There’s no question that every venture capitalist within 100 miles of Silicon Valley wanted to squeeze their khaki-clad selves into what had become tech’s hottest deal of late.

That would be to get a piece of the new round of funding for start-up phenom Pinterest.

But while piles of VCs and other investors tried to work every angle possible to noodge into the action, the iconoclastic CEO and co-founder Ben Silbermann decided to go big and go global by hooking up with a Tokyo-based Internet giant.

Japan’s Rakuten will invest upwards of $50 million in a $100 million round that values the social bookmarking site at $1.5 billion.

Rakuten is one of the largest online commerce companies in the world, with a flagship site Rakuten Ichiba, among others. It was founded in 1997 and had revenue of $4.7 billion in 2011.

Most important in Pinterest’s calculation was apparently the link with its CEO Hiroshi Mikitani, whose nickname is Mickey. One the richest men in Japan, Mikitani is one of the best known entrepreneurs there where he’s been described as “Richard Branson meets Jeff Bezos.”

I briefly chatted with Mikitani last night about why he decided on the Pinterest deal, in a conversation where he focused a bit on Rakuten’s famed “omotenashi” or “empowerment” philosophy. Simply put, the concept is that — unlike an Amazon — Rakuten is a facilitator of commerce, much like its shopping mall metaphor beginnings. The approach is to aid merchants rather than compete with them.

It’s a little eBay, a little Alibaba, some Etsy and even a little Amazon Web Services mixed in. It’s also a place that can move retail globally, which is presumably the attraction to it by Pinterest.

ATD: Why did Pinterest pick you?

Mikitani: We are not a venture capitalist. We got together and talked about our story and our history.

We agreed that we shared a vision of the future of Internet e-commerce.

ATD: Why make an investment?

Mikitani: When we started to talk about being involved in the round of investment, we wanted to invest as much as possible.

We were very impressed by their business model and also the management style.

ATD: What made Pinterest so attractive in comparsion to other similar companies?

Everyone is talking about social commerce and best solution to social commerce, but Pinterest really was the first to use graphics that well to connect with people.

Rarely have we seen such a powerful media and we were seeing huge traffic coming from Pinterest [to Rakuten sites]. It was much higher than anyone else.

ATD: What do you bring to the table?

Mikitani: I think there are some things we think we can do with our expertise. Ben and his team have an extremely strong commitment to make their products as attractive as possible.

But we have 40,000 stores in Japan and we can give them access to our customers and do aggregation to engage in everything. And we have sites in many other countries too.

ATD: How are you going to work together?

Mikitani: We are not going to stop them from doing dealings with other e-commerce companies. But we can have more constructive input on how to make their site more effective from e-commerce point of view.

This is a long-term arrangement and we have a strong committment and attachment to this business. We truly understand their business and respect their management.

The funding is expected to be announced tomorrow morning.

(Update: Rakuten confirmed the deal in a press release, which is below.)

The Tokyo-based Internet giant will invest upwards of $50 million in a $100 million round that values the social bookmarking phenom at $1.5 billion.

There might be other individual investors in the new round, but those were still to be determined tonight by Pinterest co-founder and CEO Ben Silbermann.

(Correction: We previously reported it was a $120 million round, but sources said it is $100 million. It’s possible more could still be added, as we heard conflicting accounts.)

While the latest round of funding for Pinterest has been the most hotly sought of late in tech circles, one source said Silbermann was looking for a global strategic investor and had talked to several large Asian companies.

Said one source on why he settled on Rakuten: “He just really liked them.”

The current investors in Pinterest, which is a social collection site where users can “pin” their interests via a handsome graphical interface, include Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital, as well as several well-known angel investors. That group had valued the company at $200 million last October, and are joining the new round pro rata.

Founded in 2008, Pinterest had previously raised a little under $40 million in funding.

It’s interesting that the latest round was not led by an institutional investor, since everyone and their mother wanted in on the deal. Sources said no new venture capital firms were included in the round and that is the way Pinterest’s quirky leadership wanted it.

Sources said Silbermann has been concerned with Pinterest’s global growth as well as fending off international clones, and was looking for a partner with which the start-up could work closely.

“Ben did not want any more VCs,” said one source. “He wanted an investor that moved the company forward.”

Rakuten will presumably help advise Pinterest on turning their pretty pictures into purchases, as commerce is already starting to emerge naturally on the site.

It’s a good choice of partners in that regard. Rakuten is one of the largest e-commerce companies in the world, with a flagship site Rakuten Ichiba. It was founded in 1997 and had revenues of $4.7 billion in 2011. Its CEO is Hiroshi Mikitani, whose nickname is Mickey.

One the richest men in Japan, Mikitani is one of the best known entrepreneurs there; he has been described as “Richard Branson meets Jeff Bezos.”

Earlier today, The Next Web reported that the funding was coming this week and said the company was looking at international partners, but it did not name Rakuten.

Rakuten Leads Investment In Pinterest

Global social commerce pioneer takes stake in online sharing service

TOKYO, May 17, 2012 – Rakuten, one of the world’s largest online marketplaces, today announced that it is leading a $100M investment in Pinterest, with participation from existing investors Andreessen Horowitz, Bessemer Venture Partners, and FirstMark Capital, as well as a number of angel investors.

The funding will allow Pinterest to continue improving its service and expanding its community globally. The investment also marks the start of a strategic partnership between Rakuten and Pinterest to help expand in Japan and into Rakuten’s 17 other global markets.

Hiroshi Mikitani, CEO of Rakuten said: “While some may see e-commerce as a straightforward vending machine-like experience, we believe it is a living process where both retailers and consumers can communicate, discover, and curate to make the experience more entertaining. We see tremendous synergies between Pinterest’s vision and Rakuten’s model for e-commerce. Rakuten looks forward to introducing Pinterest to the Japanese market as well as other markets around the world.”

Ben Silbermann, co-founder and CEO of Pinterest, said: “Our goal is to help people discover things they love, by connecting people through their shared interests. Bringing Rakuten on board gives us an amazing opportunity to move a step closer to this goal.”

Rakuten ranks among the top 10 internet companies in the world. Among its numerous online properties, its flagship B2B2C (business-to-business-to-consumer) model e-commerce site Rakuten Ichiba is the largest e-commerce site in Japan and among the world’s largest by sales. Its global presence has been reinforced through the acquisitions of leading online marketplaces Buy.com (US), Priceminister (France), Ikeda (now Rakuten Brasil), Tradoria (now Rakuten Deutschland) and Play.com (UK), and investments in Ozon.ru and AHA Life. Whereas other marketplaces may compete directly with sellers, Rakuten’s model seeks to empower merchants to deliver Omotenashi, a Japanese high service mindset, which helps sellers create lasting relationships with customers.

And here’s a video of Kara pontificating away on the subject for WSJ.com’s “Digits” show:

According to several sources close to the situation, investors are being told that the IPO price range for Facebook will be from $34 to $38 a share.

That means the highest valuation will be just over $100 billion, fully diluted.

That is up from a much lower price of close to $31 a share last month, in filings related to its pending acquisition of photo-sharing start-up Instagram. Recent ranges have been pegged between $28 and $34.

Earlier today, reports surfaced about the possible rise in price, but it was slightly higher from $35 to $40.

The higher price is an indication that some reports last week saying there was weak investor interest were, well, wrong.

The official pricing for the blockbuster offering of the social networking site will take place Thursday, sources confirmed, with a public offering on Friday under the “FB” ticker symbol on the Nasdaq market.

It has been relatively quiet there in the Utah desert ever since, which is odd, because it had been such a chatty company, throwing parties to kill old outdated identities, holding complicated math contests to guess its new name, things like that.

Now it’s about to get noisy again. Effective today, you’re going to start hearing a lot more from Domo and from its employees, and not because its new product is ready. Not quite. (James tells me the company will be talking about it this summer.)

No, starting today, all employees — everyone in the company — will be required as a condition of employment to get seriously engaged on social media in all its various forms in order to make Domo part of the wider conversations taking place on Twitter and Facebook and Foursquare and Pinterest and the rest. It’s called the #Domosocial experiment, and will last eight weeks. James puts it thusly in a post on the company blog:

“The program is designed to get everyone here engaged with and learning from consumer and social technologies. The goal is to help us develop a better product, understand the viral nature of web offerings more effectively, assist in getting the Domo brand out there, enable better customer conversations and see what impact it all has on our business.”

Part of the intent, James told me, is a matter of geography and culture. Being based in Utah, Domo employees are probably better than their equal numbers at other Utah start-ups when it comes to being facile with the ebb and flow of the daily global conversation that takes place on all the social spaces. But they’re probably not as familiar with it all as their rivals in Silicon Valley.

James has seen this sort of thing before. He started Omniture in Utah in 1996 and by 2009 sold it to Adobe for $1.8 billion. “With Domo, I wanted to ensure that we are every bit as adept at understanding and leveraging social as any other bleeding-edge startup,” he wrote.

But on top of that, he’s turning the effort into a live case study to see just how much of a difference it makes in Domo’s business prospects, if any. The company will track important metrics and share them with the world. “We’ll track how things change week after week. The good, the bad and the ugly, it’s all going to be public,” he told me.

Though not about everything. There’s a list of “don’ts.” Don’t tweet about deals in the pipeline, don’t debate with or quarrel with the boss on Facebook. Don’t post about meetings or leak financial information.

What do employees stand to benefit? The best among them will be getting cash rewards for their performance, extra days off, that sort of thing.

What does he expect? He’s been exploring social media pretty seriously for the last six months, and occasionally now gets stopped in the local mall by people who recognize him. “You start having influence in ways you didn’t before,” James told me. He learned with a 10-page article he shared on Twitter, where he has about 12,000 followers, that he experienced a 15 percent click-through rate. “The influence will increase dramatically,” he told me. Also, Domo’s development team will have their eyes opened to the finer points of what works and what doesn’t with social features that are under development at Domo. “We don’t want to re-invent what Facebook and Twitter did, but if you’re not intimately familiar with how those things work, then how can you learn from their mistakes?”

Since launching in August, Belly has signed up 1,400 merchants in eight markets, and is adding an average of 100 more merchants each week. Additionally, it has more than 200,000 active users, who have checked into business more than 800,000 times.

The business draws a little bit from Foursquare, because it requires users to check in to earn points; and also draws a little bit from Groupon, because of its focus on local commerce.

But Jeff Jordan, a partner at Andreessen Horowitz, argued that Belly is not at all like Groupon. “It’s the anti-Groupon,” he said. “Groupon is doing lead generation through discounting. … What Belly is trying to do is loyalty.”

The difference, Jordan said, is that Belly doesn’t require merchants to offer discounts to get consumers to come back.

For example, a Chicago comic book store owner is letting shoppers punch him in the stomach; a Washington, D.C., Ben & Jerry shop is giving away a chance to eat ice cream with Jerry after 200 visits; and a barber is handing over the clippers to frequent customers, who will shave off his own beard.

Jordan, the former chairman and CEO of OpenTable and former president of PayPal, said there are four reasons why he was attracted to the start-up:

1. The management team: Founder and CEO Logan LaHive previously worked at Redbox, and before that, Pay By Touch, the biometrics payments company that raised $350 million in capital before failing.
2. Product execution: Jordan said both merchants and customers like the product. Merchants must install an iPad at the register, where consumers can check in to earn points by scanning a bar code from their phone or a loyalty card.
3. DNA of the investors: Before Andreessen Horowitz got involved, LaHive incubated the company in the offices of Lightbank, the VC fund created by Groupon founders in Chicago. Jordan believes that the one who gets to market fastest will win in this market. Belly has that in its DNA.
4. Connected retailers: Once retailers have an iPad in every store, there will be additional opportunities for Belly to roll out other services.

LaHive said the capital will be used to fuel expansion into new markets and to develop new services. To date, the company has raised $13 million.

Belly charges merchants $50 to $100 a month for the service, which includes an iPad, a case and lock for the iPad, marketing materials, and data and analytics to manage their business better.

Belly @ Berry Austin from Bellycard.com on Vimeo.

Code Advisors is getting a $25 million investment from financial services giant JPMorgan Chase for a minority stake in the Silicon Valley-based boutique investment bank and advisory firm.

The influx of cash will allow Code to grow quicker, said Quincy Smith, one of the firm’s founders, which also include Michael Marquez and Fred Davis.

The non-exclusive deal, the two firms said, is the natural extension of a longer-term relationship that has been developing for a while.

“To the extent that the money means we are getting even closer together, that’s great,” said Smith in an interview earlier today. “This solidifies a partnership that has existed for some time.”

Plus, it presumably also gives each what the other cannot offer clients. Usually a big bank might try to kill or buy a firm like Code, so this move is unique.

“We are growing our business and getting access to next-generation entrepreneurs that Code knows well,” added Kurt Simon, co-head of Technology, Media and Telecom Banking at J.P. Morgan. “And it’s a sign of continued investment in our important West Coast businesses.”

Indeed, J.P. Morgan has been competing with Goldman Sachs and Morgan Stanley for a higher profile in Silicon Valley. It recently was selected with the pair as one of the lead bankers in the upcoming Facebook IPO. It has also worked recently with LinkedIn, Skype and Pandora.

Code has taken on smaller deals with a range of hot start-ups and entrepreneurs, which was one of the attractions for J.P. Morgan. That includes representing Spotify and LivingSocial, and making investments in Path and Flipboard.

“For J.P. Morgan, it’s like making an limited partner investment in another venture firm,” said Smith. “And for us, we can offer a lot more services to our clients as they grow.”

As part of the deal, Jes Staley, CEO of J.P. Morgan’s investment bank and a member of the firm’s operating committee, will become a non-voting observer on Code’s board.

Here’s the full press release on the deal:

CODE ADVISORS ANNOUNCES A $25 MILLION INVESTMENT FROM JPMORGAN CHASE

San Francisco May 3, 2012 — Code Advisors announced today that JPMorgan Chase (NYSE: JPM) has agreed to make a $25 million minority investment. Jes Staley, CEO of J.P. Morgan’s Investment Bank and a member of the firm’s Operating Committee, will also act as a non-voting observer at Code’s Advisory and Investor Board meetings.

“We are thrilled that JPMorgan Chase has decided to invest in Code Advisors,” said co-founder Quincy Smith. “This transaction demonstrates how together we might energetically adjust to serve the new needs of entrepreneurs and companies. The chance to work more closely with Jes and his team gives us awesome global and experienced perspective.”

J.P. Morgan’s investment and relationship will allow Code to accelerate its growth opportunities and allow each team to offer complementary services to their respective and shared clients.

“Identifying and supporting great ideas early in their development is particularly important in the technology space,” said Staley. “Code continues to uniquely identify next generation companies, and together we are excited to help those entrepreneurs grow and expand their businesses.”

Large private equity firm Silver Lake is buying a large stake in powerful Hollywood talent agency William Morris Endeavor Entertainment, which is being described as a way to turbocharge its digital efforts.

While the pair would not disclose any financial details of the deal, which they are calling a “strategic partnership,” sources said Silver Lake is acquiring 31 percent of WME.

“Over the years, we have been brick-building, as we have been doing more and more digitally,” said Patrick Whitesell, co-CEO of WME with Ari Emanuel, in an interview today. “But the opportunities are so vast, there is a need for more capital to do more.”

Whitesell and Emanuel said they had been considering a range of investors, especially among media entities, but that they wanted to work with Silver Lake since it had more digital experience as an active investor in technology.

Skype, for example, was the driver of the sale of Internet telephony giant Skype to Microsoft for $8.5 billion, while WME reps stars such as Matt Damon and Hugh Jackman, among others.

“In addition to capital, we really wanted a partner that to help us build it out that had more technology expertise,” said Emanuel. “We are good with brands and creative and talent, but there are many more Silicon Valley opportunities.”

In fact, WME has long tried to up its digital portfolio to respond to the needs of its clients and the changing nature of entertainment distribution as consumer Internet use has exploded. That’s included a digital advertising effort, as well as one in online gaming.

Silver Lake, which has most recently looked at investing in Yahoo, it was a chance to get closer to a trove of premium entertainment content.

“You have two forces at play, ubiquitous distribution and four billion people connected,” said Silver Lake’s Egon Durban. “As that distribution has been commoditized, the only way to differentiate is through A-plus content.”

Along with the core investment, WME and Silver Lake said they will also be considering other possible deals together as they move forward.

“There is nothing we like more than handing our best partners more money,” said Durban, who will join WME executive committee and also help create a technology advisory counsel at the firm.

Calling Marc Andreessen! Actually, in an interesting factoid, it was the well-known tech investor and entrepreneur who introduced Durban to Emanuel.

But this movie has been shown before and is not the first Hollywood-tech hookup to happen. A variety of efforts have waxed and waned over the years — most of which have largely been underwhelming.

Last year, for example, Accel Partners invested $40 million in Legendary Pictures and, back in 2008, Accel, the then William Morris Agency and AT&T formed an investment consortium to focus on Southern California start-ups.

Most closely related was the 2010 deal, in which TPG Capital took a 35 percent stake in Creative Artists Agency.

Here is the official press release on the Silver Lake-WME deal:

WME Press Release_5 02 12_FINAL

Spencer Platt | Getty Images News

According to sources close to the situation, Starbucks Chairman and CEO Howard Schultz and Accel Partners’ Kevin Efrusy will be stepping down from the board of Groupon.

Schultz’s departure will be effective today, but Efrusy — who was critical to the initial funding around the Chicago-based daily deals site — will not be standing for re-election at the company’s annual meeting in June.

The departures are voluntary, but sources said the pair will be replaced by two new directors with significantly more fiscal oversight experience, whom one source characterized as “accounting types.”

(Update: Groupon just posted a press release noting the board departures, with the names of the new board pencil pushers: Daniel Henry, CFO of American Express, and Deloitte Vice Chairman Robert Bass. Henry joins immediately in Schultz’s place. Full press release below.)

It is a move that is critical, given Groupon’s recent series of missteps around its financial reporting that have hurt both its reputation and, more importantly, its stock.

Interestingly, several sources noted that Schultz almost left the board right before Groupon’s public offering last fall, after several ongoing disputes with its management, but stayed on so as not to scuttle its IPO.

The board of the company has not involved itself as prominently in the accounting messes at the company, but it appears as if they will begin to now.

It must, given Groupon shares have been trading at a low of $11. Its stock has dipped to $10.98 today.

As Tricia Duryee wrote recently about the fall:

At that price, it is now worth just over $7 billion, down 57 percent since the company went public last November and well off the more than $10 billion it was valued at as tech’s hottest start-up of 2011.

Ironically, Groupon’s current market valuation is actually not much more than the $6 billion offered for it by search giant Google in late 2010.

The fall of Groupon has been swift, from the honorific of being the fastest-growing company ever to one that cannot keep control of that runaway growth.

That’s perhaps no surprise.

Perhaps most significantly, Groupon went public in just four years, delivering the biggest tech IPO since Google.

The quicksilver move was typical for it. In just two years’ time, the company ballooned from 37 employees to 9,625 and from serving five markets in the U.S. to 175 in North America alone. And that’s leaving out massive expansion abroad. In the past year, Groupon has acquired roughly 17 companies, including many international copycats.

The company also has entered many new segments, expanding from selling lower-priced and simpler deals on restaurants and spas to more complex and pricey arenas, including travel, physical goods and luxury items.

But Groupon is now learning that its original business does not work across just any segment, especially to more discerning customers of its higher-level and more expensive offerings.

In fact, it was those newer and potentially more lucrative markets that forced the company recently to revise the company’s fourth-quarter report after returns skyrocketed on luxury items, such as Lasik eye surgery.

The problems forced Groupon to lower revenue in the period by $14.3 million and net income by $22.6 million. It is now reporting a wider net loss of $64.9 million on revenue of $492 million, pushing it further away from its goal of profitability.

The company also disclosed at the time that independent auditors had noted “material weakness” in its financial controls. In addition, The Wall Street Journal reported that the Securities and Exchange Commission was examining Groupon’s revision. 

With many companies, investors might have shrugged off such accounting issues, but the impact on the stock has been greater since they are only the latest in a string of similar mistakes at Groupon.

In its pre-IPO period, for example, Groupon was forced to restate revenues after counting both its portion of the revenue and the revenue that goes to the merchant together. It also had to dump a controversial accounting metric that made the company look more profitable than it was, because it did not include important costs, such as critical online marketing expenses to attract new customers.

Those came after the company retracted a statement by Eric Lefkofsky, Groupon’s co-founder and executive chairman, who told Bloomberg in an interview that Groupon would be “wildly profitable.”

At least the wild part was accurate.

Much of the blame for these missteps by Wall Street is being aimed at CEO and co-founder Andrew Mason, the iconoclastic 31-year-old entrepreneur who is largely responsible for defining the company’s culture, as well as Jason Child and Joe Del Preto, the chief financial and accounting officers, respectively.

Child joined the company in December 2010, coming from Amazon, where he held several roles over a 10-year period — including VP of finance, international, and director of investors relations. Prior to joining Amazon, he worked at Arthur Andersen as a certified public accountant.

Del Preto has been Groupon’s chief accounting officer for the past year and, before that, he was the company’s global controller for three months. Before Groupon, he was controller and VP of finance at Echo Global Logistics and also served as controller at InnerWorkings, the same company where Mason was a computer programmer in his early career.

Mason, of course, is the best known and the person most responsible for establishing the company’s whimsical culture and managing — or mismanaging, depending on how you look at it — Groupon’s hard-charging growth.

It will also be up to him to turn it all around, as the company sinks in both value and investor regard. Since the restatement, Mason has said little about how he intends to do that. In February, when Mason concluded Groupon’s first-ever earnings call, he said: “Thanks, guys, this was a lot of fun, and I look forward to many more of these.”

It’s not clear fun will be on the agenda at his next outing on Groupon’s first-quarter call in mid-May.

Here is the official press release from Groupon on the board changes:

Groupon Appoints Two Directors to Board Daniel Henry, CFO of American Express, and Robert Bass, Vice Chair of Deloitte

CHICAGO — (BUSINESS WIRE) — Groupon, Inc (http://www.groupon.com) (NASDAQ:GRPN) today announced that Daniel Henry, the chief financial officer of American Express Company and Robert Bass, a vice chairman of Deloitte LLP will join its Board of Directors. Both will serve on the Audit Committee with Audit Chair, Ted Leonsis. Daniel Henry was appointed to the Board on April 26, replacing Howard Schultz, who has stepped down from the Board. Robert Bass will stand for election at the annual stockholder meeting to be held on June 19 following his retirement from Deloitte, replacing Kevin Efrusy, who will not stand for reelection at that time. “With their deep financial, accounting and operational experience, Dan and Bob will provide invaluable expertise to the Board going forward,” said Eric Lefkofsky, Groupon Chairman.

Daniel Henry, 62, has been the Chief Financial Officer of American Express Company since October 2007. Henry is responsible for leading American Express Company’s finance organization and representing American Express to investors, lenders and rating agencies. He has also served as Executive Vice President and Chief Financial Officer of U.S. Consumer, Small Business and Merchant Services and joined American Express as Comptroller in 1990. Prior to joining American Express, Henry was a partner with Ernst & Young.

Robert Bass, 62, has been a vice chairman of Deloitte LLP since 2006, and a partner in Deloitte since 1982. He will retire from Deloitte on June 2, 2012. Bass has specialized in e-commerce, mergers and acquisitions and SEC filings. At Deloitte, Bass is responsible for all services provided to Forstmann Little and its portfolio companies and is the advisory partner for Blackstone, DIRECTV, McKesson, IMG and CSC. He has also previously been the advisory partner for priceline.com, RR Donnelley, Automatic Data Processing, Community Health Systems and Avis Budget. He is a member of the American Institute of Certified Public Accountants and the New York and Connecticut State Societies of Certified Public Accountants.

“I’m thrilled to have been a part of Groupon’s development,” said Kevin Efrusy. “The Company is well on its way to becoming the operating system for all local commerce.”

“Howard and Kevin helped guide us on our journey to becoming a public company and I want to thank them and acknowledge their contributions,” said Groupon CEO Andrew Mason.

“During my tenure on the Board, I was impressed by the game-changing opportunities that Groupon has delivered for both merchants and customers on a global scale,” said Howard Schultz. “Groupon has a strong sense of mission and purpose, and as I move on to focus on my other time commitments, I wish them the very best.”

Facebook filed an updated version of its S-1 public offering document today, which included somewhat disappointing first-quarter financials.

In the new filing with the Securities and Exchange Commission, its fourth update for its upcoming public offering, the social networking giant’s revenue was $1.058 billion, up 46 percent for the year, but down six percent from the previous quarter.

In the first quarter of 2012, Facebook’s net income was $205 million, which was down from $233 million a year ago. The company attributed the decline to rising costs, including in marketing and in research.

Facebook also said its current share price was $30.89 each, which values the entire company at about $77 billion.

Some investors might worry about the latest results, which show a slowing in Facebook’s torrid growth. But Facebook said the quarterly decline was due to seasonality — it was flat in the same period a year ago.

As it noted in the document:

“We believe that our rates of user and revenue growth will decline over time. For example, our revenue grew 154% from 2009 to 2010, 88% from 2010 to 2011, and 45% from the first quarter of 2011 to the same period in 2012. Historically, our user growth has been a primary driver of growth in our revenue. We expect that our user growth and revenue growth rates will decline as the size of our active user base increases and as we achieve higher market penetration rates.”

Its audience, though, was still growing strongly: Facebook also said it had 532 million daily active users, up from 372 million a year ago and 483 million in December. Its monthly active users were up from 680 million last year to just over 900 million and up from 845 million from December.

Facebook also added an explicit figure for average revenue per user, which was $1.21, up six percent year over year. It also said the number of full-time employees grew 46 percent from last year to 3,539 at the end of March.

The last update to Facebook’s regulatory filing for its mid-May IPO was in late March. That one gave investors more information about a patent infringement lawsuit waged by Yahoo — Facebook noted its counter claim in the newest filing — and also its motion to dismiss Paul Ceglia’s legal attempt to garner half of the company. It then included more information about growing engagement by users of the social networking site.

Along with some other minor changes in the new document, Facebook noted, in news that was already known, that it would trade its stock on the Nasdaq market under the ticker symbol “FB.” It also said it had bought photo-sharing start-up Instagram, another piece of old news, and noted its just-struck patent deal with Microsoft.

One new detail about Instagram: Facebook forked over “approximately 23 million shares of our common stock and $300 million in cash” to buy it.

Also, said Facebook, in an interesting new section on its global business:

“In the first quarter of 2012, 50% of our revenue was generated by users in the United States and Canada, a decrease from 54% of our revenue for the first quarter of 2011, and in 2011, 52% of our revenue was generated by users in the United States and Canada, as compared to 58% in 2010, as we experienced more rapid revenue growth in markets such as Germany, Brazil, Australia, and India.”

Here is the whole updated file, if you want to peruse yourself:

4thfbs1update

Here’s a video of an interview I did last week with CNN, on whether there was a bubble in valuations of start-ups in Silicon Valley.

Of course, the report was prompted by the mobile photo-sharing phenom Instagram’s recent sale to social networking giant Facebook for $1 billion.

My conclusion: It’s not a bubble exactly, but it is bubble-ish.

Enjoy:

As many readers know, we have been adding to our staff here at AllThingsD, most recently in our new reviews section, with the addition of Lauren Goode earlier this year.

Now Walt Mossberg and I are proud to announce that Mike Isaac is joining our team to cover the social Web and its biggest players, including Facebook, Twitter and Google+.

He comes to ATD most recently from a staff writer position at Wired, where, among many other things, he spent much of his time writing about Google’s mobile and social efforts.

From 2010 to 2012, his coverage at Wired included the decline and fall of Hewlett-Packard’s mobile empire, Google’s surprise acquisition of Motorola Mobility, and Facebook’s steady trudge toward IPO-hood.

Prior to that, he wrote about the business of tech for Forbes magazine and Forbes.com, with a particular emphasis on start-ups and social. His work has also appeared in Paste magazine, Performer magazine, DNR magazine and the Washington Examiner.

Isaac holds a degree in English literature from the University of California at Berkeley, and is a former Georgetown University journalism fellow.

He takes over the social beat from Liz Gannes, who will be stepping up our coverage of the many businesses of Google, innovation, venture investing and the start-up scene — especially its bigger companies, from Pinterest to Quora to Dropbox. Gannes, as everyone who follows her knows well, has become a key observer of Silicon Valley and its players, and her insights into the tech scene have become one of our most invaluable offerings.

We’re excited for both of them, and look forward to their stellar work on our site.

Another very interesting company I stumbled across in a funky building in Hollywood on my recent trip to Los Angeles is Gobbler, which bills itself as a “high-speed file transfer & backup for pro audio.”

In other words, a hopped-up version of Dropbox’s media-in-the-cloud efforts for cool music folks.

Armed with just over $3 million from angel investors like Sky Dayton, David Goldberg and others, the start-up is aiming to help media creators who need a lot more firepower, including backing up, transferring and organizing hefty music, video and photo files.

CEO Chris Kantrowitz knows whereof he speaks, as a designer of big music shows, including Coachella, the annual festival which takes place this weekend and next. He co-founded Gobbler with his sister, former Myspace exec Jamie Kantrowitz.

Here he is in a video interview with me talking about the future focus of the company, as well as where cloud storage is headed — Kantrowitz is one hep dude, so listen up:

]]> http://allthingsd.com/20120411/l-a-stories-scarfing-up-big-media-at-gobbler-video/feed/ 0 http://allthingsd.com/20120409/facetagram-instabook-whatever-you-call-it-all-your-photo-are-belong-to-facebook-for-1-billion/ http://allthingsd.com/20120409/facetagram-instabook-whatever-you-call-it-all-your-photo-are-belong-to-facebook-for-1-billion/#comments Mon, 09 Apr 2012 19:20:59 +0000 Kara Swisher http://allthingsd.com/?p=194502

If you want a quick analysis of why Facebook would pay $1 billion for popular photo-sharing service Instagram, please ignore the obvious financials that just don’t add up at all and have most of the typically unshockable digerati shocked by the sheer amount of the price.

Actually, it’s pretty simple: Photos. Photos. And, oh yes, mobile photos — lots and lots and lots of them.

Astonishingly, Facebook users already upload an average of more than 250 million images daily, making it the most popular photo-sharing service on the Web.

But it’s not the best by far and not the most mobile, which is Facebook’s biggest weakness — that has been accomplished many others, especially Instagram, the favorite of power users who scoffed at Facebook’s weak tools. (The horror of no filters!)

Now — instead of all those billions of juicy digital photos snapped by an ever-growing legion of smartphone users loading up to the beautifully designed Instagram mobile app and living on the servers of the small San Francisco-based start-up — Facebook has now captured all these memories for its massive social networking site.

And while $1 billion seems an awful lot to pay for that privilege — Twitter is quaking with “OMG!” and “Wow!” and “WTF!” tweets about the acquisition — this is apparently priceless for Facebook in a deal that went down quickly and quietly in recent weeks.

That and the fact that the huge sum prevented Instagram from being scooped up by Google.

It’s a clear signal from CEO and co-founder Mark Zuckerberg — who rules all product efforts at the company — of his intent to dominate all innovations that have to do with owning the social experience.

Because while many Instagram photos quickly made their way onto Facebook — sharing on the service, as well as on Twitter, was a big part of the app’s offering — the future of the Menlo Park, Calif.-based company is tied to having control over key elements of the user experience.

Of all of those — communications, status updates, content linking — it has been photos that have become perhaps the most important part of Facebook, almost since its beginnings.

Photos are what allowed Facebook to grow so quickly and what made it more than just a blue sea of text and links to consumers. Its new Timeline depends on big, pretty photos, and Facebook even recently announced that it would allow full-screen viewing of high-resolution photos on its Web site, a pricey endeavor.

So, perhaps it was inevitable that Zuckerberg would pay up for Instagram, too — he knows a good entrepreneurial success when he sees one and apparently has the power to convince start-ups that he can make their bigger dreams come true.

Whether or not Instagram ever makes money is perhaps beside the point at this moment in time, as Facebook is poised to go public at 100 times the amount it forked over for Instagram.

But that it considers such a purchase worth as much as one percent of its expected valuation says a thousands words. And most of those words are “mobile” and “photo.”

As Ben Jacobs noted on Twitter: “Kodak goes bankrupt and Instagram is worth a billion dollars. 2012, y’all.”

Indeed. And, I have no doubt if Zuckerberg could figure out a way to shove all those Kodak moments from analog snapshots onto Facebook easily, he’d have paid up for that, too.

]]> http://allthingsd.com/20120409/facetagram-instabook-whatever-you-call-it-all-your-photo-are-belong-to-facebook-for-1-billion/feed/ 0 http://allthingsd.com/20120409/l-a-stories-whats-the-frequency-for-web-video-discovery/ http://allthingsd.com/20120409/l-a-stories-whats-the-frequency-for-web-video-discovery/#comments Mon, 09 Apr 2012 16:04:19 +0000 Kara Swisher http://allthingsd.com/?p=194172

Earlier this year, Peter Kafka wrote an update about Los Angeles-based Frequency, which is essentially a social TV Guide for online video.

I stopped by Frequency’s HQ — on a recent visit there to check out SoCal start-ups — to chat with its founder and CEO, Blair Harrison, who created and sold iFilm to Viacom several years ago, and to talk about how the Web video hub is doing, even in the face of a range of video-recommending competitors. That includes big-dog Google, which is both a rival and a partner via YouTube and its niche channels.

But, with a slick interface, which Harrison has compared to Flipboard for online video, Frequency is an interesting effort. Here’s the interview I did with him:

]]> http://allthingsd.com/20120409/l-a-stories-whats-the-frequency-for-web-video-discovery/feed/ 0 http://allthingsd.com/20120406/aileen-lee-lauches-kleiner-backed-seed-fund/ http://allthingsd.com/20120406/aileen-lee-lauches-kleiner-backed-seed-fund/#comments Fri, 06 Apr 2012 17:14:36 +0000 Kara Swisher http://allthingsd.com/?p=193961

Kleiner Perkins Caufield & Byers partner Aileen Lee is founding a new seed fund — still unnamed — that is focused on backing and helping develop early-stage start-ups.

Lee, who has been at the famed Silicon Valley venture firm for a dozen years, will remain a partner at Kleiner Perkins, although her full focus will be on the fund. While she declined in an interview this morning to say what the size of the new fund will be, most such efforts range from $10 million to $70 million.

Along with Kleiner, there will be several other unnamed investors and strategic partners, said Lee, who is in a quiet period of fundraising and could not give more details. It will be separate from Kleiner.

“I read a book that said you should make a big change every seven years, and this was an area of investing that I really have wanted to be in,” said Lee, who at Kleiner has backed companies such as One King’s Lane, Rent the Runway and Dollar Shave Club. “I really have become very interested at working with and helping entrepreneurs at the early stages of their growth.”

KP’s John Doerr said that while some VC firms are creating their own high-profile seed funds, he and Lee felt it was important for such an investment vehicle to be independent to be effective and also to work with other seed efforts that have exploded on the tech scene.

“But we wanted to invest in it, so it’s the best of both worlds,” he said. “It’s really important that start-ups at that stage get the kind of attention Aileen can give them.”

According to her bio on KP’s Web site, Lee worked at the Gap before her VC life, as well as Odwalla and the North Face. The MIT and Harvard Business School grad also worked at Morgan Stanley in technology mergers and acquisitions.

]]> http://allthingsd.com/20120406/aileen-lee-lauches-kleiner-backed-seed-fund/feed/ 0 http://allthingsd.com/20120404/l-a-stories-mike-jones-and-peter-pham-talk-about-the-science-of-tech-studios/ http://allthingsd.com/20120404/l-a-stories-mike-jones-and-peter-pham-talk-about-the-science-of-tech-studios/#comments Wed, 04 Apr 2012 20:27:00 +0000 Kara Swisher http://allthingsd.com/?p=193100

While swanning about Los Angeles last week, I paid a visit to a number of interesting techies, including Mike Jones and Peter Pham, who recently founded Science.

While there are a lot of incubators and accelerators out there fiddling with start-ups, the pair of well-known entrepreneurs are calling this venture a “technology studio.”

By that, they mean that Science will do a lot more, from coming up with in-house ideas to investing some of their $10 million in backing to advising on how Silicon Valley should look at investments in Southern California to even taking on restructuring of larger entities.

Science investors include Rustic Canyon, White Star Capital, the Social+Capital Partnership and Google Executive Chairman Eric Schmidt’s Tomorrow Ventures, and it also has relationships with private equity firms for the bigger stuff.

The focus of Science, as the pair discusses below in a video interview, will be in three arenas: The intersection of content and commerce, social and mobile, and location.

As longtime entrepreneurs and Internet execs, Jones and Pham know those arenas, both the pluses and the minuses.

Jones tried his best (and, like others, failed) with the Myspace revival and also founded and sold Specific Media, Userplane and Tsavo Media.

Pham was recently helming the high-profile and controversial Color photo-sharing start-up in Silicon Valley and did stints at both BillShrink and Photobucket (a former News Corp. property, as was Myspace. News Corp. owns this Web site.).

Here’s my chat with them about their sun-dappled dreams of SoCal tech hegemony via their Santa Monica, Calif., HQ:

]]> http://allthingsd.com/20120404/l-a-stories-mike-jones-and-peter-pham-talk-about-the-science-of-tech-studios/feed/ 0 http://allthingsd.com/20120404/another-science-start-up-wittlebee-gets-2-5-million-in-funding-for-kids-clothes-club/ http://allthingsd.com/20120404/another-science-start-up-wittlebee-gets-2-5-million-in-funding-for-kids-clothes-club/#comments Wed, 04 Apr 2012 16:00:30 +0000 Kara Swisher http://allthingsd.com/?p=193027

Wittlebee, a monthly kids’ clothing club that was incubated at Los Angeles area “technology studio” Science, has gotten $2.5 million in funding.

Much like another Science start-up, Dollar Shave Club, Wittlebee ships a custom box of high-quality kids’ clothes to members.

The seed round of funding was led by Rincon, with participation from SoftTech, Google Ventures, Matt Coffin, Crosslink, and Morado.

Wittlebee’s CEO and founder Sean Percival said the money would be used to create a private-label clothing line.

Wittlebee uses stay-at-home parents, who have used the site, as customer service reps. The start-up sends a new order of children’s apparel each month, including onesies, t-shirts, leggings, socks and pants, upping the sizes as the kid grows.

In other words, kind of like a never-ending online Gap.

Here’s the official press release on Wittlebee’s funding:

Wittlebee Raises $2.5 Million Seed Funding Lead By Rincon

Children’s clothing membership service to begin manufacturing private label designs to keep up with growing customer demand

Los Angeles, CA. April 4, 2012 — Wittlebee (www.Wittlebee.com), the affordable children’s clothing monthly membership service backed by technology studio Science Inc., today announces the company raised $2.5 million in seed funding leady by Rincon, with participation from SoftTech, Google Ventures, Matt Coffin, CrossLink, and Morado. Jim Andelman, co-founder and General Partner at Rincon, joins Wittlebee’s board alongside Michael Jones, founder and CEO of Science, and Sean Percival, Wittlebee’s founder and CEO.

Since launching less than two months ago, Wittlebee has experienced accelerated growth, in part because of Science’s track record of quickly scaling ecommerce businesses. The company will use the new investment to build out its executive team and user acquisitions.

Upon joining Wittlebee, customers are connected to a team of mom stylists who work with families to compose boxes of high-quality children’s clothing to meet individual children’s needs. Active kids in warm climates like Miami may receive appropriate t-shirts, shorts and socks whereas infants in Albany receive long-sleeve onesies and cozy pajamas.

“Wittlebee’s recent growth has been tremendous,” said Percival. “Our customer feedback is overwhelmingly positive; we are speaking to an audience of 20,000 highly engaged moms across social media who tell us they’re delighted we’re saving them time and money for all their children’s clothing needs. We plan to use Rincon’s investment to create Wittlebee’s private label clothing line that will truly showcase our commitment to high-quality practical children’s apparel.”

In the coming months, customers will receive a selection of parents’ favorite well-known brands in addition to Wittlebee’s private label. Manufactured both locally in Los Angeles and abroad, the new line represents customers’ wish-list of kids’ must-haves, from high-quality soft fabrics, to a wide color palate, to unique graphic designs. After months of research and testing apparel options through Wittlebee’s social networks, the resulting Wittlebee bespoke label will be a timeless array of apparel basics to carry kids through seasons, activities and all their lifestyle needs.

“For every investment decision we make, we care most about customer value proposition, team, and business model,” said Jim Andelman, Managing Partner at Rincon. “We’ve been tremendously impressed by parents’ positive response to Wittlebee’s offering: they love the selections, they save money and you can’t beat the convenience of clothes showing up right to your door. The e-commerce space is exploding in LA, and we’re very excited to be at the forefront with Wittlebee.”

For more on Wittlebee, please visit www.Wittlebee.com.

]]> http://allthingsd.com/20120404/another-science-start-up-wittlebee-gets-2-5-million-in-funding-for-kids-clothes-club/feed/ 0 http://allthingsd.com/20120403/andreessen-horowitz-gives-22m-to-flirting-site-skout/ http://allthingsd.com/20120403/andreessen-horowitz-gives-22m-to-flirting-site-skout/#comments Tue, 03 Apr 2012 12:30:33 +0000 Liz Gannes http://allthingsd.com/?p=192500 Skout, a social discovery start-up, has raised $22 million from Andreessen Horowitz. The smartphone app for flirting with nearby people has seen strong international adoption, though it isn’t sharing its total number of users. Skout used to be more like Foursquare — also backed by AH — but it got much more traction when it turned toward dating. AH also backed a flirting app called LikeALittle, which is currently revamping itself to be called Circle.

]]> http://allthingsd.com/20120403/andreessen-horowitz-gives-22m-to-flirting-site-skout/feed/ 0 http://allthingsd.com/20120330/spotifys-special-projects-head-shakil-khan-moves-to-path-to-do-same/ http://allthingsd.com/20120330/spotifys-special-projects-head-shakil-khan-moves-to-path-to-do-same/#comments Fri, 30 Mar 2012 12:00:38 +0000 Kara Swisher http://allthingsd.com/?p=191505

Shakil Khan, the well-known head of special projects for the popular Spotify music service, is taking a job with the same title at Path, the fast-growing personal social networking start-up.

Khan will be focusing on growth and international issues, and based out of London but with global duties. Path’s HQ is in San Francisco.

That’s important, since Path has been growing strongly outside its initial U.S. market, especially in Asia. In February, Path CEO Dave Morin announced that it had two million users.

In an interview last night, Khan said he will remain an adviser to Spotify’s CEO and co-founder Daniel Ek, noting that he is also an investor.

Interestingly, said many sources and also a number of reports, both Path and Spotify are in the midst of large funding rounds with hefty valuations.

In fact, Spotify is being valued at $4 billion, which was not the case when Khan came to the then-fledgling company in 2008. Taking up a job essentially as a kind of fix-it guy for Ek, he worked on a number of important initiatives, from gaining early user traction to hiring its early management to wrangling celebrities to use the service.

Khan said that he decided to leave Spotify, which has recently had a huge spurt of growth due to its recent integration on Facebook, because he has “always been a start-up guy.”

“I loved the days when people used to say, ‘What is that, how do you spell it,’” he said about Spotify. “I need those kind of butterflies, and Path is just that kind of amazing product with huge global potential.”

In an email, Path’s Morin said:

“We are beyond delighted that Shak has chosen to join the Path family as we continue our mission to build the first global personal network by helping people journal and share life with family and close friends. Shak brings a unique global perspective and skill set to Path which will help us reach and serve our members and partners across the globe in a uniquely personal way.”

And Ek, calling in from Sweden (where it is 80 degrees!), said that he was sad to see Khan go, and was also in his debt for his service to Spotify.

“I am kind of an introvert guy, and Shak is definition of social, so he was the link to the rest of the world in many ways for me and for the company,” said Ek. “So where he is going and what he will be doing at Path is perfect.”

]]> http://allthingsd.com/20120330/spotifys-special-projects-head-shakil-khan-moves-to-path-to-do-same/feed/ 0 http://allthingsd.com/20120329/li-ka-shings-horizon-ventures-bets-on-mobile-search-start-up-everything-me/ http://allthingsd.com/20120329/li-ka-shings-horizon-ventures-bets-on-mobile-search-start-up-everything-me/#comments Thu, 29 Mar 2012 19:11:30 +0000 Liz Gannes http://allthingsd.com/?p=191194 Everything.me, a mobile search provider, has taken $3.5 million in add-on funding from Hong Kong billionaire Li Ka-shing’s Horizons Ventures, known for tech investments like Facebook and Spotify.

Mobile search is somewhat up for grabs, though Apple’s Siri and Google’s general dominance will make it harder for a start-up to make a dent. What Everything.me does is shortcuts.

The service, which originally launched under the inscrutable name Do@, is currently available as an HTML5 mobile Web app. It shortcuts users directly to results that are localized, personalized and mobile-optimized.

So if you searched for “The Hunger Games,” for instance, you’d see a set of icons that take you directly the movie’s Wikipedia page, reviews on Rotten Tomatoes, trailers on YouTube, iTunes soundtrack downloads, and Fandango tickets. It’s also quick to find stuff like nearby ATMs, gas stations, or even Foursquare friends checked in within a four-mile radius. The idea is to save time and clicks on mobile.

The site is full of suggested content and searches, so it feels more like a mobile Web portal than a search engine in the style of Google.

Everything.me is based in Tel Aviv, but currently focused on the U.S. market — with native iOS, Android and Windows Phone versions in development.

The two-year-old company has more money in the bank than it has users. It now has $12.5 million from investors including Horizons and Draper Fisher Jurvetson, and some tens of thousands of beta testers.

]]> http://allthingsd.com/20120329/li-ka-shings-horizon-ventures-bets-on-mobile-search-start-up-everything-me/feed/ 0 http://allthingsd.com/20120329/snapguide-launches-how-to-app-for-teaching-and-learning-on-the-go/ http://allthingsd.com/20120329/snapguide-launches-how-to-app-for-teaching-and-learning-on-the-go/#comments Thu, 29 Mar 2012 13:01:42 +0000 Liz Gannes http://allthingsd.com/?p=191036 Snapguide today launches to the public a mobile service for creating and consuming step-by-step guides. The app helps users contribute how-tos on topics like cooking, gardening and repairs, by using a template that allows for photos, videos and supply lists.

For now, Snapguide’s main offering is an iOS app, though it also works for the Web and mobile Web. Some sample guides I found while perusing included “how to make tofu,” “how to catch Dungeness crabs” and “how to make French macarons.”

(That last one consists of 29 intricate steps, resulting in delicious and perfect-looking cookies that I’m sure I could never equal.)

Despite how intimidating some of the individual lessons may seem, Snapguide is one of those apps that feels good in the palm of your hand. It is nice-looking, functional and snappy.

San Francisco-based Snapguide, which raised $2 million in seed funding last year, is far from the first company of its kind. For instance, there are structured competitors like Mightybell and Instructables, plus all sorts of free-form recipe and DIY communities. Perhaps the biggest differentiator is that Snapguide is mobile-first.

“Creating on a device that is always on you simplifies creation and encourages real-time documentation, which is very different than coming back to something later,” Snapguide co-founder and CEO Daniel Raffel told me.

Despite the polish of their first release, Raffel and his co-founder, Steve Krulewitz, weren’t previously known for their mobile work; Raffel formerly worked on Yahoo Pipes, while Krulewitz worked on Google Chrome.

Another thing: Snapguide’s highly structured format asks a lot from its guide creators — versus something like Pinterest, where users can contribute content without doing much work.

“We’ve simplified it as much as is possible,” Raffel said. “I think people enjoy sharing the things they do. This is a visual way to do that, and it’s easy to broadcast to other social networks.”

Raffel said his goal is to make Snapguide a community “where people are learning together.”

If only I could find the time and patience to make those macarons.

]]> http://allthingsd.com/20120329/snapguide-launches-how-to-app-for-teaching-and-learning-on-the-go/feed/ 0 http://allthingsd.com/20120327/y-combinators-demo-day-gets-super-sized/ http://allthingsd.com/20120327/y-combinators-demo-day-gets-super-sized/#comments Tue, 27 Mar 2012 10:00:22 +0000 Liz Gannes http://allthingsd.com/?p=190274 Today a considerable slice of the early stage Internet technology world heads to Mountain View, Calif., to see the latest batch of Y Combinator start-ups.

“Demo Day” will be held for the first time as one grand event at the Computer History Museum, after the end-of-program affair had swelled into multiple sessions over multiple days as it outgrew the orange-walled Y Combinator offices time and again.

“YC” is the influential start-up accelerator that has produced hits like Dropbox and Airbnb and also helped reshape the start-up world around the ideal of its young, hacker-led teams. Over the years, it has become a sort of entrepreneurial grad school; in fact, YC recently announced it will start accepting applications from groups who don’t yet have a company idea.

Some 66 start-ups participated in the current session, and more than 500 angel and venture investors are scheduled to attend.

Y Combinator created a tablet-optimized portal for investors and start-ups to connect with each other before the day ends. To give you an idea of the anticipated feeding frenzy, here’s what the firm told investors: “We recommend you sign up for the online system, because the increased opportunities to meet at Demo Day may mean that some start-ups will have handshake deals for as much money as they want by the end of Demo Day itself.”

This year’s batch of companies have each already had the opportunity to raise some $168,000 while giving up a small bit of equity, and some start-ups have already launched to the public.

The group includes one founder who is on his third round at Y Combinator. That’s Justin Kan of Exec, which he called “an Uber for TaskRabbit” when we interviewed him before it launched. Kan was formerly founder of Kiko and Justin.tv, and is also a part-time partner at Y Combinator.

(Image courtesy of Flickr user brianjmatis)

]]> http://allthingsd.com/20120327/y-combinators-demo-day-gets-super-sized/feed/ 0 http://allthingsd.com/20120320/viral-video-the-parkme-dudes-booting-austin/ http://allthingsd.com/20120320/viral-video-the-parkme-dudes-booting-austin/#comments Tue, 20 Mar 2012 07:31:04 +0000 Kara Swisher http://allthingsd.com/?p=188109

ParkMe is an app that AllThingsD writer Ina Fried wrote was “the best (and worst) marketing gimmick in Austin” at the SXSW Interactive festival last week.

Simply put, the Los Angeles-area start-up used fake tickets and boots to get the word out about their app, which recommends the “cheapest and closest parking around you.”

Yes, boots in Texas. Heh.

Here is a video ParkMe did about the effort:

]]> http://allthingsd.com/20120320/viral-video-the-parkme-dudes-booting-austin/feed/ 0 http://allthingsd.com/20120312/sxsw-news-jerry-levins-startup-health-academy-for-entrepreneurs-announces-first-class/ http://allthingsd.com/20120312/sxsw-news-jerry-levins-startup-health-academy-for-entrepreneurs-announces-first-class/#comments Mon, 12 Mar 2012 18:20:44 +0000 Kara Swisher http://allthingsd.com/?p=184584

In an interesting twist on the accelerator and incubator model for entrepreneurs, StartUp Health Academy announced its first class of “healthcare transformers” today at SXSW in Austin.

StartUp Health, which is chaired by former Time Warner CEO Jerry Levin and is backed by AT&T and the California HealthCare Foundation, is backing 10 entrepreneurs who are focused on “fixing a broken healthcare system in ways that significantly reduce costs and dramatically improve care.”

Unlike programs that support start-ups, some of these companies are well on their way in terms of funding and staff. What has been missing, according to StartUp Health, are the other support functions aimed specifically at companies in the still-nascent digital health care field.

Most of all, it’s a nice break from similar groups that back companies designing apps to help people stalk each other at SXSW bars.

Here’s the press release about the 10 that were picked, who were selected from nearly 400 applications and will be part of a three-year curriculum:

StartUp Health Announces Its Inaugural Class Celebrating “Healthcare Transformers”

AT&T and the California HealthCare Foundation Provide Scholarships to the First Class of the Academy for Health and Wellness Entrepreneurship

Austin, TX — SXSW — Monday, March 12, 2012 –Today StartUp Health announced the ten “Healthcare Transformers” that will make up the inaugural class of the StartUp Health Academy for Health and Wellness Entrepreneurship. These extraordinary and passionate entrepreneurs and innovators are on a mission to solve one of the great challenges of our time: fixing a broken healthcare system in ways that significantly reduce costs and dramatically improve care. StartUp Health also announced that both AT&T and the California HealthCare Foundation will be generously providing full-tuition scholarships for the first class of Healthcare Transformers accepted into the program.

“StartUp Health represents a new model for helping innovation succeed in the health sector and is based on a simple premise,” said Jerry Levin, Chairman of StartUp Health. “The best way to transform healthcare is to support and promote entrepreneurs with ongoing inspiration, education, and access to customers, capital, and other critical resources so that innovation and growth can occur more quickly.”

“StartUp Health Academy is the first program of its kind and is based on our unique methodology and platform for supporting Healthcare Transformers,” said Steven Krein, co-founder and CEO of StartUp Health. “The Academy is structured as a 3-year curriculum with strategic thinking tools and collaborative peer groups designed to help innovators navigate the many challenges of building a sustainable growth business in the health sector. We believe there is great power in these networks and in the access we provide to the community of customers, investors, and partners we have organized to transform healthcare.”

The first class of Healthcare Transformers in StartUp Health Academy are all highly accomplished and are operating companies at various stages of the growth lifecycle. All of them have already received funding or financial backing for their venture via venture capital, angel investors, grants, or customer revenue. Five of the class are serial entrepreneurs, two are healthcare professionals, and half are located on the East Coast and half on the West Coast.

The group includes:

Sundeep Bhan is a serial entrepreneur on a mission to revolutionize the way physicians and patients leverage lab testing to make better decisions leading to improved health. Sundeep is CEO of Medivo (medivo.com), which he co-founded with Jason Bhan, MD, and Destry Sulkes, MD, and is headquartered in New York City. The company recently raised $7 Million in a Series A from Safeguard Scientifics. Sundeep’s previous company Medsite was acquired by WebMD in 2006.

Veer Gidwaney is a serial entrepreneur on a mission to improve people’s health through daily behavior change. Veer is CEO of DailyFeats (dailyfeats.com), which he co-founded along with Morley Ivers, President & COO, and Vinay Gidwaney, Chief Product Officer, and is headquartered in New York City and Cambridge, MA. DailyFeats is profitable and growing rapidly with numerous partners including Walgreens and Cigna. Veer’s previous company Control-F1 was acquired by Computer Associates in 2005.

Samer Hamadeh is a serial entrepreneur on a mission to make it easier for people to find and book appointments with alternative healthcare and wellness practitioners ranging from acupuncturists and chiropractors to massage therapists, physical therapists, and personal trainers. Samer is the Founder and CEO of Zeel Networks (zeel.com), headquartered in New York City. Zeel has raised over $1.5 million in seed funding from angel investors including Esther Dyson, Ravi Mhatre, Tim Kendall, and Matt Ocko. Samer was recently EIR at Lightspeed Venture Partners. Samer’s last venture, career site Vault.com, was acquired by private equity firm Veronis Suhler Stevenson in 2007.

Nadeem Kassam is a serial entrepreneur on a mission to reinvent how people track and manage their health. Nadeem is the Founder and Chief Alliance Officer at Basis (mybasis.com), which he manages with Jef Holove as the CEO, and is headquartered in San Fransisco. The company has raised $9 Million in a Series A from Norwest Venture Partners & DCM. Jef was previously CEO at wireless photo card maker Eye-fi and spent almost a decade at Logitech.

Hesky Kutscher is a serial entrepreneur on a mission to revolutionize and simplify the way families manage their children’s health. Hesky is Founder and CEO of MotherKnows (motherknows.com), headquartered in Palo Alto, CA. MotherKnows has raised $1.7 Million in a Series A from First Round Capital, Charles River Ventures, Giza Ventures, and Band of Angels. Hesky’s previous company Shoplocal was acquired by Tribune and Gannett in 2004. Hesky is also Chairman and founder of High Gear Media, a leading automotive content network.

Bill Scott is a Board Certified Neurotherapist on a mission to revolutionize therapeutic treatment options by giving clinicians the ability to easily and cost-effectively use neurofeedback to help patients train their brains to be more adaptive and healthy. Bill is CEO of BrainPaint (brainpaint.com), which he co-founded with Cora Scott, President, and is headquartered in Malibu, CA. BrainPaint is profitable and growing rapidly with over a 125 customers including Promises treatment centers and hospitals in 35 states and 7 countries.

Bronwyn Spira is a physical therapist on a mission to deliver mobile applications for physical therapists that transform the delivery of care. Bronwyn is co-founder and President of FORCE Therapeutics (forcetherex.com), which she founded with her husband Mark Lieberman, a serial entrepreneur and technology executive, and is headquartered in New York City. FORCE Therapeutics has raised seed funding from prominent CEO investors including Thomas Layton, John Pleasants, Joseph Varet, and Randall Winn.

David Wong, MD, PhD, is a dermatologist on a mission to make it easy and affordable for anyone to get online access to board-certified dermatologists and get immediate assistance in the diagnosis and management of skin diseases. David is CEO of Direct Dermatology (directdermatology.com), which he co-founded with Rajnish Gupta, MD, PhD, and is headquartered in Palo Alto, CA. Direct Dermatology has received funding from California HealthCare Foundation and angel investors.

Faheem Zaman is a young entrepreneur who recently left Harvard University to become one of the first Thiel Fellows and pursue his dream of rethinking healthcare by leveraging technology, data, and elegant design to make quality care more accessible. Faheem is founder of a “stealth mobile health company,” which he co-founded with Ilya Vakhutinsky, and is headquartered in New York City. Ilya brings expertise in contextual design and data visualization from his work at the Princeton Plasma Physics Laboratory. Faheem is a recipient of $100,000 from Peter Thiel and the Thiel Foundation’s “20 Under 20″ Thiel Fellowship program.

George Zamanakos, PhD, is an entrepreneur on a mission to make it easier and more affordable for pregnant women to get remote care from anywhere in the world. He is heading up a “stealth mode” initiative backed by some of the biggest visionaries in the ecosystem, and is headquartered in San Diego, CA. George has a PhD in Physics from Caltech, was an associate principal at McKinsey, and previously worked with Johnson & Johnson’s leading strategy and product development in diabetes.

The inaugural group of ten entrepreneurs represents the first of at least four classes StartUp Health will launch in 2012 and marks the beginning of its decade-long mission to help inspire, educate, and provide resources to 1,000 Healthcare Transformers as they build world-class growth companies. The entrepreneurs were selected from nearly 400 applications. The StartUp Health Academy operates on a “rolling admissions” basis and all entrepreneurs who have already applied will also be considered for subsequent classes.

“These entrepreneurs, along with their co-founders, represent a diverse group of Healthcare Transformers focusing on solutions ranging from mobile and digital health services to new diagnostic technologies and devices that will dramatically improve health and wellness and lower the cost of care,” said Unity Stoakes, co-founder and President of StartUp Health. “This group has visionary dreams and are already busy making them come true and pushing the entire ecosystem forward in the process.”

“The California HealthCare Foundation is excited to support StartUp Health on their mission to help Health Transformers grow and innovate more quickly so together we can spark innovations that can reduce the costs of healthcare and expand access to services for the underserved,” said Margaret Laws, Director of the Innovations for the Underserved Program at the California HealthCare Foundation.

“Innovation and collaboration are critical to drive changes in healthcare, and we’re pleased to support this amazing class of healthcare entrepreneurs in the StartUp Health Academy,” said Eleanor Chye, Executive Director, Mobility Healthcare and Pharma, Mobility Product Management, AT&T Business and Home Solutions. “We’re committed to helping the health and wellness ecosystem grow and support new ways that mobile technologies and smart networks can be used to improve the quality of care, reduce costs, and contribute to a healthier world.”

Anyone who wants to support the movement to help innovate in health and wellness can get involved or apply for a future class at startuphealth.com.

]]> http://allthingsd.com/20120312/sxsw-news-jerry-levins-startup-health-academy-for-entrepreneurs-announces-first-class/feed/ 0 http://allthingsd.com/20120312/forget-cleantech-its-cleanweb-at-sxsw/ http://allthingsd.com/20120312/forget-cleantech-its-cleanweb-at-sxsw/#comments Mon, 12 Mar 2012 14:00:32 +0000 Kara Swisher http://allthingsd.com/?p=182862

Earlier this week, I slogged through the rain in a very dorkish GroupMe plastic poncho at SXSW in Austin to attend what I thought was one of the more interesting sessions, titled “Why Cleanweb Will Beat Cleantech.”

Perhaps because it was not yet another creepy location app (memo to Banjo and Highlight users, please stop attempting to get me to allow you to stalk me, cuz I ain’t!), it was more sparsely attended.

But the presentation by longtime Silicon Valley entrepreneur Sunil Paul was a good one, given his premise that current information technology tools were at the heart of creating solutions around energy conservation.

The founder of Brightmail — and also the first start-up partner of Zynga CEO and founder Mark Pincus at a Washington, D.C., company called Freeloader (where I first met the pair) — thinks that clean technologies like solar can be better leveraged with Cleanweb, which he defined as the “application of information technology to resource constraints.”

In other words, more Airbnb (fewer hotel rooms mean less carbon emissions), more Zappos (fewer stores, less driving to stores, etc.) and more teleconferencing (that’s easy to grok) is evidence that the Cleanweb could be an important contributor to saving the planet.

Quoting a recent tweet he saw, Paul noted that a smartphone today has as much computing power as the computers that put a man on the moon, but all we do with them is launch birds into pigs.

“I am saying we can do something better with the aggressive application of software technology,” he said.

Actually, those Angry Birds are now in space, too.

In any case, here’s Paul’s interesting deck from the talk:

cleanweb_presentation-Sunil-2012-mar-10

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