AllThingsD » Highland Capital Partners

Cloud Computing With a Chance of Mobile: Weather Channel Adds Former Quattro CEO to Board

Kara Swisher — Thu, 08 Mar 2012 15:03:45 +0000

In an interesting move, the Weather Channel Companies has added Andy Miller to its board.

While such adds are not usually the biggest of news, the appointment of the high-profile former CEO and co-founder of mobile advertising firm Quattro Wireless as a director is an interesting early move by new CEO David Kenny.

The longtime digital and advertising exec just got there himself, and is likely to double down on mobile efforts at the media company interested in many fronts (fronts? weather? get it?!?). (Kenny also serves on the board of Yahoo.)

It makes sense, given that so many more people will be increasingly accessing all kinds of weather info — including video — on their mobile devices rather than the Web. Expertise in mobile advertising, then, will be key.

Miller, as you might recall, sold Quattro to Apple for $275 million in 2010, and became its head of mobile advertising before leaving that post last year. At Apple, he headed up the iAd division, which is the mobile advertising network for the iPhone, iPod touch and iPad.

He is now at the venture firm Highland Capital Partners.

Here’s the official press release:

THE WEATHER CHANNEL COMPANIES APPOINTS ANDY MILLER TO ITS BOARD OF DIRECTORS

ATLANTA — March 8, 2012 – The Weather Channel Companies (TWCC) today announced the appointment of Andy Miller to its board of directors. Miller, a general partner at Highland Capital Partners, is a mobile expert and visionary entrepreneur who led mobile advertising at Apple and was the co-founder and CEO of Quattro Wireless.

“Andy is the ideal choice to be the first outside director on our board, and we will benefit from his vast knowledge of mobile and his perspective gained from years of experience successfully starting and growing companies,” said David Kenny, chairman and CEO, TWCC. “As a leader in mobile with potential for tremendous growth globally, Andy’s contributions will help guide as we grow mobile and our entire digital portfolio.”

“I have watched The Weather Channel’s progress in the digital space for years, both as part of my work and as a consumer and have believed in the strength and potential for this business,” said Miller. “I am certain that the opportunity to work with the company as it builds new products and sets it sights on global expansion will be a rewarding one.”

As a general partner at Highland Capital Partners, Miller is focused on identifying and working with the most promising technology companies in Silicon Valley. He currently represents Highland on the boards of Digg, Game Closure and Impermium. Miller joined Highland from Apple Inc., where he reported directly to Steve Jobs and was vice president, mobile advertising. At Apple, he headed up the iAd division, the mobile advertising network for the iPhone, iPod Touch and iPad line of mobile devices.

Previously, Miller was the co-founder and CEO of Quattro Wireless, the mobile advertising company that was acquired by Apple in 2009. Prior to that, he had responsibility for business development, sales and strategy for what became North America’s dominant mobile aggregator, mQube, which was acquired by VeriSign in 2006. Miller has also held the position of CEO of WatchPoint Media, an MIT Media Lab interactive TV spinoff, that was sold to Goldpocket/Tandberg Television in 2003.

Miller has a bachelor’s degree from Union College and a J.D. from Boston College Law School. He lives in the Bay area with his wife and two boys. An avid baseball fan, he is a co-owner of the Colorado Rockies Advanced Single A franchise, the Modesto Nuts.

OpenSky Raises $30 Million for Twitter-Inspired Shopping Site

Tricia Duryee — Mon, 24 Oct 2011 12:59:19 +0000

The founder and CEO of OpenSky, John Caplan, says the curated shopping site has more in common with Twitter than with eBay or Amazon.

On the site, shoppers add — or “follow” — celebrities and experts who share similar interests, to receive recommendations on the latest food, fashion, design and style.

In that way, OpenSky pushes product ideas to shoppers, somewhat in the way Twitter lets people discover information versus having to search for an answer on Google.

Caplan told me OpenSky has raised $30 million in fresh capital to continue building out the business.

The New York-based company, with offices in Los Angeles and Nashville, is only six months old and previously raised $19 million in two prior rounds.

New investor Providence Equity Partners led the financing. Existing investors Highland Capital Partners, Canaan Partners and the Raine Group also participated.

Some of the company’s talent includes celebrity chefs such as Bobby Flay and Italian food expert Lidia Bastianich, and pop culture figures like actress and reality TV star Kristin Cavallari, who will advise customers on the latest fashions.

In a recent offering, Flay, who has 164,626 followers, advised shoppers to purchase a spice bundle for $23. Fitness guru and motivation speaker Gabrielle Bernstein recommended a collapsible Hula-Hoop that’s easy to travel with.

Caplan said it’s an approach that’s really resonating with shoppers, particularly women in their 30s.

He said the company will break $1 million in sales this month and is on track for a $10 million run rate. Both order volume and revenues are growing 50 percent month over month.

The company already has 600,000 members signed up; they are now connecting to millions of shopping “experts.” It took the first 14 weeks for OpenSky to hit one million connections, 10 weeks to get its second million and three weeks to reach its third million. Customers are spending $50 on the average transaction, which is more than double Amazon’s average order of $22, Caplan said.

“This feels like such a modern way to shop, compared to the search box,” Caplan said. “There’s not a lot of soul in online shopping. We are putting the soul back into shopping.”

He added that walking into actual stores is engaging and entertaining. “I think Amazon is a fantastic company, and they have a lot of things they do really brilliantly, but I don’t think it’s the best way to shop.”

Many companies right now are challenging the original e-commerce model, and for good reason. Kleiner Perkins partner Mary Meeker noted in a report last week that e-commerce makes up 8 percent of overall commerce in the U.S. today, and continues to climb.

Caplan said the capital will be used to add more shopping verticals and experts to the site. Today, it has 75, with hundreds more coming.

As the former president of About.com, which relied on a distributed workforce to contribute answers to the site, Caplan believes he knows exactly how to get the business to click.

To make money, OpenSky is splitting the gross profit from the items sold with the experts on the site. It’s free to join as a member, and there’s a 90-day money-back guarantee. So far, it has experienced a 1 percent return rate.

“I personally love businesses where you partner with talent and create talent,” he said.

Wooga Raises $24 Million to Fuel Online Social Games Growth

Tricia Duryee — Tue, 31 May 2011 14:49:22 +0000

Berlin-based Wooga, a social games company with 30 million monthly players on Facebook, has raised $24 million in funding. The second round was led by Highland Capital Partners with Tenaya Capital, Balderton Capital and HV Holtzbrinck Ventures also participating. The company has three titles in Facebook’s top 30, including Monster World, Diamond Dash and Bubble Island. It plans to hire aggressively this year, increasing its employees from 85 to 150.

Rent the Runway Gets $15 Million From Kleiner Perkins to Be the Netflix of Fashion

Tricia Duryee — Mon, 23 May 2011 14:45:09 +0000

Rent the Runway is a New York-based start-up that lets you look like a million bucks while spending much less.

Think of it as the Netflix for fashion.

The 18-month-old company lets you rent high-end dresses and accessories for special occasions. It even gives you the prepaid envelope to send it all back when you are done–no dry cleaning necessary.

If you didn’t know better, you would have thought Rent the Runway starred in the hit movie “Bridesmaids.” That’s because there are dresses for most occasions, even a wedding that you aren’t willing to break the bank over.

Rent the Runway was founded by two Harvard Business grads, Jennifer Hyman and Jennifer Fleiss, and is announcing today that it has raised $15 million in venture capital from Kleiner Perkins Caufield & Byers. The funding follows a first round by Bain Capital Ventures and Highland Capital totaling $16 million. Aileen Lee, a partner at Kleiner Perkins, will join Runway’s board.

On the site, women browse from 25,000 dresses from 95 designers, such as Dolce and Gabbana and Vera Wang. Next, they enter a date for the event and their dress size. After that, you make a reservation, and can even get a back-up size free, so you don’t have to worry about it fitting on the big night.

Rental prices vary depending on the price of the dress. For example, a knee-length dress from Sachin + Babi rents for $125 and retails for $660. But a $2,250 peach-colored dress from Nina Ricci rents more than twice that at $300. In general, the colors and styles seem endless.

The investment will allow Rent the Runway to offer a wider selection of brands and price points. It also will go toward some of the less glamorous work, such as beefing up its back-end systems to handle future growth and pay for new warehouses outside of New York City (coming in January 2012).

If the model doesn’t already sound like the mail-order DVD rental business, the company is willing to draw the comparison itself. In a release, it said it will also be personalizing the shopping experience “using proprietary algorithms rivaling that of Netflix.”

So far, the company claims to already have more than one million members.

Part of its business proposition is also exposing women to new brands.

In that way, Fleiss, the company’s president, says the company can be used as a marketing and customer acquisition channel for its partnering brands. In a release, she said, “Ninety-eight percent of our customers are trying brands they’ve never before worn. We are introducing experiential brand marketing into the fashion industry–not just a onetime transaction–which is the power behind Rent the Runway.”

CafeMom Launches Daily Deals and Plans Hispanic Moms Site

Kara Swisher — Wed, 04 May 2011 12:27:36 +0000

CafeMom, a social-networking and community site aimed at mothers, is expanding its offerings to daily deals, as well as announcing an anticipated launch of a site aimed at Hispanic moms.

The deals effort has just been launched under the killer URL of Mom.com and will first be available in the Northern New Jersey area.

The sales force, which will presumably compete with armies of sales people from social buying phenoms such as Groupon and LivingSocial, will be made up of local moms in these markets.

The “Mamas Latinas” site–which is still unnamed–will be run by former People en Español publisher Lucia Ballas-Traynor, who has just been hired by CafeMom.

In an interview yesterday, its co-founders Michael Sanchez and Andrew Shue said the New York-based CafeMom was aiming at another major growth spurt.

Said Shue of the effort so far: “It’s just two dads trying to create the definitive mom’s site.”

There is a lot of competition in the space, such as iVillage, which is more broadly aimed at the lucrative women’s space.

But CafeMom had attracted attention too and had considered a number of acquisition offers last year, before deciding to expand its service on its own.

Last summer, in fact, Yahoo and several other companies expressed interest in the possibility of acquiring CafeMom.

After considering a variety of offers, said Sanchez, who is CEO of CafeMom, “We think we have a unique opportunity to grow ourselves and not for someone else.”

The company has been knocking around for a long time in Internet terms, morphing from a sister company owned by CMI Marketing called ClubMom back in the Web 1.0 days.

CMI, which was also founded by Shue and Sanchez, finally got two big fundings in 2008 totaling $24 million, from venture firms such as Highland Capital Partners and Draper Fisher Jurvetson.

Moving from what was essentially a glorified bulletin board for moms, it has added content and other social-networking tools and games.

For example, it recently launched a blog and content platform named “The Stir.”

Shue and Sanchez said the main CafeMom site now has 7.6 million million unique monthly visitors on its main site and almost 21 million on its overall network of affiliated sites.

The pair said that CafeMom is profitable, with 100 employees. It now has revenue of about $36 million annually.

Here’s the official press release about the Hispanic moms site:

CafeMom, the #1 site for moms with more than 7MM monthly visitors, to launch new website for Hispanic Moms

Outgoing publisher of PEOPLE en Español announced as co-founder.

New York, New York May 4, 2011–CafeMom announced its plans to launch a web destination catering to Hispanic moms in the coming months, to be co-founded by Lucia Ballas-Traynor, a Hispanic marketing veteran and the just-departed publisher of PEOPLE en Español. As part of its market research, CafeMom conducted a major national study of Hispanic moms, across the acculturation spectrum, and found that 92% of Hispanic moms believe there is not currently a website that clearly serves their needs.

“There is currently a huge gap online in serving Hispanic moms,” said CafeMom CEO, Michael Sanchez. “By 2014 one in four moms online will be Hispanic, and advertisers are increasingly looking for ways to reach this key segment. The site represents a tremendous opportunity, both to add value to millions of moms’ lives and to deliver unique integration possibilities to the brands that are most committed to the Hispanic market.”

CafeMom conducted a nationally-representative study of Hispanic moms fielded in both English and Spanish with a well-respected third party research vendor. The study showed Hispanic moms are underserved online, and are also eager to connect with each other. 79% of Hispanic moms said they wanted to connect with other Moms who share their culture, heritage, and life experiences.

Co-founder Lucia Ballas-Traynor brings her 25 years experience in Hispanic media, and has been at the helm of leading Hispanic media brands such as Univision’s Galavision, MTV Tr3s and most recently People en Español, the largest selling Hispanic magazine in the U.S.

“Our plan is to leverage CafeMom’s expertise in community, content, and strategic programs for leading brands and combine it with a world class leadership team that has a deep understanding of Hispanic moms and media,” said Sanchez. “As part of this effort, we are excited to bring Lucia on to the team. She has a proven track record in delivering for consumers and advertisers alike.”

“I’m thrilled to be working with CafeMom on this,” says Ballas-Traynor. “CafeMom is uniquely positioned to deliver this opportunity as an authority on moms. I’m confident that we can create something that will add real value to the lives of millions of Hispanic moms.”

Gemvara Raises $15 Million for "User-Generated" Jewelry Making

Tricia Duryee — Wed, 23 Mar 2011 12:00:38 +0000

Gemvara, which sells jewelry online that’s designed by the customer and shipped to their home, has closed a $15 million round of capital.

The third round of capital was led by Balderton Capital, with participation from existing investors Highland Capital Partners and Canaan Partners. Previously, Gemvara raised roughly $10 million in capital.

The company said it plans to use the cash to expand its merchandise selection and to provide better customer service.

In the release, Mark Evans, a partner at Balderton Capital, made the bold statement that he believes Gemvara can become the world’s first billion-dollar user-generated product company.

Needless to say, the company declined to comment on its current revenues. Still, Gemvara’s CEO and Founder Matt Lauzon said the company is growing at a fast rate.

Gemvara, which has 40 employees, launched a year ago in February. Headquartered in Lexington, MA, the company said its average order size is close to $1,000.

What’s unusual is that the company has virtually no inventory of finished products because everything is custom made. The customer picks the metals and stones or gems of their choice, which is then illustrated in photo-like quality renderings. The jewelry is hand-made in the U.S., and shipped within three weeks of being ordered.

Spanish Private-Sales Site Privalia Expands to Germany Via Acquisition

Tricia Duryee — Mon, 07 Mar 2011 23:46:04 +0000

The online private-sales retailer Privalia, which operates in Spain, Italy, Brazil and Mexico, is buying Germany’s Dress for Less. Reuters said that according to its sources, Privalia paid between $210 million and $280 million. On Monday, Privalia raised roughly $123 million from private equity firms General Atlantic, Highland Capital Partners, Index Ventures and Insight Venture Partners to fund the transaction, which also included debt and shares. Together, Privalia is forecasting that they will achieve triple-digit revenue growth this year to around 400 million euros. In December, eBay purchased Germany-based brands4friends for $200 million.

SCVNGR Rewarded With $15 Million From Investors

Tricia Duryee — Tue, 04 Jan 2011 13:30:55 +0000

SCVNGR has raised $15 million in venture capital to continue building a mobile app that is part Foursquare and part FarmVille.

The third round was led by Balderton Capital, with existing investors Google Ventures and Highland Capital Partners also participating. To date, the company has raised roughly $20 million.

SCVNGR lets users check-in to locations using their Android phone or iPhone, much like Foursquare does. The gaming component is that users earn rewards by participating in challenges that are often designed to bring gaming elements to real life.

A challenge may be something as easy as scanning a QR code or checking in, or as complicated as making origami art out of leftover foil from a burrito (and then taking a picture to prove it). A reward may include a discount from a local retailer or restaurant, or even a free cup of coffee (perhaps for multiple check-ins).

Seth Priebatsch, who calls himself the chief ninja of SCVNGR, says the capital comes after a year of achievements for the Cambridge, Mass.-based company.

After its first consumer-based apps launched this summer, it garnered half a million users after 20 weeks and is coming up on one million users soon. That builds on its enterprise business, which allows local businesses, universities, museums and others to create their own challenges for their customers or students. Those businesses often must license the software from SCVNGR.

UPDATE: Priebatsch declined to say what the company’s valuation was in the round, but TechCrunch reports that it is hearing from one source that it was raised at a valuation of just over $100 million.

Priebatsch said the capital will support the 51-employee company’s growth, and will also be spent on exploring international opportunities and the development of further game mechanics that can make the apps more fun, rewarding and entertaining. The app will also soon come to the BlackBerry platform.

Priebatsch argues he’s building something much more compelling than a pure check-in app. “The appeal of a check-in as a standalone entity is really compelling for only a small portion of the total audience out there. This is something fun, unique, and something social. That’s a no-brainer.”

PepsiCo Unveils Winners Of New Start-Up Incubator Program

Ty McMahan — Mon, 13 Sep 2010 19:59:35 +0000

PepsiCo Corp. (PEP) set out in June to find 10 relatively unheard of start-ups to put it on the cutting edge of digital media and social marketing.

Now the company has announced the winners of the inaugural PepsiCo10, an incubator program that matches technology, media and communications entrepreneurs with PepsiCo brands for pilot programs set to launch in the coming months. PepsiCo is working with the companies to tailor its marketing message to their technologies.

PepsiCo partnered with venture capital firm Highland Capital Partners to pick the companies from among 500 applicants.

“This could be a company-maker if you’re a young company,” Highland Senior Vice President Michael Gaiss said.

Gaiss said Highland has already met with several of the companies selected. No investments have been made, but conversations are ongoing, he said.

Read the rest of this post on the original site

SCVNGR's Seth Priebatsch Talks About Geolocation Wars, Facebook Places and More!

Kara Swisher — Mon, 30 Aug 2010 16:00:09 +0000

Last week, SCVNGR integrated its third-party social geolocation game service into the Facebook Places mega-location offering.

As it turned out, BoomTown was in Beantown–as in Boston–for a lovely wedding, so I took some prenuptial time to visit SCVNGR’s HQ in Cambridge, Mass., to talk to its founder, Seth Priebatsch.

In the launch last week, SCVNGR was one of a series of start-ups in the geolocation arena–such as Foursquare and Gowalla–that announced their cooperation with the giant social networking site’s effort to include their services into the offering using its social graph APIs.

SCVNGR’s take in the geolocation race is to allow users to do check-ins, complete challenges and earn points for rewards on mobile devices such as Apple’s (AAPL) iPhone and Google (GOOG) Android devices.

The idea came from an entrepreneur competition the high-energy Priebasch won as a freshman at Princeton University, which he left soon after to found SCVNGR.

It has raised about $5 million in funding from venture outfits such as Highland Capital Partners and Google Ventures–an investment that only adds to the irony here, since the search giant itself is about to launch a new social service to compete with Facebook.

Here is the video interview with Priebatsch, as well as a tour of SCVNGR’s HQ, in which we talk all about this and also how he hopes to differentiate his service from the pack:

[ See post to watch video ]

Resistance Is Futile: SCVNGR Integrates With Facebook Places

Kara Swisher — Fri, 27 Aug 2010 14:00:28 +0000

SCVNGR, the mobile-social game, seems to be one of the first of many third-party social games to integrate with Facebook’s new Places location feature.

In the launch last week, a series of start-ups in the geolocation arena announced their cooperation with the social networking site’s effort to include their services into the offering using its social graph APIs.

As BoomTown wrote about the appearance of several of these companies at the event:

Up trotted Gowalla’s CTO and Co-founder Scott Raymond, who showed off Gowalla and Facebook integration.

Then a Foursquare exec–not [Founder and CEO Dennis] Crowley, who has apparently checked in at a Chipolte in New York at the time of the places launch–loped up to say how great it all is. Just great! Really! Frankly, what else would the Foursquares say at this point.

Next: Yelp dude. Great! Just great! Integration! Check-in and pull your Facebook friends into the Yelp app.

Of course, it would not be a set without Booyah’s Keith Lee. Loves it! Fun! Just great!

This felt like a slow-moving version of invasion of the geo-location snatchers, a parade of glassy-eyed hostages, some scurvy mates walking the platform plank. Aaaaarrrr.

All joking aside, given the power of Facebook, these companies need to piggyback on its location efforts.

SCVNGR’s take in the geolocation race is to allow users to check in, complete challenges and earn points for rewards.

It has raised about $5 million in funding from venture outfits such as Highland Capital Partners and Google Ventures–an investment that only adds to the irony here, since Google (GOOG) itself is about to launch a new social service to compete with Facebook.

Here is the press release from SCVNGR, which is located in the Boston area:

SCVNGR Launches Facebook® Places Integration

SCVNGR Check-ins and Challenges Can be Posted To Facebook and Shared with Friends

Boston–August 27, 2010–SCVNGR, the mobile-social game all about going places, doing challenges, earning points and unlocking awesome rewards, announced its integration with Facebook Places today. SCVNGR is among the first location-based mobile games to build and launch with the Facebook Places feature of the Graph API.

Starting today, activity completed on SCVNGR–such as checking in and doing challenges at your favorite places–can be tied to physical locations, integrated with Facebook Places, and shared with friends on Facebook. Photos snapped and shared as part of playing SCVNGR can now be streamed in your location-based activity feed.

Similarly, social activity happening at that place on Facebook will stream back to users via their SCVNGR app for the most up-to-date social snapshot of what’s going on around them. The integration introduces the fun of doing challenges and unlocking rewards on SCVNGR to the hundreds of millions of people on Facebook.

“What Facebook brings to the location-based space is nothing short of phenomenal,” said Seth Priebatsch, SCVNGR’s Chief Ninja. “It adds huge scale by bringing social location features to more than 500 million people. SCVNGR is leveraging this to distribute our premium social gaming content–people doing fun and interesting challenges at places, building such challenges and earning rewards–directly through the social graph.”

SCVNGR is as much a mobile social game as it is a full-fledged mobile gaming platform. Users, businesses and enterprises build on the game layer by adding challenges and rewards to their favorite places. Everyone who plays SCVNGR can also build SCVNGR. This makes the game layer fun, unique and in a state of constant flux, where users build (and re-build) the game at places all across the United States. By integrating with Facebook Places, SCVNGR is tying this game layer directly to the social layer by tapping into the world’s largest social platform.

You can play SCVNGR anywhere in the U.S. via the free SCVNGR app for Android or iPhone. To grab the app, start playing and unlock awesome rewards, visit www.scvngr.com.

Exclusive: Yahoo Eyes CafeMom for $100 Million Acquisition

Kara Swisher — Tue, 17 Aug 2010 17:14:23 +0000

According to numerous sources, Yahoo is eager to close a deal to acquire CafeMom, a social-networking and community site aimed at mothers, in a move aimed at turbocharging its often-meandering strategy in the important women’s space.

The price being offered, said sources, is hovering at $100 million, about the same amount Yahoo (YHOO) recently forked over for Associated Content.

The deal might not happen, of course, but several sources said the pair have been deep in negotiations in recent weeks.

CafeMom, sources said, has wanted to hold out for a higher price of closer to $200 million or more. Other interested buyers include Disney (DIS), sources added.

The New York-based CafeMom has been knocking around for a long time in Internet terms, morphing from a sister company owned by CMI Marketing called ClubMom back in the Web 1.0 days.

CMI, which was founded by Andrew Shue and Michael Sanchez, finally got two big fundings in 2008 totaling $17 million, both from Highland Capital Partners and Draper Fisher Jurvetson.

Sanchez is CEO, but Shue–known for his BoomTown-approved role as the endearingly whiny Billy (But, Alllllliiiisoooonnnn…) on the original “Melrose Place”–is also deeply involved.

On its Web site, the company claims it has 6.7 million unique visitors on its main site and 18.7 million more on its network of affiliated sites, with 100 million page views.

CafeMom said on its Web site that it was profitable, and sources said its revenues were about $25 million to $30 million annually.

Moving from what was essentially a glorified bulletin board for moms, it has added content and other social-networking tools and games.

For example, it recently launched a blog and content platform named “The Stir”–no, really, it is called that.

A recent article on the sassy blog was titled “Parents Who Smuggle Babies Into R-Rated Movies: Ballsy or Crazy?”

(Ballsy, IMHO! You could go crazy enduring only “Cats & Dogs: The Revenge of Kitty Galore,” as I can testify. You need some “Salt” in your diet.)

This kind of content offering is all in Yahoo’s wheelhouse, of course, as it seeks to reinvigorate itself by bringing in new talent and brands.

In the women’s space, Yahoo has its Shine site, which is very pretty but in desperate need of a social boost that CafeMom can presumably provide.

Yahoo’s head of M&A Andrew Siegel–Andrew, don’t be scared of me! Call, I don’t bite! Only rarely, that is!–also reportedly took a strong look at Sugar, an innovative San Francisco women’s site. But the start-up declined to sell.

The women’s market is a big one for advertisers, with many competitors–from iVillage to AOL (AOL) to a recent effort by Demand Media to reach women using a site created with supermodel Tyra Banks.

Yahoo declined to comment, but a PR spokeswoman said in an email that “women are an important audience and our Shine site is very successful.”

Calling from Minneapolis, where he and Sanchez were visiting General Mills (GIS) and Target (TGT) about advertising deals, Shue declined to comment, though very charmingly (and very unlike the mumble-mouthed Billy).

Exclusive: Apple to Buy Quattro Wireless for $275 Million

Kara Swisher — Tue, 05 Jan 2010 03:37:13 +0000

Apple is set to announce that it has acquired Quattro Wireless for $275 million, several sources confirmed.

The announcement of the acquisition might come as soon as tomorrow, upping the ante in the mobile advertising business significantly.

Google (GOOG) recently forked over an astonishing $750 million for Silicon Valley’s AdMob, a Quattro competitor, which Apple (AAPL) had also made a bid to acquire.

Both innovative start-ups are aimed squarely at the fast-growing market to advertise on smartphones, such as Apple’s iPhone and Google’s Android devices.

In fact, the search giant will unveil the Nexus One tomorrow, a mobile phone powered by its Android operating system software, which Google designed and will sell on a Web site instead of via telecom companies.

Waltham, Mass.-based Quattro has raised close to $30 million from two main venture investors–Highland Capital Partners and Globespan Capital Partners. Founded several years ago, its clients include Ford (F), Disney (DIS) and the National Football League.

Competitors in the space are many still, despite these big acquisitions, and include Millennial Media and Jumptap, both of which are now clearly in play to other players, from telecoms to other device makers to big Internet companies.

An Apple spokesperson declined to comment to BoomTown about the deal and email inquiries to Quattro have not yet been returned.

Back to the Future: AOL Goes Local With Two Acquisitions (Including CEO's Company)

Kara Swisher — Thu, 11 Jun 2009 16:29:55 +0000

Adding the final leg of its new strategy to reinvigorate AOL, the Time Warner online unit said it was buying two small local start-ups, Patch Media and Going.

Each acquisition–which focuses on hyperlocal community news (Patch) and events (Going)–is small, about $10 million.

Ironically, local has previously been a big arena for AOL, which launched its Digital City unit with great fanfare more than a decade ago. AOL still runs Digital City, as well as its CityGuide listing offering.

But, in a move that will surely be scrutinized, Patch is a company whose principal investor has been AOL’s new CEO Tim Armstrong. AOL declined to say how much he had invested in the company, but sources said it was less than $5 million.

Armstrong addressed the issue in an internal memo to staff about the deal, noting he would forgo any profits from the AOL transaction for Patch and get back the seed money he put into the start-up in the form of AOL shares:

“On a personal note, I was an early investor in Patch and committed significant dollars to the vision of improving local communities with deeper online information, accountability through journalism, and a platform for communicating. In discussing our local strategy, AOL and Time Warner looked at Patch as a possible acquisition and I recused myself from that process. At the Time Warner negotiated acquisition price, I was in a position to earn a return on my investment in Patch. However, I have decided to forgo any profit from my seed investment in Patch and I have asked to receive just my seed capital in AOL shares once we separate from Time Warner.”

The New York-based Patch is a platform that does deeply localized coverage of communities about a range of topics, from announcements to news to events to obituaries. It is aimed at competing with local newspapers and other media.

In another interesting twist and blast from the past, Boston-based Going was funded–its last investment was $5 million in mid-2007–by two Web 1.0 portal execs, George Bell of Excite and Bob Davis of Lycos.

Both are now venture capitalists–Bell at General Catalyst Partners and Davis an Highand Capital Partners.

Going, which was originally called HeyLetsGo.com, connects its users with events and each other in a variety of big cities, such as San Francisco, Boston, Chicago and New York.

The focus on local will round out Armstrong’s new push for innovation at AOL, the final piece of his ongoing 100-day evaluation of the much-beleaguered company.

Armstrong has been busy in that time in making massive changes to the structure of AOL, sweeping aside its current set-up almost completely as it prepares for a spinoff from Time Warner (TWX).

That spinoff was announced recently and will result in AOL becoming a standalone company.

AOL’s new business strategy under Armstrong includes keeping its longtime access business, which many thought would be sold off, and putting many of the companies it has recently acquired–including its pricey Bebo social-networking site–in a separate ventures unit, which will try to attract outside investment.

The strategy will focus AOL on several key areas, including access, media/content, “scaled” advertising and communications, and now, local.

Local is also a big focus for players like Yahoo (YHOO) and Microsoft (MSFT) again. Yahoo CEO Carol Bartz specifically mentioned adding more community news, especially about local sports, to its offerings, in an onstage interview two weeks ago with me at the seventh D: All Things Digital conference.

Here’s the internal memo and press release about Patch and Going below:

AOLers –

Our strategy to win in the five areas we’ve discussed starts with innovation and passion. Of the five areas, Local remains the largest white space and offers us an ability to improve the lives of many consumers. It’s a space that’s prime for innovation and an area where we already have strength with a local network that reaches more than 54 million UVs a month and a valuable brand in mapping services, MapQuest.

Our vision isn’t just about optimizing what we have–it’s about overhauling how we approach this space, drawing on our legacy of connecting communities and our long history of organization through DMOZ. It’s about taking one of the most disaggregated experiences on the Web today and making it truly quick and easy for consumers to find the local information they need.

Today, we’re announcing two acquisitions that will enable us to better serve audiences by providing experiences that are highly focused on users’ own neighborhoods–Patch and Going.

Patch.com was built to provide local towns with a robust and interactive platform to publish news and information, with full-time journalists for each town covering government affairs, education issues, and community events. One of the AOLers in our All Hands meeting on May 29 asked what our plan is to help towns, like his, where the local newspaper has gone out of business. Patch is an acquisition that may eventually help that town. Under the leadership of co-founder and CEO Jon Brod, Patch has been able to launch five initial town sites since February and has just announced four additional communities. Moreover, Patch has already received over 230 user requests for “Patches” spanning 39 states and 12 countries.

The second acquisition is a small company located in Boston–Going. Going has developed a local events platform to discover and share information about things to do in a number of leading cities across the country. Under the leadership of CEO Evan Schumacher, Going has launched sites in 30 cities–including New York, Chicago, Los Angeles and Miami–and provides users with RSVP tools and advertisers with self-service event advertising.

On a personal note, I was an early investor in Patch and committed significant dollars to the vision of improving local communities with deeper online information, accountability through journalism, and a platform for communicating. In discussing our local strategy, AOL and Time Warner looked at Patch as a possible acquisition and I recused myself from that process. At the Time Warner negotiated acquisition price, I was in a position to earn a return on my investment in Patch. However, I have decided to forgo any profit from my seed investment in Patch and I have asked to receive just my seed capital in AOL shares once we separate from Time Warner.

Overall, I believe both Patch and Going will add strength and talent to our local efforts and give us an ability to have a unique and defendable local offering that helps people improve their lives. I’m excited that we’ve reached the stage where we can begin implementing in our five key strategy areas, and with today’s announcements we’re off to a great start in Local.

Please join me in welcoming the employees of Patch and Going to AOL and the future of AOL Local. –TA

AOL Acquires Two Local Services, Patch and Going

Acquisitions Add to AOL’s Leading Network of Local Services with a Community-Specific News and Information Platform and a Local Event Platform

NEW YORK, NY–June 11, 2009–AOL today announced two acquisitions in the local space: Patch Media Corporation, http://www.patch.com, a local news and information platform aimed at serving local towns and communities and Going, Inc., http://www.going.com, a local platform for people to discover and share information about things to do in a number of leading cities across the country. Both Patch and Going offer local experiences, content and self-service applications for consumers and advertisers.

“Local remains one of the most disaggregated experiences on the Web today–there’s a lot of information out there but simply no way for consumers to find it quickly and easily,” said Tim Armstrong, AOL’s Chairman and CEO. “It’s a space that’s prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest. Going forward, local will be a core area of focus and investment for AOL. The acquisitions of Patch and Going will help us build out our local network further with excellent local services that enable people to stay better informed about what’s going on in their neighborhood.”

The acquisitions extend AOL’s network of local services, the largest online local network,* reaching more than 54 million total unique visitors per month.** Both acquisitions also leverage a consumer and marketplace trend toward greater consumption of news and information online.

A recent survey by the Pew Research Center for the People & the Press found that more people now say they get most of their news from online sources than from traditional newspapers (40% vs. 35%).***

In addition, local searches grew 58% in 2008 year over year, while overall searches climbed just 21%, according to research conducted by the Yellow Pages Association in March 2009.

Local advertising (online and offline) represents an approximately $103 billion market (approximately 39% of total U.S. ad spending), according to Borrell Associates in 2009.

Founded in December 2007 and headquartered in New York, Patch combines localized, professional journalism with community contribution and a platform that puts all town assets online – in effect, digitizing the community. Patch, which expects to be available in a dozen communities by the end of the year, currently has “Patches” in five communities with four more in development.

“We are excited to join the AOL family,” said Jon Brod, CEO of Patch. “AOL’s substantial network will help us extend the reach of Patch into more and more communities. And Patch, as part of AOL’s local strategy, will create new opportunities for AOL to delight consumers and provide marketers access to highly targeted and deeply engaged audiences.”

Launched in September 2006 and headquartered in Boston, Going is one of the leading local communities for 20-somethings looking for things to do in cities across the country. Going is available in 30 leading U.S. cities, including New York, Los Angeles, Chicago, Miami and Boston, with several more planned this year. Going also provides local promoters, event organizers and venues a fully automated, self-service RSVP, ticketing and advertising engine to maximize the attendance and value of their events.

“Going allows young people in leading cities to discover upcoming events, parties and new hot spots – and most importantly connect with others who share a similar lifestyle. By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the U.S. and around the world,” said Evan Schumacher, Going’s CEO.

“AOL has a legacy of connecting people to the content, community and services they care most about,” said Armstrong. “Patch and Going, combined with our existing network, will enable the company that got America online, to connect consumers around the globe to their communities online.”

* April 2009 U.S. comScore Media Metrix; Local Networks category is a custom built category by AOL.
** Custom AOL-defined Local Networks report, based on comScore U.S. Media Metrix Audience Duplication report (April 2009).
*** Pew Research Center for the People and the Press, “Internet Overtakes Newspapers as News Outlet,” December 2008.

Digg Dugg: $28.7 Million

John Paczkowski — Wed, 24 Sep 2008 18:29:52 +0000

Digg, the social news site that’s long been rumored to be up for sale, has raised $28.7 million in a Series C venture round led by Highland Capital Partners. Existing backers Silicon Valley Bank, Greylock Partners and the Omidyar Network also participated.

“Today is a big day for Digg,” CEO Jay Adelson wrote on the company blog. “We’re announcing a major expansion effort–the largest we’ve undergone in our history. With a new round of funding, we’re accelerating many of the programs that we’ve been working on over the past several months, including investments in infrastructure, new feature development, international expansion and hiring all the people we need to get there.”

As noted by Adelson, Digg will put some of the funds toward the rollout of an international growth strategy in early 2009.

Not exactly the sort of announcement you’d expect from a company rumored to be the prize in a bidding war between Microsoft (MSFT) and Google (GOOG). But then maybe it’s trying to drive its asking price back up to $300 million from the more realistic $200-$225 million figure recently batted around.

Question is: is Digg worth that much?

Highland Capital Partners' Bob Davis Speaks!

Kara Swisher — Thu, 10 Apr 2008 07:19:31 +0000

In BoomTown’s ongoing meet-the-VCs-and-cringe series, here’s a chat I recently had with Highland Capital Partners’ Bob Davis.

I have known Davis for a long time from his previous life as Co-Founder and CEO of Lycos, the then-third-placed portal and one of the shooting stars from Web 1.0.

And I would have to say he cracked me up more than most, for his relentlessly cheery promotion of Lycos, which always dwelled in the shadow of Yahoo (YHOO) and Excite, despite Davis’s best efforts.

In this video, Davis talks about the upcoming boom in mobile apps and the hype over Facebook by making a salient comparison to Lycos’s acquisitions like Tripod and Angelfire (remember when those were the Web’s big hotties?!?), as well as the need for more focus on sustainability among start-ups.

Best of all, Davis reveals what happened to Lycos, the dog mascot!

Here’s the video:

[ See post to watch video ]

The Tech 10: Wal-Mart Goes DRM-Free, MTV and RealNetworks Confront iTunes and a 'Moviestar' Is Born

John Sullivan — Tue, 21 Aug 2007 17:00:13 +0000

Note: John Paczkowski is on vacation and won’t be writing or posting videos until he returns Monday.

To keep you abreast of tech news while he’s away, we’re compiling a daily digest of 10 must-read tech stories. We’re calling it the Tech 10 and it appears below.

Retailing behemoth Wal-Mart will sell digital-music downloads on its Web site without copy protection, Reuters reports. The so-called digital-rights management software insisted on by some record labels can stymie where the average user plays the songs.
Taking on the juggernaut of iTunes, MTV and RealNetworks are forming an online digital music venture called Rhapsody America. According to The Wall Street Journal, Verizon Wireless has signed on as mobile distributor of the joint content.
Adobe Systems’ warhorse Flash Player is getting a makeover named “Moviestar.” The update, says InfoWorld’s Paul Krill, will bring high-definition video technology to downloads, affording clearer and smoother playback of images.
Increasingly popular online video site Metacafe got a shot in the arm in the form of $30 million in financing. VentureBeat reports that the latest cash infusion was led by new investors Highland Capital Partners and DAG Ventures.
Acknowledging it did bad (though not evil), Google announced last night that it would make credit-card refunds, rather than Google Checkout credits, to those owed after the company terminated its download-to-own/rent service of Google Videos. PC Magazine disclosed that the search giant will also allow users an additional six months to watch the videos they have already downloaded.
Fretting over security and productivity concerns, half of all companies in a recent survey are blocking employees’ access to Facebook. The poll of 600 workers by online security firm Sophos also found that two-thirds of all employees believe their colleagues are revealing too much information on the social-networking site, exposing them to cybercriminals bent on data theft and their companies to network hackers.
Bebo, the U.K.-centric social-networking site, has announced a partnership with Microsoft on a new instant-messaging service. According to Webware, the Windows Live Messenger hookup is only that–and not a signal of any impending acquisition.
Joining the social-networking parade, online business network CollectiveX has launched Groupsites. According to Michael Arrington of TechCrunch, the new product opens up the buttoned-down service to allow users to create social profiles as well.
Upping the ante in the competition for giving laptop users more memory, Toshiba announced today that it will release a 320-gigabyte hard drive for its laptops by the end of the year. According to IDG News Service, for users of multimedia laptops–where storing video is paramount–the extra space will come as a welcome feature.

In a bow to color choice and the sexes, researchers have found that there’s truth in the the time-honored (if sexist) adage that girls like pink, boys like blue. Reporting on a study from two scientists at Newcastle University, the Independent did not confirm whether the findings were borne out in colors chosen by men and women for iPod skins.

–posted by Associate Editor John Sullivan

The Tech 10: Wal-Mart Goes DRM-Free, MTV and RealNetworks Confront iTunes and a 'Moviestar' Is Born

John Sullivan — Tue, 21 Aug 2007 17:00:13 +0000

Note: John Paczkowski is on vacation and won’t be writing or posting videos until he returns Monday.

To keep you abreast of tech news while he’s away, we’re compiling a daily digest of 10 must-read tech stories. We’re calling it the Tech 10 and it appears below.

Retailing behemoth Wal-Mart will sell digital-music downloads on its Web site without copy protection, Reuters reports. The so-called digital-rights management software insisted on by some record labels can stymie where the average user plays the songs.
Taking on the juggernaut of iTunes, MTV and RealNetworks are forming an online digital music venture called Rhapsody America. According to The Wall Street Journal, Verizon Wireless has signed on as mobile distributor of the joint content.
Adobe Systems’ warhorse Flash Player is getting a makeover named “Moviestar.” The update, says InfoWorld’s Paul Krill, will bring high-definition video technology to downloads, affording clearer and smoother playback of images.
Increasingly popular online video site Metacafe got a shot in the arm in the form of $30 million in financing. VentureBeat reports that the latest cash infusion was led by new investors Highland Capital Partners and DAG Ventures.
Acknowledging it did bad (though not evil), Google announced last night that it would make credit-card refunds, rather than Google Checkout credits, to those owed after the company terminated its download-to-own/rent service of Google Videos. PC Magazine disclosed that the search giant will also allow users an additional six months to watch the videos they have already downloaded.
Fretting over security and productivity concerns, half of all companies in a recent survey are blocking employees’ access to Facebook. The poll of 600 workers by online security firm Sophos also found that two-thirds of all employees believe their colleagues are revealing too much information on the social-networking site, exposing them to cybercriminals bent on data theft and their companies to network hackers.
Bebo, the U.K.-centric social-networking site, has announced a partnership with Microsoft on a new instant-messaging service. According to Webware, the Windows Live Messenger hookup is only that–and not a signal of any impending acquisition.
Joining the social-networking parade, online business network CollectiveX has launched Groupsites. According to Michael Arrington of TechCrunch, the new product opens up the buttoned-down service to allow users to create social profiles as well.
Upping the ante in the competition for giving laptop users more memory, Toshiba announced today that it will release a 320-gigabyte hard drive for its laptops by the end of the year. According to IDG News Service, for users of multimedia laptops–where storing video is paramount–the extra space will come as a welcome feature.

In a bow to color choice and the sexes, researchers have found that there’s truth in the the time-honored (if sexist) adage that girls like pink, boys like blue. Reporting on a study from two scientists at Newcastle University, the Independent did not confirm whether the findings were borne out in colors chosen by men and women for iPod skins.

–posted by Associate Editor John Sullivan