It’s a strict rule in the venture business that you don’t fund two direct competitors, for obvious reasons. There’s a massive difference between the valuation of the number one player in the market (think YouTube) and the number two player (think any of the other hundreds of online video companies launched in the mid-2000s). It’s in a venture capitalist’s best interest to make his presence on a board of directors a competitive advantage, otherwise he’s just a checkbook and checkbooks are interchangeable in an industry with too much money floating around. Two companies can’t very well have the same competitive advantage.

So yesterday’s announcement that Andreessen Horowitz was following up a seed investment with a venture investment in Dalton Caldwell and Bryan Berg’s new company Picplz was a bit of a surprise, given the firm’s existing investment in Halloween-costume-capturing-darling Instagram. The two are essentially direct competitors. I asked Marc Andreessen about it today, and he was quick to point out that’s not how the two started, and if they had the firm wouldn’t have invested in both of them.

What’s more– now that the firm has made the decision to do a venture capital round in Picplz, it has essentially picked between the two. Without another pivot, the firm will not make another investment in Instagram, he said. Already, Andreessen Horowitz didn’t have a board seat in the company, and it will become an even more passive investment for the firm as a result of the Picplz deal. “This kind of stuff happens all the time. Entrepreneurs are like heat-seeking-missles; they gravitate towards good opportunities,” Andreessen says. “It’s less of a choice against Kevin and Instagram as it was we were just very excited about working with Dalton.”

Andreessen had nothing but kind words for Instagram’s founders, giving them credit for pivoting away from the original vision, as we wrote about here. The company was originally called Burbn and was a larger, more vague iPhone app that the team worked on for a year, and then mostly tossed out in favor of the part they liked, which wound up being Instagram.

Picplz has hewed closer to its original plan, although the vision is much larger. “We’re taking a big swing here,” Caldwell said on the phone today. So far, the entrepreneurs are mum on details– understandable given the bruising experience with their previous company Imeem. But the idea is to build something in the vein of Zynga, Slide or ngmoco, a company that leverages a common technology stack, distribution network and monetization engine to roll out lots of apps built by a network of small teams. That makes it less surprising this is the company Andreessen Horowitz picked. The firm prefers big potential homerun companies, not so much solitary iPhone apps.

It’s gotta be awkward though. And given the huge increase in seed funding this kind of thing will happen more and more.

Bookmark It

Hide Sites

Today during the Web 2.0 Summit in San Francisco, DailyBooth CEO Brian Pokorny took the stage to talk a bit about “picture talking” — that is, social communication through photos. Obviously, Pokorny believes this is a key form of communication amongst the younger generation. But he’s not the only one. Mobile photo sharing apps are getting a lot of buzz and gaining a lot of users now.

But Pokorny has an interesting insight as to why DailyBooth is different from the rest of the pack. In Pokorny’s view, the hot apps like Instagram, Picplz, and Path are “back of the phone apps”. What he means by that is that their users mainly use the back camera on their smartphones. But new smartphones are increasingly gaining a front-facing camera too. And that’s DailyBooth’s wheelhouse.

Further, he said that back of the phone apps mainly appeal to users over 25. Front of the phone apps are appealing to those under 25. And back of the phone apps are mainly for shooting objects. But front of the phone apps are for faces.

Pokorny says that these front of the phone apps like DailyBooth are opening up a whole new way to socialize in the modern world. It’s sort of like the older generations going into a bar or cafe — it’s people watching, Pokorny says.

And he says companies like Apple are quickly recognizing that, and that’s why they’ve added a front-facing camera to devices like the iPod touch.

Bookmark It

Hide Sites

White-hot microblogging startup Twitter has tongues wagging again, as rumors continue to swirl that the startup will soon lead a new round of financing with an estimated valuation of around $3 billion.

TechCrunch first reported the story. A Twitter spokesperson told VentureBeat, “We don’t comment on rumors.”

Perhaps Twitter founder Evan Williams, who is slated to speak around 4:45 Pacific time today at the industry’s Web 2.0 Summit in San Francisco, will shed some light on the subject?

So far, Twitter raised more than $100 million in Sept 2009 when it was only valued at $1 billion, so one can likely expect any subsequent round to net them a much larger chunk of change. All told, the company has raised about $160 million since its founding in 2007 and has been growing by leaps and bounds.

The startup has nearly tripled in size since June. It has since signaled it is looking for new headquarters in San Francisco’s SOMA district but has not yet announced where its flock will eventually land.

Rumored investors in any new round of funding include early tech adopter and venture capital Russian firm DST, who has put stakes in Zynga, Groupon and Facebook.

DST’s founder, Yuri Milner, declined to discuss at yesterday’s Web 2.0 whether the firm would be funding Twitter, though he did say he had 20 or 30 large private companies that could be on his potential investment list, with a focus on social and internet companies.

Google has also been rumored to be interested in buying Twitter lock, stock and barrel for around $5 billion, though neither company would comment on that tidbit.

Still, it is clear that even without visible and vocal investors expressing interest in any offering, the appetite for Twitter shares remains keen.

Funds set up by various firms to buy stock from Twitter employees on the secondary market have recently closed sales at prices as high as $1.6 billion for bigger deals, reported TechCrunch, with smaller ones reaping even higher pricing.

New York-based Felix Investments, which was launched in 2009 by the former New York head of venture capital co-investment firm Advanced Equities, has been named as one of the funds currently following super-angel Chris Sacca in this backdoor approach to grabbing up Twitter shares. Felix currently has no affiliation with Advanced Equities.

Bookmark It

Hide Sites

How to Buy a Digital Photo Frame

By: PJ Jacobowitz ,Zach Honig

Old school picture frames are solast century. After all, they don’t do much more than show off one shot (that you have to print). Snore. Digital photo frames, on the other hand, let you create slideshows with cool transitions to display all of your vacation pics. And some of these handy devices integrate video, audio, Wi-Fi, and a host of other features. The best part? LCD technology is finally becoming affordable enough for these frames to be had at fairly reasonable prices. Sure, you can land a killer deal on a solid frame, but you need to know what to look for. Here are five rules to follow to help you pick the perfect digital picture frame.

Rule 1: Consider the User
Some of the picture frames we’ve reviewed, such as the $250 Sony VAIO Wi-Fi Photo Frame VGF-CP1, have fancy features like full Web browsers, streaming Internet radio, and text news feeds. Wi-Fi-enabled photo frames often cost considerably more than those that only display local content. Web-connected features can also add complicated menu options that may be confusing to novice users. If you’re focused on viewing photos and little else, it’s probably best to keep extra features to a minimum; you’ll also save money that way.

On the other hand, more sophisticated users will enjoy Web-enabled features, such as the ability to e-mail photos to the frame or see up-to-date weather forecasts. Our latest Editor’s Choice, the well-connected, easy-to-use Toshiba DMF82XKU 8″ Digital Media Frame($180) can stream images from a variety of sources through a Web service , which lets you upload images online and also displays photos from Picasa, Facebook, and other sources.

Rule 2: Don’t Buy Based on Brand Name Alone
The HP DreamScreen 100 has a big brand name and a big price tag to match—$250—but just because a frame is expensive and comes from a reputable manufacturer doesn’t automatically make it a winner. Though images looked great on the DreamScreen, in our tests, the user interface was slow—images took as long as 9 seconds to load. Always make sure to check performance by reading reviews before you buy.

On the flip side, the lesser-known Pandigital uses an excellent display in its  8″ PanTouch Clear Digital Photo Frame, a touch-enabled model that has video support and delivers good-looking images. The frame also offers a wide color gamut and an intuitive touch experience for less than half the price of the HP DreamScreen.

Rule 3: Never Settle for a Resolution Below 640 by 480—Regardless of Price
Rock-bottom prices on some frames, such as the  Cenomax F7024B 7-inch Digital Photo Frame, may render them mighty attractive, but beware of subpar images. This frame’s resolution of 480 by 234 pixels is too low to display details, so most of its images look boxy and pixelated—no bargain! Only consider frames with a resolution of 640 by 480 or higher.

Rule 4: Select Your Aspect Ratio
Photo frames typically support either a 4:3 or 15:9 aspect ratio. By default, most point-and-shoot digital cameras capture photos in 4:3. A frame with an aspect ratio of 4:3 will be the best fit for your photos, as 15:9 frames will have to crop a piece of the top and bottom of your photos to fit the image on the LCD. On the flip side, a 15:9 aspect ratio gives your images a pleasing widescreen feel. One of our favorite frames, the $120 Sony DPF-D70 7″ Digital Photo Frame, displays in 15:9. That, together with its slick design and intuitive software, makes it look and feel like a mini HDTV.

Rule 5: Images Are Only Part of the Picture
Superior image quality isn’t the most important feature to everyone. Sure, you want to see your pictures clearly and sharply, but there’s more to consider. Do you need an accelerometer so you can use the frame in both portrait and landscape mode? Do you want to watch video in addition to viewing photos? Do you want to set your photo slideshows to music? This might seem like common sense, but not all frames are created equal; if there’s a must-have feature on your list, check the specs before you buy.

Start by reading our reviews of the latest models, and be sure to follow our rules as you shop for a digital picture frame.

Bookmark It

Hide Sites

iLounge reports that Panasonic has launched a new digital photo frame, the MW-20, which features an iPhone/iPod dock. It really does sound like a state of the art piece of kit, featuring a 9-inch high-resolution screen, 5.6-mm Super Slim Semi Dome Speaker, SD card slot, 2GB of internal storage, built-in digital signal processor for improved sound, and an environmentally conscious power-saving feature, with a luminance sensor that adjust the brightness of the screen automatically depending on how well-lit the room is. It will even shut itself off if the room is dark. As far as the actual iPhone/iPod touch dock attatchment is concerned, it not only charges your device, it also plays back your iPhone photos, videos and music. Here’s David Fisher, product manager, Imaging, Panasonic, talking about the frame:

Bookmark It

Hide Sites

In an article today on AppleInsider, Josh Ong details changes in the upcoming iOS 4.2 software update. One small detail caught my eye: There’s an option to enter an Apple ID username and password in the MobileMe setting. It’s a subtle addition, but it might just be the seed of a revolution in personal computing.

Apple appears to be encouraging MobileMe subscribers to connect their accounts with their Apple ID. 

It looks like Apple is making it possible for iOS-device owners to use MobileMe by signing-in with their Apple IDs – and perhaps, tie together their existing accounts. In this one small step lies the key to an amazing array of functionality.

The Apple ID is used in many places: on the desktop for authorising a Mac/PC with an iTunes account, in the iTunes Store for making purchases, setting-up and using a Ping (and perhaps, one day soon, Facebook) account, storing and sharing documents on iWork.com, and using FaceTime on the Mac as a core account (with MobileMe or other email addresses added afterward). It’s also used when making purchases from the Apple online store. In time, it’s safe to assume it’ll be used on the upcoming Mac App Store, too.

MobileMe, on the other hand, is used primarily to synchronise email, contacts and calendars, along with bookmarks and, if you like, System Preferences and even Keychains across Macs.

So, to echo Steve Jobs, What if an Apple ID and a MobileMe account got together? I think the offspring would be nothing less than revolutionary.

Next Steps

An AppleID/MobileMe hybrid brings the Apple universe together, both on the Mac and on iOS devices. I suspect next summer’s release of Mac OS X 10.7 Lion may prove to be the final leap from today’s sort-of-connected world, to an always-connected world, where the simple rule is: Wherever you can use your Apple ID, you have access to your Email, Contacts, Calendars, Bookmarks, Music, Movies, Pictures, Ping, all your iWork documents and all the software you ever bought in both the iOS and Mac App Stores. All of it ready to be streamed or downloaded, some of it automatically, most of it on-demand.

If the new MacBook Air truly is the future of MacBooks, it’s a much more likely future. If we want our notebooks to be thin, light and go for days on a single charge, we must be prepared to ditch today’s optical and hard drives. Flash storage can fill the gap, but it’s too expensive to store all the media users want access to. Streaming data, therefore, presents the best next step, practically and economically, in personal computing.

If you’ve ever bought a Mac and enjoyed the experience of seeing your MobileMe data populate your Address Book, iCal and Mail apps, imagine being able to take the process much further, and watch all your software, multimedia and personal documents also become available… all because you signed-in with a single username and password. Authentication could even be handled by your iPhone, if rumors prove true.

There’s nothing really comparable to this on other platforms and for ordinary consumers. Windows Live connects Microsoft’s Hotmail, Photo Gallery, Skydrive and a few other services in a loose manner, but it’s pretty fragmented and doesn’t show signs of becoming a cohesive solution any time soon. Google’s ecosystem is a strong contender but remains devoid of the spit-and-polish and ease-of-use for which Apple’s products are famous.

Of course, for all of this to be a practical and reliable really would require a truly enormous state of the art data center. If only Apple had something like that…

The Work Does Itself

This is also, incidentally, why Apple will never buy Dropbox: They don’t need to. Dropbox is a service that depends on users manipulating data directly in the file system, and that’s a paradigm Apple wants ordinary users to abandon.

In this hypothetical (and, I can’t help think, inevitable) scenario, Apple will provide its customers with ample cloud-based storage as they need it. Users may well enjoy dozens of gigabytes of storage, but never know it. Nor would they ever need to know it. They’ll know only what matters: that they can stream their iTunes library to their devices quickly and in high quality, that their photos are available anywhere they have a connection to the Internet, that the Keynote presentation they started this morning on their MacBook can be finished this afternoon on their iPad without the painful export/import silliness they suffer today.

Connecting the Apple ID with MobileMe is, at least for consumers, the first step toward an exciting new future, one for which Apple has been building the foundations since .Mac was launched in 2002. The pieces are almost all in place, and with Apple’s massive new data center online and Lion available next summer, I think we’re about to experience the most transformative personal computing revolution since the Macintosh itself

Bookmark It

Hide Sites

Let’s take a minute to think about how technology, and the eStarling frame in particular, has changed our lives in the past 20 years. A lot of things are different. Sifting through shoeboxes of old photographs is a fond memory of mine as a youngster growing up in the 1990′s.

But who would do this now? It seems that, in a flash, photography and the way we view our photos was changed forever. Now that we can instantly capture and share our photos and videos, it m

The eStarling digital frame is on the cutting edge of this continual change, pushing the boundaries of sharing and social into new places. I can only image the kind of technology that we will have when the eStarling seems “outdated”.

Bookmark It

Hide Sites