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MetaFilter -
4 minutes ago
a href="http://www.nytimes.com/2008/10/12/travel/12mynewyork.html?em=amp;pagewanted=all"My New
York/a : artists, writers, professionals, and New Yorkers of all stripes talk about what they look
forward to seeing in the city this fall. br /
|
Joystiq -
6 minutes ago
pFiled under: a href="http://www.joystiq.com/category/pc/" rel="tag"PC/a, a
href="http://www.joystiq.com/category/xbox360/" rel="tag"Microsoft Xbox 360/a, a
href="http://www.joystiq.com/category/firstpersonshooters/" rel="tag"First Person Shooters/a/pdiv
align="center"a href="http://www.edge-online.com/news/latest-left-4-dead-demo-details"img
hspace="0" border="1" vspace="4" alt=""
src="http://www.blogcdn.com/www.joystiq.com/media/2008/10/gam_left4deadzombie_490.jpg" //abr //div
Yes, a href="http://www.joystiq.com/2008/09/11/valves-newell-confirms-left-4-dead-demo/"we already
knew/a that there would be a demo for Valve's upcoming co-op zombie survival sim, ema
href="http://www.joystiq.com/search/?q=Left%204%20Dead"Left 4 Dead/a/em. Therefore, we're not
terribly surprised by a href="http://www.edge-online.com/news/latest-left-4-dead-demo-details"Gabe
Newell's comment to Edge/a that the demo (which will allow one to four survivors to play through an
early part of the game's campaign) would be dropping in "early November" -- after all, the game is
due out on PC and Xbox 360 on November 18, so a preview period of a couple weeks would have been a
logical estimation. br /br /Why, then, would we choose to post on this particular announcement?
It's simple, really -- to keep the seemingly inevitable, emreal-life/em Zombocalypse at the
forefront of your mind. Seriously, it's coming, people. a
href="http://armorgames.com/play/1443/the-last-stand-2"Make your arrangements/a.p style="clear:
both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"nbsp;/ppa
href=http://www.edge-online.com/news/latest-left-4-dead-demo-detailsRead/anbsp;|nbsp;a
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MetaFilter -
12 minutes ago
a href="http://www.pbs.org/moyers/journal/10102008/watch.html"Bill Moyers interviews George Soros
on the financial crisis./a Soros discusses market fundamentalism and the causes of the current
crisis, as well as what can be done, and how this meltdown will change the global economy. small(a
href="http://bigpicture.typepad.com/comments/2008/10/george-soros-on.html#more"via/a a
href="http://bigpicture.typepad.com/"The Big Picture/a)/small br / It begins with Moyers violating
the behavioral norms of modern journalism:blockquoteIn the interest of full disclosure, you should
know that I served three years on the board of George Soros' foundation, the Open Society
Institute, dealing with such issues as a free press, the rule of law, and human rights. But I've
had no involvement in his political activities and nothing to do, with his business interests
unfortunately./blockquote
|
Read/WriteWeb -
14 minutes ago
pimg src="http://www.readwriteweb.com/images/rww_preso_mar08.jpg" /As the world financial crisis
has gotten gradually worse over the past few weeks, I've been pondering what this means for the
Web. ReadWriteWeb as a publication focuses on emstrongtechnology/strong/em - web products and
trends - rather than business and VC happenings. So with the exception of one of our feature
writers a href="http://www.readwriteweb.com/about_bernardlunn.php"Bernard Lunn/a, who has written a
number of great posts on how a
href="http://www.readwriteweb.com/archives/web_20_gritty_entrepreneur.php"entrepreneurs/a can a
href="http://www.readwriteweb.com/archives/entrepreneurs_credit_crisis.php"survive/a this period,
we've generally kept out of the Credit Crisis discussion thus far. /p pBut we're clearly now at a
point where the financial problems of the world will have stronga big impact on where Web
Technology is headed/strong. Indeed, it looks like we've arrived at one of those giant inflexion
points - where one Web era is usurped by another. /p p align="right"emSponsor/embr /a
href='http://d.openx.org/ck.php?n=12136amp;cb=12136' target='_blank'img
src='http://d.openx.org/avw.php?zoneid=861amp;cb=12136amp;n=12136' border='0' alt='' align="right"
//a/p pOf course this last happened when Web 2.0 was coined by O'Reilly Media in about 2004.
Luckily not long before that ReadWriteWeb was born (early 2003). So ReadWriteWeb has been
documenting Web 2.0 ever since. Over the past couple of years, we've been focusing on other,
perhaps more meaningful, trends - Semantic Web, recommendation technologies, web sites becoming web
services, Mobile Web and more. We've documented these meta trends in a number of big posts, some of
which are in our a href="http://www.readwriteweb.com/bestof.php"Best of ReadWriteWeb/a page and
copied here:/p ul lia
href="http://www.readwriteweb.com/archives/web_technology_trends_for_2008_1.php"Web Technology
Trends for 2008 and Beyond/a/li lia
href="http://www.readwriteweb.com/archives/toolkit-08.php"What's Next on the Web: a ReadWriteWeb
Toolkit for 2008/a/li lia href="http://www.readwriteweb.com/archives/2008_web_predictions.php"2008
Web Predictions/a/li lia href="http://www.readwriteweb.com/archives/10_future_web_trends.php"10
Future Web Trends/a/li lia
href="http://www.readwriteweb.com/archives/10_more_future_web_trends.php"10 More Future Web
Trends/a/li /ul h2The Welcome Return of Innovation/h2 pAlthough we'll continue to see the success
stories of web 2.0 grow and perhaps prosper - social networking, mashups, user generated content,
etc - strongnow is the time for innovation/strong. I'm not stating anything revolutionary there,
because it's an old cliche that tech innovation thrives in times of recession. a
href="http://radar.oreilly.com/2008/10/effect-of-the-depression-on-te.html"Nat Torkington of
O'Reilly Radar/a put this into the context of web 2.0 recently:/p blockquote pquot;During boom
times, companies direct development and occupy great talent with at best evolutionary improvements
over the state of the art. Companies are great chasers of new things, but aren't great at making
new things. A recession means technologists cease to be paid vast amounts to duplicate the work of
others. The Great Tech Bust of Ought Two gave us 37Signals, Flickr, and del.icio.us and there's a
strong argument to be made that many companies spent the next six years chasing what they
created.quot;/p /blockquote pSo we can expect to see a welcome return to web innovation in 2008/09,
along the lines of what Flickr and 37Signals created back in the early days of web 2.0. However web
entrepreneurs will need to make adjustments due to the economic climate. Many people have already
noted that a re-focus on the bottom line of your business is key, which we discuss below. But
perhaps just as importantly, as Nat pointed out, there is an opportunity to take more advantage of
open source technologies and cheaper cloud computing infrastructure. /p h2Yes Tighten Your Belts,
But Open Your Minds Too.../h2 pIn the past week some a
href="http://venturebeat.com/2008/10/10/the-sequoia-rip-good-times-presentation-get-your-copy-here/"high
profile/a a
href="http://gigaom.com/2008/10/09/what-startups-can-learn-from-sequoias-doomsday-warning/"VCs/a
have been preaching belt tightening as the primary response to the economy. More than a few people
have expressed cynicism about this advice, given the hype and party-throwing days of web 2.0. New
York VC Fred Wilson a href="http://www.avc.com/a_vc/2008/10/dont-shoot-the.html"wrote a post
today/a, partly in response to a comment Bernard left on his blog, in which he defends the advice
he and other VCs have been giving since the financial crisis got going. Basically that advice has
been to batten down the hatches, reduce spending and, in Fred's words, quot;acting responsibly and
making sure we all survive to fight another dayquot;./p pIt's all common sense advice, especially
since web 2.0 has been predominantly about consumer apps. I'm certainly no economist, but it makes
sense that in a tight credit market consumer spending will reduce - which will impact heavily on
consumer web apps, and trickle through to other parts of the ecosystem./p pBut I'd love to see
technologists, entrepreneurs and VCs take a longer term view of this crisis as well. a
href="http://www.forbes.com/2008/10/09/mitra-economy-mess-tech-enter-cx_sm_1010economy.html?partner=yahootix"Sramana
Mitra wrote a great post at Forbes/a outlining some of the opportunities for innovation. In an
quot;Open Letter to the Leaders of Silicon Valleyquot;, Sramana first gave some background on the
innovation that led to web 2.0 and followed up with a challenge to create technology for
strongEducation, health care, social security/strong. As an example she wrote about these
opportunities in healthcare and education:/p blockquote pquot;As the smart-phone movement marches
on, led by Steve Jobs' iPhone, can we not create seamless bridges between doctors, patients and
insurance providers that can reduce the $250 billion expenditure in health care administration?/p
pAnd on the Internet, can we not create a body of standardized content and methodology for teachers
all over the U.S.--or the world--that includes parents in the process and engages children via
quot;edutainment,quot; the same way MySpace and quot;World of Warcraftquot; engage kids?quot;/p
/blockquote pTim O'Reilly has been on a similar mission ever since a
href="http://www.readwriteweb.com/archives/tim_oreilly_keynote_web_20_expo_08.php"his speech at the
Web 2.0 Expo/a earlier this year, for startups to tackle 'big challenges'. His a
href="http://radar.oreilly.com/2008/10/tim-in-the-la-times-on-getting.html"core message/a is to
quot;work on stuff that matters.quot;/p h2What's Next... Let Us Know in the Comments!/h2 pWe at
ReadWriteWeb have been covering a
href="http://www.readwriteweb.com/archives/religion_and_web_technology_lifechurch.php"mainstream/a
a href="http://www.readwriteweb.com/archives/beijing_olympics_online_video.php"web applications/a
and things like a href="http://www.readwriteweb.com/archives/practice_fusion.php"health 2.0/a this
year. But we've only just scratched the surface, just have most startups and Internet companies. As
the troubles in the economy begin to affect the tech world, we'll be re-doubling our efforts to
document what we hope is an exciting new era of web innovation. There are tough times ahead, but
equally there are opportunities. /p pIn the best spirit of web 2.0, let's start by asking you to
comment on what opportunities in web technology you forsee over the next year or so. Please leave a
comment and let's get a healthy, optimistic - but realistic - discussion started. To provide a bit
of inspiration, I've embedded below our stock presentation a
href="http://www.readwriteweb.com/archives/web_technology_trends_for_2008_1.php"What's Next on the
Web? Web Technology Trends for 2008 and Beyond/a (circa May 08). Indeed it's time we updated this
presentation, so your suggestions welcome!/p pobject style="margin:0px" width="425"
height="355"param name="movie"
value="http://static.slideshare.net/swf/ssplayer2.swf?doc=rwwpresentationmay08-1212121566162903-9"/param
name="allowFullScreen" value="true"/param name="allowScriptAccess" value="always"/embed
src="http://static.slideshare.net/swf/ssplayer2.swf?doc=rwwpresentationmay08-1212121566162903-9"
type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425"
height="355"/embed/object/p pNote: a
href="http://www.slideshare.net/ricmac/web-technology-trends-for-2008-and-beyond-may-2008-update"
target="_blank"click here/a and then click 'full' (bottom right) to view full screen and enable the
links inside the presentation./p stronga
href="http://www.readwriteweb.com/archives/whats_next_after_web_20.php#comments-open"Discuss/a/strong
pa href="http://feedads.googleadservices.com/~a/FnmoZscSBAC1yEHHU2Pu9j0vl1s/a"img
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|
MetaFilter -
16 minutes ago
The myth persisted over the years until it became real even though the truth was known. Now thanks
to wonder of the net, we find out that Mama Cass did not die from eating a a
href="http://nickelinthemachine.blogspot.com/2008/10/mayfair-and-deaths-of-harry-nilsson.html"Ham/a
a href="http://www.findadeath.com/Deceased/e/Cass%20Elliot/cass_elliot.htm"Sandwich./a NSFW br /
|
MetaFilter -
19 minutes ago
The book artist a href="http://www.colum.edu/Book_and_Paper/Faculty/Clifton_Meador.php"Clifton
Meador/a has dabbled in a few other projects, including a
href="http://www.cliftonmeador.com/ihvdrm.htm"I HV DRM/a, a version of Martin Luther King Jr.'s a
href="http://www.americanrhetoric.com/speeches/mlkihaveadream.htm"historic speech/a delivered at
the 1963 a href="http://www.core-online.org/History/washington_march.htm"March on Washington/a.
Meador's edited out the words, leaving only the pauses and the audience response. quot;We can't
remember the words anymore,quot; he says. br / He's also done something like the reverse, a
href="http://www.cliftonmeador.com/WashingtonCrossing%20the%20Delaware.pdf"recreating/a
emWashington Crossing the Delaware/em [PDF warning] in words, rather than images. br / br / br /
(Meador also makes some of his artist's books available as a
href="http://www.lulu.com/cliftonmeador"print-on-demand/a purchases through Lulu.com. And
quot;Masks of Evilquot; is a free, downloadable artist's book, based on Brecht's poem and directed
at the Bush administration, available on his site.)

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iPod touch Fans forum -
20 minutes ago
two days ago i got my ubuntu hardy 64bit live cd. i installed it and got my video card working
finnally. now im plugged into a wired connection, trying to get my wifi to work. my card shows up
as Atheros AR242x 802.llabg. i cant get it to work with madwifi or ndiswrapper. im using wcid
because i heard its better. alot of times in terminal when i try something it always ends with
something about bad line and blacklist(something like that.)
all i can say is WTF!:eek: can somebody please help me, i really like ubuntu and dont want to swtch
back to xp or vista.
thanks,
weewoot
|
iPod touch Fans forum -
20 minutes ago
I aint expecting much but...
Anyone been to a foam party before? I went to one last night and thought it was awesome.
It was great bubbly fun.
|
Mac Forums - iPod touch -
24 minutes ago
Has anyone been able to download the Office latest episode on the season pass? It's listed in
iTunes but when I click check for available downloads, it tells me all episodes have been
downloaded.
|
Mac Forums - iPod touch -
24 minutes ago
I purchased a xserve recently and I am trying to decide the best way to set up my home office
network. I have the following components:
- Xserve (G5 Dual 2.3ghz)
- Mac Pro (Quad 3ghz)
- 2 iMac (24" Dual 2.8ghz)
- Airport Extreme (gigabit)
The main reason for purchasing the server is because my business partner lives in another state and
I often collaborate with video editors, animators, and artists who are not on-site. I want to
optimize the transfer speeds both locally and remotely. I have a cable internet connection (12down
2up) with a static IP.
1- How should I wire the local network. i.e. cable modem directly to the airport and then from the
airport to all the components, or cable modem to xserve ethernet port 1 and then from port 2 to mac
pro etc...
2- Is there anything I need to know to optimize connections with off site macs? I assume that
establishing a VPN is the only option but I am definitely a rookie so any suggestion, no matter how
basic, will be greatly appreciated. I would like to establish a "permanent" connection with my
business partner and another graphic artist.
3- Any other suggestions/input is appreciated.

|
Mac Forums - iPod touch -
26 minutes ago
Since I reset my router/modem and changed my password, I couldn't connect to the internet on my
ipod touch?
|
Reuters: Top News -
28 minutes ago
DETROIT/NEW YORK (Reuters) - Chrysler LLC has had talks with General Motors Corp about a deal to
combine the No. 1 and No. 3 American automakers at a time when both are struggling to cut costs and
shore up cash, according to three people familiar with the matter. pa
href="http://feedads.googleadservices.com/~a/vxp3pLHp-TkZkFUqJ6ANUuWXZPs/a"img
src="http://feedads.googleadservices.com/~a/vxp3pLHp-TkZkFUqJ6ANUuWXZPs/i" border="0"
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href="http://feeds.reuters.com/~f/reuters/topNews?a=FKsQn4ra"img
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href="http://feeds.reuters.com/~f/reuters/topNews?a=iXETOQcN"img
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src="http://feedproxy.google.com/~f/reuters/topNews?i=Jwsh9eQs" border="0"/img/a /divimg
src="http://feedproxy.google.com/~r/reuters/topNews/~4/hmOHw4zDdpM" height="1" width="1"/

|
MetaFilter -
29 minutes ago
a href="http://www.youtube.com/watch?v=6Gknp-8ltmE"Man sleeps with cat/a br /
|
Autoblog -
33 minutes ago
pFiled under: a href="http://www.autoblog.com/category/supercars/" rel="tag"Supercars/a, a
href="http://www.autoblog.com/category/uk/" rel="tag"UK/a/pp align="center"a
href="http://www.autoblog.com/photos/arash-af10/1091959/"img vspace="4" hspace="4" border="1"
src="http://www.blogcdn.com/www.autoblog.com/media/2008/10/arash-front_web.jpg" alt="" //abr
/strongemfont size="1"Click above for high-res gallery of the Arash AF10/font/em/strong/p
pBritain's history is punctuated in no small part by the proliferation of its cottage industry. And
while the industrial revolution may have taken care of that to a large degree, it's still alive and
thriving in the realm of the supercar. Small independent exotic automakers abound, including names
like Ascari, Ultima, Noble, Farboud, Farbio and Arash, to name just a few. Trying to keep track of
them all is enough to make your head spin, especially when the same guy is behind the latter three.
After selling off Farboud, the a
href="http://www.autoblog.com/2007/06/07/farboud-changes-its-name-to-farbio/"new owners changed the
name to Farbio/a and founder Arash Farboud started a new outfit under his first name. What you see
here are the first proper images of his latest creation, the a
href="http://www.autoblog.com/2006/06/29/farboud-af10-supercar-to-be-at-britain-motor-show/"Arash
AF10/a. /p pThe carbon-fiber body, which (aside from the adjustable front wing) bears a startling
resemblance to the Ferrari Enzo, is laid over a carbon fiber chassis for a sprightly low curb
weight of 1,200kg (about 2,600 lbs). Power is provided by the 7-liter pushrod V8 out of the
Corvette Z06, tuned from the stock 498 hp up to 530 thanks to new intake and exhaust systems,
driving the rear wheels through a manual Graziano gearbox and kept in check by AP Racing brakes.
The supercar is expected to sell for about 170k pounds sterling - a fair bit less than the
pound;220k a Lamborghini Murcielago will cost a British customer - and begin delivery sometime next
year. A sequential gearbox is expected to join the catalog, as well as the potential for dropping
in the supercharged V8 from the Corvette ZR1 a year and a half down the line. In the meantime you
can check it out in the gallery below./p pdiv class="postgallery"pstrongGallery: a
href="http://www.autoblog.com/photos/arash-af10/"Arash AF10/a/strong/pa
href="http://www.autoblog.com/photos/arash-af10/1091959/"img
src="http://www.blogcdn.com/www.autoblog.com/media/2008/10/arash-front_final6_thumbnail.jpg" alt=""
title="" //aa href="http://www.autoblog.com/photos/arash-af10/1091960/"img
src="http://www.blogcdn.com/www.autoblog.com/media/2008/10/arash-rear_final6_thumbnail.jpg" alt=""
title="" //aa href="http://www.autoblog.com/photos/arash-af10/1091961/"img
src="http://www.blogcdn.com/www.autoblog.com/media/2008/10/arash-side_final1_thumbnail.jpg" alt=""
title="" //aa href="http://www.autoblog.com/photos/arash-af10/1091962/"img
src="http://www.blogcdn.com/www.autoblog.com/media/2008/10/arash-side_final4_thumbnail.jpg" alt=""
title="" //a/divbr /[Source: a href="http://www.arashcars.com/index.htm"Arash/a]/ph6 style="clear:
both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"/h6a
href=http://www.arashcars.com/index.htmRead/anbsp;|nbsp;a
href="http://www.autoblog.com/2008/10/11/farbouds-latest-arash-reveals-final-form-of-af10-supercar/"
rel="bookmark" title="Permanent link to this entry"Permalink/anbsp;|nbsp;a
href="http://www.autoblog.com/forward/1339462/" title="Send this entry to a friend via email"Email
this/anbsp;|nbsp;a
href="http://www.autoblog.com/2008/10/11/farbouds-latest-arash-reveals-final-form-of-af10-supercar/#comments"
title="View reader comments on this entry"Comments/a pa
href="http://feeds.autoblog.com/~a/weblogsinc/autoblog?a=AHWP4t"img
src="http://feeds.autoblog.com/~a/weblogsinc/autoblog?i=AHWP4t" border="0"/img/a/pdiv
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src="http://feeds.autoblog.com/~f/weblogsinc/autoblog?i=Rro3m" border="0"/img/a /divimg
src="http://feeds.autoblog.com/~r/weblogsinc/autoblog/~4/418148573" height="1" width="1"/

|
Mac Forums - iPod touch -
35 minutes ago
First thread & post on MacRumors since I just finished signing in.
Besides that, I just want to jump to the point where I use my Playstation EYE for the PS3 to make
videos. When I export my videos from the PS3 via Flashdrive onto the mac, it won't go in iMovie or
play in Quicktime. At this moment, I haven't tried other video applications like Final Cut Pro. I
switched the video format from mp4 to avi but neither. When I click to play the video, a message
comes up saying, "An invalid sample description was found in the movie." Is there any possible way
I can put it on iMovie 08?
|
Joystiq -
36 minutes ago
pFiled under: a href="http://www.joystiq.com/category/wii/" rel="tag"Nintendo Wii/a, a
href="http://www.joystiq.com/category/action/" rel="tag"Action/a/pdiv style="text-align: center;"a
href="http://www.nintendowiifanboy.com/2008/10/10/first-look-at-sonic-and-the-black-knight/"img
hspace="0" border="1" vspace="4"
src="http://www.blogcdn.com/www.joystiq.com/media/2008/10/gam_sonicandtheblackknight_490.jpg"
alt="" //abr //div On July 19, 2008, seismologists across the globe experienced a strange
phenomenon -- the needles on their trusty seismographs began to bounce emever so slightly/em. Some
would blame it on tiny movements in our Earth's tectonic plates. Others would attribute it to
faulty equipment. Those with an active internet connection and a penchant for gaming news, however,
quickly discovered the cause of the activity -- simultaneous, powerful emgroans/em, uttered in
response to a
href="http://www.joystiq.com/2008/07/19/rumor-nintendo-power-to-reveal-wii-exclusive-sonic-and-the-blac/"an
image of Sonic the Hedgehog, brandishing a broadsword/a.br /br /If you were among those who were
hesitant towards yet another emSonic/em title in which the protagonist vanquishes foes, not with
speed and well-timed jumps, but with emweaponry/em, you might want to a
href="http://www.nintendowiifanboy.com/2008/10/10/first-look-at-sonic-and-the-black-knight/"check
out the debut trailer/a for ema
href="http://www.joystiq.com/search/?q=Sonic%20and%20the%20Black%20Knight"Sonic and the Black
Knight/a /emwe've considerately posted after the jump. It looks quite similar to other
post-Dreamcast games featuring the hyperactive hedgehog, only with, you know, a sword. We're a
little puzzled by the trailer's a href="http://www.imdb.com/title/tt0265087/"complete lack of
Martin Lawrence/a, but we're sure he'll make an appearance in future media for the title.pa
href="http://www.joystiq.com/2008/10/11/sonic-and-the-black-knight-and-the-debut-trailer/"
rel="bookmark"Continue reading emSonic and the Black Knight and the debut trailer/em/a/pp
style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding:
0;"nbsp;/ppa
href=http://www.nintendowiifanboy.com/2008/10/10/first-look-at-sonic-and-the-black-knight/Read/anbsp;|nbsp;a
href="http://www.joystiq.com/2008/10/11/sonic-and-the-black-knight-and-the-debut-trailer/"
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Mac Forums - iPod touch -
39 minutes ago
I found this on Flickr.
Not sure if it has someting to do with the 14th, but it looked interesting to discuss about.

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MetaFilter -
39 minutes ago
a href="http://video.google.com/videoplay?docid=-3368948773832597270"Climb Dance/a A short (and
fast) film about a a href="http://en.wikipedia.org/wiki/Pikes_Peak"Pikes Peak/a a
href="http://en.wikipedia.org/wiki/Pikes_Peak_International_Hill_Climb"International Hill Climb/a
run from 1989. small(Warning: Contains a small amount of jazzy piano sandwiched around about five
minutes of very loud high RPM engine revving.)/small br /
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TechCrunch -
40 minutes ago
A lot of criticism has been aimed at venture capitalists the last few days. The VCs are
telling their portfolio companies to get ahead of the curve and conserve
cash right now, and companies are starting to take
their advice.
The criticism is coming from people who don’t understand that the world has changed in the
last week and that companies need to change with it. And so they’re asking why VCs waited
until now to tell everyone to conserve cash. Others are saying the boom is the VCs fault, and for
them to lecture companies on conserving cash is ironic.
Fred Wilson wrote about
this issue today and says VCs have a responsibility to give their best advice to their portfolio
companies: “It’s all about acting responsibly and making sure we all survive to
fight another day.”
But he doesn’t address the issue head on. I will. What we’re talking about is the
goal of profit maximization, which is what every for profit business needs to aim for or go out
of business. In the good times, that means growing intelligently. In the bad, it means maximizing
your chances of survival.
Irrational Argument No. 1: The VCs Made This Happen
First, the downturn has nothing to do with the venture capitalists (in fact, it has nothing to do
with Silicon Valley, this time). They have one job: generate the best return they legally can
from their investors’ money. In boom times deals get competitive and VCs make independent
decisions on what deals to bid for. Companies also have to pay more for people, resources, office
space and advertising in boom times, which means they spend more money and have to raise more
money. If you think venture capitalists are being irresponsible (or worse, evil) by investing
money in those companies that they think are good bets, you’re just not getting how the
whole system works.
Let me put it this way - if VCs ignored the economy and always invested super conservatively so
that no one could accuse them of being irresponsible, they’d go out of business after their
first fund failed to return capital to investors.
Irrational Argument No. 2: VCs Should Have Told Companies To Conserve Cash All
Along
This is another argument that ignores the fact that people try to adapt to a changing world. At
all times companies need to profit maximize. That means maximizing revenue and minimizing costs.
Those goals are not aligned, however. Sometimes a company spends money on research and
development to create future revenue streams. How much they spend is based on their own rational
decisions on their financial health, the state of the economy, and their projections for the
demand of a new product.
In good times, when core businesses are relatively safe, it makes sense to expand by hiring new
people and developing new products. Or spending money on advertising and PR.
When times are tough, companies have to change strategies. They’re still maximizing
profits, but they need to plan for tighter capital markets (really important to unprofitable
startups) and harder revenue as advertising and other spending decreases.
Just like a bear in the woods (I imagine) has to slow its activity in the Winter as food supplies
dwindle, startups need to go into cash conservation mode to increase their chances of survival
when the market slows. They need to be prepared for a hit in revenue, and they know they
can’t necessarily go to the capital markets to get money to stay in business.
But to argue that a company should always cut costs to the bare minimum is the same thing as
asking that bear to act like it’s Winter in the Spring, because someday Winter is going to
happen. All you end up with is a dead bear.
Crunch Network: CrunchBase the
free database of technology companies, people, and investors


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Mac Forums - iPod touch -
43 minutes ago
So I just got my iPod touch and I can't for the life of me figure out if there's a "sleep" mode,
you know, where you can tell it to turn off after an hour of being on. I like to listen when I go
to sleep, but if it's on all night, it actually keeps me from sleeping well. I feel totally dumb
cause I can't seem to figure this out!
Any suggestions?
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