ULTIMATE PLATFORM HOT NESS SMACK DOWN Startup2Startup / Boulder June 30, 2009 David Cohen, TechStars Dave McClure, Founders Fund Jeff Clavier, SoftTech VC Ryan McIntyre, Foundry Group Howard Lindzon, StockTwits/WallStrip

Platforms: HOT or NOT ? Facebook iPhone Twitter Native Web (Search) Social Networks : Facebook, MySpace, LinkedIn, Twitter, Orkut, hi5, Friendster Email & IM : Yahoo, MSFT, Google, AOL, Skype Mobile : iPhone, Palm, Android, Blackberry, etc Gaming : Zynga, RockYou, Slide, Playfish, SGN E-Commerce : Amazon (1-Click), eBay (PayPal), Apple (iTunes) Dev : Amazon (AWS), Google AppEngine, Ruby/Rails, Python/Django, etc Other : SalesForce, Craigslist, Wikipedia, YouTube

Facebook

iPhone

Twitter

Native Web (Search)

Social Networks : Facebook, MySpace, LinkedIn, Twitter, Orkut, hi5, Friendster

Email & IM : Yahoo, MSFT, Google, AOL, Skype

Mobile : iPhone, Palm, Android, Blackberry, etc

Gaming : Zynga, RockYou, Slide, Playfish, SGN

E-Commerce : Amazon (1-Click), eBay (PayPal), Apple (iTunes)

Dev : Amazon (AWS), Google AppEngine, Ruby/Rails, Python/Django, etc

Other : SalesForce, Craigslist, Wikipedia, YouTube

Platform Viability Successful Platforms have 3 Things: 1) Features 2) Users 3) Money Users . . Money Features Growth Profit Profitable Growth Nirvana

Discussion Topics Distribution Viral? Paid? Monetization Gatekeepers & Trolls vs Support Stability / Predictability Reputation / Identity Demographic The Future ?

Distribution

Viral? Paid?

Monetization

Gatekeepers & Trolls vs Support

Stability / Predictability

Reputation / Identity

Demographic

The Future ?

Facebook Platform & Facebook Connect: Big Pimping via Profiles, Apps, Feeds

Facebook Overview Users : 250M and counting (100M+ in US) Demographic : college -> everyone (moms, grandmas) Distribution : Most viral platform on the planet Monetization : up to you: ads, lead-gen, virtual goods Gatekeepers : not much, unless you get spammy Stability / Predictability : stable, but fickle? Invitations/Notifications: lot s of rules, changes often NewsFeed: amazing distribution, but algorithm continues to “evolve” Reputation / Identity : amazing access to social graph Facebook Connect : portabile identity across the web (+ payments?)

Users : 250M and counting (100M+ in US)

Demographic : college -> everyone (moms, grandmas)

Distribution : Most viral platform on the planet

Monetization : up to you: ads, lead-gen, virtual goods

Gatekeepers : not much, unless you get spammy

Stability / Predictability : stable, but fickle?

Invitations/Notifications: lot s of rules, changes often

NewsFeed: amazing distribution, but algorithm continues to “evolve”

Reputation / Identity : amazing access to social graph

Facebook Connect : portabile identity across the web (+ payments?)

The Good Stuff Social Networks Viral Distribution via Friends Lists 1) Messaging, 2) Profile Surfing, 3) News Feeds Social “Gestures” & Communication (pokes, wall posts, emails) drive User Engagement & Distribution Social Content (notes, photos, videos) can be “tagged” with people data that also drives User Engagement & Distribution Social Applications are “carriers” for Content & Communication Facebook Connect enables “data portability” for logins, profile data, friend lists, and other social network content, data, & applications Facebook Payments is coming… soon?

Social Networks Viral Distribution via Friends Lists

1) Messaging, 2) Profile Surfing, 3) News Feeds

Social “Gestures” & Communication (pokes, wall posts, emails) drive User Engagement & Distribution

Social Content (notes, photos, videos) can be “tagged” with people data that also drives User Engagement & Distribution

Social Applications are “carriers” for Content & Communication

Facebook Connect enables “data portability” for logins, profile data, friend lists, and other social network content, data, & applications

Facebook Payments is coming… soon?

Facebook Connect, Facebook Payments Facebook Connect Standardized User Login for use OFF-Platform (outside Facebook) Access to ON-Platform data (user profiles, friend lists) “ Data Portability” -> take my network with me, anywhere on the web Lightweight app framework for use OFF-network Possibility : 250M+ users across the web; “1-click” login / “always logged in Internet”, use of FB Connect use by branded sites & retailers Facebook Payments Not launched yet; “coming soon” (now in alpha) On-platform payment option (wallet? Micro-transactions?) Off-platform payment option (via FB Connect) Possibility : Social Commerce, “Viral” Products / Digital Goods

Facebook Connect

Standardized User Login for use OFF-Platform (outside Facebook)

Access to ON-Platform data (user profiles, friend lists)

“ Data Portability” -> take my network with me, anywhere on the web

Lightweight app framework for use OFF-network

Possibility : 250M+ users across the web; “1-click” login / “always logged in Internet”, use of FB Connect use by branded sites & retailers

Facebook Payments

Not launched yet; “coming soon” (now in alpha)

On-platform payment option (wallet? Micro-transactions?)

Off-platform payment option (via FB Connect)

Possibility : Social Commerce, “Viral” Products / Digital Goods

Jeff Clavier (aka @jeff) Managing Partner, SoftTech VC Disclosure: Whoopsie, I actually own AAPL iPhone: The Good, The Bad and the Ugly

iPhone Platform – The Good 30M devices (iPhone/iPod Touch) as of 12/08(?) Over 1B downloads from AppStore Easy referencing (sort of), deployment, update Baked in monetization: premium apps, subscriptions, in-app commerce Zero-carrier friction

30M devices (iPhone/iPod Touch) as of 12/08(?)

Over 1B downloads from AppStore

Easy referencing (sort of), deployment, update

Baked in monetization: premium apps, subscriptions, in-app commerce

Zero-carrier friction

iPhone Platform – The Bad Limited discoverability among 56K applications Tough organic customer acquisition No internal virality (no contacts/graph) Challenging economics Apple’s 30% Only the head of the tail of applications makes money Like video, advertising only works for premium content/applications Proprietary development language

Limited discoverability among 56K applications

Tough organic customer acquisition

No internal virality (no contacts/graph)

Challenging economics

Apple’s 30%

Only the head of the tail of applications makes money

Like video, advertising only works for premium content/applications

Proprietary development language

iPhone Platform – The Ugly Application developers are not managed like an asset by Apple, more like a necessary evil Lot of crappy apps out there

Application developers are not managed like an asset by Apple, more like a necessary evil

Lot of crappy apps out there

iPhone Platform – The Ugly Application developers are not managed like an asset by Apple, more like a necessary evil Lot of crappy apps out there Proprietary development language

Application developers are not managed like an asset by Apple, more like a necessary evil

Lot of crappy apps out there

Proprietary development language

Twitter

What is StockTwits ? StockTwits is an open, community-powered investment idea and information service 80,000 twitter subscribers Our "Human Ticker” adds context TweetDeck's functionality enables "Social Bloomberg" Eavesdrop on traders and investors in the “Now Web” Piggyback on Twitter’s reputation system Transparency assures meritocracy

StockTwits is an open, community-powered investment idea and information service

80,000 twitter subscribers

Our "Human Ticker” adds context

TweetDeck's functionality enables "Social Bloomberg"

Eavesdrop on traders and investors in the “Now Web”

Piggyback on Twitter’s reputation system

Transparency assures meritocracy

Free Model

Tweetdeck Integration

Native Web (Search)

Web / Search: One Platform to Rule Them All Hotness Features (yes, all of them!) Users (1.6B and counting) Money (lots! GOOG is $22B, AMZN $20B, EBAY $8B) The search gesture carries more economic value than social/sharing gestures (for now) The über platform: all interesting apps built on web stack, whether FB, Twitter, iPhone, etc Big serendipity/surprise factor inherent in the web/search platform No gatekeeper, no approval process, widest flexibility in developer tools, ease of deployment Web’s ecosystem of ad networks, payment systems, affiliate revenues, etc. enable monetization for non-developers : publishers, retailers

Hotness

Features (yes, all of them!)

Users (1.6B and counting)

Money (lots! GOOG is $22B, AMZN $20B, EBAY $8B)

The search gesture carries more economic value than social/sharing gestures (for now)

The über platform: all interesting apps built on web stack, whether FB, Twitter, iPhone, etc

Big serendipity/surprise factor inherent in the web/search platform

No gatekeeper, no approval process, widest flexibility in developer tools, ease of deployment

Web’s ecosystem of ad networks, payment systems, affiliate revenues, etc. enable monetization for non-developers : publishers, retailers

Web / Search: One Platform to Rule Them All Coldness Growing more slowly than FB, Twitter, iPhone, etc You can build anything. Constraints imposed by FB, Twitter, iPhone platforms can actually benefit developers WRT stability, distribution, monetization De-facto gatekeeper: Search engine dynamics throttle distribution. Time/money required to build Google juice/SEO and to engage in SEM Pages not people (links are king, ignores the social, makes distribution hard) Then, not now (web is archive, not zeitgeist)

Coldness

Growing more slowly than FB, Twitter, iPhone, etc

You can build anything. Constraints imposed by FB, Twitter, iPhone platforms can actually benefit developers WRT stability, distribution, monetization

De-facto gatekeeper: Search engine dynamics throttle distribution. Time/money required to build Google juice/SEO and to engage in SEM

Pages not people (links are king, ignores the social, makes distribution hard)

Then, not now (web is archive, not zeitgeist)

Discussion Topics Distribution Viral? Paid? Monetization Gatekeepers & Trolls vs Support Stability / Predictability Reputation / Identity Demographic The Future ?

Distribution

Viral? Paid?

Monetization

Gatekeepers & Trolls vs Support

Stability / Predictability

Reputation / Identity

Demographic

The Future ?

Platform Viability Successful Platforms have 3 Things: 1) Features 2) Users 3) Money Users . . Money Features Growth Profit Profitable Growth Nirvana