<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>Angel Blog Reviews &#187; markets</title>
	<atom:link href="http://www.claimangels.com/tag/markets/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.claimangels.com</link>
	<description></description>
	<lastBuildDate>Wed, 13 Jan 2010 19:34:21 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.0</generator>
<xhtml:meta xmlns:xhtml="http://www.w3.org/1999/xhtml" name="robots" content="noindex" />
		<item>
		<title>Mobile Web Meets Internet of Things: Barcode Scanning</title>
		<link>http://www.claimangels.com/social-media/mobile-web-meets-internet-of-things-barcode-scanning/</link>
		<comments>http://www.claimangels.com/social-media/mobile-web-meets-internet-of-things-barcode-scanning/#comments</comments>
		<pubDate>Tue, 12 Jan 2010 14:00:00 +0000</pubDate>
		<dc:creator>cgseo</dc:creator>
				<category><![CDATA[Social Media]]></category>
		<category><![CDATA[barcode]]></category>
		<category><![CDATA[black]]></category>
		<category><![CDATA[consumers-adopt]]></category>
		<category><![CDATA[countries]]></category>
		<category><![CDATA[culture]]></category>
		<category><![CDATA[internet]]></category>
		<category><![CDATA[iphone]]></category>
		<category><![CDATA[japan]]></category>
		<category><![CDATA[markets]]></category>
		<category><![CDATA[meets-internet]]></category>
		<category><![CDATA[mobile]]></category>
		<category><![CDATA[rfid]]></category>
		<category><![CDATA[shopping]]></category>
		<category><![CDATA[technology]]></category>
		<category><![CDATA[wikipedia]]></category>

		<guid isPermaLink="false">http://www.claimangels.com/uncategorized/mobile-web-meets-internet-of-things-barcode-scanning/</guid>
		<description><![CDATA[ Two of the biggest trends we tracked last year were Mobile Web and Internet of Things . In a new series on ReadWriteWeb, which we're calling Mobile Web Meets Internet of Things , we'll explore how these two important trends are converging and look at some cutting edge example products. We start with barcode scanning... Internet of Things is when everyday objects become connected to the Internet, via technologies such as RFID tags, sensors and barcodes. One trend we saw expanding in 2008-09 was mobile phones being deployed as readers for barcodes . Sponsor Increasingly, smartphones such as the iPhone, BlackBerry and Android devices offer applications that allow you to scan a barcode on a product or object and get more information about it. The Technology Barcodes are similar to RFID tags, in that they both hold data. RFID tags are generally more functional and flexible than barcodes . Also RFID tags can be read/write, whereas barcodes cannot. However the big advantage for barcodes is that they're cheaper, therefore we're more likely to see scanning as a consumer activity ramp up in the U.S. via barcodes. The most popular form of 2D barcode is the QR Code (the QR stands for "Quick Response"), which became popular in Japan and is now gaining traction in the U.S. and other markets. The Products In a series of posts written over September 2008, Sarah Perez analyzed the then burgeoning " scannable world ." As Sarah explained, barcode scanning is not a new technology on the Web. One of the first examples was :CueCat , a cat-shaped barcode reader from the late 1990s. It linked a user to a website by scanning a barcode in an article or other printed matter. CueCat never took off because it required a separate piece of hardware, but now in 2010 smartphones are the hardware . There's also no shortage of software circa 2010, such as ScanLife and the NeoReader app described in Part 2 of Sarah's Scannable World series . A variety of other barcode reading apps are listed in Part 3 of that series. There are a variety of use cases for barcodes on the Web. They include Semapedia.org (a non-profit project that aims to augment the physical world with Wikipedia data), QRContact (contact management via barcodes), and barcode wearables such as p8tch ("Think of it as a TinyURL you can wear"). But none of these is likely to become widely used in the mainstream, at least in the near future. What Will be The Tipping Point? In Japan, barcode scanning is already a popular activity thanks to the culture of using mobile phones for just about everything. In the U.S., where the Mobile Web took longer to ramp up, barcodes are yet to catch on. However there's one market where barcode scanning could become a mainstream activity in the U.S. and other countries. No, not magazine publishing - although there are valid advertising use cases there. We're talking about scanning retail products using your mobile phone . By the end of 2009, a lot of barcode scanning apps had gained popularity in the iPhone and Android, in particular. In November we listed our picks for scanning and other mobile shopping apps to test over Black Friday. There is no clear winner yet in the shopping scanning market, but here are some applications you may want to try: RedLaser (iPhone app getting rave reviews ) ShopSavvy (popular on Android) The Amazon Mobile app ; see also SnapTell , owned by Amazon StoreXperience CardStar pic2shop Point Inside ( good review on CNET ) CompareEverywhere (Android) ZXing Barcode Reader (Android) Thanks to followers of @rww on Twitter , who suggested some of those. Will Consumers Adopt Barcode Scanning? As well as adoption by retailers, another big question is: will consumers want to interact with real world products using their mobile phones? I suspect they will, once they begin to see compelling reasons for doing so - which will probably involve getting the best deals and being able to do advanced shopping comparison very easily. Finally, it's worth noting that Google is active in barcodes . Google's Favorite Places program allows local businesses to put a sticker on their products which features Google's logo, a scannable barcode and a message reading "We're a favorite place on Google." Barcode scanning and its applications will grow during 2010, meaning more and more real world data will be connected to the Internet and accessed on your mobile phone. There are many apps trying to entice consumers to wave their mobile phone in front of products, so let us know your favorites in the comments. Image credits: clevercupcakes ; Stan ; ScanLife Discuss ]]></description>
			<content:encoded><![CDATA[<p> Two of the biggest trends we tracked last year were Mobile Web and Internet of Things . In a new series on ReadWriteWeb, which we&#8217;re calling Mobile Web Meets Internet of Things , we&#8217;ll explore how these two important trends are converging and look at some cutting edge example products. We start with barcode scanning&#8230; Internet of Things is when everyday objects become connected to the Internet, via technologies such as RFID tags, sensors and barcodes. One trend we saw expanding in 2008-09 was mobile phones being deployed as readers for barcodes . Sponsor Increasingly, smartphones such as the iPhone, BlackBerry and Android devices offer applications that allow you to scan a barcode on a product or object and get more information about it. The Technology Barcodes are similar to RFID tags, in that they both hold data. RFID tags are generally more functional and flexible than barcodes . Also RFID tags can be read/write, whereas barcodes cannot. However the big advantage for barcodes is that they&#8217;re cheaper, therefore we&#8217;re more likely to see scanning as a consumer activity ramp up in the U.S. via barcodes. The most popular form of 2D barcode is the QR Code (the QR stands for &#8220;Quick Response&#8221;), which became popular in Japan and is now gaining traction in the U.S. and other markets. The Products In a series of posts written over September 2008, Sarah Perez analyzed the then burgeoning &#8221; scannable world .&#8221; As Sarah explained, barcode scanning is not a new technology on the Web. One of the first examples was :CueCat , a cat-shaped barcode reader from the late 1990s. It linked a user to a website by scanning a barcode in an article or other printed matter. CueCat never took off because it required a separate piece of hardware, but now in 2010 smartphones are the hardware . There&#8217;s also no shortage of software circa 2010, such as ScanLife and the NeoReader app described in Part 2 of Sarah&#8217;s Scannable World series . A variety of other barcode reading apps are listed in Part 3 of that series. There are a variety of use cases for barcodes on the Web. They include Semapedia.org (a non-profit project that aims to augment the physical world with Wikipedia data), QRContact (contact management via barcodes), and barcode wearables such as p8tch (&#8220;Think of it as a TinyURL you can wear&#8221;). But none of these is likely to become widely used in the mainstream, at least in the near future. What Will be The Tipping Point? In Japan, barcode scanning is already a popular activity thanks to the culture of using mobile phones for just about everything. In the U.S., where the Mobile Web took longer to ramp up, barcodes are yet to catch on. However there&#8217;s one market where barcode scanning could become a mainstream activity in the U.S. and other countries. No, not magazine publishing &#8211; although there are valid advertising use cases there. We&#8217;re talking about scanning retail products using your mobile phone . By the end of 2009, a lot of barcode scanning apps had gained popularity in the iPhone and Android, in particular. In November we listed our picks for scanning and other mobile shopping apps to test over Black Friday. There is no clear winner yet in the shopping scanning market, but here are some applications you may want to try: RedLaser (iPhone app getting rave reviews ) ShopSavvy (popular on Android) The Amazon Mobile app ; see also SnapTell , owned by Amazon StoreXperience CardStar pic2shop Point Inside ( good review on CNET ) CompareEverywhere (Android) ZXing Barcode Reader (Android) Thanks to followers of @rww on Twitter , who suggested some of those. Will Consumers Adopt Barcode Scanning? As well as adoption by retailers, another big question is: will consumers want to interact with real world products using their mobile phones? I suspect they will, once they begin to see compelling reasons for doing so &#8211; which will probably involve getting the best deals and being able to do advanced shopping comparison very easily. Finally, it&#8217;s worth noting that Google is active in barcodes . Google&#8217;s Favorite Places program allows local businesses to put a sticker on their products which features Google&#8217;s logo, a scannable barcode and a message reading &#8220;We&#8217;re a favorite place on Google.&#8221; Barcode scanning and its applications will grow during 2010, meaning more and more real world data will be connected to the Internet and accessed on your mobile phone. There are many apps trying to entice consumers to wave their mobile phone in front of products, so let us know your favorites in the comments. Image credits: clevercupcakes ; Stan ; ScanLife Discuss </p>
<p><img src="http://www.readwriteweb.com/images/cupcake_barcode.jpg" title="Mobile Web Meets Internet of Things: Barcode Scanning" alt="cupcake barcode Mobile Web Meets Internet of Things: Barcode Scanning" /></p>
<p>Read more from the original source:<br />
<a target="_blank" href="http://feedproxy.google.com/~r/readwriteweb/~3/HFX8RhlfbQY/barcode_scanning_mobile_web_meets_internet_of_thing.php" title="Mobile Web Meets Internet of Things: Barcode Scanning">Mobile Web Meets Internet of Things: Barcode Scanning</a></p>
]]></content:encoded>
			<wfw:commentRss>http://www.claimangels.com/social-media/mobile-web-meets-internet-of-things-barcode-scanning/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>More People Now Use iPhones Than Windows Mobile</title>
		<link>http://www.claimangels.com/social-media/more-people-now-use-iphones-than-windows-mobile/</link>
		<comments>http://www.claimangels.com/social-media/more-people-now-use-iphones-than-windows-mobile/#comments</comments>
		<pubDate>Thu, 17 Dec 2009 19:46:13 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Social Media]]></category>
		<category><![CDATA[analysis]]></category>
		<category><![CDATA[european]]></category>
		<category><![CDATA[from-the-source]]></category>
		<category><![CDATA[global]]></category>
		<category><![CDATA[jason-harris]]></category>
		<category><![CDATA[markets]]></category>
		<category><![CDATA[nexus]]></category>
		<category><![CDATA[phone]]></category>
		<category><![CDATA[source]]></category>
		<category><![CDATA[windows]]></category>
		<category><![CDATA[windows-mobile]]></category>

		<guid isPermaLink="false">http://www.claimangels.com/uncategorized/more-people-now-use-iphones-than-windows-mobile/</guid>
		<description><![CDATA[ The latest quarterly survey by comScore reports that the iPhone just passed Windows Mobile phones in US market share, though it remains at just over half the level of the Blackberry. The iPhone has been outselling Windows Mobile for some time, so it was only a matter of time until there were more iPhones in peoples' hands. Android is still at the back of the pack but is showing signs of significant momentum. Sponsor Tracing links back from blog to blog the comScore phone survey of users about what types of phones they have in their hands appears first on FierceDeveloper ; comScore's press contact was unavailable for comment but mobile developers say the numbers are unsurprising. Android growth has been steady but that platform remains below Windows Mobile, Palm's WebOS and Symbian. Another report by comScore this morning though found that consumer interest in Android is growing fast and now rivals consumer interest in the iPhone. "Of those American consumers in the market for a smartphone," comScore writes, "17 percent are considering the purchase of an android-supported device in next three months, compared to 20 percent indicating they plan to purchase an iPhone. Android's prospects may fare even better in the global marketplace. "Android will continue to pick up market share, especially in the global smartphone market, because of Symbian's lack of innovation in the last 3-4 years," mobile blogger Jason Harris told us today. "Symbian is said to have 37% worldwide market share, and this will further erode as more folks give Android a look. Especially with the Nexus One coming out - a phone that is sold directly from Google and not from your carrier - that's very cohesive with the European model. Right now Android has only been available from carriers, leading to OS fragmentation. Now with the Nexus One, the phone will come from Google itself, meaning your OS updates will be direct from the source, not via the carrier, who has customized the Android OS to their liking. That might work in the US, where we are carrier-centric, but not in other markets, especially emerging markets." Discuss ]]></description>
			<content:encoded><![CDATA[<p> The latest quarterly survey by comScore reports that the iPhone just passed Windows Mobile phones in US market share, though it remains at just over half the level of the Blackberry. The iPhone has been outselling Windows Mobile for some time, so it was only a matter of time until there were more iPhones in peoples&#8217; hands. Android is still at the back of the pack but is showing signs of significant momentum. Sponsor Tracing links back from blog to blog the comScore phone survey of users about what types of phones they have in their hands appears first on FierceDeveloper ; comScore&#8217;s press contact was unavailable for comment but mobile developers say the numbers are unsurprising. Android growth has been steady but that platform remains below Windows Mobile, Palm&#8217;s WebOS and Symbian. Another report by comScore this morning though found that consumer interest in Android is growing fast and now rivals consumer interest in the iPhone. &#8220;Of those American consumers in the market for a smartphone,&#8221; comScore writes, &#8220;17 percent are considering the purchase of an android-supported device in next three months, compared to 20 percent indicating they plan to purchase an iPhone. Android&#8217;s prospects may fare even better in the global marketplace. &#8220;Android will continue to pick up market share, especially in the global smartphone market, because of Symbian&#8217;s lack of innovation in the last 3-4 years,&#8221; mobile blogger Jason Harris told us today. &#8220;Symbian is said to have 37% worldwide market share, and this will further erode as more folks give Android a look. Especially with the Nexus One coming out &#8211; a phone that is sold directly from Google and not from your carrier &#8211; that&#8217;s very cohesive with the European model. Right now Android has only been available from carriers, leading to OS fragmentation. Now with the Nexus One, the phone will come from Google itself, meaning your OS updates will be direct from the source, not via the carrier, who has customized the Android OS to their liking. That might work in the US, where we are carrier-centric, but not in other markets, especially emerging markets.&#8221; Discuss </p>
<p><img src="http://www.claimangels.com/wp-content/uploads/2009/12/6d4f714822iphone.png.png" title="More People Now Use iPhones Than Windows Mobile" alt="6d4f714822iphone.png More People Now Use iPhones Than Windows Mobile" /></p>
<p>Excerpt from:<br />
<a target="_blank" href="http://feedproxy.google.com/~r/readwriteweb/~3/leq7ucWMMZs/more_people_now_use_iphones_than_windows_mobile.php" title="More People Now Use iPhones Than Windows Mobile">More People Now Use iPhones Than Windows Mobile</a></p>
]]></content:encoded>
			<wfw:commentRss>http://www.claimangels.com/social-media/more-people-now-use-iphones-than-windows-mobile/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Creathor Venture: European VC Moving to Federated Model for Global Expansion (RWS Interview)</title>
		<link>http://www.claimangels.com/social-media/creathor-venture-european-vc-moving-to-federated-model-for-global-expansion-rws-interview/</link>
		<comments>http://www.claimangels.com/social-media/creathor-venture-european-vc-moving-to-federated-model-for-global-expansion-rws-interview/#comments</comments>
		<pubDate>Thu, 26 Nov 2009 21:00:49 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Social Media]]></category>
		<category><![CDATA[china]]></category>
		<category><![CDATA[india]]></category>
		<category><![CDATA[internet]]></category>
		<category><![CDATA[interview]]></category>
		<category><![CDATA[korea]]></category>
		<category><![CDATA[markets]]></category>
		<category><![CDATA[mind]]></category>
		<category><![CDATA[office]]></category>

		<guid isPermaLink="false">http://www.claimangels.com/uncategorized/creathor-venture-european-vc-moving-to-federated-model-for-global-expansion-rws-interview/</guid>
		<description><![CDATA[ Creathor Venture is a 25-year-old venture capital firm based in Germany and Switzerland. That makes it unusual. In 1984, when it started, not a lot of VC funds were in Europe. So, we decided to speak with Cédric Köhler in Creathor's Zurich office. As innovation accelerates and globalizes, we wanted to find out how a smaller regional fund like Creathor can compete with much larger Valley-based firms that have a global footprint. And of course, we wanted to find out what's hot on the European tech scene. Read on to find out. Sponsor Aka Aki: European Play in the Web's Golden Triangle First, what's hot? In short: mobile + social + real time. That sounds like it was created by a random buzzword generator. But the combination can be very powerful. This is what Fred Wilson calls the Web's golden triangle . When Fred talks about this, Foursquare is probably at the front of his mind. He is an investor, and Foursquare is as hot as it gets. This area is hot for a reason. Mobile devices reach more people and occupy more of their time than desktops or laptops could ever do. But to reach people effectively on mobile, you need mobile-native services, built for the limitations and advantages of the small screen. (Standard HTML apps retro-fitted to mobile are like the talking heads in early television.) Mobile is inherently social: you use it to communicate with people. It has to be real time (or "just in time" if we want to be accurate), because the small screen demands a filter that shows only what is relevant right now. (Yes, that does pre-suppose great filtering capabilities.) When Cédric talks about mobile + social + real time, he is thinking about Aka Aki, in which Creathor has invested . The way Cedric puts it, Aka Aki "adds the dimension of time" to location-based services. This addresses the question, "Which of my friends is within shouting distance right now ." FourSquare is from New York, and Aka Aki is from Berlin. With location-based services, location matters. Specifically, density matters. People will use the service if it connects them to people they know locally. If I am in Rhinebeck, New York, discovering that I have friends in Manhattan, Zurich and San Francisco who are online right now does not help me. I am only interested in the friends in Rhinebeck. This is an argument for a territory-based expansion model. You become dominant in one area, and then expand to neighboring areas. This is the way business worked for centuries before the Internet. Then the Internet heralded the death of distance. You could create a site and get readers from all over the world. With mobile location-based services that connect you to people in the real world, the old territory-based expansion is returning - with a twist, of course. German, Then French, Then English? Aka Aki started in Berlin. As this blog from March 2007 shows, it was early to the game of mobile + social + real time. It got its first round of funding from Creathor in December 2007. Then, in October of this year, it got a second round from INNOVACOM , the leading French VC (with Creathor joining in that round as well). That is a natural expansion model. Aka Aki did well enough in Germany to raise a second round and then uses that to grow geographically. In this context, bringing on a French VC made a lot of sense. Insta-Site: The No-Barrier-to-Copying World Cédric gave us a good perspective on the early-stage investing scene in Europe. Like other European VCs, he pointed to the rash of copy-cat ventures in the Web 2.0 era. These have been referred to, more politely, as "concept arbitrage": someone sees a service doing well in one location and creates a version for their location. While "copy cat" is a derogatory term, Cedric was keen to point out that it has been a valid strategy in the past. As he puts it, "If I have a successful pizza shop in one location, I could probably create a successful one in another location". In the Internet business, many successful exits have been based on this model. But VCs around the world who we have spoken with tell us that this game is pretty well over. The reason? Well, it's all our fault. Bloggers and tweeters spread ideas so fast that the time needed to exploit a concept arbitrage has shrunk to nothing. The tools for building and deploying a website have also dramatically shrunk the time and cost to market. 1. Get idea on Monday, 2. Launch on Friday, 3. Move out of dorm room on Sunday. In the world of close-to-$0 insta-sites, the copy-cat model is being challenged. This is just like the arbitrage strategies on Wall Street. When friction goes, profits eventually wither as well. But Don't Underestimate Local Nuance We can still see big wealthy countries where the US Internet giants have not become dominance for one reason or another. For example, Google does not dominate search in Korea or China. What looks like a tiny bump from 30,000 foot can be a massive obstacle when you are in the war on the ground. This is even more true in the world of social media. By definition, social involves cultural norms, and they differ around the world (thank goodness for that, homogeneity is terribly boring). When social + mobile + real time connects people in the real world, the differences can be even more striking. We are all humans with similar basic needs, but the cultural differences between, say, Germans, the French, Americans, Brits, Chinese, Indians and Koreans (to name just a few) are significant. The Globalization Challenge for VCs The top-tier VCs on Sand Hill Road know that innovation is going global and that the biggest markets and best ventures may no longer reside within a few miles of their office. So, the big VC funds are setting up branch offices around the world. This is the traditional multi-national model. The problem is that it might not work as well in the VC world, where personal relationships matter so much and yet you have to make decisions very fast. The multi-national model does not easily square that circle. Venture capital is not a naturally scalable business. VC funds have to decide between staying local (i.e. being a small firm of partners who can meet face to face every Monday in their office) and going global. The business does not scale well. If you bring in more partners, you won't be able to maintain the situation in which all partners agree on every deal. That would create way too much overhead and friction. Fast decision-making overrides the standard layers of corporate management approval. On the other hand, if local partners are making the investment decisions, what value would they get from being part of a big global fund (one in which the folks way over at head office take a big chunk of their profit)? Is branding really that important? Smart entrepreneurs know that a fund's name (i.e. its brand) is much less important than the individual partner who they deal with. This is a strategic dilemma for big funds. Federated Best-of-Breed VC Creathor, along with other smaller regional funds, is moving towards a federated model. As Cedric puts it, "We are partnering more with other funds." In one sense, this is nothing new. VCs have always worked together on deals. But in the past, this usually meant two VCs on Sand Hill Road meeting at a Palo Alto coffee shop. Now, it means a Swiss fund working with a French fund (or a New York or Indian or Chinese fund). European VCs have to innovate in this way. They cannot win on the multi-national model: their funds are not big enough for that. As the markets move East - to China and India, for example - VCs have to "be there." Similarly, a VC in Asia needs to work with VCs in Europe and America. It will be interesting to see how the globalization of innovation plays out and what new models emerge. Discuss ]]></description>
			<content:encoded><![CDATA[<p> Creathor Venture is a 25-year-old venture capital firm based in Germany and Switzerland. That makes it unusual. In 1984, when it started, not a lot of VC funds were in Europe. So, we decided to speak with Cédric Köhler in Creathor&#8217;s Zurich office. As innovation accelerates and globalizes, we wanted to find out how a smaller regional fund like Creathor can compete with much larger Valley-based firms that have a global footprint. And of course, we wanted to find out what&#8217;s hot on the European tech scene. Read on to find out. Sponsor Aka Aki: European Play in the Web&#8217;s Golden Triangle First, what&#8217;s hot? In short: mobile + social + real time. That sounds like it was created by a random buzzword generator. But the combination can be very powerful. This is what Fred Wilson calls the Web&#8217;s golden triangle . When Fred talks about this, Foursquare is probably at the front of his mind. He is an investor, and Foursquare is as hot as it gets. This area is hot for a reason. Mobile devices reach more people and occupy more of their time than desktops or laptops could ever do. But to reach people effectively on mobile, you need mobile-native services, built for the limitations and advantages of the small screen. (Standard HTML apps retro-fitted to mobile are like the talking heads in early television.) Mobile is inherently social: you use it to communicate with people. It has to be real time (or &#8220;just in time&#8221; if we want to be accurate), because the small screen demands a filter that shows only what is relevant right now. (Yes, that does pre-suppose great filtering capabilities.) When Cédric talks about mobile + social + real time, he is thinking about Aka Aki, in which Creathor has invested . The way Cedric puts it, Aka Aki &#8220;adds the dimension of time&#8221; to location-based services. This addresses the question, &#8220;Which of my friends is within shouting distance right now .&#8221; FourSquare is from New York, and Aka Aki is from Berlin. With location-based services, location matters. Specifically, density matters. People will use the service if it connects them to people they know locally. If I am in Rhinebeck, New York, discovering that I have friends in Manhattan, Zurich and San Francisco who are online right now does not help me. I am only interested in the friends in Rhinebeck. This is an argument for a territory-based expansion model. You become dominant in one area, and then expand to neighboring areas. This is the way business worked for centuries before the Internet. Then the Internet heralded the death of distance. You could create a site and get readers from all over the world. With mobile location-based services that connect you to people in the real world, the old territory-based expansion is returning &#8211; with a twist, of course. German, Then French, Then English? Aka Aki started in Berlin. As this blog from March 2007 shows, it was early to the game of mobile + social + real time. It got its first round of funding from Creathor in December 2007. Then, in October of this year, it got a second round from INNOVACOM , the leading French VC (with Creathor joining in that round as well). That is a natural expansion model. Aka Aki did well enough in Germany to raise a second round and then uses that to grow geographically. In this context, bringing on a French VC made a lot of sense. Insta-Site: The No-Barrier-to-Copying World Cédric gave us a good perspective on the early-stage investing scene in Europe. Like other European VCs, he pointed to the rash of copy-cat ventures in the Web 2.0 era. These have been referred to, more politely, as &#8220;concept arbitrage&#8221;: someone sees a service doing well in one location and creates a version for their location. While &#8220;copy cat&#8221; is a derogatory term, Cedric was keen to point out that it has been a valid strategy in the past. As he puts it, &#8220;If I have a successful pizza shop in one location, I could probably create a successful one in another location&#8221;. In the Internet business, many successful exits have been based on this model. But VCs around the world who we have spoken with tell us that this game is pretty well over. The reason? Well, it&#8217;s all our fault. Bloggers and tweeters spread ideas so fast that the time needed to exploit a concept arbitrage has shrunk to nothing. The tools for building and deploying a website have also dramatically shrunk the time and cost to market. 1. Get idea on Monday, 2. Launch on Friday, 3. Move out of dorm room on Sunday. In the world of close-to-$0 insta-sites, the copy-cat model is being challenged. This is just like the arbitrage strategies on Wall Street. When friction goes, profits eventually wither as well. But Don&#8217;t Underestimate Local Nuance We can still see big wealthy countries where the US Internet giants have not become dominance for one reason or another. For example, Google does not dominate search in Korea or China. What looks like a tiny bump from 30,000 foot can be a massive obstacle when you are in the war on the ground. This is even more true in the world of social media. By definition, social involves cultural norms, and they differ around the world (thank goodness for that, homogeneity is terribly boring). When social + mobile + real time connects people in the real world, the differences can be even more striking. We are all humans with similar basic needs, but the cultural differences between, say, Germans, the French, Americans, Brits, Chinese, Indians and Koreans (to name just a few) are significant. The Globalization Challenge for VCs The top-tier VCs on Sand Hill Road know that innovation is going global and that the biggest markets and best ventures may no longer reside within a few miles of their office. So, the big VC funds are setting up branch offices around the world. This is the traditional multi-national model. The problem is that it might not work as well in the VC world, where personal relationships matter so much and yet you have to make decisions very fast. The multi-national model does not easily square that circle. Venture capital is not a naturally scalable business. VC funds have to decide between staying local (i.e. being a small firm of partners who can meet face to face every Monday in their office) and going global. The business does not scale well. If you bring in more partners, you won&#8217;t be able to maintain the situation in which all partners agree on every deal. That would create way too much overhead and friction. Fast decision-making overrides the standard layers of corporate management approval. On the other hand, if local partners are making the investment decisions, what value would they get from being part of a big global fund (one in which the folks way over at head office take a big chunk of their profit)? Is branding really that important? Smart entrepreneurs know that a fund&#8217;s name (i.e. its brand) is much less important than the individual partner who they deal with. This is a strategic dilemma for big funds. Federated Best-of-Breed VC Creathor, along with other smaller regional funds, is moving towards a federated model. As Cedric puts it, &#8220;We are partnering more with other funds.&#8221; In one sense, this is nothing new. VCs have always worked together on deals. But in the past, this usually meant two VCs on Sand Hill Road meeting at a Palo Alto coffee shop. Now, it means a Swiss fund working with a French fund (or a New York or Indian or Chinese fund). European VCs have to innovate in this way. They cannot win on the multi-national model: their funds are not big enough for that. As the markets move East &#8211; to China and India, for example &#8211; VCs have to &#8220;be there.&#8221; Similarly, a VC in Asia needs to work with VCs in Europe and America. It will be interesting to see how the globalization of innovation plays out and what new models emerge. Discuss </p>
<p><img src="http://www.readwriteweb.com/images/creator_venture_nov09a.png" title="Creathor Venture: European VC Moving to Federated Model for Global Expansion (RWS Interview)" alt="creator venture nov09a Creathor Venture: European VC Moving to Federated Model for Global Expansion (RWS Interview)" /></p>
<p>Read more here:<br />
<a target="_blank" href="http://feedproxy.google.com/~r/readwriteweb/~3/AiIYMh02E10/creathor-european-vc-move-to-federated-model.php" title="Creathor Venture: European VC Moving to Federated Model for Global Expansion (RWS Interview)">Creathor Venture: European VC Moving to Federated Model for Global Expansion (RWS Interview)</a></p>
]]></content:encoded>
			<wfw:commentRss>http://www.claimangels.com/social-media/creathor-venture-european-vc-moving-to-federated-model-for-global-expansion-rws-interview/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
	</channel>
</rss>
