The Next 10 Years

PRINT MAGAZINE TO BE SONALI DE RYCKER SHAKIL KHAN PHIL LIBIN FABRICE GRINDA DISTRIBUTED AT LEWEB 2013 ON THE FUTURE ON THE FUTURE ON THE 100-YEAR- ON REASONS OF FINTECH, OF MONEY OLD START-UP FOR OPTIMISM DECEMBER 10-12, 2013 E-COMMERCE AND DIGITAL MEDIA WWW.INFORMILO.COM

THE NEXT 10 YEARS

be made on demand at the local level, why do we need retail stores or warehouses? asks Jeremiah Owyang, Chief Catalyst at Crowd Companies. Some stores will mainly be used as a source of building block materials by consumers who make their own products in ad- joining labs. Others will become a kind of 21st-century version of photocopy shops, pumping out a specified number of widgets on demand instead of bound reports or marketing literature. • The lines between offline and online shopping will blur even further, predicts Sonali de Rycker, a general partner at Accel Partners in London. Mer- chandise and promotions will not only be consistent across all retail channels, adapting to consumers who want to use different channels simultaneously, the offers will be personalized according to a specific consumer’s purchase patterns, social network affinities, website visits, loyalty programs, and other data- mining techniques. • Affordable humanoid robots that can do useful things will start appearing in homes as early as 2014, promises Bruno Maisonnier, CEO and founder of France’s Aldebaran Robotics. • Every company in the future will be a software company because software will be the biggest asset needed to attract and retain customers, says For- rester Research CEO George Colony. • As a result all companies — whether they sell toothbrushes or insurance — will be competing with the Googles and Salesforces of the world to hire the best developers. • As market behaviors shift, every cor- NET 2023: PEERING INTO THE FUTURE poration will have to consider intro- ducing products as a service, tapping Here are a few of the speakers’ predictions: in life to take classes. the maker movement and crowd col- BY JENNIFER L. SCHENKER • In less than five years we will be able to • Virtual money will become more main- laboration to stay relevant, says Crowd buy a functioning Star Trek-like medical stream, promises speaker Shakil Khan, Companies’ Owyang. Unmanned drones delivering Amazon tricorder: a cellphone-sized device that an active angel investor and bitcoin parcels. 3D printing machines that can can diagnose most illness better than believer. All of these expected changes will bring produce a tiny heart valve to save a baby’s most doctors, predicts serial entrepre- • Driverless cars will become the norm; about radical disruptions, says Naam. life or a working gun. That future is al- neur and active investor Fabrice Grinda. with automakers from Tesla to Mer- Highly-paid and highly-educated pro- ready here. So what do the next 10 years • Grinda also predicts 3D-printed organs cedes offering such models, says Ramez on the Net have in store? based on your personal genetic make-up Naam, a computer scientist and author To find out, Informilo interviewed over will eliminate the organ shortage and of the science fiction novel Nexus. Raam CONTINUED ON PAGE 22 & 23 a dozen scheduled speakers at LeWeb, an rejection issues in the next 10 years. also lectures on energy, environment, annual Internet conference organized by • Education will continue to be democra- and innovation at Singularity Univer- Loic and Geraldine Le Meur. To mark tized, he says, with the best professors sity, where he serves as Adjunct Faculty. SEE INSIDE the conference’s 10-year anniversary the reaching hundreds of thousands of stu- • 3D printing and the maker movement THE TOP 25 HOTTEST focus this year is on what the Internet will dents, allowing people from everywhere will impact manufacturing and pur- START-UP COMPANIES look like in 2023. in the world, of every age, at every stage chasing. In a world where things can TO MEET AT LEWEB WHERE BUSINESS MEETS INNOVATION THE NEXT 10 YEARS

THIS MAGAZINE WAS PRODUCED BY INFORMILO, A MEDIA COMPANY THAT SPECIALIZES IN CONNECTING BUSINESS WITH INNOVATION. INFORMILO RUNS A NEWS SITE, WWW.INFORMILO.COM, AND PUBLISHES INDEPENDENT MAGAZINES CONNECTED TO MAJOR GUEST ESSAY Healthcare is becoming computerized; Star Trek-like he received the King of Siam in the late INDUSTRY CONFERENCES. medical tricorders should enter the market within 1850s, distributed silver utensils to his five years. Scanadu’s Scout vital-sign monitor is just guests, gold for himself and aluminum JENNIFER L. SCHENKER: EDITOR-IN-CHIEF what they will find most remarkable is not the start. for the king. Aluminum is very abundant. AUDREY MANDELA: CONTRIBUTING EDITOR D’ARCY DORAN AND ERIC SYLVERS: the euro crisis or the Iran and Afghani- It’s seven percent of the earth’s core, the CONTRIBUTING WRITERS stan wars, but the remarkable growth of third most abundant element in the Earth’s DESIGN: THEDESIGNSURGERY.CO.UK Africa. Over the past 10 years six of the self-driving vehicles. They currently are crust. The issue is that it does not occur The Case top 10 fastest-growing economies have cost-prohibitive but the technology that in natural form, which made it incredibly been African. Africa is rapidly becoming they use is already being deployed in the rare. Prices dropped dramatically in a few CONTENTS integrated in the global economy. mass market with self-parking systems years after 1886 when chemists discovered and automatic braking when traffic slows. electrolysis, which allowed them to sepa- 01 23 24 THE NEXT 10 YEARS for Optimism TRANSFORMING PUBLIC SERVICES In fact Tesla expects to have a car that can rate pure aluminum from its ore. THROUGH TECH drive itself in 90% of situations in the next A similar process is under way with so- 02 03 THE CASE FOR OPTIMISM three years! lar energy. It’s following a slow Moore’s Internet entrepreneur and investor Fabrice Grinda, Before I talk about the changes that up- Communications are also rapidly law curve with solar power improving 04 START-UP INVESTING REACHES NEW HIGH a scheduled speaker at LeWeb. Grinda, a native of coming technologies are going to bring evolving. It makes perfect sense for 14% per year in terms of energy produc- France, has successfully launched and invested in to this world and why they make me ex- Google to be working on glasses given that tion per dollar invested. In 1977, solar cells 05 SONALI DE RYCKER businesses in the U.S., Europe, Asia and Latin America. traordinarily optimistic, I want to point cell phones seem bound to disappear. We cost upwards of $70 per Watt. In 2013, that ON THE FUTURE OF Most recently, he co-founded and helped run OLX, out existing low-hanging fruits in terms of but with Moore’s law today’s expensive few schools have tried this with extremely are making great progress in brain read- cost dropped to $0.74 per Watt, a 100:1 im- FINTECH, E-COMMERCE which claims to be the largest free local classified productivity improvements by simply ap- supercomputer is tomorrow’s $100 cell promising early results. Education is also ing. We now have low-resolution scan- provement. In fact, the costs dropped 50% AND DIGITAL MEDIA site in the world, with a presence in over 90 countries plying existing technologies and processes phone. We are less than five years away in the process of becoming scalable, with ners than can scan images from people’s in one year in 2011 driven by competition and 50 languages, and more than 150 million unique to areas of the economy that have yet to from having a functioning Star Trek-like the best professors reaching hundreds of brains. We can project our thoughts and between Chinese manufacturers. Solar 06 FUTURE OF RETAIL visitors per month. He is also a prolific angel investor be touched by them, especially in public medical tricorder: a cellphone-sized device thousands of students as many classes on make them appear on screen. This cur- is already at grid parity in remote places. with over 100 active investments. Prior to OLX, Grinda 07 18 RUSSIAN E-COMMERCE services, health care and education, which that can diagnose most illness better than the top MOOCs (Massive Open Online rently requires expensive and unwieldy Based on current trends it will be at grid was the founder and CEO of Zingy Inc., a wireless media combined account for over 50% of GDP in most doctors. Courses), Udacity and Coursera, have hardware but that is also set to shrink parity in sunny places in the U.S. by 2025 08 09 BRANDS AND SOCIAL MEDIA company focused on the Americas which was sold all Western countries. Education is also on the cusp of a revo- shown. Education is being democratized and become cheaper because of Moore’s and most of the world by 2035. When that in 2004 for $80 million. In 1998, he co-founded and The current environment of austerity lution. If we transported Socrates forward and is transforming itself in a lifelong law. Google Glass will probably evolve to happens investments in its deployment 10 FOCUS ON FINTECH was CEO of Aucland S.A., a top auction site in Europe. has been leading states to want to do less in time 2,500 years the way we teach our endeavor as people from everywhere in use lasers to print on our retina, taking will reach tens of billions of dollars. In Before that Grinda worked as a business consultant with less. However, we have an extraor- kids is one of the few things he would rec- the world, of every age, at every stage in orders from our mind control rather than other words, even excluding disruptive 11 FUTURE OF MONEY for McKinsey & Company. He graduated Summa Cum dinary opportunity to do more with less. ognize: a teacher, of varying quality, spew- life can take classes on the likes of Khan by voice. This technology will also give innovation like fusion or radical increases Laude from Princeton University in 1996 and was 12 13 TOP 25 START-UPS TO MEET Estonia in particular is paving the way for ing facts at students, of varying quality. Academy or Code Academy. us the potential for telepathy as we will in solar efficiency, without subsidies or awarded the Halbert White prize, given to the most AT LEWEB others to follow using existing technolo- Some schools are now experimenting with Transportation is also radically chang- be able to send our thoughts directly to government action, we will transition away distinguished economics student, as well as The Wolfe gies. Over 24% of people voted online in using gamified learning software to create ing. Every year in the U.S., 5.5 billion hours others if they want to receive them. Ul- from a carbon-based economy by the mid- 14 LIVING (AND RUNNING A Balleisen memorial prize, awarded for best thesis. START-UP) WITHOUT FEAR the 2011 elections. Ninety-three percent of a challenging personalized curriculum for and 2.9 billion gallons of fuel representing timately the glasses or intelligent contact dle of the 21st century. BY FABRICE GRINDA Estonians file personal tax returns online. each of their students with continuous $121 billion in economic value are lost to lenses will probably disappear altogether In fact the marginal megawatt should 15 CREATING A 100-YEAR OLD Estonians can set up a company online testing. The students are more engaged congestion. Over 1.2 million lives are lost to as we will find a way to send images and become so cheap that we should be in a START-UP in minutes. Parents can check their chil- because they have challenging material accidents each year globally on top of the thoughts directly to our brains. All this position to “waste” it — the same way we We live in difficult times: financial crisis, landscapes across the country as a whole. dren's homework, grades and attendance at their level. Teachers are freed from be- injuries and economic costs imposed by 50 may sound sci-fi but it’s already in the waste the computing power in our cell 16 LET 1000 START-UPS BLOOM sovereign debt crisis, euro crisis, Syrian Despite 40 years of record consumption records online. All medical records are ing mere fact-spewing machines and can million accidents. We originally thought labs and will be part of our reality within phone or computer. Think about it. Com- conflict, global warming. We are bom- of oil and natural gas we now have more online. They have a centralized database start playing the role of personal coach. A we would have to rebuild our entire infra- 15 years. Remember that 15 years ago few puting power was so expensive we had to 17 Q & A WITH FACEBOOK’S CHRIS DANIELS barded non-stop with despairing news. reserves than we did then. The way we that pulls information from the various structure to support self-driving cars, but could conceive that we would all have limit access to it. Now it’s so ubiquitous we In Europe, the mood is morose and the work and live has been profoundly trans- healthcare providers to create a common Google has demonstrated that we already smartphones which we would use as gen- use it to play Angry Birds or check Face- 18 19 THE FUTURE OF ROBOTICS prospects seem dire. The general con- formed by computers, the Internet and electronic health record for each patient. have the technology to make autonomous eral computing devices. This is merely the book. Its very cheapness has unleashed an sensus is that things are going to be bad; mobile phones. next step of this evolution. extraordinary wave of innovation. 21 HOW ETORO SCALED the only conversation is around how bad If we take a further step back, we can UPCOMING TECHNOLOGIES WILL MAKE Energy is also slowly being revolution- The same will happen with energy. things will get. see that over the last 100 years economic LIFE EVEN BETTER New technologies will make life even better: 3D ized and its revolution is one of the things Once it’s cheap most of our other prob- THE INFORMATION CONTAINED IN THIS PUBLICATION WAS Well, I have good news for you for the downturns, be they recessions that occur printing is revolutionizing manufacturing, and could making me most optimistic about the lems go away. The idea that we will face COMPILED USING ETHICAL JOURNALISM PROCEDURES. consensus is dead wrong! We are in fact every few years or bigger crises such as Beyond the application of existing tech- soon be used to print organs. The images show a future of humanity. Before I explain the a fresh water shortage is also ludicrous. NO LEGAL LIABILITY CAN BE ACCEPTED FOR ANY ERRORS. facing a wonderful future and I want to the great depression, as painful as they nologies to improve current processes, gear differential 3D-printed from a computer model profound changes happening in energy, let The earth is 70% covered by water. The NO PART OF THIS PUBLICATION MAY BE REPRODUCED at MatterHackers, a U.S. start-up, and a 3D-printed WITHOUT THE PRIOR CONSENT OF INFORMILO. explain why. Let me take you back in time are while we live them, barely register there are new technologies that are emerg- me provide an aside as to why Malthusians issue is once again accessibility as only to the late 1970s for that decade seemed to in a background of unabated economic ing that are going to revolutionize almost bionic ear. are always wrong. They project consump- 1.3% of it is surface fresh water. However mark the beginning of the end of western growth. In fact over the last 100 years hu- every sector of our economy including tion and costs linearly into the future, not in a world of unlimited energy it’s easy to civilization. OECD countries were suf- man lifespans have doubled from 40 to 80, manufacturing, health care, education, taking into account the disruptive potential desalinate salt water. In fact we may not fering from stagflation with inflation and average per capita income has tripled and communications, transportation, energy, of technology. The Club of Rome predic- even need to wait that long as new innova-

unemployment above 10%. We had suf- childhood mortality has divided by 10. The food and water. tions about our running out of oil and gas tive devices like the Slingshot are coming SUBSCRIBE TO INFORMILO fered from two oil shocks. The U.S. had lost costs of food, electricity, transportation 3D printing is not only revolutionizing were completely off because they did not on stream that can generate 1,000 liters of Vietnam. The Shah had fallen in Iran. The and communications have dropped 10- to prototyping, it is increasingly being com- factor in the innovations in deep sea drill- pure water per day from any water source, Soviet Union had invaded Afghanistan. a 1,000-fold. Global literacy has gone from bined with traditional manufacturing to ing and fracking — innovations that were even saline or polluted. INFORMILO IS THE OFFICIAL Dictatorships were the norm in Eastern 25% to over 80% in the last 130 years. make end products. Twenty-five percent accelerated when prices rose enough to Once fresh water is abundant food also MEDIA PARTNER OF SOME OF THE Europe, South East Asia, Latin America We have redefined what poverty means. of 3D printer output is production-ready justify investing in them. becomes abundant as you can grow crops INDUSTRY’S TOP INVITATION-ONLY and even southern Europe. The Club of Today 99% of Americans in poverty have items. It also has the potential to revolu- The idea that we are going to run out in the desert — and that’s not taking into EVENTS. WE PUBLISH INDEPENDENT Rome had made dire predictions that the electricity, water, toilet and refrigerator. tionize medicine as the printing of a mini of energy is ludicrous. We are awash in consideration an agriculture productivity PRINT MAGAZINES THAT ARE HANDED OUT TO ATTENDEES OF world would run out of oil, coal and many Ninety-five percent have a television. kidney demonstrated. 3D-printed organs it. Every 12 minutes we receive enough revolution that could come from urban THE CONFERENCES IN PAPER FORM, natural resources within 40 years. Eighty-eight percent have a mobile phone. based on your personal genetic make-up energy from the sun to meet all of our vertical farms. AND DISTRIBUTED AS PDFS PRIOR No one predicted that over the next Seventy percent have a car and air condi- will eliminate the organ shortage and re- energy needs for an entire year. As Peter As people we are truly blessed to be liv- TO THE EVENTS. 40 years there would be democracies tioning. The richest people 100 years ago jection issues in the next 10 years. Diamandis, who runs the X PRIZE Foun- ing in this amazing time. As entrepreneurs across Latin America, Eastern Europe could only dream of such luxuries. Medicine is on the verge of a transfor- dation, likes to say, the issue is not scarcity, and investors we have the privilege of help- and Southern Europe; that inflation and We are also living in the most peaceful mation. IBM’s Watson is already better it’s accessibility. It’s one we have faced ing create this world of tomorrow. We will SUBSCRIPTIONS IN BOTH PAPER AND unemployment would fall dramatically; time in human history — not just of recent at diagnosing certain types of cancers time and time again. In the 19th century pick up the mantle left by our forefathers PDF FORMAT ARE AVAILABLE FOR AN that we would see the greatest creation of history, but in the history of humanity. than doctors are. This makes sense as aluminum was the most expensive metal and create a better world for all; a world ANNUAL FEE OF €1,000. FOR MORE wealth in the history of humanity as one We are truly living in extraordinary times. computers have the patience and eye for in the world. It was more valuable than of equality, of opportunity, and of plenty. INFORMATION PLEASE EMAIL billion people came out of poverty. Six Improvements of this magnitude are detail to go through every millimeter of sliver, gold or platinum. That’s why the [email protected] hundred fifty million came out of poverty continuing today. When historians look an MRI scan or x-ray. Granted Watson tip of the Washington Monument is in in China alone, completely changing urban back at these past 10 years I suspect that cost $21 million to build and develop, aluminum. It’s why Napoleon III, when

10-12 DECEMBER | 2013 INFORMILO.COM | LEWEB 2 WWW.INFORMILO.COM | LEWEB 10-12 DECEMBER | 2013 3 WHERE BUSINESS MEETS INNOVATION THE NEXT 10 YEARS

jump, CB Insights decided to take a look monthly and annual basis as an early services are being developed, delivered hold is often eight years, and, as such, even 2013 Marks A Five-Year High at who the most prolific Silicon Valley indicator of evolutions in the private Accel’s Sonali de Rycker and consumed. our more successful companies constant- seed investors are and how successful investments market for European tech, ly have to rethink how they evolve and they are at getting their tech portfolio media, and telecom services compa- On The Future of Fintech, stay on top of their game. IAC has pro- In Tech Start-Up Investments companies follow-on financing and past nies. The HTI is a derivative index, Q How is crowdsourcing vided me with great insights into how to the Series A Crunch. The table to the which measures both the actual level changing funding? approach innovation in multiple ways. In Europe and Silicon Valley bottom left shows the top 10 seed-stage of investment activity in the European E-Commerce and Digital Media investors, ranked by number of unique tech sector and the level of reporting A There are two major sources of Silicon Valley technology companies in (“the hype factor” — even though each crowdfunding. One is essentially a Q You recently helped SVC2UK In Silicon Valley and in Europe, 2013 is of 2013 witnessed the highest number of which each investor made investments transaction is only recorded once). form of debt or customer funding, which (Silicon Valley Comes 2 The on pace for a five-year high in venture deals and dollars in that period. According in 2012. (Companies receiving multi- Go4Venture has also compiled a list works very well for products in hardware UK) choose the 100 UK companies capital and funding activity, accord- to CB Insights, the Internet sector contin- ple rounds from the same investor are of top investors in Europe in 2012; this or content as it helps with customer adop- which have the potential to reach ing to research released recently by ues to lead in terms of deal share, but the counted only once.) lists includes investments made at all tion and provides market feedback. It is £100 million in revenue within three CB Insights and Go4Venture Advisers. mobile sector looks set for a record high, Go4Venture Advisers' figures show stages in companies' funding. still early for the other types of platforms to five years. Why hasn't the UK The charts to the left, below, come taking nearly one in every five deals in the even stronger growth in venture in - It would seem that there is no bet- that offer equity investing, and the jury is created more global billion-pound- from CB Insights’ Silicon Valley Tech Valley so far this year. vestments in Europe. The top chart ter time to start up and to scale high- still out for whether the wisdom of plus Internet companies? Venture Capital Almanac. The first chart Nearly one in every three of those deals on the right, below, shows investment tech businesses. crowds is a proxy for professional judg- shows that over $31.5 billion has been occurred at the seed stage. Back in 2009, activity measured using Go4Venture’s ment. In my view, anything that encour- A I think this is where the rear-view invested into Silicon Valley-based tech seed activity in the region made up just European Tech Headline Transactions ages first-time entrepreneurs and allows mirror tells a very different story startups since 2009, and the third quarter 7% of all tech deals. Given the sizable Index ("HTI"), which is compiled on a access to capital in Europe is very positive. than what the future holds. Historically, it was possible to build substantial businesses focusing on the UK alone. First- SILICON VALLEY FINANCING HISTORY: TOTAL VALUE AND NUMBER OF 2008-2013E HTI Q How is technology changing generation success stories like Money- the future of retail? supermarket and Rightmove were and INVESTMENT DEALS AND DOLLARS TRANSACTIONS IN EUROPE (AS OF 31 OCTOBER 2013) still are great examples of this. In other A Nearly 20 years into it, e-commerce markets like Sweden and Finland — still represents less than 10% of the which have produced successful global 934 4500 600 retail market. However, the web and, companies like QlikTech, Supercell, +23% 867 4000 more and more, the mobile web are the Rovio and Spotify — the domestic mar- 500 starting points for most shopping experi- kets are very small, pushing companies 723 8.91 3500 +27% ences. The real challenge now is how to to go international very quickly. I think 701 3000 400 think about a consumer in a 360° way — we are now at a point where global lead-

558 Total Number of Transactions hyper personalization that takes into ac- ership is very much the objective of most 2500 count browsing across devices, location ambitious entrepreneurs. We see this 459 300 2000 and in-store behavior. A lot of companies with companies like Wonga, MindCandy have started to crack pieces of the puzzle, and King.com. This has gone hand-in- 1500 200 whether in payments, couponing or ena- hand with the evolution of the ecosystem. 1000 Sonali de Rycker of Accel Partners is a scheduled speaker at LeWeb Paris. bling identification technology, etc. Ulti- Often, a successful ecosystem boils down 100 mately, it is all about data. Who is going to a few great companies setting the ex- 4.43 4.73 7.66 8.00 6.68 500 2.315 1.624 2.345 2.508 3.184 3.902 to know the most about you to enable the ample and fuelling the next generation

Total Value Transactions (€ billion) Transactions Value Total 0 0 retailer to offer something that is locally with talent and capital. In addition, Lon- Sonali de Rycker, a scheduled speaker of London across a number of sectors. available and highly compelling based on don is a fertile place to ramp and scale a at LeWeb Paris, an annual Internet con- We continue to be bullish on companies what you have been searching for? Inter- business, regardless of where it has been 2009 2010 2011 2012 2008 2009 2010 2011 2012 ference, has been active in the European in the alternative credit space. We were estingly, it is the incumbents like Google founded, further contributing to the de- *2013E venture business for 14 years, focusing early investors in Wonga, a pioneer in and eBay/PayPal who are in a really good velopment of the ecosystem. That is why Q1 -Q3 2013 on consumer Internet and digital me- applying big data to lending. There is place to take a crack at this given their so many successful European Internet Investments ($B) Projected Investments ($B) Deals Total Value of Transactions (€mn) Total Number of Transactions dia sectors investments such as Avito, also significant opportunity in SME access to millions of customer accounts. businesses move here. HouseTrip, KupiVIP, Wonga, Seatwave. credit, where, because of regulation and Although new business models are being com and Spotify. Prior to Accel, she balance sheet restructuring, banks have invented, in my view, it is very unclear Source: CB Insights Source: Go4Venture Advisers HTI Database *Estimated by grossing up data for YTD 31 October was a partner at Atlas Venture in Lon- retrenched from the market. We have whether this will be a game that will ul- Q Are you bullish on Europe? don. She started her career at Goldman recently invested in Funding Circle, a timately be dominated by start-ups. Sachs in New York City and is credited London-based online marketplace for A There has never been a more excit- MOST ACTIVE VC INVESTORS IN SILICON VALLEY TECH TOP 10 INVESTORS IN EUROPEAN with co-founding the investment bank’s business loans, which raised a $37 mil- ing time to start a company in Eu- business development group, a unit set lion series C investment led by Accel Q You are on the board of IAC, rope, including Israel. We have been START-UPS, 2012 START-UPS, 2012* up to source and execute acquisitions of Partners in October. the American Internet waiting for some time for our private smaller, fast-growing businesses for the In fintech, we’re watching the shift company with over 50 brands across companies to get onto the world stage and Fortune 50. De Rycker, who was born in the infrastructure being deployed for 40 countries. How does this help you are now seeing a snowball effect: look at and raised in Bombay, graduated mag- financial institutions, whether banks, understand trends in digital media? companies like QlikTech, Supercell, RANKING INVESTOR RANKING INVESTOR COUNTRY na cum laude in economics from Bryn fund platforms or exchanges. After the Wonga, Spotify, Mind Candy, Criteo, Mawr College in the U.S. and earned an revolution in electronic trading, es - A IAC is a successful business that is Waze and Wix. The time for Europe has 1 Andreessen Horowitz 1 Index Ventures Switzerland MBA from Harvard Business School. pecially equities, other segments are a portfolio of distinctive digital more than come, and it will only get more 2 SV Angel 2 Accel Partners UK She recently spoke with Informilo’s undergoing major change. Our recent companies, many of which are category interesting as the next generation of en- 3 New Enterprise Associates 3 Balderton Capital UK Jennifer L. Schenker about the future investment in Calastone, a leader in the leaders in their own right. The company trepreneurs see the opportunity and suc- 4 Greylock Partners 4 IdInvest France of financial services, e-commerce and fund automation space, rides that paris playing an important role in a number cess that is achievable. 5 500 Startups 5 Investments AB Kinnevik Sweden digital media and the evolution of the ticular trend. of sectors from search (Ask and Mind- 6 Kleiner Perkins Caufield & Byers 6 Access Industries U.S. European tech sector. Finally, risk management is a hot topic spark) to dating (Match and Tinder) and at the minute given the regulatory scru- online video (Vimeo). The company is a 7 First Round Capital 7 Northzone Ventures Sweden tiny. Institutions and hedge funds are great example of how to innovate in dif- 8 Accel Partners 8 Greylock U.S. Q How is tech disrupting the rethinking distributed risk through the ferent cycles and sectors. It has done this 9 Sequoia Capital 9 Goldman Sachs U.S. future of financial services? use of big data. Accel was first investor in from within — the meteoric success of 9 Khosla Ventures 10 Holtzbrinck Ventures Germany OpenGamma, which offers open-source Tinder is a great example — but also Note: Based on the number of unique Silicon Valley technology companies in which each investor made investments during 2012. *Includes investors that participated in funding transactions totalling more than €100 million in 2012 A London is an international hub for analytics and a risk management plat- through a very successful acquisition pro- Companies receiving multiple rounds from the same investor are counted only once. financial services, so it is not a co- form for the financial services industry. gram for which it is very well regarded in TO ADVERTISE IN INFORMILO

Source: CB Insights Source: Go4Venture Advisers HTI Database incidence that we are seeing some re- In our view, we are at the very beginning the market. In our quest to build large, EMAIL [email protected] ally interesting innovation coming out of a fundamental change in how financial durable businesses, Accel’s investment

12-13 NOVEMBER | 2013 INFORMILO.COM | LEWEB 4 WWW.INFORMILO.COM | LEWEB 10-12 DECEMBER | 2013 5 WHERE BUSINESS MEETS INNOVATION THE NEXT 10 YEARS The Future of Retail Russia’s Red-Hot Reinventing The In-Store Shopping Experience E-Commerce Market

Real-world stores have to get access to data about consumers if they are ever going to Will See Explosive compete with online.” As the lines between online and offline blur, shopkeepers need to demonstrate Growth In The Next their value-add. For example, say you are shopping for a new pair of jeans online. At the last minute you decide not to buy because you are not sure how they will fit. 10 Years Once Beacon comes along a shopkeeper could be alerted to the fact that you were looking at jeans online last night when you BY JENNIFER L. SCHENKER walk into the store and the shopkeeper could immediately offer to help you find that same pair — and your size — and es- With a skyrocketing number of Inter- fastest-growing Internet market. cort you to the fitting room. “Beacon will net users, but a still under-developed Ozon, which started out in 1998 as an allow stores to offer customers the experi- commercial environment, the opportu- online bookseller, reported revenue of ence their grandmother would have had,” nity to build phenomenally-successful nearly $500 million last year, from sales says Lunn. “A shopkeeper at her local store domestic e-commerce businesses in of everything from home appliances to would have known what kind of bread and Russia is huge. airline tickets. Most recently it added flowers she liked and offered a customized, Just under half of the Russian popula- shoes, buying Sapato, Russia’s version personalized experience. It should be as tion — some 61 million people — were on- of Zappos. But the company needs to easy as shopping online but with a human PayPal is promising shoppers that by next year they line in Russia in 2012, already the largest raise more money to fulfill yet another touch. Otherwise what is the point of going will be able to pay at stores hands-free, thanks to online community in Europe and grow- ambition: “to be the e-commerce delivery to the store when you can do everything Beacon, an add-on technology for merchants based ing rapidly, according to a 2013 study by company,” Ozon CEO Maëlle Gavet, a on the Internet?” on Bluetooth low energy, which enables connected comScore. And Russians made $13 billion scheduled speaker at LeWeb Paris, said At LeWeb, PayPal will be demoing a fu- devices to communicate with each other seamlessly, in online purchases in 2012, with such in an interview with Informilo. turistic view of bricks and mortar stores. while keeping the energy consumed low. Beacon sales expected to grow to $23 billion by Ozon, which raised $100 million from Personal shoppers will demonstrate Bea- comes with an adapter that allows it to plug into regular 2014 and as much as $50 billion by 2020, backers such as Index Ventures in 2011, John Lunn, global director of PayPal developer relations (PHOTO: Kevin Abosch ) con’s customer relationship management wall sockets in stores. For consumers who opt in, according to a June report prepared by is looking to raise another $100 million in abilities, then allow LeWeb attendees to simply walking into a store will trigger a vibration or East-West Digital News (EWDN). order to build out its O-Courier distribu- select different t-shirts and use virtual sound to confirm a check-in within milliseconds; their tion network. photo will then appear on the screen of the point-of- BY JENNIFER L. SCHENKER try-on mirrors to test the fit. Then, using The investment will be worth it be- a direct-to-garment printing machine, the sale system so that they can be greeted by name. cause “there is going to be a shift from selected t-shirt will be manufactured on Shopkeepers and store employees will know your Ozon, which started out in e-commerce being a nice add-on to a key Earlier this year PayPal announced confirm a successful check-in within mil- the stand in real time, says Lunn, who will preferences and what you have been searching for 1998 as an online bookseller, pillar of consumption in Russia,” says that it is teaming up with astronauts liseconds; their photo will then appear on help man the stand. online, so they can better assist you. Paying will only Gavet, a native of France who has been Ozon CEO Maëlle Gavet, one of several “digital women influencers” scheduled to speak at LeWeb in Paris to create an intergalactic currency the screen of the point-of-sale system so The demonstration on PayPal’s stand require a verbal confirmation: no wallet, no credit card, reported revenue of nearly living and working in Russia non-stop December 10th-12th. and no requirement to even touch your phone. for commercial space travelers. “One that they can be greeted by name. Paying takes into account the notion of pop-up $500 million last year, from since 2009. thing is clear — we won’t be using cash will only require a verbal confirmation: no stores, which are expected to become more In 2012, Russian online retail account- in space,” PayPal President David Mar- wallet, no credit card, and no requirement prevalent. Already e-commerce sites like sales of everything from home ed for a total market volume of nearly 400 and that PE firm Baring Vostok Capital It is not yet clear who is going to step cus, a scheduled speaker at LeWeb, to even touch your phone. Fab have opened bricks and mortar stores appliances to airline tickets. billion rubles ($13 billion), including 290 Partners was pulling out as an investor. up with funding. Ozon needs another said at the time. “PayPal has already People are pretty satisfied with paying by with very little stock. The idea is to give them pay for goods and services auto- Most recently it added shoes, billion rubles ($9.5 billion) spent on physi- Gavet, who appeared on a panel in large injection of cash because in Russia pushed payments into the Internet, credit card, so there is little motivation for people the chance to see the designs up matically from their PayPal accounts. cal goods, according to Data Insight. This Moscow moderated by Informilo Editor- the battle for the burgeoning e-commerce onto phones and across terrestrial consumers or merchants to move to a dif- close and then order them in the right size And, in keeping with its stepped-up ef- buying Sapato, Russia’s version volume represents approximately 2% of in-Chief Jennifer L. Schenker on Novem- market is still very much about logistics. borders. We look forward to pushing ferent payment mechanism. The challenge or quantity and have them delivered to forts to work with developers, PayPal is of Zappos, for $45 million in total Russian retail sales, meaning 98% of ber 26th, the day the Sistema news broke, Precision logistics helped Amazon’s payments from our world to the next, is to find something that is easier than the their home or a destination of their choos- counting on independent coders to help the market is still in play. emphatically denied that Baring had any sales skyrocket in the late 1990s as it be- and beyond.” current system to entice people to switch ing within the hour. it figure out what kind of apps to build on 2012. But the company needs Heavy investment in the nuts and bolts intention of pulling out. Gavet confirmed came the world’s largest online retailer. While the sky is no longer the limit for its to a new way of doing things. PayPal thinks PayPal is prepared for such a future. In top of the Beacon platform. to raise more money to fulfill of logistics has been key to Ozon’s success that the company is fund-raising but said Amazon has been much copied to the aspirations, PayPal will be demonstrating a the company may have cracked it with October eBay announced an agreement In this new omni-channel world, merchan- to date and significantly more is needed if she was not able to comment on ongoing point that clever logistics and quick deliv- far more down-to-earth vision of the future Beacon, which requires “doing nothing,” to acquire Shutl, the UK-based market- dise and promotions will not only be con- yet another ambition: “to be the company is to double the number of talks with potential investors and insisted eries are now the norm for online retailers of retail based around a Bluetooth low- says John Lunn, global director of PayPal place that uses a network of couriers to sistent across all retail channels, adapting the e-commerce delivery its distribution points to between 4,000 that much of the information in the Rus- in the United States and Western Europe. energy technology called Beacon at LeWeb, developer relations. deliver local goods within an hour of to consumers who want to use different and 5,000, covering every Russian city sian press article published on November But for Russian e-tailers it is less about an annual Internet conference in Paris. “It is a lot easier and the consumer is still an online purchase. The Shutl service channels simultaneously; the offers will be company,” Ozon CEO Maëlle with more than 50,000 inhabitants, 26th (and later picked up by the Western the perfectly-run warehouses pioneered PayPal is promising shoppers that by in control,” he says. will be extended to offer the successful personalized according to a specific con- Gavet, a scheduled speaker says Gavet. media) was factually inaccurate. by Amazon that facilitated quick and next year they will be able to pay at stores The motivation for merchants is clear. “eBay Now” experience. This service, sumer’s purchase patterns, social network Ozon’s current fund-raising has be- The need to make heavy investment cheap deliveries and more about the hands-free, thanks to Beacon, an add-on Today legacy cash register systems are currently live in the U.S., allows users affinities, website visits, loyalty programs, at LeWeb Paris, said in an come the source of much speculation. in logistics as well as marketing and cus- old-fashioned logistics of trucks, roads, technology for merchants based on Blue- not Internet-connected, putting bricks and to have items shipped to their current and other data-mining techniques. interview with Informilo. The Next Web ran an online article in tomer service has made e-commerce in delivery men and pick-up points. What’s tooth, which enables connected devices to mortar stores at a competitive disadvan- GPS locations. But we’re not there yet. Before we figure June predicting that the company would Russia more suitable for private equity more, Russians prefer to pay in cash for communicate with each other seamlessly, tage. “When you shop online a site knows PayPal is also partnering with order- out how to get money to Mars and send it try to go public in the U.S.; in Novem- investors rather than venture capitalists, goods ordered online, so Ozon has had while keeping the energy consumed low. every detail about you: who you are, where bird, a Berlin start-up that offers an back to earth companies like PayPal need Barriers to enter Europe’s largest In- ber news that Ozon is looking to raise Dmitry Chikhachev, a managing partner to build out sales points where online (See the photo of Beacon, which comes you live, where items are shipped to, what iPad-based point-of-sale service to to first help real-world stores better serve ternet market are high, allowing local $100 million was leaked by the Russian at Runa Capital, a Moscow-based ven- acquisitions can be paid for and picked up. with an adapter that allows it to plug into items you look at on their site and where merchants, for a check-in service that their existing customers. players to dominate. But the price tag for press; and on November 26th a Russian ture firm, said during the November 26th About 75% of Ozon.ru’s sales are paid for regular wall sockets in stores.) For con- you go after you leave,” says Lunn. “In a will recognize users when they walk in succeeding is also high. Just ask Ozon, newspaper reported that AFK Sistema, Moscow event, which was sponsored by in cash with the rest split between credit sumers who opt in, simply walking into real-world store you could enter every to participating businesses, and then, Russia’s version of Amazon, the largest a Russian conglomerate owned by one Pictet, a private Swiss bank, and moder- a store will trigger a vibration or sound to day for a week and they wouldn’t know. using those customer profiles, to let online retailer in Europe’s biggest and of the oligarchs, was in talks to buy Ozon ated by Informilo. CONTINUED ON PAGE 20

“For a long time, fans of the brand would tear print what we created to other people, so we ads out of a magazine and put them on their wall,” want the peer recognition.” says Mathias Westphal, Absolut Vodka’s Global Like building bricks, each interaction Adding Social Media Brand Director. “Now, it’s about creating the kind in social media should build on another, of interesting content that they want to put on their Silberbauer says. “It should not be that Facebook wall instead. The main idea of creating there’s one campaign, then it’s on and something interesting that is an expression of our off. It’s more like building a continuous brand hasn’t changed; however, the places that our long-term engagement,” he adds. “We are Into The Marketing Mix fans share their love of the brand has.” all about creating connections and then building those relationships. It’s not an Social media strategist Ramon De Leon, a scheduled heart, it will get shared,” De Leon says. overnight thing, it’s a long-term thing. It speaker at LeWeb in Paris. Putting yourself in the customer’s crosses generations.” shoes is crucial to any successful social Brands also need to acknowledge that media strategy, he explains, and adding social media conversations about them the power of visual storytelling through will take place with or without their par- and the social web in particular — is trans- video or photos is invaluable to brands. ticipation. “It’s not an option that’s up forming marketing. In a survey released To introduce the Domino’s Pizza Tracker to the brand,” says Silberbauer, whose earlier this year by Adobe, 76% of market- app, which allows customers to monitor brand’s popularity on social media is due ers said their jobs had changed more in 24 the progress of their order from the oven not only to company-led campaigns but months than in the past 50 years. Amid to their door, De Leon shot a series of also to viral fan-generated content that this change brands are racing to harness videos showing how the app could solve racks up millions of views. “Your brand the new opportunities for engagement, real-life problems like being able to order is already on social media anyway. You even if they are struggling to pinpoint the on public transit on your way home or can only choose as a brand if you want to exact return on investment. Against this knowing when to meet a driver in your be there or not. And if you’re not there backdrop, De Leon has emerged as a social building lobby. “That’s when it comes someone else will represent you.” media soothsayer showing how brands can from the heart because you’re incorporat- With social media, the nature of the re- balance big data with instinct. ing empathy,” he says. lationship between brands and consumers “Always remember we’re dealing with Similarly at LEGO, a brand that is often hasn’t changed, but the location has, says a human being,” De Leon says. “We can’t cited as a social media leader, the founda- Mathias Westphal, global brand director have a computer, we can’t have statistics, tion of its social media strategy is to “listen for Absolut Vodka. we can’t have an app trying to dictate what and focus on the human element,” says “For a long time, fans of the brand we should be doing.” Lars Silberbauer, LEGO’s global director would tear print ads out of a magazine and of social media. put them on their walls, ” he says. “Now, BY D’ARCY DORAN “There are two needs that are extreme- its about creating the kind of interesting ly important. It’s not just to do with LEGO content that they want to put on their Facebook and Twitter accounts, along executives said they were not informed Digital — and the social web in — it’s basic human nature — we want to Facebook wall instead. The main idea of with other social media, are considered about or engaged with the firm’s social particular — has transformed play together. We also want to show off creating something interesting that is an essential tools when setting up a new media strategy; 52% said the company did expression of our brand hasn’t changed, business — kind of like fax machines not have a detailed road map for what the marketing. In a survey released however, the places that our fans share were around 30 years ago, says social social media strategy should do — or not earlier this year by Adobe, 76% go on review sites and start sharing their their love of the brand has.” media strategist Ramon De Leon, a do — in the next year; 66% said they did negative experience. What makes it even HALF OF EXECUTIVES ARE INFORMED, ENGAGED, Moving into social media to be with scheduled speaker at LeWeb in Paris. not have clear metrics that associate social of marketers said their jobs had worse is if the brand has outsourced their Absolut’s target market was essential, he But when you ask people why, the ma- activities with business outcomes; and changed more in 24 months social voice, their social monitoring, now AND ALIGNED WITH SOCIAL STRATEGY says. “Since a large part of this target grew jority struggle to respond, saying either 73% said employees were not aware of or you have even another layer of people up as digital natives, we knew that the “just because,” or “everybody has one” trained on how to use social media in both than in the past 50 years. Amid scratching their heads.” old model of placing our ads on the back or they simply shrug their shoulders. their jobs and personal lives in ways that this change brands are racing to Decision makers need to realize they Risk management around social media is well understood by Legal/ of magazines wouldn’t work anymore, If you asked the same question about will positively impact the organization. should react as they would inside their Compliance, and risk mitigation/crisis management policies and 65% therefore our media strategy took a very a fax machine in pre-Internet days the While others have struggled to come harness the new opportunities for store, he says. “Follow the same protocol processes are in place throughout the organization. close look at where and how millennials reasons for having one were obvious: it to grips with social media and what it engagement, even if they are still and say this person brought this very seri- consume media, and put the focus there.” Roles, responsibilities and governance of people directly and indirectly was an alternative to sending something means for their business’s bottom lines, ous concern, posted it on our wall, let’s 60% Following the customers is what first led through the mail, documents could be De Leon has proved a natural. He rose struggling to pinpoint the exact just reach out to them and apologize and responsible for the execution and support of social efforts are De Leon into the world of e-commerce and identified, resourced and in place throughout the organization. signed and faxed back immediately, it cut from delivering pizzas for Domino’s Pizza return on investment. Against let them know their voice has been heard social media. His stores served Northwest- overnight courier or bike messenger costs. in Chicago to pioneering the brand’s e- and then escalate it just the same way ern University and he wanted to keep up this backdrop, Ramon De Leon, Social strategy is connected to business The reasons and expectations were clear. commerce and social media strategy. He you would if the person was standing in 61% with students’ changing behavior. Over the goals and outcomes. “The answer for social media needs to helped build six Chicago pizza restau- a scheduled speaker at LeWeb, front of you on the floor of your business.” years, he defined three metrics to measure be as specific as for the fax machine was 20 rants into a $7-million-per-year franchise De Leon should know: his ability to trans- the success of his social media efforts. has emerged as a social media A long-term vision for how social media will improve or 30 years ago,” De Leon says. “‘I need to business and is credited with a 50% in- form customer complaints into long-lasting 52% None of them were likes, fans or fol- customer relationships has been articulated. have this so I can encourage — or create a crease in sales from the time he took over soothsayer showing how brands relationships and his experience of fighting lowers. “Those inflated numbers are ab- platform where I can encourage — conver- the marketing message in 2000 — with “social media fire with social media water” solutely meaningless because they’re not can balance big data with instinct. Top executives are informed, engaged and sations about our product, conversations seven out of ten orders coming through have been turned into business school case 52% going to be something that your banker is aligned with our social strategy. about our brand; provide people with an digital channels, compared with 40% on studies. For example, in 2009, when two going to ask you when you go fill out an avenue where they can express their love average across the U.S. The biggest misconception among ex- Domino’s employees in North Carolina post- application for a loan,” he says. The social strategy includes a detailed road or concerns about our products or ser- De Leon, who left Domino’s in No- ecutives, he says, is that social media is ed a video of themselves making a pizza with “For any business you want to sell map for what it will do – and also not do – 48% vices. That’s what I want to use this tool vember to join Rise Interactive as the something totally different from standard cheese they’d put up their noses, Domino’s over the next 1+ years. more, you want to spend less to sell more for,” he says. “That’s what people need to Chicago-based digital marketing agency’s operating procedures. Take customer headquarters and the local franchise had and my third one is ‘Am I having fun?’,” he answer,” says De Leon, “Otherwise you’re senior social media strategist, will speak service: if a customer had a complaint in no idea of how to react. De Leon, however, says. “Number three was almost a gimmee There are clear metrics used throughout the organization that 34% just going to have more dashboards that on the main stage at LeWeb this year, the Printemps department store in Paris immediately made his own video response associate social activities with business outcomes. because I was having a lot of fun.” That’s a you’re trying to figure out.” while other social media marketing gurus or Macy’s in Chicago, there would be a saying how completely unacceptable the message that lots of big companies should A survey of 130 businesses conducted will be featured during a separate “brands procedure for everything, De Leon says. offending video was and followed up online take to heart: mixing social media and Employees at all levels are aware and trained on how to use (or not by the U.S.’s Altimeter Group in late 2012 track,” which will focus on winning social “If we take that same scenario and with commenters. Bloggers and social media to use) social media in both their jobs and personal lives in ways 27% marketing can help the bottom line but it illustrates the lack of clarity. There is still media strategies from renowned brands, make it social — so someone has that posts applauded his openness. Nationally that will positively impact the organization. is also about making everybody — includ- a huge disconnect between companies’ as well as tips on how they use the Web negative experience, they have the heated Domino’s sales fell and the North Carolina ing the customer and those that work for social media strategies and the way busi- and technology to create innovative prod- words, they leave the place of business franchise shut down, but at De Leon’s stores, Source: Altimeter Group’s Survey of Digital Strategists, Q4 2012 (n=130) the brand — motivated and happy. nesses are run (see the accompanying ucts and user experiences. and now they post it on the brand’s Fa- sales were up during the period. “Once the graphic). In the survey some 48% of top Tutorials are needed because digital — cebook wall, they post on Twitter, or they message gets heard, if it comes from the

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ing two billion-dollar-plus transactions. tion and investment into the UK, and such as the U.S. Secret Service acknowl- Everything else has moved on but that Governments are starting to notice the rebranding of Britain as a global fi- edged that bitcoin, which is designed to hasn't. I don’t know whether bitcoin is the Focus on Fintech the activity in this sector: in early De- nancial center that is leading the world be difficult to trace, has potential ben- one. We are just at the beginning of vir- cember it was reported that British in new technologies, financial thinking efits, as well as risks, helping establish tual currencies — like the Internet before As the charts on page four show it’s been in 2013; it’s clear from this table that pay- Prime Minister David Cameron is look- and pioneering business models. The Future the currency’s credibility. In November Google or maybe Netscape. a busy year for funding activity for start- ment processing continues to be hot, with ing to support FinTech UK, an initiative CheapAir.Com, an online travel agency ups in the U.S. and Europe. The Fintech no clear winner in Europe — so far. led by 50 of the UK’s foremost financial based in Los Angeles, began accepting Q In November Bloomberg sector is no different. The first table shows The second table shows selected acqui- technology entrepreneurs. Their key bitcoins for purchase of flights and the News ran a story entitled selected investments in fintech companies sitions of fintech players in 2012-13, includ- goals will be the promotion of innova- University of Nicosia in the capital of “Bitcoin Is Still Doomed.” Among Of Money Cyprus began accepting tuition pay- other things, the article argued that ments in bitcoins. no asset that fluctuates so erratically SELECTED EUROPEAN FINTECH INVESTMENTS, 2013 Source: Companies’ press releases; investors; Go4Venture Advisers’ bulletins BitPay, the company Khan backed, can plausibly work as a medium of airline and telecommunications provider has so far helped over 10,000 merchants exchange. In November the value of FINTECH AMOUNT INVESTED Virgin Media, blogged about how his com- across the world start accepting pay- a single bitcoin spiked to over $900 COMPANY COUNTRY WEBSITE WHAT IT DOES (€ MILLION) INVESTORS mercial space flight venture Virgin Galac- ments in bitcoins. According to Coin- following the U.S. senate hearing, tic has already started accepting payment Desk, the media site Khan founded to then fell to about half that, then rose Powa Technologies UK www.powa.com Developer of a payment processing system and credit card 57.1 Wellington Management in a type of virtual currency known as explain Bitcoin to the masses, 50% of the again to over $1,000 as we go to dongle for smartphones bitcoins. A flight attendant from Hawaii merchants that use BitPay are located in press. This compares with a price of has already purchased her Virgin Galactic North America and 25% are in Europe. around $186 earlier in the autumn, Kyriba France www.kyriba.com Provider of SaaS treasury and payment solutions. 13.7 BRED Banque Populaire, Daher Capital, ticket in bitcoins. On November 29th the Over 90% of the merchants using the pay- and $13 in January. What is your Iris Capital Financial Times reported that the small ment service provider are e-commerce response to concern over such Channel Island of Alderney plans to issue businesses; BitPay also counts blogging radical fluctuation? Calastone UK www.calastone.com Provider of independent transaction services for the fund 13.5 Accel Partners, Octopus Ventures physical bitcoins, in partnership with the platform WordPress among its clients. management industry. UK’s Royal Mint. Meanwhile, CNN’s web- Khan recently spoke to Informilo Ed- A We are very early in the growth cy- site carried a story about a man who had itor-in-Chief Jennifer L. Schenker about cle of bitcoin. For bitcoin to become SumUp Germany www.sumup.com Maker of a mobile payment dongle that attaches to Apple Undisclosed but it is part of $20 BBVA Ventures thrown away a hard drive that contained the future of money. a mainstream success it has to increase and Android smartphones and tablets million round. cryptographic private key to unlock nearly many more times in value. Of course it will £4 million worth of the bitcoins. Q How are you personally involved be volatile on the way up, but in five to ten Ocapo UK www.e-prospects.com Performance-based customer acquisition technologies for 11.0 BOOST&Co, Management, Northzone Bitcoin fans include early ticket holders with virtual currencies? years it should be more stable. the consumer finance and insurance industries Ventures for the suborbital space flights such as ac- tor Ashton Kutcher and Silicon Valley ven- A I am an investor in BitPay, which Q Ripple Labs, which has Auxmoney Germany www.auxmoney.com Online peer-to-peer (P2P) lending marketplace 9.3 Index Ventures, Union Square Ventures ture capitalist Shervin Pishevar as well as is a payment system that allows invented its own virtual other tech industry personalities including merchants to accept bitcoins as payments currency, has also developed a Tradeshift Network Denmark www.tradeshift.com Provider of cloud-based invoicing tools 7.5 Intuit Shakil Khan, a well-known entrepreneur for purchases on their Web sites. I person- system in which any currency, and angel investor who is scheduled to ally own bitcoins. And, I have launched including bitcoins, can be moved iZettle Sweden www.izettle.com Enables self-employed professionals and small merchants 5 Banco Santander speak about the future of money on De- CoinDesk. There is a need for information around or traded without hefty fees. to accept card payments via smartphones and tablets Shakil Khan, Head of Special Projects at Spotify and cember 10th-12th, at LeWeb Paris, an an- about this emerging industry and market. It has just raised funding and using a Chip & PIN reader. Founder of CoinDesk nual Internet conference that is expected What was out there was only very deep mainstream players in financial to attract 3,500 global attendees this year. technical information so I decided to services seem interested in getting Ferengo Ireland www.ferengo.com Develops client-onboarding, enterprise compliance and 4 Investec Ventures, with co-investment Khan, who is head of special projects at launch CoinDesk while sitting at the involved. Do you see the Ripple as a data-management software solutions for investment banks from existing shareholders The scene is a restaurant in 2020. A popular music-streaming service Spotify, Hong Kong airport. I have never been in major competitor to bitcoin? waitress has just left the check on the where he is personal advisor to founder publishing before and four weeks later Azimo UK www.azimo.com Cheaper international money transfers for consumers .75 eVentures table for a group of friends dining to- and CEO Daniel Ek, is an investor in we launched. Now, after six months we A I think Ripple will complement gether. Mobile phones are pulled out, numerous start-ups, including Spotify, are the largest bitcoin news and informa- bitcoin and can be a great payment and the diners take turns scanning a DueDil, SecondMarket and Bitpay, a pay- tion site. I am hoping CoinDesk will be- network if it can get enough gateways on code on the bill. One person slips some- ment service provider that specializes in come the Bloomberg or Reuters of board, but I don't think it can compete M&A ACTIVITY IN THE U.S. AND EUROPEAN FINTECH SECTOR, 2012-13 Source: Anthemis; FT Partners’ Financial Technology Transaction Database; press reports thing that looks like a credit card out of helping Web merchants accept bitcoins. digital currency. with bitcoin as a store of value. TARGET ACQUIRER ANNOUNCED DATE STAKE % CURRENCY TRANSACTION VALUE (IN M) her wallet. Her fingers tap on several Khan is also founder of several compa- dark squares on the card which light nies, including CoinDesk, a media site Q What is the difference between Q Cameron and Tyler Win- eService EVO Payments Nov/13 66.00% USD 113.5 up when her personal code is activated. that specializes in news about bitcoin. BitPay and Circle, which was klevoss, the twins best known The card — an intelligent check — is For entrepreneurs like Khan virtual cur- recently launched by Brightcove for their part in the history of Provus MasterCard Oct/13 100.00% USD 82.0 waved over the bill and debited. Below rencies represent an opportunity to shape the founder Jeremy Allaire with $9 Facebook, have publicly said they the charges for food is a space for tips. future of the Internet and global commerce. million in financial backing from have invested millions of dollars of Official Payments Holdings ACI Worldwide Sep/13 100.00% USD 107.9 Their waitress prefers to be compen- Virtual currencies can enable nearly in- Accel Partners and General Catalyst? their money into bitcoins and in sated in Facebook Credits, although stant payments and money transfers global- July they filed a proposal with Skrill CVC Capital Partners Aug/13 75.00% EUR 600 some of her co-workers ask for tips in an ly at almost no cost and — their proponents A Circle hasn't actually announced securities regulators in the U.S. to alternative digital currency or transfer- argue — with greater security and privacy what services it will offer, but Jer- set up an exchange-traded fund Cardpoint Cardtronics Aug/13 100.00% GBP 107.5 able frequent flyer miles, any of which than existing electronic payment methods. emy told us his company is focusing on that would allow any investor to can be automatically placed into their And they are starting to become more making it as easy as possible for consumers trade bitcoins as if they were Netspend Total System Services Feb/13 100.00% USD 1,260.0 linked accounts with the tap of a diner's mainstream. Over 20 million units of the and merchants to use bitcoin. BitPay makes stocks. And you personally are finger or the wave of a mobile device. Ven, a digital currency traded on Thom- it easy for thousands of businesses across risking your own money by Online Resources ACI Worldwide Jan/13 100.00% USD 237.6 Such a scenario was painted in 2011 at son Reuters terminals which is tied to a the world to accept bitcoins, so it shares speculating on bitcoins. Would you Sibos, an annual financial services industry weighted basket of currencies, commodities that common goal with Circle. urge people in the general public to Ogone Ingenico Jan/13 100.00% EUR 360.0 gathering that attracts over 8,000 banks and carbon futures, have circulated, and start buying them too? from around the world. In many ways that it can be used to purchase anything from Q Why, in your opinion, is there T-Chek Systems Electronic Funds Source Oct/12 100.00% USD 302.5 future is already here. Mobile payments cars to coffee. a need for virtual currencies? A The price of a bitcoin either goes to and alternative currencies such as Bit- Unlike the Ven or traditional money, zero or it goes to many, many zeros. LML Payment Systems Digital River Sep/12 100.00% USD 72.4 coin, Ripple and Ven are already gaining bitcoins are not centrally controlled. In- A I refer to bitcoin as money over IP. Should people buy it? Yes. Should they go traction, shaping the future of money and stead, the coins are created by a network Why is it that in 2013 I can send you and put every penny in? No. They should Fintrax Group Holdings Exponent Private Equity Partners Aug/12 100.00% EUR 170.0 widening the way value is determined and of users who solve complex mathematical a text message, audio, video, or an icon and only risk an amount they are comfortable traded around the world and even beyond. problems — a method known as “min- it will take two seconds but if you tell me with and can afford to lose. That said, Luottokunta (nka Nets Oy) Nets Aug/12 100.00% EUR 170.0 On November 24th British entrepre- ing” — to generate bitcoins. Only a finite that I owe you $12 for the pizza last night when it comes to risk/reward potential I neur Richard Branson, founder of Vir- number of bitcoins can be created. it is going to cost me $18 to send it to you see no better investment. Global Blue Silver Lake May/12 100.00% EUR 1,000.0 gin Group, which owns more than 400 At U.S. Senate hearings in Washing- and take four days to arrive? The current companies including the Virgin Atlantic ton in November, government agencies systems were built in the '70s and '80s.

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Why it’s hot: Flinja calls itself “the Uber for stored privately in their own local personal Blood Pressure Monitor and the Smart Baby Work.” Flinja (or “freelance ninja”) provides data stores, making it fully compliant with INFORMILO’S LATE- Monitor. Withings has opened its platform to the a platform where students can gain skills and the major social networks’ Terms of Service STAGE PICKS well-being ecosystem, so users can take advantage TOP 25 START-UPS build relevant work experience by completing regarding data storage by third parties. of 100+ partner apps and services compatible with paid projects while in school. Employers have Received $1 million in Series B funding in its products. In July 2013 the company received quick, easy access to talent they can test out October, bringing the total raised to $1.855 $30 million investment from Bpifrance, Idinvest TO MEET AT LE WEB before hiring. In September Flinja had more million since it was founded in 2009. The Partners, 360 CapitalPartners, and Ventech. than 100,000 students signed up and more company expects to have 100,000 users by the OUTBRAIN than 3,500 employers offering jobs. In the end of 2013. BLABLACAR previous six months, Flinja had placed 2,200 (WWW.OUTBRAIN.COM) jobs, typical job hours went from 10 hours to TRESORIT NEW YORK, NY, U.S. (WWW.BLABLACAR.COM) Informilo’s top 25 list starts with the 16 semi-finalists of LeWeb’s annual 20, and job fulfillment time went down from What it does: Content discovery platform. PARIS, FRANCE start-up competition. These companies will pitch in Plenary 2 on December two weeks to two days. (WWW.TRESORIT.COM) Why it’s hot: “Content marketing” — creating and What it does: A trusted community marketplace BUDAPEST, HUNGARY sharing content to engage current and potential that connects drivers with empty seats to 10th, 2013. The jury will choose the winners on December 12th, 2013. We GLOSE What it does: Secure cloud storage. consumer bases — is gaining traction. Outbrain passengers looking for a ride. then asked some of the most active investors in the sector to nominate and Why it’s hot: Tresorit is an encrypted cloud is well-positioned for a shift to a greater Why it’s hot: BlaBlaCar, which helped pioneer (WWW.GLOSE.COM) storage tool, designed to enable users to share emphasis on content; it’s installed on more than this space, has five million members across 10 evaluate companies attending Le Web for the other nine spots. PARIS, FRANCE and sync confidential data. The company’s key 100,000 blogs and websites, and serves more countries and transports more than 700,000 What it does: Builds communities of readers differentiator is its patented cryptographic than 14 billion page views a month, all pointing people every month, creating an entirely new, LEWEB 2013 STARTUP Why it’s hot: KiDDY enables users to store around books. security protocols; it bills itself as a more- to quality content on its network of publishers. people-powered transport network. The COMPETITION SEMI-FINALISTS and share photos and private information Why it’s hot: Glose is a reading and social secure Dropbox. Tresorit raised $1.7 million American Express, Proctor & Gamble, GE and company claims over 24.3 million seats have such as kids’ diaries and personal health annotation platform for ebooks; readers can in funding in 2012 from Euroventures and General Mills use it as part of their marketing been offered since January 2009, and over 1.8 records. KiDDY also helps to make memory share their annotations with other readers. nine private investors after it was spun out of strategy to reach target audiences. billion miles shared. In 2012 BlaBlaCar raised tangible through the creation of postcards The company wants to make reading on the Hungarian security company CrySys Lab. The $10 million from Accel Partners and existing and photo albums. Founded in February Web and mobile easier and more interesting. company runs regular hacking challenges, GIGYA investors ISAI and Cabiedes & Partners, 2012, KiDDY was a showcased start-up offering a $10,000 reward to any hacker that bringing total funding to ¤12.5 million. Its AFRIMARKET at Tech Cocktail’s SXSW StartupLife INFOGRAM breaks its cryptography. So far, none has. (WWW.GIGYA.COM) business is proving far more successful than Celebration 2012; participated in the PALO ALTO, CA, U.S. those of copycats in the U.S. (WWW.AFRIMARKET.FR) LeWeb’11 Startup Competition; and was a (WWW.INFOGR.AM) What it does: Offers online businesses social PARIS, FRANCE finalist for Asia’s top 50 apps. RIGA, LATVIA INFORMILO’S EARLY- infrastructure to integrate social network SPOTIFY What it does: First mobile money remittance What it does: Infographic creator. STAGE PICKS functionality throughout their web properties. service with a cash-to-goods model. TECHNOLOGY IMPROVES THE WORLD Why it’s hot: Infogram claims to be the world’s MEDIASMART people write and share text online. The Why it’s hot: Works with more than 650 (WWW.SPOTIFY.COM) Why it’s hot: Launched in June, Afrimarket (DROID TRANSLATOR) most popular infographic creator. The company company has collaborated with some of enterprises, including 44 of the top 100 websites. STOCKHOLM, SWEDEN cuts out money transfer agents and other provides a simple web app that enables anyone (WWW.MEDIASMART.ES) the world’s best graphic designers to create Gigya reaches 1.5 billion unique users per What it does: Streaming music service with middlemen to enable money transfer directly (WWW.TIWINNOVATIONS.COM) to create interactive infographics and data MADRID, SPAIN exclusive pre-formatted collections, then month — nearly two-thirds of the global internet social media interactivity and mobile apps. via mobile phones for users in French- PRAGUE, CZECH REPUBLIC visualizations in a few minutes. Infogr.am has What it does: Optimizes the media-buying share automatically to Facebook, Twitter, IMPORT.IO population. At yearend 2012 the company nearly Why it’s hot: Allows users to stream more than speaking countries in West Africa. The What it does: Simultaneous translator of voice a global community of 800,000 journalists, process for mobile display advertising. Tumblr or Instagram. The company tripled its sales growth from 2011 and recorded 20 million songs from the big music players Afrimarket platform transfers money from and video calls. bloggers, students and professionals who have Why it’s hot: mediasmart is a mobile ad was spun out of HerraizSoto&Co, an (WWW.IMPORT.IO) its largest quarter ever, with 33% quarter-over- and smaller independent labels using either the sender’s Afrimarket digital account in the Why it’s hot: Technology Improves the created 1.5 million infographics. Infogr.am network whose proprietary optimization independent digital shop that has received LONDON, UK quarter growth in Q4. In September Gigya a free, ad-supported service or a premium form of credit (rather than cash), which can World develops products in the fields of received funding from HackFwd and went platform, bsmart, measures post-click awards from Cannes Lions Festival, What it does: Data extraction specialist. raised a $25 million funding round, bringing the ad-free service. Has more than 24 million only be redeemed at designated points-of- communications, gaming, health and personal through the Startup Sauna accelerator. events and creates unique user profiles that OneShow, Clios, New York Festival, Art Why it’s hot: In 2009 import•io’s founders total raised to $70 million in venture funding. active subscribers, of which six million pay. sale, and used for specific purposes, such as safety. Its Droid Translator provides automatic it continuously enriches with behavioral Directors Club, Webby Awards, among launched their first start-up, Kusiri, which Social infrastructure has become a requirement Spotify is now available in 28 countries; one buying medicine, paying school fees, etc. Kima simultaneous translator of voice and video INTELCLINIC information. This information is then used others. It closed its first round of funding provides a forensic investigation platform for online businesses; Gigya’s approach of billion playlists have been created so far. Ventures and OCP Finance put $1 million into calls for Skype and other VoIP services. The by bsmart´s optimization algorithm to buy with Kibo Ventures in 2013. used by KPMG, PWC, Citigroup and the UK offering everything a site needs to be social puts In late November Spotify secured a $250 the company earlier this year. program supports 29 languages, and formally (WWW.INTELCLINIC.COM) traffic in real time from ad exchanges. It offers police. The import•io browser was built it in a good position for future growth. million investment round led by Technology launched in October 2013. WARSAW, POLAND access to more than two billion impressions PEEKINTOO on the underlying technology from Kusiri, Crossover Ventures which valued the APPRENTUS What it does: Interprets and optimizes sleep per month in Spain. The company has raised with the goal of democratizing access to VIADEO company at more than $4 billion. Last year it FIDBACKS patterns. ¤1 million from angels, Kibo Ventures, and (WWW.PEEKINTOO.COM) data. The service went into public beta in lost over $77 million. (WWW.APPRENTUS.COM) Why it’s hot: Intelclinic claims to help users KOMM Investment. ATHENS, GREECE September. import•io is used by the British (WWW.VIADEO.COM) BRUSSELS, BELGIUM (WWW.FIDBACKS.COM) gain more time in their days by lowering the What it does: Anonymous social-network app Red Cross and netbiscuits, among others. PARIS, FRANCE HAILO What it does: Matches local private teachers PARIS, FRANCE amount of sleep they need to be refreshed MELUDIA for exchanging short videos. Raised a £600,000 round at the end of What it does: Social network for professionals. with students. What it does: Creates trust profiles for the and regenerated. It has created a brainwave- Why it’s hot: PeekInToo allows users to virtually March 2013. Why it’s hot: Founded in France in 2004, Viadeo (WWW.HAILOCAB.COM) Why it’s hot: Apprentus is a social marketplace sharing economy. monitoring sleep mask that allows individuals (WWW.MELUDIA.COM) experience and witness events happening is the world’s second largest professional LONDON, UK to list, discover and book unique classes Why it’s hot: Fidbacks enables Internet to “sleep less and more efficiently.” The mask PARIS, FRANCE elsewhere in the world, almost in real time, SHOPMIUM social network, with a total membership base What it does: Links licensed cab drivers with and private teachers around the world. The users to create a single, portable profile uses a combination of sensors and artificial What it does: Helping people learn music upon request, anonymously. Users can request of over 55 million professionals. Its brands would-be passengers via smartphone apps. company helps users find the best private from the reputation they acquire (through intelligence software on a smartphone app. through emotions. real-time “Peeks” (12-second videos), view (WWW.SHOPMIUM.COM) include Viadeo, ApnaCircle (India) and Tianji Why it’s hot: An app that links licensed cab classes nearby and helps teachers earn more comments, ratings, etc.) on online peer-to- The company has raised $65,000 from local Why it’s hot: Meludia is an online game that “Past Peeks” (videos uploaded up to two hours PARIS, FRANCE (China, with 17 million members). In 2012 the drivers – starting in London, but now also money. Launched in October 2012, Apprentus peer marketplaces such as Airbnb, eBay angels, and hopes to raise $100,000 through provides a unique way to learn music. The ago), and contribute “PeekShouts” (voluntary What it does: Mobile product discovery and company raised ¤24 million in new financing; offering the service in 15 other cities – with now offers more than 200 classes in five or BlaBlaCar. Their Fidbacks profile then crowdfunding to start shipping. company’s freemium services are based on Peeks capturing interesting incidents or coupon app. investors included a fund set up by the French passengers via the two main smartphone European countries. At LeWeb, Apprentus functions as a portable résumé to leverage their music theory taught by one of the founders, events) from any desired location in the world Why it’s hot: Shopmium helps consumers government to buy strategic stakes in French platforms, iOS and Android, is set to become a will introduce “blended learning,” a mix past online good behavior and demonstrate ISSUE STAND grounded in emotional cognitive processes, using their mobile devices. discover new products, find those products companies. Viadeo is expanding rapidly in must-have for denizens of those cities. Hailo between online content and face-to-face their trustworthiness for future transactions. developed and tested over 25 years and 3,000 in a store, and then receive a discount India, Africa and other developing economies. has carried eight and a half million passengers time with Apprentus’s thousands of private Fidbacks profiles are now embedded in (ISSUESTAND.COM) students. The company raised $130,000 in SOCIALSAFE coupon if they buy. The company has run It currently has 400 employees in 11 countries. and grown to annualized sales of well over teachers to boost student achievement at a number of European sharing websites, WARSAW, POLAND seed funding in June, on top of ¤150,000 more than 150 campaigns for well-known $100 million. The company has raised a total of reduced cost. Winner of Best Business Idea enabling them to transact more quickly. Closed What it does: Mobile magazine publishing tool. invested by its founders. (WWW.SOCIALSAFE.NET) brands such as l’Oréal, Nestlé, Pepsi, and WITHINGS $50+ million in funding; its last round valued award at Alumni Business Camp in Brussels in its first funding round (¤200,000) with French Why it’s hot: Issue Stand helps publishers turn LONDON, ENGLAND Innocent Drinks, and positions itself as “the the company at $140 million. The business is October 2013. business angels in June 2013. static PDFs into mobile magazine apps with a real NOTEGRAPHY What it does: Social media back-up mobile enabler for 360-degree marketing (WWW .WITHINGS.COM) solidly backed for further development as it “tablet experience.” The company also builds and organizer. plans.” Shopmium claims to have more ISSY LES MOULINEAUX, FRANCE moves to take on Uber in the U.S. COMPATH FLINJA advanced reader analytics to enable publishers (WWW.NOTEGRAPHY.COM) Why it’s hot: SocialSafe is a PC and Mac than 550,000 app users in France. In June it What it does: Designs, develops, and to see how users consume their content. Issue BARCELONA, SPAIN application that enables users to download announced $5.6 million in Series B funding industrializes connected objects. (WWW.KIDDY-PHOTO.COM) (WWW.FLINJA.COM) Stand also helps publishers optimize their sales. What it does: Typography app that enhances their online social lives and unite their social from Ventech as well as previous investors Why it’s hot: Withings creates smart products and TOKYO, JAPAN SAN FRANCISCO, CA, U.S. Clients include Harper’s Bazaar, Cosmopolitan, written communications. networks. Users can back up their Facebook Accel Partners & ISAI. The company apps to help people across the world easily take What it does: Secure private photo-sharing What it does: Marketplace to connect students and Playboy. Users can pay a one-off fee or take a Why it’s hot: Notegraphy is a web and mobile Timeline, Twitter, Instagram, etc., to create previously raised $2.1 million from Accel care of their health and well-being, starting with its service for families. with freelance work. monthly subscription to Issue Stand’s services. application that aims to rethink the way a searchable, digital journal. Users’ data is & ISAI. Wi-Fi Body Scale in 2009; it also provides a Smart

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leaders, the directors into the design studio. It was an interesting experience observing finance leaders coming into Living (And Running a Start-up) The 100-Year-Old Start-Up the design studio and uncomfortably mixing with colleagues that not only dressed differently but were operating How Can Founders Build Something Durable effectively in an environment of loud Without Fear music and dynamic surroundings. It was That Is Still Innovating A Century Later? equally enlightening to observe senior design leaders maneuvering awkwardly in the boardroom. This has been a key to BY JENNIFER L. SCHENKER Apple’s success and it was something that when I moved over to Coke I took On paper Dina Kaplan had it all: a co- very seriously.” founder of Blip.tv, a successful platform At Coca-Cola, over a period of sev- for original web series which raised en years, the design team came to be more than $20 million in venture capi- viewed as business drivers, says Voron. tal, Kaplan was at the heart of the New “We talked to people about the value York tech scene, heading up both the of art and beauty and its ability to in - networking group The Founders Club, crease customer allure and make the which became a quarterly invitation- product more efficient. We were able only networking event that’s a must- to build these metrics into the decision attend for the city’s movers and shakers process and convince an unlikely group such as media mogul Rupert Murdoch of individuals to work together and be- and Mayor Michael Bloomberg, as well have in a very different way,” he says. as the Calliope Group, an organization Voron recently took on the job of that gathers women founders of tech Vice President of Dolby Labs, leading companies such as Gilt Group, Rent The a marketing team that includes design, Runway and Paperless Post as well as brand management, digital/experimental senior executives from Google, Enter- marketing, content, production and the tainment Weekly and Conde Nast. Dolby Theater. Kaplan was invited to a World Econom- ic Forum meeting in China and was named one of Fortune Magazine’s most power- “I want to build something ful women entrepreneurs. She spoke at Fortune’s Most Powerful Women Sum- durable that is 100 years old mit, along with Hillary Clinton (then U.S. and still innovating,” says Secretary of State) and American fashion designer Tory Birch. She was also named, Tech entrepreneur Dina Kaplan, a scheduled speaker at LeWeb, bungee-jumping in New Zealand, an experience that she says has helped her become fearless. Phil Libin, CEO of Evernote. along with Huffington Post founder Ari- “It is a very meaningful, anna Huffington, one of Fast Company’s Most Influential Women of Web 2.0. fices and I thought that is what I should she says she looked down and thought, “I plan. That approach will also be good for interesting challenge, “From the outside my life looked per- do — that everything I did should be in ser- am not doing this for the peer pressure. the productivity of the company, she says. a systems engineering fect,” says Kaplan, a scheduled speaker at vice to the company. I was working every I am doing this because I need to change “If you are knee-deep in operations and LeWeb, an Internet conference in Paris night, every weekend, through vacations.” my life. And then I jumped. I felt tingles working nonstop you can lose sight of the challenge. What are the taking place from December 10th to 12th. Kaplan recalls one vacation with her in my whole body from the tips of my strategy of the company and the market. things that make a company “But what I felt on the inside was the ex- family in Italy. “We went cycling. When we fingers to my toes. I had made the leap. You need to leave some white space in Phil Libin, CEO of Evernote, a scheduled speaker at LeWeb. act opposite. All of these accolades and stopped at each red light I would respond I had moved into my new world. I was your day to think big-picture thoughts or durable and robust or brittle huge opportunities to support women in to each and every email, including check- now going to live without fear because I to find creative solutions to a problem.” BY JENNIFER L. SCHENKER and short-lived?” tech were really important to me and my ing things with lawyers, then I would have had conquered every physical fear I had.” In her new company, she says, “I will company was doing great. But all this fear to race to catch up with everyone and then, Kaplan is currently living in the U.S., focus a lot more on people and encourage made it not worth it in the end.” at the next red light, do it all over again. preparing to launch a new start-up. But those I work with to maintain great rela- With the pace of change quickening the infused with design thinking. While Cola. As large companies begin hiring “Dolby is an engineering-driven com- After seven and a half years of working That was my idea of a vacation.” this time will be different, she says. tions with their families and loved ones challenge for tech companies is not to he used to think about design as visual these young MBAs this thinking will start pany with a global brand; an ingredient 24/7 in start-up mode Kaplan was suffer- Finally, she decided she had had “I’ve been back since the beginning instead of thinking of that as a distrac- just try to build companies that last but appearance, Libin says he now under- to be incorporated, he says. brand,” says Voron. “We are beginning ing from severe burnout and — although enough. In early November 2011 she told of September and life is really different, tion. I am going to get angry with people to build companies that retain a start- stands that design is at the base of every- to use design thinking at Dolby, a type she hid it well — felt crippled by fear. her surprised family that she was going to both personally and professionally,” says if they are sending out too many emails up mentality and constantly reinvent thing, from financial models to the way DRIVING BUSINESS THROUGH of pinball strategy. It is really about tak- “In a company of 75 people I was run- leave the company that she had worked Kaplan. She now makes time to meditate on weekends or late at night instead of themselves, says Evernote CEO Phil you run a board meeting. “So, he says, DESIGN THINKING ing an idea, bouncing it to a partner and ning six departments by myself which so hard and so long to build. She bought twice daily. “The message I am going to spending time with family and friends Libin, a scheduled speaker at LeWeb. “I need to surround myself with people having them bounce it to someone else. was absolutely crazy,” says Kaplan. “I a one-way ticket to Indonesia and left on give at LeWeb is the importance of mind- because these are important relationships There are about 3,000 companies in are great at all of those things.” The focus needs to be on how com- As the idea bounces like a pinball it is was in charge of finance, business de- December 21st, 2011, the start of a year- fulness for entrepreneurs, to be aware that feed happiness. the world that have been around for In the future it shouldn’t be too hard panies large and small can learn from a growing and has the ability to scale. It velopment, PR, the marketing, HR and and-a-half-long trip around the globe. of what you need and be aware of your One of the biggest lessons learned over 100 years or more “but most aren’t to find the kind of employee he describes. myriad of industries and how the role is called open innovation. This can be investor relations and all without even “I wanted to live an opposite life on an emotions. You can calibrate your life to the last year and a half was that “there are great places to work at. I want to build Stanford and other prominent business of the creative designer should change: really valuable for an organization but it one full-time direct report. I was afraid opposite side of the world,” says Kaplan. suit what is good for you and you can do three types of currencies,” says Kaplan. something durable that is 100 years old schools have started embracing design how she or he can inspire other folks in is scary … because playing pinball risks to be vulnerable and ask for help, afraid I She took to heart the advice of a man a much better job running your company “Money, peace of mind and freedom, and and still innovating,” he says. “It is a thinking and have entered into dialogue the organization, says Voron. “One of exposure to new ideas.” wasn’t good enough to deserve a staff and she met on the first leg of her journey or investing if you live a mindful life.” if you have the last two you are actually very meaningful, interesting challenge. about it with businesses. the things we did at Apple is we actually That is the challenge and the opportu- equally afraid that I wouldn’t be a good who told her “use the time given you to At Blip.tv, Kaplan says she would not doing pretty well.” What are the things that make a com- Top MBA students are taking classes spent time working with our designers nity for any start-up that wants to remain enough boss.” conquer all your fears.” allow employees to work from home. In And as Kaplan herself as learned, when pany durable and robust or brittle and that include collaborative prototyping and building cross-functional capabili- innovative in the next few years, never There were no women role models for Kaplan did just that, forcing herself to her new company she will not only be it comes to running start-ups, it also helps short-lived?” and idea generation. The thinking now ties. We taught designers about finance mind the next 100. women to look up to,” says Kaplan. “I kept do things that scared her, including scuba more flexible about where people work to be fearless. “I heartily recommend it,” Libin says he wanted Evernote, a suite “is that everyone is a designer — it is and actually sent the designers out of “I don't know that I know how to do asking myself, ‘What would Mark Zuck- diving (because she watched someone but about how they work. Some people she says. “It makes you happier, better at of software and services for note-taking not about having a degree in design — it the design studio into the organization. this,” says Evernote’ s Libin. “But I know erberg or Jeff Bezos do?’ And the answer she knew die during a scuba trip when work well in 90-minute spurts, she says, your job and better with people — person- and archiving, to become a global leader is an approach to problem solving and We had to prove that we could be ac- it is important to have a goal that is sig- I told myself was, ‘Work harder — work she was young); zip-lining at 40 meters; and then need to take a break and do yoga ally and professionally.” with staying power by building a deep how you integrate brand, products and countable and we understood how fi- nificantly epic that you can work on it more hours.’ I had this image of [Google and bungee-jumping. or something else. “Different people have brand. “I want Evernote to be tied to an services,” says Vince Voron, who has 20 nancial decisions were made in order to for the rest of your life.” founders] Larry and Sergey sleeping in The bungee-jumping in New Zealand different styles so we will adapt to have effortless level of productivity,” he says. years' experience at two of the world’s show the company how they got value sleeping bags in the hallway of their of- was the toughest. After much hesitation happy, productive employees,” says Ka- And, he wants his company to be most iconic brands: Apple and Coca- from design,” he says. “We brought the

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Q What role is Facebook playing in Q & A With Chris Daniels, Facebook’s helping bring new users online? Let 1,000 Start-Ups Bloom A Internet.org is a Facebook-led ini- VP of Business Development tiative. The partners are collaborat- ing to develop and adopt technologies that The launch event for Numa, a 1,500-square-meter EDF and office furniture maker Steelcase. Bing mobile product management and push to become more relevant to make mobile connectivity more affordable space on Rue du Caire, which consolidates existing Orange is supplying broadband and online strategy. He recently spoke to mobile developers. It is a new revenue and decrease the cost of delivering data accelerators Le Camping and La Cantine and is WiFi connectivity, including a gigabit pipe Informilo Editor-in-Chief Jennifer L. stream for Facebook as the company to people worldwide. Internet.org is also expected to attract up to 45,000 visitors and 600 tech and 4G coverage and has set up a telepres- Schenker about Facebook’s mobile fo- is keeping Parse’s freemium revenue looking at how to use data more efficient- start-ups in its first year. ence center to allow the broadcasting of cus, growth opportunities in emerging model. How does this fit in with your ly. The partners will invest in tools that events and videoconferencing. It is sending markets and Internet.org, an initiative overall platform strategy? dramatically reduce the amount of data experts to Numa on a rolling basis and has launched in August by Facebook with required to use most apps and the Inter- was on hand for the opening of the new agreed to open up its customer data and Samsung, Ericsson, MediaTek, Nokia, A The reason we acquired Parse is net. And the initiative will support devel- Paris center. Helping Numa is just the some of its client base to selected start- Opera and Qualcomm, which seeks to that we realized as we improved opment of sustainable new business mod- start, he promised. “There will be others.” ups who want to work on innovative new make Internet access affordable to the our own apps that developers have a lot els and services. Google is providing Android devices services. SNCF also wants to share data billions of people without it. of problems in this area and we could help for entrepreneurs to use when testing about its customers in order to bring new them. We can help developers focus on Q Recent press reports say their technology at Numa and profes- applications to the market. “Almost all of Q In less than a year, mobile has building a great user experience since teenagers are using Facebook sional video equipment so that French our partners want to join our big data/ gone from being zero percent of with Parse’s technology we take care of less and instead turning to Vine and entrepreneurs can communicate with open data program,” says Schmidt. “Large Facebook’s advertising revenues to the back end. In addition to making it other social media sites. How does various Google Campuses, record pro- companies don’t know what to do with all almost 50%. How is that changing the easier and faster to launch apps, Facebook Facebook stay relevant? What will it fessional videos to attract attention to their data and it is a great opportunity for way the company thinks and operates integrations can make apps stickier when look like in 10 years' time? their start-ups and use Google Hangout data start-ups to work on real-life sets of and its strategy around partnerships? users add friends and Mobile App Install to access Google engineers and designers data and create great ideas.” Ads helps developers reach and acquire A Social as a category is growing enor- during virtual office hours. In addition to raising money from A On the advertising side it is true that new users at scale. mously. People are using more Although it is an independent project, in sponsors, Numa crowdfunded an addi- mobile has become a bigger per- social apps and we remain a growing part many ways Numa resembles Campus Lon- tional €170,000 from over 600 people centage of our business. But perhaps even Q Where do you see growth of this growing market. Ten years on the BY JENNIFER L. SCHENKER don: it sports an open café on the ground — one of the biggest crowdfunding op- more importantly is the growing role of coming from? Web is going to be even more social. We floor where entrepreneurs and investors erations in France to date, Schmidt said. Chris Daniels, Facebook’s Menlo Park- mobile in the way we deliver our services are going to be a big part of that and oth- can hang out. On another floor it offers a co- The tech hub has big objectives. “It is based Vice President of Business De- to consumers. Over the last 18 months or A Over 80% of our daily active users are ers will be too and that’s great. What a difference a year makes. When blocked off to accommodate the overflow. working space similar to that of TechHub true that the French tech scene used to velopment, is a scheduled speaker at so mobile has gone from being one of our outside of the U.S. and Canada. There the local digerati gathered in Paris in So much for former U.S. President at Campus London, where entrepreneurs be insular, but now Paris’s entrepreneurs LeWeb Paris, an annual Internet con- products to becoming core to what we do, is an awesome opportunity for people to 2012 for LeWeb, an annual Internet George W. Bush’s rumored statement can pay to rent space by the week or the absolutely want to be international. Are we ference that attracts some 3,500 people to being the best of our offerings. access Facebook in places where they haven't conference that attracts a global audi- that “The problem with the French is that month. And like Seedcamp, which inhabits there yet? Unfortunately not. We are fail- from around the globe. Daniels joined had it before, such as in emerging markets. ence, the atmosphere was morose. An they don't have a word for entrepreneur." a floor of Campus London, Le Camping will ing to attract people to come here from all Facebook in 2011. Prior to that he spent Q Last April Facebook acquired Well over a billion additional people will be initiative by the new government to tax “The opening of Numa arrives at a choose 12 selected start-ups to work and be over the world so we need to change this so five years at Microsoft, where, among Parse, a Silicon Valley back-end- connected in the coming year in Asia and capital gains as salary had led investors time when the whole start-up scene in mentored in the office space for a period of we can foster the kind of diversity that ben- other things, he was responsible for as-a-service start-up, as part of a big this is an enormous opportunity for us. and entrepreneurs to form a lobby group Paris has evolved and matured a lot,” says four months, twice a year. efits creativity,” says Schmidt. To that end, called “Les Pigeons,” slang for suckers, to Adrien Schmidt, head of Silicon Sentier, Numa will launch an English-language express their opposition and frustration. an organization representing the city’s web site and the team running Numa will The talk was about how entrepreneurs start-ups which is named after the Sentier go on a road show to try to attract investors were fleeing France. And things didn’t neighborhood in Paris’s second arron- “The opening of Numa arrives at to come and visit Paris, he says. improve in May when the sale of video- dissement. “Things are changing. We are a time when the whole start-up Having a central point where foreign sharing site Dailymotion to Yahoo! was not yet London or Berlin but we know investors can go to meet start-ups will help. blocked by the French government. that is where we want to go.” scene in Paris has evolved and Until Numa was opened French start-ups Fast forward to December 2013 and the While Paris already had La Cantine, Le matured a lot,” says Adrien were spread out in Le Camping and La Can- FINDING IT HARD TO GET NOTICED IN A CROWD? mood is noticeably more upbeat. Camping and Silicon Xperience, prior to tine’s two small buildings and other places. The government has backed down the opening of Numa Paris lacked a cen- Schmidt, head of Silicon Sentier, Within two years Numa’s digs may INFORMILO’S PRINT MAGAZINES REACH YOUR TARGET AUDIENCE AT KEY INDUSTRY EVENTS. from its original capital gains tax proposal tral hub on a par with Google Campus in an organization representing the be overshadowed by another ambitious (although proposed 2014 amendments London. Now it has one, thanks in part to project. In September, the city of Paris INFORMILO’S PRINT MAGAZINES ARE DISTRIBUTED INSIDE THE CONFERENCES AND SENT TO OUR CORPORATE SUBSCRIBERS. PDFS OF THE to tax laws have some in the sector wor- Google. The U.S. search engine giant is one city’s start-ups which is named announced the 1000 Start-Ups project, MAGAZINES ARE OFTEN EMAILED TO CONFERENCE PARTICIPANTS AHEAD OF THE EVENTS; ARTICLES ARE VISIBLE TO A BROADER BUSINESS AUDIENCE ried). France’s Criteo, a global online ad of five major partners of Numa. Its involve- after the Sentier neighborhood in which is being funded by French entre- AS THEY ARE POSTED ON INFORMILO’S OWN WEB SITE AND ON THE WEB SITES OF CONFERENCE ORGANIZERS. SUBSCRIBERS TO INFORMILO’S retargeting company, priced its enlarged ment with the French tech hub is tied to a Paris’s second arrondissement. preneur Xavier Niel, the founder of French MAGAZINES INCLUDE TIER-1 VENTURE CAPITAL FIRMS, LAW FIRMS, AND TECH COMPANIES, WHICH DISPLAY THE MAGAZINES IN THEIR LOBBIES, SO October U.S. initial public offering on the ramped-up effort by Google to stimulate Internet service provider Illiad, along with EACH HAS A LONG SHELF LIFE. NASDAQ at $31 per share, above its ex- start-up ecosystems in Europe beyond Lon- “Things are changing. We are not la Caisse des Dépôts et Consignations, an pected price range, raising $250 million. don. To that end, it recently appointed Eze investment arm of the French government. Car-sharing service BlaBlaCar, another Vidra, the head of Campus London, as head yet London or Berlin but we know Starting in 2016, the Halle Freyssinet, an NEXT UP: of France’s rising tech stars, has rapidly of Google for Entrepreneurs Europe. that is where we want to go.” old shipping and freight center in Paris's DLD14, MUNICH, JANUARY 19-21, 2014: DLD IN MUNICH IS AN ANNUAL GATHERING OF THE DIGITAL ELITE EN ROUTE TO DAVOS. THE ORGANIZERS SAY: expanded across Europe and looks on Google For Entrepreneurs is part of the 13th arrondissement, will be transformed track to handle more passengers than company’s global effort to empower start- into a massive tech incubator with 30,000 "OVER 150 SPEAKERS AND 1,000 ATTENDEES WILL TOUCH BASE AT #DLD14. EUROPE'S HOTTEST CONFERENCE INVITATION TURNS 10 AND BRINGS the Eurostar. And early-stage companies ups and entrepreneurs around the world. Despite the similarities, the project was square meters of co-working and office TOGETHER THE MOST INFLUENTIAL OPINION-MAKERS, INDUSTRY LEADERS, START-UPS AND DIGITAL GIANTS TO CELEBRATES ITS ANNIVERSARY." like Shopmium are continuing to attract The team, which runs more than 50 ef- launched before Google Campus opened. space. The project is being billed as the investors from outside France, such as forts in over 100 countries, plans to play The City of Paris and the Ile de France world’s largest tech incubator. MOBILE WORLD CONGRESS, BARCELONA, SPAIN, FEBRUARY, 2014: THIS ANNUAL EVENT IS THE PLANET’S BEST VENUE FOR MOBILE INDUSTRY Accel Partners (see the Top 25 companies a more active role in fostering entrepre- regional council issued a call for tender With the help of new projects like to meet at LeWeb on pages 12 and 13). neurship in local European communities to build an “integrated innovation build- Numa and 1000 Start-Ups, it is not sur- NETWORKING, FEATURING A WORLD-CLASS CONFERENCE; AN EXHIBITION WITH MORE THAN 1,500 COMPANIES DISPLAYING THE CUTTING-EDGE Nowhere is le nouvel optimisme more in partnership with leading organizations ing” back in 2011, with the backing of Or- prising that there is more optimism at this PRODUCTS AND TECHNOLOGIES; AND APP PLANET, THE CENTRE OF THE MOBILE APPS UNIVERSE. IN 2013, MOBILE WORLD CONGRESS HOSTED MORE apparent than at Numa, a 1,500-square- like Startup Weekend and dozens of incu- ange, bank BNP Paribas and Google, says year’s LeWeb. If the new tech hubs live THAN 72,000 MOBILE PROFESSIONALS FROM MORE THAN 200 COUNTRIES. meter space on Rue du Caire, which con- bators and accelerators. “We want to give Schmidt, who in addition to overseeing up to their promise and the government solidates existing accelerators Le Camping European entrepreneurs the technology Numa has a day job running a data analyt- makes an effort to help rather than ham- and La Cantine and is expected to attract tools and training they need but also to ics start-up called Squid Solutions. Numa, per tech companies, more entrepreneurs A RANGE OF OPPORTUNITIES ARE AVAILABLE FOR SPONSORS WISHING TO REACH AND INFLUENCE ENTREPRENEURS AND INVESTORS IN THESE up to 45,000 visitors and 600 tech start-ups connect them to the Valley,” through pro- which is a blend of the words "numerique" might actually move into France instead TARGETED PUBLICATIONS. in its first year. Some 8,500 people signed jects like Blackbox Connect, a two-week (digital) and "humain" (human), has also of moving out. up for the November 14th opening; about immersion program for founders who are attracted sponsorship money from French 6,000 showed up and Rue Caire had to be based outside the U.S., says Vidra, who railway SNCF, French electric company

10-12 DECEMBER | 2013 INFORMILO.COM | LEWEB 16 WWW.INFORMILO.COM | LEWEB 10-12 DECEMBER | 2013 17 WHERE BUSINESS MEETS INNOVATION THE NEXT 10 YEARS Will The Next 10 Years Bring Humanoid Robots Into Our Homes?

BY ERIC SYLVERS

The holy grail in robotics has long been to their size, weight, power and experi- the humanoid robot that can live and mental nature. For €25,000 you might be function in the home, something simi- able to have a robot that brings you a drink lar to what viewers of science fiction on demand, but I wouldn’t necessarily movies have grown accustomed to see- sell it to you unless you are a hobbyist ing — the robot greets you at the door, or a researcher because it wouldn’t be takes your coat and then puts away the a stable system. You can definitely get a shopping before getting dinner ready. robot to do some cool stuff, but it would In the dystopian variant — think Isaac be cheaper to hire a low-cost employee RoboSavvy founder Limor Schweitzer with the company’s meter-tall Humanoid Robot, which uses the latest Asimov’s I, Robot, which went on to be- who could do it for you.” robotics technology (ROS, Embedded Computer, Vision with Depth and Kinematic cameras). come a blockbuster film in 2004 with Honda, the Japanese car manufac- Will Smith — something goes horribly turer, has developed Asimo, a humanoid wrong as the robots begin to think for themselves and rebel, forcing the (human) than 200 technologies that deal with eve- “The plan is to take advanced robotics hero to save the day. Notwithstanding “The revolution will begin rything from vision, speech, movement, away from the Ivy League of MIT and the stories about robots that would rather balance and touch. “If just one doesn’t labs that have all the money and bring it to dominate humans than help them, robot- in 2014,” predicts Bruno work you won’t have a positive experi- the younger generations, to schools and to ics technology has progressed rapidly Maisonnier, CEO and founder ence with the robot,” he says. developing countries where it would not in recent years, with the conversation Aldebaran, founded in 2005, has sold more than 5,000 of its first product, a 58-cm-tall humanoid robot RoboSavvy has instead decided to be possible due to cost,” says Schweitzer. shifting to the question of when we will of France’s Aldebaran Robotics, called Nao (pronounced “now”). concentrate on the entertainment and While the structural parts can be printed, have humanoid robots in the home rather a scheduled speaker at research side of robotics. Schweitzer electronics and the motors have to be ac- than if it will happen. says that for the foreseeable future, to be quired. He says the total cost of the material “The revolution will begin in 2014,” LeWeb. “Many people think an ing understanding the nuances of human has 350 employees in France, Boston, Nao voice recognition and text-to-speech be about 1.5 meters tall and is designed financially sustainable a robot has to meet to produce a small humanoid robot through predicts Bruno Maisonnier, CEO and affordable humanoid robot that body language. He says he will worry later Shanghai and Tokyo and had sales of €8 technology developed by Massachusetts- to help people who are not completely the needs of one of those two markets. 3D printing would be about $1,000. Getting founder of France’s Aldebaran Robot- about making sure that a robot can cook million in 2011, €18 million last year and based Nuance Communications. Alde- autonomous. Almost half of the €10 mil- RoboSavvy is also meshing robotics with from that small humanoid robot to a large ics, a scheduled speaker at LeWeb. “Many can do useful things is not close, and do the laundry. the forecast is for €35 million this year. baran, which was already using an earlier lion budget to develop Romeo, the first of 3D printing, its other line of business, in one that can function effectively as a servant people think an affordable humanoid ro- maybe in ten years they say. I’m “We need to have a robot you want to While Aldebaran puts the finishing version of the American company’s voice which will ship earlier next year, has been a bid to reduce production and mainte- in the home is still far off, Schweitzer says. bot that can do useful things is not close, have at home, that you accept, that you are touches on a version of Nao for the gen- recognition technology, says the new subsidized by the French government nance costs. But that doesn’t mean we won’t be maybe in ten years they say. I’m happy all happy all those people are not ready to interact with,” says Maisonnier. eral public, the robot, which can see, hear, agreement will let people have a more with several other companies working friending robots in the next 10 years. those people are not entering this field.” entering this field.” “Too many people are focused only on speak, communicate and walk, is already natural conversation with robots in 19 on the project as well. Maisonnier sees RoboSavvy recently developed a small Maisonnier’s bullishness is not shared usage and utility. I’m not in agreement being used to help children with autism languages. Nao robots with the new Nu- Nao and Romeo as intermediate steps “The plan is to take advanced robot that can interact with humans by by everybody in the industry. One of those with this trend. If you want a robot it’s not break down the communication barriers ance technology will ship early next year. on the way to realizing a humanoid robot gleaning information from Facebook. The who say much more time is needed is robot that already fills some of the roles about left-brain usage (logic and analyt- that often make it difficult, if not impos- “Developing natural, conversational for the home. robotics away from the Ivy robot asks the person to become his friend Limor Schweitzer, who founded Ro- one might expect in the home such as ics). What’s important in life is dialogue sible, for them to interact with people. interactions with humanoid robots is a Aldebaran has made a massive push League of MIT and the labs on Facebook after which he plays music boSavvy in 2004 and has made a name for getting a drink when asked, but its cost and emotion. Our goal is a robot that is a Researchers have found that autistic kids challenging and pioneering area of robot- forward in the past year thanks to an the person likes and makes comments his London-based company thanks to a makes it unfit for the consumer market. companion and partner, that is kind to often have an intrinsic interest in technol- ics,” Maisonnier said when the agreement influx of funds from Japan’s SoftBank, that have all the money based on information in the profile. It small prototype humanoid dancing robot “The Honda robot is terrific, but it you, that loves you.” ogy and can interact with a robot in a way with Nuance was announced. “Our robots which bought 75% of Aldebaran in 2012 and bring it to the younger can be as innocuous as a complimentary named Fonzie. Schweitzer says Fonzie costs $1 million and you can’t have ro- Aldebaran, founded in 2005, has sold that is initially impossible for them to do have to express and understand emotions from pre-existing investors including remark about the city you live in or as proved it could be done, but going from bots in the home at that price,” says Mai- more than 5,000 of its first product, with people. The idea is to use the robot and for this there needs to be expression Intel Capital and iSource for a reported generations, to schools and personal as, “I’m sorry you are no longer there to building a large humanoid robot sonnier, winner in 2012 of the Marius a 58-cm-tall humanoid robot called to teach autistic children how to read and in their voice that speaks to their person- $100 million. That allowed Maisonnier to to developing countries in a relationship, but you are invited to a that can do useful functions in the home Lavet Prize, which is awarded yearly Nao (pronounced “now”) which is react to the confusing social and emo- ality, and matches their body language.” hire more people to ramp up production party at my place on Friday night.” and won’t require a large mortgage to buy to a French person whose innovation is being used in some 500 universities tional cues that people without autism Nao costs about $15,000 though Mai- and accelerate development. where it would not be If Aldebaran and RoboSavvy are right, is still a way off. acknowledged as a technical and com- and research labs including Harvard take for granted. sonnier expects Aldebaran will soon be Maisonnier concedes there are dif- possible due to cost,” says it’s a safe bet that in the future many of “As you increase the size of a robot mercial breakthrough. and Brown in the U.S., Ecole Nation- In a sign of the importance Maisonnier selling humanoid robots that costs less ficulties in reaching the promised land us will not only be interacting with hu- the cost goes up exponentially because To contain costs, Maisonnier is keying ale Supérieure des Arts et Métiers in puts on the human interaction side of his than a third of that price. of the affordable humanoid robot for the Limor Schweitzer, founder of manoid robots, but “liking” them as well. it has to sustain its own weight,” says on creating a robot that can have mean- France, KAIST in Korea, and Univer- humanoid robot plans, in October Alde- Aldebaran is leading a project to build consumer market, the most arduous of U.K.-based RoboSavvy. Schweitzer. “They can be dangerous due ingful interactions with humans, includ- sity of Tsukuba in Japan. The company baran said it would begin integrating into a bigger robot called Romeo, which will which is integrating seamlessly the more

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CONTINUED FROM PAGE 07 and other payment methods. The percent- it focuses on deliveries for businesses While investing in Russian e-com- a major new release every two or three age varies for other of Ozon’s businesses. rather than consumers. The Russian post merce companies is capital intensive, the How Going Social Helped eToro Scale months,” says Assia. “But after OpenBook PayPal announced in September that it office, which is often criticized for being potential payoff is much bigger. “You can launched we had to learn how to do new is making a big push into the Russian mar- too slow and losing packages, delivers fundamentally enhance the way consum- releases very frequently — once every week ket, signing up 13 big Russian e-commerce about 10% of Ozon’s orders. It has 42,000 ers live their lives by providing them ac- Its Online Stock Trading Business or at least once every two weeks. You have players, including Ozon and KupiVIP. outlets across Russia so there will always cess to goods and services,” says Sonali to constantly change the features. Remov- It has been possible to open a PayPal be a need for it to make deliveries in out- de Rycker, a partner at Accel Partners ing is even more important than adding. account in Russia for several years, but of-the-way places. “We are more than in London and a scheduled speaker at eToro founder and chief product officer Ronen Assia The whole company had to do that much only in U.S. dollars. In May the company welcoming efforts by the Russian Post LeWeb. “In Russia, which is the largest more efficiently. It is very different than was granted a license by the Central Bank Office to improve its level of service,” land mass in the world and has over eight developing a trading system — especially of Russia to accept payment in rubles. says Gavet. “But we believe there is a need time zones, this is not trivial. E-commerce now with the introduction of mobile.” for an alternative delivery system and we is really an enabler as it will allow the eToro went from processing 50,000 eToro began as a desktop application, believe we are the company that needs next generation of consumers to climb up transactions a day to north of a million. then moved onto the Web and then onto "You can fundamentally to build that.” in social economic status. It will change “All of the growth was attributed to the mobile. “So, unlike a company that starts While some third-party private com- the way people in smaller cities shop. All 'copy trader' feature,” says Assia. with mobile or is mobile only we had to enhance the way consumers panies offer delivery at the regional or of the companies that figure out how to The platform had an immediate appeal take big products with lots of functional- live their lives by providing them national level, “none of them offer deliv- do that long term are going to prosper. for digital natives, who would never visit ity and features built in and be very fo- ery nationwide at the level of coverage The barriers to entry in Russia, given their parents’ stockbroker but were open cused about how to minimize and turn access to goods and services," and quality we expect,” says Gavet. This the complexity of delivery and cash on to learning from their peers. Before the the mobile product into something that says Sonali de Rycker, a partner is what Ozon can offer. We can do it.” delivery payment, are so significant that social trading platform was introduced is very eToro-ian,” says Assia. “It meant at Accel Partners in London and In the future, Ozon expects as much as if a company can get to profitability on eToro offered broker-like functionality putting lots of product managers into a An employee selects books in one of 30% of orders delivered by its O-Courier the back of these challenges it will most with some social features layered on top. room and having quite heated discussions a scheduled speaker at LeWeb. Ozon’s warehouses. delivery infrastructure to be generated by certainly be durable.” Trades had to be done manually — users about which features get included in the “In Russia, which is the largest third-party companies. De Rycker, who led Accel’s investment clicked a button to buy or sell. But once minimum viable product and which ones While e-commerce companies in Rus- in KupiVIP, says the market is at a tipping the social platform was introduced users get thrown out. There is lots of stuff on land mass in the world and has Many Russians don’t have credit cards sia would appear to be natural customers, point. “Russian consumers are relatively could click “copy” and then all of the trades the desktop that is not available on the and those who do are reluctant to pay some are building their own infrastruc- spoiled,” she says. “Given the competition made by the person being copied would mobile. We had to look at it from the per- over eight time zones, this is BY JENNIFER L. SCHENKER upfront for goods they haven’t received. ture. For example, online fashion retailer in the market many of them are able to en- automatically be mimicked. “This really spective of, ‘what is the experience that not trivial. E-commerce is really Gavet says she sees services like PayPal KupiVIP is doing so because it wants to joy free delivery and even more, the ability stretched our system to the limit,” says As- the user will look for when they want to an enabler as it will allow the having a limited impact on the market control the level of customer service at the to literally ‘try before they buy,’ while the Every start-up dreams of the day when digital native novices to try stock trading sia. “We spent lots of sleepless nights at the log in from a mobile device? What is the over the next 10 years. “I don’t know if point of delivery, says KupiVIP founder driver waits at the door. Because it is so traffic to its website will jump from by allowing them to see what others are office adding more servers, more network essence of what they need and want?’” next generation of consumers these systems are going to be widely used and CEO Oskar Hartmann, a speaker painless, the pace of e-commerce adop- thousands to millions. But, as the old investing in and then copy them. eToro lines and of course, hiring new people.” eToro appears to have gotten the for- to climb up in social economic in future; it very much depends on how e- on the November 26th Moscow panel tion is accelerating and once you get this proverb says, be careful what you wish pays the traders who allow themselves Recruiting good people is a real chal- mula right. It now has more than three commerce evolves here,” she says. “Why moderated by Informilo. The company generation of consumers hooked, online for because it just might come true. Em- to be followed up to $7,500 per month lenge, says Assia. “I am here seven years million traders in more than 200 coun- status. It will change the way trust PayPal more than Ozon?” has said publicly that it is seeking to raise will be the dominant way this and the next bracing social media technology can to encourage them to share information. and 30% of my time every week is dedicat- tries and its users have performed just people in smaller cities shop.” Ozon believes it has an edge not just in $125 million in an initial public offering generation of consumers shop in Russia.” force a tech start-up to scale overnight, The theory — which is now being backed ed to interviewing job candidates. When shy of 100 million trades since January payments but also in handling deliveries. in 2014 to fund warehouse construction as eToro discovered in the summer of up by research at MIT's Media Lab — is you launch a company you think about all of 2012. Growth in mobile usage has shot Although DHL has operations in Russia and expand its own delivery network. 2011, when it first launched its social that sharing info in social networking the things you have to do — write a busi- up over 30% since the beginning of the stock-trading product. communities can significantly boost stock ness plan, raise money, but you never take year. Eleven percent of eToro’s active A big focus at LeWeb, an annual In- trading returns. into account how difficult it is to find good user base trades via mobile devices. And ternet conference in Paris, is on how big “When we launched we did not know if people.” eToro’s head count was around there is no doubt that the use of mobile brands are embracing social media (see 90% of our users would want to do social 80 people when it launched OpenBook devices will increase as users demand the article on pages 8 and 9). Start-ups trades or less than a tenth of one percent,” in the summer of 2011. Today some 240 anytime, anywhere access to all services, need to do the same and have challenges says founder and chief product officer people work for the company. including stock trading, keeping Assia Source: McKinsey iConsumer Survey 2012 ONLINE RUSSIAN PURCHASES of their own. The story of how eToro, Ronen Assia, who was interviewed for One of the things eToro learned is that and his engineering team busy with new which has raised $31.5 million in venture this article. It turned out to be the former. when you launch a cutting-edge product on scaling challenges for some time to come. capital, coped with a huge surge in traffic Social stock trading proved to be a hit the Web you have to stay alert to changes and tripling the number of its employees with millennials and within 18 months in the marketplace. “Before, we would do IN THE PAST 3 MONTHS, HOW MANY TIMES HAVE YOU BOUGHT SOMETHING ON THE INTERNET? THIS INCLUDES DOWNLOADED in a compressed time period, provides MUSIC,VIDEOS, GAMES, IN ADDITION TO OTHER PRODUCTS AND SERVICES (E.G. CLOTHES, SHOES) insights that could prove useful to other European and Israeli companies that go social and have to scale fast. Growth in the number of eToro Active Users Source: eToro “Social is forcing start-ups to scale at HAVE NOT PURCHASED ONLINE 40 IN THE PAST 3 MONTHS a much earlier stage,” says Ronen Assia, who co-founded eToro in 2007 with his 200000 brother Yoni and David Ring. “It used to 1 TIME 16 be that companies could decide on the pace of scaling and control it but now 150000 2 TIMES 16 with social media functionality you can suddenly get hundreds of thousands or more of new users overnight and if your 3 TIMES 10 site can’t accommodate them without 78% IN 100000 60% WESTERN crashing they will move on.” eToro EUROPE 4 TIMES 5 At launch, eToro, which splits its op- OpenBook erations between London and Tel Aviv, launched had a chat feature, but most users chose 5 TIMES 3 to guard their anonymity and keep their 50000 trades secret. By 2011 the site — which never gave investment advice — was han- MORE THAN 5 TIMES 10 dling around 50,000 trades a day. Then eToro decided to make a bold move. It in- 0 troduced OpenBook, a social trading platform that allows users to follow and copy 31/07/2010 31/01/2011 30/11/2010 31/01/2010 30/11/2008 31/01/2009 31/03/2011 31/07/2011 31/05/2010 31/07/2013 31/03/2010 31/07/2012 31/03/2009 30/11/2011 31/01/2012 30/09/2010 30/09/2008 31/05/2011 30/11/2012 31/01/2013 31/07/2008 31/05/2013 31/07/2009 31/05/2012 30/11/2007 31/03/2012 31/01/2008 30/11/2009 30/09/2011 30/09/2013 31/03/2013 31/05/2008 31/05/2009 31/03/2008 30/09/2012 30/09/2007 other traders in real time. eToro enables 30/09/2009

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The collaborative economy is expected to prompt businesses across sectors to radically change their BACK TO THE FUTURE business models over the next 10 years. In 2006, Informilo founder and of the World Wide Web consor- editor-in-chief Jennifer L. Schen- tium and former vice president of ful efficiencies but there have been ker was the international editor Internet technology at IBM. some quite severe side effects, such as wrenching changes in employment. of the Red Herring. In April of that Google Chief Internet Evangelist So now, he says, we need to figure out year she wrote and researched Vint Cerf, who is widely known as what we will create with the next wave a cover story, with the help of one of the fathers of the Internet of change, disruption, and innovation. Red Herring reporters, called Net for his role in co-designing the Tech entrepreneurs “need to think big- 2016: The Web 10 Years After. TCP/IP protocol and the Inter- ger to figure out what is important to us and make sure we are working towards Since LeWeb is this year focusing net’s architecture, predicted that that,” he says. “Think about what could on what the Internet will look like everything from the family fridge happen if we could take the creativity 10 years from now we thought it to the office coffee pot — as well and drive that Travis Kalanick (another would be interesting to see what as heating, cooling and secu- Jeremiah Owyang scheduled speaker at LeWeb) put into industry luminaries were predict- rity systems — will be managed Chief Catalyst, Crowd building Uber and put that kind of en- Companies ergy into solving problems like hunger ing the Web would look like in through the Internet, possibly and pollution.” 2016, some eight years ago. Some using souped-up mobile phones The only constant is change, says were amazingly prescient. None doubling as universal remote Mouldovan. And it is coming at a faster of these predictions have come to controls. and faster pace. “The one thing we can pass but a few are on the cusp of Tools for content production will CONTINUED FROM COVER regulated so there is much less experi- control is whether we will steer it in a way mentation. So change is likely to trickle that is going to make a real difference to being realized and may very well evolve to allow for widespread and fessionals such as doctors, radiologists down from the universities and happen the world we live in,” he says, and create be reality two years from now. uniform tagging of content, signifi- and ultrasound technicians risk being on the fringes.” a better future. Others still seem further out but cantly improving our ability to use supplanted by automation as will others It is important that an overhaul of may come true by 2023. sensor data, financial information, in jobs that require less training, such as the educational system does not take Electronics will be woven into our medical data, text, imagery, video factory workers and bus drivers. too long. “We are in a race that involves clothing and written directly to and audio, he said in 2006. He In the U.S. alone some 100,000 deaths the increasingly fast pace of technology Source: Crowd Companies have been attributed to medical errors, and how fast people can pick up new our retinas from eyeglasses and also expected there to be much wrong drugs or the wrong diagnosis. As skills,” says Naam. “What happens to a space with the help of some $2 billion as gifts, in expectation of donations, a retinas, predicted inventor, entre- more organic connection between Grinda points out, IBM’s Watson is al- 45-year-old taxi driver when driverless in venture capital. promise for customers to come back later, Your Social preneur, author and futurist Ray people and technology and painted ready better at diagnosing certain types vehicles are introduced? People have As more and more consumers endorse to receive something as barter, or for no Investment Network Kurzweil. “Devices will no longer the following scenario, for just of cancers than doctors are. to be able to retrain fast enough. We the concept of renting rather than own- reason at all. “Crazy? Not really, consum- be spokes on the Internet — they two years from now: You’ve just “Watson can help improve the quality need to revamp education so that it is ing, traditional businesses will have to ers are already doing this, and businesses of life and lower the costs in the U.S. but not just for people aged five to 22 but get used to offering services rather than must often model consumer behaviors to will be the nodes themselves,” he come out of surgery and are being there are huge institutional barriers to for people of all ages.” selling products. “BestBuy, Audi, P&G, stay relevant,” he says. said at the time. pushed down the hospital corridor that,” says Naam. “Physicians don’t want Businesses also face radical transfor- will offer products for rent or lease — Some of the same approaches that Bandwidth access of 100 on a gurney toward the recov- to use medical artificial intelligence even mation as power shifts away from insti- not ownership or consumption, Owyang companies are using to seek solutions megabits per second or more will ery room. The nurses know you when it is superior.” tutions to customers, says Forrester’s says in a blog post. “Service-based com- to difficult commercial problems or sim- become the norm and “everyone are on the way because a radio Radiologists, who today earn high sala- Colony. “It will be imperative for companies like Manpower, Kelly Services, ply to improve their products could be ries in the U.S., could become redundant, panies to build extraordinary customer H&R Block, may all need to develop used to tackle some of the world’s most will be able to have a full-motion, frequency identification (RFID) tag as could ultrasound technicians. In some experiences,” says Colony. methods that allow for independents to urgent problems. high-definition real-time link to on your plastic patient identi- cases software reads results more accu- Crowd Companies’ Owyang could not be involved in the workforce, extending There is a chance to harness technol- anyone,” Bram Cohen, creator of fication bracelet automatically rately. In other cases it does a reason- agree more. “All companies must radically the model to peer-to-peer-based services ogy to have a real impact on the world, the popular peer-to-peer program generated an alert to the nursing ably good job. “This could bring huge alter their business models to adapt,” he markets where they take a margin cut. rather than creating another way to Bit Torrent, said when interviewed station. The doctor doing rounds benefits as it could be possible for the says. “I am suggesting they don’t have Even the hospitality space is impacted. shoot animals on our mobile phones in 2006. Once that happens “the checks the Internet to monitor first time to deploy X-ray machines and a choice.” Expect companies like Hyatt, Marriott, or the next iteration of Instagram. “I ultrasound machines in the developing That message appears to be resonat- Hilton, to not only rent rooms at their want to challenge people in the audi- concept of who is online and who your vital signs. As always, the world,” says Naam. “The local midwife ing with large companies. At LeWeb, hotels, but to certify individual home ence at LeWeb,” says Brian Solis, prin- Connect With Over is offline will melt away,” said implants in your body are beaming may not be as good or as well trained as Owyang will announce the launch of owners’ houses to be rented out on sec- cipal at Altimeter Group, a research Bradley Horowitz, then Yahoo’s real-time information about your an ultrasound technician but it is a huge Brand Council, a group whose member- ondary market exchanges like Airbnb ... firm focused on disruptive technology. director of media and desktop brain waves and blood pressure step up from what they had before, which ship already includes GE, Home Depot, or create their own market.” In short, “Instead of focusing on the innovator’s 3 Million Users search, now VP of product at to a protected web site 24/7. Your was nothing.” American Eagle, Autodesk and Ford. businesses will have to embrace collabo- dilemma that Clayton Christensen de- The whole educational system will The idea is that big brands pay member- rative creation. scribes I want people to focus on being Google and a scheduled speaker daughter, who is on a different also be disrupted. “There is a huge role ship fees to access private events and “They have to allow customers to be- the dilemma’s innovator — to look at That's how people invest today - at LeWeb. continent, is already whispering for teachers as mentors, facilitators, peo- presentations about the collaborative come part of the company, to create and world and societal problems and figure People will be able to talk to the words of encouragement into your ple who can answer questions, but there economy, to learn from each other, and to revenue share,” says Owyang. This will out how to fix them using innovation join the revolution! Internet when searching for infor- ear — thanks to an embedded needs to be an inversion of what happens to meet selective start-ups that agree to mean that the line between customers and to make the world as they know it and mation or interacting with various speech processor equipped with in the classroom today, ” says Naam. “It provide content and possibly do busi- employees will continue to blur. What is life as they know it better.” may make more sense for students to ness with the corporations. the benefit to the business? A company’s Start-up advisor and investor Alex- www.eToro.com devices — and it will respond, 802.11 wireless technology, TCP/ watch the lectures at home on their de- Owyang predicts that companies in capital expenditure goes down because ander Mouldovan, another scheduled though not necessarily in English, IP communications protocol, and vices and use the classroom to interact,” just about every vertical will end up the crowd is helping improve the product, speaker at LeWeb, will promote a simi- eToro (Europe) Ltd., a Financial Services Company authorized and regulated by the Cyprus which will cease to be the domi- specialized software that allows he says. “The big barrier here is not the embracing new collaborative consump- he says. The company can then extend lar message. Technological advances Securities Exchange Commission (CySEC) under the license # 109/10. Past performance is nant language on the Web, said sound from the Internet to flow technology — it is the institutions. Uni- tion and creation models. Many will its brand to the products it approves and were supposed to increase production not an indication of future results. Also, leveraged products can carry a high degree of risk. versities are more open to experimental end up partnering with or acquiring take a commission. and create wealth and leisure, but that eToro oﬀers protective measures to manage risk eﬀectively, but in rare occasions it is possible John Patrick, a founding member directly into your cochlea. to lose more money than invested. ideas. [Grades] K-12 [are] less dynamic; some of the more than 200 start-ups In more radical use cases, Owyang says is not how it played out, says Moul - there is zero competition and it is highly that have recently launched in this brands may give away products for free dovan. The Web has spread wonder-

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