Peer to peer (p2p) lending was always an idea with great potential. It is a simple concept. Match people who want to borrow money with people who want to invest money. Cut the banks out of the equation and everybody wins.
Of course, it hasn’t been that simple. When the industry was just getting established the two leading players, Lending Club and Prosper, found themselves coming under the scrutiny of the Securities and Exchange Commission (SEC). In 2008, while still in their infancy, both companies had to go through the expensive and time-consuming SEC registration process. Even though many people were writing the industry obituary at this point both Lending Club and Prosper survived.
Today, both companies are thriving as the industry is gaining widespread support from borrowers and investors alike. With greater than 100% year over year growth p2p lending is one of the fastest growing investments. Industry volume is now over $50 million in new loans a month and over the Memorial Day long weekend total loan volume passed the $1 billion mark since the industry began back in 2006. → Read More
I’d started raising 3 rounds. One fell apart and the others raised $1M & $1.3M in a few weeks each. The startup game is a marathon and while I’m not yet qualified to give advice about crossing the finish line, I feel like I know a lot about the first 5 miles… It’s from that perspective I give the following advice to fellow founders who are looking to raise their seed rounds. → Read More
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EU Cookie legislation is now in force across Europe, but in a last minute change on Friday, the UK’s information commissioner amended the way it will be implemented in the UK. It’s now the case that sites will only have to obtain ‘implied consent’ from users not explicit consent. This is much friendlier for businesses but means the UK is now out of the step with the EU on privacy online and the transparency of cookies. In the middle of a recession, UK businesses probably won’t lose too much sleep. This is a much more pragmatic approach and most websites have yet to even comply with the legislation.
In this guest post, Mark Macdonald, of Skimlinks argues sites should still consider being up-front with users about their use of cookies.
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There are advantages and disadvantages of being one of the earlier companies in a very early market. While new companies get to watch, observe, and create their own insights based on product features incumbents develop, we get to constantly introspect on “what has worked” based on real data, real feedback, and being out in the market talking to partners.
The second screen space is going to be a multi-billion dollar market. Just last week, Tim Cook announced that 67M iPads were sold in less than two years. It took more than 24 years to sell that many Macs. With the growing trend of second screen activity (i.e. using tablets while you watch TV), there is bound to be major disruption in the TV industry. → Read More
When I was a graduate student at the MIT Media Lab fifteen years ago, my research group went on a retreat every year with Famous Computer Scientists from Xerox PARC. I greatly admired these people and their work. But I was young and in a hurry to get where I thought I was going. And it sometimes seemed that every time us young folks talked about our research, or showed a demo, someone would say something like, “oh, that’s very nice, when we did that at PARC ….”
Fast forward to the present. For the last few years, every time I see a new piece of small, open, hackable, networked hardware, or a new reputation engine, or a generative art piece, or a product built around location tracking plus real-time information push, or — well, you get the idea — I have to bite my tongue and think of the PARC folks to keep myself from saying, “oh, that’s very nice, when we did that at the Media Lab ….”
All of which just proves that the wheel of history revolves. New work is always new, by definition, even if it’s not entirely new (which nothing can ever be). → Read More
Every day there is a new headline about mobile payments focused on using a mobile phone to pay at retail locations. Paypal, Google and other industry giants are racing to provide new in-store mobile payment solutions. Large merchants, such as Wal-mart and Target have contemplated their own mobile payment solutions. The debate about whether NFC will be the preferred technology to enable mobile payments rages. However, despite all this press and efforts by industry giants, there is stunningly little traction to use a mobile device to pay at retail locations. This is largely because the solutions offered by industry giants thus far don’t solve a meaningful problem in the daily lives of consumers or merchants. Few things in life are easier for consumers than swiping a credit card at checkout and in-store payment systems are as easy and ubiquitous as dial-tone for merchants.
However, There is a massive mobile commerce opportunity that is a severe pain point for both consumers and merchants, but large industry players are failing to meaningfully address it. That opportunity is e-commerce on the mobile device or m-commerce. M-commerce is ramping up, proving that consumers not only like to shop via their mobile device, but also will purchase. However, the numbers also show that there’s significant room for improvement in the mobile device purchasing experience – mainly through optimizing the shopping and payment processes for consumers. → Read More
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If you’re like me, you’ve had enough of the Facebook IPO story. For tech entrepreneurs struggling to build stuff, the cacophony of recent press is just more noise. That’s why when my friend Andrew Chen posted an insightful analysis of Facebook user data, I was happy to get back to learning from what the company did right instead of debating what its bankers did wrong.
Chen calculated Facebook’s historical ratio of daily active users (DAU) to monthly active users (MAU) and the stats are startling. Since March 2009, when the earliest data is available, approximately 50% of Facebook users logged in daily.
As other technology companies struggle to maintain DAU to MAU ratios of 5% or less, Facebook’s numbers appear stratospherically high in comparison. But what is equally surprising is the consistency of that ratio over time. Despite periodic user revolts in reaction to changes in the site, the ratio remained strangely stable. In fact, the number has risen over the past year and is now hovering at 58% as of March of this year. → Read More
As software patent litigation ramped up over the past few years, software patents have come under the microscope within the technical community. Many investors and technologists believe that software patents should be abolished all together, while others take the less extreme position that many software patents are obvious over known prior art (“prior art” being earlier publications that show a patent is obvious or not new). Courts are increasingly cognizant of these criticisms.
Though it is unlikely that software patents are going away any time soon, as the recent summary judgment in eBay v PartsRiver (PartsRiver is now known as Kelora) demonstrates, courts are beginning to do a more thorough job of applying the obviousness standard to software patents. → Read More
The game is over. That game where they get to hire you for 40 years, pay you far less than you create, and then give you a gold watch, and then you get bored, you get depressed, and you die alone.
It wasn’t that fun of a game anyway.
When I had a corporate job I would wake up depressed. I couldn’t move out of bed. The sun would be coming in. A cat on the fire escape staring at me through the window. Even it was more excited to be alive than me. And, by the way, I had the best job in the world. I interviewed prostitutes for a living at three in the morning.
But they were going to kill me in my cubicle. → Read More
If you’re building apps for phones or tablets, here’s a must-see discussion for you. We were able to corral Greylock’s John Lilly (who recently helped lead an investment in Instagram, right before it was acquired) backstage at Disrupt NYC earlier this week for a more casual conversation about the mobile app ecosystem and hardware. In this short talk, Lilly shared his views about the similarities and differences of building applications for mobile devices, taking care to point out that he sees many great entrepreneurs approaching the phone in a similar manner to how they approach the tablet. While the operating systems are similar on iPhone and other iOS devices (like iPad), for instance, the use cases, usage by time of day, and monetization opportunities are entirely different. Lilly encourages entrepreneurs to ask how to get their ideas on the homescreens of users’ phones and tablets. → Read More
The government of Syria uses made-in-California technology from BlueCoat Systems to censor the Internet and spy on its pro-democracy activists (who are regularly arrested and tortured, not to mention slaughtered wholesale.) McAfee and Nokia Siemens have done the same in Bahrain, Saudi Arabia and Kuwait. Amesys of France and FinFisher of the UK aided brutal dictators in Egypt and Libya. Sweden’s Teliasonera allegedly took up the same cudgel in Belarus, Uzbekistan, Azerbaijan, Tajikistan, Georgia and Kazakhstan.
Meanwhile, back in the USSA, Bain Capital recently bought a Chinese video-surveillance company reportedly “used to intimidate and monitor political and religious dissidents,” and Cisco “has marketed its routers to China specifically as a tool of repression.” You can’t help but be impressed by how globalized the oppression-technology industry has become.
So what privacy/surveillance story caused an eruption of outrage this week? Yes, you guessed it: SceneTap, a startup that uses facial-recognition software to (anonymously)track demographics at bars and clubs in major American cities in real time. Forget the dissidents risking their lives for democracy: what matters is that the hipsters are creeped out! → Read More
Not everyone loves Facebook enough to give it three, four, or five spots on their homescreen. So yesterday’s launch of Facebook’s third consumer iOS app, Facebook Camera, could actually end up reducing usage of Facebook’s main app, Messenger, and others by compelling people to consolidate them into a folder.
This issue isn’t one just for Facebook but for any developer looking to break out specific features of a cluttered omni-app into streamlined standalone apps. Is a lightweight feel worth the risk of app overload? → Read More
Apple is continuing its “famous person uses Siri” commercials by bringing in famous person John Malkovich to add a soupçon of Old World weltschmerz and philosophizing to what is, in short, a way to schedule a wake-up call without unlocking your phone. The commercials feature Malkovich in what appears to be the house above the nasty places in Hostel where he muses on fine meats and the meaning of life.
I don’t quite get these celebrity appearances but, in the end, I suppose they’re good for brand awareness. Siri isn’t for the geeks – it’s for the folks who may have once been in love with BlackBerries. Siri suggests a certain ease, a certain subsumed technicality that would draw in the C-level exec and, in parallel, well-known superstars. It is, in short, a little assistant that will never talk back to you, never ask for a raise, and never request that you stop cursing. → Read More
With a wedding ring on his finger and his company public, is Mark Zuckerberg ready to make Facebook produce more profits, not just more social connections?
His fanfare-less marriage to long-time girlfriend Priscilla Chan this weekend would seem to indicate he won’t be getting too distracted by family life. But just before Facebook IPO’d on Friday, he announced on stage that “Our mission isn’t to be a public company.”
As the young CEO enters this next phase of his life, he faces perhaps his greatest challenge yet: building something that betters our lives while still bringing home the bacon. → Read More
Judging by many of the headlines on Friday, you might think that Facebook’s IPO was a miserable failure. The Wall Street Journal declared, “Facebook’s IPO Sputters,” and our very own TechCrunch declared that bankers were “struggling” to keep the share price up. Nevermind that it was the highest ever IPO valuation and one of the largest sums of money ever raised by a U.S. company. According to the pundits, what really matters is that the stock price didn’t increase in value–or “pop”–post IPO and is being propped up by banks. Taking bets on whether an IPO will “pop” provides entertaining fodder to help pundits promote their interests, but it misses the point. This view represents a fundamental misunderstanding of the purpose and economics of an IPO. By the correct measures, the Facebook IPO was a resounding success. Let me explain why. → Read More
Congratulations to Facebook for going public. Congratulations to the employees that are now millionaires. Congratulations to the founders who are now billionaires. Congratulations to the bankers, lawyers and investors who have added to their already considerable wealth. You’ve grasped the brass ring we’re all reaching for.
Yet the company that’s been created isn’t what I want from Silicon Valley. → Read More
A life-size fire-breathing dragon. A fully robotic calliope band. A full-scale flight simulator built by teenagers. An entire herd of homemade R2-D2s. Electric cars, steampunk fashion, a robot petting zoo, a piano made of bananas, and a cardboard Trojan Horse. Plus a zillion different interactive attractions, classes, and events for kids of all ages. Yes, the Maker Faire is back in town, and only just in time.
It was exactly the tonic I needed after my inability to get excited about the Facebook IPO and my ongoing sense that most of the Valley is focused on building meaningless mobile/social/local/scrapbooking sugar water. This was a place full of people building real, tangible things for the sake of sheer awesomeness. Oh–and while they’re at it, almost as a side effect, hidden behind their Burning-Man-esque decor is a community and technology ready to turn the whole planet on its ear.
The maker movement has hit an interesting flux point; its amateurs and enthusiasts, much like the computer geeks of the 1970s and 1980s, now stand on the verge of watching their hobby erupt into big business that will reshape the way people everywhere live. Do I sound hyperbolic? Don’t just take my word for it; listen to the mighty Economist, which in its British understated fashion recently called digital manufacturing no less than “The third industrial revolution.” → Read More
Last time I took a look at the most over-hyped topics of the Future of TV, and I thought a great follow-up would be to look at the reverse case. After all, it’s easy to sit there and critique, but what about the positive side, where’s the action happening but not being talked about as much as it could be? Here are four things going on in the TV industry that definitely don’t get enough respect… → Read More
Comcast’s plans to do away with its 250 GB data cap and charge users based upon usage marks the end of an era for cable TV providers, and for the online video industry. No longer will users be able to endlessly stream all the content their hearts desire. Not just that, but the fact that usage-based pricing is arriving at the same time that more, higher-quality content is appearing online could have a dampening effect on demand for services like Netflix or Hulu Plus.
Comcast, of course, says that its new, usage-based pricing policy is pro-consumer, and to a certain extent it is. The average broadband subscriber — those who only use up about 8 GB or 10 GB of data a month — shouldn’t necessarily pay the same as those whose usage goes above 300 GB in the same period of time.
But for those of us who are avid streaming video users, usage-based pricing models could change the overall value proposition of watching video on the Internet. → Read More
When an email hits our inbox, we know not only who it’s from but their entire web imprint. LinkedIn can point out the profile of the woman you interviewed for a sales role last week and the gentleman you spoke with earlier in the year at a conference.
And rest assured that the dining room set you checked out over the weekend at CrateAndBarrel.com will haunt your online experience for the forseeable future.
Data — its collection and manipulation at scale — has revolutionized how we interact online. Homepages, banner advertisements and what we see in our Facebook timeline are all tailored-to-fit the reader, and we don’t give it a second thought.
But the hyperlink, the key feature that distinguishes hypertext from text has remained largely unchanged since Sir Tim Berners-Lee invented the web. → Read More
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