With Its Hotspot Shield Hitting 60M Downloads, AnchorFree Lands A Whopping $52M From Goldman Sachs

Screen shot 2012-05-21 at 6.15.26 AMThis morning AnchorFree, the makers of the popular virtual private network Hotspot Shield, is announcing that it has raised $52 million in Series C financing from Goldman Sachs. All in all, this brings the Mountain View-based startup to over $63 million, following the $11 million the company raised in Series A and B rounds, dating back to 2006. As part of its whopping series C round, Goldman is joined by existing investors former chairman and CEO of MCI Bert Roberts, RENN Capital President Russell Cleveland, angel investor Esther Dyson, former president of the Huffington Post Greg Coleman, Doug Maine, the former CFO of IBM, Rick Roth, and Kevin Cook, to name a few.

Why Every Startup Founder Needs a Mentor - And How to Find One

Why does founding a startup sometimes feel like the loneliest journey on the planet? Yes, you may be surrounded by family and friends who want to support you emotionally, but do they really understand what you’re going through?

The answer: Find yourself a mentor.

No "Yes Men"

Surrounding yourself with “yes men” is a stupid startup move. Instead, “all” you need to do is find someone who’s “been there, done that,” and is willing to tell you the truth. Don’t scoff. There’s true value having someone you can bounce ideas off of or who can offer a different perspective.

“Why wouldn’t you want to learn from the experience of others?” says Bob Godlasky, a mentor and counselor with SCORE OC in Santa Ana, Calif. SCORE, a nonprofit partner of the Small Business Administration, has more than 13,000 business experts and offers free mentoring and low-cost workshops nationwide. “There’s value in getting nonfamily, nonfriends' points of view. It’s amazing what we can’t see until someone with no particular bias reviews the same picture or the same data,” Godlasky adds.

Janet Crowther and Katie Covington, founders of For the Makers, a website for DIY design and crafts projects, met while designing jewelry for various fashion houses, including Kate Spade, Anthropologie and Marc Jacobs. As first-time entrepreneurs, they had tons of product and design experience, but had never worked in the tech field. “We went everywhere and asked questions of anyone that would listen,” says Covington about the startup of their social community website. “We set out looking for validation of our ideas, but over time found mentors who can help with more specific questions.”

Ask Questions

How do you find the right mentor for your business? “The only way to find mentors is to be out there, meeting people and asking questions,” Covington says. “We’ve met people at events, through friends, on Twitter and by following blogs. As long as you are respectful of time, mentors are almost always willing to help you and your company evolve. We look for mentors who believe in us, have experiences that are vastly differently from ours, and are always creating.”

Crowther and Covington were fortunate to find tech entrepreneur Cindy Gallop (pictured above), founder of the websites If We Ran The World and Make Love Not Porn. “Often the smartest, most interesting people all seem to know each other and are happy to make introductions,” Covington explains. “After talking with Cindy for 10 minutes, she was making parallels between For the Makers and a handful of other people she knew.” The companies don’t have a ton in common, “but both of our companies are about giving people tools to create something for themselves,” Covington says. “Mentors can use their experiences to frame your business in a unique way.”

And don’t worry about the relationship being too formal or structured. Gallop, like her mentees, is a busy entrepreneur. “Sadly, I cannot possibly mentor all the people who approach me asking me to be their mentor,” she says. “I mentor a small number of chosen startups on an ad hoc basis [for] sporadic, intensive hourlong discussions of a particular issue or consultation on a particular situation.”

Gallop’s advice for a great startup-mentor relationship: “Don’t just fall in love with someone’s reputation, perceived celebrity or name. Identify someone who could be directly relevant to what you want to do, or who is pursuing a similar vision. And someone who is likely to have the time and the inclination to help you.”

Slow and Steady Wins

And take it slow. “It’s like any other human relationship,” Gallop explains. “You need to have established a direct personal relationship and rapport with someone before you ask them to take the relationship to another level.”

The best mentor/mentee relationships are ones that are mutually beneficial. My mentee is a Jamaican entrepreneur who launched Study in Jamaica, a successful website that already ranks in the top 250 for traffic in her native county. I always get one or two takeaways from our monthly hourlong conversations. So if you’ve already hit phase two of the startup cycle, consider mentoring those just launching.


TechCrunch Disrupt NYC LIVE: Day One! #TCDisrupt

disrupt-nycAfter months of prepping, countless run-throughs and all nighters, it's time to get this party started. Welcome to TechCrunch Disrupt New York City 2012. I have a feeling this is going to be the best one to date. Follow the team's coverage here. If you're unable to attend don't worry, you can join the conversation on Twitter by following #TCDisrupt. So here's how the day breaks down:

Xfire Raises $3M To Expand Gamer Social Networking In Asia

xfire logoXfire, which offers social networking tools for gamers, just announced that it has raised $3 million in new funding. The round was led by Singapore-based IDM Venture Capital. It's apparently targeted specifically at expanding Xfire's presence in Asia — the company recently announced that it's partnering with China Youth Goyor Technology company to bring its services into the Chinese market.

“Hashtag App” Lets You Follow Twitter & Instagram Hashtags In One Interface

PoX4ORWXObGARWEBEaN4Pg-temp-upload.wbbbptca.320x480-75This is kind of handy - and just in time for TechCrunch Disrupt. The team at Lemon Labs just launched a new app called "Hashtag App," which lets you follow Twitter hashtags on your iPhone or iPad. But there are a bunch of apps for that, including Twitter itself, you say? Very true. That's why Hashtag App kicks things up a notch and supports Instagram hashtags as well. Fun!

As The End Of Google Docs Draws Near, Google Asks Stragglers To Transition To Google Drive

Google DriveGoogle always pitched Google Drive, which launched in April after a considerable period of hype, as a replacement for Google Docs. What many users didn't realize, it seems, is that Google will indeed completely replace Google Docs with Drive later this year. While Drive is still opt-in at this time, it looks like the forced transition is coming soon, as Google has started to alert users that their Google Docs account will soon be "upgraded to Google Drive."

Facebook Shares Slide Nearly 10% To $34.35 On Second Trading Day After IPO

Screen Shot 2012-05-21 at 9.07.46 AMFacebook shares dropped nearly 10 percent to $34.35 -- below the company's final $38 price in the company's highly anticipated initial public offering. Today is an interesting test for Facebook's worth because the company's shares will no longer be supported by the IPO's lead underwriter Morgan Stanley. Facebook's performance today may further stoke the debate over whether its IPO was priced well. To save face on Friday, Morgan Stanley had to step in to make sure that Facebook shares didn't close below their opening price. There were also irregularities in trading on NASDAQ as some buyers had to wait hours to know whether their orders had been filled. The company's market cap is now around $97.3 billion, down from the $104 billion valuation the company opened with last week.

B-Ball, Travel, And Spoilers, Oh My! Hulu’s New Slate Of Exclusives and Originals

huluHulu announced a new slate of original and exclusive programming Monday morning, as the video site ventures further into creating its own content. For Hulu, it's a way to begin controlling its own destiny and distinguishing itself from all the content produced by parents and part-owners Fox, NBC and Disney. For its originals, Hulu is teaming up with Hollywood big shots like Kevin Smith and Richard Linklater. Smith will work on a show called Spoilers, which will invite movie fans to discuss all the biggest movies being released. Linklater's Up To Speed is a travel show built around Speed Levitch (you might remember him from Linklater's Waking Life, if you're into that sort of thing) and his travels around the world. And We Got Next, a bro-mantic comedy set in a basketball gym? Ok, maybe I'm kind of interested.

Saygent Launches In-App Voice Feedback System: Lets Customers Vent To Apps, Not On Twitter

saygent-logoApple's Siri has been transforming how people interact with their phones. It taught us that it's not just OK to talk to our phones, but that, in many cases, it's actually a more useful way to get things done. Along those same lines, a company called Saygent is launching a mobile feedback solution which developers can insert into their application to collect feedback from the app's users. Available as an SDK for easy integration, the toolkit can be used within any type of application. But Saygent is specifically targeting the emerging mobile wallet space to start. The idea with mSay, as it's being called, is that mobile wallet providers (think, companies like Visa, MasterCard, Google Wallet, Intuit, etc.) could use Saygent's solution to collect instant feedback about the merchant immediately following a mobile payment/mobile wallet transaction.

Disassembling Android Part 2: Who Wields the Blowtorch?

This is Part Two of a two-part series on Disassembling Android. 

"Android is open for disruption.” That's what Stewart Putney, CEO of the mobile gaming company Moblyng, said last August. He was talking about the potential for HTML5 Web apps to disrupt the Android Market (now Google Play), but he may have been oddly prophetic. Android has not been riding high in 2012. More than one competitor is lining up to strike a decisive blow.

To truly disrupt Android, other OS makers face an uphill battle. It is no longer 2009, when Android stepped into a mobile market hungry for options beyond the iPhone (then only on AT&T) and the aging BlackBerry and Windows Mobile ecosystems. The market is now well established and the only two players that currently mean anything are iOS and Android.

For the sake of clarity, let’s look at the other contenders (in order of importance):

  • Windows Phone: On its way to becoming a solid Number 3 behind iOS and Android.
  • BlackBerry 10: Research In Motion’s next BlackBerry operating system and perhaps its last gasp to save the franchise.
  • Mozilla B2G: Open, browser-based OS currently in development from Mozilla and the open source community. 
  • Tizen: Formerly MeeGo. Has the backing of the Linux Foundation and Intel, and it has caught the eyes of several manufacturers looking for an alternative.
  • Linux/Ubuntu: Pure, open Linux-based OS has been kicked about by the open source community, but generally unavailable in devices until 2013 at the earliest.
  • webOS: Open-sourced by Hewlett-Packard, may have a legitimate future if developers embrace browser-based mobile interaction.

Microsoft and Nokia would love nothing more than to see Windows Phone eat Android’s market share. In the short term, that is not going to happen. The best Windows Phone, the Lumia 900, available through AT&T, does not measure up well with the best Android phones, either in specifications or user interface. What Windows Phone does have going for it is increasing traction with both carriers and manufacturers tired of dealing with the array of Android devices and the never-ending need to support them. Windows Phone is a known quantity and will continue to rise in market share. It will not reach the levels of Android, but it can shave 5% to 10% of its market share within a couple of years, especially if carriers continue to market and subsidize Windows Phone devices.

The problems for Windows Phone in disrupting Android are the macro-problems that face any OS aiming to usurp the crown. First, the Windows Phone Marketplace is a wasteland of copied and boring apps (with a few exceptional entries). Developer support is critical to the success of a smartphone OS, as developers create the content that drives adoption. The better a developer can fare on a platform, the harder it will work to build a productive ecosystem around it. Windows Phone and BlackBerry do not, at this point, have developer interest equivalent to Android and iOS. With almost 500,000 apps in Google Play (against 70,000 for Windows Phone and BlackBerry), conquering Android is bound to be an uphill battle. 

Manufacturers and carriers may be starting to look at throwing more weight behind Windows Phone. There are a variety of reasons for this. The most important is that Microsoft is willing to pay for visibility, and manufacturers and carriers are happy to take money whether or not Windows Phone actually sells well. 

While Windows Phone appears to be on the rise, Blackberry is still in wait-and-see mode. What will BlackBerry 10 ultimately look like? Will it be sexy enough to not only compete with the current crop of Android phones but remain viable for two or three years? To take market share back from Android, RIM needs to focus as much on what it releases this year as what that platform will look like in 2014. 

Tizen occupies an interesting space in this ecosystem. It has indirect backing from Samsung and could easily add HTC to the list of supporters if manufacturer relations turn sour with Google over its Motorola acquisition. Tizen will continue to be pushed by Intel - but the fact is that there may be little hope for it. It does not have the industry clout to disrupt Android in the short or long term. A wild card: Tizen has been seen running Android apps, a development that could give it traction.

What applies for Tizen also applies for webOS. These open source projects will likely produce nominal results and devices, at best. 

That leaves the two most intriguing candidates – Ubuntu and Mozilla. These are also open source projects, but they have significant developer communities behind them. Canonical has proposed an Ubuntu mobile operating system that has potential to step right into Android's position. One can imagine that an Ubuntu mobile OS would be very similar to Android (both with a Linux kernel) but not tied to Google. That would please Google’s manufacturer and service partners that would love to be free of Google’s regulations about how a device must behave to be allowed access to Google Play. 

Mozilla's Boot2Gecko Mockups

Mozilla is in a different category. It is an operating system that is of the browser, by the browser. In that way, it's similar to Google’s Chrome operating system, though B2G would be specialized toward mobile devices rather than notebooks. This is where HTML5 could truly disrupt Android, as it would run through the mobile Web and not be restricted by… anything. The trick for Mozilla is to create a browser-based operating system that has all of the device capabilities that Android, iOS, BlackBerry and Windows Phone have with native APIs and hardware acceleration. That is not something the HTML5 environment does currently (at least, not well) and will be the biggest challenge for Mozilla as it develops the OS. Right now, Mozilla’s problems are technical in nature. Get the OS right first and then we can start talking about how it deals with manufacturers, carriers, developers, marketers, advertisers and the rest of the mobile ecosystem. Of all the methods and technologies used by would-be Android competitors, HTML5 has the highest ceiling. The company that pulls together a browser-based mobile operating system could fare very well, especially with developers. 

Taken individually, each would-be Android killer has strengths and flaws that will help and hinder it in trying to unseat Google. The near-term players (Windows Phone and BlackBerry) will have to battle OEMs and manufacturers and curry favor with developers. Everybody else still has to work out development and technical issues before they can gain the kind of traction that Android has created. 

Consequently, for the next two years or so, the mobile world will likely be a race between Apple and Google. 2012 will not be the Year Of Something Other Than Android. 2015 and beyond? Perhaps. 

What do you think has the greatest potential to disrupt Android? Let’s hear your picks in the comments.