Traveling Geeks

DishyMix: Susan Bratton Podcasts & Blogs Famous Executives 2009-07-20 20:22:12

One of the most impressive companies with whom I met earlier this month in England on the Traveling Geeks tour was Basekit. Founded by three Welshman and now being headed by Juan Lobato, Basekit is an evolutionary step in technology for web designers and developers. Basekit is a web site builder and content management system; a better way to create web sites. It is a live online (cloud hosted) browser based application that enables the creation, deployment and management of dynamic CMS web sites for businesses.

Basekit Executives

Their are many template-drive and drag and drop form builders as part of the application, but the process that allows a designer to import photoshop (.psd) files directly into Basekit to create a ‘template’ seems to me to be the most valuable and time saving attribute of this very helpful site creation tool. Now a designer doesn’t need to code their designs into html / css templates – Basekit does it all for them. Users can then access the CSS / HTML from within Basekit (if they wish), once Basekit has transformed their design into a flexible web template.

Here’s my Q&A with Richard Best.

Tell me a little about yourself and how you founded Basekit :
Basekit – head office in Chepstow, South Wales.
Simon Best ( CTO & co-founder ) – age 30, Welsh.
Richard Best ( Commercial Director & co-founder ) – age 33, Welsh.
Richard Healy ( Lead Developer & co-founder ) – age 27, English.
Juan Lobato ( CEO ) – age 36, Spanish.
Simon and Richard Best set up their first web tech business in 2002 – with Richard Healy joining in 2003. The 3 of us went into business together in 2005, setting up a web agency which worked both on internal web tech projects and external SME web site projects.
Juan joined the team at the start of April 2009, bringing commercial management experience mixed with an additional injection of entrepreneurial flair.
We started to develop the Basekit concept in 2006. The Basekit concept was founded out of our experiences building web sites for SME businesses. We noticed that many of the small business sites we created for customers had very similar features, and the vision of BaseKit was to make it really simple to build these sites. We initially developed Basekit with a view to using it internally; but quickly realised its potential as a product in its own right.
Having developed a working prototype, we entered Seedcamp 2008 and ended up as one of 7 winners out of some 400 European web tech companies. Since then we have secured investment from 2 top European VC’s, and grown the company from 3, to 8 full time employees.
We are looking forward to launching our public Beta in September 2009.

Note: If you are a US web designer/developer and interested in being involved in the private beta, send an email to me at susan at personallifemedia dot com and I’ll introduce you to Richard.
Where did you get the idea? How has the product evolved today from your original concept?
We created BaseKit out of our belief that typical web 2.0 development should be quick and easy, and should not require complex coding skills. The idea sprung from our desire to complete more web site projects, in less time – without compromising quality. By moving the focus away from coding, Basekit users are able to focus on the visual aesthetic qualities of their web projects – making them look better, and work better.
Traditional web development processes are disjointed and convoluted – and surprisingly ‘offline’. We believe web sites (of all things) should be created ‘in the web’.
The Basekit product has evolved from an early prototype (taken to Seedcamp 2008) – which despite displaying some impressive qualities and results, had a very steep learning curve. We now have a much more rounded product, with a highly intuitive and easy to use interface. We have focused a lot of attention on usability – and consistently score higher in usability tests than our closest competitors.

Describe the Basekit service.
Basekit is a state of the art web site builder and content management system; a better way to create web sites. It is a live online (cloud hosted) browser based application that enables the creation, deployment and management of dynamic CMS web sites for businesses. It has been described as, ‘a web builder with an injection of superjuice’!
Basekit will enable users to go further without code than ever before – without compromising flexibility.

Tell us how it works.
It works via an intuitive point and click, drag n drop interface making the creation and management of functional and dynamic business web sites quicker and easier. The ‘coding’ elements are taken care of by Basekit, and become trivial – therefore the user is able to focus on the design / layout of the web site resulting in a better looking, more effective end result.
We believe that ‘web sites’ should be created on ‘the web’. With Basekit, what you see really is what you get – you edit web sites live online in true context.
What features are most used and least used of the feature set now?
This is a difficult question to answer, as we are currently in a private Beta testing stage, running set on site weekly user testing sessions with a range of delegates.
We have some really neat and unique features such as :

i)    A process whereby a user can import photoshop (.psd) files directly into Basekit to create a ‘template’. This means that users do not need to code their designs into html / css templates – Basekit does it all for you! Users can then access the CSS / HTML from within Basekit (if they wish), once Basekit has transformed their design into a flexible web template.
ii)    Custom web forms can be created in a fraction of the time, simply by dropping the individual form fields into the page. Basekit automatically sets up a back end (MySQL) database – so that all form submissions are stored in the ‘back end’ of your site. This data can then, of course, be used dynamically.
iii)    Instant database creation. Create databases in Basekit simply by copying and pasting data from an excel spreadsheet. It really is that easy! Again, this data can then be used / displayed dynamically.

Who are your target customers? Be as specific as possible.
Our primary market research has shown that most small businesses currently source the creation of their web site through ‘web designers’ (74%).
Basekit was initially conceptualised and created out of our own needs (as a small web agency) to create, deploy and manage small business web sites in a quicker, easier and more effective way.
Therefore, our go to market strategy will initially be focussed around the ‘web designer’ channel. For them, Basekit is a faster and better way to create, deploy and manage small business web sites. The Basekit platform is flexible enough to accommodate existing web design workflows and can enable web professionals to do more with the capabilities they have.
Basekit delivers particular benefits to the ‘designer’ end of web designers – with Basekit helping them to focus on the visual aesthetic qualities of the web sites they create, with all dynamic coding elements taken care of for them.
In addition to the web designer channel, we can also target small business segments directly either with a Do It Yourself web builder offering for the 26% of ‘tech savvy’ small businesses that favour this method, or as an assisted set up service where we act as web designer rapidly deploying small business web sites at an increased monthly fee.
What’s the #1 reason your customers will use your service?
There are many reasons why people will use Basekit, but the number one reason is that it is an ‘enabling’ technology. It ‘enables’ users to create dynamic, functional web sites quicker and easier than ever before – without having to write a line of code (although for the coders out there, access to code is ‘optional’ !).
What are the first features you hope to launch? What’s the feature roadmap?
We have a very defined set of features that we are in the process of implementing for our public Beta launch in September 2009. We have deliberately held back on locking our feature roadmap beyond that point, as the important thing for us will be listening to our users and developing the features that matter to them.
Who are your competitors?
We truly believe that there is no direct comparative to Basekit. But, we have identified our 3 closest competitors as Square Space, Light CMS and Goodbarry.
What do you need from the market to be successful?
Lots of delighted users, who LOVE Basekit so much they tell all their friends!
On a serious note, we feel strongly that the market is ready for Basekit; in fact it is well over due! We built Basekit out of a genuine need – a need which others can relate to. Web development should not be so hard, and Basekit is here to make it much easier and much quicker.
We hope that in the future people will look back and wonder what life was like before Basekit.
How are you doing on funding?
We have secured funding from 2 top European VC’s – who have not only helped to finance the company, but also provide invaluable support to the business on an operational and strategic level.
We are looking to bring in a further funding partner by November 2009.
What is your business model? How will you monetize?
Basekit is free to try and free to use to develop a prototype web site. Once a user deploys a web site, a monthly subscription fee (per site) is charged. This fee is similar to existing hosting fees, therefore we are not creating a new market but rather being a disruptive substitution for traditional hosting models.
The monthly fee paid per web site deployed in Basekit increases as new features are added to their basic package (e.g. capability to update content, email marketing, promotion, eAccounting etc.). Once web sites are deployed in Basekit the switching costs are always above the price sensitivity of substitutive offers making the lifetime value of each web site high. In fact, we estimate that the net present value of each web site deployed could be more than £1,000.
What kind of US partners would help grow your business faster?
The ideal US partners for us would be people / companies that have either :
a)    Cracked the US SME market.
and / or
b)    Cracked the US web designer market / channel.
and / or
c)    Has a major sphere of influence over either of the above.

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Skimlinks UK Start Up Rewrites Affiliate Links on the Fly for Content Publishers and Bloggers #TG2009

On my Traveling Geeks blogger junket to the UK earlier this month, one of the most impressive start ups I met was a company called Skimlinks. Founder Alicia Navarro’s business model is solid and she provides a real value to publishers and content creators who want to easily include affiliate links on their site. Here’s an interview Alicia and I did as a wrap up for you.

Tell me a little about yourself and how you founded SkimLinks.
I have always yearned to run my own business, and had studied IT and worked in internet application product management in order to learn what I needed to achieve this. While in an interview for a job at Google that I didn’t want, I was asked to come up with a product idea. I started talking about a social decision-making tool, and I loved the idea so much I started Skimbit the next day. Skimbit didn’t do amazingly well on its own, and went through a few iterations, and during this process we came up with a way to reverse engineer affiliate marketing links from user-generated content. This technology became so popular we decided to change our business strategy and focus exclusively on this and other technologies that helped publishers monetise their content. Thus Skimlinks was born!

Note from Susan: The sign of a good entrepreneur is one who alters their business model until they find the right set of offerings and revenue. Alicia is proving she can do this.

Describe the SkimLinks service.
Skimlinks is a simplified affiliate marketing service for publishers. It automates the process of creating and maintaining affiliate links on your site. It aggregates 19 affiliate networks and 11,000 merchant programs into one account, giving publishers instant access to every affiliate program. Publishers just need to add one line of code into their site footer once, and their whole site, including all archival content is immediately enabled. Publishers do what they normally do: write posts and link to retailer products, eg. a review on a pair of shoes and then linking to the shoes on Macys.com. Then when a user clicks on this link to Macy’s, Skimlinks checks to see if the link can be turned into an affiliate link, and if it can, it automatically turns the link into its equivalent affiliate link on-the-fly. Its seamless to the user, and means all your archival content is monetised and kept up to date always, without any effort on behalf of the publisher.

Note from Susan: Though I can’t vouch for how easy it actually is for a publisher to integrate the “one line of code” on their site, I am very impressed with the way Skimlinks automatically changes a direct link into an affiliate link on the fly. This makes the user experience on the site much better.

Alicia Navarro, Founder, Skimlinks

What features are most used and least used of the feature set now?
The most used feature is to use Skimlinks on user-generated content, like social bookmarking, social shopping and forum sites. As we have a custom subdomain feature, we can make Skimlinks look completely internal to your site; and as we don’t rewrite the links until they are clicked on, there is no impact on page load, and the links don’t appear to be affiliate links increasingly chances of clickthroughs.

What’s the #1 reason publishers use your service?
Publishers use our service because they want to earn revenue from their site in an easy way. Rather than spend their own time working out the complexities of creating and maintaining affiliate links, they can focus 100% of their time and effort on their content and their community, and outsource their affiliate management to a company that can do it more efficiently and with the best technology.

What are the next features you hope to launch?
We are in the process of launching our innovative Global feed (one single aggregated global product feed and API) and SkimKit (editorial toolkit to help journalists and bloggers research products), both of which help publishers add more content that can be monetised on their site.

Note from Susan: I’d like to see Skimlinks integrated with Zemanta, another start up I met in London on the TG2009 tour. Zemanta is installed in my WordPress software now and gives me related images, links and online articles I can easily drag and drop into my blog posts. If I had Skimlinks as part of this, I could also easily add affiliate links into my blog posts. Putting more add ons into my current WordPress set up always worries me. I’d like to see more partnerships and wider integration, rather than a bunch of stand alone features from different companies.

Who are your competitors?
Our main competitor is a publisher doing their own affiliate marketing, although increasingly we are getting more and more existing affiliates using Skimlinks because it makes them more efficient and lets them focus on their core competencies: content, SEO, and community.

What do you need from the market to be successful?
There are changes afoot in Europe to force publishers to explicitly disclose if they use affiliate marketing – this would have a big impact on the industry. We are instead supportive of publishers retaining editorial integrity as they use affiliate marketing, and disclosing it within certain sections of their site.

Alicia Navarro, founder, Skimlinks at the US/UK Seedcamp SpeedDating Event

How are you doing on funding?
We are lucky to be funded by some great companies: Sussex Place Ventures, The Accelerator Group, and NESTA, plus some great Angels.

What is your business model? How will you monetize?
We retain a small revenue share of what we make the publishers, but above and beyond our technology, you get attentive account managers who help you maximise your revenues;  you get access to our innovative research and optimisation tools; and we help publishers get voucher codes and discount information to offer their readers, so its a very value-rich service we offer.

Note from Susan: I like the percentage model of Skimlinks and they are smart to include a human optimization element so they increase usage of their features and become a must-have part of a publisher’s revenue model.

What kind of US partners would help grow your business faster?
We like to talk to all sorts of publishers that want to start earning money from affiliate marketing. We are keen to speak to publishers that already have a lot of retailer links, even in their user-generated content, but also from sites that want to create their own ‘related products’ widgets using our Global feed, as we can now help them too.

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Blonde 2.0 Tries Hard to Get Me in Trouble

One thing I've noticed during my six months of jet-setting is that entrepreneurs around the world want to be compared to Silicon Valley, but frequently get upset when you do it. Michael Arrington jokingly asks how I intend to piss off a whole country this time before I leave for any trip. (At least, I think he's joking…)

So, note the tap dancing below as Ayelet Noff asks me to compare Silicon Valley entrepreneurs to London entrepreneurs and Israeli entrepreneurs.

Wonga: How the Net Should Kill the Finance Industry

[Cross-posted from TechCrunch]

What’s awesome about the Internet is how it breaks up monopolistic markets where middlemen unfairly gobble up outsized fees, leaving us little choice but to keep paying them. It happened with software, it happened with music, and it’s happening now with media. But there are a few sectors of our economy that have stayed mostly undisrupted—one of them is banking.

Sure there are companies like eTrade that opened up the market for buying and selling stocks. But it didn’t fundamentally change the market that much, it just moved part of it online. The thought for a long time was that banks needed to be too controlled, too regulated to be turned over to the Wild West of the Net. Then the credit meltdown hit and we saw just how reckless these so-called safe and regulated institutions were.

The time is right for the Web to unleash its full market-destroying power on the finance world and while I was in the UK I found a company making a promising start: Wonga.

Now, Wonga would hardly say its role is to upend the world’s financial institutions. But it’s one of the most dramatic examples I’ve seen of a Web company using what the Web does well to remake lending.

Wonga gives people a way to borrow small amounts of money quickly, between £50 and £200 for first time borrowers to be repaid between five days and 30 days. (Returning customers with a good repayment record can borrow up to £750.) A would be borrower gives Wonga just eight pieces of personal data online, and its algorithms find 1800 data points based on that within 2 seconds, making a rapid decision about whether that person is a good or bad short term credit risk. If approved, the money is wired into the borrower's account within the hour. And, the borrower gets to decide when to repay the money, with no penalty for early repayment. One of the most notable things about the UI is a sliding scale, which shows exactly what fees someone would owe Wonga for every dollar borrowed and extra day before its repaid. No fine print and formulas to calculate; the cost of every dollar you borrow is calculated for you.

Wonga was founded by Errol Damelin, a serial entrepreneur who previously started a supply chain software company named Supply Chain Connect. He sold that company in 2005 and decided he didn’t want to build another enterprise software business. (Smart move.) So he traveled around the world looking for ideas. In the U.S. he became captivated with payday lending companies—an industry of strip mall storefronts that generates a whopping $12 billion in fees.

There was a clear demand for short-term loans to tide people over or take care of emergencies. But it was a polarizing industry, seen as predatory and exploitative. Damelin spent more than a year digging into it, and brainstorming with well-known UK angel investor Robin Klein on how to rethink it and make it better.

Two things excite me most about Wonga. The first is that it isn’t peer-to-peer lending. Peer-to-peer lending in a social sense, like Kiva, is one thing, but I’m not convinced peer-to-peer lending for profit works or scales. It feels a bit like trying to apply Web 2.0 ethos of wisdom of the crowds and social networking somewhere that it just doesn’t fit. Instead, Wonga has raised $28 million from Balderton Capital, Greylock Ventures, Accel Partners and Dawn Capital and is loaning out its own cash. In its first year of business it did more than 100,000 loans, for an average of £250 each, and it’s already profitable. “This is the best business I’ve ever been in,” Damelin says.

Second, it’s the first time I’m aware of that a bank that has actually aligned its incentives with what’s right for the customer. Put another way: Wonga makes its money when you repay the loan, not by keeping you in debt longer. Think about it: Credit card companies make the most of their money from people just able to make their minimum payments every month. And payday advance chains make most of their money by rolling over your debt to the next payday.

Critics have said that Wonga is usurious by charging a 1% interest fee per day. But that’s a knee-jerk response. Wonga is simply charging a premium because it allows borrowers quicker access to cash than any other service, the same way a town car is going to charge you more than a cab off the street. And because it only makes money when a borrower repays the amount, there are no tricks to keep you in debt longer. Wonga’s ideal customer is someone who uses the service two to three times a year and always repays on time, Damelin says. If more financial institutions had this basic orientation to doing business, we wouldn’t have had the credit meltdown because people would have known exactly the risks of agreeing to ARMs and zero-down mortgages.

Sure, you can say Wonga is dangerous because it's giving people an easier way to live outside their means. But that's a bit like arguing giving kids condoms encourages teenage sex. You can't change human behavior, but you can help make people safer.

Now here’s the downside on Wonga: It’s only available in the UK, and it will likely stay that way thanks to a bevy of licenses and regulations entailed in getting near the finance sector. It’s even worse in the US, where each state has its own laws. Even a copy cat business might be cost-prohibitive in the U.S. because of all the state-by-state regulations and red-tape.

As our taxpayer dollars continue to bail out the same lousy institutions, it’ll take innovators like Wonga to force real change in the finance world. But in this country, it’ll need an assist from the government as well.

Why Zynga Is Worried about Playfish

[Cross-posted from TechCrunch]

When I wrote my BusinessWeek column on Zynga a while back, every venture capitalist in the Valley told me that Playdom was the company’s biggest competitor.

After all, it competes game-to-game, with similar mob-style and
poker games, and was said to be doing the same revenues as Zynga with
much higher profitability. (As my column pointed out, Zynga’s revenues
are more like double Playdom’s—and since I’ve heard the discrepancy is
even greater.)

As you’d expect Zynga’s CEO Mark Pincus pooh-poohed Playdom as any
sort of threat. But tellingly, he said the company he was worried about
was UK-based Playfish. So, while I was across the pond, I decided to
see what the fuss was about and sat down with Playfish’s founder and
CEO Kristian Segerstrale. I came away convinced this was one of the
hottest companies to watch in the UK. Here are five reasons why.

1. Not “The UK Zynga.” Playfish is very much running its own
race in this market, and this may be a case where distance from the
Valley is actually healthy. It doesn’t try to compete on specific games
with Playdom, SGN, and Zynga. For instance, it doesn’t have a mob game,
the most popular genre right now, and it doesn’t have a poker game,
Zynga’s top earner. “That’s such short term thinking,” Segerstrale
said. “Something is wrong if your route to success is copying
competitors’ games.”

2. Platform Development Doesn’t Have to Mean Half-Ass Development.
Playfish is not about building a game in a week or so and throwing it
up on Facebook. Playfish spends six months to a year designing a game,
and they’ve only produced seven of them. While everyone else talks up
how quickly and cheaply you can build a game on social networks,
Playfish still employs the same artistic discipline of a console game
with a Wii-like look and feel. The plus with platforms like Facebook
and the iPhone isn’t speed to market for Playfish, it’s easier
distribution and greater social engagement.

3. Traction. The painstaking design process appears to be a
hit. Every one of Playfish’s games has been a top ten hit on Facebook.
Across all platforms, those seven games have yielded 100 million
installs and 30 million monthly uniques, says Segerstrale. Playfish
pays “practically nothing” for customer acquisition and makes money
through virtual goods, ads and premium versions of games.

Playfish is profitable and hasn’t spent a dime of its recent $17
million funding round. That’s gotta be some top line given Playfish has
200 employees across several offices. In fact, TechCrunch Europe’s Mike
Butcher speculated that
Playfish could be the $1 million-dollar-a-month Facebook app maker,
back in September 2008. It certainly puts the company in an enviable
position given the paucity of venture funds in the UK.

4. Proximity to the Valley Insiders via Investors. While
Playfish enjoys distance from the one-ups-man-ship or developer
poaching of SGN, Playdom and Zynga, it’s connected into the Valley
where it counts. One of its main investors is Accel—also one of the
main backers of Facebook. Yes, that matters. (See Sequoia
Capital-backed Google’s purchase of Sequoia Capital-backed YouTube.)

5. Segerstrale Knows Games. This is the fuzziest one, but
also probably the most important. As a CEO, Segerstrale comes to this
industry from a different point of view than Pincus. Pincus has said he
was never really much of a gamer—Segerstrale on the other hand has
loved games since he was three years old playing Pong with his older
brother. He always got a visceral rush from playing, especially with
other people. So he’s spent much of his career working towards two
goals: Decoding what makes a game “fun” and deconstructing the concept
of a “gamer” so games are just something everyone plays.

His first attempt was at mobile, thinking that with phones in every
pocket, everyone would essentially have a game console. Indeed, the
company he cofounded, Glu Mobile, went on to a successful IPO. But
gaming was still a niche activity on phones.  There were too many
barriers set up by the telcos and it wasn’t as easy for people to find
and download games. Facebook turned out to be a much greater platform
for this kind of democratization of gaming because users could market
games to one another.

Segerstrale’s macro theory is that we’re in the first shift of a
move from physical games and goods to digital ones, and from games as a
product to games as a service. It’s a theory that seems right-on to me.
For one thing, we already saw it with the transition from enterprise
software to software as a service. For another, sales of console games
are down 20% year-over-year according to NPD, while comScore says
social gaming is up 20% year-over-year. It’s nice to see a CEO who can
articulate not only a product vision, but a clear industry vision.

All the positives above aside, I’m still not convinced that
Segerstrale will succeed in his mission to democratize games. I still
mainly use Facebook as a way to connect with friends, not to build
virtual restaurants and I don’t necessarily see that changing. In fact,
Facebook has so de-emphasized apps in its new all-feed iteration, I
spent nearly an hour trying to find a listing of games, before someone
finally told me it was on the throw-away bottom bar of the profile
page. And by emphasizing the social stickiness of a game, there’s a
chicken-and-egg risk that the games are boring for people who don’t
have enough friends already playing.

But these are execution risks and every promising startup has them.
When it comes to business model, financing, vision and product,
Playfish is certainly a formidable competitor to Zynga. With hundreds
of millions in real dollars already swarming around social gaming, this
will be fun space to watch.

UK Entrepreneurs: Get Your Funding While You Still Can

[Cross-posted from TechCrunch]

You think you have it bad,
Mr.-Silicon-Valley-entrepreneur-trolling-Sand-Hilll-Road-for-cash? Try
life on the other side of the pond.

Out of 39 firms that were active investors in British start-ups over
the last five years, only thirteen venture firms have £5 million or
more left in their coffers to invest, according to NESTA, the UK agency that advocates for start-ups and also sponsored the recent Traveling Geeks blogger tour.

That’s right: All but thirteen firms in the United Kingdom are
either completely tapped out or have committed the rest of their funds
for follow-on investments in existing portfolio companies. In total,
NESTA estimates there’s about £400 million left that’s uncommitted
among the thirteen, with only half of that available for brand-new
series A deals. To put that into perspective, there’s roughly the same
amount of money in the fund Marc Andreessen just closed than there is for new companies in the entire United Kingdom right now.

This is coinciding with a precipitous drop in UK firms closing on
new funds thanks to the global credit crunch. In 2008, only seven firms
closed new funds, and NESTA expects fundraising to be even weaker in
2009.

As most people know, I’m a pretty big advocate of the idea that many
of the next great high-growth companies will be founded outside of the
U.S., but these stats starkly demonstrate a undeniable advantage of
being Valley-based. Even when fundraising slows and VCs save bigger
reserves than usual for current investments, there are still billions
sloshing around to fund new deals. Sure, it’s hard during times like
these even in the Valley, but raising venture capital should be hard.

As with most research reports on the venture business, it’s the
trend line that’s important to note here. It’s probable that NESTA
isn’t counting a firm here or there. But it can’t be too far off.
Indeed, the stat explains a lot of the anecdotal evidence that hit me
in the face as soon as I arrived in London two weeks ago. Many of the
entrepreneurs who’d pitched me on my last visit to London in November
have already shuttered their companies and were unsure of what to do
next. I have exactly one friend in Silicon Valley who has been forced
to that point.

Even the good UK early stage names are struggling to close deals. It took AlertMe—a hot energy home monitoring company that won The TechCrunch Europa
for best clean tech company last week—a whopping nine months to raise
money almost landing the company in bankruptcy. (Index Ventures and
others finally snapped up the deal a few months ago.) “I don’t want to go through that again,” the very polite and British CEO Pilgrim Beart demurred.

It’s that kind of bleak desperation that lead the infamous Paul Carr to pronounce the UK Internet scene dead….just before his own column in the Guardian became its own victim of the economy a few days later. (See Mr. Butcher's TechCrunchEurope rebuttal here.)

Indeed “the scene” may be dead, but there’s an upside here. The
companies that are still around have a much greater emphasis than
Valley companies on making money. The Traveling Geek contingent went to
Accel’s London office to meet with a handful of start-ups, and each one
emphasized revenue and profits in their five-minute elevator pitches.

One that caught me by surprise was Michael Smith’s Moshi Monsters,
a social network/ virtual game for kids. Cute idea, but sounds like it
should be road kill in this environment, right? Nope. Its revenues are
growing 35% month-over-month, it has 85% gross margins, and just five
months after launching the site is cash flow positive. Nicely done,
gents. (BTW, Smith isn’t all business. His house was the setting of those famous Scoble pictures…)

Indeed, there’s always something healthy about startups having to
work within constraints. There will be fewer of them, but it’s possible
that the companies that make it in this environment could well make up
one of the most promising crops of UK companies we’ve ever seen. After
all, Skype was laughed out of VCs’ offices when it started in the wake
of the dot com bust.

In the coming days, I’ll be writing several more posts about the London companies that impressed me the most. Stay tuned.

Renee Blodgett & Sarah Lacy discuss the London Tech Scene

While participating in the Traveling Geeks week in London, and checking out the start-up scene in the UK, I had the opportunity to interview a few of my fellow travelers about their impressions of the London tech scene. In between our busy schedule, I appreciated the chance to speak to Renee Blodgett and Sarah Lacy.

Renee Blodgett is the CEO of Magic Sauce Media, a strategic communications, social media, and branding consultancy, co-founder of Traveling Geeks, founder and producer of We Blog the World, a blog dedicated to global storytelling and the latest developments in social, cultural and technology trends and blogger of Down the Avenue .

Renee discusses the difference between UK and Silicon Valley start ups. Her impression of the London tech scene, after having previously lived in England, was that the UK is not really a start-up culture. They are more reserved and still trying to get their head around social media and remain reliant on traditional media, like radio and television. According to Blodgett, the UK is not really a start-up culture.

Sarah Lacy is the author of Once You’re Lucky, Twice You’re Good: The Rebirth of Silicon Valley and the Rise of Web 2.0. She is also Editor At Large at TechCrunch, a reporter for BusinessWeek, and also co-hosts the Yahoo! Tech Ticker.

Lacy provides some important insights on the current state of the economy. She points out that UK-based start ups are feeling the consequences of the economic downtown far more than start ups in Silicon Valley. A long-time observer of the UK tech scene, Lacy has seen that many start ups have failed, yet there is definitely potential to excel. Several companies have done very well. What is the secret to their success? A strong business model, concern for metrics, and a focus on profitability. Lacy also agrees with Blodgett that the UK isn’t as into social media. While Israelis love social media and are relentless, the British are more reserved and restrained.

An Interview with Zemanta’s Tori & Qype’s Hunter

Talking to Zemanta’s Andraz Tori and Qype’s Andrew Hunter. Click play to hear their story.

A Chat with BT Openzone’s Chris Bruce

Below I’m chatting with BT Openzone’s CEO Chris Bruce at the top of BT Tower in London last week during a dinner BT hosted for the Traveling Geeks.

We used their dongles on the road from London to Cambridge and back again. It’s essentially the equivalent of the Verizon EVDO card I have for my Thinkpad.

£9.99 gives you the dongle and works for people who have a Home Broadband (ADSL) Option 3 connection – with 1Gig 3G access for 18 months and an array of other features including unlimited wifi.

Prices for other packages vary depending of amount of 3G Gigs per monthly usage and features of the ADSL broadband.

For pure pre-pay customers, the cost of the dongle cannot be covered by a monthly usage charge and so the cost is obviously higher.

UK Diary: Friday – Cambridge Startups

http://www.youtube.com/watch?v=uo_aUaJlAFA

Friday and the Traveling Geeks are in Cambridge, the innovation capital of Europe.

After presentations by Cambridge university representatives and also from government agencies helping startups, the Traveling Geeks take part in a panel and also hear presentations from local startups.