New Rules Break Down the Walls for New Angel Investors

New Rules Break Down the Walls for New Angel Investors

Easing of Government Restrictions Allows Funding Syndicates Such as AngelList to Flourish

SPENCER E. ANTE and EVELYN M. RUSLI

Oct. 8, 2013 8:45 p.m. ET

When entrepreneur Jakub Krzych raised seed funding for his first technology startup in 2009, it took him around six months to scrounge together $20,000. A few weeks ago, Mr. Krzych rounded up $250,000 in just three days for his second startup, called Estimote. What changed? An easing on some of the U.S. government’s long-standing restrictions on fundraising has given life to a new type of venture-financing vehicle called an online syndicate, that allows so-called “angel” or early-stage investors to quickly assemble a group of investors over the Internet. Read more of this post

Mobile Advertising Begins to Take Off

Mobile Advertising Begins to Take Off

Spending More Than Doubled in the First Half

SUZANNE VRANICA and CHRISTOPHER S. STEWART

Updated Oct. 9, 2013 9:11 p.m. ET

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Marketers are finally convinced that there’s money to be made peddling everything from soap to salad dressing to the legions of consumers glued to their smartphones and tablets: Spending on mobile advertising more than doubled in the first half of the year. Mobile-ad spending in the U.S. totaled $3 billion in the first half, up from $1.2 billion a year earlier, the Interactive Advertising Bureau estimates. Read more of this post

Asian Messaging Apps Challenge Silicon Valley; China’s WeChat and Korea’s Line Are Threatening the Global Growth of WhatsApp and Facebook

October 9, 2013, 2:51 p.m. ET

Asian Messaging Apps Challenge Silicon Valley

China’s WeChat and Japan’s Line Are Threatening the Global Growth of WhatsApp and Facebook

JURO OSAWA And PAUL MOZUR

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In the fiercely competitive market for smartphone applications, two Asian contenders are starting a trend from the Far East—and sending a message to Silicon Valley. China’s WeChat and Japan’s Line may be unfamiliar to most U.S. smartphone users. But the apps, which combine instant messaging with social networks, are well-known to hundreds of millions in Asia and other parts of the globe, challenging the global dominance of U.S.-based WhatsApp Inc. and even posing a potential threat to Facebook Inc. FB -0.78%and Twitter Inc. Line and WeChat’s prospects are far from assured in the fast-evolving world of mobile services, and how well they can prosper outside Asia is largely unknown. But their expansion is a marked change from the pattern of most social networks being born and gaining critical mass in the U.S. before spreading to other countries. Read more of this post

Indonesia Takes Some Small Steps Toward Hollywood

October 9, 2013, 7:00 p.m. ET

Indonesia Takes Some Small Steps Toward Hollywood

Though No. 4. in Population Globally, Long a Cinematic Lightweight Regionally.

ARMANDO SIAHAAN

Over the past few years, Indonesia’s profile in Hollywood has been growing slowly but surely, and martial arts are fighting to further the momentum. Justin Lin’s “Fast & Furious 6,” this year’s entry in the Vin Diesel muscle-car franchise, includes a supporting-villain turn for Indonesian judo-champion-turned-actor Joe Taslim, while Iko Uwais, an Indonesian actor known for the traditional martial art pencak silat, is featured in the martial-arts film “Man of Tai Chi,” a China-U.S. co-production directed by Keanu Reeves. Read more of this post

Coffee Market Braces for Venti Bags; Rule Change Expected to Further Suppress Arabica Prices

October 9, 2013, 4:34 p.m. ET

Coffee Market Braces for Venti Bags

Rule Change Expected to Further Suppress Arabica Prices

LESLIE JOSEPHS

For hundreds of years, coffee beans have made their way around the world in gunny sacks. Now the use of these burlap bags, small enough to be hoisted by one person and a symbol of coffee’s artisanal character, is giving way to the modern demands of global trade. IntercontinentalExchange Inc., ICE -0.37% home to the world’s most heavily traded coffee contract, last week said it would allow bean shipments to its certified warehouses to arrive in lined cargo containers, or “supersacks.” These plastic woven sacks often hold a metric ton of coffee, or enough beans to make about 125,000 shots of espresso. Read more of this post

Yum Concedes Missteps in China; More Innovation Was Needed After KFC Chicken-Safety Scare

Yum Concedes Missteps in China

More Innovation Was Needed After KFC Chicken-Safety Scare

LAURIE BURKITT and JULIE JARGON

Updated Oct. 9, 2013 1:40 p.m. ET

A lack of innovation and other missteps by Yum Brands Inc. YUM -6.76% in China are accelerating the slide of what was long one of the most successful foreign businesses in the world’s biggest emerging market. Yum executives acknowledged Wednesday that consumer fears over food safety have had a longer-lasting effect on China sales than expected—especially at its 4,463 KFC outlets in the country—and that its business there hasn’t been innovative enough with its menu offerings. Read more of this post

Asia’s Warning About Basel Bonds

Updated October 9, 2013, 3:38 p.m. ET

Asia’s Warning About Basel Bonds

A supposed crisis-prevention measure confuses investors.

Some people think a proliferation of novel, hard-to-value credit-linked securities that behaved unpredictably in a crunch contributed to the 2008 financial crisis. Silly them! The Basel committee of central bankers and regulators knows better, and has now decreed that more such securities are the way to avert another crisis. We’re joking, but the so-called Basel III capital standards for banks are all-too serious. And Asian banks are becoming guinea pigs in one of the bigger Basel III experiments. Read more of this post

Change Flies Into Japan: JAL’s Airbus order shows economic transformation is happening anyway, even as grand plans falter in Tokyo

Change Flies Into Japan

JAL’s Airbus order shows economic transformation is happening anyway, even as grand plans falter in Tokyo.

JOSEPH STERNBERG

Oct. 9, 2013 12:29 p.m. ET

The case for optimism about Japan’s economic future, such as it is, is that change has to come eventually. Demographic decline at home and economic changes abroad will make the old ways unsustainable, at which point the Japanese will have to change course. And wouldn’t you know it, but this week Japan Airlines 9201.TO +1.25% , of all companies, offered further evidence that the theory is true. Read more of this post

FX Concepts Closing Asset-Management Business; Firm Was Once World’s Largest Currency-Focused Fund Manager

Updated October 9, 2013, 7:14 p.m. ET

FX Concepts Closing Asset-Management Business

Firm Was Once World’s Largest Currency-Focused Fund Manager

GREGORY ZUCKERMAN, IRA IOSEBASHVILI And NICOLE HONG

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The investor retreat from the once-lucrative currency-trading arena passed a milestone Wednesday with the closure of a firm that once was the largest of its sort, FX Concepts. The New York firm, whose assets under management shriveled to $660 million last month, from $14 billion at the dawn of the financial crisis, will close its asset-management business over the next few weeks and return money to investors, the company said in a statement. Read more of this post

A giant US asset manager is banking on the US not paying its bills on time

A giant US asset manager is banking on the US not paying its bills on time

By Matt Phillips @MatthewPhillips 2 hours ago

As we’ve been saying, there are plenty of signs that investors have been dumping US Treasury bills set to mature during around the time the US will hit the debt ceiling. And here’s one solid example: giant US money manager Fidelity Investments says it is one of those investors. Portfolio managers at the Boston-based firm have been selling of short-term Treasury bills over the last couple of weeks, according to Nancy Prior, president of Fidelity’s Money Market Group, who told the Associated Press. Sell-offs by Fidelity and others have resulted in the sharp rising in yields on one-month US Treasury bills recently. Read more of this post

The workday secrets of the world’s most productive philosophers

THE WORKDAY SECRETS OF THE WORLD’S MOST PRODUCTIVE PHILOSOPHERS

BY: DRAKE BAER

Haters gonna hate, thinkers gonna think, philosophers gonna philosophize. But how does one philosophize? Would someone whose thoughts would later shape the world shape their days differently than you and I? As Josh Jones notes at Open Culture, the answer is “not really”–aside for some serious devotions to long, lonesome walks. As we’ll see below, the irregularly outsize output of Friedrich Nietzsche, Karl Marx, and Immanuel Kant was marked by exceedingly regular days. As the literary saying goes: “Be regular and orderly in your life so that you may be violent and original in your work.” So let us get to the orders. Read more of this post

Ben Horowitz: Cash Flow and Destiny; “Until you generate cash, you must heed investors even when they are wrong. When you generate cash, you can respond to silly requests from the capital markets the way Kanye would”

10.08.13 // Cash Flow and Destiny

Ben Horowitz

Wait ’til I get my money right
Then you can’t tell me nothing, right?
—Kanye West, “Can’t Tell Me Nothing”

If you are an entrepreneur, you have probably heard some crusty old CEO or investor say something like “cash is king.” You probably read the Twitter S-1 and thought to yourself: “What the hell are those old guys talking about?” Twitter is still burning cash six years after founding and they, not cash, seem to be king. In a situation such as this, I usually just say to myself: “That’s the problem with wisdom, you can get it, but you cannot share it.” But this particular nugget is so fundamentally important that I will attempt to represent the old guys in this imaginary conversation. I was a founder/CEO during the period when cash seemed more like a serf than a king in 1999 and 2000. It was the era of “go big or go home.” Investors loved anything Internet and could not care less about profits. I grew my company and I grew it fast. In less than nine months after founding, I booked a $27 million quarter. I was going big and definitely not going home. Then the dot com crash happened and investors changed their collective minds. Investors hated anything Internet and wouldn’t fund anything that couldn’t fund itself. Read more of this post

Ben Horowitz: Why Founders Fail: The Product CEO Paradox

08.12.13 // Why Founders Fail: The Product CEO Paradox

Ben Horowitz

If I knew what I knew in the past
I would have been blacked out on your a**
—Kanye West, Black Skinhead

Because I am a prominent advocate for founders running their own companies, whenever a founder fails to scale or gets replaced by a professional CEO, people send me lots of emails. What happened, Ben? I thought founders were supposed to better? Are you going to update your “Why We Prefer Founding CEOs” post? In response to all of these emails: No, I am not going to rewrite that post, but I will write this post. There are three main reasons why founders fail to run the companies they created:

The founder doesn’t really want to be CEO  Not every inventor wants to run a company and if you don’t really want to be CEO, your chances for success will be exceptionally low. The CEO skill set is incredibly difficult to master, so without a strong desire to do so the founder will fail. If you are a Founder who doesn’t want to be CEO, that’s fine, but you should figure that out early and save yourself and everyone else a lot of pain. Read more of this post

Disasters, Rebuilding and Leadership – Tough Lessons from Japan and the U.S.

Disasters, Rebuilding and Leadership – Tough Lessons from Japan and the U.S.

Oct 03, 2013

On March 11, 2011, deep below the surface of the Pacific Ocean, enormous seismic forces reached a tipping point. At 2:46 p.m., one of the earth’s tectonic plates suddenly shifted, thrusting violently underneath another. The North American plate was pushed upward with such force that the movement generated a massive tsunami. It took the wall of moving water 51 minutes to reach the coast of Japan, some 45 miles away. In some places, the tsunami towered more than 125 feet above the ground when it hit. Thankfully, the height of the wave was far less where it came ashore near the Fukushima Daiichi nuclear power plant — “only” 50 feet high. Still, the nuclear disaster caused by the earthquake and tsunami has been rated by the International Atomic Energy Agency as equal in severity to the 1986 accident at Chernobyl, the worst nuclear disaster on record. The complex catastrophe — earthquake, tsunami and nuclear meltdown — killed close to 20,000 people, displaced hundreds of thousands more and contaminated a large swathe of beautiful countryside for decades or longer. More than two years later, Japan is still struggling to recover and prevent even more devastation. On May 24, 2013, the Initiative for Global Environmental Leadership (IGEL) sponsored a panel at the Wharton Global Forum in Tokyo to consider the leadership lessons generated by the Fukushima disaster, and to look at its impact on Japan’s energy policy and the resettlement of afflicted areas. Read more of this post

Hallmarks of Successful Growth Companies

Hallmarks of Successful Growth Companies

In collaboration with GE Capital, Jun 05, 2013

Being an entrepreneur is difficult. Yet some start-up and growth-stage companies do more than survive — they thrive. Experts from Wharton and GE Capital reveal that business success often doesn’t depend on stunning innovations but instead on common-sense business practices such as embracing change and choosing the right partners and board members.

Manila Casinos Taking on Singapore Hinges on Tax: Southeast Asia

Manila Casinos Taking on Singapore Hinges on Tax: Southeast Asia

Macau casino mogul Lawrence Ho said gambling revenue in the Philippines “could easily” double to $4 billion in a couple of years, setting the stage to challenge Singapore as Asia’s second-biggest gaming hub. To ensure success, the Philippines will have to decide how to tax casino developers and operators, Melco Crown Entertainment Ltd. (MPEL) co-Chairman Ho said in an interview in Manila yesterday. In April, the nation’s tax bureau ordered all casino operators to pay income tax on their gaming earnings, removing an exemption provided for by the licenses given to four operators developing casinos in the capital. Read more of this post

Disney will stop issuing stock certificates, delivering shares only in electronic form in a blow to would-be collectors of the documents featuring drawings of Bambi and Mickey Mouse

Disney Stops Issuing Stock Certificates in Blow to Fans

Walt Disney Co. will stop issuing stock certificates on Oct. 16, delivering shares only in electronic form in a blow to would-be collectors of the documents featuring drawings of Bambi and Mickey Mouse. When investors transfer shares, they will be reissued without certificates, Disney said today in a regulatory filing. That will shrink the supply for websites pitching the items as a way to interest children in investing. Read more of this post

NASA Keeps Chinese Away From Aliens; Chinese nationals carry the burden of their country’s weak commitment to intellectual-property protection and strong commitment to espionage

NASA Keeps Chinese Away From Aliens

If Martians landed on National Aeronautics and Space Administration property, Chinese nationals wouldn’t be part of the welcoming committee.

That’s one potential — if far-fetched — consequence of federal legislation and a March moratorium that bans people from China and a handful of other nations from being granted new access to NASA facilities. NASA Administrator Charles Bolden’s rationale for the moratorium was to protect the U.S. and its space technology from spies. This came in the wake of espionage allegations at a NASA facility that turned out to be false. (The downloaded secrets were actually, ahem, downloaded porn.)

An actual consequence of the U.S.’s actions is that Chinese students and researchers will not be allowed to attend a November conference on alien worlds at NASA’s Ames Research Center in Mountain View, California. As a result, several prominent researchers are boycotting the conference. Read more of this post

Cash-Challenged CERN Lifted by Nobel Hunts for BRIC Funds; ““It took us 50 years to complete our description of the visible world. It’s high time to go into the dark universe. To open that window would be just great.”

CERN Hunts Missing Universe After Higgs Boson Pioneers Win Nobel

The Geneva research center that made the most important find in particle physics in half a century, helping explain how the visible universe holds together, is tapping developing nations to help fund its follow-up act. CERN’s observation of a Higgs boson last year led to a Nobel Prize in Physics yesterday for Peter Higgs and Francois Englert for their theoretical work predicting the particle’s existence. CERN is now considering new multibillion-dollar projects that may prove that other dimensions exist and track what happened after the Big Bang formed our universe. Read more of this post

New York Set to Reach Climate Point-of-No-Return in 2047

New York Set to Reach Climate Point-of-No-Return in 2047

Temperatures in New York are increasing, and after 2047 they won’t return to the historical average of the past one and half centuries, according to a study today in the journal Nature. “Climate departure,” when the average temperature for each year is expected to exceed historical averages from 1860 through 2005, will occur in Jakarta and Lagos in 2029, Beijing in 2046 and London in 2056, according to the study. New York will match the global departure 34 years from now and tropical areas will get there sooner. Read more of this post

Oakmark International’s David Herro Sells IRE, Buys Samsung and WPP; Up 41% for fiscal year ended Sep 2013

David Herro Sells IRE, Buys Samsung and WPP; Up 41% in 2013

by ValueWalk StaffOctober 8, 2013

David Herro from The Oakmark International Fund Q3 letter to shareholders (see Herro comments’s in Oakmark Select Global Fund).

The Oakmark International Fund returned 41% for the fiscal year ended September 30, 2013, comparing favorably to the MSCI World ex U.S. Index, which returned 21%. For the most recent quarter the Fund outperformed the MSCI World ex U.S. Index, returning 13% versus 11%. The Fund has returned an average of 11% per year since its inception in September 1992, outperforming the MSCI World ex U.S. Index, which has averaged 7% per year over the same period. Read more of this post

Yoox Looking at Acquisitions to Boost Business, CEO Says; Richemont acquired the two-thirds of Net-a-Porter it didn’t own in 2010 in a deal valuing the retailer at $558m. Net-a-Porter reported latest full-year loss of $25.7m

Yoox Looking at Acquisitions to Boost Business, CEO Says

Yoox SpA (YOOX) Chief Executive Officer Federico Marchetti said the online retailer is looking at acquisitions to bolster its business, though it isn’t in talks currently to buy Cie. Financiere Richemont SA (CFR)’s Net-a-Porter. “There are no talks underway with Richemont,” Marchetti said today in a phone interview. Asked if there had been talks between the companies about Net-a-Porter, he said: “We wouldn’t be doing our job if we didn’t look at certain acquisitions in a selective manner and we will continue to do so.” Read more of this post

Samsung’s First Curved Smartphone Moves Toward Bendable Display

Samsung’s First Curved Smartphone Moves Toward Bendable Display

Samsung Electronics Co. (005930) will sell what it called the world’s first smartphone with a curved display as the largest handset maker moves toward devices with bendable screens in its competition with Apple Inc. (AAPL) The Galaxy Round, with a 5.7-inch (14-centimeter) display, will go on sale in South Korea today for 1,089,000 won ($1,011), Samsung said in an e-mailed statement yesterday. The 7.9-millimeter thick device will only be available in the Suwon, South Korea-based company’s home market and in one color: brown. Read more of this post

No more working at home for Hewlett-Packard employees

No more working at home for Hewlett-Packard employees

Interview with Nancy Koehn

Marketplace for Wednesday, October 9, 2013

Will Yahoo inspire your boss to ban telecommuting? In the early days of the digital revolution, the idea that anyone could workanywhere was enough to entice workers everywhere to request telecommuting options. But when Yahoo CEO Marissa Mayer announced a ban on working from home in February, it ruffled feathers in the corporate world. Critics slammed the decision saying it was inflexible, hurting long commuters and working mothers, among others. Now Hewlett-Packard CEO Meg Whitman is following in a similar fashion. Although she hasn’t put into place a outright ban, she announced that she wants everyone to work at the office saying, “During this critical turnaround period, HP needs all hands on deck.” Nancy Koehn, who teaches at the Harvard Business School, says there’s a strong case for the flexibility to be able to work from home. Read more of this post

Netflix Seen Bidding for DHX to Add Teletubbies

Netflix Seen Bidding for DHX to Add Teletubbies: Real M&A

Teletubbies, Inspector Gadget and Care Bears are making children’s TV show producer DHX Media Ltd. (DHX) ripe for a takeover. After adding these characters to its portfolio through two acquisitions in the last year, DHX now offers buyers a library of more than 9,000 half-hour TV show segments, including “Yo Gabba Gabba!” and “Madeline,” and associated merchandising rights. Sales at Canada’s DHX are projected to rise 73 percent over the next three years, one of the fastest growth rates among similar-sized North American entertainment companies, according to data compiled by Bloomberg. Read more of this post

How Twitter’s Business Model Is Just Like Broadcast TV — Only Worse; More dependent on ads than even the old media giants

How Twitter’s Business Model Is Just Like Broadcast TV — Only Worse

More dependent on ads than even the old media giants

October 4, 2013 at 4:24pm EDT

Peter LauriaBuzzFeed Staff

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In its IPO filing, Twitter describes itself as a “global platform for public self-expression and conversation in real time.” Casually, it is referred to as amicroblogging service or an internet social-messaging network. Given its business model of promoted tweets, some have said it is an advertising agency in disguise. But none of those descriptions is entirely accurate. What Twitter really is, from a business-model perspective, is a broadcast television network. Same goes for Facebook. It’s a shame YouTube has dibs on the “Broadcast Yourself” tagline because it actually lends itself better to one of these two social networks. Read more of this post

Comcast rolls out remote control accessed through Twitter

Comcast rolls out remote control accessed through Twitter

7:27pm EDT

By Jennifer Saba

(Reuters) – Comcast Corp announced on Wednesday that it developed a new remote control feature in partnership with Twitter that allows users to turn the channel through a tweet. The “See It” button enables viewers to tune in to a live or On Demand show like Sunday Night Football or “The Voice” through their set-top box or mobile device. In addition, the button will let users program digital video recorders or to buy movie tickets through Fandango. Read more of this post

Yahoo Japan Store Applications Jump After Masayoshi Son Scraps Fees

Yahoo Japan Store Applications Jump After Son Scraps Fees

Yahoo Japan Corp. (4689), the nation’s most-visited Web portal, said applications for new stores on its shopping site surged after billionaire Chairman Masayoshi Son eliminated fees for online retail outlets. About 10,000 applications were received from outlets and 16,000 from individuals, the Tokyo-based company said in an e-mailed statement today. There are currently 20,000 stores on its shopping site, it said. Read more of this post

Japanese Tech Billionaire Cannibals Erase $4 Billion in Son-Mikitani Fight

Billionaire Cannibals Erase $4 Billion in Son-Mikitani Fight

Billionaire Masayoshi Son, Japan’s second-richest person, mounted an attack on the next wealthiest, Hiroshi Mikitani, wiping out a combined $4.3 billion in their companies’ market values. Son, chairman of Yahoo Japan Corp. (4689), eliminated fees that the Internet search and shopping business charges for online stores. The move is a direct challenge to Mikitani’s Rakuten Inc. (4755), the country’s largest Internet shopping mall. Read more of this post

In Panasonic’s plasma exit, Japan’s TV makers come to terms with defeat

In Panasonic’s plasma exit, Japan’s TV makers come to terms with defeat

8:58am EDT

By Reiji Murai and Sophie Knight

TOKYO (Reuters) – Panasonic Corp’s move to close its last plasma television factory completes a painful reckoning that has all but killed off Japan’s TV industry, once the pride of the country’s post-war rise to technological and economic power. In a golden era that began in the 1970s, the country’s TV makers brought cutting-edge yet affordable technology and brand names like Sony, the Trinitron and Panasonic into living rooms across the West, at the expense of U.S. and European rivals. Read more of this post