Archive for August 2008
£30,000 is the price for that tired old Web 1.0 site
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by Mike Butcher on August 28, 2008

How much does an old Web 1.0 startup go for these days? Well, here’s an indication. Pub listings guide BeerintheEvening.com – running since the late 90s – was for £30,000, confirms Chris Hughes of new owner Neransk, a UK-based communities operator. The sale actually happened about a year ago but Neransk only just got back to me with the confirmation. Would it have been better to use the cash to build a better Web 2.0 site? Leave your thoughts in the comments.

Germany’s Hobnox ramps up the marketing
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by Mike Butcher on August 28, 2008

German video entertainment startup Hobnox is going on a big marketing drive, offering $200,000 worth of prizes and giveaways for artists that take part in its Evolution2 contest where participants win support and development budgets worth $30,000 each. Running out of offices in Cologne and Berlin, the site launched in spring 2008, combining community, production and publishing functions with web TV channels into one site.

Hobnox is reminiscent of another European startup, WorldTV (Irish/UK based), but with a slightly slicker interface and some interesting online production tools. However the former does not look likely to break out of Germany any time soon – all of the content on the site appears to be German so far. No bad thing, but that does lock it in somewhat.

Jaiku starts to re-emerge, opens unlimited invites
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by Mike Butcher on August 28, 2008

Jaiku – the Finnish startup which at one point threatened Twitter to become the pre-eminent micro blogging tool before Google bought it – has now moved to a Google data center in preparation for its “transition” to the Google App Engine. Plus, it is now allowing its existing users to create unlimited invitations to the service. The news emerged after co-founder Jyri Engestrom, now a Google employee, emailed Jaiku users.

Here’s the email:

Dear mbites,

We’ve been working on the Jaiku service over the weekend after
finding an issue with one of our servers on Friday. As part of the
solution, we’re moving Jaiku to a Google data center.

This is something that we’d planned to do anyway, as part of our
future transition to Google App Engine. Now that we’ve moved, we’ll
need to ask you to review and accept a new terms of service and
privacy policy.

As a special thank you for your patience, we’d like to throw a
little nest-warming party and open unlimited invitations for Jaiku.

Please sign in at http://jaiku.com to review and accept the new terms.

Special notice to users of Jaiku Mobile: to reconnect Jaiku Mobile
after agreeing to the new terms, select ‘Go Online’ from the Options
menu on your phone.

See you there!
Jyri and the Jaiku team at Google

Frankly some might – justifiably – say this is a case of closing the gate after the horse has bolted. Plus, existing users will have to sign a new terms of service and privacy policy, which means Jaiku is bound to lose existing users in the process.

As I wrote recently Jaiku looks like it will become another app in Google’s armoury, and possibly one which could seriously affect Twitter. However, it’s darn well taking its time…

Through the startup hothouse – and out the other side
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by Guest Author on August 28, 2008

Ahead of Seedcamp and TechCrunch 50, Alan Patrick from Broadsight / Broadstuff gives an insight into one of the other UK funding programs in this guest post.

The startup milk round is nearly upon us, what with Seedcamp and the TechCrunch 50 starting soon. However, it would seem that many in the Tech community don’t realise that there are other UK funding programs available as well. We certainly didn’t, in fact it was a tip off by TCUK’s Mike Butcher [Ah, shucks - Ed] that made us enter the Creative Business Accelerator (CBA) program last year.

The CBA program was run by a GLE Capital, and is funded by a combination of bodies such as the London Development Agency, Dept of Trade & Industry, The Institute of Chartered Accountants, as well as supported by the likes of Google, Oracle, NESTA and Kingston Smith.

In the CBA program, 700 entrants were whittled down to a last 70, who all had to make a 5 minute pitch to the CBA panel, of which 15 finalists were chosen. The range of chosen companies was wider than you see in the typical “Tech” bake-offs, we had everything from fashion to film production, but about 1/3rd of the companies were technology or online new media.

To back up a bit – why were we there? We set up Broadsight as a digital media consultancy and technology development house, (becoming “New Media” ourselves via our blog was an accident ;-) ). Earlier last year we had submitted a solution to the BBC for a “Zeitgeist Measurement” requirement from their Innovation Labs, which was accepted. We realised later that what we had designed, in the general case, is a real time context search system, so we decided to develop that further. The consultancy side of the business brings in respectable money, but not enough to fund out a product build like this as fast as we would like, so if possible we were keen to obtaining some outside funding. We found that some startup schools like Seedcamp only want the young ‘uns, but we at Broadsight are a bit more seasoned, shall we say ;)

The way the program works is that over a period of about 4 months you attend a number of half day workshop sessions, where experienced people come and talk about various aspects of being a startup. There is also a mentor assigned, a seasoned person to talk to. Sessions range the gamut from legal and fiducial requirements for set up through product marketing and design, effective selling methods, writing business plans, and various other aspects of running a successful business. Calibre of presenters was pretty high overall, but the real value was in the workshop format itself, with questions and comments coming from our wide variety of companies often leading to insights you may not get in a homogenous “all tech” environment. The endgame is a session similar to TechCrunch50, where the companies get to pitch for 5 minutes to a whole range of angels, VC’s etc.

A lot of the course was focussed on learning to pitch, and of course where and how to obtain funding, and when to obtain funding. This was the most fascinating piece – we had a variety of people – angels, VC,s, bankers, lawyers etc come and talk about this, and I think there are some take-aways here that other eager tech startups need to know:

(i) They almost unilaterally told us that money from VC’s etc is the most expensive money available, and if you do take it, take it as late as possible, after exhausting all other sources. The more developed your business is, the better your negotiating position will be.
(ii) There are also a wide range of grants available in the UK – some are 100%, some are 50/50 funded by the government to reduce the VC’s risk (why this is necessary is the source of a totally different post!) – and the T&C and “hassle factor” of getting these grants, while non trivial, are probably no more than the amount of work you will put in to get Angel / VC funding – and you don’t have to hand over equity.
(iii) Never accept the first terms sheet / contract that is put in front of you – this is a negotiation.

The issue the average startup company has is that it has less information of the “art of the possible”, which is why companies like The Funded are useful as they allow startups a better view of what is happening in the market.

Our own conclusion from the session – for the time being anyway – was that we preferred to keep our current business model for a while longer, and first seek grant funding for product buildout. But it was a very useful, and illuminating, exercise to go through.

Diary.com re-invents diaries for Generation Twitter
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by Mike Butcher on August 27, 2008

When the history of the Internet is one day written, as it will be, URLs will probably figure high on the list of the jewels Web companies tried to amass, alongside the services themselves. Some of them have been notorious, like Sex.com (wiki entry). But the best are always those that bring something new to the party, not just a memorable address and a dull, predictable application.

Which is why it’s encouraging to see a UK startup take “Diary.com” and turn it into an interesting new kind of lifestyle service which is absolutely not a simple calendar application slapped onto an obvious URL.

One’s first impression of Diary.com is that it has a clean interface, a little like like Twitter. You have a simple entry window where you can plug in status updates, which go into a life stream, just like Twitter. But Diary has taken the “stripped-down” Twitter conceipt and applied it more more of a journaling, diary writing environment. In other words, you can paste in anything you like, from text (not Twitter’s 140 characters but up to 1000 – a good sized paragraph for the ADD generation), or URLs pointing to pictures and videos. The site then sucks in the actual video/picture, to make it appear in your life stream. It’s this aspect which starts to take Diary away from micro-blogging into the realms of private life-streaming and Digital Lifestyle Aggregation.

As TechCrunch wrote last year, DLAs are a new class of startup which are about winning people for years to come. Digital Lifestyle sites help people to assemble their memories (blogs, images, video) and, bluntly, aim to lock them in through the amount of sheer time they’ve invested. In the US, Our Story raised $6 million in VC, and joined Story Of My Life, dandelife and My Family in the sector. Coming out of the UK there is Rememble and Miomi (backed by Brightstation Ventures). However, there remains a problem at the core of these sites which is how to keep users coming back once they’ve uploaded some memories, and keeping their attention. Diaries might just be the way to do it since keeping a diary is a very old and recognisable concept. A “DLA” is not.

Diary is also pulling away from both micro-blogging and DLAs, because while your initial Diary is private you can also create any number of shared diaries with other users. At this point it seems obvious to point out that Diary doesn’t sound too dissimilar from old-fashioned blogging, or perhaps running a Tumblr site. The difference comes in that there are a lot of privacy controls on the diaries, and it’s not really a blogging environment – you don’t input HTML tags for instance. It’s a very mainstream concept and probably plays well into a crowd of people who will never bother to understand blogging, let alone microblogging. However, the apparent simplicity of Diary.com might also make it look too simple.

The Diary guys say that user testing so far suggests that a few significant niches enjoy using the site. Women – traditionally bigger diary keepers than men – are using the site a lot. As are the younger female base of 16-24year old, who are mainly in the US where journaling and “scrapbooking” has a long history. Some 50% of the test user base so far has been from the USA, while 20% are from UK (the rest are from Asia and Russia).

However some of the site’s core features lend themselves not just to broadcasting your diary entries but to instant diary feedback, so some users are scrapbooking observations, links, pictures and videos and then chatting around this as the shared diary opens out into a sort of group discussion. There are users with travel diaries, shopping diaries (interestingly), and even some diaries between lovers – because a Diary.com diary is more secure than email and allows pics/video and conversations between the diary owners.

To an extent Diary.com is closer to Friendfeed than Twitter, but where Friendfeed allows threaded comments on posts and is essentially and aggregator, Diary is designed to be a destination site, not an aggregator.

Diary.com plans to allow the importing of importing a couple of key feeds like flickr and twitter just to store in your private diary but they don’t plan to become a FriendFeed style aggregator, given the commoditisatoin of that space and the privacy issues around diaries.

So, monetisation strategy? Hard to say until Diary captures a use base following this public launch. There’s obviously an attempt to monetise attention here – perhaps there is scope to offer power users premium accounts, advertising, SMS revenue (mobile would be a natural fit), virtual goods (”pimp out” your diary) and affiliate revenue.

Running in stealth mode for some months, Diary.com is a team of which consist of co-founders Keld van Schreven and Peter Brooke (who’s owned the domain since 1996), Richard Taylor (CTO) and Ken Lee. So far Diary has raised £300,000 in angel money, but say they are going out for a modest series A round later this year.

ITV brands Friends Reunited re-launch a success – but where are the missing 12 million?
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by Mike Butcher on August 27, 2008

Perhaps the era when old media companies bought new social networks is now over? Why? Because an old media company has now re-made a social network on its own – and it appears to be working. After a fashion. The company in question is ITV, and the network is Friends Reunited. ITV says today that Friends Reunited has hit what it describes as “record numbers”, or 6.6m unique users across its network of sites.

The latest figures from Nielsen show that since the re-launch in May this year the number of unique users “has doubled” to 6.6 million users over the course of July, with 5.5 million visiting regularly.

Mind you, that is still well short of the 19 million registered members Friends Reunited has. But ITV/FR are saying the soc net attracts a rather slower moving older populatoin. Over 11 million of those users are over 35 and with an average user age of 42. Perhaps the rest just haven’t logged back in yet?

Collaboration web apps to beat the Credit Crunch
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by Guest Author on August 26, 2008

With the promise of a credit crunch fast approaching, people are starting to tighten their belts. The tech industry can often be one of the first to experience budget cuts and project cancellations but with distributed teams able to work together it doesn’t have to be this way. None of the new collaborations applications cost a fortune and most are free to try/use. The following is a guest post by Jake Stride, md of the Senokian agency which has spun out the TactileCRM suite of tools for small businesses.

Customer Management

Tools like Relanta, started by the Russian Dmitri Eroshenko, allow you to manage and maintain email across your team, and the US based Highrise and Pipeline Deals, allow you to keep your address book online and manage your sales pipeline.

Collaboration

With organisations working from disparate locations and the increase of home working, a good group collaboration tool is a must to ensure projects work in a streamlined fashion and that there is no unnecessary time wasted.

London based Huddle has an excellent online collaboration tool that offers whiteboards, document management and all the tools you need to keep your team working together. Other solutions are available that meet some of the criteria, but not in one easy to use system. Backpack and hosted SharePoint are others to consider.

Meetings

For many the World is now their oyster. Dimdim has launched their Open Source meeting platform for easy online meetings with colleagues and clients, as has Adobe Connect. doodle.ch have a great online platform for scheduling meetings and getting everyone together, and the old favourites such as Webex and GoToMeeting can still be useful.

Project Management

As we found recently there has been much discussion recently in the tech sector about project managment tools. From Chinwag’s uk-netmarketing list, to PHPWM, there are lots of tools available, but none that seem to quite fit everyone’s needs. Huddle’s solution can be a good fit when you need the collaboration tools, and there are offerings from Intervals, ActiveCollab, and Basecamp too.

Project Management is one of the few places that people seem to get particularly passionate about solutions that don’t quite fit their needs and one where it is worth spending a bit of time looking into solutions.

Support & Customer Service

We’ve all heard the adage, it’s easier to keep/upsell to an existing customer than to find a new one. Keeping them happy is promised by new startup ZenDesk’s online support desk system, allowing you to manage your tech support tickets. Resolve RM is currently in beta and aims to make managing day to day customer enquiries and returns easier to manage.

Finance

From Freshbooks to Xero to Free Agent Central online accounting is great and can really make the most of your time. We use Freshbooks as it has a handy feature to email clients when they are overdue and do a certain amount of credit control/chasing for us.

All of the tools mentioned here are web-based, there are many others out there and this is by no means a complete list. For startups and established companies alike, there are plenty out there to make life easier and hopefully help to avoid the credit crunch.

As startups ourselves it’s all about making the most of the resources we have, and using the types of tools we create to help us work smarter.

ProofHQ makes artwork proofing collaborative
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by Mike Butcher on August 26, 2008

So there have been many attempts to make it easier to collaborate over projects. You’ve got apps that will put yellow stickies onto web pages (like Fleck) and lots of collaboration apps from the likes of Basecamp, Huddle, Sosius and Ximdesk.

There is Conceptshare, Octopz, Cozimo, and Thinkature but fe have concentrated on the single core use for many companies, which is just proofing artwork.

London-based ProofHQ, in private beta since January, launches today aiming at the UK and US markets specifically for this purpose. I tried out the app and it is pretty slick. The cool thing about the proofs, is that they can be embedded into any web page, so ProofHQ documents can can also be integrated into project management applications like Basecamp or Huddle.

It’s designed around the way people currently mark-up proofs because co-founder and CEO Mat Atkinson and his team have a background in this business. He was previously at Workflow Solutions – a specialist pre-press software company.

An uploader tool allows users to drag and drop files (up to 75 Mb) from their desktop to the site where ProofHQ creates a Flash-based proof. Comments made from reviewers – clients, co-workers etc – appear alongside one another. You could in theory use ProofHQ inside a traditional (web-based) enterprise application without having to re-tool.

The startup is looking to bring in revenues from tiered monthly and annual pricing plans based on the number of end users, number of proofs, and storage per month. But a free account is offered to those who just have five proofs per month.

Are you a European startup going to TechCrunch 50?
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by Mike Butcher on August 25, 2008

If you’re a European startup going to TechCrunch 50 (either as a demo company, individual, or even if you’re just thinking about being in San Francisco while the event is on) then please let me know or leave a comment below. There may well be scope for a “UK/Irish/Euro Meetup” if people are interested…

Learning a language the Web 2.0 way
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by Guest Author on August 25, 2008

TechCrunch UK recently ignited a debate around education startups in the UK, but it’s quite clear that the biggest Web 2.0 education market is language learning – and that market, obviously, scales internationally. Here, Nicola Robinsonova of Learnitlists.com pens a guest post about the myriad services out there and which ones cut the mustard.

‘Unless there is a law of physics forbidding a technology, then it’s not only possible, it is sure to be built’ (Michio Kaku) – and where the $20 billion second language acquisition market is concerned, this is certanly true. The essential nature of Web 2.0 (in one definition, the active use of technologies such as social networking, WIKIs, blogs and crowd filtration to create web-based communities who collaborate, create and share content) offers great opportunities for language learners.

In an ideal world we would all speak the same language, or, at the very least, be able to download a new language on demand, perhaps directly into our brains via telepathy (advertising suggest that this already happens – ’speak a new language in 10 minutes’ for example), but, since God smote the Tower of Babbel, and sent us off wandering the earth in distinct linguistic groups, learning a new language has involved some applied effort.

If you are a native English speaker looking to acquire a new language there’s a bounty of resources out there. That you don’t already speak a second language would indicate that the Web 1.0 and pre web techniques available didn’t work so well for you. So… you don’t have time for nightschool, you don’t have the inclination to study from a CD. What is out there in the Web 2.0 world to help you out?

Given that there are 5,000 active languages in the world, the most important factor in determining how useful any specific web 2.0 language service will be to you is simply, do they have your language? There are masses of tools for Spanish, Chinese, French & German… however there isn’t so much around if your were learning Czech, for example. From a business perspective, English is the number one language in the Second Language Acquisition industry – with 750 million learners according to the British Council.

In terms of revenue generation, there are over 100 language sites currently using Google to source advertising, and many sites which offer a straight monthly subscription, monthly payment or freemium model. There are also a growing number which have sourced investment from VC’s – such as Babbel and LiveMocha. Here’s a review of the sites using Web 2.0:

To kick off with bit of learning to take you on holiday: Getawayphrases works with your mobile phone to optimise your recall of words and phrases. Once you’re committed (business model – subscriptions. 9.99 GBP flat fee) you’ll be prompted by your phone throughout the day to revise 7 new words. 4 languages. I hear that their iPhone app will be out later in the summer.

In the iPhone webapp directory already is Cool Gorilla’s lastminute.com talking translator. 6 languages – showing short phrases grouped by category with no sound, making their directory write-up a little inaccurate. They should have gone to getawayphrases.com.

Looking at the iPhone downloads app store there were more apps available, and it was easier to navigate through them. Under travel or education you could find nine main brands from 0.79 – 7.99 euros. Two broad categories – phrases for immediate use when travelling or flashcard style functions for longer term learning, in a range of languages. Brands included iLingo, Babelingo, Lingolook, Lingou, Lonely Planet, Talking Phrasebook (Coolgorilla), AccelaStudy (Renkara Media Group) and Mywords pod101.com.*

Tools to build a bit more vocabulary:
Learnitlists.com (I declare an interest as this is my startup) provides a widget that can be placed on iPhone, any web page, Facebook & your desktop (xp). Currently covering 24 languages, you are given 10 new words every day, from 1500 common words. Functions include learn (with test), listen, speak, write (with translate tool) & share. Most of the functionality is availabe free of charge (ad supported) . You can subscribe to hear sound from a speaking avatar, or listen to other learners for free. There is no work in setting up the service as the 10 daily words are generated for you.

Another free vocab building service is FlashcardExchange – (a more advanced charged version is also available). You can either input your own data or use cards set up by other users. It only takes a little time to work out how to use the site, though the (oh so web 2.0) three step plan is somewhat misleading. No sound available.

If you’re willing to pay for the software, there are many user generated resources available with the SuperMemo service. This clever software tracks your learning and makes revision materials available in tune with the points at which you are most likely to forget your learning – or rather reclassify memories from short term, filing them in either longer term or probably not important.

IngoLingo will train you in 3,000 words over 3 months, with an opt in nag function. This is a free service but too buggy to let me register. The homepage looked good – shame it didn’t work. I might have just been a bit unlucky.

LingQ – With free, basic, plus and premium services – up to 79 USD per month. For a dedicated learner this site looks like a good bet. I was dissapointed that Czech was not included in the 10 languages offered.

MangoLanguages offer 8 languages, plus 3 ESL (English as a Second Language). A nice, slick presentation of lessons, with text and commentary. The site is somewhat secretive about the price for the premium service option. Very nice, but it did feel a bit like the language lab at my secondary school. If they offered Czech, I’d definitely have tried it.

Language Exchange sites are useful once you’ve got some basic phrases and vocabulary sorted, and claim to be not just another social network category. The sites give learners the ability to create relationships with other learners, and use their newly acquired language skills with native speakers. As well as destination sites, some of these provide a limited range of functionality via mainstream social networks such as Facebook. Critical mass is very important & numbers speak loudly – my criteria would be to find a site with lots of Czech users who wanted to chat/skype or whatever. It would have been nice to have access to this info without having to go through the pain of registering on each site – for example by giving me an indication of how many native Czech speakers were online at the time I visited.

Palabea.net has a focus on social networking and informal tutoring. A beautiful site – really pretty design. They are obviously well supported financially with organised PR and articles in the mainstream UK press. Launched earlier this year, a sustained marketing campaign is necessary to garner the user numbers to compete with longer established brands.

My Language Exchange has been going for eight years and has a million users from 133 countries, speaking 113 languages. Not quite as polished in appearance as others in the sector. Facilities include chatroom, e-mail, user created word games, Skype calls to other learners. You need to buy a gold membership (6 USD for a month) in order to initiate contact with other members.

Italki is a social network of people interested in exchanging their language skills. They have 200,000 users and include 90 languages – though 14 main languages. Their Wiki feature is a section called ‘knowledge’ where any user can add videos, audio and text. They also have a Facebook application but the functionality on the app didn’t seem to have acheived critical mass.

LiveMocha is available in English & Spanish – but also covers French, Hindi, German, and Mandarin Chinese, amongst others. It’s currently (predicatably) in beta and free, but will charge for some services in the future. LiveMocha has oral or written exercises and courses, and a community of users from which to find practice partners. LiveMocha secured 6m dollars investment in January 2008.

Friendsabroad:’speak it, learn it, live it’ is a free language learning network. They say they have millions of users from over 200 countries speaking over 80 languages. Their business model is ad suported. A search for Czech speakers came back with 233 people. The interface is in 5 languages. After searching for potential contacts, you can use skype to talk to other registered users. They have a world lingo powered phrase translator to help if you get stuck talking to your new friend. Revenue from advertising, with some premium features in the pipeline.

Penpalvoice – search for web 2.0 penpals – just launched & yet to reach a critical mass of usership.

Babbel is available in English, German, Spanish, Italian and French. This language community provides user generated content as well as ready made lessons, and has a very web 2.0 look. They recently secured an undisclosed investment.

LingoZone – from the grammar on the homepage I got the distinct impression that English was not the first language for this site. LingoZone is an older site, ad supported (Ukranian wives/Muslim brides for example). There’s community, chat & games. I lurked in the chat room for a moment, where guest1 was commenting to sexidanni that LingoZone seemed quiet these days. LingoZone has a popularity board, as well as a score board. It’s rather web 1.0 in appearance though with web 2.0 functionality.

Voxswap ‘the social network for learning languages’ – ‘most popular users’ get their photo on the homepage. Chat, Forums and youtube video content available, with a VOIP coming soon. 2884 users signed up. 22 of them spoke Czech, but the system didn’t let me filter for those who were fluent, rather than beginner level.

What is striking about traditional SLA (second language acquisition) companies is their seeming lack of interest in Web 2.0 technology. All the usual suspects have sites where you can buy books and courses on CD – some offer free downloads (which transpire to be transcripts of material already purchased, or less).

Even in terms of advertising they are notable only for their absence – Natively is the only SLA with a heavy presence on Facebook (downloadable language courses, with no preview, for an undefined fee – alongside the opportunity to pay them for a place in the US Greencard lottery). Where is the Rosetta Stone Facebook app? The Berlitz chat room? The Michel Thomas screensaver?

(If you’re interested in making a quick tour of the above sites, as well as some more old school resources, I’ve put a tour together using jogtheweb.

iPhone Travel downloads:

• Beijing games mini phrase book – (100 phrases with sound) being the cheapest at .79 euros.

• iLingo (by Talking Panda) French/Mandarin, German, Spanish, Cantonese, Italian, Mandarin, Portuguese, Russian, French, Japanese, Korean 7.99 euros. 400 words & phrases with sound.

• Babelingo (Alta Vida) 4.99 euros, 300 phrases, 7 languages. No sound.

• Lingolook Italy, Japan, China, France 3.99 euros, flashcards and phrases.

• Lingou (Edovia) English, German, Spanish & Italian audio, with 13 other languages. 2.39 euros.

• Lonely Planet Phrasebook – Cantonese, Czech, French, German, Italian, Japanese, Mandarin, Spanish, Thai, Vietnamese. 7,99 euros. 600 phrases. With audio (version 2 better quality audio)

• Talking Phrasebook (Coolgorilla) ‘too busy to learn a new language? Download the lastminute.com talking phrasebook and let your iPhone or iPod touch do the talking’. Great idea, but the app didn’t seem to be finished before it went life – with no info or pics available in the directory.

Iphone Education downloads.

AccelaStudy (Renkara Media Group) 11.99. 1200 words in 41 subject areas in the format of flipcards. Dutch, Japanese, Polish, Russian, Turkish, Portuguese, German, French, Italian and Spanish available. Mywords pod101.com (Innovative Language Learning LLC) 7.99 euros Japanese, German, Arabic, French, Italian, Korean, Spanish, Russian. Released on the 12th August this year, the application advocates learning 10 words a day – and so do I.

The top 15 ways to get on with TechCrunch Europe, and maybe other media
37 Comments
by Mike Butcher on August 22, 2008

So as this terrible wet August / Summer ends and online battle re-commences once more, I thought I may as well have a stab at giving you some ideas about how to interact with a blog like this. I’m going to use as inspiration Jason Calacanis’ post on SAI today and also one some points Michael Arrington made at Y Combinator’s Startup School a few months back. But I’ll re-filter it via a transatlantic journey to the UK context and a European mindset – and about 18 years of experience as a journalist.

It’s not definitive, and probably comes across a lot more grumpily than I am in real life, but I thought it might help some people out – and it’s the best I can do on a sunny day when I’m supposed to be on vacation. (In fact, ignore the grumpy bits, I love you guys!)

1. News is a Purple Cow – UK translation: Man Bites Dog

Much has been made of Seth Godin’s Purple Cow concept. That the way to get noticed is to, er, stand out of the crowd. But in fact this harks back to a much older phrase which came out of journalism. The phrase comes from a quote attributed to New York Sun editor John B. Bogart (1873-1890): “When a dog bites a man, that is not news, because it happens so often. But if a man bites a dog, that is news.” Though that’s a US quote I prefer call it a “UK translation” because it reminds me of the legendary Freddie Star Ate My Hamster from The Sun newspaper.

In other words, I’d much rather write about something that hasn’t been seen before, ideally by anyone else. This is why exclusives always carry a premium, as much in the blogging world as the journalism world (assuming a divide still exists, as the lines blur from post to post, hour to hour).

2. Keep in contact – conversations usually beat press releases

One thing I hate is when a company does something but doesn’t tell anyone about it because they think it’s not news. Well, please allow me to tell you: you don’t know what news is. You’re going to have to let people like me decide for you. Sitting, 30,000 feet up, looking at the market every day, bloggers and journalists are able to see what is going on across the board. A new feature from a company over here, could affect another company over there – but (often) neither knows about it because they are in two dimensions, only able to see their own movements side to side. If you like, bloggers / journos exist in three dimensions, moving both on the ground and above it.

This is why, when you’re a company, keeping up a regular conversation on what you are ABOUT to do is important. Because at the same time, others are doing the same. I can then see market trends better and work something up into a real story, rather than a seeing a product announcement in isolation and thinking this doesn’t amount to much.

What’s the best way to keep in contact, and keep up a running conversation? Well, I hesitate to say it but email is pretty good. It’s asynchronous and easy. But it’s also tough to sift. These days one of my best resources is the blogs of the startups themselves. They are good to track. Their disadvantage is that everyone else (as in my competitors) can see them as well – which is why keeping a private conversation running via email works well. I also use Twitter a lot – it’s a great way to have passive conversations which can turn active and private fast.

3. Negotiate your exclusives

If you do keep up an open channel conversation then when it comes to something big to talk about it’s a lot easier to flag it.

Sometimes a startup has a great story – launches are usually the big one – but they stupidly put it out on general release. Why not email me first, ask me if I’d like an exclusive (I usually do) and then negotiate about that? I may not play ball, but let’s cross that bridge. Ok, I know this is self serving, but I’m just fighting my corner here. Most media outlets prefer exclusives and TechCrunch is no exception. BTW – be aware that an exclusive about something boring is still… boring.

UPDATE: Loic Le Meur riffs on this post and lists the various ways to release a story. Here are my thoughts on his post.

He notes that releasing an exclusive story to one outlet in advance of others might annoy other media. Sure, but these days exclusives don’t last that long, and every story is linkable by another blog. But I’d still fight for my exclusives :-)

General release: These work “OK”. It depends on your strategy. But in general I’d say a more considered approach is much better.

Blog it or tweet it: Unless you have 10,000 readers (or at least a good number in your niche) it’s going to get lost in the noise. If I follow you and I found out you’ve Tweeted a potentially interesting news story without talking to me then I’m going to be annoyed.

Embargo the news?: The point about embargoes is that trusted media outlets have longer to prepare a piece. But then you risk embargo breakers, common in blogging where speed is all. I suppose it’s considered a good way to work out which news outlets you trust. The problems with embargoes come when they are over-used. When every tiny new product feature announcement is embargoed. It’s pointless. As a trustworthy, long-time player (18 years a journalist) I don’t break embargoes I’ve agreed to. But then they have to be agreed first. I try my best to deal fairly with people who blast out releases with embargoes slapped all over them, without prior agreement. In the UK media industry these are generally accepted, mainly because PRs (the good ones at least) use them sparingly. But if you haven’t agreed an embargo with me first then you do so at your own risk. The key is always to negotiate, first. And I prefer embargoes where I have the exclusive, obviously!

Release via a PR: Le Meur argues that this method is “broken” because journos and bloggers hear from so many PRs. I’d argue that it’s only broken if the PR person doesn’t know what they are doing. I will listen (consider / reject etc) to pitches from PRs I have heard from for years in this industry. I tune out the bad ones.

4. Don’t be a leech – Be part of the community

You know those companies that are always on send, but never on recieve, and never CONTRIBUTE to the community? Those are the companies that (in an ideal world) should get ignored. Why? Because they push their own agenda 24/7 and never have anything to say IN CONTEXT about the market or interesting trends. Participating and adding value to the market makes for much better content, and gives people like me something to riff off.

BTW, it’s fine to “Be The Brand!” as Calacanis argues, but if you end up not being a good contact, or contributing to the community, people are going to start finding you annoying. Honest.

Where this argument falls down of course is that even annoying people get press, because they talk a lot and constantly engage with the market. That’s also a reality. Yes, Kevin Rose lives for Digg and Loic Le Meur goes on and on about Seesmic. But they also put real content into the marketplace as well. They are active commentators.

5. Conferences are not news

I’m sorry to have to break this to you but the fact you are putting on an event (seminar, conference, party etc) is not news and it’s not that interesting, other than to the people who sign up and actually go. Even then, I can guarantee a certain amount of people who go will come away wondering why they went. That’s the sucky nature of running events. Everyone is a critic. That’s not to say they can’t be fun – and of course, we’re going to promote our own events. But in terms of content for a content site, they ain’t news. What happens AT the event might turn into something, however, and for that reason we might point to events that might be interesting to readers. But largely, it would be best if you added your to the TCUK Upcoming Group – it’s free and easy (just don’t add crap that isn’t relevant). I also like events people who offer our readers something special, like discounts, freebies etc. That might work. But not always. The only exceptions which allow us to write about events before they occur are a) if we have a media partnership in place (only I make decisions about this) which promotes TechCrunch to an audience we want to target; b) we have some kind of exclusive access to content that will break at the event. Other that that, repeat after me: events are not news.

6. Be a great contact

Great contacts are people who offer people like me stories which usually have nothing to do with them or their company, but which they know make great stories. “Gossip” might come into it, but – usually juicy and negative – gossip STAYS gossip unless it can be substantiated but more than one, preferably two sources AND it passes a public interest test. But you always need one source to start. Great contacts also get remembered – I’ll come back to you again for other things. You’ll be more “front of mind” when other stories break which might end up being a sector your company plays in. That may be good or bad for your company – it depends on the story. But the fact that you’re a contact who comes to me with interesting pieces of information will be more front of mind. How can you tell if being great contact is not actually your skill in life? When journalists stop replying to your emails/calls. But don’t be down about that – we can’t all be good at everything.

Oh, and it probably goes without saying that when you meet a journalist you are going to need to buy the coffee/lunch/pint. For you it will be one or maybe two coffees. For them it may be their fifth meeting, and their expense budgets are usually terrible. When the journos start buying you the pints, you know you’ve become the great contact (ok, just kidding now).

Good contacts also send me OTHER good contacts, people or information which are relevant to stories that (gasp!) may have nothing to do with them.

Good contacts also don’t expect me to call them for a 20 minute rambling chat when, wow, I have a bunch of other stories to write. Let’s ramble at that event next week, meanwhile, we all have work to do.

There is another type of contact that is “good” (in a manner of speaking): the person who likes to trash their competitors and deliver the inside dirt. Unfortunately this is the nature of the media beast, and this will happen. But when a company goes down and I start getting emails from competitors and ex-employees about how the CEO spent all the cash on trips to a Soho brothel, well, I am honour-bound to make a few calls to check it out…

7. Be a friendly blogger

Getting links back from other blogs is great for all the obvious reasons. But when someone else references and riffs on one of your posts, it keeps the mind going, and can lead to other posts. If that friendly blogger (they don’t have to be literally friendly, just active) is part of a company I cover, then they are going to be more front of mind when a relevant story breaks. Again, it’s like being a good contact. Hey, it’s all good!

8. Should you hire a PR firm?

Here’s the thing about PR firms. Only a small number are really any good. What happens is that there are individuals inside big PR firms who know their trade, understand how to interface with the media, read blogs, etc etc. If they’re good, they usually end up leaving and setting up their own boutique firm. In which case I still hear from them. The best PRs behave like the best contacts – they keep in contact, float ideas, check if something is of interest before bothering to send you a full-blown release, etc etc.

Others are good, but decide instead to rise through the ranks inside MEGA PR CORP, and guys like me stop hearing from them because they have been replaced by a spotty teenager / recent graduate who just reads your name and number out on a list and “checks if you got the press release”. Or worse, they call you to check if they can email over the non-exclusive (Aargh!) press release. Either that person learns fast and turns into a decent PR or they stay being the person who who cold calls you with crap – at least until they eventually realise they’d do a lot better in life as a bingo caller.

The traditional rule of thumb is that if your company gets a tonne of interest from the media and you are spending too much time on that rather than on your company, then you need PR help. But some people are just terrible at undertanding how to talk about their company, even at its inception. It’s just reality. So there is no shame (at all) in having good PR support. And this is probably something more relevant to the UK and Europe than the US. Because people tend to be more reticent about promoting themselves / their companies over this side of the pond. Maybe that will change, who knows…

9. Want to join in? Network.

Someone asked me recently how they could break into the UK scene – and specifically the London tech scene. I was happy to point out to them some of the events they should hang out at. But they still wanted to know what to do and who to talk to, at which point it felt like they weren’t “getting it”. I regularly hit events in the business two, maybe three times a week, and that’s just the in the evenings (and yes, my wife and kids are not keen on this!). But I’ve been doing that since 1996. I like events and I like talking to people in the real world. I pick up information that just wouldn’t surface any other way. I think I’ve also learnt to say hi to people and be friendly but not end up standing talking to the same person the whole night, which is quite a fear of most British people, especially at business events. I think the networking culture has changed to be slightly more American (”Hi great to meet you! What are you up to these days? Ok great to meet you, yeah sure catch you later, bye”) but not so American that you can’t have a decent conversation as well.

10. Please pitch like a human

I’d agree with Calacanis though – whther you are a lone startup trying to pitch your firm or a PR person, be a human being. I was once relentlessly pitched by a guy about “how great” his startup would be for a whole day at an event I couldn’t escape. In the end I realised that if his startup was not going to be the most amazing thing ever, then it would just get roundly trashed because he annoyed so many people. He wasn’t acting like a normal person. There’s nothing wrong with pitching, but please stop and revert to normality after the pitch. Note also that “Innovative” is now a meaningless word, and the reality is that it’s not going to be up to you to decide if your startup is innovative or not, so you may as well just say what it does and leave it at that.

11. Understand who you are talking to

I often get PR pitches from PR people and startups trying to sell me stories which have nothing to do with TechCrunch. “So I have this great story about a wireless transmitter that can detect submarines from 300 miles!” “Er, yeah, but you know we don’t write about those on TechCrunch, right?” “Yeah, but it’s a GREAT STORY!”. If you spent even 5 minutes reading TechCrunch you’d know this, but you’d be amazed how many people don’t. I hear from them. Every. Day.

12. The media likes CEOs

One of the biggest problems in the UK is the rise of the marketing manager. Just read the trade press in any sector. The marketing manager is always quoted. Like, who cares? It’s less of an issue in the startup world where CEOs are much more accessible, and they are almost always the person who knows their company best. What many firms also don’t realise is that it’s a much better story if a CEO says something than a marketing person. If they did, then some companies would get more press. Unfortunately, they still get press because too many journalists go with the marketing bod. Maybe that’s a little harsh on marketing people. Sorry about that.

13. Do you really need to have formal press meetings?

In the same vein that I like to keep up a conversation with people in the market, I sometimes swing by their office. As a few people might know, I actually cycle around London (yes, I am mad) so if I am in Old Street, it is easy for me to hit Shoreditch. If I am in Soho, it’s easy to swing by Covent Garden. Popping in for some coffee, and a friendly Hello and maybe borrowing some WiFi to check email enables me to keep in contact with your company and means I often fit better into your schedule than 10 emails to find a “window”. Yes, this is not always the case, yes, I can’t always swing by and, yes, it doesn’t replace formal meetings. But I’ve been known to actually sit down and blog from a spare desk in a company, while learning more about how they work. It’s damn useful and leads to more people who make… see point 6.

14. One company in a space is not (generally) a story

You might think you are leaders in your field, but it’s no good if that’s a field of one. There is more of a story if your startup clusters around others in a sector. That’s not to say you shouldn’t be original, and at TechCrunch we love bizarre new tech companies which push the envelope. But that’s why I always ask if you have competitors – it helps me place what you do. Companies that say they have no competitors either truly are original – this is rare – or just idiots. Everyone is (usually) riffing off someone else. Own up to it and you’ll earn respect.

15. “Yes, but how do I get on TechCrunch.com?”

“Yes Mike, we’d love it if you posted on TCUK, but how do we get on TechCrunch.com?” Some people might think it’s rude that you just trashed my efforts on TechCrunch UK by asking me this, but not me – I… understand your pain. But when I am asked this I usually reply that “it depends on the story”. Yes, it’s like asking “how long is a piece of string” but that’s the honest answer. But there are tell-tale factors like how big the story is, how exclusive, how just, well, generally interesting it is etc etc. I am much more pre-disposed to write about European companies though, hint, hint. (If it’s not fully clear: I write on TechCrunch.com as well).

Curiously, the more someone insists they deserve a post on TechCrunch.com, and how “wrong” I am to argue otherwise, the more tedious it gets. I’ll obviously have to work on my attitude.

TechCrunch UK named best Web 2.0 and business blog
40 Comments
by Mike Butcher on August 21, 2008

TechCrunch UK has been named the best “Web 2.0 and business blog” in the UK, by the readers of Computer Weekly magazine.

The ComputerWeekly.com IT Blog Awards 08 sifted hundreds of entries and asked readers to vote on their favourite blogs.

The judges said:

In the Web 2.0 and business blogs category we were looking for our readers’ pick of blogs about social media and web 2.0 and how they impact on business, from benefits to risks, and the way that they change society and the demands and expectations of corporate employees. All the blogs listed were nominated by Computer Weekly readers, whittled down to a final shortlist by our judges, and then put back to our readers for the final vote to select the winner and runner-up.

After closing for nine months and being re-launched in September last year, I’m happy to say TechCrunch UK & Ireland is on a great footing going forward and is well placed to expand its coverage across Europe. Huge thanks are due to you the readers, commenters, and now our guest authors, for your support and encouragement.

Mike Butcher, Editor

Hey, Hackers need friends too!
26 Comments
by Guest Author on August 21, 2008

Despite a plethora of events supporting “new media” types, and even such things as Geek Dinners, the UK eco-system around “hackers” (good programmers, in the true definition) – remains thin. Or so argues Ian Hogarth of Songkick in this guest post.

I believe the most critical thing we can do to improve the ecosystem for start-ups in the UK is to create more community around hackers.

We’ve found that having a community of other hackers around you can massively accelerate both your personal growth, and most importantly for start-ups – the speed at which you can improve your product.

I’m by no means an expert on either start-ups or hacking but I’ll tell you about the experience that convinced me of the value of a local community of hackers.

My background is in statistical machine learning, so when some friends and I wanted a website dedicated to live music, I had to learn some new skills – most critically how to make a website! I’d heard that Facebook had been built on PHP and I liked Facebook so I started teaching myself the basics of building a web app on the LAMP stack and hacking up a prototype. At that point we had a great break and got into Y Combinator (YC). With that we went from being a few friends trying to make something out of an East London flat to being surrounded by a group of 40 really exceptional hackers – 90% of whom had a strong background in web programming. It made an incredible difference. The first thing that became clear was that a web framework could really help to save time. Rails and Django seemed to be the most popular choices and after discussing it with other YC founders we decided to try rails. Immediately things started to move faster, in no small part due to the help and support that some of the other YC companies gave us when getting started with Ruby. The community around YC helped us to find our first hire who was already an experienced Ruby hacker so then we really started to speed up.

When I look back on the craziness of that Y Combinator summer one of the least expected benefits was the value of discussing our ideas with other hackers – on a regular basis. Every week YC would hold dinners for people where we’d show each other what they were working on. The benefits of doing that included the “damn they made a lot of progress, we need to step it up” feeling, the “wow, can you show me how you did that” reaction and most importantly advice on how to do things faster, better and cheaper. Hackers are some of the most generous people I know but even I was surprised to fire an email out asking for advice on efficient ways to set up AB testing and get some code sent back to me within the hour (props Paul).

When we moved back to London after the summer a really strange thing started to happen. We unconsciously became isolated from other hackers again. Although we discussed ideas amongst our team, critically we were missing the structure that those weekly dinners provided. Whenever we did meet other London based hackers (for example the incredibly talented dev teams at Dopplr,
Hypernumbers
and Socialistics) we’d get a ton of helpful suggestions and would be reminded again of the value of that discussion. Then we’d be head down again and not meet any other developers for weeks.

I believe that in the UK we aren’t missing great technical talent – we’re missing enough regular events for hackers to meet, in forums focused on hacking. In SF there are developer oriented meetups every night of the week, in New York there’s the mighty Tech Meetup but in the UK we need to do more to make sure those discussions happen.

We’ve tried to have a go at fixing that ourselves by organising monthly ‘Hacker Meetups’ in London. For the past 6 months around 30-60 hackers have come down to our office in East London to demo new technology they’ve built and then go out for some cheap food nearby. This month (on September 4th) we’re getting the guys from the Erlang training centre to come and tells us a bit more about the benefits of the language and have 4-5 quick demos from people hacking on anything from new programming languages to iPhone apps. When I see 50 enthusiastic people all absorbed in discussions about a new Javascript framework, or catch our CTO in the corner animatedly discussing ideas for scaling with another start-up it feels like those Tuesday nights at Y Combinator. It feels exciting that we can start to create that atmosphere every month in London and I’d love to see similar events happen more and more.

What do you think? Do you regularly meet up with other UK based hackers? How useful is that discussion to you? Would you host a Hacker Meetup in your city?

Dear Agencies, it’s time to join the start-up party
18 Comments
by Guest Author on August 21, 2008


One of the biggest problems in the UK, and I would say Ireland as well, is that digital or ‘new media’ agencies only ever decide to incorporate new Web apps or social networks into their thinking when they bubble up from Silicon Valley or elsewhere. Few ever think to jump in and create a few apps themselves. I have lost count of the number of agencies I encounter who blabber excitedly about their “Facebook marketing strategy” when the developers inside their businesses could probably have built Facebook, if they’d only been given their head.

But an encouraging trend is smarter agencies starting to use some down-time between those interminable client pitches to build new, interesting projects which might just turn into startup businesses in their own right. One example is Isotoma in York, which created the Forkd social network for recipes (TCUK write up). Another is London-based Howard Baines. It was amongst the first agencies to work with Visual Studio 2008, earned a Microsoft case study and a lot of press as an early adopter of Adobe AIR with their AlertThingy Twitter / FriendFeed / Flickr application. Here’s co-founder Clive Howard’s reasoning about why agencies should start building web apps.

As a web agency we spend most of our time working on client projects that cover a range of services from design and development to strategic advice. As a business we face other challenges such as promoting our brand, winning new clients and staying current with the latest trends and technologies. The relentless pace of evolution within internet technologies creates another problem. That is: how to sell clients exciting new concepts when you have nothing to show in terms of previous work.

I’m sure that many agencies reading this will be very familiar with these challenges and often find themselves frustrated in search of answers. When we started Howard Baines we made it a priority to find a way of addressing this. Our solution was to build our own start-ups.

We deliberately chose new technologies or concepts and then used them to design and build web apps. The process not only provided a way of rapidly moving up the learning curve but also resulted in proof-of-concept applications that we could use to demonstrate our experience to clients and act as great PR vehicles for us. The whole process of developing a web application is also a good exercise for learning more about what our start-up clients go through and improving our own design and development processes.

Of course we’re probably not going to be building enterprise scale applications but we have found that small apps can be good for business and also incredible fun to do. As we usually work to a client’s brief having complete control over a project is great and seeing the results very satisfying. Picking a cool new technology, brainstorming ideas and then pulling something together fast is a fantastic experience on an individual and company level.

As an agency we have all the skills in-house to do these projects and so the only cost is our time. The big question therefore is how can this be done around a busy schedule of client work?

Well, because we had the in-house skills and only ourselves to please, it turned out we could produce these apps in very short timescales. Having seen the numerous benefits to building our own Web apps the time investment required seems extremely well spent. We already have plans for a third app to come later in the year.

We recommend that other agencies start producing their own apps and we look forward to seeing and hearing about what you come up with. Again, the experience of designing and developing an app in a short timeframe could unearth new ways of working that may help you day-to-day. In addition a great little add-on or side project may help generate some great PR for your start-up (remember that Twitter started as a side project).

Please Sir, where are the education start-ups?
57 Comments
by Guest Author on August 20, 2008

The following is a guest post by Alastair Briggs from uHavePassed.com

In a search for peers to work with (and share frustrations) I keep an eye out for other education focused start-ups. Unfortunately in the UK there seems to be a problem: either I am rubbish at finding these companies, the start-ups are great at hiding or there are just not that many out there.

The market for Education in the UK is massive – there are 26,562 different schools in the UK, and 157 universities and classroom based learning is only part of the picture. There is also adult education, distance learning, workplace training and many qualifications that could be thought of as niche, but have high enrolments each year. On top of formal education there is informal education that is best represented by language learning and the “Dummies guide to” range of books.

Most of these markets have large established companies specialising in a particular area: school administration software, revision guides, educational software, language teaching etc. These large companies are very focused on maintaining their market share in competitive and established markets and not focused on disruptive ideas but maintaining the status-quo.

Prior to writing this post of I knew of the following start-ups (including ourselves):

Sums Online – Proving a range of flash based maths activities to a school and home audience – becoming the leader in classroom based PDA maths – marketplace: schools

WildKnowledge – Providing Windows Mobile based survey software for use inside and outside the classroom on PDAs – marketplace: schools

Notely.net – A range of tools for students to plan and manage their studies – marketplace: university students

School Of Everything – A connecting tool to directly link people who want to study with teachers of that subject – marketplace: individual learners and teachers.

uHavePassed – Online quizzes that can be taken off line focused on Handy Education(convenience) – marketplace: (currently) students for UK driving test

Learnitlists – Widget based vocabulary training, making personalised learning ubiquitous across many websites – marketplace: language learners

Fonefonics – Complete multi-media language courses delivered via mobile phone, focusing on teaching English to those without computer access – marketplace: employment agencies, language learners

• Many other language based sites offering elearning

After Mike sent out a twitter question I also found out about coracleonline.com who focus on eLearning for the maritime industry and are the exclusive online provider for the Institute of Chartered Shipbrokers.

This year will see the academic focused mLearnand school focused Handheld Learning conferences hosted in the UK. These conferences highlight two problems: mLearn will have lots of innovation, but little of this is being commercialised and Handheld Learning will be heavily technology focused with Apple, Sony, Samsung and Fujitsu all trying to show how their existing solutions can work in the classroom rather than designing new technology for students. It is not well known that the UK is leading the world in research and trials into PDA use in schools.

Technology has already made its impact on education with eLearning now well established in a lot of subject areas. Asus are really innovating with their EEE PC, which seems to fit the needs of educators and parents – is anyone pushing this device further? The iPhone and iPod Touch are perfect multi-media learning platforms (with restricted input mechanisms) for all ages and across all markets – who is going to innovate and disrupt with these? Social networking offers really new ways to collaborate and learn – who is going to turn this from academic idea into working products?

Let’s start the discussion – the questions for which I have no good answers:

What is stopping people from moving into this market?

Why isn’t there funding focused towards education? (perhaps one of those incumbents might like to think about that)

Why is there a strong bias towards language learning in start-ups? Is this because it is more consumer focused?

Silicon Avon – startups doing it ‘Bristol fashion’
12 Comments
by Guest Author on August 19, 2008

In the first of a series of guest posts about the startup scene in various parts of the UK (get in touch if you’re interested in writing one), John Bradford gives us the low-down on the scene in Bristol.

It’s not all stovepipe hats and clay dogs in Bristol. These days its more location aware gaming, mobile media and building businesses. Two Bristol startups you may have heard about are Glasses Direct (James Murray Wells, a UWE graduate) and MyBuilder (Ryan Notz, a Bristol Uni graduate). But what else is going on? As a relative newcomer to the city (5yrs and loving it) here is a quick peek around some local start-ups.

The Watershed, a digital media & arts complex in the heart of the city, has been mixing up creativity and technology for over 20 years.The place for start-ups is their new Pervasive Media Studio, headed by Clare in partnership with HP Labs & with heavy involvement from both Bristol University & UWE. The Studio launched with it’s Media Sandbox competition. Several of the projects came from larger established companies (including Aardman, HMC, BDH, Plot, etc) but the winning project brought together two startup companies, Thought Den (Dan) and Mobile Pie (Richard), to create Happy Packages. After some early PR from the Guardian, Mobile Pie have knuckled down to turn out a number of games and have picked up some awards along the way. They’ve also since been confirmed as one of the first 4,000 iPhone developers and are working with Futurelab to find funding for an exciting e-learning project.

Another Sandbox success is the Comfort of Strangers from the eponymous Simon + Simon. Using a heavily modified mscapes platform, two teams have to ‘discover’ matched players while avoiding opponents. A soft voice in your ear is all that alerts you to the fact that ‘a dancer is nearby, you have lost a life point…’ This ARG team game has been showcased at New York’s Come Out & Play. They now organise the monthly igLab to explore collaborative and social gaming developments. 19-21 Sept they’re turning Bristol into one giant playground… everyone is playing – running, hiding, seeking, finding, escaping, tagging…. igFest.

Just north of the M5, Chris & Craig at BexMedia have been developing a video platform for mobile devices, recently expanding into interactive video after developing a mobile map & video experience for freshers to quickly acquaint themselves with Anglia Ruskin University. On a slightly bigger scale is the Visualise project from 3C Research to bring unprecedented levels of personalised streaming data & video to mobile devices at live sports events. Currently with the World Rally Championships, Nigel’s actively spinning out new startups to commercialise the software & services.

Round the beck end, The Web People started up coding websites like everyone else but Tom quickly developed a web-services management system that made it simple for him to manage lots of websites, with lots of different services, for lots of clients all in parallel. Co-founder Mark saw the opportunity, they’ve just launched an open beta, and are on track for some stellar growth (clients are already beating a path to their door). Also working behind the scenes to spread and gather the word virally is Team Rubber with Andy at the helm. Though not strictly a startup, having survived the dot-com boom, Andy’s a staunch supporter and is actively helping the ‘new guys’ get off the ground.

Behind all these successes lies a growing entrepreneurial ecosystem mixing startups, future clients, partners and investors. This mixing covers everything from the fun & interesting (Dorkbot / igLab), learning & technical (Skillswap / BathCamp), business & sectoral (OpenCoffee / Media Tuesday) to University sponsored (BEN). Its not just the geeks & designers either, lawyers, accountants and exec recruiters are getting behind the start-up scene in Bristol like never before.

Aiming your startup at the US – without leaving the UK
18 Comments
by Guest Author on August 18, 2008

Four guys in Edinburgh now run a site aimed entirely at the US. Even the UK section of the site appears under “International”. What have they learnt? The following is a guest post by Nigel Eccles, co-founder and CEO of Hubdub, the prediction trading game.

Many start-ups in the UK face the challenge that their major market is the US. While Hubdub is based in Edinburgh, 75% of our users reside in the US. That was a deliberate marketing decision and here are our top tips on how to better compete there.

1. Decide on your target market and focus

Very early on in the development process we decided that the US would be our target market. The US represented a much larger market and is home turf to our main competitors. Winning there was strategically important for us. Before launch we considered launching in US and UK simultaneously but quickly realised that running two sites would significantly increase our costs without any clear strategic benefit.

2. Launch at a tech conference

We launched at DEMO in January. It was expensive ($18,500) but worth it. We got a huge amount of exposure and also probably pulled forward our launch date by two months (which stopped us from developing a bunch of features our users would never have used). While DEMO was good for us, TechCrunch 50 is probably better tailored to web start-ups and also happens to be free.

3. Use a PR agency for the launch

There is quite a lot of debate about whether or not web start-ups should use a PR agency. If you are a UK company trying to launch at a US tech conference, then the decision is a no brainer. You need a PR agency. There will be 50-80 other companies out there all screaming for attention. No matter how great your product is you need a way to get to key journalists and bloggers.

4. Build a US based board of advisors

Look at the advisory board of US based start-ups in the same industry (but obviously not competitors) and work out who could add value. Use your network to get to those people and start building a relationship.

5. Always write in US English

Dates, spelling and phrases – UK readers are generally used to reading both UK and US English. Many US readers aren’t so don’t make understanding your product harder for them. Also US English will be better for your SEO.

6. Travel stateside regularly

Pack out an agenda of who you want to meet. Work UK hours in the morning and US hours in the evening. Sleep on the flight home.

7. Ask fellow entrepreneurs for help

Nearly every successful entrepreneur I have met is happy to help entrepreneurs starting out. Work out who can help and use your network to get to them. Go direct if you can’t network to them. Make sure that you are asking for something that they can easily help with (e.g. making an intro, quick piece of advice etc), explain who you are and concisely ask for help. At least 80% of the time you will get it.

8. Use web tools to track your industry and competitors

Use Google Alerts and Summize RSS Feeds on your product name and your competitor names to track what people are writing about your industry. Get involved in that discussion.

9. Build a virtual team from your US user base

Apart from you, no one will be more passionate about your product than your top users. If you need someone to evangelize your product then look to hire from your US user base.

10. Start the US visa process early

Skype and Last.fm show that UK based start-ups can compete with US competitors and win, however geography still matters (I know start-ups in Seattle that feel their location is a handicap). Most UK based entrepreneurs want to stay in the UK and help build the start-up community here, but if geography is becoming a serious issue then move to the US, successfully sell to AOL for $850 million and then invest in some UK start-ups.

Trust me, I’m a start-up
5 Comments
by Guest Author on August 15, 2008

This is a guest post by David Cruickshank, co-founder of Business IT Online, the web-based suite of business software applications for small businesses. David blogs at Internet business.

Many of the greatest challenges start-ups face involve trust. Earning it, growing it, rewarding it, avoiding the loss of it and recovering it when you fail. To succeed, we need to be trusted in key business relationships and ultimately, our users and investors will vote with their cash as to whether we are trust-worthy or not.

Our personal relationships show us that trust grows with time. Those we trust the most, we have known long enough to feel assured that our trust in them is not misplaced.

This is the start-up’s paradox:

To succeed, start-ups must build trust. Earning trust takes time and start-up businesses are operating from a standing start with no history of competence or credibility. Intriguingly, start-ups are constrained by the very resource they need to thrive.

From a user’s perspective, trust is inextricably linked to risk and motivation. More trust is required when there is a high perceived risk of using a service. Less trust is required when we are highly motivated by the benefits of that service.

A low risk, high value service, therefore, will win trust the quickest and, all else being equal (which it never is), will more likely succeed. The diagram below illustrates this.

Food for thought for anyone planning a start-up; your start-up’s chances of success are better if you are focused in the red or orange areas.

So how does a start-up build trust with so little trading time behind it? The good news is that risk and value are perceptions that can be influenced to some degree.

Case studies, customer service, advisory boards and employment interviews are useful mechanisms for reducing the perceived risk in new ventures. Testimonials, market research and employee stock options can also positively influence the perceived value of using, investing in and working for a new business.

However, communications issued directly from a start-up are not the most powerful trust-influencers. In the early days of a start-up, with very little reputation in the marketplace, it is not surprising that the Holy Grail is to achieve a highly viral propagation of the service. This is not solely because of the obvious economic efficiencies of ‘sneeze marketing‘ but also because we are more likely to trust an independent third party user of a service than we are to trust the provider of that service. After all, if you think about how you originally came to hear about Google, eBay, Amazon or Hotmail, it probably wasn’t from a carefully devised press release or TV ad.

So what can we do to influence trust? An interesting essay on Trust & Trust Building suggests that, ultimately, trust-worthiness is assessed, based on three characteristics:

  1. Ability – our competency to deliver on our promises
  2. Integrity – our credibility of communication and commitment to fairness
  3. Benevolence – the intentions and motives behind our actions

These are interesting because many of the initiatives that we see start-ups deploy to help grow a service, build trust in one or more of the above ways:

  • Hiring experienced entrepreneurs
  • Building an open service and releasing APIs
  • Building partnerships
  • Offering referral rewards
  • Promoting case studies and demonstrating early traction
  • Announcing an advisory board
  • Generating and linking to press coverage
  • Working with charities and not-for profits

How trust-worthy is your service? Is it low risk? Is it high value? Although the web offers many advantages in business, one of the drawbacks is reduced direct customer interaction. In the end, people like to trust people, which means Internet businesses need to work harder than most at building trust. Take a look at some of the initiatives listed above. What can you do to build a deeper level of trust in your service?

Whatever you do, remember the words of the Dutch statesman, Johan Thorbecke, "Trust comes on foot, but leaves on horseback".

As Twitter withdraws SMS, startups rush to fill the void
10 Comments
by Mike Butcher on August 14, 2008

Assuming the founders of Twitter are listening, then they will have been be hearing about the outcry from users outside the US (just read these comments) after they completely cut off all outbound SMS services in the UK and chose not to replace them with premium rate SMS services – services which, surprise, surprise – millions of people in Europe already happily pay for.

But no matter. Twitter’s loss is the startups’ gain, and a number of them are hungrily eyeing up the potential premium-rate SMS market which Twitter has built and bank-rolled as a free service till now.

Just two of them to hit my inbox in the last 12 hours include Zygo Tweet and Tweet SMS.

The latter says “for a low price, tweetSMS can send you individual, hourly or daily updates from all of your friends!”. Though who these guys are is anyone’s guess, and they haven’t told me yet. But they say it will “be available worldwide across almost all carriers” and they “also plan to deploy an ad-based service for free updates.”

Zygo Tweet however are already known to TechCrunch as the guys behind UK-based Zygo Hubs, a mobile startup which could almost be likened to an SMS version of Twitter already.

They are asking people to register their interest – once they hit enough users it’s going to be worth their while to offer the service. I understand it will cost about 5p per message or less, down to 4p in large quantities. As other observers have said, it’s clear that for many people it is the DMs – the direct messages from Twitter on SMS which is the real ‘must have’ part of the service, so 5p is a small price to pay in that respect.

Meanwhile, I would not be surprised to find all sorts of people starting to offer SMS services based on Twitter’s API, but I would certainly be careful who you entrust with your Twitter name and password.

Twitter cuts UK SMS – there goes another business model
75 Comments
by Mike Butcher on August 14, 2008

Twitter has killed its outbound SMS services outside of the United States, Canada or India, and with it a potentially highly lucrative business model in Europe. In the UK you’ll still be able to send Twitter an SMS to update your status, but you won’t be receiving them. Apparently rising rising costs made it impractical, and we have been getting those SMSs for free.

In a blog post co-founder Biz Stone says: “Even with a limit of 250 messages received per week, it could cost Twitter about $1,000 per user, per year to send SMS outside of Canada, India, or the US.” In the US and some other countries they’ve been able to negotiate service fees with mobile operators that cut out after a certain point, saving them money. But they haven’t got this deal in the UK.

However, as a few mobile experts are starting to point out, Twitter could have charged heavy users a premium bundling package to recieve their Twitters via SMS. Alfie Dennen, co-founder of Moblog.net today says that he would have paid “4p per message if offered a 250 sms bundle.” Vero Pepperrell of mobile startup Taptu finds it “Really annoying that DMs won’t arrive by SMS anymore.” Many UK Twitterers today are expressing their disappointment using phrases like “shame”, “bye bye Twitter”, “disappointed”, “Gits” and “Gutted”. Setting up premiums SMS services is a doddle.

In Europe there is mainstream adoption of premium SMS services so introducing charges would not have deterred too many Twitter users. Personally I was amazed Twitter didn’t do this from the outset two years ago. In many respects, Twitter took off in the UK precisely because it had an SMS service, whereas Jaiku, the competing service which was bought and virtually killed off by Google (at least so far), did not only had SMS in Finland, a tiny market, and thus languished on the desktop rather than the mobile. If Twitter had put even a small premium on SMS it might not be cutting the SMS service today – and it would have a sustainable business model. It may come as a surprise to non-Silicon Valley American’s but not everyone in Europe has an iPhone or is on unlimited data plans. SMS still rules in Europe and makes any update services far more available to the mainstream.

It’s worth noting that because the UK SMS service has gone, people in other European countries using the UK number for mobile updates have now been cut as well.

UPDATE: There is now a Facebook campaign to get UK mobile phone operators to “cut Twitter a decent deal”.

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