What's up with the NYTM and NY tech? Interview with Rick Karr

During Internet Week, I spoke with Rick Karr about what’s going on in NY tech and with the NY Tech Meetup. Obviously it’s tough to get everything I think into a three minute interview, but I post this here because I think its about the most concise and articulate I’ve been on the subject, on film. So enjoy…

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AnyClip: Project "Peek-a-boo"

Today, we launched a new homepage at AnyClip. I couldn’t be more proud of my team.

The homepage — dubbed “peek-a-boo” by our newest designer, Nicole — is about pure movie moment discovery and exploration.

At the top, we show you three things we think are awesome and relevant for the day. Your work is done for you.

Below that, we highlight moments others have already discovered, but via our powerful SceneSearch™ technology. Want to change the results? Just type in an different City, or Object or Action and see how deep the “rabbit hole” really goes (type in “Mexico” in the places and you’ll see what I mean).

Anyway, I would love it if you would check it out and let me/us know what you think. More amazing updates coming the the coming “sprints,” but this is a big step, and again, the team should be very, very proud of their work.

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The New York Exit, The Soft Underbelly of NY Tech's Ecosystem, and IAC's Saving Grace

Last month, the idea that Foursquare could exit to Yahoo! for $120+ million had everyone abuzz.

“This means NY tech has come to its own!” people exclaimed. Finally, we had a major player in the social web space. It was a company born here and grown here. Now it was on the brink of being sold for big money. It was a proof point that NYC could breed a serious batch of startups post-Web 1.0.

But if anything, the “Fourhoo episode” was also a scary wake-up call for those of us invested in the future of the NY tech ecosystem. If Foursquare sold — to Yahoo!, to Facebook, or to anyone else in the space — they’d undoubtedly end up in the hands of a Silicon Valley company, and its IP and (probably) leadership would be shipped out of town, taking any future value creation with it. (Sure, they may keep the jobs here, but the profit and reinvestment? Future product integrations?)

As it turns out, this whole exit scenario is a sham for the local environment, and here I thought exits were a good thing. What’s the matter with New York?! Here we are producing a fleet of World Class startups, and an exit for our startup scene means depleting its resources?

This sounds bad. And it is.

Despite the massive amount of progress in the NY early stage scene, one sadness remains: the closest thing to a big local tech company which can acquire our startups is IAC — and IAC is decidedly an “Internet Media” company, not an Internet technology company.

And we need a big ol’ Internet Technology company here.

Does that mean its time, as a City, to embrace IAC and convince it to become a tech company? Perhaps.

Is there a snowball’s chance in hell that the right series of acquisitions and leaderships changes would turn IAC into a major tech (rather than media) player? Yes, there is — and I think this would be a good thing for the company and for the City.

While tech is not in Barry Diller’s wheelhouse, now is the time for him to invest in tech. Looking at his revenue sources, a whole lot is tied up in Ask.com Search revenue, a share of which I think we all know will decline in the long-run for him. After that, he has a sturdy position in Match.com, but this is an area I think is prime for major disruption.

So will IAC be NYC’s saving grace here? I don’t know. As I’ve said, they could be. But either way this problem must be solved. Undoubtedly, our startups need liquidity events, and undoubtedly those will come in the form of M&A 9 times out of 10. Right now it seems those M&A event only exist outside of the City, leaving us in a highly vulnerable place.

Does anyone have an idea how this is going to play out? If not IAC, who will save us?

UPDATE: My friend, and astute industry observer, Caroline McCarthy points out to me the obvious, that AOL could also the “savior” I’m looking for. That’s true, but I don’t see it. AOL has doubled down to BE media company even more than IAC IS a media company. I think they can turn themselves into a great company, but AOL is not going to be a tech company.

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Going Premium

My dear friend Sam Lessin has gone premium and stopped blogging.

It was bound to happen. After a few years of blogging and sharing his amazing insights, Sam had been writing with increased passion about the value of scarce information. Obviously, a blog keeps information from being scarce, and a pay email list puts a premium on it, and so Sam did what any self-respecting theorist would do and decided to walk the walk.

I, for one, have become one of Sam’s first subscribers. I’m certain it will be worth it. But I didn’t stop there. I’ve also started my own premium newsletter, called the “innonate insiderly.”

In the “Insiderly,” I’ll be writing things not fit for this blog. For instance, this morning I wrote in detail about a new exercise I’ve asked my product team to go through. While I may have shared only general information about the exercise in a public blog post, I went in considerable detail on my thinking in the premium email setting. People who pay deserve to know, right?

We’ll see how long before my “competition” subscribes.

Until then, see you here in my regular sporadic form, and see you there in my newly sporadic form.

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Movie Nights Everywhere — Getting People Who Love Movies… Offline

I love movies (that shouldn’t surprise you). I also love being online (that really shouldn’t surprise you). And of course, I totally 100% love movies online (I send hundreds of bucks a year to iTunes and Netflix).

However, I also really love the offline world more than the online world — no kidding!

This is why I’m proud to announce AnyClip’s “Movie Night” initiative. It’s time for people to get offline watching movies with each other and make “Movie Nights” with your friends, or wider community, in again.

I first came up with the idea of doing AnyClip Movie Nights when Meetup.com announced their amazing new Meetup Everywhere platform. With Meetup Everywhere, I can make a page (like our Movie Night page here), and anyone in the world can become an Organizer of a local movie night.

So, if you’re interested in hosting a movie night, please go plan one! I’m super excited to see that our friends down at Indy Hall in Philadelphia are already pulling one together, and if you’re in San Jose, Anita is looking for more people to join her.

What more, if you’re hosting a movie night and you have 10 or more coming over, let us know… and AnyClip will provide the popcorn!

So go have at it! Plan a Movie Night!

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Just 100%, totally stoked about NYC right now

Seriously folks, how can you not be totally stoked about what’s going on in NYC right now?

Yesterday, I ended up at three awesome Internet Week events. Each had a unique and interesting crowd. Everyone had this great vibe going, where they were excited to be there, excited for NYC, but just itching to get back to their desks to make their startups awesomer.

That is what’s getting me excited about NYC tech is getting these days. Despite all the attention and hype it and its companies are getting, people are totally focused on creating real value and building great companies. And while I think this week’s celebration of the City’s Internet industry is definitely appreciated by everyone who participates in it, there’s almost a healthy and collective “ugg” that I’ve heard from most startup people I know.

“When can I get back to work?” they ask. That’s the spirit! Seriously!

So I look forward to seeing many of you throughout the week this week. I’ll of course be at the NY Tech Meetup tonight (it’s our largest ever, with 860 in attendance, and Internet Week’s largest public event). Later on, I’ll be attending the Webutante Ball, which is a fundraiser for City Harvest.

If you have any tips on great events for me to attend, please let me know in the comments.

Go NYC!

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The Case for Four

Yesterday, my friend, mentor and colleague, Jeff Bussgang wrote a post questioning the validity of a 4 year vesting cycle for startup founders. On behalf of all the founders out there, I’m going to disagree.

His argument: startup exits how happen at a slower pace than in the 90s. Then, 4 year vesting made sense, because that often coincided with an exit. Today, Jeff argues, the average exit happens in 6 – 8 years, so he argues for our industry to change its ways and move up from 4 to 6 or 8 years?

My argument: all founders need to kick ass in the first 4 year. The best ones you need for longer, so you’re going to have to step up and make it more interesting.

Zero to 60

First of all, founders universally serve only one purpose: the take the company from Zero to 60. While some founders end up being great long-term managers (I’ll talk about these folks below) the skill that all founders have to have in common is taking a company from idea to operating and scaling.

With that as a baseline, a four year vesting cycle makes sense, because four years is about the time needed between inception and knowing whether or not you have a win, lose, or draw of a company.

Beyond that, most (web/tech) companies are executing on a vision which could never be longer than four years away. If you’re Shai Agassi and a founder of Better Place, maybe your visionary horizon has to be longer than four years, but any web/tech entrepreneur worth funding has better be executing on a max-four year visionary horizon (even if he or she has views about how the looks 6 or 10 years out). The consumer landscape they see before them is shifting rapidly, and the best entrepreneurs see and execute on what’s 1, 2 — maybe 4 — years ahead. But not 6 or 8.

Keeping Us Around

So, let’s say you’ve stumbled upon a Steve Jobs or a Jeff Bezos. You’ve just funded a company with both a pioneering visionary for the first 4 years, and he or she also turns out to be an an innovative manager for the next 4, or more years. Lucky you, Mr. & Mrs. VC. :-)

So, you want to keep your visionary AND expert-manager founder around for the long-haul? You’re now going to have to make things more interesting than that stock we just accrued after 4 brutally tiresome years.

In this case, all companies turn to increasing the founder’s (now quite diluted) equity pool with stock options, many start to pay the founder more market-rate salaries, and increasingly more Boards now allow the founders to sell-off part of their equity pool, so they can pay back loans, buy a house, maybe take a vacation — all while still plowing ahead, giving the company their incredible and continuing vision and managerial skills.

When you, the investors, handed us a term sheet 4 years ago and asked to invest in our company, you signed up for us taking our company from Zero to 60. I think that if the VC community wants to change that initial vesting cycle, we should also rethink how much of the company founders will actually end up with after locking up their lives for 6 or 8 years, and perhaps readdress startup valuations and options programs.

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Spliced

Over at AnyClip we just pushed a nice little release, which included putting the Facebook Like button throughout our site (my first “Like” was on the Office Space page) as well as major enhancements to our search algorithm and some new tools for our users to start adding more and more data.

I’ll blog about these new tools soon, I hope, but first I want to announce a major new initiative of ours, called “Spliced.”

What’s Spliced?

Spliced is a new, awesome, amazing, insightful, funny, and smart film blog :-)

What makes Spliced different?

I blogged more about it here, but in short, we’re going to blog about films and the film industry uniquely the way AnyClip would: through the lens of film moments.

Who should read Spliced?

You! We’re writing Spliced with all film-lovers in mind. We won’t bombard you with a thousand posts a day, instead we’ll publish interesting and thoughtful posts that movie die-hards and and n00bs (like me) will enjoy. We’re also going to blog our fair share about the movie industry, especially the digital film industry.

Okay! That’s it for now. Go read Spliced!

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Down and Out on the Twitter Ecosystem

You think that Twitter has just become a threat to its developer community in the last month? Twitter being a closed system has been an issue since the beginning. It’s just getting worse.

Below is a stub/draft of a post I started writing on November 24th of 2009, and which has languished since in my pile of unpublished posts (title written then, too). Considering everything that went down with Twitter this month, boy do I wish I had finished and posted it then. It would have made me look pretty smart! :-)

For lack of looking smart, I’ll look tardy and publish the stub here:

For the last several months, I’ve been down and out on the Twitter Ecosystem. Here’s why it being a closed platform means it will ultimately wither into obscurity, taking its friends with it.

Being down on the Twitter Ecosystem hasn’t been easy to do. The Twitter Ecosystem encompasses a lot of services I care a lot about: Twitter itself, Twitter Search, Bit.ly, TweetDeck, and even smaller apps, like Klout and CoTweet, or even, peripherally, apps like Foursquare.

I love these great apps — some more than others — but that love doen’t quell my fears about Twitter and its ecosystem. I think they’re in for a massive value degeneration. Here’s why:

If as anything, Twitter has made the big time as a Communication Platform (more than a social network). I believe it’s earned its right to stand among other great Communication Platforms, like Instant Messager (IM), SMS (texting), telephony, and even Email.

Those are some pretty impressive platforms, right? Shouldn’t Twitter should be in good shape? Think again.

Ecosystems around Communication Platforms require a very specific conditions to flourish: the underlying platform must be distributed, open, and flexible. Twitter has none of these traits.

For as long as Twitter has been around, I’ve had these concerns.

My most loyal and long-time readers will remember when I posted about Identica and Laconica back when they came out in July of 2008. Then, I was quite sure we would all be “saved” by diversity in the microblogging space (to give you an idea of how “long ago” it was, I referenced Dodgeball as one of the competitive real-time nodes).

Today, as we all know, Twitter was able remain autonomous and, by default, keep a stranglehold on their underlying architecture of the majority of what we then called micro-blogging (and now call “real-time web”) .

However, as we did learn recently, the issues of platform stability (which largely led the hooting and hollering about needing a federated system) are still here. This time, the platform stability that’s at the front of our minds isn’t a matter of “fail whales” and downtime but an issue of squashed companies — the inhabitants and biggest sponsors of the ecosystem.

Make no mistake: the centralization of the Twitter platform puts a dark cloud over any company in the ecosystem — especially the most disruptive. The days of Summize are no longer. Twitter is no loner a scrappy startup who needs to buy the most disruptive technologies from without, exchanging a bit of cash for a ton of stock, and at a low valuation. Twitter will now, even in the opinion of its biggest fans, have a much harder time growing the next order of magnitude of value, but also has enough fire-power to build whatever it wants.

What does that mean for the ecosystem? Be disruptive, create a lot of value, and risk getting replaced or bought for stock at a valuation which is quite possibly the most Twitter will ever be worth.

Fuck that.

Okay. So maybe I’m crazy and hyperbolic. Maybe Twitter will be a $20B company one day and it will never use its position in the middle of the ecosystem to deprecate and original value creator — it will just buy them at low, low valuations, and the ones they buy won’t have any competitors who will get left behind in the dust.

Maybe.

Okay. Maybe I’m not thinking as critically as I should about the voluntary participants in this ecosystem. It’s their prerogative to invest here, right? They surely know how to gauge the risks just as well or (hopefully) better than I can. You’d say “it’s a free market.”

And you’d be right.

So here I am back at where I was with the Identica / Laconica post from two years ago. Hooting and hollering about the perils of a centralized system.

Twitter got away with what they’re up to for the past two years and more than flourished. All the power to them and let’s hope for them and others that they continue to flourish while somehow maintaining a healthy ecosystem around them.

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Congrats to Qlipso

Image representing Qlipso as depicted in Crunc...
Image via CrunchBase

Last month, my friend Jon Goldman came to town and demoed Qlipso to a sold-out NY Tech Meetup audience.

What we didn’t know at the time is that he was right in the middle of buying Veoh.com!

Erick Schonfeld, among others, got the goods.

Moral of the story: the “Shared Video Experience” trend is worth keeping track of, and now that Qlipso will be integrate into Veoh, which still boasts huge traffic numbers, its a trend which will get its chance.

Good luck and congrats to Jon, Ishay, and the Qlipso team.

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