5 Advantages of Strong Investor Communication

Written By Bejata Todd on Thursday, March 28, 2013 | 5:40 PM

by Patrick Hull, Forbes Contributor
One of the biggest issues I see as an investor, and something I struggled with as a young entrepreneur, is how to communicate with my existing investors.

It’s easy to forget about your investors until you need more money, but that’s the absolute worst time to approach them again. Investors don’t want to feel like ATMs.

The best approach is like the old Chicago voting adage: do it early and often.


Talk to your investors early and often. Create a process to communicate informally once a month and more formally once a quarter.   Investor communications are best delivered in writing, either through mail or e-mail. The monthly report you send to investors should only be a page or two and can include P&L information. A more substantial quarterly report should include detailed financial information.

Phone calls and in person meetings can be beneficial too. Consider scheduling semi-annual meetings or brainstorming sessions with investors, either in person or via conference call. Investors love to give advice and pulling together a lot of brainpower never hurts.

Remember, you don’t have to do everything on your own.

Investors have a stake in your success and want to help. Their experience can provide great insight and they may have connections to help your business grow or provide additional resources. Keep investors in the loop and discuss your successes and challenges.
Consistent and honest investor communication has five key advantages:
  • Forces you to be accountable to yourself and to investors.
  • Encourages ongoing evaluation of your company and business model on a monthly and quarterly basis.
  • Strong investor relations make it more likely that an investor can identify potential areas of growth, partnerships, or new business angles.
  • A record of strong investor communication and a documented history of the company’s performance can help attract new investors.
  • Act like a big business and you will become a big business. Investor relations and reporting are important infrastructure components for larger companies and you should start developing this infrastructure early.
Most importantly, conversations or communications with investors need to be honest. We don’t want you sugarcoating the truth. If you talk to investors consistently, they’ll be more willing to help. Even in the tough times.

What do you think are some challenges and benefits to investor communication?
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The Best Investments For 2013: Where To Commit Your Money


It can be difficult to evaluate the current economic standing in the United States, as sensationalist reporting often creates a distorted view of the nation's finances. Despite this, it appears as though the U.S. economy is finally embarking on an upward curve, with property prices soaring by 7.4% and unemployment remaining at 7.8% throughout December 2012.

The signing of the fiscal cliff deal seems to have played a pivotal role in reinforcing the nation's tentative growth, which was reflected by a surge in investor confidence at the turn of the year. In total, investors in U.S.-based funds committed $7.53 billion into stock mutual funds, and this represented the highest volume of capital since 2001. All things considered, the fiscal portents for 2013 appear to be far brighter than they were just six months ago.

Investing in 2013: Where to Commit Your Capital
While the U.S. is experiencing a sustained growth period, however, the global economy remains mired in instability and uncertainty. Take the ongoing fiscal crisis in the eurozone, for example, which despite showing signs of stabilizing remains a viable threat to long-term economic prosperity. This volatility provides an interesting challenge to investors in 2013, who must navigate both the economic tumult and financial market intricacies if their portfolios are to deliver returns.

The first thing to remember is that this uncertainty can be positive for some investors, especially those looking to trade in equities and shares. As a basic principle, macroeconomic instability is known to trigger diminishing stock prices, which subsequently offer tremendous value as long-term investment vehicles. As long as the eurozone crisis continues to rage, investors with a long-term outlook can purchase plummeting, blue chip shares that will regain their value while the global economy recovers throughout 2013 and beyond.
Another key investment trend in 2013 involves the substantial growth of emerging Asian economies presenting new and exciting opportunities for profitability. Nations such as China and Japan provide a relevant case in point, as, despite mixed economic portents, their markets have benefited from record low valuations. In addition, both nations boast high rates of productivity and burgeoning stability, which again make them ideal for investors who are seeking long-term gains.

Investing in Precious Metal and Property: The Importance of Tangible Assets
Another investment option compatible with economic turbulence is gold, as its inherent value provides security during times of austerity. It is therefore expected to enjoy a prosperous 2013, on the back of a 12-year upward price trend that has seen its value soar from $250 to $1,700 per troy ounce. While analysts are predicting that the value of gold will peak during the next 12 months and then begin to fall in line with an improving global economy, this market currently presents a sound and profitable investment option.

While silver is still referred to as the poor man's gold within investment circles, there is a definite sense that this is set to change in 2013. Although critics often deride a material that has been used primarily as an industrial metal during the last decade, it is hard to ignore the fact that it has experienced a 600% price rise since 2003, while also beginning to earn a greater reputation as a precious metal and source of wealth. With some forecasts suggesting that the price per troy ounce could soar to $60 by the end of 2014, the next 12 months provide an ideal opportunity to claim a faction of this thriving market.

In terms of tangible assets, property may also provide a profitable investment opportunity in 2013. Housing markets throughout the world made a sustained recovery during the last six months of 2012, with the U.S. in particular benefiting from a 7.4% increase in property prices within this period. With this growth predicted to continue for the duration of 2013, those who are interested in investing in property may need to act quickly before they are priced out of the market and activity begins to dwindle.

The Bottom Line
This diversity of investment options and their potential reflects an improving economy, which has continued to build momentum during the last three financial quarters. With emerging economies continuing to develop alongside their more established contemporaries, there are now a wider range of markets and financial instruments that can deliver sizable, long-term returns. The key for individuals is to determine which suits them best, in terms of their disposable income levels, strategy and wider investment philosophy.

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Twitter Buys Company That Mines Chatter About TV

Written By Bejata Todd on Thursday, February 7, 2013 | 7:39 AM


Twitter


Twitter confirmed on Tuesday that it was acquiring Bluefin Labs, a company that analyzes online chatter about TV shows and companies and sells its findings.

Twitter is paying nearly $100 million for Bluefin, according to a person with direct knowledge of the sale, making it the Web site’s biggest acquisition to date. The person insisted on anonymity because the terms of the deal were not disclosed publicly.

The deal suggests a new line of business for Twitter, which is under pressure to increase its revenue. Bluefin calls itself a social TV analytics company, one of many that have cropped up as Facebook and Twitter have created an instantaneous stream of commentary that helps inform television producers and distributors.

Companies like CBS, which televised the Super Bowl on Sunday, pay Bluefin for information about what is being said about them online.

“We believe that Bluefin’s data science capabilities and social TV expertise will help us create innovative new ad products and consumer experiences in the exciting intersection of Twitter and TV,” the Twitter chief operating officer, Ali Rowghani, said in a blog post about the deal.

Bluefin’s backers have invested about $20 million in the company to date. The impending deal with Twitter was first reported on Monday afternoon by Business Insider.

Bluefin will remain a separate arm of Twitter. Bluefin’s office in Cambridge, Mass., will become an outpost for Twitter.

The acquisition comes six weeks after Twitter and Nielsen announced a partnership to provide a “Nielsen Twitter TV rating” for broadcasters and advertisers. Nielsen and one of its joint ventures, NM Incite, bought a smaller competitor of Bluefin’s, called SocialGuide, in November. The terms of that sale were not disclosed, but SocialGuide’s technology will be used in the Twitter TV rating service, expected to be available in the fall.
A version of this article appeared in print on 02/06/2013, on page B6 of the NewYork edition with the headline: Twitter Buys a Company That Analyzes TV Chatter.
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Dell in $24 Billion Deal to Go Private


Michael S. Dell, 47, has amassed a
fortune estimated at $16 billion
since starting the computer firm in his
dormitory room at the
 University of Texas in 1984
 For Dell, a $24.4 billion deal to take itself private is a bold move out of Wall Street’s harsh spotlight as it tries to remake itself in a world where personal computers are no longer the big business in technology.

Yet the buyout — which was announced on Tuesday and would be the biggest by far since the days of the recession — is a huge gamble. It will saddle Dell with $15 billion of new debt, and it does nothing to divert the forces reshaping the technology industry and undercutting the company’s business.

Fifteen years ago, Dell made enormous profits from selling customized PCs directly to customers. Six years ago, it was the world’s leading maker of personal computers. Today, it is in third place, behind Hewlett-Packard and Lenovo, and falling.

Dell’s share of an already contracting market for PCs slipped to just 10.7 percent last year, from 16.6 percent six years earlier.

No-name rivals from Taiwan and China grind earnings to razor-thin margins. Android smartphones and iPads, not Windows laptops and desktops, are the best-selling and most moneymaking devices.

And while a shift to cloud computing has increased demand for data centers — an opportunity for Dell to sell servers — big customers like Google and Facebook build their own equipment cheaply. The rise of cloud services has also prompted many companies to forgo buying additional machines, instead relying on rented time and applications running on faraway computer networks.

Dell’s share of the market for servers, slipped about one percentage point, to 22.2 percent of 9.5 million servers sold in 2011. The greater problem in this segment is the pressure on profit margins. Shaw Wu, an analyst with Sterne Agee, estimates operating margins on servers, once about 15 percent, are now “in the high single digits, compared with the mid-single digits for PCs.” It is likely that servers will soon have PC-like margins, he said.

Michael S. Dell is betting his stake in the company and some $700 million of his fortune that he can meet those challenges and turn around a business he started in 1984 in his dormitory room at the University of Texas.

“Dell’s transformation is well under way, but we recognize it will still take more time, investment and patience,” Mr. Dell wrote in a memo to employees on Tuesday. “I believe that we are better served with partners who will provide long-term support to help Dell innovate and accelerate the company’s transformation strategy.”

Mr. Dell’s investment means he will maintain control of the company if its shareholders approve the deal.

The private equity firm Silver Lake, one of the most prominent investors in technology companies, is
contributing about $1 billion in cash.

And Microsoft, seeking to shore up one of its most important business partners, has agreed to lend Dell $2 billion. Microsoft itself is under pressure, with longtime suppliers flirting with rivals to its Windows operating system.

“Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future,” the software giant said in a statement.

Despite taking on an additional $15 billion in debt, Mr. Dell and Silver Lake argue that the company will survive, thanks to the cash that the PC business still generates.

A. M. Sacconaghi, an analyst with Bernstein Research, estimated that the amount of debt Dell will pay is less than what it has spent in stock dividends and share repurchases. “This debt load is manageable,” he said, “as long as the cash flow from PCs holds up.”

People involved in the transaction said that the buyers had prepared for potential further declines in the PC business, but intend on at least maintaining the company’s position. Dell’s cash from operations has held steady for four of the last five years, coming in at $5.5 billion for the most recent fiscal year.

The size of the transaction evoked the frothy deal-making days before the financial crisis. Dell would be the biggest buyout since the Blackstone Group’s $26 billion takeover of Hilton Hotels in the summer of 2007.

Yet few expect a resurgence in giant leveraged buyouts. While the continued availability of cheap financing makes such deals possible, financiers caution that Dell represents a special case because of the founder’s big equity stake.

The deal is the biggest test yet for Mr. Dell, 47, who has a fortune estimated at $16 billion. After a three-year absence, he returned as chief executive of the company in 2007, vowing to restore his creation. His strategy has focused on moving into the business of data centers and corporate software services, marked by numerous acquisitions that have cost billions of dollars.

So far, that has yielded little. Dell’s shares have fallen 31 percent over the last five years, closing on Tuesday at $13.42 — below the buyout’s offer price of $13.65.
But that strategy will largely remain in place if the management buyout is completed. The company will cut its
PC offerings further and buy more companies involved in corporate computing for small and medium-size businesses, said Brian T. Gladden, Dell’s chief financial officer.

Though Mr. Dell has bemoaned his company’s dismal stock performance for years, his plan to take it private began in earnest only last year. The billionaire maintains a home in Hawaii near the residences of two prominent private equity executives, Egon Durban of Silver Lake and George R. Roberts of Kohlberg Kravis Roberts, and began floating the idea of a deal with them, people briefed on the matter said.

By August, Mr. Dell formally approached the board with a proposal to take the company private, prompting directors to form a special committee to study alternatives to a deal, these people said. One priority was keeping the process devoid of conflicts of interest to head off potential legal challenges, including the hiring of JPMorgan Chase to provide advice and Evercore Partners to solicit other suitors.

The committee considered ways to keep the company public, including borrowing money to buy back shares, but concluded that the management buyout was the most attractive option.

Mr. Dell had aligned himself with Silver Lake, which he let handle virtually all of the board negotiations, these people said. Mr. Durban used his close ties with Steven Ballmer, the chief executive of Microsoft and to whom he had sold the video chatting service Skype for $8.5 billion, to bring in Microsoft as a partner.

Microsoft was wary of getting involved, fearing fracturing relationships with other partners, according to a person briefed on its deliberations. The software company insisted on providing a loan instead of taking equity in the newly private Dell. Silver Lake also hired four banks to arrange the $15 billion in financing.

By the time word of the deal talks leaked last month, the two sides had the outline of a final proposal. But Dell’s special board committee, led by Alex J. Mandl, battled with the buyers on price until Monday night, pressing for the highest possible bid.

Hamstringing them was a lack of other potential buyers. The committee’s advisers had unsuccessfully approached both K.K.R. and TPG Capital, another big investment firm, hoping to flush out another offer.

And despite the talk last month, no strategic buyer emerged as a rival.
Secrecy was important. Mr. Dell was known in talks as “Mr. Denali” — a nickname he liked so much he referred to himself by it regularly — while the PC maker was “Osprey” and Silver Lake was “Salamander.”
Nick Wingfield and Andrew Ross Sorkin contributed reporting.
A version of this article appeared in print on 02/06/2013, on page B1 of the NewYork edition with the headline: Taking Dell Private Is the Biggest Challenge Yet for Its Founder.
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All aboard the crowdship enterprise

Written By Bejata Todd on Wednesday, January 30, 2013 | 4:50 PM

Robert Dobyns said there is space for up to 200 people on his crowdfunding cruise, which costs between $950 and $1,095

You don't often hear "crowdfunding" and "cruise ship" used together in a sentence. But Robert Dobyns is now in the process of planning what may be the first ever crowdfunding cruise, set to depart on a Carnival Cruise ship from Galveston, Texas, in September.

When I first heard about the voyage, I was skeptical—the whole point of crowdfunding, in which ventures raise money from groups of individuals, is that you can do it wherever, whenever—and usually via the Internet.

However, Dobyns, who is the Houston-based CEO of four different crowdfunding platforms, explained that the cruise is more of a gathering of crowdfunding experts. They include lawyers, angel investors, accountants and venture capitalists. There may be a few people who are interested in funding their new companies, such as new apps or film companies, on a crowdfunding platform, but many of the people who will be on board will come to learn more about the industry as a whole.

The four-night cruise will include both speaking engagements and activities at the cruise’s destination in Cozumel.

Dobyns scheduled the cruise for September because it is after the U.S. Securities and Exchange Commission is expected to make a ruling about the legality of equity-based crowdfunding—therefore, experts will be able to discuss it.

Overall, Dobyns hopes the cruise will attract many industry experts and will lead to more knowledge about the industry as a whole.

"There are a lot of events for crowdfunding, but I thought, 'You know what, I always enjoyed cruises'," Dobyns said. "This allows people to have a 'workation'."

This post originally appeared in the Houston Business Journal.
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Verizon CFO: Streaming likely not profitable until 2014

Redbox won't be abandoning its namesake rental kiosks anytime soon, as its streaming service likely won't be profitable until 2014.
by:

Redbox may be charging into the video-on-demand market, but don't expect profits right away. Verizon CFO Fran Shammo told analysts that he thinks that Redbox Instant by Verizon won't see profits until 2014.
Redbox Instant will enable subscribers to stream, rent discs and purchase digital movies. The service is expected to launch in the first quarter of this year.

Coinstar and Verizon have contributed resources getting the SVOD platform off the ground, Shammo said, per Home Media Magazine. At the same time, Verizon is investing in Verizon Content Services, a platform designed to give content owners an easier means of distributing programming to digital consumers on mobile devices, including smartphones, tablets, laptops and PCs.

“So when you look at Redbox, Hughes and VDMS, these will all start to contribute to top-line revenue in [FiOS] wireline for 2013, but again, probably not much in the profit area,” Shammo said, per the report.

“Because they are all startups and I would think that in 2014, these will really start to contribute to the overall profit.”

Analyst Eric Wold with B. Riley Caris in Los Angeles highlighted the strategic advantages Redbox Instant has over other SVOD services.

"Even with an initially smaller streaming content library than Netflix, we continue to believe that a significant number of consumers will be attracted to an $8 per month movie service that offers both unlimited streaming as well as same-day DVD access to new movies (something Netflix cannot offer)," Wold wrote on January 23rd. "While we could see some of those subscribers defect from Netflix (given the significant customer overlap between Netflix subscribers and Redbox DVD renters currently), this does not have to be the case in all situations as each SVOD service will be attractive to different consumers for different reasons (i.e. free shipping, greater content levels, cable bundling, etc.)."
Gina Hall is a Los Angeles-based writer and producer with more than 10 years experience in television, documentary and feature film production. She is a graduate of USC’s School of Cinematic Arts and blogs for the Huffington Post at huffingtonpost.com/gina-hall

http://www.bizjournals.com/losangeles/news/2013/01/23/redbox-likely-not-profitable-til-2014.html
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10 Legendary Business Cards of Famous People

Written By Bejata Todd on Monday, January 28, 2013 | 3:50 PM

A business card is an integral part of every businessman. Mark Zuckerberg, Larry Page and Steve Jobs have printed numerous business cards for business partners, investors and customers. On the way to get rich, these business attributes could be lost. But fortunately, their early age visiting cards have survived and now everyone can see legendary design of the billionaire business cards.

Maybe it’s your time to grasp an idea of a lucky business card? View 10 business cards that belong to most wealthy entrepreneurs and public leaders and make free custom visiting cards like these for you today!

Mark Zuckerberg Business Card

Mark Zuckerberg Business Card
Yes, that’s a famous business card of Facebook founder “I’m CEO, bitch”. Laconic and clear.

Steve Jobs Business Card

Steve Jobs Business Card
Steve Jobs old business card is like iPhone-iPad design: a plain black and white palette. It’s easy to read.

Larry Page Business Card

Larry Page Business Card
Before Eric Schmidt, Larry Page worked as Google CEO. Here’s a copy of his colorful visiting card.

Barack Obama Business Card

Barack Obama Business Card
It’s a Barack Obama business card when he was a senator.

Eric Schmidt Business Card

Eric Schmidt Business Card
Correct spelling is a big problem even for Google CEO.

Steve Wozniak Business Card

Steve Wozniak Business Card
A stylish custom vising card of Apple co-founder.

Donald Trump Business Card

Donald Trump Business Card
Mr. Trump has added his signature to his visiting card.

Jerry Yang Business Card

Jerry Yang Business Card
This guy does not sell boards – it’s Yahoo CEO business card.

Devon Spurgeon Business Card

Devon Spurgeon Business Card
Clear final statement of Warren Buffett employee. Now you know who is the boss.
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Why did Eric Schmidt go to North Korea?

Written By Bejata Todd on Monday, January 21, 2013 | 5:20 PM




Google Eric Schmidt North Korea China

Chairman and former CEO of Google Eric Schmidt recently travelled to North Korea on a fact-finding mission of sorts. Schmidt wanted to ascertain how North Korea utilizes the Internet and see for himself just how restrictive it is. The information he shared was startling, but interesting. A country as large and powerful as North Korea is far behind many of its peers, and that could be troubling.

But why go to a communist country? Travel to North Korea is difficult at best, so why take the chance? We also have to wonder why Google cares about how North Korea uses the Internet. Sure, the company is a tech giant and search magnate, but North Korea represents such a small fraction of potential world online traffic. As much as we can learn from what Schmidt reported back, we can also infer that North Korea is indicative of a larger problem for Google.

Why North Korea?

As much as I’d love to leave politics out of this discussion, it’s not possible to do so with a communist nation in reference to openly sharing information. Although called the “Democratic People’s Republic of North Korea,” or DPRK, it’s anything but democratic. Communism is restrictive by nature, and that includes information. With the passing of Kim Jong Il and the rise to power of his son Kim Jong Un, a few problems were exposed. North Korea is a severely depressed nation, and its people face a variety of serious problems daily. While using the Internet for information is probably a distant afterthought for many citizens, it’s a concern for a company like Google. In North Korea, you have a very good example of a larger problem for Google.

It’s important to mention that Schmidt didn’t travel alone. Former Governor of New Mexico Bill Richardson was his guide and he travelled in a delegation alongside eight other members.

A former UN ambassador, Richardson was in North Korea on a humanitarian mission in response to North Korea’s launching of long range missiles late last year. The White House referred to that trip as “ unsuccessful,” unfortunately. It’s also worth note that Richardson no longer enjoys any official political capacity, so this was a private trip.
159050487-645x250

A rock star

Richardson described Schmidt’s reception as that of a “rock star”, which sheds a little light on just how important this issue of an open Internet really is. Sure it’s just the Internet, but it represents so much more than that. Right now in North Korea, the Internet is only available to a select few: the government, the military and universities. That’s representative of an intranet, which is basically what its technology is. Schmidt notes that there is a “supervised” Internet, which means “that people were not able to use the Internet without someone else watching them”.
Schmidt also found that, despite the walled-off nature of technology in North Korea, it would be very simple for the country to “turn the Internet on”, as he puts it. From his Google+ page, Schmidt writes:
There is a 3G network that is a joint venture with an Egyptian company called Orascom. It is a 2100 Megahertz SMS-based technology network, that does not, for example, allow users to have a data connection and use smart phones. It would be very easy for them to turn the Internet on for this 3G network. Estimates are that are about a million and a half phones in the DPRK with some growth planned in the near future.
schmidt_north_korea_large_verge_medium_landscape

Dollars and sense

For Google, North Korea represents a roadblock for something that is very important to the company: the free and open Internet. Whether or not you’re familiar with the recent issues surrounding this cause, it’s worth understanding that Google is fervently behind the issue. Mostly because it’s the right thing to, but also because its business model is based on it. We visit Google.com, then enter what we want to know about in the search bar. The results pop up and so do some unobtrusively placed ads. We click on the ads, and Google makes money.

In entering a new frontier of search and services, Google is committed to being a mobile-conscious company.

The desktop will always be there, but the world is increasingly mobile. A system like that of North Korea, which operates in such a limited space, concerns Google. How will it drive revenue from a restricted
system?

More importantly, will this catch on anywhere else?

With such a large number of North Koreans unable to access the Internet freely, there is little reason to have devices to access it. An open flow of information is the linchpin to just about everything Google does from selling devices to creating services. If I can’t access the Internet, what good is a device that has such features?

Was the visit worth it?

Educationally, yes. Schmidt learned quite a bit, it seems, about how North Korea operates in regard to treatment of technology. Obviously driving revenue is a concern for Google, but the issue is deeper that that.

This is ultimately about the transfer and open sharing of information. Eric Schmidt may represent the largest search (and arguably the largest tech) company on earth, but I’ll not believe his trip was strictly business. To really understand the situation, it was important for him to see first-hand just what was going on. Schmidt himself said the North Koreans “listened and asked questions,” so they are at least open to being open. The focus is a free and open Internet, and North Korea simply doesn’t have it right now.

Why should we care?

In discussing this issue, we’re remiss to place too much emphasis on the sensational facts: North Korea and communism. They are worth consideration, because in essence communism is the heart of the matter. While I don’t subscribe to a communist mindset, I respect those that do and their belief in that system. For free transfer of information, however, old-line communism simply doesn’t work.

North Korea, like just about any nation on earth, is filled with very bright people doing important work. The open transfer of information can only help the world community. Being able to openly discuss things such as medical research will drive both sides of the equation. Perhaps there is a botanist in North Korea that can analyze cancer research from Scotland, then identify some rare plant to help reduce its spread. While that may be a made-for-TV scenario, it’s also worth exploring.

The definition of “www” is World Wide Web. Without a free and open Internet for all, that simply isn’t true. North Korea is indicative of a problem, sure, but not the problem. North Korea confounds us because it’s a fairly advanced nation that has left an important factor behind: information, We may openly question why it does this, as it seems obtuse, but there is something we should all keep in mind when considering why North Korea resists the sharing of information.

Communism

I live in a democratic nation, as most people do. In the world outside of North Korea, quite a bit of anti-communist opinion and rhetoric is shared. We must respect that North Korea is a communist country, and for them, reducing the flow of anti-communist talk is impossible. This is why it eliminates the open flow of information altogether. We may or may not agree on its politics, but let’s try to appreciate and respect its belief system.

An open Internet could create panic in North Korea, and that’s not something it needs right now. North Korea is a country faced with widespread famine, poverty, among other various economical and human rights issues. The last thing it can really afford is dissension amongst citizens. Communism has the capacity to change, especially with a shift in power to Kim Jong Un, so we can hope for the people of North Korea that a renaissance of sorts is on the horizon.

Controlling the chaos

Change is never easy. To achieve the goal of a truly free and open Internet, some type of change must occur.

North Korea, for its own reasons we only partly understand, chooses to limit or exclude information to its people. In Eric Schmidt visiting the country, it’s fair to say that excluding or otherwise leaving North Korea behind is in nobody’s best interest. Such a rich culture with a lot of potential for positive change should be welcome to join the fight for the open exchange of information, and they are.

A free and open Internet should be for everyone who wants it, not everyone who is allowed to access it. In considering an open exchange of information, North Korea will have to ponder a new way of communism as well. If the current political environment doesn’t lend itself to freely sharing information, what will? Can North Korea adopt a communist country in which information is available at-will? I believe so. Belief is at the core of every great concept, and North Korea simply has to believe it can forge a new path.
Eric Schmidt

The remains of the day

The Chairman and former CEO of one of the largest companies ever visiting a communist country in this day and age is monumental. He didn’t stay long, or necessarily achieve anything, but the lessons were invaluable.

A body of information that shows opportunity is there, but not being realized. Google’s ever-present mantra is “don’t be evil,” so we can safely assume this visit had only the purest of aspirations. Google has never hidden its intentions in generating revenue, nor does it make it the driving force of its dealings. Doing the right thing will bring the money eventually, and it understands that.

While the trip was important and poignant, it could have been for naught. Schmidt’s daughter and travelling companion, Sophie, has a Google Sites blog detailing the trip. It sheds a different light on the trip than Eric’s carefully measured feedback, and suggests at a dog-and-pony show orchestrated by North Korea. If what she saw was truly staged rather than carefully measured presentation, it doesn’t bode well for the people of

North Korea in having access to information any time soon.
The concept of a free and open Internet is a strict juxtaposition to the core concepts of communism. Like any concept, idea, or belief, communism is adaptable to change. The world has evolved in a way few people thought it could over the past decade or so. We have more knowledge at our fingertips than we ever thought we would, and a truly global community. If North Korea would include itself as we all hope it will, it would be a beacon for change and a signal of hope. Eric Schmidt opened the door, so let’s hope North Korea sees fit to come outside. The playground is open.\

by  
http://www.androidauthority.com/why-eric-schmidt-north-korea-148851/
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Seed and Later Investments for Startups are Booming

C. Richard Kramlich, Chairman & Co-Founder photo via NEA
by Martin Zwilling, Forbes

The number of startups getting seed funding in 2012 jumped by 65% over the previous year to a total of 1749, according to a recent report by CB Insights. “Seed investments” are early stage financings (typically less than $1.5 million) made by either Angels or venture capitalists, or both. This is great evidence that the recession drag on funding new startups is behind us.

In another report more specifically on Venture Capital Activity for 2012, CB Insights noted relatively flat but still healthy funding levels, compared to the previous year (down in total dollars by 7.5%, but up in total deals by 7%). Thus the venture capital industry isn’t dead yet, despite all the rumors, and more startups are getting money, even at Series A and later levels.

Of course, there are still qualms, cautions, and risks highlighted by these reports that every entrepreneur needs to understand, to optimize their own chances of getting the funding they want:
  • A “Series A Crunch” could orphan 1000+ startups. The explosion in seed funding, without a corresponding explosion in investors willing to lead the next round (Series A), may mean that you can’t get a second round and will be “orphaned” or die. The pundits are now debating the impact and potential alternatives for startups. Stay alert.
  • Seeded companies will take longer to raise a next round. As soon as you get seed money, it’s time to start working on the next round. The current average is slightly more than 13 months to raise follow-on financing. As the leverage increasingly looks like it is shifting towards investors, the time required may go up, so plan ahead.
  • Only 40% of seeded companies get follow-on financing. This is nothing new. The death of startups and the loss of investment dollars is part of the process of separating the best companies and investors from the rest. To prepare yourself, make sure you have enough runway, be prepared to make drastic cuts, and have a Plan B for organic growth.
  • The Internet sector is tops for seed deals. Not surprisingly, the Internet sector is still the primary destination for seed investing. Interestingly, follow-on financing rates to the computer hardware and services sector is the highest of all tech sectors. Healthcare is not far behind.
  • California and NY dominate for number of seed deals. California is the clear #1 for seed investment activity followed by strong #2 New York. Massachusetts is a distant #3 but in terms of the rate of follow-on financing, Massachusetts has the highest rate. Texas is still struggling to hold the next position.
Make no mistake, even with these caveats, 2012 has been a banner year for startup funding, and the cost of entry has never been lower. Investment amounts and deals were near 10-year highs, and all indications are that this year will be just as good. Of course, it always helps to be in the right business sector, in the right part of the country, and know the best players:
  • Top business sectors for venture capital. The Internet sector continues to lead the pack (information technology and software), followed by Healthcare (medical devices and equipment), then Mobile (CRM) & Telecom (wireless). Green Tech is still in a slump, with renewables leading the way. Yet these comprise much fertile territory for entrepreneurs.
  • Top five states for venture capital. California (Silicon Valley), Massachusetts (Boston), NY, Washington, and Texas held as the top 5 states for venture capital in 2012, but overall, 38 states got in on the action. As is typical, funding and deals remain concentrated in venture’s big markets. Be there, even if you have to move.
  • Most active venture capital firm. New Enterprise Associates, in Silicon Valley, leads all VCs as most active in 2012, putting some of its $2.5 billion fund to work. By activity, the other four of the top five firms were Kleiner Perkins, Google Ventures, Andreessen Horowitz and First Round Capital. It helps if you know someone in one of these.
Of course, every entrepreneur needs to remember that even if you are in the right sector and the right location, there is no entitlement to venture funding, much less success. Most sources agree that less than 1 out of 100 who apply get the funding they want. Of those who get funded, only about 1 in 10 succeed. But who amongst us doesn’t love a challenge? Now is the time.

original source: http://www.forbes.com/sites/martinzwilling/2013/01/18/seed-and-later-investments-for-startups-are-booming/
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Is China Running Out Of Workers?

by Gordon G. Chang, @GordonGChang

On Friday, Beijing’s National Bureau of Statistics announced that China’s “working age” population—the 15 to 59 segment—totaled 937.27 million last year.  That number, as large as it is, represents a decline of 3.45 million from 2011.  Moreover, the workforce in 2012 comprised 69.2% of the population, 0.6% less than in 2011.

“In 2012 for the first time we saw a drop in the population of people of working age,” said Ma Jiantang, the NBS chief.  “We should pay great attention to this.”

We certainly should.  Cai Fang, the widely followed Chinese demographer, thinks the workforce actually peaked in 2010, and he is probably correct.  Yet whoever is right, the NBS announcement highlights the acceleration of Chinese population changes.  Beijing’s official demographers were saying, as recently as 2009, that the workforce would continue growing until 2016.

“There are different opinions on whether this means that the demographic dividend that has driven growth in China for many years is now coming to an end,” said Mr. Ma, trying to put the best face on the news. 

Actually, it’s hard to see how the so-called dividend, an extraordinary bulge in the working population, can continue, especially because he also predicted that the number of workers in China will get smaller each and every year until about 2030.

Chinese technocrats have more than just a shrinking workforce to worry about.  As late as 2008, the U.N.’s figures, Beijing’s numbers with minor adjustments, showed China’s total population falling off only after 2030.  That date is, well, so out-of-date.  Now, senior Communist Party officials, like Liu Mingkang, are talking about 2020, which means the peak will undoubtedly occur before then.

There are both good and bad—mostly bad—effects of a slowing population on a nation’s economy, but the point observers are missing is that China’s trends are occurring faster than almost all demographers predicted just a few years ago.  The pace of change, therefore, means economic adjustments could very well be more painful than most analysts now believe.

Perhaps the most pernicious economic effect of a declining population will be on urbanization.  The decades-old migration from farm to city is one of China’s “four new modernizations,” announced in mid-November by Li Keqiang.  The man slated to become the next premier is placing a big bet that this trend will drive growth for the next two decades.  After all, the Chinese government in 2011 announced it will be building 20 cities a year in each of the next 20 years.

Figures from the National Bureau of Statistics indicate that the government’s city-building plan is feasible.  Last year, according to the agency, China’s urban population increased 21.03 million, hitting 711.82 million, or 52.57% of the country’s population.  That was up 1.3 percentage points from 2011.

Even if these figures are correct—and there is growing doubt that NBS’s urbanization numbers are accurate—it’s not clear where Beijing officials are going to get the people to continue to power the farm-to-city process.  Not only are the major demographic trends working against them, but there is also a growing concern that rural areas have already been emptied out.

Some Chinese scholars believe the supply of workers in the under-35 cohort—the so-called “golden age group”—has already been exhausted in rural areas.  Others disagree, but even those who think there is still a pool of workers on the farm acknowledge that not many of them want to move to the cities, where conditions can be bad and pay low.  And in the middle-aged portion of the rural workforce, again, not many more of them want to leave home.

I know about these trends first-hand.  In the village where my father’s family comes from—near the Yangtze River in coastal Jiangsu province—you can see many children and old women, but not many adults of working age.  Those who have left for nearby Shanghai and the other great cities of China have already done so.  My hometown suggests that urbanization is a spent force.

Beijing can build urban areas, but the country already has its famous “ghost cities.”  Urbanization is not sustainable unless there are people willing to move to the new cities—and more important—to work in them.  Just because urbanization has contributed to China’s growth in the past does not necessarily mean it will continue at the same pace during the next two decades.  Urbanization will undoubtedly continue, but it can no longer drive the Chinese economy like it has for the last 30 years.

Demography may not be destiny, but it will create high barriers for Chinese growth.  If Beijing’s leaders are to succeed, they will have to do so in spite of population trends, not because of them.

Unfortunately, they are not even trying to reverse China’s adverse demographic trajectory.  Although just about everyone believes that Beijing should drop the one-child policy, which has depressed population growth since 1979, there have been no substantial moves to do so.  Yes, officials talk about liberalization of birth restrictions, but they never get around to implementing needed change.  Yet even if they repealed the policy today, the beneficial economic effect would not be felt for years.

China, which has had one of the best demographic profiles of any nation, will soon have one of the worst.  The economic effect of population decline will, in all probability, be severe, long-lasting, and evident soon.

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10 Best Companies to Work For in 2013

Written By Bejata Todd on Friday, January 18, 2013 | 9:19 AM

Google
 
Google
 
Rank: 1
Previous rank: 1
2011 revenue ($ millions): $37,905
What makes it so great?
The Internet juggernaut takes the Best Companies crown for the fourth time, and not just for the 100,000 hours of subsidized massages it doled out in 2012. New this year are three wellness centers and a seven-acre sports complex, which includes a roller hockey rink; courts for basketball, bocce, and shuffle ball; and horseshoe pits.

Headquarters:
Mountain View, CA
Website: www.google.com
SAS
 
SAS
 
Rank: 2
Previous rank: 3
2011 revenue ($ millions): $2,725
What makes it so great?
With two artists in residence on staff, the perk-friendly, privately held data analytics firm takes creativity seriously. One employee cites SAS's "creative anarchy" as conducive to innovation. New this year: an organic farm for SAS's four cafeterias.

Headquarters:
Cary, NC
Website: www.sas.com

CHG Healthcare Services
CHG Healthcare Services
 
Rank: 3
Previous rank: 9
2011 revenue ($ millions): $620

What makes it so great?
Employees of this medical staffing firm compete in talent shows, trivia contests, and activities like a Dress As Your Favorite President competition. Extra paid time off is given to sales teams that meet their goals. New this year: two on-site health centers.
Headquarters:
Salt Lake City, UT
Website: www.chghealthcare.com

The Boston Consulting Group
The Boston Consulting Group 
Rank: 4
Previous rank: 2
2011 revenue ($ millions): $3,550
What makes it so great?
The elite management consulting firm maintains work-life balance by issuing a "red zone report" to flag when individuals are working too many long weeks. New consultants can delay their start date by six months and receive $10,000 to volunteer at a nonprofit.

Headquarters:
Boston, MA
Website: www.bcg.com

Wegmans Food Markets
Wegmans Food Markets
 
Rank: 5
Previous rank: 4
2011 revenue ($ millions): $6,335
What makes it so great?
Turnover is an exceptionally low 3.6% at the Northeastern grocery chain, which lets employees reward one another with gift cards for good service. Many workers like it there so much they bring in relatives—one in five employees are related.

Headquarters:
Rochester, NY
Website: www.wegmans.com

NetAppNetApp
 
Rank: 6
Previous rank: 6
2011 revenue ($ millions): $6,233
What makes it so great?
Employees at the data storage company often get a chance to receive special recognition. Vice chairman Tom Mendoza asks managers to notify him when they "catch someone doing something right," and then calls 10 to 20 employees every day to thank them.

Hilcorp Energy CompanyHeadquarters:
Sunnyvale, CA
Website: www.netapp.com

Hilcorp Energy Company
 
Rank: 7
Previous rank: N.A.
2011 revenue ($ millions): N.A.
What makes it so great?
This oil and gas driller, a newcomer to the list, promised staff in 2010 that if the company doubles its production rate and reserves by 2015, every employee will get a check for $100,000. An earlier, met goal rewarded 400 employees with $50,000 toward a new car.

Headquarters:
Houston, TX
Website: www.hilcorp.com

Edward Jones
 
Rank: 8
Previous rank: 5
2011 revenue ($ millions): $4,577
Edward Jones

What makes it so great?
The privately held securities firm maintains some 11,000 small offices and a close-knit culture with regular regional gatherings for ice skating, fishing tournaments, and more. Forty-four percent of new hires come from employee referrals.

Headquarters:
St. Louis, MO
Website: www.edwardjones.com

Ultimate Software
 
Ultimate Software
Rank: 9
Previous rank: 25
2011 revenue ($ millions): $269
What makes it so great?
The developer of people-management software—customers include Google, Quicken Loans, and the New York Yankees—covers 100% of health care premiums for employees and dependents and treats workers to a free vacation every two years.

Headquarters:
Weston, FL
Website: www.ultimatesoftware.com/

Camden Property Trust
 
 
Rank: 10
Previous rank: 7
2011 revenue ($ millions): $655

Camden Property TrustWhat makes it so great?
Good times are built into the business at apartment-manager Camden, whose founders are known for practical jokes and impersonations. Other benefits include discounted rentals for employees and a 401(k) that matches at least 50% for up to 7% of pay.

Headquarters:
Houston, TX
Website: www.camdenliving.com



Original source: cnnmoney
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Richard Branson on Business Ideas in the Growing Health-and-Wellness Industry

Written By Bejata Todd on Thursday, January 17, 2013 | 1:03 PM

Richard Branson on Business Ideas in the Growing Health-and-Wellness Industry
image credit: Virgin



What’s your resolution for 2013? The New Year is a great time to kick-start a new regime and set new objectives for yourself. Many of the resolutions people make this year will be about losing weight, getting fit or living a healthier lifestyle -- and interestingly, health and wellness is one of the business sectors that I think is going through major change and offers great opportunities for entrepreneurs.

Though many developed economies are struggling through some tough times, the wellness sector has proved resilient, and some fast-moving businesses are finding success. This is partly because more people are becoming aware of the wider benefits of getting fit and partly because technology is revolutionizing the way they can track, record and motivate themselves. In much the same way as the iPod and iPhone transformed the way people enjoy music, fitness devices such as the Nike+ FuelBand (which my wife, Joan, and daughter Holly both sport regularly) and sophisticated apps for running and swimming have helped people to take their training to a new level.

These devices also have the potential to transform established businesses in the sector. At Virgin Active, our family-friendly line of health clubs, new devices are helping us to attract new clients. On a recent visit to a club in Britain, I was struck by the range of technologies available to members, from body scanners to assess your body fat content to exercise machines with built-in heart rate monitors. But the gadget that really caught my eye was Swimtag, a British-designed training aid that tracks your progress in the pool. (As I have mentioned before, I try to swim most mornings that I am at home on Necker Island, so this piqued my interest.)

Aimed at all levels of swimmers, Swimtag records the number of lengths, split times, stroke rate and stroke type, allowing you to set personal challenges, share results with friends and compete online. This is just the sort of device that can create a whole new market where none was before, and at the same time encourage more people to swim and stay interested in their fitness levels.

I like coming up with ideas for this sector both because it’s fun and because it offers opportunities for businesses to make a difference in people’s lives. Some of the best ways we can help our communities is by applying innovative and entrepreneurial approaches to major issues such as obesity and by encouraging healthy living. And exercise has always been part of my life – right now tennis and kitesurfing are my favorite sports -- and I feel that keeping fit has helped me a great deal in my professional life. Many business leaders I know get run down by overwork and by not taking care of themselves; in time this leads to exhaustion and poor decision making.

So at the Virgin Group, we have built up a portfolio of health-related businesses over the past decade. I’ve already mentioned Virgin Active, and we also have the health research and development business Virgin Health Bank, based in Qatar, which is pioneering the storage of stem cells. We now provide health services for the National Health Service in Britain through Virgin Care, one of our newest and fastest-growing companies.

In the United States we are tackling the corporate health market with Virgin HealthMiles, which provides companies with innovative ways to encourage staff to get healthy, reducing healthcare costs for companies and their employees. This is a win-win for everyone, since a healthy workforce is a more engaged and productive one, and costs less to insure. And again, the success of this business is partly tied to new technologies, since over the years the HealthMiles team has come up with a number of devices and online programs designed to encourage employees to get fit and then to maintain that motivation.

Do you have an idea for the health and wellness sector? Remember, if your new company is going to take off, you’ll need to improve people’s lives and fill a gap in the market. I’m hoping that this sector will get much larger over the next few years as more people successfully ensure that their resolutions about getting healthier are not made in January and forgotten by March, but last the whole year round.

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Smartphones Become Life’s Remote Control

Written By Bejata Todd on Monday, January 14, 2013 | 8:00 AM

The Delphi Connected Car system sends data about a car’s location and speed to a tablet
LAS VEGAS — The smartphone is no longer just a portable computer in your pocket. It has become the remote control for your life.

Want to flip off the living room lights, unlock your front door or get a reading of your blood pressure? All of this can be done through mobile apps that work with accessories embedded with sensors or an Internet connection.

For several years, technology companies have promised the dream of the connected home, the connected body and the connected car. Those connections have proved illusory. But in the last year app-powered accessories have provided the mechanism to actually make the connections. That is partly because smartphones have become the device people never put down. But it is also because wireless sensors have become smaller, cheaper and ubiquitous.

Big companies with strong brands have been heavily promoting the new uses for these gadgets. General Motors advertises its Chevy Malibu Eco with a man showing his parents how he starts the car with a smartphone. A major selling point of the popular Nest thermostat is its ability to turn up the furnace from miles away with a cellphone.

“Now that, increasingly, consumers have a device with them to monitor virtually anything they do with the Internet, why not offer that capability to monitor and remote control?” said Ross Rubin, an analyst at Reticle Research.

The idea of turning off the lights with a smartphone may seem gimmicky, but consumers are warming to applications, said Bill Scheffler, director of business development for the Z-Wave Alliance, a consortium of companies that make connected appliances. The situation resembles the time when power windows started catching on for automobiles, or when television makers started offering remote controls, Mr. Scheffler said.

“It used to be that people would say, ‘Why does anybody want a remote control for a TV if you can get up and change the channel?’ ” he said. “It’s just progress.” Companies like AT&T, Black & Decker and Honeywell have started selling app-linked products, he said.

At the International Consumer Electronics Show, which has attracted more than 150,000 people here this week, dozens of companies are showing off connected accessories they can hook up to their home appliances to make them work with smartphones, and many are also displaying wearable devices that can help people monitor their health on their phones. Some of these products are being provided by large companies. AT&T, the wireless carrier, said that in March it would begin selling a wireless security system called Digital Life that will allow people to use tablets or phones to monitor cameras, alarms and even coffee pots.

If a burglar trips a motion sensor in the house, for example, a user can receive a text message, then call the police. Customers can choose to expand AT&T’s wireless service to appliances like lights, door locks, thermostats and security cameras, which can be controlled and monitored through the AT&T mobile app.

Ralph de la Vega, chief executive of AT&T Mobility, said in an interview that home security was a big opportunity to increase revenue. Only 20 percent of homes have security systems, he said, leaving millions of homeowners as potential buyers.

“I think it dramatically changes how people feel about their home and how secure they feel about being outside the home,” Mr. de la Vega said. “I think it’s an easy sell.” The company has not announced prices for the service.

Ingersoll Rand, which makes industrial products, offers a $300 starter kit and software for people to connect their homes. It includes a lock, a light and a wireless “bridge,” or base station, to connect the devices to the Internet. They can be controlled with a smartphone or tablet app called Nexia Home Intelligence. Customers also must pay at least $9 a month for a subscription; they can choose to buy the appliances and the bridge separately.

Products by several other companies take advantage of a smartphone’s sensors and connection to the Internet to monitor consumers’ health. IHealth sells monitors for people to track their blood pressure with an app. At the electronics show, it introduced a wireless glucose meter, called the Smart Glucometer, that lets people with diabetes determine their blood sugar. A user puts a blood sample on a test strip, pops it into an accessory attached to a smartphone, and an app gives a reading of the blood sugar level.

Adam Lin, general manager of iHealth, declined to say how many products the company had sold, but he said it was in the “six-figure” area. IHealth products have appeared at Apple, Target and Best Buy.

In addition to people who are interested in their health, health insurance providers might embrace monitoring products. Mr. Lin said iHealth was discussing with two insurers whether to provide its products to patients, which would help reduce their doctor visits.

A small start-up, AliveCor, has created an iPhone case that, when grasped, records an accurate electrocardiogram on the iPhone screen via its app. The company has attracted financing from Khosla Ventures, a prominent Silicon Valley venture capital firm.

Nike, Jawbone and Fitbit sell wearable electronic devices for people to track their movements with smartphones. Fitbit, based in San Francisco, sells a pocket pedometer called the Fitbit One, which can track a user’s steps and floors climbed, and also monitors sleep patterns. Its newest product is due in spring, the Fitbit Flex, a step counter and sleep tracker that is worn around the wrist. It synchronizes with a smartphone app to give users updates.

Woody Scal, chief revenue officer of Fitbit, said the company sold its devices in 10,000 retail stores in the United States. Its Fitbit One is the best-selling sports device on Amazon.com. He said one reason that wearable fitness gadgets had become popular was that the sensors had shrunk and battery life had improved. 
That helps make the products slimmer, more stylish and easier to use.
Mr. Scal said wireless fitness devices were becoming popular because they addressed basic needs for consumers, unlike another trend seen at the show, enormous televisions.

“In the end, I don’t wake up in the morning, look myself in the mirror and ask whether my TV has enough pixels,” he said. “But I do wonder how I’m going to get enough exercise, eat better, sleep well or manage my weight despite all the other things going on in my life.” 
ADT’s Pulse app can be used to control home security systems
Isaac Brekken for The New York Times

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