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What you should do in 2012: Start a company

It's the first day of 2012 and my 1,000th post on CNET and I'd like to encourage my dear readers to go out and raise their entrepreneurial flags.

Let's assume you have an idea and the desire to turn it into a commercial endeavor. Much is made of financings and investors but that all pales in relation to the fact that starting a company is hard. Keeping one going is even harder.

This should come as no surprise and yet a lot people still seem to believe the gushing reports of how easy it is to … Read more

Reid Hoffman--Silicon Valley's 'startup whisperer'

For startups in Silicon Valley, little is more prized than an audience with Reid Hoffman.

Entrepreneurs come for his money, attention, but most of all, his advice.

Hoffman is a bit of a mystic "startup whisperer," according to a New York Times profile on 44-year-old co-founder of professional network LinkedIn.

The profile paints a portrait of a man who juggles a full schedule of meetings with people seeking his guidance, giving rapid-fire suggestions on platforms, presentation, and strategy, while trying not to be tied to Facebook, Twitter, or any of the four cell phones he carries.

LinkedIn, which … Read more

LinkedIn finds common threads for entrepreneurs

What makes an entrepreneur? LinkedIn may have uncovered at least some answers to that question.

Digging through the public profiles of tens of thousands of people who've launched startup companies, the social network spotted at least some elements in common among them.

Unveiling her findings in a blog published yesterday, Monica Rogati, a senior research scientist at LinkedIn, found that attendance at one of 10 U.S. business schools was one common thread, with Stanford, Harvard, and MIT Sloan at the top of the list.

Looking at the fields of study sought by future entrepreneurs, Rogati discovered that computer … Read more

Fired TechCrunch teen bounces back to give back

At age 17, Daniel Brusilovsky had his moment in the media spotlight, but not for reasons to brag about. In February 2010, the then-intern at TechCrunch was fired for allegedly soliciting bribes for a MacBook Air in exchange for start-up coverage.

"Unfortunately, without going into the particulars, I made a mistake and publicly paid the price for it," said Brusilovsky, now 18. "It's something I hope others don't have to go through, but I never lost sight of my vision to help entrepreneurs and specifically teens, and wasn't going to let this get in … Read more

Uncovering the DNA of successful start-ups

If you spend much time with Web entrepreneurs or investors these days, it quickly becomes clear that "pivot" is the hottest term in Silicon Valley. It signifies a young company's shifting of focus, and everyone has an opinion about whether it's something start-ups should be doing or not.

The answer, it seems, is yes. And as long as it's done at the right pace, it can even be an extremely lucrative and important step. In fact, young Web outfits that pivot once or twice can raise two-and-a-half times as much money, see 3.6 times … Read more

Startup America needs to look beyond tech

The Startup America Partnership has launched with the backing of the White House and big bucks from tech giants such as IBM and Intel.

Andrew Nusca on Smart Planet has the details. The gist:

•AOL co-founder and Case Foundation Chairman Steve Case will lead the effort.

•The partnership is designed to foster collaboration between entrepreneurs, investors, CEOs, nonprofits and universities.

•The goal for this partnership is to build businesses that scale and create millions of jobs.

Sounds great, but I have one nagging thought: What about the rest of the country? Let's face it. The population isn't all … Read more

Reporters' Roundtable: How to start a tech business today

Today we're talking about how to start a company in 2010 and 2011. A little background: I started covering startups in 1998 at a magazine called Red Herring. I wrote a daily column about startups called Catch of the Day. Over three years, I interviewed the leaders of over 1000 companies.

Most of those companies are now out of business. The methods of starting companies in that dotcom bubble were, clearly, temporary. The companies didn't last. Today we're going to try to learn from the last bubble, look at the current state of the economy and of technology, and try to come up with some guidelines for starting a new tech business today.

Our guests: First, in the studio, we have James Joaqin, CEO of the browser bookmark sync company XMarks. I asked James to be on this show, though, because he was also co-founder of a dotcom bubble company called When.com, a calendaring app that was acquired by AOL in 1999 for $200 million, almost exactly one year after the company was founded. When.com won the lottery. We'll be talking about that, and whether we think it's possible, or even desirable, to have that happen again. James was also co-founder and CEO of Ofoto, which was acquired by Kodak.

And joining us from Santa Monica:Jason Calacanis, CEO of Mahalo and co-founder of ThisWeekIn, a podcast network for which Jason just happens to host a podcast called This Week in Startups. If, after this show, you want a deeper dive into the workings of starting a tech business, be sure to check it out. Jason is an angel investor in companies and was previously CEO founder Weblogs Inc, which launched blogs like Engadget -- which AOL acquired.

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Show notes and talking points… Read more

VC confidence down after several up quarters

Venture capitalists are now less optimistic about the entrepreneurial atmosphere in Silicon Valley over the next 6 to 18 months, according to the Silicon Valley Venture Capitalist Confidence Index, which reported its first drop in confidence in more than a year.

Based on a June survey of 32 Silicon Valley VCs, the index (PDF) dropped to 3.28 on a 5-point scale (1 indicating low confidence and 5 indicating high) for the second quarter. The latest number showed a decline from the first quarter's mark of 3.65 and ended a five-quarter rise in confidence after hitting a low at the end of 2008.

The downturn in confidence was sparked by concerns over sluggish economic growth in the U.S. and abroad as well as regulatory uncertainty in the VC industry, according to the index.

Several of the venture capitalists interviewed for the survey believe the still struggling economy may dampen investments, with one VC noting that the industry is basing its long-term investments more on short- and medium-term worries. Two VCs also said that fear is growing over the fragile economies in Europe and China and that both markets need to be watched for any impact they may have on business opportunities over the next year.… Read more

How alleged spy presented her online start-up

I have met one or two spies over the years. I think of it as the law of averages. And beverages.

Live in enough places and get involved in enough businesses and bars and, well, someone must have a hidden agenda, right?

So the story of Anna Chapman, the alleged Russian Mata Hari with a wickedly inviting mien, has naturally been one of the more captivating elements of the week.

Chapman is accused, among other things, of taking her laptop to coffee shops and transmitting all sorts of secrets to fellow Russians who might not have had American fellowship as … Read more

Start-ups on a mission find new home with Inveneo

SAN FRANCISCO--The corner of Mission and 6th Street doesn't exactly look--or smell--like a hotbed for start-ups. The sight of pawn shops and adult movie stores and the stench of urine are just a few things that make it clear gentrification hasn't made its way to this intersection.

That doesn't mean the neighborhood lacks for good ideas, however. Indeed, one of the buildings on the block has become a top destination for socially oriented entrepreneurs bringing technology to the developing world. Mission Social, as the space is now known, is home to a total of eight organizations--with some room to grow.

Originally, the spot housed just Inveneo--a 4-year-old company that focuses on bringing broadband networks and computer connectivity to groups in emerging markets, particularly rural areas. However, when the company was looking to grow, its CEO Kristin Peterson decided to take the entire floor and open it up to smaller social enterprises willing to pay about $2 a square foot.

"It's really designed to be a space where there is a lot of opportunity for collaborations and a lot of like-minded organizations," she said.

So far the inhabitants of Mission Social range from Meedan, which creates crowd-sourced Arabic/English translations, to Blue Energy, which uses a combination of wind and solar energy to try to bring power to isolated areas of Latin America, mainly Nicaragua.

Other tenants include Web video start-up JustgoodTV; SparkSeed, a group that invests in ideas created by college students; and Green WiFi, which aims to equip schools in Africa with solar-powered wireless networks.

The result is that the space, which once housed a single upstart company, is now a center for a number of different ventures, united by the fact that each is made up of technically minded people looking to use their know-how to improve conditions in the developing world.

The idea of something akin to a "social Silicon Valley" isn't unique to Inveneo. Brazilian Journalist Gilberto Dimenstein had a similar idea, transforming a once-drug-filled neighborhood in Sao Paulo into a learning community filled with small entrepreneurs and educational institutions.

One of the first companies to move in with Inveneo was Catapult Design, a firm that focuses on designing products for emerging markets. The company's previous spot was in the city's hipper Dogpatch neighborhood in a space shared with other design firms, but founder Tyler Valiquette says he'd rather share space with those of a common mind than those that share a trade.

Valiquette admits he misses a few of the creature comforts and the tonier neighborhood.

"6th street is pretty rough," Valiquette said.

Valiquette's previous spot was an old canning company space that had been tricked out with stainless steel appliances and granite countertops by a dot-com start-up that eventually went bust.

"This place has a little bit more of the 'rough and ready' feel to it," he said of Mission Social. Plus, his old spot had a machine shop he shared with fellow tenants.

Still, Valiquette said, he values the camaraderie and common purpose over comfort as he designs products that range from LED lighting projects for Africa to small-scale wind turbines to stoves that reduce indoor air pollution.

That sense of fellowship is what the inhabitants of Mission Social say they value most.

As one of just two San Francisco-based employees of Digital Divide Data, Kathryn Doyle had been working from her kitchen table until she and her colleague moved into Mission Social.

"The idea of a shared workspace really appealed to us," she said, noting that both she and her colleague travel a lot, making a traditional space both impractical and expensive.

She also said being in Mission Social is personally gratifying.

"What we do can be really hard to explain," she said of Digital Divide Data, which aims to get businesses to outsource work such as book digitization to young adults in Cambodia and Laos who then go to college part-time and train for better paying jobs. "We are working with an intangible product that most people haven't heard of in lots of different countries that people can't point to on a map."

Doyle said her fellow tenants can appreciate--and even potentially help solve--challenges such as not being able to have enough electricity to do their work.

While most of the connections between tenants are informal bonds rather than business ties, there have been some more tangible collaborations. … Read more