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Tuesday, December 3, 2013
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Ask a VC is back this week after a brief hiatus–and our guest this week is DFJ managing director Josh Stein. As you may remember, you can submit questions for our guests either in the comments or here and we'll ask them during the show.


Stein currently has backed and serves on the boards of Box, Chartbeat, LendKey, Selligy, SugarCRM, and Swell. He is also actively involved with DFJ's investments in AngelList, Glam Media, Opscode, Path, Redfin, Tremor Video, and Twilio. His previous investments include GoodGuide (acquired by UL), iList (acquired by IGN/News Corp), Polaris Wireless (strategic recapitalization), Yammer (acquired by Microsoft), and Yardbarker (acquired by Fox Sports Interactive).


Prior to joining DFJ, Stein was a Vice President at Telephia, and was a co-founder, Director and the Chief Strategy Officer for ViaFone. He also held positions in product management at Microsoft and NetObjects, and was a management consultant in the San Francisco office of The Boston Consulting Group.


Stein has made some early investments in clear winners in enterprise and beyond, including leading Box's first round of institutional investment back in 2006. We're curious to hear what patterns he's observed in finding and backing successful entrepreneurs and companies.


Please send us your questions for Stein here or put them in the comments below!







3:38 PM

Ask a VC is back this week after a brief hiatus–and our guest this week is DFJ managing director Josh Stein . As you may remember, you can s...

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Mobile messaging startup Just.me announced a couple of weeks ago that its assets were being auctioned off. Now it looks like the auction is over. The winner? Just.me.


Well, technically it's “Just.me 2014 Inc.,” but founder Keith Teare (who also co-founded TechCrunch) said the new company's goal is to continue the same work: “And from a user point of view, we hope not to skip a beat.”


As I wrote in my initial coverage, Teare said the auction was necessary because of the $1.5 million in debt that Just.me took on from Hercules Technology Growth Capital. Combined with decent-but-not-spectacular growth numbers (Teare said it has hundreds of thousands of users), the debt meant the startup had trouble raising money, so it was selling off its assets to pay back the money it owed (or as much of that money as possible). Even then, Teare expressed his hope that he would be the top bidder - but it had to be a fair auction for him to meet his obligations to Hercules.


When Teare told me today about the results, he said he's not allowed to disclose the exact price, but he did note that the sale was funded by and therefore “within the means” of his incubator Archimedes Labs - in other words, it probably wasn't an enormous sum. He also said that there were 23 bids total, and that nine of those bids were for the full package of assets (rather than individual pieces).


Teare added that Just.me's focus has shifted since it launched earlier this year. Initially, the app combined taking pictures for your private memories, sending messages to friends, and expressing yourself in public. However, it's the public expression that has seen the most usage (something Teare attributed in part to the quality of the native photo and messaging experiences on iOS and Android), and that's where the company has been adding new features like the ability to leave “confessions” (which can be anonymous).


The app isn't abandoning the other areas completely, but treating expression as the “starting point”: “Public expresison leads to serendipitous meetings which leads to the desire to chat privately. We're really trying to focus on that set of behaviors.”


And yes, Teare acknowledged that there's no guarantee that the new company, which is fundraising on AngelList, will succeed.


“I would say there's no slam dunk,” he said. “I didn't want to acquire the assets because I think there's a magic formula. I acquired the assets because I think the app is doing really well and there's no reason for us to die at this point.”







1:38 PM

Mobile messaging startup Just.me announced a couple of weeks ago that its assets were being auctioned off . Now it looks like the auction i...

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As a convert to the standing desk lifestyle, I wondered just what I could do to further expand my alternative loafing lifestyle. To that end I brought a desk treadmill into the home, a decision that I have yet to regret. The model I'm trying, the Rebeldesk Rebel Treadmill 1000 (a bold name, to be sure) costs $749 and maxes out at 2 miles per hour. If anything I can report that I've been able to do a few miles a day at a steady, slow pace while still getting work done. Although, thanks to holiday dinners and lots of beer, the waistline has moved just about a pants size down, which is good enough for fat old me.


First, understand that the best desk treadmill isn't the best running treadmill. The 2 mph maximums that most of these have are there for a reason: you're going to fall down if you go much faster. While I could see myself hitting a three or four mile pace on an energetic day, I'd rather not risk the head strike when I'm flipped over my desk while browsing Reddit.


Does it help? Take a look at the chart below. Although I was traveling some of those days, after November 11 I was able to consistently push my steps walked up past 10,000 almost every day thanks to the treadmill. Given that it's winter and I'm a bit sick, it's a real boon to be able to get some low-impact cardio in during the day and still get work done. And yes, I am walking as I type this and have completed three miles today.


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Walking treadmills should also be solid and sturdy. You can get away with a cheaper, thinner model – plenty of people have and there are instructions for building your own everywhere – but if you plan on using it with any intensity, look into a dedicated, flat treadmill without a front bar and high control panel. Heck, there's even a DIY system that uses an IKEA work desk.


The Rebel, for example, is about five feet long and two feet wide. It fits under almost every desk and has a small break-out box controller with stop, start, an emergency system, and sleep control. Setup is quite simple: you just plug it in, connect the controller, and attach the emergency magnet. Then you press start. The treadmill starts very slowly at first and then speeds up to your desired pace. The hardcore will probably balk at the Rebel's top speed – I thought I would, too – but I'm OK with going at a pace that won't leave me winded as I work.

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You can also look into the Tread, an $855 treadmill with a much lower profile that almost looks like a rug. It's a hair shorter than the Rebel at 54 inches and is just about 5 inches off the ground.


Need something a bit more imposing? Folks I've spoken to have had good luck with Life Span Fitness desks, including this massive treadmill/standing desk setup that goes for $1,999. This could be a bit too rich for most holiday wallets, but considering the heft and comfort, you can't go wrong. For example, while the Rebel is working great for me I could imagine the value of having a dedicated desk attached that I could raise and lower.


Can you still sit at a treadmill desk? Sure, but you're going to have to do a bit of finagling. When my setup is shut down I like to bring a big fitness ball over to sit on, which allows me to take a bit of a breather between miles. It's a surprisingly seamless move and I've not yet fallen off the treadmill while sitting. Remember also that these things can't just be rolled away and used as a clothes hamper. The Rebel is huge and heavy as is the Life Span model. In fact, almost any treadmill you bring into the office deserves at least more than a cursory trot or two.


Whether or not you spend a few hundred on a huge, hulking, single-purpose desk treadmill or just go the DIY route, setting up a treadmill desk will do wonders for your energy level, potentially your weight, and that nagging feeling that you should be getting out more. While a nice jog around the industrial park is probably best for all involved, a stroll on a treadmill desk is the next best thing. Just ask my pants.







10:39 AM

As a convert to the standing desk lifestyle, I wondered just what I could do to further expand my alternative loafing lifestyle. To that end...

Read more »
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Nearly 700 websites pushing counterfeit products were seized by American and European authorities, according to Europol, the Europe-wide law agency. U.S. Immigration and Customs Enforcement teamed with European law enforcement agencies to execute the holiday cybersting. It is surely no coincidence that the seizures coincided with Cyber Monday, the online shopping orgy. ICE has a history of dramatic timing, like when it seized scores of sports-streaming sites in 2011 and 2012 just before the Super Bowl.


10:09 AM

Nearly 700 websites pushing counterfeit products were seized by American and European authorities, according to Europol, the Europe-wide l...

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“Philanthropist” is a daunting word that conjures up images of Bruce Wayne and other people with so much excess money and time that they have to give it away. Most of us, on the other hand, need to budget carefully and the relatively modest sums we can afford to donate seem too insignificant. After all, how much difference can $20 make? Since 2007, a San Francisco-based non-profit called the One Percent Foundation has focused on convincing people–especially young adults–that every dollar they give matters. Now the group is seeking to help companies and organizations become more charitable with its new Pro Giving Circles, the customized, white-label version of its Giving Circles platform. The launch was timed to coincide with Giving Tuesday, an initiative that serves as a counterpoint to the consumerism of Black Friday and Cyber Monday.


The One Perfect Foundation's name refers not to the growing wealth gap, but the organization's goal of motivating people to donate at least that amount of their income to worthy causes. People in their 20s to 30s are less likely to give money individually than their parents or grandparents, but they do contribute when asked by friends or colleagues to support a charity event or race, says Lara Volftsun, the One Percent Foundation's executive director.


“For many millennials, affordability, knowledge and impact are very real barriers to a more sustained, deliberate approach to giving,” she says. “Many do not think they can afford to give, do not know where to give or how to evaluate the effectiveness of organizations, and do not believe their modest donations can make a difference.”


The One Percent Foundation tackles those obstacles with its Giving Circle platform, where groups of people pool their financial resources to make a larger impact. While other fundraising platform, like Kickstarter, IndieGoGo and CrowdTilt, raise funds for a project or individual cause, Volftsun says that One Percent Foundation wants to turn philantrophy into a habit with its “subscription crowdfunding” model. Members of each Giving Circle can use the site to set up monthly recurring donations, nominate charitable organizations and vote to determine who receives the money.


“Instead of giving a couple hundred dollars on your own, our members are able to make a substantial impact when they combine their funds, often donating thousands as a group,” Volftsun says.


All of the money raised through One Percent Foundation's Giving Circles are distributed in grants. The organization supports itself through two revenue streams: tipping, where members are promoted to add a couple of dollars to their monthly contributions to cover One Percent Foundation's operating costs, and its new Pro Giving Circles.


The Pro Giving Circles platform is targeted at companies, schools and other organizations that want to create a sense of community among potential donors, instead of hitting them up every so often with fundraising drives (discounted rates are available for qualifying non-profits). In addition to the features of regular Giving Circles, Pro Giving Circles also include one-on-one guidance from the One Percent Foundation's staff and custom URL and branding. Potential use cases include startups that want to create a Pro Giving Circle with its employees to support charities that “reflect the values of the startup's culture,” says Volftsun. Non-profit groups and universities, meanwhile, can use the platform to engage alumni and other potential donors.







9:38 AM

“Philanthropist” is a daunting word that conjures up images of Bruce Wayne and other people with so much excess money and time that they hav...

Read more »
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Microsoft's operating system updates planned for 2015 reportedly have been code-named "Threshold." They involve the addition of a set of common elements -- high-value activities such as Microsoft Office, possibly the coming "Remix" digital storytelling app, Bing, Intune and Workplace -- to Xbox One, Windows and Windows Phone. The commonality of the updates "makes a lot of sense," said Directions on Microsoft analyst Wes Miller, as the company no doubt wants to create an ecosystem that bridges Xbox, Windows and Windows Phone.


9:08 AM

Microsoft's operating system updates planned for 2015 reportedly have been code-named "Threshold." They involve the addition...

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If you need a better night's sleep you can either kick the chickens out of your bed (true story) or try something like the NeuroOn. Designed to work as a sleep mask and neural sensor, the system knows when you are in deep REM sleep and slowly wakes you when you will be most alert and refreshed. It also allows DIY sleep experimenters to take cat naps during the day, opening up whole new vistas of unexplored work time between 2am and the crack of dawn.


The NeuroOn is primarily designed to enable polyphasic sleep. By cutting sleep into chunks – Da Vinci tended to sleep 20 minutes every four hours, it is said – you can reduce the amount of bed time you need. The founder, Kamil Adamczyk, created the device when he was studying and trying to start a company.


“It was terrible experience switching,” he said. “But the results were amazing.” He had more time to study and work. Using the skills he learned he built a prototype NeuroOn mask. The system currently measures a number of things including EEG, EOG and EMG as well as eye tracking. Using low-energy Bluetooth it connects to your phone and will vibrate and light when it's time to wake up. It fits snugly on the head like a sleep mask and keeps light out completely.


I've used a number of prototypes of this device and was quite impressed with the verve with which Adamczyk expressed his love of the product and his mission. While I was never able to actually sleep with this thing on, he does promise that it will start you on the road to Tesla-like productivity – provided you're willing to wear it with other people in the room. I first met the team in Warsaw and they subsequently showed up at Disrupt in SF and Berlin, presumably doing all this while sleeping a few hours a day.


You can get the mask for a <a target="_blank" href="“>pledge of $165 and they expect to deliver by May of next year. While I can't see all of us hitting the polyphasic trail, the mask is also a good sleep aid and will wake you gently and without much fuss when you need to be woken.


“People should buy it if they're working really hard and sleeping irregularly,” said Adamczyk. Sounds like all of us.








9:08 AM

If you need a better night's sleep you can either kick the chickens out of your bed (true story) or try something like the NeuroOn . Des...

Read more »
 
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