Startup

Angel investor Ron Conway to portfolio: Cut expenses now

Ron Conway, an investor in more than 100 contemporary tech start-ups and about that many in the last tech boom, sees the current financial environment as very similar to the 2000-2001 tech economy meltdown. His advice, as he laid it out to me earlier today and to his portfolio companies yesterday in an e-mail (after the jump), is the same as it was then: "Raise money internally by reducing cost."

He says, "The funding climate is going to tighten no matter what we do. The sooner we can prepare for it, the better."

At least, he says, entrepreneurs are more mature and proactive than they were in the last downturn. They're coming to him, some with cutback plans and some just seeking advice. As he puts it, the ones who come to him and say, "Walk me through the steps I should be taking," are the ones that will weather the storm.

Conway still feels it's a great time to start a company: if you're a "great entrepreneur with a great business idea," he says, "now is as good a time as any." But "hold on to your day job while you are raising money." … Read more

CNET News Daily Podcast: Cutting through a security hairball

Maybe it's something in the air but a myriad of security concerns surfaced, seemingly all at once, on Thursday. CNET News' Elinor Mills sits down with Kara Tsuboi to talk about one aspect... Apple and other music retailers won't have to pay higher royalty rates...On a day when the stock market again wilted, there's still optimism among some tech start-ups.

Listen now: Download today's podcast

Today's stories:

To encrypt or not to encrypt

Ceatec companies feel the credit crunch

Analyst sees desperation in Microsoft SearchPerks

Obama releases iPhone recruiting, campaign tool

Nintendo says more Wiis available for holiday season Read more

How start-ups can survive

In 2001, the first dot-com economy collapsed. New companies couldn't raise funds to continue operating. Existing companies couldn't go public or get bought. My employer (Red Herring) folded, as did hundreds of other businesses. Almost all companies with speculative growth-based (as opposed to revenue-based) business models died off. And Aeron chairs flooded the market.

We're heading into another start-up downturn right now. Erick Schonfeld on TechCrunch points out how the credit crunch will lead to a venture crunch, and Jason Calacanis' latest e-mail newsletter predicts that "50-80 percent of the venture-backed start-ups currently operating will shut … Read more

14 celeb-powered start-ups: Where are they now?

Earlier this week, Gwyneth Paltrow's new start-up Goop.com went live. The site promises to have tips for food, shopping, and life in general from the actress.

There's no telling whether it's going to be more of a blog or an actual business venture with branded products, an editorial staff, and a synergistic TV program. What we do know is that Paltrow is simply the latest in a long string of celebrities who have come off the big screen (or out of the recording studio) and onto the Web with products and services backed with their money and persona.

Below are 14 recent ones, including updates on whether they're still around.

Celebrity: 50Cent Site: ThisIs50.com ThisIs50.com is a cross between an online resume and a place for fans to gather. What makes it an interesting business venture is that it's been created using the build-your-own social network service Ning. 50Cent, whose real name is Curtis Jackson has leveraged all sorts of brand integration like a Kyte.tv video player and links to various places to buy and stream his music, including imeem.

Status: Alive and kicking, although it's a visual mess. There's also a 50cent.com, which is far cleaner and powered by MTV-owned Flux.

Celebrity: Ashton Kutcher Site: Blahgirls.com Kutcher, who is also the founder of VoIP start-up Ooma, launched Blahgirls earlier this month at the TechCrunch50 conference in San Francisco. While mainly playing an animated video series, it's also a celebrity gossip blog that plans to make money through advertising and branding that shows up inside the videos.

Status: It's too early to tell but celebrity blogs can rise to prominence and then fall down with startling volatility. Much of Blahgirls' longevity will come down to the content, which in the case of the SouthPark-esqe animated show makes it fairly watchable, even to newcomers.

Celebrity: Andrew Shue Site: Cafemom.com Shue, better known as "Billy Campbell" from the 1990s TV series Melrose Place is also the co-founder of Cafemom.com, a social networking site for moms. The site launched in 2006 and offers a place for mothers to share tips and stories and to come together with other nearby moms.

Status: Cafemom is doing very well. It picked up a $5 million round of funding less than a year after launching. According to the site, it's getting more than 6 million unique visitors a month.

Celebrities: Baron Davis and Cash Warren Site: IBeatYou.com Davis, the pro basketball player, and Warren, a Hollywood producer, are co-founders of IBeatYou, which is a competition site. Users can create challenges and have others compete in order to earn points. Much like Worth1000, it's become a repository for quirky user creations like photo contests and one-upmanship.

Status: Alive, although it's too early to tell where it will end up. The site launched in late March and has since picked up just under $1 million in seed funding.

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Web leaders on economy: Keep calm and carry on

NEW YORK--The crowds at the Web 2.0 Expo seem to have one clear consensus on what they think of this week's Wall Street meltdown: things are bad, but it's no time to panic.

Of course, they're all pretty relieved that the tech industry can't be blamed for this economic meltdown.

"This is a very good time to start up a company," investor David Rose of the New York Angels firm said in a panel called Starting Up in Silicon Alley. "Despite the calamities that are going on outside, the world is not coming to an end."

The current financial crisis is less than a week old, after all, so the outcome is less than certain. Most of the conference crowd chose to be cautiously optimistic.

The Jacob Javits Convention Center is only a few blocks from Wall Street. Yet at the Web 2.0 Expo, it was mostly business as usual: marketing, monetization, branding, social advertising, and a Microsoft-sponsored party on Wednesday night where the centerpiece was an ice sculpture that dispensed vodka shots.

Standing at his company's booth on Thursday afternoon, one representative of a Web-based nonprofit organization shook his head with disapproval. "Not enough people are talking about it," he said. We all know what "it" is.

In fairness, it's a stretch to say everyone was twittering while Wall Street burned. The underlying attitude at the Web 2.0 Expo was one of sober acceptance, realizing that conducting business in 2008 is more difficult than it was in 2006.

I'm very worried," said Majid Abai, CEO of the community software start-up Pringo. "When the economy is down, investment in technology is down."

There's reason to be concerned: financial-services companies are often cutting-edge technology buyers, and the mess on Wall Street makes it unlikely that big brokerage houses (at least the ones still standing) will be spending on anything nonessential anytime soon.… Read more

The five companies that should be at TechCrunch50

I am sure there will be those who are excited to the point of valiumity at the vast array of startups vying for the attention of frightfully important people at TechCrunch50.

However, being the champion of the disgruntled, I would like to tell you about the five companies who should have been there, but were rejected due to reasons that might be best described as extremely bloody suspect.

1. Phishingphleet.com. Such a nifty idea, this. You register with Phishingphleet.com and they create truly realistic emails to persuade people you know to give you money. For example, the company … Read more

Microsoft adding to its Labs collection

As noted by ZDNet's Mary Jo Foley, Microsoft is launching yet another "Labs" effort.

This one is called Startup Labs, and according to a job posting Friday, it's part of Ray Ozzie's group. The posting didn't reveal much else, saying that the effort "will consist of multiple product development projects at varying stages of lifecycle."

Startup Labs joins other, seemingly similar projects, housed within specific business units, including Live Labs, adCenter Labs and Office Labs.

I've asked Microsoft for more info and will update if I learn more.

Intel invests in WiMax again amid doubts

Update on September 4 at 10:00 a.m. with correction about Aicent. See also statement clarifying Aicent's business strategy at bottom.

Intel's investment arm has put another chunk of change into WiMax, a wireless technology that has not lived up to its billing as the successor to Wi-Fi.

This time Intel Capital has sunk $3 million into Aicent with the hope of accelerating the wireless technology's adoption.

Aicent provides data network, messaging, and roaming solutions for GSM and CDMA mobile operators and operates one of the world's first and largest multimedia messaging exchanges, according to … Read more

Featured Freeware: RegToy

Power-packed beyond Registry tweaks, RegToy focuses on Registry edits to optimize your computer performance--but novices shouldn't expect much hand-holding. Though the tweak options are carefully labeled, users must know the consequences of altering them, as the few onscreen notes don't provide adequate assistance. You can restore the Registry settings to the Windows default, but that's an emergency final resort, as it will undo many changes made by you and other programs. RegToy also includes a poorly explained feature for saving and loading settings.

Other features include a file renamer, a file shredder, a start-up manager, an uninstall … Read more

Calif. Supreme Court finds noncompete clauses invalid

The California Supreme Court on Thursday upheld a long-standing state law ruling that employers can't restrict employees from working for a competitor or soliciting former clients when they leave the company.

That may be good news for California-based tech employees who want to take their skills to another company, or head a start-up that may directly compete with their former employer. "Noncompete" contracts, in place largely to protect an employer's intellectual property, began being used by companies during the dot-com boom to prevent losing valuable workers in a competitive technology labor market.

Microsoft and Google battled … Read more