Minnov8

Showcasing Minnesota Technology Innovation

Archives for July 2010

Minnov8 Gang 87: More Buzz About Mobile

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Though the Gang discusses several topics this week (in the midst of the typical summer doldrums for new releases) the buzz covered is mostly about mobile. There are some interesting strategic moves being made by Best Buy with Clearwire—coming to the Twin Cities this Fall—as well as updates to Android mobile with Froyo and more.

Hosts: Steve Borsch, Tim Elliott, Graeme Thickins and Phil Wilson.
Music: Clintone and the song “Full Circle” via the podsafe music network Music Alley.

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The Podcast

Podcast: Download (Duration: 58:32 — 34.0MB)

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Discussed during the show:

MPR: Where is innovation in Minnesota?

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Minnesota Public Radio has a subsite called MPRNewsQ with an online poll for ‘select’ Minnesotans: Where is the innovation in your field?

At the head of the poll they state, “Innovation: The health of the economy depends on it. Our schools are meant to encourage it. But innovation isn’t a widget that can be stamped out on the assembly line. It’s the product of a delicate recipe of education, technology and entrepreneurship. We’d like your help exploring where innovation is happening, and where it’s not, but should be.”

When I received an email invite today to respond to the poll, I was initially excited since I assumed (wrongly) that this was open to general public and/or MPR members at large. As it turns out I received the invite since I’m one of a select number of “Public Insight Network” contributors to yet another subsite on MPRNewsQ called “Minnesota Today“.

Minnesota Today is a crowdsourced article input site from a number of people who (hopefully) have insight in to important and interesting we all come across daily while reading online. We submit links to a moderated queue and they’re looked at and posted periodically throughout each day. I’m expecting this connection might enable me to obtain the results of this poll early—or at least be able to publish them quickly here on Minnov8—and I’ll try to let you know what people say as soon as possible.

Though I’m a contributor and fan of MPR, the website has so much going on and is so layered and nuanced, it’s a real challenge to find anything…including my modest contributions at Minnesota Today. In fact, I’ve talked to about a dozen hard-core MPR and Twin Cities Public Television members who had no clue Minnesota Today even existed and for a couple of others who did, had no idea I contributed. Others are taken aback that there are “special” polls like this that are not open to the public at large and I’d have to agree.

Still, this is a good start on an innovative use of the web and crowdsourcing and I applaud MPR for the effort.

Why Small Business Needs to Innovate

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It is likely you’ve heard many times that small business is the engine of the U.S. economy and employs more than 50% of workers in our country. Over a recent 15-year period small businesses created some 65 percent of the net new jobs in the private sector according to a report, “Analysis of Small Business and Jobs” (PDF) from the Small Business Administration office of Advocacy—it’s equally true that the net job losses due to our economic downturn have hit small business hard in many ways.

Many Minnov8 readers automatically assume that startups and new businesses are the key to being the growth engine the U.S. and Minnesota needs. While that’s absolutely true, the Advocacy’s analysis of the quarterly Bureau of Labor Statistics data shows that over the 15 years from 1993 to mid-2008, 31 percent of net job gains (jobs created minus jobs lost) came from the creation and destruction of businesses (net employment change from business entry minus business exit) BUT an even larger share—the remaining 69 percent—were from businesses that were not new, but survived.

Small business has been hit just as hard as the rest of the economy and oftentimes cannot withstand recessionary forces as well as bigger businesses with either deep pockets or access to capital. As a consequence, many are turning to powerful and inexpensive methods to get the word out about their businesses, engage their loyal users and build a following, and are doing so in some unique ways.

For those of you who are actively using social media—blogs, Twitter, Facebook, even the old standby, email—you know that more of us than ever are paying less attention to traditional media and more attention to new forms of media and communications and therefore coming across businesses who are using it for communicating with us. Some local savvy small business leaders are taking matters in to their own hands with interesting results and to make certain they’re one of the 69 percent that survive our economic downturn….  [Read More…]

Minnov8 Gang 86: Small Business is Social

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Friday found the Gang at the Social Media Breakfast/Minneapolis & St. Paul (SMBMSP) for a fabulous panel on small business and social media. It was led by Jason DeRusha (who is employed doing something at WCCO-TV & is at @DeRushaJ) with panelists Julie Warner of WarnersStellian (@WarnersStellian); Aimee Pelletier of DarnKnitAnyway (@darnknitanyway); Naomi Williamson of Sanctuary Restaurant (@SanctuaryRest); and Dan Marshall of Peapods (@PeapodsNatural).

The festivities were kicked off by fun video introductions by “Dream Team” leaders for UnitedWay fundraising and you can see all of the team leaders at Dreamteam2010.org and you, yes you, can get in on the action by corralling your friends and family to signup for one of the four teams. As part of our podcast, we invited Bob Brin (@eBob) from Padilla Speer Beardsley (and specifically Padilla Gorilla) as well Mykl Roventine (@myklroventine) who is a co-organizer of Social Media Breakfast – Minneapolis/St. Paul, co-founder/organizer of Ignite Minneapolis and UnSummit, as well as running the local chapter of TechKaraoke Minneapolis.

Hosts: Steve Borsch, Tim Elliott and Phil Wilson (Graeme Thickins was off this week).

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The Podcast

Podcast: Download (Duration: 26:28 — 15.4MB)

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Minnov8 Gang 85: Are Angels Crying?

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After yesterday’s post, “Is Perception the Reality with MN Venture Funding?” we received a lot of email and some comments about the state of angel and venture investing in Minnesota. There is a lot of buzz amongst startups (and wannabees) who feel like this State is risk averse and a place where angels and VCs focus on the ‘easy’ spaces: medtech and healthcare.

Pete Birkeland

Is that true? We talk with Pete Birkeland, CFO at RAIN Source Capital, the largest network of Angel Investment Funds in US. Pete is part of a team that manages 23 funds in 6 six states with $40 million under management and is a guy who has worked in this area for 10 years on both the entrepreneurial and investor side.

Hosts: Steve Borsch, Tim Elliott & Graeme Thickins (Phil Wilson is off this week).
Music by The Varatones and their song, “Surf Blaster” from Music Alley.

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The Podcast

Podcast: Download (Duration: 59:59 — 34.7MB)

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Discussed During the Show:

Is Perception the Reality with MN Venture Funding?

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All the effort underway to kickstart innovation and entrepreneurial activity ((e.g., MHTA; MNCup; MOJO MN; Minnedemo/Minnebar; Minnov8; tech.mn) is clearly a reaction to the nearly terminal decline of risk taking and venture funding in Minnesota. Wherever there is a vacuum, something will fill it!

How true is the perception that Minnesota lacks funding and risk-taking venture capitalists? If you read these three things below, you’ll see that it’s highly likely perception is reality.

  • Having Eric Caron (@ecaron) point out this thread to me at Hacker News which was sparked by someone submitting this tech.mn article for discussion. While commenters have usernames vs. real ones and there is a lot of anecdotal discussion in the thread, it’s a troubling read since this is how many startups feel about being here in Minnesota
  • Next I fired up my iPad RSS reader in order to skim the top tech sites I read at breakfast each morning. I immediately was presented with an incredibly contrarian-to-Minnesota-VC-funding-experience in an article on the tech site GigaOM entitled, “Seed Stage Investments Jump Sharply in Q2 2010.” It begins with this: “If there were any doubts that the entrepreneurial activity is hitting new highs, then the new data from the National Venture Capital Association puts them to rest –venture capitalists invested $6.5 billion in 906 deals during the second quarter of 2010, thanks to a renewed interest in seed and early stage companies along with new found enthusiasm for clean technology-oriented startups. This is in sharp contrast to a slowdown in the new money flowing into venture funds themselves.“
  • In a pretty clear sign that everyone’s perception is reality came when I popped open StarTribune.com’s business section this morning and this article leapt out at me, “Venture capital still scarce in Minnesota.” It led with this: “Venture capital investments in emerging Minnesota companies perked up a bit in the second quarter but remained on track for the weakest year in 15 years of record-keeping, according to data being released Friday.“

The passing of the Angel Tax Credit will go a long way to tap in to the seed stage momentum GigaOM reported on this morning. Read Why Now? MN Legislature Passes Bill w/Angel Investment Tax Credit and Angel-backed Startups 30-50% More Likely To Be Successful to learn more about seed stage investing in Minnesota…

…but then tell us what else needs to be done? Make your voice heard in the comments!

The Joy of Infiltration Champions Open Game Development

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The mind of Zach Johnson is an interesting place. While much of it remains unexplored it’s filled with plenty of ideas, projects and fun. We last talked with Zach about Scribbls, a great site where doodles can give birth to hilarious results that he and his Watermelon Sauce partner Paul Armstrong developed.

His most recent work comes from his own Zachstronaut, which he describes as a “web rocket-lab” site to showcase his love for the internet and gaming as well as his experiments. The result of that work is his internet game Infiltration.

Infiltration was built in response to blog Boing Boing‘s call for games to be developed that were inspired by “chip music“. (You can vote for Infiltration through today, 7/15). Most likely very familiar to gamer cycles but not far beyond, chip music is inspired by early video game soundtracks. Think Asteroids, Pac Man and a host of Nintendo games. Grab a Casio keyboard and hang on…

Johnson, a fan of this unique musical genre, has spent more than his fair share of time listening to chip music and envisioning the game activity that it might accompany. A User Experience developer at Worrell, he says, “Video games contributed to shaping my entire career in computers.” It was clearly a natural for him to develop a chip music inspired game.

Indie game developer game designs tend to be very simplistic, with an almost nostalgic look and feel. “Part of the design is a nod to the old school music but it’s probably more about the amount of time and money indie game developers have to spend on the games.” He goes on to note, “It took nine people a year to write Pac Man, I wrote this in about 30 hours.”

Johnson also saw an opportunity to advance his passion for open programming. “I wanted to make a game that didn’t need a plugin.” Hence the use of Javascript, allowing the ability to play the game directly from your browser. “Javascript and browser based games offer a very low barrier of entry.” notes Johnson.

The use of coding language like Javascript and HTML5 is on the rise as many see the use of Flash diminishing. “I don’t hate Flash, but it’s obvious it is going the way of the Dodo.” according to Johnson referencing the ownership and closed nature of the language. “I always bet on the openess of  web.” When developing the game and entering the Boing Boing contest (Did I mention you could vote for his game through 7/16.) Zach thought that the use of Javascript would allow him to be more unique and give him an upper hand. But “The use of Javascript was more prevalent than I thought…which is good.” Nearly half the games submitted use it.

httpvh://www.youtube.com/watch?v=JhvupyRdR5I&feature=player_embedded

The design of the game and the participation in the contest serves Johnson in number of ways. First and foremost, it’s a hobby. It also clearly promotes his programming skills and many projects while allowing him to share his passion for open web design. In addition, while he could have spent much more time on the game he appreciates the short-term goal. “The competition set a deadline. Otherwise I can spend a lot of time on it. I need to make a game I need to get done.”

Where does he see this indie game developer movement going? “There are plenty of applications from entertainment to art to even civil engagement. Imagine someone demonstrating the need for better routing of traffic through a game.” He also notes a very basic result. “If I can make little tidbits of joy for someone, that’s great.”

Method Patents: Good or Bad?

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On July 31, 1790, the first U.S. patent was issued to Samuel Hopkins for an improvement "in the making of Pot ash and Pearl ash by a new Apparatus and Process" and signed by then President George Washington.

Let’s say you’ve founded a startup and think you have a completely original idea no one has thought of before with new approaches to the way an old process works. You might then think all you have to do is patent that process and you can achieve the protection patenting is all about: excluding others from copying you.

Oh, if it were only so simple. The world of patents has become incredibly complex and is a minefield just waiting for a startup to get traction selling their offering before the unaware entrepreneur takes a step, hears a click, and thinks “Oh-oh” just before the “patent landmine” blows up. This is especially true in the area of method (i.e., process) patents but there’s hope.

Ernest Grumbles III

Ernest Grumbles III, an intellectual property attorney with Merchant & Gould and co-founder of MOJO MN, has one of the best posts I’ve read yet at StarTribune on the current state of method patents (and it’s obvious why you need somebody like him to ensure your idea is capable of being patented or even worthy of protection). As Ernest points out, method patents are neither good nor bad and are granted based on the merits of the claim and its level of abstraction. If you have a method idea you’re already moving forward on (or are about to) then you owe it to yourself, and your current and future investors, to make certain you are protected and that you wrap that idea in a way that minimizes abstraction and ensures you’re granted that patent!

That said, calls for patent reform are growing louder by the week and many of us who see some patents as ways to extort money from entrepreneurs and innovators or stifle innovation, hope the U.S. Patent & Trademark Office moves faster on reform.

Until there are significantly more precedents set in the area of method patents, people like Ernest will have no shortage of work and startups no end of concern over whether a method idea is too abstract to be patented or likely infringing on some obscure patent already granted.

Congresswoman Calls for Skype Use?

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UPDATE 7/18/10: If this doesn’t prove the point of this article…nothing does. Security expert Bruce Schneier posts, “Skype’s Cryptography Reverse-Engineered” and if this proves to be true, it would be trivial for rogue nations or eavesdroppers to listen-in on Congressional Skype conversations!

A fake Skype call highly unlikely to ever occur

In a time when cybersecurity has become the new battleground among nations and calls for enhanced national defense online are accelerating, Congresswoman Michele Bachmann is trumpeting the use of a technology for communications that has an unknown security model and seems at odds with the usual Republican focus on national security.

An article by Jeremy Herb in the StarTribune this morning caught my eye, “Bachmann pushes Congress to embrace Skype.” It outlines the reasons why Rep. Michele Bachmann is calling for the use of the free Skype program on Congressional networks—so she and others can talk directly with their constituents or hold “virtual town halls”—but its use is banned in the House of Representatives.

The article quotes a University of Minnesota computer science professor, Joseph Konstan, who says this about the fundamental reason a peer-to-peer program like Skype is problematic and why it would be banned: “The reason people worry about using tools like these is they are inherently insecure. The design of Skype is something that hasn’t been carefully scrutinized, and so it may very well be there are bugs in there.”

Sure there could be bugs, but the biggest reason installing Skype on Capitol computer networks is a huge problem is because of that unknown security model of Skype. It is not possible to know much about the security of Skype since their code is proprietary and is not open to peer review or close examination of potential security holes.

As a fan of Skype and someone who has used it daily for several years, I evangelize its use constantly. That said, I wouldn’t want my government to embrace it without some very close scrunity and safeguards and I’m puzzled why Rep. Bachmann would now be banging-the-drum for Congress to adopt Skype. Here’s why doing so isn’t wise. …  [Read More…]

MixMobi Moves Closer to Being Named One of The PepsiCo 10

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Local mobile marketing start up MixMobi emerges from hundreds of entries to  join 40 other emerging technology firms in advancing to the the semi-final round of brand giant PepsiCo’s PepsiCo10. MixMobi’s CEO, Lisa Foote noted, “Pepsi’s brands (Quaker, Gatorade, Frito Lay and Pepsi) are global, multi-channel brands that can benefit from MixMobi’s approach to mobile marketing.”

Billed as “an open call and partnership between PepsiCo and up to 10 of the most promising start-ups in media, communications and technology” PepsiCo is quick to point out this is not a contest. “it is an open Request For Proposals (RFP).” and “the 10 entrepreneurs chosen will be mentored by a team of venture capitalists, media experts and PepsiCo brand marketers during pilot programs of their submitted technologies and innovations.” While there is no ‘prize’ on the line, Foote noted the benefits of being part of the PepsiCo10, “To be associated in a technology demonstration with a brand like Quaker or Gatorade is very valuable to a startup. The trade off between revenue and exposure works in this case. ”

The next step for MixMobi as well as all of the semi-finalists is to submit a three minute video answering some basic questions and a running through a demo of the product or service. The finalists will be announced by weeks end with the final 20 heading to the two-day PepsiCo10 Summit to present to PepsiCo brand marketers, agency partners, venture capitalists and angel investors in attendance. The chosen ten will partner with a PepsiCo brand for a pilot execution of their solutions.

According to Foote the ideal outcome would be “To have MixMobi-powered technology support PepsiCo brands like Frito Lay or Pepsi beverages in multiple geographies in several different languages, across a variety of mobile platforms and carriers, as well as through diverse digital channels (ex: Facebook, Twitter, text messaging and Augmented Reality) would be an ideal demonstration of MixMobi’s robust, internationalization-ready platform.”