Drunken Tweets To Plummet Tomorrow Night As Twitter Will Be Down

Tomorrow night, July 31, Twitter has announced they are having some planned downtime. Beginning at 11 PM PT, Twitter will likely be down on and off for up to 5 hours, Twitter warns.

The reason for the downtime? NTT America, Twitter’s hosting provider is upgrading a part of the internal network. This is interesting because Twitter is in the process of opening their own data center in Utah later this year. Despite the new tweet digs, they’ve said they’ll keep working with NTT America, so this maintenance is clearly necessary.

If you see the picture above tomorrow night, you’ll know what’s up. There will be a link on it to the Status Blog where you can get status updates on the work.

Information provided by CrunchBase


Rule Your Work Productivity With RULE.fm

It’s takes a certain type of person to get excited about a work productivity tool. Mark Nielsen and Patrick Carmitchel, unsatisfied with 37Signals‘ Basecamp, have decided to disrupt the productivity software industry (see their incredibly twee video above).

Says Nielsen “We decided we’d rather not see the light of day for awhile than have to live with knowing that with just a little bit of creative, a pinch of logic and a dash of sexy, we could revive the productivity software world with a tool that would even make Apple cry.”

Previously unknown to the blogosphere, Nielsen and Carmitchel emailed us at 2am last night and emphasized that they were out for 37Signals’ blood (we’ll get more into why we actually listened in a later post). When reminded that the formidable former Facebook co-founder Dustin Moskovitz was also in the collaboration tool space, joining the likes of Salesforce, Zoho, and Atlassian with his stealth startup Asana, they replied “We’d like to see how [Dustin Moskovitz’s] deep pockets stand up against moxie and energy.”

The RULE.fm product itself looks like what would happen if Apple got serious about productivity software, with much emphasis on design aesthetics.  Right now its basic function is a ramped up contact list manager with real time updates from your contacts pushed to you, a Yammer-like discussion area, a place for tasks, and a communal file sharing functionality. Nielsen describes it as  “a place to know and understand everything that’s going on with in your organization” and hopes the company will eventually expand into wikis, customer retention management and accounting tools.

For those curious, the tour is live on the RULE.fm site right now, and the platform itself will go live on Tuesday August 3rd, making the productivity software industry just a little bit more badass.


Information provided by CrunchBase


InMobi Wants The World With Its Mobile Ads, Not Just The U.S.

Today at our Social Currency CrunchUp in Palo Alto, CA, James Lamberti, VP of Global Research and Marketing for InMobi, sat down with our Michael Arrington to tell us a bit about mobile advertising.

InMobi is the largest independent mobile ad network in the world. Overall, they’re number two behind Google’s AdMob. That earned them an $8 million investment from Kleiner Perkins and Sherpalo Ventures a couple weeks ago. But what’s particularly interesting about InMobi is how well they’re doing outside the U.S.

Out of inMobi’s 16.9 billion mobile ad impressions globally, 2.6 billion are in Africa, more than the US’s 2 billion. 10 billion are in Asia, no surprise considering inMobi was founded in India and had more time to develop reach, while Europe follows Africa with 1.6 billion and the Middle East .5 billion. InMobi’s mobile eCPM development is highest in Europe at 29%, with North American coming in a close second at 24%.

When inMobi’s development rankings, are stack ranked by country, Australia comes in first due to its high adoption of the iPhone and Malaysia performs at number two. Not surprisingly the iPhone platform dominates inMobi’s marketshare the US, being responsible for 38.2% of all mobile ad impressions. Globally Nokia trumps other platforms serving inMobi ads, at 22.2% of the market.

Lamberti says that InMobi’s biggest growth markets are in the US, Japan, and South America and the US, partially because of the benefits from Google Ad Mob changes on the iPhone. While 60% of all mobile iPhone impressions are still in the US, inMobi is now poised to to monetize the 40% that aren’t.

Video and slides from their presentation below.


Google: There Have To Be Yelps In The World, But…

Today during our Social Currency CrunchUp, Yelp CEO Jeremy Stoppelman and John Hanke, a Google VP of Product Management, took the stage. Given that the two companies seem to be at odds with one another recently (following a failed acquisition), it was a little tense.

Specifically, Google’s strong moves into local with their new Places push seem to be going right at Yelp’s core. Sure’s it’s potentially about more than just local venue reviews, but that’s a huge part of it. And that’s what Yelp is all about.

Moreover, Google is using Yelp data to bulk up their Places offering. Yelp can’t like that too much. In fact, we’ve heard they’re particularly unhappy because they used to have a deal with Google for this data, but they pulled out of that deal a couple years ago. But Google decided to use Yelp’s data anyway simply by crawling it. Yelp can’t stop them from doing that unless they want to delist themselves from Google — a move which could kill them.

On stage, Stoppelman acknowledged that Yelp used to have such a deal with Google. When moderator Erick Schonfeld asked if Google was now getting that data by crawling the pages, Hanke responded with “Look…” This drew some laughs from the audience.

But Hanke continued by saying that “there have to be Yelps in the world.” What he means is that Google needs these type of services to be able to point users to them. Of course, Stoppelman argues that while Google used to point users to services like his, they’re moving towards showing that data on their own pages. He believes that Google no longer likes sending large amounts of data to huge sites.

Hanke said that statement wasn’t fair. “We look at what people want,” he said. Google is trying to understand Places better — if Yelp has the best content, we’ll show that, he said. He asked if Google knows what information a user is trying to get at, shouldn’t they show it? “Should we pretend we don’t know what they’re really looking for?“

Stoppelman’s said he understands that argument but believes that if Yelp does have the best content, Google should give people a way to get there as fast as possible.

Basically, agree to disagree.

When Schonfeld asked about the failed acquisition, Stoppelman coyly noted “It’s complicated.” The audience liked that. He caught himself though, “…whatever may have happened.“

Hanke acknowledged the tension between the two companies. But again, he said it’s all about doing what’s best for the users.

Yeah, expect that tension to continue.

Information provided by CrunchBase


Before There Can Be An IPO, First Comes A New CFO For Zynga

Social gaming company Zynga is growing at a rapid clip. More importantly, their revenue is growing at a rapid clip. And they need a big gun to handle that. They believe they’ve just got him: Dave Wehner, formerly a managing director at Allen & Company LLC.

Wehner is stepping in for current CFO Mark Vranesh, who is becoming chief accountant of Zynga. While they obviously won’t say it, it should be fairly clear what this shuffling is all about: it’s not CFO, it’s another three-letter acronym, IPO. While Zynga is still undoubtedly a ways away from such a move, they have to get their finances in order now. Especially since they’re growing so quickly.

At Allen & Co. Wehner was in charge of a number of key investments, including Pandora, Quantcast, and StubHub. He led the corporate finance teams responsible for capital raises and M&A in Silicon Valley.

This move follows moves by LinkedIn, who is also position itself for an IPO run. Interestingly enough, it was just reported that a Facebook IPO was just pushed from a possible 2011 timeframe, to 2012 — well, probably.

Facebook is obviously a key to Zynga, as most of their users come from the giant social network. But a new investment by Google in Zynga points to the search giant getting into the social gaming realm as well.


Like Facebook, Twitter Starts Using Algorithms To Bulk Up Social Graph

Last month, we noted that Twitter was testing a “You both follow” feature, showing users you and another user both follow. That’s interesting, but not particularly useful. Today, they’ve begun to roll out a new “Suggestions for You” feature which looks at who you follow, and who the people you follow follow, and suggests new people for you to follow. Yes, just like Facebook does. This is very useful.

In fact, this is arguably the most useful social graph feature that Twitter has rolled out yet. A few weeks ago, Twitter rolled out a new name results area for search — which was incredibly helpful for finding celebrities or brands on Twitter. But this is better. This is all about finding people you may actually be interested in based on your current social graph, but for whatever reason, haven’t connected with yet.

Such a feature would be less interesting if it were only tucked away in the “Find People” area of the site. But Twitter is actually going to put it front and center too. When you click on other users’ profiles, you’ll see a “Who to follow” area in their profile space to show similar users that you might be interested in. And when you follow someone, you’ll get other suggestions based on that follow as well.

In terms of how they determine these suggestions, Twitter says:

The algorithms in this feature, built by our user relevance team, suggest people you don’t currently follow that you may find interesting. The suggestions are based on several factors, including people you follow and the people they follow.

[thanks Tyler]


Prediction: The RIM BlackPad Will Crash And Burn Just Like The Storm

Sorry, BlackBerry fanboys, the BlackPad — or whatever it will be called — is going to flop in a monumental way. Remember how RIM’s last iDevice clone, the Storm, failed in such a public way? Yep, it’s going to happen all over again. RIM has no business making a consumer tablet.

We all need to give major props to Research In Motion. They were really the first major player to make smartphones relevant by offering a nearly-bulletproof mobile emailing system to business. Eventually RIM started making consumer-orientated email devices that worked with personal email accounts. RIM really showed the world that you need email while you were away from your desk.

But that’s where their claim to fame stops. Don’t misunderstand the Canadian company’s importance in consumer electronics’ history. RIM ranks up there with the best of them, but unless the so-called BlackPad is targeted solely at businesses and enterprise users — and all signs suggest otherwise — the BlackPad will fail.


PlacePop Looks To Give Any Business Its Own Rewards Program, Raises $1.4M

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It’s no secret that loyalty programs — like those hole-punch cards that give you a free Slurpee every ten visits — are a great, cheap way to keep customers coming back to your business. Thing is, running these programs isn’t always as easy as it seems, especially if a business wants to do something more complex than the basic “buy ten get one free”. PlacePop is a new startup looking to make these loyalty programs accessible to any business: the startup has built a self-serve platform based around its new iPhone application which companies can use to distribute virtual, custom-branded loyalty cards.

Today, the company is launching at our Social Currency CrunchUp, and it’s also announcing that it has closed a $1.4 million round of funding.  Participants in the round include Affinity Labs Founder Chris Michel, Bebo Founder Michael Birch, and James Currier and Stan Chudnovsky, both of whom cofounded Ooga Labs.

At a high level, PlacePop is pretty simple for the end-user: you fire up the iPhone app, swipe until you find the appropriate virtual rewards card, and “check-in” at the venue you’re visiting. And the startup says that a business can get its loyalty program up and running in five minutes.

PlacePop isn’t the first startup to try to tackle rewards, and it faces the same chicken-and-egg issue that its competitors have: you need businesses to actually offer rewards to get users hooked, and businesses aren’t going to bother if the service doesn’t have any users to begin with. PlacePop is taking a few steps to deal with this (and help differentiate the startup): first, it offers a number of other social features, like sharing photos of the places you’re checking into so the app has some utility regardless of if a business is offering a deal or reward. And second, it’s letting you earning rewards points toward venue on Earth, even before a business joins PlacePop.

That may sound a little counter-intuitive, but PlacePop is hoping that it will lead to a sort of community-led guerrilla campaign where users urge their favorite businesses to join PlacePop. CEO Kent Lindstrom explains that users can start checking-in at their favorite restaurants and other venues, and when venue owners visit PlacePop and see that they already have traction on the service, they can “claim” their profile.  I’m not entirely convinced this will work (it’s going to get tough to convince users to check in based on the possibility that a venue may one day start offering rewards), but it’s an interesting tactic.

So why would a restaurant want to use PlacePop instead of a service that is already starting to get traction, like Foursquare? Linstrom gave a few reasons: first, PlacePop allows venues to customize and create their own branding for their virtual card. Second, the platform will allow venues to custom tailor how they want to reward program to work — for example, a business could opt to build their own Groupon-style program, where a special deal was activated if 50 people redeemed a coupon.

PlacePop obviously has its work cut out for it. Foursquare and other location-based services are looking to add deals and rewards as a layer on top of their applications, allowing for a more passive approach to earning rewards. Other startups in this space include We Reward, which lets you earn cash for your checkins.


Layoffs, Reshuffle at OneRiot

Social search site OneRiot just announced layoffs and staff restructuring on its company blog, in a post entitled “Welcome to the future, it’s coming fast.”

Now, being agile also necessitates making some tough decisions too, if they are the right thing for the company right now. Unfortunately, today, we have had to let a handful of well respected colleagues go. This is a pragmatic decision based on a strategically focused go-forward plan for the company. It’s in no way a reflection of the talent of the people concerned.

While OneRiot’s post does not reveal how many employees or what percentage of staff was cut, it does announce the following executive changes: CEO and Tesla board Director Kimbal Musk will now take on the role of company Chairman and Tobias Peggs, formerly President in charge of Strategy, Sales, Distribution and Marketing, will replace him as CEO. Co-founder Robert Reich will be leaving the company.

OneRiot’s search results are ranked to reflect the realtime social conversations around any piece of content. The company recently tapped both in to the Google Buzz firehose and Facebook’s Open Graph API.


Innovative New Search Engine Blekko Has 500 Invites For TechCrunch Readers

Today at our Social Currency CrunchUp (which is currently being livestreamed here), Blekko founder and CEO Rich Skrenta gave the first live demo of the startup’s innovative search engine (be sure to check out our initial review). To mark the occasion, Blekko is giving out an invite to 500 lucky TechCrunch readers — just be one of the first people to email a message requesting an invite to [email protected].


Chevy Volt’s 2012 Production Capacity Bumped Up 50%

GM is banking large on the Chevy Volt and apparently feels confident about its success. The auto maker just issued a statement, which conveniently coincides while President Obama is touring the assembly plant, detailing the increased production estimate for 2012. The Detroit-Hamtramck facility will now pump out 50% more than previously detailed, an increase to 45,000 from 30,000.
Chances are this production bump is dependent on a successful roll-out of the first 10,000 vehicles slated to hit dealers later this year. If the $41,000 Volt quickly flops, then GM will probably scale the production numbers back to the initial estimate or less.


Groupon Was Almost A Slippers With Flashlights Company

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According to Groupon CEO Andrew Mason who is on stage right now at Social Currency CrunchUp, the breakout deals site Groupon was originally a side project Mason started in order to make money, “We tried a zillion things” Mason said.

Including a cheesy-sounding slippers with flashlights deal, which Mason describes as “act of desperation, pretty impressive considering that the company is currently making $365 million in revenues, a million a day according to our sources. Mason gave no thought whatsoever as to whether or not it would work.

With Groupon now in over 170 cities in over 22 countries, its come a long way from flashlight slippers, and Mason aspires to one day be a replacement for the classic city guide, “We’re focused on creating a market as efficient as possible with regards to getting as much exposure to local business as possible.”

From the humble slipper beginnings, to currently selling deals on laser eye surgery, Mason has not just created a business, he’s created an entirely new business model, now with over 500 clones. Couponing is currently the hottest thing on the internet; Asking the CrunchUp audience whether or not they had bought a Groupon deal Mason joked, “Raise your hand if you’ve only bought a Groupon so you could figure out how to clone us?”

Update: The original slippers with flashlights Groupon, below.

Photo: Uneasysilence


Conway: During The Bubble, 77% Entrepreneurs Failed. Now, It’s Around 40%

Today, during our Social Currency CrunchUp, angel investor Ron Conway had some interesting data to share for the first time. Conway says that his company, SV Angel, has recently done an audit on the over 500 companies they’ve invested in over the past 12 years. And he was surprised with the results.

Conway expected it would show that about one-third of companies fail, one-third get investors their money back, and one-third bring a 2x to Google-x return (Conway invested in Google early on). But that’s not the case. Conway noticed that during the Internet Bubble in 1997 to 2001 — the failure rate (startups that go out of business and the investors get nothing) was a staggering 77 percent. “It was catastrophic,” he said.

But things improved. The failure rate in recent years — since 2002 — has dropped to about 40 percent, Conway says. He makes sure to note that that’s just his portfolio — which they’re picky about. They only invest in about one of every 40 companies they see.

Conway notes that he was able to make it through the Bubble years because of a very few smart investments in Google, PayPal, and others that also took place at that time. “We were lucky, others weren’t,” he notes.

He also notes that entrepreneurs have a 66 percent chance of being successful on a startup if it’s their second one. But that’s also partially because they’re often doing a second startup if they were successful the first time around.

All that said, Conway notes that his data shows that regardless of the time period — Bubble or Boom — the rate of very successful outcomes has stayed roughly the same. With that in mind, “anytime is a good time to start a company,” he concludes.

Conway says there is a misconception that “every 10 years we get a Google.” “That’s not true,” Conway says. He notes that AskJeeves came, then six years later, Google came. But then six years after that was Facebook. And now the big companies are coming faster. After Facebook, it was only four years until Twitter came around. Then it was two years later that Foursquare, Zynga, and others have come along. “Great companies are being created at a much greater rate,” Conway says.

You can watch the rest of the Social Currency CrunchUp live here.


Ron Conway And Paul Graham Talk About Investing

Today at our Social Currency CrunchUp in Palo Alto, CA, Michael Arrington sat down with investors Ron Conway and Paul Graham. Obviously, these are two of the biggest names in early-stage investing (with SV Angel and Y Combinator, respectively).

Both Conway and Graham had some interesting data to share. Conway, in particular, was able to give some great numbers because he’s recently done an audit on the over 500 companies he’s invested in over the past 12 years.

You can also follow the full Social Currency CrunchUp live here.

Below find my live note (paraphrased):

MA: Ron Conway is the founder of SV Angel which is a $10 million angel fund.

RC: Over 500 companies I’ve invested in.

MA: Ron has some new data to share today that he hasn’t shared before. It will be great to hear that data. Paul Graham is the co-founder of Y Combinator. You guys have funded 212 companies?

PG: 208 companies. 72 companies a year now. First investment was in 2005.

MA: Yesterday was the Angel Conference. 8-10 super angels were speaking, then me. I presented an argument that perhaps Y Combinator and angel investors were destroying Silicon Valley. Ron wants to rebutt that argument. The “Dipshit” argument.

RC: Well referring to these entrepreneurs as dipshits is bullshit. It’s bullshit in my opinion. It takes a lot of guts and passion to start a company. There’s too many M&A in the $25 to $50 million dollar range. Some of them could have been building the next huge company — but they sell too soon. But that’s the entreprenuers decision to make. But the real fallacy is that it’s hurting Silicon Valley. Because the exits are going up it’s helping.

PG: Around 10% or a little more get series A round from VC funds. Anyone who gets that knows they can’t sell for $25 million.

MA: What about the other 90%?

PG: Well most go to angels, the 10% is just from actual VCs. So everything you said if false.

MA: Let’s talk about Mint. Ron you had a stake. Sold for $175 million to Intuit. There’s an argument they could have not sold and become the next Intuit. Some VCs wanted them to take money off the table instead. Same with Aarvark. Investors were begging them to keep going. Isn’t that a bad thing?

RC: Well they’re good examples, but they didn’t stop hiring after being bought. Their parent companies now have a lot more money. And it’s about scaling the idea — much easier now.

MA: There’s been a trend in deals. Facebook has 5 or 10 in the pipeline right now. A small amount of cash, and no stock — but the employees get stock. Some investors complain this is ridiculous — to fund a hiring process for Facebook.
RC: Well I invest in two of them Parakey and Hot Potato — well, if that happens (laughs). I think FriendFeed can been in this category too. Once again you have to respect the entrepreneurs that did all the work. The investors in these companies should consider this a cost of sales. Some will get sucked up — it’s a great thing for the entrepreneur. Getting your money back is not a bad deal. Money back is a win.
PG: But Ron invested in Facebook too — so it’s kind of a wash, right?

MA: There’s been a trend in deals. Facebook has 5 or 10 in the pipeline right now. A small amount of cash, and no stock — but the employees get stock. Some investors complain this is ridiculous — to fund a hiring process for Facebook.

PG: The way to make money isn’t on these small deals anyway.

MA: But if they get a tenth of percent in options — that’s a big deal.

PG: That sounds wrong.

MA: I”m never wrong.

RC: I have another ulterior motive. Founders of Hot Potato, FriendFeed, and Parakey won’t be at Facebook their whole lives. An entrepreneur is an entrepreneur.

MA: Let’s talk data. Paul you have enough companies now to predict if a startup will be successful. Ron, we talked about your recent audit with investments over 12 years. And you were suprrised. You thought it would be different.

RC: I’ve invested in 500 companies over 12 years — there’s a ton of data. People ask all the time what’s the success rate. 1/3 fail, 1/3 you get money back, 1/3 you get 2x to Googlex — I THOUGHT. That’s not accurate. If you go back to the bubble: 1997-2001 — the failure rate (out of business investors get nothing) was 77%. It was catastrophic. But we got Google, PayPal, etc. We were lucky. Others weren’t. That failure rate has plummeted to closer to 40% now. That’s post-Bubble from 2002 to today.

PG: But the failure rate is going to be much higher overall. This is just your portfolio.

RC: That’s right. Just our portfolio that we picked closely from. Repeat entrepreneurs have a 66% of being successful on startup #2.

MA: Does it matter if they were successful the first time?

RC: Well 70% of those companies had a successful first exit. Funny how that works.

RC: A high percentage had huge flame outs too. A third.

MA: What’s the average age of investment?

RC: I don’t know. It’s 25 and under.

PG: Ours is 26 — yours have to be older.

MA: What’s the ROI been?

RC: I haven’t shared that — probably never will. There’s more money coming in. Two more data points: entrepreneurs who start a company, regardless of the climate — since 2002 to today — we’ve had ups and down. Entrepreneurs have the same chance of success — Anytime is a good time to start a company.

MA: Who is the coolest entrepreneur you’ve ever met?

RC: I’m gonna dodge that bullet and say Shawn Fanning. He’s started 3 companies.

MA: Zuckerberg vs. Fanning in the startup pit. He takes him out at the knees right?

RC: Zuck has grown in maturity at an algorithmic scale. He’s a leader. You are a different person than you were 6 months ago. One other point that I think is interesting. People are saying ‘every 10 years we get a Google.” That’s not true. I invested in AskJeeves, then came Google. 4 years later was Facebook. 2 years later was Twitter. 2 years later was Foursquare, Zynga, etc. Great companies are being created at a much greater rate. Awesome news for entrepreneurs. Giant companies every 2 years.

MA: Paul your data has helped you pick entrepreneurs.

PG: We haven’t had enough exits. We noticed that 4 person teams have done badly. We’re not for sure why, but I have a theory. 2 and 3 is good but 1 isn’t great. We’ll fund them, but 2 and 3 is optimal

MA: What about 2 if they’re dating.

PG: It depends. If they stay together. Or if they’re married.

MA: What if you’re gay?

PG: So far it’s all good.

MA: Women?

PG: Only 14 women out of 450 so far. But that’s just because of the applicant pool.


UK Body Clears Google Of Wi-Fi Wrongdoing

Google has been cleared of any wrongdoing relating to Wi-Fi snooping in the UK. Well, partially cleared. The country’s Information Commissioner’s Office, whose job is to “uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals,” has said that “it is unlikely that Google will have captured significant amounts of personal data” during its Street View mappings.