Venture Capital Category Archive
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January 19, 2008

We invested in Twitter and are bringing them to Japan

09:44 UTC » Social Software - Venture Capital

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October 14, 2007

Tallinn

01:07 UTC » Joi's Diary - Venture Capital

Märt Saarepera Mart explaining architecture

I just returned from a trip to Tallinn where I completed the paperwork to invest in GuardTime, an electronic archive and log authentication system using cryptographic time stamps.

The idea was developed by the founder of the company, Märt Saarepera and his collegues in Estonia when Mart was in Japan. Mart started out as an academic and a researcher, but became an entrepreneur in residence at my company Neoteny back when we were still incubating businesses. At the time, our team thought that the business was too early and passed on the investment and Mart set off on his own with support of his friends and family and some minimal support from myself.

Years later, it looks like the market is finally ready for Mart and his product. His idea has also developed from a rather theoretical idea to something they can show and ship.

Mart has raised money from a group of investors including the Ambient Sound Investments (ASI) founded and run by some of the Skype founding technical members.

Because of securities laws in Estonia, I needed to visit Estonia personally to open an account at a bank there. The banking in Estonia is really advanced, having been built from scratch after the Internet existed already. They use hardware password generators for their online banking and offer more services through the Internet than any other bank I’ve ever seen. Also, because they don’t have a lot of legacy crap like banks in Japan, they are very profitable and lean.

Tallinn was a very cool city. It is the capital of Estonia with a population of about 400,000. In many ways it reminds me of Helsinki except smaller and with Skype as the anchor IT global brand instead of Nokia.

The old town where I stayed was a beautiful district with the old architecture preserved and the random Russian government buildings scattered around typical of this former USSR region. Embedded in this old-architecture are very nice restaurants, shops and hotels built in the cool super-minimalist style of Nordic Europe that I love so much. I stayed at a hotel called Three Sisters and it was the best small hotel I’ve stayed in recently.

Another cool thing about Tallinn was that there was free wifi everywhere. The hotel, railway station, offices and airport all had free wifi. The Internet was faster than in Frankfurt airport, the Frankfurt Sheraton, in fact faster than just about anywhere that I’ve been recently other than my office in Tokyo.

I don’t know if it is the Estonian culture or Mart’s community, but everyone I met at GuardTime and Skype seemed happy and smart. There was a buzz of a strong culture and good work being done. I miss think sort of feeling “pure” feeling these days.

I’ve uploaded my photos in a Flickr set.

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September 5, 2007

Dopplr

03:56 UTC » Venture Capital

Dopplr announced the closing of their seed round which I participated in.

Dopplr is social network for travelers. While it is possible to sync your travel schedules with people using other applications, no application that I know of has focused on and delivered the answer to the "when are we in the same city next?" question so well. The upside of Dopplr is that it does this VERY well and is perfect for people like me who usually meet my friends while traveling. The downside is that it's not that useful for people who don't travel or don't have any friends who travel.

The other great thing about Dopplr is that it was founded by, funded by and is being developed by some of my best friends..

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August 27, 2007

China trip

00:24 UTC » People - Photo - Venture Capital

Shanghai
View from Shanghai JW Marriott

Just returned from a trip to China with Reid, Michelle, Ellen and Kazuya organized by Leonard Liu and his team.

We met with VCs, entrepreneurs and a few of my old friends.

I was in Shanghai a few years ago just as the US VCs were starting to set up offices in Shanghai. Things have clearly moved forward a notch. The first wave of entrepreneurs have exited their successful ventures and are now on their second or third venture. The VCs seem to have a community. More and more US educated Chinese seem to be returning.

There are many things about the Chinese venture scene that remind me of the Japanese venture scene. There are clearly fewer experienced VCs and entrepreneurs compared to Silicon Valley. Many of the people are copying US models - some with a great deal of success.

The Chinese market in general reminds me of Japan during the bubble. Everyone hugely optimistic, explosion of spending, explosion of brands and luxury goods, investors from all over the place flocking to participate. While the dynamics are quite different and the market much larger in many ways, I see some of the similar indicators of irrational exuberance as well.

When we launched a lot of our ventures in Japan like Internet advertising, ecommerce and other things that were going strong in the US, we typically overestimated the short term growth for Japan. I have to give Reid credit for triggering this thought, but I now think that it is possible that many entrepreneurs may be overestimating how easy it is going to be to get Internet ads and ecommerce going in China. On the other hand, even very narrow nitchy markets in China are HUGE so it's possible to build pretty big business with a narrow focus compared to what you can do in the US or Japan.

I'm still not sure what we're going to end up doing in China if anything, but I'll keep you posted. Thanks for everyone who took time in their busy schedules to meet with us and share thoughts. Thanks especially to Leonard, John, Vivian and Stefanie for organizing such a great trip!

I organized my photos into the Shanghai part and the Beijing part.

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June 5, 2007

Media Companies driving Web 2.0 "boom"?

16:06 UTC » Venture Capital

Reflecting on All Things Digital, I got the feeling that I've missed thinking deeply about something that is probably obvious to a lot of people. Big media companies are leading the charge (fueling the bubble?) into Web 2.0 probably even more than VCs and startups. I definitely felt a kind of bubble-like feeling at the last O'Reilly Web 2.0 Expo, but after D I realized that it wasn't really a bubble so much as a charge after hearing the heads of companies like CBS, News Corp., Time, Viacom, etc. talk about how they were basically just getting started. It seemed like they all had almost weekly pipelines of multi-hundred-million-dollar acquisitions planned. They talked jealously about how after the $900M Google deal to buy the MySpace ads, it was clear that the $580M MySpace acquisition by News Corp. was a steal.

John Markoff also mentioned to me that if you had bought Apple stock at the Google IPO, you would have done better than if you had bought Google stock.

Watching and listening to these big companies talking about "the space" it felt like, in their eyes, and possibly in reality, these guys were "running the show". If nothing else, they were providing the exit scenarios for most of the investors in Silicon Valley now. Chatting to various friends at Google and Yahoo, it was clear that neither of the two would pay the kinds of valuations that the media companies were paying for their acquisitions.

I had mused about this and had even talked about this trend, but listening to MediaCo-to-MediaCo chatter, really made a deep impression on me and makes me feel that maybe this exuberance will continue longer than I had thought... at least unless there is some larger market catastrophe... Which is good I guess. ;-)

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May 30, 2007

Last.fm and CBS

15:45 UTC » Music - Venture Capital

Congrats and "Good job!" to CBS and the Last.fm team! CBS and Last.fm announced that CBS will be acquiring Last.fm for $280 million. I think it's a good fit and the team seems happy with the deal. Last.fm have blogged about it and CBS has an announcement.

I was an angel investor and a series A investor in Last.fm.

UPDATE: BBC has a good article - Social music site Last.fm has been bought by US media giant CBS Corporation for $280m (£140m), the largest-ever UK Web 2.0 acquisition.

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December 27, 2006

CC Business Mixter

23:18 UTC » Creative Commons - Venture Capital

CC Weblog
CC Business Mixer: Calling for Creative Commons Entrepreneurs

Creative Commons and CC board member John Buckman will be hosting a CC Business Mixer on Thursday, Jan. 18th from 6pm-8pm at the Creative Commons offices in San Francisco. If you have an idea for a Creative Commons related business, this is your chance to present your idea to other like minded entrepreneurs and network with VCs. Have an idea you would like to present? Email John Buckman at johnbuckman@creativecommons.org.

Details: Creative Commons Business Mixer for CC Entrepreneurs
6pm-8pm, Thursday January 18th
Creative Commons
543 Howard Street, 5th Floor
San Francisco

It looks like I'l be able to make it to this event. If you're in SF and have a startup that involves CC or are a VC interested in this space, email John Buckman and see you there. ;-)

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October 22, 2006

Is YouTube "Web 2.0"?

06:31 UTC » Sharing Economy - Venture Capital

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June 29, 2006

Reid Hoffman #22 on Business 2.0 list of most important people

03:25 UTC » Joi's Diary - Venture Capital

A belated "gratz" to my friend and co-investor/partner in most of my angel investments, Reid Hoffman for become a Rank 22 important person.

Business 2.0
The 50 people who matter now

Rank: 22
Reid Hoffman
Angel investor and CEO, LinkedIn

Why He Matters: Want to launch a Web 2.0 startup? Be prepared to kiss Hoffman's ring. In his day job, Hoffman is the co-founder of LinkedIn, the online haven for business networkers. But on the side, he's also an angel investor with a knack for spotting young companies with big potential. Thus far, he's supplied insight and investment money to a remarkable number of successful startups, including Digg, Facebook, Flickr, Last.fm, Six Apart, Technorati, and Wink. And while the cash is nice, Hoffman's imprimatur has become even more important if you want to be seen as a player in today's Internet game. If he likes your idea, good fortune is likely to follow. If he doesn't, it may be time to rethink your business plan.

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April 30, 2004

Google S-1

07:43 UTC » Search - Venture Capital

Google's S-1 is online. (Warning. Big file.)

via CNET

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April 21, 2004

Sean Parker kicked out of Plaxo

16:57 UTC » Social Software - Venture Capital

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December 6, 2003

PC Magazine Editors' Awards

17:47 UTC » Blogging about Blogging - Joi's Diary - Venture Capital - Wiki

I feel like a proud dad. Six Apart's Movable Type got 5 stars, TypePad got 4 stars and an Editors' Choice and Socialtext Workspace got an 4 stars and an Editors' Choice in the recent PC Magazine's Editors' Choice Awards.

Good work folks!

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October 30, 2003

Following crowds

15:51 UTC » Introspective - Social Software - Venture Capital

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October 24, 2003

Google considers online IPO auction

07:55 UTC » Business and the Economy - Search - Venture Capital

The Financial Times
Google considers online IPO auction

By Richard Waters in San Francisco

Google is considering holding a massive online auction of shares early next year in an initial public offering that investment bankers predict could value the internet search-engine company at more than $15bn.

Holy cow. Does anyone have any more information on this?

I wonder if it's going to be a Dutch Auction IPO?

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June 23, 2003

Invested in Socialtext

23:44 UTC » Joi's Diary - Social Software - Venture Capital

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June 5, 2003

No-Shop Agreements

09:25 UTC » Venture Capital

A few people have questioned my assertion that no-shop agreements make sense. I'd like to clarify my position. I do agree that in some cases, they don't make sense, but here's where they make sense.

Continue reading "No-Shop Agreements"

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May 17, 2003

Our investment process

22:57 UTC » Venture Capital

Wrote a not-so-organized entry about our investment process...

Continue reading "Our investment process"

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