HBO Go: Delightful, Albeit Inefficient, Exploration. And That's Fine By Me.

Below is a screenshot of HBO Go's iPad App. It's gorgeous, fun and highly dynamic. It represents the shift of paid content to mobile: HBO Go, ESPN Watch, Netflix, Hulu, etc. And it represents the visual opportunity presented by the touch-based device (smaller screen, different format).

And lastly, it shows the design similarities with e-commerce iPad apps like Gilt and eBay. Why do the apps look similar? Sure there could be some flattering mimicking... but more importantly: e-commerce and digital media hubs often struggle with findability within huge universes of product / content. Big visuals and touch-based exploration are a good way to conquer.

Specifically within the HBO Go app: it is interesting that 95% of the screen is dedicated to dynamic, visual tiles. Buried at the bottom is a persistent navigation footer: category, title, etc. In a world of funnels and tools to drive efficiency, HBO has made the clear choice to value exploration and engagement.

Twitter Search May Surprise You

Notice anything about the below screenshot of a Twitter search? Only two of the tweets actually contain the search query ("Peyton Hillis").... but all of the returned tweets are relevant and discuss "Peyton Hillis" on the linked landing page. This obviously means that: 1. Twitter (either directly or via partnership) is indexing landing pages and associating that content with the on-Twitter search query

2. Twitter search is far, far more valuable than it once was: a text match within 140 characters. And as 25% of all tweets include a link (thanks Quora), this is a big deal

3. I need to figure out if Peyton Hillis is starting today's game!

Siri, Why Aren't You Connecting?

Speed and computing power are the major iPhone 4S upgrade.But Siri is the real innovation and marketing 'sexiness'. And it should be: It's new. It's has big ambitions. It has bigger potential. And its more innovative than we give credit for.

... But what makes it so ambitious, potentially large and innovative: also makes it flawed (at least today). More often than not, my Siri experience looks a lot like the below screenshot. It is slow, unresponsive and often unable to connect to a network (even when on 3G and/or Wifi).

Daring Fireball explains why this happens and speculates why Apple may have intended it:

"Don’t forget that there’s a server/cloud-based backend that is required for Siri to function. I can’t help but suspect there’s some truth to this tweet from Mark Crump, speculating that Apple might be limiting Siri to the 4S simply to restrict the server load while the service is “beta”. There could be 100 million iOS 5 users by the end of this weekend; there will only be 1 or 2 million iPhone 4S users."

There are benefits to being cloud-based. Namely, Siri is still a beta-product and Apple can continuously roll-out updates and make service improvements without releasing iOS updates. And it makes the product more lightweight... but the downside, of course, is that the network can become over saturated and overweight. Network connections stall and users experience delays... or breaks:

Make Your Mobile App Ads Actionable!

More and more ad units promote mobile content and applications. And I get more and more frustrated as those units are not actionable.... it's a complicated task: 1. drive mobile activity from different web sources, including non-mobile traffic 2. promote mobile apps that are on different platforms... despite users coming from different sources / platforms

That experience often looks like this: a promotion by Gilt Groupe to download their mobile app(s):

That directs you to a landing page that is descriptive (and long-winded thanks to the numerous apps / platforms) but doesn't provide an easy way to download:

Again, I empathize with the almost necessarily clunky experience. But there must be more creative ways to solve.

For instance, here is a creative, effective solution by Groupon. Text a code and Groupon will determine your device's platform to deliver the right download experience. That isn't perfect, but the improved targeting eliminates a couple steps along the process.

I generally think this is the right approach: get users onto their mobile device so that you can provide more targeted / efficient next steps. You could take the Groupon example and make the ad more interactive such that users send mobile shortcodes from with the unit (via email address, etc).

Of course, the most direct path is to figure out promotional opportunities aimed specifically at users who are on mobile devices - within emails, on the mobile site, on other apps, etc. It's a markedly cleaner and more direct experience... and therefore conversions will be markedly better.

More examples of the clunky experience:

Groupon's IPO Slideshow

I encourage you to read through Groupon's roadshow presentation that TechCrunch posted today. I find the last two slides most interesting: the future of Groupon as a product and what it means for growth trajectory. From the chart, Groupon clearly is betting that new product (Groupon 2.0) will energize a decelerating growth plan (Groupon 1.0). Groupon 2.0 will focus on the delivering more product, more often and in more targeted ways... and, more importantly (?), driving consumer retention: - retention & rewards - merchant ROI (calculators for ROI & Earnings) - Places and Now! deals - new Deal Types - Merchant Mobile Apps

The Facebook Ticker: Take Advantage of It

This is how I have been finding news articles (Facebook + Washington Post Social Reader).And this is how I have been finding new music albums (Facebook + Spotify). The screenshot below is of a particular article that appeared in my Facebook Ticker twice within a 30 second span.... this isn't rare. In fact, it's common. And it is a demonstration of why you should be taking advantage of the Ticker... today, before others do. It is a huge opportunity to:

- increase awareness among a social graph - improve findability (articles, artists, time sensitive content, etc) - cluster popular content / topics within the core feed - drive traffic from the Ticker / Feed to Canvas Apps - take advantage of the first mover advantage that Washington Post and Spotify are seeing... get in the Ticker before it gets too crowded!

More reading:

8 Quick Thoughts on Facebook’s Big Week. September 25, 2011 – 7:37 am | 25 Reactions

Ahead of Facebook’s F8, Changes Galore Roll Out September 21, 2011 – 8:18 am | 5 Reactions

“So Far Facebook Has the Best Follower to Click Ratio”, Kevin Rose September 20, 2011 – 2:47 pm | 11 Reactions

Facebook Subscribe: Opportunity for Publishers & Online Voices September 15, 2011 – 7:57 am | 9 Reactions

Facebook's Bud Light Ad Unit: A Mini Fan Page

Almost exactly two years ago, Facebook introduced a series of new ad units around gifting, polling, liking, etc. Two years later, here is a view of the new Facebook Bud Light campaign - which is an expanded unit and includes several social functions.... think of it as a miniaturized fan page: the unit contains / enables all of the core functionality a page does. The single sponsored unit contains: - Your friends who like the the page - A link to the advertiser's page - Related posts - A link to the advertiser's album - A larger-than-normal photo from the album - Expandable likes and comments - A like button - Ability to comment in-line

From Seed to Series A: Understanding the "Cash Crunch" Discussion

Note: this post originally appeared on TechCrunch: Startups, Seed Funding, And Avoiding Empty Pockets (October 13, 2011). I have reposted it here.

Thanks in part to the Wall Street Journal’s “Web Startups Face Cash Crunch“, much has been made about the state of early stage investments and investing. While there is debate as to whether the article is accurate and/or overstated, let’s look at how we arrived here:

1. Pace of innovation. It is unlike anything we’ve seen before. This is happening because today is a better time to launch a company than ever before: technology, speed, cost, and capital all support the trend. The continued maturation of the internet, the cloud and the emergence of mobile platforms have changed everything involved in building product, targeting users and engaging customers. It has changed the fundamental operating and time constructs behind building compelling businesses.

As a result “entrepreneurship is in vogue”, using Fred Wilson’s words.

2. Capital. Over the past few years, it has flowed quickly into early stage technology – and it’s come from all directions:

Like entrepreneurship, angel investing is in vogue. Mark Suster summed it up: “Everyone Now is a F**king Angel. Look at Twitter Bios. Everybody is ‘my day job’ + ‘angel investor.’”

‘Super angel’ funds have also become more common. These funds can range from $10-50m and they represent a willingness and appetite to make larger investments: $100,000 – $500,000 or more. The fund size allows for larger investments… and the fund economics dictate it.

Meanwhile, large venture funds are more actively participating in seed deals. These deals vary in size and type: many participate on a convertible note and others are larger investments that lead and price the round. Some firms have dedicated seed investors and/or capital pools.

3. Cascades. As more money flows into the seed stage, it affects the investments.

Most obviously: more financings get done.

Less obviously: the financings look different.

There are more early stage investors and those investors want to put more money to work…and invariably the deal economics shift. Entrepreneurs have a desired dilution amount and investors have a desired ownership amount —those move in relative concert. For instance, those rates are the same for a $500,000 round on a $2.5m pre-money valuation as they are for a $1m raise on a $5m pre.

Furthermore, it affects the deal structure. The majority of today’s seed deals are done on convertible notes—in part because it is often a more efficient way to raise a round and in part because the investor makeup looks different: a slew of great investors perhaps, but no true lead(s). These ‘headless seed’ rounds—without a lead investor to help support and shepherd the raise process alongside the founding team—can make downstream Series A fundraising challenging for those other than the rocket ship startups.

4. Cash Crunch. The “cash crunch” for a company comes when it is time to raise the subsequent round.

There has been a surge of seed-funded companies, many financed at strong valuations and by a wide network of investors; consequently, the burden is on the company to differentiate itself, show meaningful progress and grow into a subsequent funding in-part influenced by the initial round (capital and valuation).

Great companies won’t struggle here, but the reality is that there is a limited number of firms who can write these size checks and a limited number of companies that can support those valuations. Hence the “crunch”.

So what does this mean? Some simple advice I’d offer early stage founders:

Stay lean before and after funding. Sounds obvious but early capital infusions should be raised and spent according to plan. Raise enough capital for 12-18 months. I meet too many seed companies who optimize against dilution and in turn plan to go to market in 6-9 months. This is frightening because it requires you to demonstrably grow within a very tight timeframe. And you will have to go to market well before the capital dries up. Optimize for near term success and long term company value—not for seed valuation. Sure, it sounds self-serving coming from an investor… But it’s true. Craft your seed round such that it puts you in the best position to grow, deliver on your vision, and raise a strong Series A. One of those factors is people. Be thoughtful about your investors. Think about the value each investor brings and what the larger investor makeup looks like. Can the group help you achieve those non-financial milestones? And if needed, can the group guide and help you if you feel “crunched”.

Two questions I always ask seed companies:

“What will success look like at the end of the seed phase?”

“When do you know it’s time to raise your A round?”

If you have a great handle on those questions, the rest will fall into place.

Why It's Easier to Start Up Today... Than Ever Before.

Forbes spotlighted LegalZoom earlier in the week: "Silicon Valley Sees Gold In Internet Legal Services" (a Polaris Ventures backed company). It got me thinking about the earliest days of beRecruited.com and what it took to get the company off the ground... before beginning the real work. And that obviously got me thinking about how much things have changed since I started the company in my dorm room in late 1999:

- I payed $1,000s to incorporate the company (and it took weeks). In fact, this was the single biggest expenditure of the first year. - Signed a 2 year merchant account to to accept credit cards (which included a physical credit card processor and "we accept Visa / Mastercard" decals....!) - Signed a similar hosting agreement for web service... which we outgrew quickly. - Worked hard convince a proper bank to support us (also expensive and out of date). - And received reams of paperwork and contracts and monthly account summaries.

Companies like LegalZoom and Amazon have totally changed that process.

Just think about Dogpatch Labs as an example: - founders walk in with nothing more than (usually) a Macbook Air. - They hook into our wifi (no such thing as a server room). - They run atop of Amazon web services. - They can accept payments almost immediately with services like PayPal, Square, or even set up recurring billing with Recurly (also a Polaris company) - They can announce their launch with companies like Sendgrid, Constant Contact, etc. - And they can look to Facebook, Twitter, etc to find pools of users.

I get asked all the time about why so many companies are starting these days. The most important factor is because it is easier to start today than ever before. And it is easier to attract users today than it has every been.

That doesn't mean it's easier to build a lasting business... but it does mean that you can start working on the business and product faster. And you'll get user feedback on product / market fit faster. And you'll succeed, fail and/or pivot faster.