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VentureBeat.com: From a press release by Dow Jones VentureSource: "2008 was the slowest year from VC-backed liquidity events since 2003, according to new data from Dow Jones VentureSource. The year saw only $24.1 billion in IPO and M&A exit value, which was down 58% from the $57.6 billion produced in 2007. This included a fourth quarter without a single IPO." There might be some pockets of VC investment that are somewhat resistant to this downward trend, but it's obvious that the forecast for exits and IPOs in the coming months, and maybe even years, is grim. Find out more facts and figures by reading 2008: Worst VC-Backed Liquidity Year Since 2003.
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ArsTechnica.com: Ryan Paul takes us on a there-and-back retrospective journey featuring open source successes in A look back at the open source victories of 2008. It's easy enough to review what's happened, but the oft-maligned practice of accurately predicting what's to come is much, much harder. Paul foretells of the political ramifications of open source operating systems: "Although the coming year will bring many exciting new developments, there will be some challenges as well. The ongoing debate about how to bring freedom to the cloud will intensify and become more urgent as more users turn to web-based applications. The role of the open source software community in civic and political issues will become more pronounced, too. The principles of software freedom can make a difference in many critical areas, including national security and election integrity." Can the people's software usher in a new age of equality and good vibes for all or will it create a mish-mash of non-interoperable programs that complicate already tenuous functionality?
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BusinessWeek.com: Put your innovation skills to work this New Year's Eve by making a miniature chair from the cast-off cork, wire cage and foil from a bottle of bubbly. You might even win a real chair if your design is chosen as one of the three best submissions in Design Within Reach's 6th annual Champagne Chair competition. Jessie Scanlon reports: "We look for creativity, craftsmanship, and innovative use of materials," says Erin Brown, the Design Within Reach public relations manager who runs the competition. There are fifty finalists and three winners—one selected by the judges, one by the DWR staff, and one by the public (you will be able to cast your vote at www.designwithinreach.com during the first week in February). Each of the three winners will receive a Morgans Chair, designed by Andrée Putnam for the Morgans Hotel (MHGC) in New York and manufactured by the Hannover (Pa.)-based furniture company Emeco." You can check out previous designs in the contest here and and while you're at it, read the rest of Scanlon's piece, Bottoms Up! It's Champagne Chair Time.
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OnStartups.com: Dharmesh Shah hosts a guest column by Neil Davidson, co-founder and joint CEO of Red Gate Software, on why now is the time to startup a venture despite all appearances to the contrary. From Davidson's More Reasons Why Now Is The Time For Hatching Something New: "Times are turbulent, but the turbulence contains many pockets of opportunity. Big companies will be too large, or too clumsy or too slow to fill these pockets, but you, as a startup, can. And you only need the tiniest market niche to start up. Once you've started, you'll gather momentum, and you'll figure things out. Don't overanalyze: odds are you'll find success doing something other than what you intended anyway, so whether you pick a small market niche or a billion dollar opportunity doesn't matter. You'll end up doing neither." Find a niche and fill it better and faster than anyone else and grow your business in the direction the market indicates, in other words. You can check out Davidson's other more specifically software-focused blog posts at BusinessSoftware.org.
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ArsTechnica.com: The holder of a patent covering the navigation and access of files based on representational thumbnails is taking some big names into the ring with hopes of a financial knockout. David Chartier reports: "Products like Microsoft's Vista, Apple's Cover Flow feature, and Google's Chrome browser are cited for infringement. Cygnus is seeking the typical damages and permanent injunction that prevents further infringement, but is also stating that these big three may not be the only companies it goes after." The company is also seeking damages from the time infringement began, which is much earlier than the patent date of March 18, 2008. Will the courts side with the little guy with big aspirations or will they simply slap a smallish fine on the offenders with some kind of "play nice" licensing agreement thrown in to sweeten the pot? Stay tuned for more developments in this thrilling patent battle but for now just read Microsoft, Apple, Google sued over icon software patent to see if this move by Cygnus makes any sense at all.
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ArsTechnica.com: One ISP is already pushing back on the RIAA's new tactic of using them to police copyright infringement by a subtle subterfuge technique according to David Chartier's ISP tells RIAA piracy protection doesn't come free. Chartier writes, "Jerry Scroggin is the owner of Bayou Internet and Communications(BIC), a small ISP based in Monroe, Louisiana with around 11,000 small business, residential, and municipal customers. BIC already receives notifications from the RIAA each month, and each time 'I ask for their billing address,' Scroggin told CNET. 'Usually, I never hear back.'" Chartier also reports that Verizon is not going gently into that good night which could make the RIAA's new program to catch pirates using ISPs as their stool pigeons a shot in the dark. After all, enforcement of any kind takes time, and therefor costs money, so maybe the RIAA should make payments to ISPs for their efforts if they hope to have any success with this change of methodology.
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Gigaom.com: Palm, Inc.'s still lively corpse is getting an injection of financial adrenaline from U2's Bono and Co. according to a blog post by Om Malik. "It must be Christmas, as the guys at Elevation Partners are feeling generous enough to invest another $100 million into beleaguered smartphone maker Palm, which has been slip-sliding away for a very long time." Palm does have a small army of Treo-loving supporters and a new operating system for its smartphones, but can this keep them from joining the ranks of the dead pool? The circumstances of it's success or failure might be completely out of their control, Malik suggests: "Palm, like most vendors, is at the mercy of the carriers, which will ultimately decide the devices they want to push to the end users." Maybe Google's Android-based phone will come to the rescue, just in the nick-of-time?
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A VC Blog: Fred Wilson revisits a historical moment in the annals of the United States and provides some much-needed perspective on what many view as an apocalyptic event in The Founder's Footprints. Wilson takes for his raw material the belief that the founder of any given venture leaves an imprint, or in his terms their "DNA," that remains long after their passing from the position of power and posits that this same phenomenon is going to be the saving grace of a nation in fearful circumstances. Wilson writes, "The fact is the United States was founded by an amazing set of men that included Franklin and Jefferson, two of the greatest friends of science and innovation that have ever lived. And our country has benefited from that fact immensely. The DNA of the United States comes directly from our founding fathers; Franklin, Jefferson, Adams, Washington, and the rest of them. And their desire to make the big experiments, to push the envelope of what a nation could be is firmly implanted in our psyche a full 233 years after the Declaration of Independence." The question remains if the people of this nation are still able to hear the call of history and return to its roots of "can do" and hard work.
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