Despite The Hype, Just 5 Percent Of U.S. Owns A Tablet, Says Nielsen

From the way that OEMs are rushing to get ahead in the slate race, you’d think that tablets were just about as ubiquitous as our beloved smartphones. But according to Nielsen, that is not the case, whatsoever. In fact, only about 5 percent of the 12,000 U.S. consumers surveyed own a tablet.

However, this isn’t all bad news for tablet makers, at least every tablet maker but Apple, which, according to Nielsen, currently holds 80 percent of the tablet market. If only a measly five percent of the U.S. population owns a tablet, the majority of whom probably chose the iPad, that still leaves a whopping 95 percent of U.S. Americans just waiting to find a tablet they can’t resist.

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Cloud Database Provider MongoLab Raises $3 Million From Foundry, Baseline, And Others

MongoLab, a cloud-based database provider created by San Francisco-based ObjectLabs, announced today that it has closed a $3 million series A funding round led by Foundry Group, Baseline Ventures, GRP Partners, Freestyle Capital, David Cohen, and more. The list of investors is notable, considering that it includes several names involved in the backing of other well-known cloud infrastructure players, like Heroku, SendGrid, Urban Airship, SimpleGeo, and Twilio, to name a few.

So, what is MongoLab? For those not familiar, MongoLab is a database-as-a-service (DBaaS) provider for MongoDB, 10gen’s scalable, open-source, document-oriented database currently being used by companies like Foursquare, bit.ly, and Etsy. MongoLab enables cloud-based hosting for MongoDB users on Amazon’s EC2 and Rackspace, and manages replication, backups, monitoring and uptime — the tedious stuff — so that your team doesn’t have to.

The cloud service also offers web-management tools that are optimized for those who are new to the technology. It provides an admin UI, for example, that allows users to create and remove databases, to search for and edit data, providing you with the supplemental tools you’d need if you, say, installed the database yourself.

For app developers looking to take advantage of cloud-based data storage, MongoLab allows clients to connect directly to the database via its JSON REST API. This is huge for mobile and AJAX applications, because the traditional way of writing the backends of mobile apps is to create a REST API intermediary between the device and the database storing the app’s data, but MongoLab allows developers to skip writing a custom server app, cutting out the middle man.

There are a bunch of scalable NoSQL technologies out there, but MongoLab is, as you can guess from its name, all about MongoDB. The reason the team chose the new technology, says MongoLab CEO Will Shulman, is because of its scalability and usability as a general-purpose database. It works with both large and small sets of data.

“Developers have spent the better part of their careers writing code to change the shape of their data between object form and relational form. I recently heard one VP of Engineering refer to it as ‘our Vietnam’”, Shulman said. “Since JSON is an object format, MongoDB makes a lot of these problems disappear. Developers have been waiting years for something like this”.

The team is obviously very excited about the new technology behind MongoDB and hopes that, through it’s cloud-based data storage and management solution, the two can provide a knock-out solution for cloud scaling and hosting.

“The folks at 10gen, the makers of MongoDB, made all the right trade-offs: a general-purpose query
language, a generic way of indexing, and very configurable consistency semantics. And it scales. For these reasons we see MongoDB as a general-purpose DB that’s highly scalable, rather than a very specialized data store”
, Shulman concluded.

MongoLab is currently in beta both for its multi-tenant database plans and as a Heroku add-on and is in alpha with a dedicated server offering. Developers can begin test driving MongoLab now using its free plan, and get started in minutes.

Information provided by CrunchBase


TurningArt Raises $750K To Be The Netflix For Artwork

TurningArt, a startup that aims bring a Netflix-like model to the art world, has secured $750,000 in seed funding led by NextView Ventures with participation from Niraj Shah, Steve Conine, Thomas Lehrman, and Will Herman.

Launched in August 2010, TurningArt allows customers to rotate prints of contemporary artists in their home or office for as little as $9.99 per month. Similar to the way you pick movies on your Netflix account, customers can build a queue of artwork they’d like ‘rent’, and TurningArt will then ship that artwork at their preferred frequency.

Customers can rotate pieces for as long as they like, and have the option to purchase whenever they are ready. Every dollar spent during the subscription plan can be applied towards the purchase of a work of art on TurningArt. Currently all art on the site is 17 inches by 21 inches but the startup plans to expand to larger formats soon. Prices for art range from $50 to 5,000 on TurningArt and all pieces come framed.

Applying a Netflix model to ‘renting’ art is an interesting idea. I’ve been tempted to buy artwork on sites like 20X200 but I’m not sure how the artwork will look in my home and would like to see the piece in person before making the investment. TurningArt allows me to test out a price and buy it if it ends up being a fit.


Amazon Expands To Mysteries And Thrillers With Fifth Publishing Imprint, Thomas & Mercer

Amazon is launching its fifth publishing imprint today—a mystery and thriller focused vertical called Thomas & Mercer. This joins Amazon’s other imprints, including Amazon Encore, AmazonCrossing, The Domino Project, Montlake Romance.

Thomas & Mercer launches with four books that will be released in the fall via Kindle, print and audio formats: “Resuscitation” by D.M. Annechino, “Stirred” by J.A. Konrath and Blake Crouch, “The Immortalists” by Kyle Mills and “Already Gone” by John Rector.

Amazon says the expansion to this vertical made sense because mysteries and thriller are popular with its customers. The e-commerce giant started its publishing arm in 2009, giving Amazon greater control over producing original content for its readers.

AmazonEncore publishes works from emerging and new writers, AmazonCrossing translates foreign language works, TheDominoProject is a partnership with Seth Godin for publishing works relating to innovative ideas and Montlake Romance publishes romance novels.

Information provided by CrunchBase


Cognitive Match Secures $6 Million For Ad Targeting Technology

Cognitive Match has raised $6 million from new investor Antrak Capital and previous backer Dawn Capital. The round brings total funding raised by the company to over $10 million.

The funding announcement coincides with recent moves for Cognitive Match CEO Alex Kelleher and the company’s SVP of Global Sales, Mike Harris.

Both men recently relocated from London to New York to more efficiently attack the ultra-competitive North American market.

Cognitive Match, which offers in display ad and onsite predictive targeting solutions, also recently announced that it has hired Dave Burgess, formerly Chief Architect of Yahoo!’s Advertising Solutions, as their new CTO. More about the management team here.

Founded in 2009, Cognitive Match’s solutions are used by clients like Financial Times, AOL, Net-A-Porter, Steve Madden and JustGiving to maximize visitor engagement, conversion and revenue from their digital marketing activities.


Gilt Taste: A Pricey Online Marketplace For Artisanal Foods


Today, flash sales giant Gilt Groupe is launching its newest vertical—Gilt Taste, a marketplace for artisanal foods. By definition, artisan foods are ingredients and foods that are hand-crafted, created in small quantities, and tend to be high-quality products. Basically, these are not the type of ingredients you’ll find at your local Safeway.

Led by former Gourmet Magazine Editor and New York Times Restaurant critic Ruth Reichl, Gilt Taste is a site that aims to give consumers access to artisanal products and ingredients, many of which have only been available to professional chefs until now. But while there is an e-commerce component of the site, there is also a significant editorial presence, with recipes, background on each ingredient, where the ingredient comes from, and more. With its design and high-quality photography, the site feels sort of like a magazine.

Products in the site range from Black Winter Truffle Juice ($112), to Murray’s Paglierina Cheese ($24.95), to Primizie Jumbo White Asparagus ($36), and Flannery Beef Private Reserve Filet Mignon ($88 for 4 steaks). There’s no doubt you are paying a premium for these foods. For example, eight 6 oz. Alaskan Salmon fillets are $120, which is more than double the price of the Alaskan Salmon fillets I buy at my local Whole Foods. These prices don’t include shipping/delivery costs, which vary by product.

All of these items and recipes are being curated by professional chefs, photographers, filmmakers and tastemakers. If you can afford those prices and place a high value on using quality artisan foods that are used by professional chefs and restaurants, then Gilt Taste is for you. The company says that it will be including weekly specials on the site, but none were posted today. And certainly the element of luxury is part of Gilt’s brand, so the prices aren’t particularly surprising.

Gilt Taste isn’t the first company to offer a marketplace for artisanal goods. Competitors include Foodzie and Foodoro. And OneKingsLane offers artisanal foods within its flash sales site as well.

So will Gilt Taste be a success as a vertical? Gilt’s other independent vertical, travel site Jetsetter, has been a hit so the company does have the experience of being able to operate and grow a separate vertical. Another compelling part of Gilt Taste is that it combines editorial with commerce (which is something Gilt is also trying to do with its Home And Furniture vertical). In the stories section, you’ll find professionally written articles about food trends, recipes and more As a cook and food-lover, I miss Gourmet Magazine and I wonder if Gilt is aiming to fill this gap.

But the prices are high, and it’s unclear if I’m getting a discount on some of these artisinal. On Jetsetter (a site which I’ve used and am a fan of), it is very clear that the price per night at hotels is marked down significantly, sometimes by as much as 60 or 70 percent. It’s not really clear on Gilt Taste if I’m getting a deal on some of these artisan products.


Producteev Launches Google Tasks Sync And Outlook Plugin To Take Your Inbox To Zero

You may be tired of hearing about task managers, but Producteev is a task management service worth writing home about. Few people enjoy using complicated product, task or CRM managers, so Producteev has built a solution with a user-friendly interface that is channel agnostic, and even adds a bit of gaming mechanics. Producteev is a workable alternative to solutions like Basecamp, though the space will surely be keeping a close eye on Dustin Moskovitz’s Asana.

What makes Producteev such a great alternative (and for full disclosure, TechCrunch employs Producteev for managing conference-related tasks) is that it allows users to capture tasks, email-based action items, or schedule deadlines using your preferred communication channels as well as using its realtime-enabled backend to synchronize web apps, mobile apps, and desktop apps so that your information stays up to date — across platforms.

Producteev already connects to most of the communication tools you use on a regular basis, including IM services like Google Talk, AIM, Yahoo! Messenger, Twitter, and Facebook, so you aren’t forced into visiting a web application to save and manage tasks. Instead, you can open a custom message to a dedicated email address, or quickly check and manage important tasks straight from Gmail’s interface.

The startup’s goal is to turn your emails into actionable items and improve email-based workflow. Free for individuals and groups of two, Producteev connects to main communication channels and allows users to capture tasks and schedule deadlines from their preferred methods and devices. Tasks are easily added via email and IM, with modifications and notifications available remotely as well.

Today, Producteev is further expanding its compatibility by announcing its “Google Tasks Sync” and Microsoft Outlook plugin. Producteev’s Google Tasks Sync allows you to turn Gmail emails into tasks and provides 2-way synchronization, sync notes and deadlines in realtime, as well as adding collaboration, apps, and multiple project management features. Integration with Outlook, in turn, puts Outlook tasks in the cloud, so that tasks can be accessed from Producteev apps on mobile, desktop, and the Web. Users can turn emails into tasks with 1 click, sync labels between Outlook and Producteev, and sync the platform with your Outlook calendar.

“Most people’s tasks are buried in their inboxes, and, as a communication tool, your inbox doesn’t let you manage your next steps. Since recently launching our Google Apps Contextual Gadget, which turns emails to tasks in 1 click on Gmail for Google Apps, Producteev is now going one step further to help manage your inbox and working toward getting your Gmail and Outlook inboxes to zero”, says Producteev co-founder and CEO Ilan Abehassera.

While you can still manually enter tasks into Producteev, you can also just forward an email to the solution, using the subject line to tag it with a due date, and instead of using Gmail stars or writing reminders or keeping notes, forward the email to Producteev and wait until you need it.

Along with these awesome task management options, Producteev also uses built-in game mechanics designed to incentivize productivity with rewards like badges (a tip of the cap to Foursquare). If, on the other hand, you’re not into these rewards, you can opt out. It’s these kinds of added features that allows Producteev to stand out in a somewhat crowded field.

Google Tasks Sync and Outlook Plugin are free and are available starting today. For information about Google Tasks Sync and the Outlook Plugin, check out the landing page here, or watch the Google Tasks video below.

Information provided by CrunchBase


Zaarly Launches Realtime, Local Marketplace To The Public

Backed by an impressive list of investors, Zaarly, a web and mobile service that connects buyers and sellers in a localized market place, is launching to the public today.

As we’ve written in the past, Zaarly is a mobile-centric reverse Craigslist service. Here’s how Zarrly works. On the site or via the startup’s mobile apps, you post what you’re looking for (i.e. cupcakes), how much you’re willing to pay for it and how soon you need it. Zaarly will then share your request in the local community through the platform, and also allows you also post your request to Twitter and Facebook.

People or businesses nearby can access and see your request and then anonymously message each other to complete the transaction of delivering the cupcakes you want. Sellers bid for the tasks, and the buyer chooses the best one, with Zaarly connecting the two via an anonymous Twilio-powered phone number. You can use cash or Zaarly’s integrated credit card payment system to pay for the transaction.

One of the compelling parts of Zaarly is that it is mobile centric. The company offers a rich HTML5 mobile app, and has launched a free iPhone app. Zaarly also offers a Facebook app as well.

And Zaarly has pretty incredible story for a fledgling startup. The company’s founding team of Bo Fishback, Eric Koester and Ian Hunter conceived of and built the prototype for Zaarly in February 2011 at Startup Weekend Los Angeles. The company won this competition, raised funding from an all-star list of angels and investors, and then debuted a test run at SXSW in March, where Zaarly processed over $10,000 in transactions in less than 48 hours.

Zaarly’s investors include include Ashton Kutcher, Felicis Ventures, Paul Buchheit, Bill Lee, Naval Ravikant and Lightbank.

Information provided by CrunchBase


Former Nokia CFO Rick Simonson Lands At Rearden Commerce

E-commerce platform company Rearden Commerce has appointed former Nokia CFO Rick Simonson as its new chief financial officer and president of business operations. Simonson is known for serving as Nokia’s CFO for six years before taking over leadership of the company’s Mobile Phones business in November 2009 – and for quitting less than six months after his appointment.

Simonson is also the man who declared in January 2010, shortly after taking over the reins of Nokia’s – obviously key – mobile phones business, that Nokia would be “at par with Apple and RIM in smartphones” by 2011. Yeah, but no.


Let’s Get Small: HP’s Tiny WebOS Smartphone

The Veer is ridiculously small. Almost Zoolander ridiculously small.

When you first grip the thing in your hand and try out the keyboard, you think, “Oh man, this is never going to work.” But after a few initial typos, it’s actually not that bad at all.

At 3.25 inches long, the Veer is tiny, stealthy and unassuming. It’s so small, it’ll even fit in the coin pocket of your jeans. The back of the black model has a rubberized texture that keeps your brain from mistaking it for a large, smooth pebble.

The 2.6-inch touchscreen is minuscule compared to giant 4.3-inch stunners like that of the HTC ThunderBolt. But as long as you’re not dead set on streaming a lot of movies or TV onto your device, it’s just large enough to do most anything else.

The phone’s screen-sliding mechanism feels solid, but it is still easy enough to operate with one hand or one thumb. And although the super-small keyboard takes a bit of practice — and a lot of trust, because your thumb covers up half the keyboard — I was surprised at how often I was able to compose typo-free messages and e-mails on the raised keys.

Palm’s webOS really shines on a device with such a small form factor. Instead of the standard menu screens seen on other smartphones, webOS uses an array of cards that can be accessed with a single tap on the gesture pad, located right under the display. Opening a new instance of an application creates a new card. A swipe upward removes the card from the deck, otherwise it’s there waiting for you when you want to return to it. Related cards (like multiple Facebook pages, for example) stack on top of one another.

Unfortunately, the implementation suffers from a few unpleasant hiccups. Finger flicks need to be deliberate, or they won’t be registered by the device. While scrolling through the photo roll, images take a second to deblur. App loading occasionally stutters, and sometimes freezes — I found this particularly true when loading the web browser. Since games and apps functioned perfectly fine once opened, this seemed like more of a software issue than a problem with the Veer’s 800 MHz Snapdragon processor.

The HP Veer comes with a couple useful features baked in: integrated messaging and Just Type, which is standard to all webOS devices. Integrated messaging allows conversations with the same contact on different services, for instance, on Google Chat and SMS, to be synced up and displayed in the same timeline, providing a seamless record of your chats. And if you don’t feel like flipping through your cards or scrolling through your apps, you can use Just Type to begin typing an app name or search item, and the phone will bring it up for you.

The Veer can act as a Wi-Fi hotspot for up to five wireless devices on AT&T’s HSPA+ 4G network. It also takes decent photos with its 5-megapixel camera — as long as there’s not excessive sunlight, which made my shots look overexposed and washed out.

The HP Veer is a pretty great phone, despite its diminutive appearance. Wired’s first impressions of the device were spot on: This would make a great phone for a teenager or anyone who wants to stay connected, but doesn’t need a large, super-crisp display for video playback.

WIRED Fantastically small form factor fits comfortably in almost any pocket. Magsafe-style charger — why isn’t this standard on all phones yet?

TIRED If the box didn’t say 4G on it, I never would have guessed. Palm’s app store has a woefully dismal selection — only the biggest names are there. The battery is non-removable.

Photos: Jim Merithew/Wired.com

Initial Thoughts On The Samsung Series 5 Chromebook

Google has finally made good on their promise to deliver Chrome OS to the world this summer. Or they will, on June 15 when the first Chromebooks are available. Considering that I’m potentially the perfect type of user for such a machine — that is, nearly everything I do these days is in the browser — I’ve been very interested in the OS/product development. Last week, I got my hands on one of the first models for a bit, and I thought I’d post some initial thoughts.

Following the formal unveiling on day two of Google I/O, Samsung and Google held a joint event to further show off the hardware to a group of journalists and give us some hands-on time with one of the first Chromebooks, the Samsung Series 5. I got to play with one for about 20 minutes. And while this is far from a full review, my initial impression is that it’s good. Really good. Especially for a first crack at a product.

(I should note that the unit I tried had a beta build of Chrome OS and not the final, stable version which should be released right before June 15, Google says.)

Of course, these Chromebooks aren’t truly the first crack at the product. That was the Cr-48, a barebones notebook that Google sent to developers who signed up for a pilot program late last year. That product, quite frankly, was not very good. It had hands-down the worst trackpad I had ever used on a computing device. This improved over time (with driver updates in the OS), but the machine was still far too slow to replace a regular notebook (or even most tablets).

The Samsung Series 5 is much better.

First of all, the Samsung device seems far faster than the Cr-48. That’s a bit surprising since the specs aren’t all that different except for the fact that the Series 5 has a dual-core Intel Atom chip as opposed to the single-core one that the Cr-48 has. The RAM, SSD, etc, are the same. So apparently the chip does make the big difference.

With the Cr-48, I would continually be frustrated by the speed (or lack of speed) at which I could open new tabs. Series 5 didn’t have those issues when I tried it out. This led to a feeling much closer to using Chrome (the browser) on a Mac or PC. That is to say, fast.

Flash playback had also been a big problem with the Cr-48. On Series 5, Flash seems to work pretty well — even in HD on sites like YouTube and Hulu. Well, 720p anyway. 1080p produced quite a bit of lag, and yes, some serious undercarriage heat.

As for the trackpad, it’s also much improved. It’s not nice as nice as the glass MacBook trackpad, but it is able to track where you finger is moving in realtime (which the Cr-48 could not always do). It still feels a little cheap, but it works more or less as expected.

But the initial thing you’ll notice about the Samsung Series 5 is what a good first impression it makes. That’s because the thing starts up nearly instantaneously. Google is claiming an 8-second boot, I think it might be ever faster.  Compare that to a Mac or PC which often takes several times as long (though the Macs with new SSDs are very fast as well).

Even better is that when you hit the login screen and enter your Google credentials (assuming you have them, of course), everything in synced within seconds. That means your bookmarks, passwords, and even extensions/apps hop over to the new machine seamlessly through the air. This experience was actually one of the cooler things I’ve seen in a while. Such integration will probably give a regular user that “magical” type feeling.

Also magical is the battery life. Obviously, I didn’t get a chance to fully test it out, but if the Cr-48 is any indication, the 8.5 hour stated life may be an underestimate. I wouldn’t be shocked if these things did 10 hours of continuous usages fairly easily.

The form-factor does leave a bit to be desired. Perhaps I’m spoiled by the MacBook Air, but the Series 5 feels very plastic-y and many of the ports/joints look a bit cheap and tacked-on. At 3 and a quarter pounds, it’s also heavier than the Air (both models).

Of course, that’s not really a fair comparison when the cheapest Air costs $1,000. The Series 5 will cost just $429 or $499 depending on if you get WiFi-only or WiFi/3G. (And the weight/build quality is quite a bit better than the Cr-48, so again, it’s hard to complain.)

And let’s talk about the price, because that will be very important. While the Samsung models (and the even cheaper Acer model) easily beat any Mac laptop in price, they are in line with several PC notebooks already on the market. And because these Chromebooks are stripped of many of the features people typically look for when PC shopping, it will be interesting to see how these stack up on bestbuy.com and amazon.com (where they’ll initially be sold).

Getting below the $500 threshold was crucial, but they may need models half that price if they really want them to move against cheap PC notebooks. (The monthly subscription pricing you probably read about is just meant for the education and enterprise markets.)

The sub-$500 price was aslo critical to get below the iPad. At least at first, consumers are likely going to look at Chromebooks as cheap, secondary machines, and not full-on computer replacements. Fair or not, that will run head-first into the iPad market as well. So again, the cheaper Google can make these things, the better.

The truth is that, based on my initial impression, Chromebooks are likely to be good enough to replace a full-on computer for many users. There will be reluctance at first to accept this idea simply because change is hard. But if Google can break the Windows mindset  — something that will be much easier said than done — you should see users start to move over.

Make no mistake, Chromebooks are a direct attack on Microsoft. Thanks to Chrome, Google Search, Gmail, etc, Google has all the data they need to know that people spend the vast majority of their time on computers these days in the web browser. So why not just cut out the middle man? Microsoft.

These initial Chromebooks are just act one of this melodrama. But it looks to be a pretty good act one.


@J_Pinet Tweets IMF Chief’s Arrest Before US Media And Gets Accused Of Conspiracy

“a friend in the US just told me that #DSK was arrested by the police in a NYC hotel one hour ago.”

It was the middle of the night in Paris when the news broke that Dominique Strauss-Kahn, the Chief of the IMF, had been pulled off an Air France flight and arrested for sexual assault. Coincidentally, he was also set to announce his candidacy for the 2012 French presidential elections next month – and could therefore become one of the strongest opponents of President Sarkozy. But now it looks like the Parti Socialiste may have to nominate someone else…


Single? Married? It’s Complicated? Wear Your Relationship Status With Buump

Facebook may have over 600 million users but there’s still one problem: all the info is online!  How on earth are you supposed to know if that cutie you just met is single or married without access to his or her profile?! Ok, yes, you could just ask – but that’s not very tactful now, is it? So, rather than having to muster up any courage and attack the subject head on, we could all just wear our relationship status and make it easier for everyone. At least, that’s what Buump thinks we should do.

The company sells colorful plastic bracelets featuring the 5-different relationship status options in English for €5.99. There is also an additional pack with the 5 “looking for” options sold for the same price. And you can buy all 10 bracelets for €10.99 (the site also lets you buy in bulk and customize your own bracelets for orders of 1,000 or more).


The Chilling Story of Genius in a Land of Chronic Unemployment

Ever since he could remember, Ibrahim Boakye had a knack for understanding how things worked. There were things he could just do that no other kids– let alone adults– could understand. By the time he was five-years-old everyone had stopped questioning it, and neighbors were calling on him to fix their broken toasters, irons, or anything that was the least bit mechanical.

By his early teens, he was getting things out of the dump and fixing them for fun. Soon after that, he was teaching himself to code. He’s made an outsized living no one in his family could have anticipated by outsmarting other people on computers ever since. It’s never been about money or even in those early days about doing good deeds around the neighborhood. He gets an intoxicating rush from solving the hardest technical problem he can find and from knowing that he’s the best.

As I sat in a hotel lobby in Lagos listening to his story, I couldn’t help being reminded of Max Levchin of PayPal and Slide fame. Levchin grew up in Soviet Russia and had the same knack, that same innate ability to understand how machines worked. He learned to code on whatever he could find– calculators, pen and paper, old Soviet microcomputers. When his family moved to America, he rebuilt things he found in dumpsters too. Watching the nightly news on a old black-and-white TV helped teach him English.

For Levchin, it was also about the thrill. He once got in trouble with the FBI for cracking video game codes for a Chicago crime boss. He didn’t really think about the fact that he was doing something illegal, he just loved the challenge. And like Boakye, he’s made an outsized living no one in his family could have anticipated by outsmarting other people on computers ever since. His rush also comes from solving the hardest technical problem he can find, and from knowing that he is the best.

But there’s a big difference between the two. Levchin immigrated to the US at 16, went to University of Illinois and was inspired by the example of Marc Andreessen. He moved to Silicon Valley at the best possible time for an aggressive, insanely-competitive coder to move to Silicon Valley. A company as complex and lasting as PayPal was hardly all luck and timing, but Levchin took advantage of being in the right place at the right time and meeting the right people, most notably PayPal co-founder Peter Thiel.

By contrast, Boakye grew up in a poor section of Lagos. In a way, his timing was also serendipitous: The Internet’s emergence in Nigeria breathed new life into an old national scam: The 419 letter. And a new generation was making hay out of the naiveté of millions of new Internet users. For Nigeria’s massive unemployed population– some fifty million people today– this was every bit the gold rush that Silicon Valley was in the 1990s. And the “entrepreneurs” concocting these schemes late night after the doors were locked in Nigeria’s Internet cafes needed a brilliant coder who was more motivated the bigger the challenge. Boakye was one of the best in the country.

Like Levchin, he took advantage of being in the right place at the right time and having the right skills. Only most would say he met the wrong kind of people. At his peak he was making as much as $50,000 per day as a freelancer hacking into bank systems, stealing social security numbers and credit cards, and exposing the Web’s deepest vulnerabilities for Nigeria’s “Yahoo boys,” called that because they were known for using Yahoo email addresses.

Boakye has since left the life of crime, he says. We met my last day in Lagos; one of nearly a dozen interviews I did with current and reformed Yahoo boys in Nigeria. I won’t detail how I got the meetings, because of the elaborate personal assurances of safety. I’ve taken pains to disguise any details about the man whose name is obviously not really Ibrahim Boakye. Appropriately, I got that name off the most recent 419 email I found in my spam folder. Some of the juiciest parts of the accounts I won’t detail here, lest it put the people who personally vouched for me at risk.

Finding Yahoo boys to talk to me was near-impossible; a big change from a few years ago. The 419 scammers used to be the rockstars of Nigeria’s underground world. “Girls wanted to date us because we were smart,” one told me. “We could get money out of white men using only our brains and a computer.” There was also the justification that this was some how a revenge for colonialism; when white men took Africa’s natural resources without consent. And– as is the case with every black market– there was the lure of all that cash. Skills were flaunted in cafes, whole organizations were built out, and even rap songs were written glorifying 419.

It’s much harder to make money today. That’s mostly because Internet companies have made it harder, through restricting mass emails and educating people not to purchase any goods from Nigeria. Most ecommerce sites block Nigerian ISPs. And consumers have gotten smarter, too, the Yahoo boys say. The Nigerian government has also made greater efforts to crack down, under International pressure and pressure from the country’s legitimate tech entrepreneurs who are furious at the Yahoo boys for globally sullying the country’s reputation. The people still doing it have been driven underground, forced to keep a low profile. They don’t talk about what they do even with friends. They can’t trust anyone. One current scammer told me he couldn’t invite friends over because of the noticeable stench in his bedroom from all the stacks of money stashed under his bed.

For most of the day, I sat transfixed listening to their stories. Of course it was impossible to know whether they were telling the truth about everything. But so many of the individual stories corresponded to one another, and the complex systems of scamming were too elaborate to have been made up on the spot. Each boy would start telling his stories shyly, but once he got going he couldn’t help but boast about his methods. Sometimes the hardest thing about committing the perfect crime can be keeping your genius to yourself.

Boakye’s sheer hacker genius was the most astounding. It’s not just technical ability– he tries to figure out how the person who set up the security system he’s trying to break thinks, and outsmart him at his own game. If he can’t crack the software, he studies the hardware and learns its vulnerabilities.

The way he described the chess match with this unknown nemesis reminded me of another entrepreneur in the Valley: Dennis Fong. Fong spent his teens as a professional gamer, better known by the name “Thresh.” He rarely lost thanks to an uncanny ability to anticipate opponents’ moves. Opponents called it “Thresh ESP,” and it earned him six-figure computing endorsement deals. The way Boakye explained how he breaks into multi-national banks was identical to Thresh’s approach. I wouldn’t be surprised if he’s hacked into at least one of my accounts by now just out of curiosity. I asked him not to do anything malicious, and he promised he wouldn’t. But we were both pretty convinced he could.

As a person, I found these meeting more terrifying than my run in with Bones and his machete men in Alaba. As a business reporter, I couldn’t stop the broad smile from spreading across my face as we spoke, even breaking out in laughter once or twice. It’s the same Cheshire cat grin I get when I meet any amazing entrepreneur, anywhere in the world. You know them after five minutes of conversation. And several of these guys just had it. Born into a different circumstance, they could be on the cover of any magazine, ringing the opening bell at the Nasdaq.

This is the darkside of what we know in Silicon Valley: That great entrepreneurs can come from anywhere in the world. Sometimes some of the best technical minds fall into a life of crime. And just like corporate giants can’t keep a hot startup from disrupting them; law enforcement can’t keep people like Boakye from accessing your information.

There weren’t just stunning personality comparisons between someone like Boakye and Fong or Levchin, there were stunning industry comparisons. Like entrepreneurs in the Valley, the industry has evolved to the point where few of them need to be hard-core techies. Today, the Nigerians focus on user experience– put a less euphemistic way, their job is to find the mark and rope him or her in. Any hardcore hacking work is outsourced to Vietnam, India or elsewhere– particularly now that Boakye has retired from crime. One Yahoo boy told me he met his Vietnamese partner online when he tried to scam him. The man wrote back, “I’m not going to fall for this, but I know what you are doing and I can help you.” The world is flat for criminals too.

Don’t let the clunky syntax on these emails fool you. The Yahoo boys I met are masters of human manipulation. The latest scam revolves around online dating. Yahoo boys find a lonely man– sometimes a single man who wants a mail-order bride; sometimes a married one with kids who wants an escape on the side. They key with 419 scams is always finding someone who wants a easy shortcut in money or love. An elaborate relationship over IM begins. One boy I met excelled at these. He says he just closes his eyes and pretends it’s a woman on the other end he’s seducing. He uses carefully constructed porn clips for video chats; other scammers hire actresses to portray the fictional girls.

This Yahoo boy carries on five to seven relationships at once, playing the dutiful girlfriend to each– down to helping them pick out their clothes for work everyday. When one suitor lost a job, he used the Web to help find him an interview and pumped up his confidence to apply. He gave him several months to get back on his feet before asking for more cash. One time, he even sent the mark cash, to show how much he — or “she”– cared. “I take care of them,” he says. “They are the people who feed me.”

He helps build them up; he listens to their problems. He makes them feel loved. He calls each an innocuous pet name, lest he accidentally type the wrong message into the wrong chat window. He asks for a little bit of money here and there, until men are sending him steady amounts from each paycheck. He says it takes exactly one month for a man to fall in love with him, and once he has a man’s heart, no woman can take it.

This isn’t a short con, this is a long term game of constant maintenance. He creates fictional Web pages to back up the fictional girl’s story, so if the man Google’s her, he finds seemingly legitimate confirmation. When he goes to church, he tells them “she’s” going to church. When he makes dinner he tells them “she’s” making dinner. He’s less a 419 scammer, and more a long-distance emotional prostitute, providing a service men appear to be happy to pay for. Like any great entrepreneur, this Yahoo boy knows his customer. “if you get their heart, you have control,” he says. “You white people have very flexible hearts. We’ve seen it. That’s why there can be no true love in Nigeria. Your closest friends rip you off here.” He continued, “I wish I could stop. I’m not into the black man power like some people. I don’t want to make someone sell their house; I don’t want to take everything. I just can’t find a job. If I had a junior brother I wouldn’t teach him. You get addicted to it.”

Just like you have people in the Valley looking to flip products and those in it for the long haul; in the 419 world you have kids who try it out for easy money, and those who commit to it. To be successful today you have to work as many hours as a Valley Internet entrepreneur and have just as long term of a focus. There’s just as much creative problem solving involved; this is something you can’t really teach. A lot of these Yahoo boys told me they’ve tried to take on apprentices, but few of them last. It’s not the glamorous, quick-money world it used to be. Today being a scammer takes smarts and stamina.

Nigeria is undoubtably one of the juiciest markets in the emerging world, and by many accounts the juiciest in all of Africa. And legitimate tech entrepreneurs will be understandably upset about Western reporters fixating on the 419 world. But if they want to stay in Nigeria, they’ll have to get used to it. These kids, the circumstances that created them, and the lasting impact of the damage they’ve done to people aren’t issues the country can shrug off no matter how much it would like to. “We use our brains to get what we want. For us it’s the only way to live and survive,” one boy said. “As long as technology keeps advancing, there is no way to stop us.”

It’s Nigeria’s central issue that it will have to face, own up to, and tackle if the country is going to play a greater role in the global economy. Ignoring it is like ignoring China’s lack of political freedom; India’s deep poverty and infrastructure problems; or the civil war going on in Brazil’s favelas between drug lords and the frequently corrupt policemen cracking down on them. The reason Westerners tend to fixate on these issues isn’t because we’re opting for easy stereotypes. It’s because they are each huge problems without easy solutions. Problems that have to be faced. And you face them by talking to the real people behind them, not by sweeping them under a rug, assuming they’re all two-dimensional villains or dismissing them as a made up stereotype.

One of the active scammers I spoke with is supporting his whole family, including several siblings he is putting through university, so they have a chance at a better life. But one of them has been out of school for years, and still can’t find a job. It’s not a ringing endorsement to go legit. This guy doesn’t feel great about what he does, but he says he has no other option. He goes to church several times a week, where he wrestles with it. He tells himself he is on God’s path, and he has faith it ends with him leaving this life behind.

He’s describing the hope of anyone who is touched by the genius and the opportunity in Nigeria, as I was during my trip. That this stunning raw talent can find a way to stop relying on bilking Westerners out of cash and start using their wily genius to create local jobs.


Honeycomb Has A Fighting Chance Against The iPad


If you’d asked me a week ago what I thought about Honeycomb, the tablet version of Android, I would have said that it was in very bad shape and that it would be several months before it could even hold a candle to the iPad 2. Because despite my excitement to see Android take on Apple’s ridiculously successful iPad, my experience with the Motorola Xoom — the first Honeycomb tablet — has been decidedly poor.

From day one things were off to a bad start. At first, Android Market would crash literally every time I opened it. The Android team fixed that pretty quickly, but the OS was still riddled with weird bugs: swiping between home screens is laggy, widgets go blank and need to refresh, and there are myriad other glitches that pop up at random. And even beyond the bugs, there are weird quirks in the OS that feel poorly thought out (seriously, why does the ‘Home’ button look like an Up arrow?). But now I’ve had some time to test out the Samsung Galaxy Tab 10.1,  the new tablet that was given to Google I/O attendees and will be available in stores beginning June 8. And after spending the last couple of days using it around my apartment, I’m much more optimistic. In fact, I’m guessing this device is going to do very well, and that it foreshadows a bright future ahead for Honeycomb.

For those that haven’t been following along, there have been plenty of reports suggesting that the Xoom has seen meager sales. Yes, there have been other Honeycomb devices released, but the Xoom was first to market and it had the most pre-launch hype, so it’s no surprise that people are using it gauge Honeycomb’s initial reception. Which hasn’t been great. For example, Mike McCue, the CEO Flipboard, has said that the company won’t be porting its nifty application to Android any time soon because the iPad will continue to own the tablet market through the rest of the year.

But I’m becoming increasingly convinced that my issues and the tepid response to the Xoom have more to do with the hardware than Honeycomb itself, because I’m enjoying my time with the Galaxy Tab much more. I’m not going to do a detailed run-through of the hardware specs (which aren’t my forte), but there are some differences that are immediately apparent between the two.

The Motorola Xoom weighs 1.6 pounds. It has a rubberized back that feels sturdy, but it meets the screen at a fairly sharp edge that doesn’t feel great in your hand. The new Galaxy Tab weighs 1.24 pounds. It has a rounded plastic exterior that feels cheaper, but also feels much more natural in your palm. The difference in weight between the two is no more than a hefty hamburger — and yet it makes all the difference.

Holding the Xoom with one hand isn’t difficult in the slightest, but it isn’t effortless either. You’re bound to feel some muscle strain if you do it for a long time, and if you balance it against your lap (or your stomach if you’re lying down), you’re not going to forget it’s there. The Galaxy Tab feels far more natural. It doesn’t weigh down on you nearly as much, and, as you hold it in your hand, its smooth edges feel more like the coveted iPad 2 (in fact, it’s actually slightly lighter than Apple’s device). These differences sound petty, but given that your interaction with a tablet is inherently physical, they’re important.

Don’t get me wrong: Honeycomb 3.0 on the Galaxy Tab is still buggy as hell. Sometimes I feel like the browser is a game — tap the wrong thing, and you’ll suddenly jump to the bottom of a webpage, or all animations will get sluggish. Even the 3.1 update, which I just tried out on my Xoom and will be available for the Galaxy Tab in a few weeks, doesn’t seem to have fixed all the performance kinks. And Android Market still appears to have fewer than 100 applications optimized for the tablet form factor.

But I think that will change soon. All of the Google I/O attendees (most of whom are developers) obviously now have the tablet, which will probably help give the OS some momentum. And, perhaps more importantly, I think this new wave of better, lighter Android tablets will spur people to actually buy them, so developers will have a bigger incentive to optimize their apps for the tablet.

iPad sales won’t suffer in the slightest (it is still much more polished and intuitive than Honeycomb, and probably always will be). But, just as we saw with Android on mobile phones, I’m guessing Honeycomb’s growth is going to start rapidly accelerating around one month from now. The Market will get fleshed out over the summer, and then things will really get going this fall as even better tablets land in time for the holiday season. In retrospect it will all seem obvious (of course the multitude of available Android tablets will give rise to a large customer base). But I don’t think anyone who has compared the Xoom to an iPad 2 would have called the rise of Honeycomb a given.

Of course, that’s all assuming they fix the damn bugs.