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Reuters

Summly CEO Nick D'Alisio

LONDON, March 25 (Reuters) - Got a tech idea and want to make a fortune before you're out of your teens? Just do it, is the advice of the London schoolboy who's just sold his smartphone news app to Yahoo for a reported $30 million.

The money is there, just waiting for clever new moves, said 17-year-old Nick D'Aloisio, who can point to a roster of early backers for his Summly app that includes Yoko Ono and Rupert Murdoch.

"If you have a good idea, or you think there's a gap in the market, just go out and launch it because there are investors across the world right now looking for companies to invest in," he told Reuters in a telephone interview late on Monday.

The terms of the sale, four months after Summly was launched for the iPhone, have not been disclosed and D'Aloisio, who is still studying for school exams while joining Yahoo as its youngest employee, was not saying. But technology blog AllThingsD said Yahoo paid roughly $30 million.

D'Aloisio said he was the majority owner of Summly and would now invest the money from the sale, though his age imposes legal limits for now on his access to it.

"I'm happy with that and working with my parents to go through that whole process," he said.

D'Aloisio, who lives in the prosperous London suburb of Wimbledon, highlights the support of family and school, which gave him time off, but also, critically, the ideas that came with enthusiastic financial backers.

He had first dreamt up the mobile software while revising for a history exam two years ago, going on to create a prototype of the app that distils news stories into chunks of text readable on small smartphone screens.

He was inspired, he said, by the frustrating experience of trawling through Google searches and separate websites to find information when revising for the test.

Trimit was an early version of the app, which is powered by an algorithm that automatically boils down articles to about 400 characters. It caught the eye of Horizons Ventures, a venture capital firm owned by Hong Kong billionaire Li Ka-shing, which put in $250,000.

That investment attracted other celebrity backers, among them Hollywood actor Ashton Kutcher, British broadcaster Stephen Fry, artist Ono, the widow of Beatle John Lennon, and News Corp media mogul Murdoch.

That all added up to maximum publicity when Summly launched in November 2012, but the backers brought more than just cash for an app that has been downloaded close to a million times.

"It's been super-exciting, (the investors) found out about it in 2012 once the original investment from Li Ka-shing had gone public," said D'Aloisio. "They all believed in the idea, but they all offered different experiences to help us out."

His business has worked with around 250 content publishers, he said, such as News Corp's Wall Street Journal. People reading the summaries can easily click through to the full article, driving traffic to newspaper websites.

"The great deal about joining Yahoo is that they have a lot of publishers, they have deals with who we can work with now," D'Aloisio said.

He taught himself to code at age 12 after Apple's App Store was launched, creating several apps including Facemood, a service which analysed sentiment to determine the moods of Facebook users, and music discovery service SongStumblr.

He has started A-levels - English final school exams - in maths, physics and philosophy, and plans to continue his studies while also working at Yahoo's offices in London. He aims to go to university to study humanities.

Although he has created an app worth millions, D'Aloisio says he is not a stereotyped computer geek.

"I like playing sport," he said. "I'm a bit of a design enthusiast, and like spending time with my girlfriend and mates."

Copyright (2013) Thomson Reuters. Click for restrictions

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Something is happening. I’ve noticed it, you may have noticed it, and it’s probably no surprise to anyone who’s ever bought an “indie” record. The corporations with a finger in this delicious pie we call the games industry have been watching what’s happened, too. They’ve been watching the achievements of the likes of Jonathan Blow, 2Dboy, Notch/Mojang and other countless successful indie developers. Now, they’re changing the way the operate. And that is in turn changing how indies operate. Indie gaming will never be the same again. Is this a bad thing?

We talked to Double Fine, Positech, Klei and others to find out. (more…)

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Mark Zuckerberg and friend in Noe Valley

It's incredibly hard to start a company.

Fortunately, a lot of smart people have done it before, and they have sound advice to share with budding entrepreneurs.

We pulled the best quotes from recent blog posts, conferences, and interviews that can help startups at every phase, whether they're still deciding what to launch or figuring out how to scale.

Here's the truest, most timely startup advice from business stars like Pinterest's Ben Silbermann and Y Combinator's Paul Graham.

On deciding what to start: "Facebook, I didn’t start to ‘start a company.’ It was mostly just through wanting to build it and having it be this hobby and getting people around me excited. It eventually evolved into a company. But I never understood the psychology of wanting to start a company before deciding what you wanted to do. Explore what you want to do before committing." - Mark Zuckerberg, CEO and co-founder of Facebook

"If you are thinking of starting a non-transactional consumer startup, be aware that you are entering what is perhaps the most competitive sector in tech in the last decade….ten million users is the new one million users." -- Chris Dixon, Partner of Founder Collective and founder of Hunch

On the stress of running a company: "As a startup CEO, I slept like a baby. I woke up every two hours and cried." -- Ben Horowitz

See the rest of the story at Business Insider

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That crazy leap that Felix Baumgartner made was astonishing.

And if you’re interested in the future of Web video, YouTube’s ability to serve up eight million livestreams at the same time is a really big deal, too.

As I noted yesterday, that number blows away YouTube’s previous peak of 500,000 concurrent streams, which it hit this summer during the Olympics, as well as last year during the royal wedding of Prince William and Kate Middleton.

So it doesn’t take much imagination to envision YouTube doing this kind of stuff, at this scale, on a regular basis. Which would mean the Web finally has a chance to rival TV when it comes to serving up live events with huge audiences — one of TV’s last remaining advantages over the Internet.

That won’t happen anytime soon, though. Death-defying jumps from outer space aside, there are only a few live events that millions of people want to watch at the same time. Basically, a handful of award shows like the Oscars, and big-time sports.

Even if YouTube wanted to pay up to get its hands on that programming, it’s going to have to wait, because the TV guys have the rights locked up for a long time. The next set of NFL deals, for instance, won’t be available for a decade.

But YouTube is still going to be an important platform for live stuff. It’s just that you probably won’t see most of it, unless you’re in a very particular niche.

Here’s some of the stuff YouTube has streamed live in the last year or so:

  • A concert from Psy, the “Gangnam style” guy
  • A concert from AKB48, a Japanese girl group
  • A bunch of EDM shows (that’s “DJs playing music for big crowds,” for the rest of us)
  • A concert by Jay-Z at the new Barclays Center in Brooklyn
  • A World of Warcraft launch event, which featured gamers playing Mists of Pandaria around the world
  • A bunch of solar and lunar eclipses

None of these shows drew more than a couple-hundred-thousand concurrent viewers, which would make them the equivalent of a poorly rated cable TV show.

And that makes sense: Since the Internet has trained us to watch anything we want, whenever we want to, why do we have to watch when everyone else does? (A semi-secret about the live video streaming that news sites like the New York Times, The Wall Street Journal* and the Huffington Post do, for instance: Almost all the viewing comes after the fact, via on-demand clips.)

On the other hand, as YouTube proved conclusively yesterday, it can now mount this stuff without breaking a sweat. Now it’s basically a plug-and-play option for any grown-up company that wants to do business with Google. And YouTube is going to make it increasingly available to the rest of us, too.

That’s the result of a year of around-the-clock work by a couple-dozen YouTube engineers, to prep the video site for the Olympics in July.

YouTube software engineering director Jason Gaedtke,who oversaw that effort, says the livestreams the company put out during the Olympics were seven times better than the standard video-on-demand stuff YouTube puts out everyday. His team is now applying the lessons it learned from that effort, and using it to upgrade YouTube’s video more broadly.

So, yes. If someone else wants to grab the world’s attention by breaking the sound barrier aided only by gravity, you’ll be able to watch it alongside a global audience of millions.

But the future of live video on YouTube is probably going to look like something else: You and several thousand other people, watching something most of the world doesn’t care about.

And that can be thrilling in its own way.

*The Journal is owned by News Corp., which also owns this Web site.

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How can we make sense of it all?
A few weeks ago, I had dinner with Saumil and Sailesh, co-founders of LocBox.* Instagram had just been acquired by Facebook and there was speculation (later confirmed) about a big up round financing of Path. The recent large financing of Pinterest was still in the air, and the ongoing parlor game of when Facebook would go public and at what price was still being played. A couple of months prior, Zynga had acquired OMGPOP.

Sailesh wondered aloud, “How much time do we have for any of these?” “How many of them can coexist?” and “Do we really need them?” My answers were, respectively: “A lot.” “Many of them.” and “No, but we want them.” That dinner discussion prompted some observations that I am outlining here, and I invite you to share your own observations in the comments below.

In a nutshell, the Internet has evolved from being a need-driven utility medium with only a handful of winners to a discovery-driven entertainment medium with room for multiple winners. The necessary and sufficient conditions for this evolution are now in place — broadband, real names and tablets are the three horsemen of this New New Web. As consumers, entrepreneurs and investors, we should get used to the fact that the online economy is increasingly blurring with the offline economy, and in the limit, that distinction will disappear. As a result, just as in the real world, the Web of entertainment will be much bigger than the Web of utility.

A Theory of Human Motivation
One framework for understanding the consumer Internet is Maslow’s Hierarchy of Needs, which Abraham Maslow put forward as a way of explaining human behavior at large. The core premise is that once our basic needs of food, shelter, safety and belonging are satisfied, we tend to focus on things that are related to creativity, entertainment, education and self-improvement. A key aspect of this framework is that it’s sequential: Unless the basic needs are met, one cannot focus on other things. As an example, a study in 2011 showed that humans who are hungry will spend more on food and less on non-food items compared to those who are not hungry. Using this framework, we can see how consumer adoption of the Web has evolved over the last 20 years, and why all of the ingredients are only now in place for consumers to use the Web for what Maslow called “self-actualization” — a pursuit of one’s full potential, driven by desire, not by necessity.

1992-2012: Web of Need
Between the AOL IPO in 1992 and the Facebook IPO last month, the Internet has largely been in the business of satisfying basic consumer needs. In 1995, the year Netscape went public and made the internet accessible to the masses, I was a young product manager for a consumer Internet company called Global Village Communication. We were a newly minted public company and our hottest product was a “high speed” fax/modem with a speed of 33.6 kbps. Back then, using the Internet as a consumer or making a living off it as a business was rather difficult, and sometimes simply frustrating. In the subsequent years the basic needs of access, browser, email, search and identity were solved by companies such as AOL, Comcast, Netscape, Yahoo, Google, LinkedIn and Facebook.

2012-?: Web of Want
Today, the billion users on Facebook have reached the apex of Maslow’s hierarchy on the web. All of our basic needs have been satisfied. Now we are in pursuit of self-actualization. It is no surprise that on the Web, we are now open to playing games (Zynga, Angry Birds), watching video (YouTube, Hulu), listening to music (Pandora, Spotify), expressing our creativity (Instagram, Twitter, Draw Something), window shopping (Pinterest, Gojee*) and pursuing education (Khan Academy, Empowered*).

The Web Is Becoming Like TV
How do we make sense out of a Web where multiple providers coexist, serving groups of people who share a similar desire? Turns out we already have a very good model for understanding how this can work: Television. Specifically, cable television. The Web is becoming like TV, with hundreds of networks or “channels” that are programmed to serve content to an audience with similar desires and demographics. Pinterest, ShoeDazzle, Joyous and Alt12* programmed for young, affluent women; Machinima, Kixeye and Kabam programmed for mostly male gamers; Gojee* for food enthusiasts; Triposo* for travellers; GAINFitness* for fitness fans and so on.

In this new new Web, an important ingredient to success is a clear understanding of the identity of your users to ensure that you are programming to that user’s interests. The good news is that unlike TV, the Web has a feedback loop. Everything can be measured and as a result the path from concept to success can be more capital efficient by measuring what type of programming is working every step of the way — it’s unlikely that the new new Web will ever produce a Waterworld.

Why Now? Broadband, Real Names & Tablets
As my partner Doug Pepper recently wrote, a key question when evaluating a new opportunity is to ask “Why Now?” Certainly, companies like AOL, Yahoo and Myspace have tried before to program the Web to cater to interests of specific audiences. What’s different now? Three things: Broadband, real names and tablets.

The impact of broadband is obvious; we don’t need or want anything on a slow Web. With broadband penetration at 26 percent in industrialized countries and 3G penetration at about 15 percent of the world’s population, we are just reaching critical mass of nearly 1B users on the fast Web.

Real names are more interesting. In 1993, the New Yorker ran the now famous cartoon; “On the Internet, nobody knows you’re a dog.” This succinctly captured the state of the anonymous Web at the time. Reid Hoffman and Mark Zuckerberg changed that forever. Do we find Q&A on Quora to be more credible than Yahoo! Answers, celebrity profiles on Twitter more engaging than Myspace and pins on Pinterest more relevant than recommendations on early AOL chatrooms? I certainly do, and that is largely because Quora, Twitter and Pinterest take advantage of real names. Real names are blurring the distinction between online and offline behavior.

Finally, the tablet, the last necessary and sufficient piece that fuels the “Web of want.” The PC is perfect for the “Web of need” — when we need something, we can search for it, since we know what we are looking for. Searching is a “lean-forward” experience, typing into our PC, either at work or at the home office. The Web over the last decade has been optimized for this lean-forward search experience — everything from SEO to Web site design to keyword shortcuts in popular browsers makes that efficient. However, smartphones and tablets allow us to move to a “lean-back” experience, flipping through screens using our fingers, often in our living rooms and bedrooms, on the train or at the coffee shop. Tablets make discovery easy and fun, just like flipping channels on TV at leisure. These discoveries prompt us to want things we didn’t think we needed.

Early Signs
This thesis is easy to postulate, but is there any evidence that users are looking to the Web as anything more than a productivity platform? As has been reported, mobile devices now make up 20 percent of all U.S. Web traffic, and this usage peaks in the evening hours, presumably when people are away from their office. Analysis from Flurry* shows that cumulative time spent on mobile apps is closing in on TV. We certainly don’t seem to be using the Web only when we need something.

Economy of Need Versus Want
The economy of Want is different from the economy of Need. We humans tend to spend a lot more time and money on things we want compared to things we need. For example, Americans spend more than five hours a day on leisure and sports (including TV), compared to about three hours spent on eating, drinking and managing household activities. Another difference is that when it comes to satisfying our needs, we tend to settle on one provider and give that one all of our business. Think about how many companies provide us with electricity, water, milk, broadband access, search, email and identity. The Need economy is a winner-take-all market, with one or two companies dominating each need. However, when it comes to providing for our wants, we are open to being served by multiple providers. Think about how many different providers are behind the TV channels we watch, restaurants we visit, destinations we travel to and movies we watch. The Want economy can support multiple winners, each with a sizeable business. Instagram, Path, Pinterest, ShoeDazzle, BeachMint, Angry Birds, CityVille, Kixeye, Kabam, Machinima and Maker Studios can all coexist.

Investing in the Web of Want
The chart below shows that over a long term (including a global recession) an index of luxury stocks (companies such as LVMH, Burberry, BMW, Porsche, Nordstrom) outperforms an index of utility stocks (companies such as Con Edison and Pacific Gas & Electric that offer services we all need). The same applies to an index of media stocks (companies such as CBS, Comcast, News Corp., Time Warner, Viacom) which outperforms both the utilities and the broader stock market. Of course, higher returns come with higher volatility — Nordstrom’s beta is 1.6 and CBS’ beta is 2.2, compared to 0.29 for PG&E. It is this volatility that has cast investing in the Want business as a career-ending move in Silicon Valley for the past 20-plus years. As the Web evolves from serving our needs to satisfying our wants and, in turn, becomes a much larger economy, sitting on the sidelines of the Web of Want may not be an option.

Let’s Not Kill Hollywood
With a billion users looking for self-actualization and with the widespread adoption of broadband, real names and tablets, the Web is poised to become the medium for creativity, education, entertainment, fashion and the pursuit of happiness. As the offline world shows, large, profitable companies can be built that cater to these desires. Entrepreneurs and investors looking to succeed in the new new Web can learn quite a few lessons from our friends in the luxury and entertainment businesses, which have been managing profitable “want” businesses for decades. The fusion of computer science, design, data, low friction and the massive scale of the Internet can result in something that is better than what either Silicon Valley or Hollywood can do alone. It is no wonder that the team that came to this conclusion before anyone else is now managing the most valuable company in the world.

Epilogue
When we go see a movie or splurge on a resort vacation, we don’t stop using electricity, brushing our teeth or checking our email. The Web of Want is not a replacement for the Web of Need, it is an addition. Many of the Internet companies that satisfied our needs in the last 20 or more years of the Web are here to stay. In fact, they will become more entrenched and stable, with low beta, just like the utilities in the offline world. Microsoft has a beta of exactly 1.0 — it is no more volatile than the overall stock market. And for those longing for the days of “real computer science” on the Web, do not despair. Just keep an eye on Rocket Science and Google X Labs — there is plenty of hard-core engineering ahead.

Disclosures: * indicates an InterWest portfolio company. Google Finance was used for all of the stock charts and beta references.

Keval Desai is a Partner at InterWest, where he focuses on investments in early-stage companies that cater to the needs and wants of consumers. He started his career in Silicon Valley in 1991 as a software engineer. He has been a mentor and investor in AngelPad since inception. You can follow him @kevaldesai.

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Much has been written about whether entrepreneurs are born or made, with no real consensus. My own opinion, which is anecdotal, is that entrepreneurs can be made — and that parents play a central role in making them. I had a remarkable epiphany while producing Lemonade Stories, a documentary film about extraordinary entrepreneurs and their mothers. [...]

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PatPending writes with this excerpt from TorrentFreak:
"The RetroShare network allows people to create a private and encrypted file-sharing network. Users add friends by exchanging PGP certificates with people they trust. All the communication is encrypted using OpenSSL and files that are downloaded from strangers always go through a trusted friend. In other words, it's a true Darknet and virtually impossible to monitor by outsiders. RetroShare founder DrBob told us that while the software has been around since 2006, all of a sudden there's been a surge in downloads. 'The interest in RetroShare has massively shot up over the last two months,' he said."


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Gamasutra recently got a chance to sit down with Facebook's Sean Ryan, the social network giant's director of games partnerships, to find out what the company is doing for developers now that it has a team dedicated to improving the infrastructure and fielding requests.

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MUG SHOT
MUG SHOT: Self-proclaimed comedian and anarchist Jonathan May-Bowles was photographed by a police officer Tuesday after he lunged at Rupert Murdoch, the chief executive and chairman of News Corp., with a plate of shaving cream during a hearing on phone-hacking in London. (Reuters)

BIG CAT ATTACK
BIG CAT ATTACK: A leopard attacked a forest guard Tuesday in Prakash Nagar, India. Six people were mauled by the leopard after the feline strayed into the village and before it was caught by forestry department officials. (Diptendu Dutta/AFP/Getty Images)

ALL USED UP
ALL USED UP: A young boy lay Tuesday by empty USAID vegetable oil tins Tuesday at a refugee camp in Dadaab, Kenya. The Dadaab refugee camp was designed in the early 1990s to accommodate 90,000 people, but the U.N. estimates more than four times that are living there. (Oli Scarff/Getty Images)

SPECIAL DELIVERY
SPECIAL DELIVERY: A man pushed a motorcycle carrying slaughtered pigs Tuesday outside a closed shopping mall in Hanoi, Vietnam. (Kham/Reuters)

HEAVY LIFTING
HEAVY LIFTING: U.S. Marine Cpl. William Bock, 22, of Philadelphia, worked out Tuesday under the light of his head lamp at Combat Outpost Shir Ghazay in Helmand Province, Afghanistan. (David Goldman/Associated Press)

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