thousands of years ago, the first man discovered how to make fire. He was probably burned at the stake he had taught his brothers to light. He was considered an evildoer who had dealt with a demon mankind dreaded. But thereafter men had fire to keep them warm, to cook their food, to light their caves. He had left them a gift they had not conceived and he had lifted darkness off the earth. Centuries later, the first man invented the wheel. He was probably torn on the rack he had taught his brothers to build. He was considered a transgressor who ventured into forbidden territory, But thereafter men could travel past any horizon...
Throughout the centuries there were men who took first steps down new roads armed with nothing but their own vision. Their goals differed, but they all had this in common: that the step was first, the road new, the vision unborrowed, and the [first] response they received - hatred. The great creators, the thinkers, the artists, the scientists, the inventors - stood alone against the men of their time. Every great thought has been [at first] opposed. Every great new invention has been [at frst] denounced. The first motor was considered foolish. The airplane was considered impossible. The power loom was considered vicious, anesthesia was considered sinful. But the men of unborrowed vision went ahead.
They fought, they suffered, and they paid. But they won."
Anyway, Rand's words always describe for me the passion and ambition of the Founders of early stage-companies, hopefully venture backed who have a vision and despite the brick wall are driven by the need to create. Without such Creators or Adventurers, where would our society be today? Still living in cave huts. Are we better off not living in cave huts? Well, that is for you to decide.
Our history is about creation and our future is about creation. As for me, well, I'd like to think of myself - right there alongside these Creators, taking one brick after another off the wall they face.
Have a great day - and thanks for reading my random musings - Shamsa
