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Twitter closes $15 million round with Spark Capital.

twitter

PaidContent confirms rumors about additional funding for micro-blogging site Twitter. Spark Capital is behind the $15 million third round of financing placing Twitter at roughly $80 Million in valuation. Spark Capital is a fresh VC firm in Boston founded by Todd Darges who I had the pleasure of meeting when he worked at Battery Ventures.

The funding is timely as Twitter is clearly experiencing a growth spurt in users with constant server outages of late. The interesting trend to watch will be the advertising standard that will be used in micro-blogging services like Twitter. I mean…if Twitter is worth $80 Million it should at least make money right?

Other coverage
TC
OM

BizAg - business for sale search engine

Bizaglogo

BizAg is a vertical search engine startup for businesses up for sale. There are numerous business sites on the web like bizbuysell and businessforsale that allows users to search for businesses based on category and location, but none have attacked the business model from a search engine stand point.

BizAg aggregates all the sale listings of businesses and startups across the web into a centralized place. The marketplace tab at StartupAddict.com is setup as a business exchange (buying and selling startups) but not as comprehensive of a search solution.

This could become a real lucrative solution for bloggers looking to cash-in on their blogs cash flow success. I have several friends that will undoubtedly be posting on BizAg before they get to the end of this post. I did a quick search on “social networks” and got some odd results in the 1 and 2 slot but the results were right on target from #3 on. I definitely give a full thumbs up to rather simple scraper-bot (web-crawler) and a simplistic interface that only users in a post Google world could enjoy. It does appear to only scrap the top 3 business sites on the web but, having the power to obtain instantaneous information on a business for sale is still worth its’ weight in gold.

If you are unfamiliar with vertical search check out John Battelle’sSearchblog

Other coverage:
Mashable
KillerStartups

Putting Doba to the test part III

Doba
This is the 3rd of 4 installments on the Doba case study as a viable revenue stream for entrepreneurs. (See part I and part II here) My full analysis will be in part 4. So far eight of my heavily researched products have not even obtained bids on Ebay say nothing about being sold. I have written Ebay off as a viable revenue stream with Doba products and push to marketplace feature. Ebay is a great marketplace for many other sales tricks and ecommerce techniques (just not Doba).

I moved on to greener pastures and jumped into the heavy hitting distribution outlets:

sell_outlets.jpg

I am still seeing a large disparity on my Doba priced products verses competitor products. In some cases vendors are selling retail below what I can even pay Doba wholesale for it.

I have cooked up one of my famous insta-brand logos and websites and should have it launched in another couple weeks. The problem is I am rapidly leaving the “out of the box” territory for the average joe entrepreneur looking to make some extra money with Drop-shipping. Furthermore, the amount of research and time spent cultivating my sales / distribution outlets is rapidly making the coversion ratio for doba products meaningless

Now Doba itself is a strong company stats taken from Inc. clearly indicate that

No. 23 of Inc 500

Industry Software
Founded 2002
Growth 3,202.2%
2003 Revenue $229,000
2006 Revenue $7.6 million
Employees 87
Website www.doba.com

* Ranked No. 2 in the Top Companies in Software
* Ranked No. 5 in the Top 100 Companies Intending to Go Public

What it does: Doba’s Web-based service lets small Internet retailers link to wholesale suppliers of products from DVDs to power tools to bamboo rugs.

Why it’s growing: Chalk it up to that ballyhooed Long Tail. Doba’s software gives its customers access to more than one million products.
Read this company’s extended IncBizNet profile.

However, the purpose of the case study is showcase whether Doba is a viable revenue stream for the little guy. It appears it is only a viable revenue stream for an established or ecommerce pure play.

Based on the Inc stats, it is Doba itself that has created the nice revenue stream. Especially with the upfront fee of $299.00 for a year of access to the Doba website. My guess is the user churn was significant at the monthly rate and users were canceling after a month or two of no success.

Cambrian House Sinks

Cambrian House
Crowd sourcing startup Cambrian House is headed to the deadpool. The company had a bold concept of letting web users submit ideas and rally around the viable ones. The crowd would get a piece of profits as the idea turned into startup success. A significant problem the business ran into was the following:

A key assumption for us, which proved out NOT true: given a great idea with great community support and great market test data, we would be able to find (crowdsource) a team willing to execute it OR we could execute it ourselves. We needed amazing founding teams for each of the ideas – this is where our model fell short.

-Cambrian House CEO Michael Sikorsky

There is no doubt great ideas are still just ideas if poor execution and lack of commitment is evident. According to TechCrunch, Cambrian House was unable to secure another round of funding and will be liquidating assets and intellectual property.

It is sad to see Cambrian House close the doors with such an amazing concept and one so deeply rooted with similarities to StartupAddict.com.

It looks like the next evolutionary step for Cambrian House is VenCorps

Other Startups in the crowdsourcing space are CrowdSpirit, Kluster, CrowdSpring, and FellowForce.

Other coverage on Cambrian House
Matthew Ingram

CBS buys CNET $1.8 Billion

CNET logo

CBS has acquired San Fransisco based CNET for $.1.8 billion. CNET has numerous web properties and enormous traffic from the likes of Gamespot,TV.com, news.com and mp3.com. According to Forbes “The deal values CNET at a 44.6% premium to Wednesday’s closing price of $7.95. CBS said that the deal would catapult it into the ranks of the 10 most popular Internet companies in the United States, with around 200 million users worldwide.”

Pre-CNET purchase numbers indicated CBS lagging in 5th at around 23 Million unique visitors as of the middle of March 2008 according to Adage.

1. TimeWarner 123.8 M
2. Disney 48.1 M
3. NewsCorp 86.6 M
4. NBC Universal 51.5 M
5. CBS 23.6 M

Whether the CNET purchase will truly bring CBS to the number one position time will tell. The CBS Internet acquisition rampage puts some plush holdings under its’ belt:

CBS Audience Network
CBS Local Station Group
CBS Mobile
CBS.com
CBSGames.com
CBSNews.com
CBSRadio.com
CBSSports.com
CSTV.com
The CW (joint venture)
Dotspotter - Click here for previous coverage ($10 Million purchase)
Last.fm - Click here for previous coverage ($280 Million purchase)
MaxPreps Network
Showtime.com
StarTrek.com
The Showbuzz
Wallstrip.com Click here for previous coverage ($5 Million purchase)
CNET.com

*information based on Adage

I continue to devote coverage to CBS because of the bold moves the once traditional media company continues to display on where media is consumed.

Other coverage on the CBS - CNET purchase:

PaidContent

BusinessWeek

24/7Wall St.

Huffingtonpost

Automated Social Networking for Bloggers

Scoutle
Scoutle a new dutch startup launched earlier this month with an interesting take on how to make automated social networking connections for websites and bloggers. In their words:

Your Scout is your personal webcrawler. He will walk over the Internet and will meet other Scouts. To help your Scout walk, give him some space so install the small Stage on your website. This will not only activate your Scout, but will also bring other Scouts to your website.

What I dig about Scoutle is it takes the concept of data portability or openness of social network data a step further —automating it! I have signed up for and account and will report on my findings. On the surface it sounds amazing to have like minded people know all about me and I know all about them. People I would never have ordinarily met….sounds like real social networking. Now if I could only automate myself to work a room at functions and events.

For more info on how it works check out Scoutle’s video

Other good Scoutle coverage:

Sociableblog
TechCrunch
WorkConnexions

Google Friend Connect launches

Google Friend Connect

Google’s Friend connect has launched and gives web site owners the ability to add social features (within an iframe) to their existing websites. The code is a a cut and paste scenario and is not much more difficult then pasting adsense code.

I have to hand it to Google, they continue to create feature rich services that possess consistent UIs (user interface) and dead simple to implement. Friend Connect has a standard sign in and import feature from several social networks like Facebook and of course Orkut.

Friend Connect sign in

What is really interesting is that Google used the publicly available Facebook API because Facebook is not part of the open social movement. Friend Connect shows the power of data portability through the use of API’s and open standards.The pre-release of Friend Connect has internal or core social features developed by Google like rating system, friend import etc… users will have the ability to add any application developed for open social by external developers as well.

As far a privacy issues go…..well that continues to be an evolving battle. Google will have the ability to aggregate social information on users much the same way Google has gathered information regarding your website. After all Google is in the advertising business and gathering information is the honey for the advertising bees.

I will be implementing Friend Connect for StartupAddict.com as soon as Google lets me. For those of you new to this blog, StartupAddict.com is a vertical social network for entrepreneurs and startups launched last year. The site is built on open source Drupal and I feel Google Friend connect will add additional dynamic social information to the startup network. More importantly it will allow the existing and new user base to import friends and interact very easily enhancing site growth and eliminating the need for my developers to create drupal modules to facilitate this functionality.

I’m very excited about friend connect and how it will advance the social graph and interoperability among multiple social networks.

Additional coverage on Google Friend Connect:

Yahoo News

Venture Beat - Google Friend Connect

ReadWriteWeb

Putting Doba to the test Part II

Doba

About mid-week I received a phone call from a Doba representative. He was certainly a nice enough gentleman the appropriate balance of sales and telemarketing. Being the qualified “warm” lead that I am, you could tell he was reading the Doba sales script and inserting my first name every other 100 words to sound congenial and personal. All in all he did a good job. Doba was offering a 50% Doba special if I prepaid all at once. After his speech he clearly spelled out the savings over the normal $59.95 a month ($700 annual) he was offering. The total was $299.00 for the next 12 months. I would have hung the phone up at this point (because if Doba profit margin’s are so good, why do they need an annual prepayment, but that would be much of a case study for all you entrepreneurs would it? I said sure, let’s give it a go in the name of lifting the veil on Doba.

Shortly after this I took my research I conducted from (Doba part I). I used the fancy push to marketplace button and had 3 products on ebay in less than 10 minutes. A bar stool, piece of jewelry and a men’s watch. Fast forward 3 - 5 days (length of auctions) and Nada. I was out the ebay fees. So now my total investment is about 10 days being involved with Doba and about $303 dollars of total cash outlay.

I have noticed the supposed “wholesale” price of Doba products plus a 2.50 dropship fee plus and abnormally high shipping rate is starting to be the culprit for no sales in the Ebay marketplace. I also notice a plethora of no-name brands pushing product through Doba. I’m not losing hope yet though….Ebay is known for price-slashing shoppers and people looking for 25 -50% off retail (the same margin as the price for Doba’s products). Before I throw Doba under the bus I will forge ahead with other sales outlets on the Internet.

Stayed tuned for Part III of Doba case study as I ramp up the sales efforts.

Other Doba Reviews you may find interesting.

Ryan’s Review

Salehoo

Ebay feeback review

Blackberry “Bold” launches!

Blackberry “Bold” launches!

For the last ten years I had the equivalent of cell phone ADHD until I experienced the Blackberry line of products (Blackberry 8703 in particular). Blackberry’s newest product announcement “Bold” has all the bells and whistles a modern day smart phone should have coupled with the reliability and functionality of the Blackberry name. A few of the press release highlights:

BlackBerry Bold smartphone’s support for tri-band HSDPA and enterprise-grade Wi-Fi (802.11 a/b/g) networks and its next-generation 624 MHz mobile processor make short work of downloading email attachments, streaming video or rendering web pages. The BlackBerry Bold also includes 128 MB Flash memory plus 1 GB on-board storage memory, as well as a microSD/SDHC memory card slot(ii) that is conveniently accessible from a side door. It comes with the renowned BlackBerry productivity applications, including phone, email, messaging, organizer and browser, and works with thousands of mobile business and lifestyle applications, making it easier than ever to stay connected, productive and entertained. With this powerful new smartphone, users can even talk on the phone while sending and receiving email or accessing the web, and download Word, Excel or PowerPoint files and edit them directly on the handset using the preloaded DataViz® Documents to Go® suite.

STUNNING DISPLAY

The BlackBerry Bold smartphone comes with the most vivid and bold display ever introduced on a BlackBerry smartphone. Its half-VGA (480×320 resolution) color LCD is fused to the undersurface of the lens, making images leap out with stunning definition and clarity. Pictures are vibrant and razor sharp, while videos play smoothly and web pages, documents, presentations and messages snap with exceptional quality and contrast.

DESKTOP-STYLE WEB PAGES

With its newly enhanced, high performance browser and high-resolution, ultra-bright display, the BlackBerry Bold smartphone gives users an on-the-go web browsing experience with desktop-style depiction. The trackball mimics a mouse, making it easy to navigate sites in “Page View” or “Column View” or to zoom in on specific parts of a web page, while various emulation settings allow users to choose between the full desktop-style HTML content and layout or the mobile version. Attachments can also now be downloaded from within the browser and there is support for watching streaming videos (RTSP - real-time streaming protocol).

RICH MULTIMEDIA

While it is designed to meet the extensive requirements of the business professional during the day, the BlackBerry Bold smartphone also caters to the business person’s consumer side during evenings and weekends. It features a 2 megapixel camera with video recording capability, built-in flash and 5x digital zoom. The enhanced media player can display pictures and slideshows quickly, play movies smoothly in full screen mode, and manage an entire music collection. Audio can be played over the handset’s dual speakers in rich, stereo sound, and when using wired headphones or external speakers, the media player gives the user an equalizer with 11 preset filters - like “Lounge”, “Jazz” and “Hip Hop” - that boost or soften audio ranges to create the perfect ambiance.

For managing music and video, the BlackBerry® Desktop Manager software includes Roxio® Media Manager for BlackBerry® as well as Roxio Photosuite® 9 LE, which makes it easy to enhance pictures and create photo albums on the computer. For users that manage their collection with iTunes®, the new BlackBerry® Media Sync application provides a simple way to sync iTunes digital music collections with the smartphone(iii). Support for High Speed USB 2.0 allows all files to be transferred quickly from a desktop computer to the BlackBerry Bold smartphone.

POWERFUL WI-FI & GPS

For even broader high-speed network coverage, the BlackBerry Bold smartphone supports the 802.11 a/b/g Wi-Fi standards, ideal for use in enterprise or campus wireless LAN deployments, over Wi-Fi hotspots and on wireless home networks. A new “Push Button Setup” is included, making it faster for users to connect to protected wireless networks that require a sign on process.

Through its integrated GPS, the BlackBerry Bold smartphone can pinpoint its exact location, supporting applications like BlackBerry® Maps and other location-based applications or services. With its improved rendering capabilities, faster download speeds and ability to support simultaneous voice and data, the BlackBerry Bold smartphone even allows users to navigate while on a call.

FIRST CLASS PHONE

The BlackBerry Bold smartphone features a new acoustic design that increases the size of the phone’s audio sweet spot, improving listening quality and clarity. It also comes with numerous premium phone features including Speaker Independent Voice Recognition (SIVR) for Voice Activated Dialing (VAD), Bluetooth® 2.0, with support for hands-free headsets, stereo headsets, car kits (including car kits that adhere to the Bluetooth Remote SIM Access Profile) and other Bluetooth peripherals. It is a quad-band EDGE and tri-band HSDPA handset that supports global roaming(iiii) and features dedicated ’send’, ‘end’, and ‘mute’ keys, smart dialing, speed dialing, conference calling and call forwarding. It also features noise cancellation technology that offsets background noise, a powerful speaker phone and support for polyphonic, mp3 and MIDI ring tones.

“crafted from premium materials” in the beginning of the press release is no joke. I have dropped my phone half a dozen times (hard) and it bounces back every time. It’s nice to see Blackberry staying fresh in the mobile marketplace especially with the success of the iphone.

Other nice coverage on Blackberry Bold can be found at:

BoyGenius

Gizmodo

Mobile Gadgeteer

Deal Architect

Electronista

$500 Million Week for Grand Theft Auto

Grand Theft Auto
When I watched Take-Two interactive bounce 44% in one day on the Grand Theft Auto news, I remember thinking how difficult a nose-bleed valuation like that would be sustainable. Apparently not so difficult, according to NYTimes, 3.6 million units were sold on the first day and $500 million in sales in the first week for Grand Theft Auto. Statistics like these are the very head of the long-tail curve.