Posts Tagged ‘Internet’
Friday, November 18th, 2011
 MOUNTAIN VIEW, CA – Fenwick & West,a law firms providing comprehensive legal services to high technology and life science clients says the results of its Third Quarter 2011 Silicon Valley Venture Capital Survey shows strong valuations for venture financings continued during the third quarter in the Valley. Internet, digital media and software firms performed best.
The Third Quarter 2011 survey analyzed the valuations and terms of venture financings for 113 technology and life science companies headquartered in the Silicon Valley that reported raising capital in the third quarter of 2011.
Up rounds exceeded down rounds
“During the third quarter of 2011, up rounds exceeded down rounds 70% to 15% with 15% flat. This was an increase from the second quarter of 2011, when up rounds exceeded down rounds 61% to 25%, with 14% flat.
Series B rounds were especially strong with 89% up rounds. The was the ninth consecutive quarter in which up rounds exceeded down rounds,” said Barry Kramer, partner in the Corporate Group of Fenwick & West and co-author of the survey.
An up round is one in which the price per share at which a company sells its stock has increased since its prior financing round. Conversely, a down round is one in which the price per share has declined since a company’s prior financing round.
The Fenwick & West Venture Capital Barometer™ – which measures the change in share price of Silicon Valley companies funded during the quarter compared with the share price of their previous financing round – showed a 69% average price increase for the quarter, a slight decrease from the 71% reported in the second quarter of 2011.
Additionally, one of the companies in the internet/digital media industry had a 1,500% up round, and were this company excluded the Barometer would have been 54% for the quarter.
“This was also the ninth consecutive quarter in which the Venture Capital Barometer was positive,” said Kramer.
Internet, digital media, software best performing
“The best performing industries in the quarter from a valuation perspective were internet/digital media and software (including a significant number of “software as a service” companies and companies building applications for mobile devices), which substantially outpaced the other industries, followed by hardware and cleantech, while the life science industry continued to lag,” added Michael Patrick, partner in the Corporate Group of Fenwick & West and co-author of the survey.
“The third quarter of 2011 was a mixed quarter for the venture capital industry, with healthy valuations, solid amounts of investing and an improved M&A environment. However fundraising by venture funds, IPOs, venture capitalists’ confidence level and Nasdaq, were all off significantly.
Nasdaq has recovered significantly in 4Q11 to date, and Groupon had a successful IPO, but the macro environment continues to be unpredictable, and accordingly the future direction of the venture environment is uncertain,” added Patrick.
Both venture capitalists and entrepreneurs tells us that valuations on the East Coast and the Southeast are not on a par with those on the West Coast, particularly in Silicon Valley. Perhaps that will bring more West Coast VCs into the heartland and the opposite coast to hunt deals, but they do seem to have an aversion to too many cross-country flights.
Complete results of the survey with related discussion are posted on Fenwick & West’s website atwww.fenwick.com/vctrends.htm.
Tags: CA, digital media, Fenwick & West, fundings, Internet, Mt. View, Q3 2011, Silicon Valley Venture Capital Survey, software, up rounds exceed down rounds, Venture Capital Barometer, venture funding
Posted in entrepreneurship, Internet/New Media, IT, Money, Studies, surveys, reports, venture capital report | Comments Off
Wednesday, September 28th, 2011
 Driven largely by new media technologies, the U.S. Communications Industry spending is on pace to grow 4.1% in 2011 to $1.120 trillion and forecast to expand at a 5.5% compound annual growth rate (CAGR) in the 2010-2015 period, outpacing nominal GDP growth by 90 basis points, according to a new forecast released today by Veronis Suhler Stevenson (VSS), a private investment firm.
By the end of 2015, the Communications Industry will be the eighth-fastest-growing and fourth-largest U.S. economic component, according to the 25th edition of the VSS Communications Industry Forecast2011-15 .
Communications Industry growth in the 2010-2015 period will be driven primarily by the rapid convergence of computer, internet and wireless mobile technologies fueling the ongoing transformation of the media landscape and leading to new industries, platforms, channels, and consumer and institutional behaviors.
Strong gains in six sectors
Consumer and Institutional end-users are demanding instant and constant access to information, and their investment in state-of-the-art information and technology services remains central to effective decision-making on many fronts.
In the forecast period, these trends are manifested by strong gains in four of the six Industry Sectors covered in the VSS Forecast: Targeted Media, the fastest growing industry sector, with an expected 7.9% CAGR in the period, fueled largely by the Pure-Play Consumer Internet & Mobile Services segment.
That will post a CAGR of 16.2% – outpacing GDP growth by over 3x; Business & Professional Information & Services, which is expected to generate a 7.3% CAGR; Education and Training Media & Services – including Not-for-Profit Instructional Media and K-12 Instructional Media – which is anticipated to produce a CAGR of 5.2%; and Entertainment & Leisure Media, which will record a 5.6% CAGR from 2010 to 2015.
Major segments that have been negatively impacted in recent years by the migration to digital platforms and economic factors are expected to stabilize during the forecast period, according to the VSS Forecast.
The Traditional Consumer Advertising Media sector, which includes the Broadcast Television, Consumer Magazine Publishing, and Broadcast & Satellite Radio segments, among others, will generate growth in the forecast period, albeit trailing GDP, as brand-related digital products and delivery methods gain a stronger foothold for most traditional media outlets.
Business & professional services sector growing
John Suhler, co-founder, president and general partner of VSS, said, “Business & Professional Information & Services continues to be a fast-growing sector, in part, because it has long embraced digital content and related software services and delivery.
“Also, the sectors that held up well in the last economic downturn – Targeted Media, Business & Professional Information & Services, Education & Training Media & Services, and Entertainment & Leisure Media – are all expected to record solid growth in the forecast period, thanks in large part to their migration to digital platforms and delivery methods.”
Time spent with the internet, including traditional media brand-related digital and pure-play platforms – covering usage at home, school and work – increased 6.0% in 2010 to 397 hours per person.
The growth came from consumers spending more time with social media and workers using software to access and manipulate information. Time spent with mobile media in 2010 soared 49.7% to 77 hours per person, thanks in large part to increased smartphone penetration.
With the introduction and rapid adoption of computer tablets by consumers and businesses, those factors are also expected to fuel a 35.3% increase in time spent with wireless media in 2011, reaching 104 hours per person. The segment will post a 19.8% CAGR during the forecast period, with consumer purchases of more e-books, music, mobile applications and streaming video driving the increase.
Targeted Media fastest growing sector
Accordingly, Targeted Media – which includes products and services from operators that provide advertising and marketing messages to vertically defined consumer or business niches – will be the fastest-growing sector in 2011 and during the forecast period, increasing 7.1% to $199.66 billion this year and posting a 7.9% CAGR in the 2010-2015 period, reaching $272.50 billion.
In addition to the Pure-Play Consumer Internet & Mobile Services segment, growth in Targeted Media will come from Branded Entertainment Marketing, where Consumer Events and Paid Product Placements will post CAGRs of 8.5% and 9.7%, respectively, to end 2015 with spending of $33.36 billion and $6.15 billion.
Tags: adevertising, computer, Internet, mobile, traditional media, VSS Communications Industry Forecast, wireless
Posted in Internet/New Media, IT, Mobile, smartphones, Studies, surveys, reports, Telecommunications | Comments Off
Friday, August 19th, 2011
 Updating two studies from 2010, the Phoenix Center says that Americans who use the Internet are more likely to continue active job searches and less likely to drop out of the labor force than those that do not use the Internet.
Authored by Phoenix Center Chief Economist Dr. George S. Ford, the study also recognizes that mobile broadband is rapidly becoming the connection modality of choice for many Americans.
In particular, evidence suggests that lower-income households, where labor market troubles are particularly acute, are more prone to be mobile-only customers.
While mobile broadband is widely available, there are meaningful shortfalls in coverage, particularly in rural markets. Accordingly, facilitating private investment in expanded mobile broadband coverage could improve the efficiency of labor markets, and particularly for persons living in lower-income households or rural markets.
Using the 2009 and 2003 Computer and Internet Use Supplements of the Census Bureau’s Current Population Survey, the Center’s empirical models again find that broadband Internet users — whether at home or at shared public facilities — are about half as likely to give up job searches because of discouragement than those who do not use the Internet.
Even dial-up Internet users are less likely than non-users to drop out of the labor force as a result of being discouraged by labor market prospects. Estimates from the study based on 2003 data indicate that the primary mechanism for reducing discouragement is Internet-based job search and not general Internet use.
Given these new results, the Phoenix Center’s research continues to reveal that a healthy commercial Internet ecosystem, supported by policies that promote efficient investment, remains an important tool for helping the United States return to economic health. As such, the Center again recommends that government should seek to promote policies that incentivize, rather than deter, efficient private broadband investment.
See: Phoenix Center Policy Perspective No.11-04, Internet Use and Labor Market Participation: Additional Insights from New and Old Data
Tags: Internet, job seeking, survey
Posted in Internet/New Media, Studies, surveys, reports, TechJobs | Comments Off
Friday, July 22nd, 2011
 Google+ has chalked up 20 million unique visitors since its launch three weeks ago, according to digital measurement service comScore.
ComScore used its global measurement panel of two million Internet users to estimate the number of visitors to the new social networking service from the search giant.
The invite-only scheme for Google+ certainly created much more interest than the company’s previous attempt to poach on Facebook territory, the inaptly named Google Buzz, which debuted with a splash and sank without further adieu into the backwaters of Google services.
A number of people in and out of the tech community have questioned whether Google+ could triumph over Facebook in the end, but some early adopters see it as providing Facebook-like social networking without Facebook-like drawbacks.
The Wall Street Journal quotes comScore’s Vice President of Industry Analysis, Andrew Lipsman, who says “I”ve never seen anything grow this quickly.”
Still, as the WSJ points out, Google+ has a long way to go before it matches Facebook’s 750 million users. The real problem for the service may be in acquiring the general Internet users who populate Facebook – not just the tech early adopters and luminaries already using it, but parents, children and friends of users.
Google+ lets users share comments, photos or links with “circles” of friends, or publicly so any user can see them. Google+ features will be incorporated in YouTube and other Google properties.
Tags: comScore, facebook, Google, Internet, social networking
Posted in Facebook, Google, Internet/New Media, social media, Studies, surveys, reports | Comments Off
Tuesday, July 5th, 2011
 Go Daddy Group Inc., parent of domain registrar GoDaddy.com, has sold to private equity firms for $2.25 billion, the company said. The company sold to KKR, Silver Lake and Technology Crossover Ventures.
GoDaddy is looking to exceed $1.1 billion in revenue this year. The company is known for its excellent company service. If you ever bought a domain name from GoDaddy, you likely got a call not long after from one of its service people. The company, based in Scottsdale, AZ, was founded by CEO Bob Parsons in 1997.
Some folks in the tech community have expressed concerns that the private equity buyers of the company will milk it for all its worth without regard to its tradition of selling domain names inexpensively with great service. We’ll see.
Zynga, Farmville-maker files for $1 billion IPO
San Francisco-based Zynga, the game maker that created Farmville and Mafia Wars, two of the most popular Facebook games, has filed with the U.S. Securities and Exchange Commission for an initial public offering of stock to raise at least $1 billion.
For a detailed infographic on Zynga’s path from founding to IPO see: Zynga infographic at Namesake.com.
Zynga, founded four years ago, has users in 166 countries. About 230 million people play its games every month. The company has revenue of $597 million in 2010, up from $121 million in 2009. The profitable company earned $90.6 million in 2010.
It is the latest of the much ballyhooed Internet companies to seek public status following LinkedIn (Linkd) Corp. Analysts expect even greater interest in Zynga’s IPO and the amount of money it decides to raise may change as the level of that interest is better evaluated.
The company was founded by CEO Mark Pincus and has about 2,300 employees. The company’s shares recently sold for $15 each on secondary markets, which would value the firm at $12.6 billion.
The filing with the SEC reveals the company is investing in its own data centers to supplement its use of the Amazon cloud service, which allowed the company to grow fast without building infrastructure. Most Facebook game companies rely on Amazon’s cloud. VentureBeat says Zynga’s ability to design apps that take advantage of Amazon’s cloud is one reason for its success.
Despite the inevitable suggestions that the moonbeam valuations of Internet companies may signal another Internet bubble, many analysts point out that the difference is in the fact the today the Internet is more fully integrated into our public, personal and professional lives. These companies have substantial revenues, enormous numbers of users, and some, such as Zynga are even profitable.
Some analysts note, though, that their market values may still be quite overvalued.
BLiNQ names John Tawadros president, COO
BLiNQ Media, a global technology innovator in Facebook advertising and the only pure-play media and technology company worldwide with official access to the Facebook Ads API, has hired former COO for top search-marketing firm iProspect John Tawadros as president and COO.
Prior to joining BLiNQ Media, Tawadros was the COO of iProspect. Over the course of ten years he helped build the company from a basement startup to the #1 search marketing firm in the world, acquired for $50MM in 2004.
While at iProspect, he built and ran a world-class client services team with a 90%+ client retention rate, a companywide training program and scalable business processes to drive efficiencies, communications, ROI and overall performance.
The client-facing, algorithmic and paid search, technology, training and innovation teams all reported to Tawadros. He also played a significant role in the integration of iProspect with Aegis and in the acquisition and integration of a Texas-based retail industry search firm.
“Social media is the new search,” said Tawadros. “Facebook, the biggest player in digital media, is now the home of innovation, and BLiNQ Media helps advertisers make the most of it. It’s an honor to join this creative, intelligent and hard-working team.”
Tags: Acquisitions, BLiNQ, Facebook advertising, Farmville, GoDaddy sold, Internet, IPOs, John Tawadros, Mafia Wars, People, Zynga files for IPO
Posted in Acquisitions, Facebook, Farmville, games, Internet/New Media, IPOs, Mafia Wars, mobile games | Comments Off
Tuesday, May 31st, 2011
 Microsoft Corp. says 5 percent of Windows computers scanned with its new free malware cleanup tool were infected, the company says.
Microsoft’s free Safety Scanner, which relaunched May 12, was downloaded 420,000 times the first week of its release and cleaned malware from 20,000 Windows PCs, a 4.8 percent infection rate, according to Microsoft’s Malware Protection Center.
The average infected PC had 3.5 threats removed. Seven of the top ten malware infections were Java exploits, MMPC reported in a blog post.
Microsoft says two holes in Java account for 85 percent of all Java attacks in the second half of 2010, when Java exploits exploded from 1 million in the first six months to 13 million in the second half of the year.
Both vulnerabilities in Java have since been fixed. But they were still number one and number six in the Safety Scanner top 10 infections, says Microsoft.
The free safety scanner expires after 10 days and must be redownloaded with updates, not exactly the most efficient of systems, but free is free.
Tags: 1 in 20 Windows PCs infected with malware, Internet, Java exploits, Microsoft Safety Scanner, Security
Posted in Internet/New Media, Security, Studies, surveys, reports | Comments Off
Tuesday, April 12th, 2011
 Even with tax day being slightly extended this year, April 15 is still the most dreaded day of the year. But you can feel better by getting the best rate for Digital Summit 2011 in Atlanta.
In addition to the best available rate, register by Friday and receive a copy of the New York Times bestseller “The Thank You Economy,” by Keynote Speaker Gary Vaynerchuk. 
The conference on May 16-17th brings together hundreds of marketers, internet execs and entrepreneurs at Atlanta’s premier digital event with Industry Experts sharing insights on top level trends and best practices, micro-topic actionable strategies, hot early-stage companies, plus hours of networking with peers and thought leaders.
Making sense of Website Analytics? Understanding SEO and Search? Finding ROI on Social Media initiatives? Figuring out where your marketing dollars are best spent? Digital Summit 2011 brings you relief with sessions targeted to give you answers and strategies ready to implement when you return to the office:
Social Media Marketing;
Trends in Ecommerce
Social Media Trends
Online Advertising Analytics and Measurement
Cloud Computing
Search Marketing
Mobile Marketing
Reputation Management
Advanced SEO
Ad Words
Social Media ROI
Advanced Analytics
Online Video
Usability & Design
Email Marketing
Demo Showcase
Venture Capital Viewpoint
Internet Entrepreneurship
Register before April 15th and pay only $245 and receive a copy of The Thank You Economy with your paid registration.
Tags: ad words, advanced SEO, analytics, Atlanta, Digital Summit, email marketing, Events, free book with early registration, Gary Vaynerchuk, Internet, internet entrepreneurship, online video, social media, Thank You Economy, VC viewpoint
Posted in Education, Events, Georgia, Internet/New Media, IT, Mobile, mobile games, Money, smartphones, social media, Tech Culture, Telecommunications | Comments Off
Wednesday, April 6th, 2011
 Vinay Bhargava CHEVY CHASE, MD – Chevey-Chase-based Mytonomy, a “stealth-mode startup” its founder says is “focused on solving an age old problem in the education space using modern Internet capabilities, has received $195,000 from a $5 million equity offering, according to a regulatory filing.
The company’s founder and CEO, Vinay Bhargava was with Google for seven years, most recently as a development manager.
Bhargava’s LinkedIn profle says, “Stay tuned,” for more information.
The company disclosed the raise in a filing with the U.S. Securities and Exchange Commission, which notes eight investors contributed to the raise so far.
Tags: Chevy Chase, education, financing, Google, Internet, MD, Mytonomy, Vinay Bhargava
Posted in Education, Internet/New Media, IT, Maryland, Money, Potomac | Comments Off
Tuesday, March 8th, 2011
 By Allan Maurer
CARY, NC –Twongo, a social savings platform started in the Triangle in January 2010 offers 50 to 70 percent off local deals much like the ones sold by the 800-pound gorillas in the space, Chicago-based Groupon and DC’s Living Social. While it is currently only in a handful of North Carolina and Canadian markets, it is already profitable and plans to expand to 15 more markets in the next 12 months.
The company helped residents of the Triangle area save more than $1 million on retail goods and services last year.
Some of 2010’s deals included discounts for as much as 70 percent off at local restaurants such as Jimmy V’s Steakhouse, 42nd Street Oyster Bar, Daniel’s on 55, Danny’s BarBQ, Peak City Grill and The Meat House .
The company also offered savings opportunities on services from businesses such as Aviator Brewing Company, Aveda Institute, Garden Supply Company, BodyLase Skin Spa, RightTime KiDS, Raleighwood Cinema Grill, White Oak Landscaping & Irrigation, Carolina Auto Spa, Rush Hour Karting and Triangle Segway Tours.
How did Canada get into the mix?
Founder and CEO Brad Halferty tells us the bootstrapped company will seek funding to fuel accelerated growth. Like its large rivals, Twongo wants feet on the ground in each new market it develops, so the 17-employee company will be doing its small part in reducing unemployment.
Currently Twongo operates in Raleigh, Cary, Apex, Wilmington and four British Columbia markets. How did Canada get into that early mix?
“An investor there, Mike Minor, a former IBMer, was interested in the space and loved Twongo, so we licensed rights and they’re doing great,” says Halferty.
The company’s name derives from the Chinese concept of “tuangou”, or group buying.
The local deals group buying space is one of the hottest in the digital arena, with Groupon collecting $950 million in its most recent venture round and DC’s Living Social landing more than $230 million, including $175 million from Amazon.
“I monitor what they do, but I don’t obsess over them,” says Halferty. He notes there are new entries in the space monthly. Some estimates say more than 120 such firms are in business, most limited to only one or a few markets. Google, which tried unsuccessfully to buy Groupon, launched its own version and even the New York Times is getting into the act.
Consolidation, attrition expected
“I think in the next six months you’ll see a lot of consolidation and attrition,” Halferty says.
As for Twongo, he says he has ideas for expanding it into areas the other companies in the space have not yet tried, but would only discuss them off the record. Currently, it targets much the same types of businesses the others do, those with extra capacity and the ability to handle an influx of traffic without breaking the system, such as restaurants, spas and so forth.
One of the ways he says Twongo differentiates itself now is that it does not seek just any customer for its deals. “We don’t want everyone. We want the right customer with the most disposable income who will spend over and above the voucher and return to the business if they like it.”
So far Twongo’s strongest marketing has been word of mouth, although it does some online and radio marketing as well.
Halferty sees mobile as the driver for group buying deals in the future. “I think we’ll see a huge migration to mobile. The ability to get on demand deals will be huge and go hand in hand with electronic wallets. I think it will shake out the one trick ponies, the daily deal firms that are underfunded or not yet established.
Halferty says Twongo has already had numerous clients run repeat deals. “We work with closely with each client,” he says.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: Brad Halferty, Cary, group buying, Groupon, Internet, Living Social, mobile, NC, Raleigh, Twongo
Posted in Carolinas, Internet/New Media, North Carolina | Comments Off
Friday, February 25th, 2011
 DULLES, VA – Echo 360, a company that captures college lectures so students can replay them online on demand, has raised $2.97 million in a mixed securities offering, according to a regulatory filing.
The company raised $26.3 million in April 2010, another $2 million later in the year, and $15 million in 2008. It disclosed the latest raise in a filing with the US Securities and Exchange Commission.
The company evolved as a subsidiary of Anystream, which sells digital media production and management software to media companies. Anystream acquired Lectopia, which sold lecture capture technology in New Zealand and Australia, in 2007. It blended Anystream’s video and IT expertise with educational lecture capture to create the Echo360 platform.
The result, it says, is a repeatable, on-demand educational experience that is easy for institutions to deploy and support while providing students exceptional playback quality and options in line with their mobile lifestyles.
Students can replay any professor’s lecture on a PC or Mac, hear or watch a podcast, and even follow closed captioning. Not only that, students can go to any part of the lecture via key word search.
The company’s customers in the Southeast include Florida Coastal School of Law; Florida Atlantic University, Barry Kaye College of Business; George Washington University; North Carolina State University; the University of North Carolina at Wilmington; and the University of North Carolina School of Medicine. Nationally, customers include M.I.T., and Notre Dame, among many others. Internationally, it has schools from London to China.
TechJournal South is a TechMedia company. TechMedia presents the annual conferences:
SoutheastVentureConference: www.seventure.org
Internet Summit: www.internetsummit.com
Digital East: www.digitaleast.com
Digital Summit: www.digitalsummit.com
Tags: DC, Dulles, Echo 360, financing, Internet, NC, online lecture rewind, VA
Posted in Carolinas, Education, Florida, Internet/New Media, IT, Money, North Carolina, Potomac, Virginia, Washington, DC | Comments Off
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