Real Time Search Soon At Twitter

We just got word from Twitter CEO Jack Dorsey that the company will be launching a real time search feature “very soon.” Type in a keyword or keywords and any time a Twitter is created that includes those keywords, you’ll be notified via IM or SMS. They’ll add the the ability to access this via their API in the near future, Dorsey says.

The feature hasn’t launched yet, and we’re unsure on some of the details. For example, I’m not sure if you can limit results to just people you are tracking, or if you can get results via RSS or email instead of or in addition to SMS and IM. Either way, Twitter is clearly adding features and functionality at a quick pace, which is good to see. Hopefully, the worst of the downtime is behind us, too.

The fuzzy image to the right is a sample user interface that we received from Twitter.

Update: Dorsey says in the next couple of weeks they’ll allow historical search as well. Also, for now, searches can only be done on all Twitter users. Over time, users will be able to refine searches by friends, geography, time and/or language. For now, results are only returned via SMS and IM - RSS, email and the API will come later.

Parakey: Did Investors Get Left Out In The Cold?

When Facebook acquired Parakey in July, everyone assumed the stockholders of that fledgling startup would be popping the champagne bottles. No matter what the acquisition price (it wasn’t disclosed), if the sellers got Facebook stock in return for their Parakey shares, it would likely be worth a fortune down the road.

It turns out that wasn’t the case. The acquisition price, say two sources close to the deal, was paid in cash and was “less than $4 million,” providing investors with just a 2x return on their investment. Meanwhile, Parakey founders Blake Ross and Joe Hewitt were rewarded handsome stock options to join Facebook as employees in lieu of any cash compensation.

The primary investor in Parakey was Sequoia Capital, but a number of angel investors also participated in the sub-$2 million round that closed in December 2006. The investors were told about the acquisition in mid 2007 just prior to it closing. The terms of the deal were fully disclosed to them, including the number of shares that were being granted to Ross and Hewitt.

Some of those investors clearly weren’t happy with the fact that they were getting a 2x cash return while the founders received different, and likely far more lucrative compensation. Their preference would have been to receive Facebook shares or simply to have kept Parakey as an independent entity with a chance for a larger liquidity event down the road. But reputation matters in silicon valley and they made the decision not to disrupt the deal to avoid being labeled as difficult investors. Clearly, though, it left a bad taste in their mouth.

Even as investors are lining up to fund new Facebook applications, some others are saying they’re unlikely to invest in startups that are focused only on that popular social network/platform. The fact that Facebook is now involved in directly funding some of these application developers via fbFund only makes them more wary - the company may simply pick off the most talented developers and leave the companies, and any investors, behind.

It is often hard to muster up much sympathy for the venture capitalists that fund all of the startups popping up in silicon valley and elsewhere. But their money keeps the system running smoothly. If they don’t see a fair return based on the risk they are bearing (most startups fail outright and are a write off), that well oiled machine could come to a grinding halt.

In this case its not clear that investors were treated unfairly. They did get double their money back for a six month investment, after all. But the Parakey acquisition is an important data point that will be considered by others in the future. Just because Facebook comes knocking on your door doesn’t mean its going to be a big payday for everyone involved.

GarageSeek Rates Mechanics, But Yelp Will Kill This Category Too

It seems like every time you turn around there’s another site out there trying to help you rate this, that, or the other thing. There’s Rapleaf (people), StreetAdvisor (neighborhood), YourStreet (neighborhood), SodaRatings (soda), and the list goes on (we wrote about Urbanspoon yesterday). Now there’s a new one in private beta, GarageSeek, for rating mechanic’s garages in your area.

With GarageSeek users will be able to share their experiences with mechanics and rate them on several different metrics. When live, the site will provide a potentially very useful service, the ability to check reviews and avoid hiring a shoddy mechanic. However, while a complete database of real reviews is useful, a lot of review verticals don’t offer a real reason to contribute when they start and fragment reviews across multiple domain names users may not care to remember.

Yelp largely solved the chicken and egg problem that comes with user review services, even if they allegedly paid users for reviews to start. They raised over $16 million and generated traction on the service through having a system seeded with content, rewarding top users with over-the-top parties, and focusing on a service that a wide variety of people use frequently, restaurants. The other large people-driven review site, Insiderpages, had the advantage of $9 million in financing and starting back in 2004. Despite this, Insiderpages went through a slew of layoff and eventually sold off to CitySearch for $13 million.

Yelp is already in the auto repair category, and is poised to expose their audience to other review verticals as well. They’ve already moved into non-geographical service reviews such as media outlets. The one question these review verticals need to ask themselves is “Can niche vertical review sites survive up against one general review site, Yelp or otherwise”? My feeling is no.

* Sphere It
*
AddThis Social Bookmark Widget
* Print Posts

Todays Takeover Rumor Bought to You By Google And Sirius

The Motley Fool is running a story on a rumor that Google is considering a takeover offer for US Satellite Radio provider Sirius.

The merger between Sirius and XM has yet to be approved by Federal Regulators and hence Sirius would become a takeover target if the merger failed. Google is still seeking more inventory for its Adsense for Radio program; hence buying Sirius would provide it with its own radio network from which they could sell advertising.

It would be easy to dismiss the rumor as being fanciful, and many already have, however any serious Google watcher knows that Google’s ambitions seem to have very little or no bounds. The advantages of Google acquiring Sirius from an advertising view point are obvious, and Sirius also streams a portion of its content over the web as well; a service that would bring Google into internet radio broadcasting. However, there is one additional factor that isn’t being discussed much: Sirius’ Loral FS1300 satellites.

Sirius’ current three elliptical orbiting Loral FS1300 satellites are being primarily used for streaming the Sirius Radio service, but are planned to be used for streaming television as well. More importantly: they can push data two ways; the Loral FS1300 satellite being used by may other companies for that very purpose. In buying Sirius, Google would own 3 orbiting satellites (with one spare and one being built) which they could use to provide internet access or a related data service to the United States and Canada. Google + Sirius would equal Google being everywhere over the largest market in the world. Capacity may dictate a non-universal use for the satellites (such as providing an ISP service), but they could work for an in-car internet service or similar mobile function. Bringing highspeed, low cost internet access to the car has long been dreamed about, Google could be planning to do just that.

You Be The VC: Reality Programming Comes To Venture Capital

You Be The VC is a new competition from New York based Bang Ventures that brings an American Idol style popular voting format to seed capital raising. Wannabe startups put forward their startup ideas to an expert panel, and then the best of those ideas are presented to the public for voting. The top three companies win $15,000 each, Boston Office space and incubation services.

The model is not dissimilar to Y Combinator, TechStars and similar programs, with the obvious difference being a popular vote.

The arguments relating to growing voyeurism of modern society are heated ones; as some one who has read Ben Elton’s excellent take on the medium “Chart Throb” I’ve become very skeptical towards popularity contests, although I still find myself watching them from time to time. You Be The VC is a clever way of exposing Bang Ventures and the sponsors to a broader audience, but on the other hand I can’t help than think that it cheapens the whole Venture Capital profession, at least a little bit. I’ll probably revisit the site though to vote :-)

Entries close in December and entrants must either be a US Citizens or have US Residency. Winners must also take the offer of Boston accommodation and cannot opt to take the cash alone.