All Things Digital

All in good fun, right?

I am sure this will be the dumb-as-a-box-of-hammers reasoning this group of Web 2.0 folks gives for this odd video effort, doing a lip-synch romp on their group vacation in Cyprus to Journey’s “Don’t Stop Believin’,” and then posting it for all to see on Vimeo.

It is titled: “20 world Internet citizens met in the Turkish Republic of Northern Cyprus in October of 2008 for a week of reflections on life, love, and the Internet.”

Um, kids, here’s a reflection: While you swim in that pricey infinity pool in your luxury villa, Silicon Valley is tanking all over the place. You might want to check your email and see if Sequoia Capital or Ron Conway has cost-cutted you out of a job!

Oh, sorry, BoomTown’s karma is so negative, isn’t I?

But the video gave me flashbacks to heedless-partying-until-the-bomb-fell attitude before the popping of the Web 1.0 bubble. It obviously still burns.

The group rollicking includes Blip.tv’s Mike Hudack, Facebook’s Dave Morin, Drop.io’s Sam Lessin and–well, um, eek, bad idea, awkward!–tech reporter Jessica Vascellaro of The Wall Street Journal.

Here is the video:

UPDATE: Apparently, the makers of the video have made it private on Vimeo, likely due to the reaction to it, so I replaced the original post with one from YouTube:

Is it just me or does the sudden prospect of venture capitalists–the very investors who fueled the Web 2.0 valuation insanity with their typically egregious overfunding of start-ups–lecturing about the bleak economy and the need to tighten belts seem just a tad ironic?

It’s kind of like Washington politicians who handed out-of-control bankers one deregulation after another in exchange for campaign donations now mounting their high horses and decrying Wall Street greed in the current economic meltdown.

And yet, just like that, Silicon Valley’s investors–who could spin you all the way to next Sunday about how Facebook was actually worth $15 billion, despite not having much revenue quite yet–are turning into penny-pinching accountant types.

As reported by Om Malik of GigaOm in a piece titled “Sequoia Rings the Alarm Bell: Silicon Valley Is in Trouble,” for example, Sequoia Capital–one of tech’s most powerful and successful VC firms–held a meeting where it told its portfolio companies that the downturn was quite serious and advised them to start cutting costs.

Apparently, there was even a picture of a gravestone with “R.I.P.: Good Times” displayed at the gathering, in case the start-ups did not get the sledgehammer message. (And here is an update on the meeting by Malik.)

The last time Sequoia did this was when the Web 1.0 bubble was popping in 2000.

The same communication was also sent out to entrepreneurs by angel investor Ron Conway then, and now yesterday again.

The typically jovial Conway (pictured here) sent out a grim email to the start-ups he is invested in, advising they lower their burn rate to get ready for the tough times ahead.

Wrote Conway: “Unfortunately history DOES repeat itself but I hope we can learn from history and prevent the turmoil from occurring again. The message is simple. Raising capital will be much more difficult now … the name of the game in this environment in some respects is survival–survival until conditions change.”

Now he tells us!

In all seriousness, these kinds of prescriptions should have been front and center when times were presumably good, especially after the first orgy of Internet frothiness ended with such a thud.

Instead, the all-trees-grow-to-heaven attitude, the massively inappropriate valuations, the revenue-what-revenue strategies have been pushed on entrepreneurs in this cycle by too many VCs, most of whom should have known better.

And, while it is right for Sequoia and Conway to sound the alarm, I expect all the VCs who touted loudly will now climb aboard this somber bandwagon.

Because, after handing over too much money to start-ups like drunken sailors on shore leave, it is apparently now Sunday morning and time for a little salvation.

But not completely, of course, since this is still an industry where the dreams of hitting it big never die.

After I jokingly called Conway “Oh voice of doom and gloom” after reading his email, he quickly wrote back: “NO WAY DOOM AND GLOOM. I think innovation in the Valley will continue to thrive and I will continue to invest.”

Of course, Conway will. It wouldn’t be Silicon Valley if he didn’t.

And to raise your spirits from these wet-blanket VCs, here’s a video of Mike Settle singing the classic “What Shall We Do With the Drunken Sailor”:

Last Friday, what BoomTown would call the Web’s first bona fide hit ended, as the lonelygirl15 online series finale took place with 12 video segments uploaded over 12 hours.

Now, apparently, it is time to meet EQAL, a “social entertainment company” that is still essentially the two guys–Greg Goodfried and Miles Beckett (pictured here. left to right)–who dreamed up LG15 and also the KateModern Web series.

Except, rather than operating out of their homes on a wing and a prayer, they are now armed with $5 million in funding.

That investment in the Sherman Oaks, Calif.-based start-up, which was announced in April, included some true Silicon Valley luminaries, such as entrepreneur Marc Andreessen, investor Ron Conway and former Googler Georges Harik, as well as Conrad Riggs and Spark Capital.

Sources also said Google’s (GOOG) Marissa Mayer is one of the new investors in EQAL.

With its small pile of cash, Beckett and Goodfried are planning new online shows–one of which will debut in September–as well as a number of other things, in yet another attempt to create a successful mesh between Hollywood and technology and thus yield a lucrative and lasting interactive hit.

If anyone can give it a try, it would be this pair, which unleashed LG15 upon the unsuspecting Web population in mid-2006.

Unsuspecting, largely because most people at first thought the user-generated-looking online video of the incessant jabbering of its attractive female lead right into a computer’s camera was real.

Instead, it was actually the “story of a group of young adults fighting against an evil secret society, the Order, that uses the blood of girls with a rare blood trait to extend the lives of a small group of Elders.”

And they also used Neutrogena products while doing it! (The skin care company was an early sponsor, and a scientist from Neutrogena was also written into the story.)

So with clean faces and over the course of its two-year run, LG15 ran to more than 550 episodes with 100 million views.

Beckett and Goodfried also launched KateModern on the Bebo social network in the U.K. a year ago, which also just concluded.

The “story of a group of British young adults investigating a creepy, New Age religion called ‘The Hymn of One’ that is actually a front for the Order” garnered 50 million views.

Well, it’s all disorder now, as EQAL tries to keep the hits coming without LG15, by working with writers, producers, media companies and advertisers to create new interactive shows that also have engaged online communities.

EQAL’s motto: “The Show Is Everywhere.”

Well, we’ll see, but here are Beckett and Goodfried–the former was a physician and the latter a lawyer in their previous lives–giving me a tour of their new office in Los Angeles’s “Valley,” and also sitting for a longish video interview about where content online is going.

That’s a question a lot of people in both Hollywood and Silicon Valley hope they can answer.

Here’s the video:

Today, Mike Homer, as well as many others suffering from incurable degenerative brain disease and dementias, will get a new video-sharing channel on YouTube (GOOG), along with a Web site and an interactive widget.

Last year, BoomTown wrote about the struggle of Homer, the longtime Silicon Valley entrepreneur (pictured here; I met him in the mid-1990s, when he was an exec at Netscape).

Unfortunately, Homer continues to suffer from Creutzfeldt-Jakob Disease (CJD), for which he is under treatment at the University of California at San Francisco.

“The Fight for Mike” has raised $7 million for CJD at UCSF, where Dr. Stanley B. Prusiner–who was awarded the Nobel Prize in 1997 for discovering the prion protein that causes CJD–is working on a major project aimed at defeating neurodegenerative diseases.

Now comes a unique collaboration between YouTube and the UCSF Memory and Aging Center, organized by two well-known Silicon Valley entrepreneurs, Ron Conway and Bill Campbell, with the help of YouTube Co-Founder Chad Hurley.

Conway and Campbell, along with the Homer family, have led the efforts to help find a cure for Homer.

Naturally, given Homer’s background, a digital initiative was inevitable.

Thus, the new project is the kick-off of the Memory and Aging Center’s “Defeat Dementia” campaign at UCSF, which is trying to use the Web and other digital technologies to help find new ways to get information out about public health issues.

Along with CJD, the YouTube effort will also focus on Frontotemporal Dementia (FTD), Parkinson’s, ALS and Alzheimer’s and try to engage the public and the medical community in a search for the causes and cures of these debilitating neurodegenerative conditions.

On the channel: videos of clinical-researchers and physicians discussing characteristics of the diseases; personal stories of patients and family members; and videos featuring advice and coping strategies from health-care professionals.

There is also now a Defeat Dementia Facebook group on the topic, and UCSF also has a partnership with Veodia.

Here is a video I did with Conway this week about the effort:

Gas prices through the roof?

Mortgage crisis continues?

A looming recession?

You almost have to admire Web 2.0’s fight for their right to party.

Last night, it was quite a festive mood, as a mess o’ tech press and a bunch of digital movers and shakers showed up at OutCast Communications’ Seventh Annual CEO Dinner, held in the Grand Hall of San Francisco’s historic Ferry Building.

Big clients of OutCast include Facebook and Yahoo, as well as a lot of hyper-trendy start-ups.

Here is a lovely video I did, featuring OutCast’s T.J. Snyder and Margit Wennmachers, investor Ron “Sister Woman” Conway, Yahoo (YHOO) communications czar Brad Garlinghouse and PR’s Nicki Dugan, Facebook’s Brandee Barker, VC Stewart Alsop and the incomprehensibly iPhone-addled Robert Scoble:

OK, we’ll admit it–we just like the steady and non-hypey persona of Aaron Patzer, whom BoomTown has officially and forever dubbed “Mint Guy.”

While he is not exactly minty fresh–in fact, the founder and CEO of Mint is much more circumspect and cool than any 26-year-old I have met recently–Patzer does stand out in a sea of over-touting Web 2.0 entrepreneurs as someone who might actually have created a business with some substance to it.

Rather than offering dopey widgets that let you throw food at each other or yet another version of a social network or the umpteenth music download-share-compare whatever, Mint feels different.

The free Web-based service is aimed at a younger demographic interested in finding a way to manage money better, in learning about their spending habits, in being alerted to unusual activity and even in saving some cash by finding better rates on things like bank accounts and credit cards.

It might sound crazy in these frothy Web times, but the Mountain View, Calif.-based start-up certainly has the potential to be actually useful and relevant to consumers and has a doesn’t-make-me-scoff-out-loud business plan that focuses on lead generation for sponsors.

Mint now claims 100,000 users since its launch last fall and is expanding its features to allow users to track investments, student loans and mortgages soon too.

Mint has not escaped the bubble, of course, having received about $5 million in funding from Shasta Ventures, First Round Capital and a number of prominent angel investors, such as Ron Conway and former Yahoo exec Geoff Ralston. That’s a lot of money for a company with a lot of possible pitfalls.

While there are a few Web competitors, such as Wesabe, the biggest challenge is that Patzer is taking aim at desktop software packages like Intuit’s Quicken and Microsoft’s Money. The pluses of those solutions is that users feel more secure when financial data lives locally than they might loading it up to the Web.

More significantly, giants like Intuit are moving services online too, as with the recent Quicken Online, which makes for a mighty foe to Mint.

Still, Intuit has been woefully slow online and Patzer is obviously nimbler. And he counters that he is using heavy-duty encryption, as well as a number of methods to keep data anonymous, which make the information safe.

Well, we’ll see how it all turns out, as everyone is going to have to battle security concerns and convince people to trust them with important financial information on the Internet. But, it is clear that it is an interesting space to watch.

And, better still, it is–thank you, thank you–not a food fight.

Here is the video I shot with “Mint Guy” Patzer during lunch this past week at the Consumer Electronics Show in Las Vegas, where Mint was showing off its service a bit:

OK, you might attribute it to being super-bored in the holiday doldrums. But, for some reason I cannot explain, I find myself strangely drawn to the videos being made about the start-up of Seesmic, the new video-sharing service that is being created by European entrepreneur Loïc Le Meur.

Up on his own loic.tv channel on YouTube, everything from checking out the company digs to working on a logo to hiring are on display, and Le Meur encourages community comments about the company’s direction. The videos are currently up to Day 57.

It’s a shameless gimmick, to be sure, but Le Meur’s French accent grows on you, and it is an interesting way to market your company, for certain (AllThingsD.com and D: All Things Digital only did one staff BBQ and Rodeo video, which is seen below).

While Seesmic is described in a lot of ways–video Twitter, video social network, video sharing tool are some examples–Seesmic’s obviously practicing what it preaches here: video blabbing that is often compelling.

(Here is a screen shot of what Seesmic looks like, which you can click on to make bigger.)

To get it all going, Le Meur (who also organizes the Le Web conference in Paris, which just took place) got a bunch of high-profile angels like former AOL head Steve Case, investor Ron Conway, FON founder Martin Varsavsky and Skype founders Niklas Zennström and Janus Friis, as well as many others, to pony up millions for Seesmic’s funding.

He and his family moved to San Francisco this past summer, and he has been ferreting away ever since on the service, which will officially debut in early spring of 2008.

Here’s Seesmic’s latest, a what-are-you-doing-for-the-holidays video of its employees:

Then again, I also kind of like the flip side–the mostly hysterical, sometimes line-crossing attack review of Seesmic by Loren Feldman of 1938 Media. Actually, although Feldman trashes Le Meur’s effort, it is just the kind of thing that would probably make Seesmic the very lively place it needs to be.

Here’s Feldman:

And here’s the video of our ATD/D BBQ and Rodeo, which focuses a lot on the marinated lamb:

At the end of the night of the first day of the Web 2.0 Summit, MySpace threw a party at San Francisco’s Museum of Modern Art, where the No. 1 social-networking site showed off its Beverly Hills style and planted a flag (in the form of a new office about to open in the city soon) to counter Facebook’s much-hyped popularity with Silicon Valley types.

It was quite a fancy shindig, with more Web kingpins than you can shake a third-party app at, including YouTube Co-Founder Chad Hurley, News Corp. head Rupert Murdoch (owner of MySpace), VC Ron Conway and, of course, a clutch of Facebook execs (who are deep in negotiations over new funding and deals, but managed to travel an hour north for a free drink).

Here’s the video:

Last night, StumbleUpon–the site that helps you find Web sites based on recommendations from friends and other like-minded people–had a party in downtown San Francisco’s Minna Gallery to celebrate its recent acquisition by auction giant eBay and also just because it is summer.

The Canadian-born social bookmarking start-up, which launched a few years ago, came to the Bay area last year and got some fancy venture investors (Mitch Kapor, Ron Conway, Ram Shriram and others) who ponied up a couple of million dollars.

And, in your typical dot-com Cinderella story, it then proceeded to sell itself to eBay for $75 million recently, after quickly growing its user base to more than two million.

Thus: Party on, Garth!

Here’s a little video I did last night, talking to one of the impossibly young co-founders, Garrett Camp, and also StumbleUpon’s “businessman” (a code word for biz dev), David Lee.

The full video from the Fight for Mike event, held a week ago in Palo Alto, Calif., for Mike Homer, is now up on YouTube and is embedded below.

Friends and colleagues of the well-known tech veteran came together to learn about his severe illness–he was recently diagnosed with Creutzfeldt-Jakob disease.

The hour-long event included speeches by close Homer friends and tech luminaries, Bill Campbell and Ron Conway, information about CJD from doctors at the University of California at San Francisco, where Homer is being treated, and questions from the audience of hundreds.

A rare, neurodegenerative prion disease, which in Homer’s case has occurred sporadically rather than via infection (the well-known variant that occurs in animals is called mad cow disease), CJD’s incidence is one case in a million annually. Few survive beyond a year after exhibiting symptoms, and there is no known cure for CJD.

The hospital at UCSF is the only place in this country that has a major laboratory doing both research and clinical trials. And Homer, his family and friends are making a big push to accelerate the pace of discovery for treatments and a cure, by raising money for the cause and pushing for even more aggressive development.

For those who want to help, there are several ways, including via donation to the Homer Family Foundation’s Program for Brain Disease Research (P.O. Box 10195, Palo Alto, Calif. 94303); the Homer Family Fund for Brain Research at the Harris myCFO Foundation (P.O. Box 10196, Palo Alto, Calif. 94303); or the UCSF Foundation, specifically to the “Fight for Mike Fund” or generally for neurodegenerative disease research and treatment.

Here is the long video, which–even at almost 60 minutes–is well worth it:

Last night, in an extraordinary gathering in Silicon Valley, friends and colleagues of Mike Homer came together to learn about his severe illness–the longtime tech veteran was recently diagnosed with Creutzfeldt-Jakob disease.

In an event organized by Homer and his wife, Kristina, as well as close friends and well-known industry players Bill Campbell and Ron Conway, several hundred people crowded into the Palo Alto Sheraton to get a primer course about CJD from doctors at the University of California at San Francisco. (See video below.)

These doctors also happen to be the leading specialists in the world trying to find treatments and a cure for the cruel disease and include the man–Dr. Stanley Prusiner–who won the Nobel Prize in 1997 for discovering “prions,” infectious agents that are at the heart of CJD.

A rare, neurodegenerative prion disease, which in Homer’s case has occurred sporadically rather than via infection (the well-known variant that occurs in animals is called mad cow disease), CJD’s incidence is one case in a million annually, and few survive beyond a year after exhibiting symptoms.

Homer had been suffering from memory problems late last year. Another close friend, Netscape co-founder Marc Andreessen, aided Homer in getting to the right doctors at Stanford University Hospital, where he was diagnosed.

Read more »

I had lunch with well-known angel investor Ron Conway recently and we had a lively discussion about a range of topics, including the venture business (better than ever!), innovation (better than better than ever!), monetizing video content on the Web (best of all!) and more.

Ron also had a bit to get off his chest about entrepreneurs getting signing bonuses from VCs eager to close a deal. I was, of course, shocked, shocked, shocked to find out VCs offered such Turkish delights to attract business. In this vein, Ron and I had a funny miscommunication about porches versus Porsches for start-ups. Bottom line: Just say no to both!

Check it out:

While Walt and I will come up with our own questions for Microsoft’s Bill Gates and Apple’s Steve Jobs, who will be appearing in an historic joint interview at our D conference in one week, I was curious what others–some tech folks and some not in the industry–would ask the tech legends if they could in this post.

Here’s the first question from Silicon Valley venture capitalist Ron Conway, prominent angel investor (he actually founded Angel Investors and backs a plethora of Web start-ups). He was curious about that old chestnut, Digital Rights Management, and its demise.