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Sunday, January 19, 2014
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skimlinks

Skimlinks, a company that helps online publishers make money through affiliate links, says that it had a record year, driving more than $500 million in e-commerce sales.


A spokesperson told me that three quarters of Skimlinks sales go through affiliate networks that report e-commerce sales value, and they reported $402.3 million in sales driven by Skimlinks in 2013. However, since there are other networks that don’t report sales value, the company is estimating that it drove more than $500 million total for the year (more specifically, based on historical analysis, the company says the number was probably between $502 million and $536 million). That’s about double the sales from last year.


Skimlinks’ technology includes the ability to convert regular links and relevant words into affiliate links (in other words, links where the publisher is paid a commission for driving purchases). Recent additions include last fall’s launch of Skimlinks Editor, a browser plugin that allows publishers to compare the current affiliate commission rates across different merchants.


In a conversation with CEO Alicia Navarro before the launch, and in follow-up emails with a company spokesperson, Skimlinks emphasized that the Editor product is the first step toward “intelligent linking,” i.e., links that are automatically updated and don’t require any work from the writer, editor, or publisher: “They won’t have to find products or list prices; and readers won’t be faced with dead links or redirects or outdated pricing.”


Navarro acknowledged that providing monetization data may be seen as a risk to editorial integrity, and she noted that in some cases, publishers have chosen to hide the actual commission rates from editors. At the same time, she said, “There’s a very strong feel that publishers are realizing that if they keep doing what they’re doing, they’re going to become obsolete. … [and] that it’s not a dirty word, making money from something.”


Navarro added that that 2014 will involve building a lot more of that intelligent linking infrastructure.


One thing that doesn’t seem to be a big priority is mobile. While that seems to be where a lot of publishers and startups are putting their energy nowadays, Navarro said that when it comes to actually making purchases, there doesn’t seem to be much traffic from mobile, “So I don’t think we’re missing out on too much yet.”







3:09 PM

Skimlinks , a company that helps online publishers make money through affiliate links, says that it had a record year, driving more than $50...

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The nearly boozy Bitcoin rallies and crashes of 2013 led to endless media coverage, rising mass market knowledge of its existence, and piece by piece, the growing maturity of its underlying network.


No asset that regularly loses or gains 50% in a day can be treated as anything more than a speculative tool, and an incredibly risky one at that. However, in the new year, as the media firestorm has mostly abated around Bitcoin and its network of buyers and sellers has continued to improve and expand, something interesting has happened: Bitcoin has found and stuck to a trading range.


Now, compared to more traditional currencies, Bitcoin still moves around too much for the good digestion of those close to it. At the same time, over the past nearly two weeks, it has shown remarkable flatness, meaning that those wishing to use and accept it for commerce have had a period in which they could trust their sales and purchases to not swing to wild profit or loss by whim of the market.


The Bitcoin D1 chart remains as humorous as ever (in this case, D1 means that every chart point represents one day’s trading):


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But taking a look at an H4 chart of the recent history, and you will note that following the imposed vertical white axis, Bitcoin has essentially behaved itself. That marks shown is the 7th of January, past which Bitcoin has managed a real interval of lucidity:


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Compare the preceding and following sections of that chart — it almost feels like we are looking at two difference substances.


Price stability has been a Bitcoin bugaboo for as long as you can recall because the rise in the currency’s value was often correlated to news stories regaling its surges. Upward momentum and all of that. But instead if Bitcoin was to become a medium of exchange more so than a store of speculative hype, it needed to calm down. This, as you have seen has, lead to a denouement of media coverage of Bitcoin, even from your humble servant.


If you’ll allow the indulgent self quote, this is what we are talking about:



Bitcoin needs a more stable price, which can only come to fruition after its network becomes large enough to have validated the price of Bitcoin at a certain level. And for that it needs to attract more retailers, which are kept out by its price swings.


This is all simple in summary: The utility of Bitcoin as a currency and its value as an equity depend on its network, which provides the market opportunities for Bitcoin to behave as either.



Right. And, as retailers such as Overstock.com have come on board, so too has Bitcoin fallen from the media’s eye and managed a decent run of stable pricing.


A change in the winds?


Top Image Credit: Flickr







2:09 PM

The nearly boozy Bitcoin rallies and crashes of 2013 led to endless media coverage, rising mass market knowledge of its existence, and piece...

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sur

The London VC community has been buzzing with rumors since the end of last year about one particular firm and its next moves. That firm is Balderton Capital, considered one of the few, large VC firms in Europe, with more than $1.9 billion of committed capital. Balderton was one of the main beneficiaries of the $850 million exit of Bebo to AOL, and now counts firms such as Tictail, Qubit and Vestiaire Collective in its wide portfolio. Balderton’s last fund — Fund IV — closed in 2009 at just over $480 million. In its VC peer group, Accel Europe raised €359m in 2013 and has €1.5bn funds under management, while Index Ventures has €2.5bn under management and last raised its €350m fund in 2012. These funds are playing up and down the spectrum, from early to late stage. The question was, what was Balderton’s next play? Well, tonight it confirmed the rumors: one partner is taking a step back, another joins and the firm is now ‘doubling down’ to become a ‘mainly Series A’ VC in Europe – an equity gap which badly needs filling.


Suranga Chandratillake, founder of internet media company blinkx, will join as a General Partner. After 10 years based in Silicon Valley, UK-born-and-raised Suranga (36) will return to live in London and help lead early-stage investments in the online media and enterprise sectors.


Suranga founded blinkx, the intelligent search engine for video and audio content in Cambridge in 2004, later taking the company to San Francisco. It IPO’d on the London Stock Exchange in 2007, valued at $250 million (£125m) and was one of the best performing companies on the FTSE AIM 100 in 2013. Its now valued at over $1.3 billion (£855m) and is one of a small number of home-grown UK technology companies to have exceeded the $1 billion market capitalisation. Blinx generates revenue from online advertising and has 171 million users a month.


Back in 2012, Suranga stepped back from day-to-day management of blinkx to become the company’s first Chief Strategy Officer. effectively this was like becoming the Chairman, but he focused on strategy and product. . He’ll continue in this capacity and remain a director on the Board of blinkx, alongside his new position at Balderton. Before founding blinkx, Suranga was the US CTO of Autonomy, which sold to Hewlett Packard for $10.2 billion.


Chandratillake said: “Balderton is a natural fit for me. They are a smart, lean and driven team that makes high impact decisions and has the flexibility of thought and action that fast-growing technology companies need from their partners. The firm also has a strong Silicon Valley heritage, complementing my own experience, and can bring the US mindset to European venture exceptionally well.”


In a phone in interview he told me he “really loves” developing early stage companies and was approached by Balderton about the role last year.


“The VC industry has not changed as much as the entrepreneur community so I’m excited to be a rare commodity as a former entrepreneur, now a VC,” he said. He added that he is excited by the potential for European startups.


The second piece of news is the confirmation of the widely-mooted move of the firm towards Series A rounds. This was first indicated by the move of Daniel Waterhouse from Wellington Partners (which has €800m under management and last raised a €265m, largely science-based, fund in 2012) to join Balderton as a General Partner, focussing on early stage investments in the software and internet sectors.


The focus on Series A appears to have been coming for a while. Looking at Balderton’s recent activity last year. It’s done a number of Seed and Series A rounds, with a smattering of participations in Series Series C. But Techcrunch understands that the firm now wants to be known “as a pure-play Series A VC” and “usually the first institutional investor in early stage funding rounds” (said a well-placed source). This means Balderton is, to some extent, returning to its original roots – before it went independent – as the European arm of Benchmark Capital, which operates in a similar manner in North America.


However, these latest moves fully refresh Balderton’s team. Chandratillake, like his new fellow General Partner Bernard Liautaud, has managed to be one of the few to lead a European tech firm towards a $1 billion+ valuation. Liautaud co-founded Business Objects in August 1990 and led the company until it was acquired by SAP in 2008 for $6.78 billion.


Liautaud, general partner of Balderton Capital, said in a statement: “As the architect of one of the UK’s most successful internet technology companies, Suranga will be a great addition to our team as well as an invaluable mentor to the companies in our portfolio. He understands what it takes to create global and long-lasting businesses… Suranga’s commitment to returning to London after a decade in Silicon Valley signals how closely he shares our confidence and enthusiasm to identify and back the next generation of European entrepreneurs.”


Thirdly – while the firm is remaining coy about this move – TechCrunch understands that General Partner Barry Maloney (who previously led deals in companies such as Bebo, Rebtel and more recently Vivino) is effectively stepping down from the firm, while at the same time remaining an active adviser and board member with the firm’s existing investments. It would appear to be a natural move. Over his 12 years at the firm Maloney (formerly the CEO of Esat Digifone, Ireland’s second largest GSM mobile operator, later acquired by British Telecom for IR£2 billion) was best known for dealing in telecoms-style investments rather than the early stage online media and enterprise investments Balderton now looks to be focusing on.


Balderton has invested in over 100 companies, principally across Europe. Notable realised investments include Betfair (the online betting exchange, 2010 IPO), LOVEFiLM (the home entertainment subscription service, sold to Amazon in 2011), MySQL (the open-source database software, sold to Sun Microsystems in 2008), YOOX Group (the online retailer of leading fashion brands, IPO in 2009). Yoox is now worth $2.5 billion.


TechCrunch understands Balderton is looking to take three to four of its portfolio companies onto a public listing this year. Another investment, The Hut – the online retailer of clothing, gifts, beauty and home products – could well IPO, for instance.


The current portfolio includes innovative companies such as 3D Hubs, Globoforce, Kobalt, Natural Motion, Openet Scytl, Talend, Wonga, Wooga and WorldStores.







1:39 PM

The London VC community has been buzzing with rumors since the end of last year about one particular firm and its next moves. That firm is B...

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9:09 AM

It’s that time of week for an episode of CrunchWeek, the show that brings a few TechCrunch writers together to chat about the most fascinat...

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Saturday, January 18, 2014
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When we last met Play-i’s charming robots Bo and Yana they were busy pounding out tunes on a little colorful Xylophone and raising $1.4 million in crowdfunding cash. Now, however, they’re very nearly ready to ship and are doing some really impressive things that will help kids learn programming while having fun.


You can think of Play-i’s toys as sort of like the simple programming language, Logo, in physical form. You can program the robots using your iOS device and there are a series of introductory games that teach you the rudiments of programming including functions, subroutines, and loops. For example, the app asks you to play certain notes on the xylophone using Bo’s robotic arm – say five blue notes and five pink ones. To do this you must program the robot to hammer down five times, move over a few spaces, and hammer down five more times.


You can also add accessories to the robots and create, say, a platform for your LEGO creations or a mobile spy platform. While I’m always very skeptical of tech toys – they end up in the junk box far too soon and are often far too expensive – I’m impressed with how far the team has come in just a few short weeks. It looks like the product will soon be ready to ship and we will all have weird, blue robots running around our house busily hammering out jaunty tunes on our pets.







2:24 PM

When we last met Play-i’s charming robots Bo and Yana they were busy pounding out tunes on a little colorful Xylophone and raising $1.4 mi...

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robocop-bot

Remember last year? Edward Snowden! NSA! Shock! Horror! Dismay!


Looking back I’m amazed we all seemed so surprised. Over the last decade, pretty much every arm of American authority invoked “homeland security” as an excuse to acquire boatloads of new technology, and used it to help expand their power and authority to unprecedented levels. There is nothing at all exceptional about the NSA’s massive overreach. It was only keeping up with the Joneses — FBI, DEA, Border Patrol, police forces everywhere — who have all been busy doing exactly the same thing.


The impoverished city of Oakland is spending more than $10 million on a “Domain Awareness Center” surveillance hub for its cops, and cameras that track every license plate they see. Baltimore and NYC track license plates, too. Meanwhile, according to the LA Times, “Unmanned aircraft from an Air Force base in North Dakota help local police with surveillance,” and Motherboard reports: The Border Patrol’s fleet of Predator drones were loaned out 248 times in 2012, to “unnamed sheriff’s departments, the Department of Defense, the DEA, the Texas Rangers, and even the Bureaus of Land Management and Indian Affairs.”


Drones are just the tip of the hardware iceberg. Local police are now, as The Verge mordantly observed, “fighting crime with 18-ton military vehicles.” That’s just one example of the billions of dollars’ worth of military equipment given to police over the last few decades; and “a disproportionate share … has been obtained by police and sheriff’s departments in rural areas with few officers and little crime.” As Business Insider put it:



We produce so much military equipment that inventories of military robots, M-16 assault rifles, helicopters, armored vehicles, and grenade launchers eventually start to pile up and it turns out a lot of these weapons are going straight to American police forces to be used against US citizens.



A few choice examples from The Daily:



Cops in Cobb County, Ga. — one of the wealthiest and most educated counties in the U.S. — now have an amphibious tank. The sheriff of Richland County, S.C., proudly acquired a machine-gun-equipped armored personnel carrier that he nicknamed “The Peacemaker.”



And it’s not just equipment. It’s ethos and attitude. Police across America have increasingly begun to apply the military doctrine of using overwhelming force whenever possible. So SWAT raids rose over two decades from 3,000 a year to 50,000, including SWAT raids on illegal gambling, underage drinking, and Tibetan monks who overstayed their visas. Seven-year-olds are handcuffed and interrogated for hours over a missing five dollars (which they did not steal).


A few years ago, SF author Peter Watts* was arrested by the Border Patrol while trying to cross from America back to his native Canada, and eventually convicted (though, thankfully, not jailed) because, as he put it:



I just stood there, saying “What is the problem?”, just before Beaudry maced me. And that, said the Prosecutor in her final remarks — that, right there, was failure to comply. That was enough to convict.



As novelist Jo Walton* wrote:



One of the things that’s making me angry about the Peter Watts thing [...] is the way so many people [...] are saying that it must be his fault, that he must have done something to provoke it, that it wouldn’t have happened if he’d been polite and done what he was told and if he had, in effect, cringed more. This may well be the case. But is that the world you want to live in?



Unfortunately, it is in fact the world that many-to-most Americans live in today. The tech world — wealthy, educated, generally treated with respect by the authorities — seems to have been fairly blind to this fact … until cases began to crop up like Barrett Brown, weev, Aaron Swartz, and Jacob Appelbaum*, who recently observed:



There’s no real separation between the real world and the internet. What we’ve started to see is the militarization of that space. That isn’t to say that it just started to happen, just that we’ve started to see it in an incontrovertible, “Oh, the crazy paranoid people weren’t crazy and paranoid enough,” sort of way.



And so:



while, as Sarah Stillman writes in The New Yorker, regarding the ongoing appalling abuse of civil-forfeiture laws, “Americans who haven’t been charged with wrongdoing can be stripped of their cash, cars, and even homes.”


This collective power grab — I really don’t think that’s too strong a phrase — actually about security; it’s about organizations like the NSA concluding that since they can use new technology and novel legal interpretations to increase their power (and their budgets), therefore it’s imperative that they do.


It’s not that it’s bad for the authorities to use new technology. A lot of the time it’s an excellent idea. The NSA wants to listen in on high-confidence bad-guy cell-phone conversations in Yemen and Somalia? Fair enough. You can make a case for many aspects of Oakland’s Domain Awareness Center. And I’m a big fan of always-on chest/helmet cameras for police and others, for example, at least in theory … although of course, in practice, the authorities don’t like it at all when that footage gets out to the public.


But simply transposing military technology into the civil realm — or foreign surveillance techniques and tech into the domestic arena — seems really hard to justify to me, especially when violent crime is at a 40-year low across America… which is probably because of less lead, not more cops.


But nobody ever got a bigger budget and shinier tech toys by pointing facts like that out. The anthropic law of bureaucracies dictates that the ones which thrive are the ones which make self-perpetuation their first priority. And so now the police, and just about every American agency you care to name, and the contractors who supply them — call them the “security-industrial complex” — are implicitly colluding in the business of fear. The more shadowy enemies we have, and the more dangerous they seem, the more money the security-industrial complex gets, the bigger and more powerful it becomes, and the more secrecy it can justify.


So Chinese hackers, although they can hardly hold a candle to the NSA’s klieg lights, are trumped up as deadly online foes who might launch a so-called “cyberwar” at any moment. Important People somehow still manage to pretend, with straight faces, that the prohibitively counterproductive modern-day Prohibition called the War On Drugs is not evil, insane, futile, and doomed. And the War on Terror (which is a tactic, not an enemy — what’s next, a War On Pincer Movements?) means trumping up a diffuse group of of disorganized crazies who got lucky thirteen years ago into a deadly enemy on a par with mighty Soviet Russia.


Terrorists will attack America again, but they’re unlikely to be as lucky as they were in 2001, when they killed as many Americans as are killed by car crashes every six weeks. Drugs do ruin lives, although an overwhelming number of their users don’t become addicted, and experts say alcohol is worse than crack or heroin. And there are indeed many bad-news black-hat hackers out there.


But it seems painfully apparent to me that, in juicing the alleged defenders against these shadowy enemies with the steroids of military technologies, rules, and attitudes, we have transformed them into a cure almost worse than the disease. Alas, nobody seems to have the incentive — or maybe, soon, the ability — to stage an intervention and send them to the detox and rehab they so desperately need.


* Disclaimer/disclosure: Peter, Jo, and Jake are all personal friends.







6:09 AM

Remember last year? Edward Snowden! NSA! Shock! Horror! Dismay! Looking back I’m amazed we all seemed so surprised. Over the last decade, pr...

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In a keenly anticipated speech, President Obama on Friday announced reforms to the NSA's surveillance activities, but his pronouncements failed to please just about everyone. "We heard nothing in his speech or proposal that will repair the damage that has been done to the tech industry and the future of the Internet," said Matt Simons, director of social justice at ThoughtWorks. Obama's speech did not mention other necessary reforms, including requiring prior judicial review of national security letters, said EFF Legal Director Cindy Cohn.


5:09 AM

In a keenly anticipated speech, President Obama on Friday announced reforms to the NSA's surveillance activities, but his pronouncemen...

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