Mark Suster of Los Angeles’ GRP Partners is known for his unique insights on the tech and digital media worlds, having famously had success on “both sides of the table” as a repeat entrepreneur turned investor over nearly two decades in the industry. And he hit headlines several times this past week, with his viewpoints on acqui-hires (he says they’re often very bad) and founders stepping down from the CEO role such as what happened with GRP portfolio startup Awe.sm (he says sometimes, it’s the best thing that can happen.)

So when we heard that Suster was in San Francisco for a couple of days, we asked him to come by TechCrunch TV to talk a bit more at length about all that’s been going on. And while he warned us that he was a bit tired due to a late night visiting with industry folks here in the Bay Area the evening before we met, he was just as engaging as ever, talking about the topics mentioned above as well as the latest hot stuff coming out of the Southern California tech scene.

Check it all out in the video embedded above.

• MARK SUSTER

Companies:
Launchpad LA, GRP Partners, Cendana Capital, GumGum, Ad.ly, Bedrock, App7, awe.sm, Dealmaker Media, RingRevenue, Qualys, Burstly, DonorsChoose.org, MyTime

Mark joined GRP Partners in 2007 after having worked with GRP for nearly 8 years as a two-time entrepreneur. Most recently Mark was Vice President, Product Management at Salesforce.com (NASDAQ: CRM) following its acquisition of Koral,where Mark was Founder and CEO. Prior to Koral, Mark was Founder and CEO of BuildOnline, the largest independent global content collaboration company focused on the engineering and construction sectors, which was acquired by SWORD Group (PARIS: SWP). Earlier in his career, Mark spent…

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Article source: http://techcrunch.com/2013/05/18/mark-suster-talks-founder-ceos-the-acqui-hire-frenzy-and-much-more-tctv/

Editor’s note: Ross Rubin is principal analyst at Reticle Research and blogs at Techspressive. Each column looks at crowdfunded products that have either met or missed their funding goals. Follow him on Twitter @rossrubin.

An ancient and once-sacred bond between author and audience, reading and writing have become but two more tasks along with a multitude of other things that we do on a host of digital devices — watcing videos, listening to music, playing games, and really anything except using Facebook Home. Still, there are some for whom the intimate act of interface between pen and paper retains more magic than all the electrons powering all the devices in the world have not been able to recreate. For them, a trio of European crowdfunding projects have trotted out a range of products to improve both endpoints of analog document creation.

Whacked: LazyPete. Arrgh! Listen up, ye scurvy dogs, as I tell ye the legend of Lazy Pete, a pirate so wrapped up in his romance novels that he didn’t see a great white shark leap from the ocean to leave him with just one hand. ‘Tis in Lazy Pete’s honor that Philip Musche surely named his one-handed book reading contraption, which essentially puts one of those book stands that keep pages open on a beefy handle. Despite showing off the reading aid in nearly enough colors to cover the Seven Seas, Musche failed to capture enough crowdfunding booty, and the campaign ended with only £533 of the desired £30,000 treasure.

Backed: Idae. What the GoPro is to most digital cameras, Idae is to most pocket journals, even the durable Field Notes. The waterproof, tear-resistant notebook is just the thing for when you need to make that critical addition to your grocery shopping list in the middle of your next scuba dive, and a perfect match for your Fisher Space Pen. And if you needed any more proof of just how extreme it is, it has a hole for a carabiner.

That said, fire will consume it along with the haiku you were inspired to write on the slopes. And if you’re not planning to keep your notes around indefinitely, the notebook can be recycled. Developed in Milan and shipped to backers last month for between $20 and $30 depending on cover color, the 32-page thought preserver cleared its $7,200 funding goal with a couple of hundred dollars to spare, but you’d expect that kind of nail-biting excitement from such a tough guy.

Backed: Meteor Grip. The pencil has been thin enough to serve as a benchmark against which to compare high-tech electronics. While it’s comfortable for many, at least for short periods, it can be difficult to grasp for some. Receiving inspiration when his partner Zoë, a tattoo artist, began suffering hand pain in December 2011, Pontefract, UK-based Jai Dickerson Pierce developed the Meteor Grip. Few details are provided about what material is used to create the grip. Rather, the key to its uniqueness is being available in both right and left-handed versions. As the campaign page employs double negatives to claim, “No other manufacturer produces an ergonomic hand grip that is not ambidextrous.”

That said, the campaign is not above covering a spectrum of uses, claiming that the product is useful as a novelty gift while also proclaiming that it is “changing the writing experience forever.” Not yet changed for kiddies, though, as a potential meteorite grip is for now on the drawing board. With a bit over three weeks left to go, the Meteor Grip has collected about a quarter of its humble £875 goal. Seven pounds will marry your love of astronomy with hatred of thin writing tools, and ten pounds can get one for you as well as the cramping tattoo artist in your life as soon as this month.

Article source: http://techcrunch.com/2013/05/18/backed-or-whacked-3/

As the Tumblr/Yahoo deal continues to be negotiated by press, and the world gears up for whatever is being announced Monday morning, Tumblr founder David Karp is probably having a very interesting weekend. It’s likely, in between multiple discussions with his board members and Marissa Mayer, that he’ll take a break, like a walk or something, to gather his thoughts.

On this walk (or jog or glass of wine at a bar), he will likely mull over two main outcomes. He could take Yahoo’s money, whether it be the $1.1 billion that the board is trying to approve giving him, or the more that he negotiates. Or, well, not.

If he took Yahoo’s money, he would join the Billion Dollar Exit Club — you know, the ranks of Kevin Systrom, Chad Hurley and Steven Chen from YouTube, the PayPal mafia, Tony Hseih, James Clark, Marc Andreessen, etc. He would be considered “successful” by the Valley’s ridiculous standards and everyone else’s, but not Zuckerberg successful, but definitely Michael Birch successful. Maybe he’d buy a nice house in Presidio Heights for when he has to be on the West Coast, and fill it with art and an apartment in Chelsea? [And maybe a vacation home for his family. And maybe a plane.]

He’d still oversee the Tumblr product at Yahoo, at least until his lockup expired, and maybe users would leave and maybe they wouldn’t … But the game would be over. The race would be in its cool-down period. Still, a pretty chill life overall. Especially in this economy. What would Kevin Systrom do?

Sell.

But with this, just like with the Instagram sale, comes a nagging, cloying afterthought: “What if Tumblr (or Instagram or _______) could have been the next Facebook?” And this nagging opportunity cost would grow even louder if Yahoo succeeded with Tumblr, finding a way to monetize its millions of eyeballs much like Google did with YouTube.

“Tumblr could have been a contender.”

It’s this thought that will lead to a “No” from Karp and his board if it gets nagging enough. And this thought is weighty — Zuck had it too when he was being courted by Yahoo, and we all know how that turned out. But what happens after the “No,” the fact that Karp will be challenged to build a real business on top of Tumblr’s scale, is daunting enough to turn that “No” once again into a “Yes.”

Can Tumblr turn the process of following other Tumblrs through your dashboard into a stream it can monetize with sponsored, story-style ads? Or find a way to cram ads into the notoriously independent, and risky, content?

Can Karp put on the big-boy pants, hire a Sheryl Sandberg character, and create a money-making machine? Because if he’s not sure, and he’s not ready for a long, hard, uphill fight, he should sell.

Look what happened to Groupon; still trading below its $6bn offer.

A billion dollars is a lot of money.

• TUMBLR

Tumblr is a re-envisioning of tumblelogging, a subset of blogging that uses quick, mixed-media posts. The service hopes to do for the tumblelog what services like LiveJournal and Blogger did for the blog. The difference is that its extreme simplicity will make luring users a far easier task than acquiring users for traditional weblogging. Anytime a user sees something interesting online, they can click a quick “Share on Tumblr” bookmarklet that then tumbles the snippet directly. The result is…

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Article source: http://techcrunch.com/2013/05/18/sic-transit-gloria-mundi/

It’s that time of the week for CrunchWeek, the show where a few of us writers chat up the most interesting stories from the past seven days.

Ryan Lawler, Drew Olanoff (clad in his Google Glass), and I discussed all things Google I/O, including Larry Page’s keynote, Google+’s new photo features, and the latest Google Glass apps and more. We also chatted about Square’s new hardware, Stand, which is a $299 card swiper and stand for iPad registers.

Tune in above for more!

Article source: http://techcrunch.com/2013/05/18/crunchweek-google-io-madness-and-squares-new-ipad-hardware-for-merchants/

The idea of a VC having its own news aggregator was a bit outlandish in 2007. But Y Combinator was in an unusual position in those days anyway. Startup incubators had been a highly visible part of the dot-com crash, and Silicon Valley was still skeptical of the concept nearly a decade later. So YC set out to be something different — a community of hackers building companies on their own terms.

Hacker News was initially built by YC co-founder Paul Graham as a demonstration of Arc, a new programming language he’d been working on. He quickly realized that it could help bring together the companies he was supporting and the rest of the folks who wanted in. With 1.6 million page views and 200,000 unique visitors on a given weekday, it’s now a key part of the venture firm’s success.

But the site quickly took off, as former Redditors flocked to it to talk about tech and startups (the site was then known as Startup News).

Having a big audience isn’t really the goal. In comparison, Hacker News’ inspiration and the first big YC exit, Reddit has seen as much as 4.4 million page views in a given day.

A Community For Ex-Redditors

As Graham explains, as the site started seeing traction immediately, he realized this wasn’t just a way to test Arc. He wanted to make Hacker News a place to recreate the way Reddit felt in the good old days, when most of its community was made up of hackers. As Reddit drew more traffic, the hacker focus of the site evolved. The community’s user base became diluted as it grew, and Hacker News was a new home for some of the early Reddit hackers.

Graham writes in February of 2007:

Reddit used to have a good concentration of startup-related links, but that was because so many of Reddit’s initial users were connected in some way to Y Combinator. Now that Reddit is so much more popular, the top links tend to be images, or videos, or political news.

Another goal of Hacker News, says Graham, was to be a place where founders could share ideas and communicate. In the spirit of Y Combinator’s own incubator, Hacker News was focused on being a community for entrepreneurs and founders in the tech community: a place where they could freely post and where Y Combinator could also get to know potential founders and leaders in the tech world.

“From the beginning we had a real community, and some of the core group of refugees from Reddit are still prominent on Hacker News today,” Graham explains. Part of what attracted many to Hacker News was its simplicity and voting system. The product’s UI, design and color scheme have remained relatively constant over the past six years.

Thomas Ptacek, one of the site’s first users, explains that he was a Slashdot user and then a Reddit user, and flocked to Hacker News (at the time Startup News) because it was more relevant to the technology and startup community. He found Hacker News to be a refreshing change from past forums where the quality of commenting was declining.

Here’s how Hacker News works: Users submit links to stories, and stories are ranked according to a voting system, similar to Reddit. The difference between Hacker News and Reddit, however, is the voting system. While you can vote stories up, you cannot vote stories down (but you can flag stories). According to Graham, 100 upvotes will get a story to the top of the front page of the site. You can only downvote a comment if you have enough “karma” on the site, which is another compelling element of Hacker News. The Karma factor is determined by the number of upvotes on a user’s submission and comments minus the number of downvotes.

In terms of the design, Graham says he wanted Hacker News to look like your list of processes in a terminal window. The look and feel of the site was aimed at hackers themselves who are familiar with tabular data.

Graham will occasionally add new features, some of which are on the backend of the site. For example, as comments get more deeply nested and heated in terms of exchange, the reply link takes longer to appear. There is a purposeful drag implemented on this, says Graham, because deeply nested discussions are rarely interesting.

Another subtle feature addition: a flame-war detector. Graham has been consistently deploying and updating proprietary software that determines whether there is a flame war, where people argue heatedly. When these flame wars take place (which Graham says can often get ugly and personal), the story in which the commenting is taking place is moved further down the page.

Graham has also created sophisticated spam-detection software, which was just updated with new code six months ago. With the update, Graham says that it’s rare for spam to last on the site for more than 10 minutes. If a user does spam the site or engages in personally vicious behaviors, they run the risk of being banned. But in an interesting twist, called “hellbanning,” the user may not actually know they are banned.

On the backend, Hacker News runs on one core, and Graham calls this a “remarkable feat of scaling.”

In terms of human moderation, Graham himself had been spending three to four hours per day simply moderating the site. And that’s in addition to all of his duties running Y Combinator. While a number of other YC alums have moderating abilities, Graham has been the main human element of the site. “It was becoming my life,” he says. Around six months ago, Graham brought on someone else, who he chose not to name, to moderate the site. He says the individual is affiliated with Y Combinator and is a “prudent and thoughtful guy,” and has been doing a great job ever since.

Hacker News has a strong affiliation with Y Combinator, as well. Graham explains that founders usually all create a Hacker News account when they apply, and that user name is the founder’s identity at Y Combinator. Hacker News also features a jobs page that shows any jobs available at Y Combinator companies. He adds that this jobs portal is very useful for Y Combinator, as the majority of the site’s audience is made up of programmers and engineers.

If you are a YC founder, your username will show up in orange to other YC founders to enable these entrepreneurs to recognize and meet each other.

Graham says that Hacker News gets a lot of complaints that it has a bias toward featuring stories about Y Combinator startups, but he says there is no such bias. Instead, the culture at the incubator is to use Hacker News, and with more than 1,000 YC alumni who have graduated from the incubator, many of these founders are still active on the news site and post links to their fellow founders’ launches and news.

“It was a small intellectual village and now it is a giant city.”

Growth has its downside. What keeps Graham up at night is worrying about the dilution of quality of the Hacker News. He explains that the site was community of insiders in the hacker world, and it has gradually been getting diluted. “That is what I spend all my time thinking about,” he says.

He worries that Hacker News will become what he calls “an old crumbling building.”

“The community has been in a perpetual but slow decline because the site is growing,” he says.

Ptacek agrees that the value of Hacker News has changed a bit. “I don’t get a community feel as much, whereas in the beginning it was a small group of people who all know each other,” he says. “It’s less likely now to see the same people from thread to thread.”

One of Graham’s biggest pain points is the “schoolyard quarrels” he finds on the site on a daily basis, and wishes “users would stop misbehaving.” He cites the example of users organizing voting rings to purposefully vote up stories, which caused Graham to develop additional software to detect this. He adds that more users are trolling under newly created accounts, and are deliberately starting flame wars on the site.

“I wish I could get people to stop posting comments that are stupid or mean,” he says. “It takes only one or two negative comments and a discussion turns into a flame war.”

Graham adds that he gets a lot of vitriol from users personally with accusations of bias or censoring. He clarifies that he, and the other human editor, rarely take links down unless they are dupes. Even with tabloid or gossip stories that surface, Graham will not take them down. Users with high karma points tend to flag these stories, he adds, and they can then be taken down.

“Hacker News makes me sad a lot,” says Graham. “I wish the community would behave the way they did when it was a little village.”

Users are noticing Graham’s frustrations. Ptacek says that he observes that Graham is careful not to tell people what to say or think, but it’s clear that he wants people to treat each other better and he gets more sad over time.

Could This Be A Business?

While Graham is open about not wanting to be the next Reddit, it’s hard to ignore the fact that Hacker News could be a business. Reddit is reportedly raising cash at a $400 million valuation. While Hacker News has a fraction of the traffic that Reddit does, the smaller site could actually have an impressive valuation as a business without any funding or employees.

Graham himself uses the site as his primary source of news. He’s even found Y Combinator companies through Hacker News. A user in the community posted a link to Watsi, a non-profit that allows people in dire need of medical care to raise money for procedures and health care. He noticed Watsi the second time it was posted on Hacker News and thought it was an amazing idea. He cold-called the founders and convinced them to be the first ever YC-backed nonprofit. And Graham recently took a first board seat at Watsi, his first board position ever.

But Graham is adamant that Hacker News is not a business and would not become a business. There are no ads on the site, and he has no interest in making money from ads. He admits that through the jobs page he indirectly makes money, as he is an investor in Y Combinator companies and will inevitably profit if the company’s hires help the business. Nor would he be interested in selling the site.

While it’s clear that Graham has his frustrations with the community, when he talks about the site’s defining moments, he sounds like he is speaking about his own child. One of his most distinct memories about the site is the day following Steve Jobs’ death, when every story on the front page was about the Apple founder.

“Users did it collectively as a tribute, and I found this a really remarkable way to show the power of a community. I thought this is really a living, breathing thing. It was like a bunch of birds flying through the sky forming themselves as an S.”

“There are really good reasons to engage with Hacker News,” says Ptacek. “There is no better place to stay engaged with the hacker community…At the end of day it is a message board. Having a place where you can reach and talk to groups of people is an important concept.”

As for the future of Hacker News, it’s clear that Graham is focused on maintaining quality and making sure that the community treats each other with respect and kindness. “I hope that most Hacker News readers know that I am doing this for their sake,” he says.

Article source: http://techcrunch.com/2013/05/18/the-evolution-of-hacker-news/

Editor’s note: Tadhg Kelly is a veteran game designer, creator of leading game design blog What Games Are and creative director of Jawfish Games. You can follow him on Twitter here.

One of the memories that sticks with me most about the launch of the Xbox 360 was a silly analogy about inhaling. I can’t remember who said it, but the general idea was that it had a concave body to convey breathing in, perhaps a precursor to exclaiming joy. It was as daft as it sounds, but for a while there the 360 was indeed a breath of fresh air.

Xbox 360 had a lot going for it, from online connectivity to a much simpler architecture that developers preferred over the PlayStation 3. In its first few years it maintained the position of being a very games-focused console. Xbox 360 was the home of indie games, for example, and digital distribution. It widely popularized the notion of achievements.

But three, maybe four, years ago Microsoft started to push bigger ideas. It left a lot of the gamer-ish stuff behind and redesigned the console’s dashboard toward a media focus. Over a series of updates, Xbox slowly went Metro, became about Netflix, avatars and Kinect. Most of these innovations didn’t stick so well, and the cost they incurred was significant. Xbox 360 went from being a clear proposition to a complex and all-over-the-place machine.

Many Kinects were sold, but few people actually used them for long. Many channels of TV content were brought into the fold, but finding room for them essentially killed its indie games market and lost a lot of credibility with that group. Ultimately, the successes of these divergences were generally mute. (18 billion hours of video sounds like a big deal until you break it down per unit over a year.)

This is the problem with long hardware cycles (Xbox 360 is 8 years old). Lacking annualized releases of better technology (for some reason the console industry still believes it has to carry on this way), the platform story grows old after a couple of years, leading to the urge to accessorize. Often in so doing it loses itself in the ensuing cruft, and then needs a big reset. All of which leads up to Tuesday’s news: the big event in Redmond to unveil the next Xbox. And boy does the company need it to go well.

Perception-wise, Microsoft has had a bad couple of years. Windows Phone may have won a number of plaudits for its looks, but nobody really went for it. Windows 8 sold a ton of copies, but most users sort of hate it. Surface had a glitzy launch, but people are still buying iPads. That leaves Xbox as Microsoft’s one remaining big consumer push. This one has to go right, or lots of talking heads will start to ask if there’s any market that Microsoft can get right any more.

The reason the company has had a lot of these issues, I think, is that it’s bad at listening. Microsoft consistently gets lost in grand visions, visions that only it can afford to develop, and produces super-complicated propositions that nobody loves. All those years spend trying to convince the public about Windows Live services. All that time spent trying to bring us around to using Bing. All that wasted effort trying to unify user interfaces with Metro (which at its heart is just a bit broken, as has been said over and over) and who really cares? Grand visions that lose the plot are Microsoft’s forte.

Yet, gaming folks are pretty excited about the next Xbox. Will it feature new horsepower? Guaranteed. Will it have Kinect baked into the box itself? Probably, but they don’t care. Will it require an Internet connection? Maybe, and they’re not sure what they think about that. Will it have lots of content partnerships? Undoubtedly. Will it copy Sony’s idea of a Share button on the joypad? Perhaps. Will there be a Halo game on it? You know it.

Will it actually be anything fundamentally different, though? It doesn’t sound like it, but that may not be a bad thing. There is often an assumption in tech blog circles that the audience wants permanent revolution, but often it doesn’t. Often it just wants the thing that it knows works, and if that thing gets that job right then it’s happy. The console gaming audience generally doesn’t want consoles to do anything fundamentally different. It tends to embrace features that are additive to its core desires, like online multiplayer or achievements, but all it wants are big TV games with joypads and mad graphics. Everything else is optional.

There are maybe 150 million console gamers around the world, judging by platform sales over the last few generations, and they love their expensive splashy videogames. They’ve never particularly cared for the frilly extras, like avatars, but that doesn’t stop them buying in. They like that their consoles have ESPN on them, but those are not crucial purchase decisions. They’re not convergence customers in the way that some PowerPoint deck in the depths of Redmond probably drew a few years ago to justify unified interfaces, but again they don’t mind as long as it’s not going to get in the way of playing Dishonored. For those people, the next Xbox is exciting because of the prospect of an even more-lavish Call of Duty and an even more-next-generation Skyrim. All they really want is a box that they believe can deliver that experience.

The risk for Microsoft is if it screws that message up.

When videogame platforms live too long, their platform holder often loses sight of its core competency. When the PlayStation 2 was over it had explored so many areas of the market that it was impossible to convey all of them in one coherent story. Sony tried, with the PlayStation 3, but the result was so confused that developers only really heard “it’s over-complicated” while consumers heard “it’s $599 for Ridge Racer.” This is a business built on razors-and-blades thinking.

A similar thing is happening to Nintendo with the Wii U. The Wii was a wonderfully simple device with a couple of very smart accessories (like the Wii Fit) and a raft of dumb ones. By the time the Wii U came around Nintendo seemed to have lost its sense of focus that drove Wii, instead releasing a very confusing machine. Now it’s paying the price.

The biggest risk for the next Xbox is if Microsoft departs so far from its core audience that the audience feels turned off. If the company comes out only talking about transmedia, television tie-ins, movies on demand, instant messaging, Internet Explorer, phone syncing, emailing from your couch, holographic avatars, Spotify subscriptions, Twitter integration, Facebook integration and party gaming then I fear for Xbox’s survival. The gamers will ask “Yes, but, where’s the games Steve?”

At its heart, the next Xbox needs to simply be about the games the games the games. Will Microsoft actually listen this time?

Article source: http://techcrunch.com/2013/05/18/what-games-are-cometh-the-hour-cometh-the-xbox/