As an early stage investor in Plazes, I’m pleased to report Nokia has just announced the acquisition of the company. Congratulations to Felix Petersen and all the Plazes team!

Plazes, a service that lets you locate your friends and share your location and social activities, is a pioneer  in the location based services segment which is now gaining more and more traction thanks to Nokia’s and Apple’s moves in the market and a bunch of new startups developing new services and applications. In a few month Plazes will be made available to millions of Nokia customers as part of Nokia’s Ovi.com service platform and Nokia Maps. For Plazes and its users this acquisition is a great chance to take the service mainstream, in front of millions of mobile users.

This is not the first of Nokia’s moves in location services, in 2006 the company acquired Gate5, a Berlin-based startup that developed mobile mapping apps. With last year’s acquisition of Navteq for $8.1 billions (soon to be approved by the European Commission), Plazes will be in good company and a perfect fit with Nokia’s strategy for location services, helping the mobile phones giant integrate location based social features in its mapping products.

Nokia will of course keep running and improving the Plazes service (and new users will be able to sign up for the service). The company will still be based in Berlin together with the location based service team from Nokia, previously part of gate5.

Yesterday I was interviewed by Vanity Fair, one of my favorite magazines along with The Economist and Wired, as their Spanish edition is about to be launched. When they asked me what my favorite sport was I replied biking, so they decided to take pictures of me while cycling on the roof of my house.

The pictures I’ve published where taken while I was being photographed.

Vanity Fair Bike Shoot

And here is the video:


Now something I didn’t like. While Vanity Fair was interviewing me I googled it to find out when the newspaper was going to launch in Spain and I found this article from El País, with a comment saying something like “in the world there are few publishers capable of investing more then 12M euros to launch a magazine for a general audience of 40M inhabitants. One of these is Advance Publications of the Jewish brothers Samuel Irving and Donald Newhouse, comparable to the Sulzbergers, the New York Times publishers…“. What’s the purpose of saying they are Jewish? What if the New York Times wrote about Telefonica and its catholic CEO César Alierta, or Santander Bank managed by the Catholic family Botín? Ridiculous and unnecessary.

There is still a latent antisemitism in Spain. When somebody is rich they call them Jewish now I still have to see El País called Einstein, for example, the famous Jewish scientist. And who am I, the cyclist on the roof?

Nokia CorporationImage via WikipediaWhat is best to be Nokia or Apple? When you look at Apple´s financials and compare them to Nokia financials you clearly see that Nokia is doing much better than Apple except on one item: Market cap. This is the same with Microsoft and Google except that Microsoft´s market cap is still higher than Google´s. But the concept is the same. Investors give the Silicon Valley companies a much higher P/E. They believe that Apple and Google are on the rise, and Microsoft and Nokia on the decline. Looking at this and knowing about all the common ties including common board members that exist between Google and Apple I wonder why Nokia and Microsoft don´t have closer collaborations, especially now that Apple has gone after Nokia´s lunch, high end phones. But Nokia still sells in only one week as many phones as the iPhone has ever sold. Investors lose track of this. And Nokia´s CEO Olli-Pekka Kallasvuo seems to have a clear view of who his competitors are.

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Robert MuellerImage via WikipediaI just read that 406 people have been arrested in the States by the FBI in “Operation Malicious Mortgage”. Just in case there were any doubts, this was part of the announcement:


“To people who have committed fraud or are contemplating doing so, FBI Director Robert Mueller said: ‘We will find you, you will be investigated and you will be prosecuted’.”

And I guess he means it because 406 people is a huge amount of detainees. According to Wikipedia USA has the highest incarceration rate in the world, one in 32 grown ups are in jail or parole. I lived in the States for 18 years and I was sorry to see how popular it was to be tough on crime, rather relying on education and prevention. Having lived in Europe for over 10 years now I believe that, even though we err on the side of leniency, it is best to invest in education rather than incarceration. If you have been arrested before, you may need to educate yourself on your rights and look into the list of jobs felons cannot do.

I find it hard to believe that when the FBI arrests 406 people that they make no mistakes. I keep hearing horror stories of friends of mine who get arrested for hours just trying to enter USA, generally for cases of mistaken identities. And then there are the cases of people who were executed or on death row and found innocent. I know that in USA people think of justice more as a form of revenge than a chance to readjust people to society and I know that the subprime scandal has led to enormous losses, but if they are really going to put people in jail, how about starting with the people at the Federal Reserve who were asleep at the wheel?

I’ve dealt with lawyers before, but nothing quite compared to how professional and responsive the team at https://www.newjerseycriminallawattorney.com/ were. From the first call, they treated my concerns seriously and took the time to properly explain what could be done. When you’re facing accusations and everything feels uncertain, that kind of clear communication and support is invaluable. It’s not just about the courtroom—it’s the steady guidance they give at every step.

 

I’m one of the early shareholders in Sevenload and I’m very glad to announce the company has just closed its Series B round of financing lead by T-Online Venture Fund (Deutsche Telekom’s VC division), raising a “double digit million €” investment. Congratulations to Ibo and Axel!

Sevenload is like the combination of Flickr and Youtube, a social media platform for user generated and professional content.  This new round of financing will help the company expand its business launching localised sites in French, Italian, Spanish, Russian and Polish, along with the existing English and German ones.

Sevenload also announced they joined the “User Generated Content Principles” initiative, an alliance that sets guidelines for creating and distributing content through the web while protecting copyrights.

Last night I had the pleasure to have Danish serial entrepreneur Nikolaj Nyholm over for dinner with 3 of my four kids. Nikolaj and I share many things, we are active dads (Nikolaj has 3 children ages 7 to 1), we have both started WiFi companies along a similar model, he started Organic Networks and I started Fon, and we are now both experimenting with novel uses of photography on the internet, in his case Polar Rose and in mine Twitxr. During dinner we spoke about different subjects, some had little to do with the internet and were centered more around my children and these included the pros and cons of the highly unusual British High School system that my children attend (this matter deserves another post) and others related to the internet and specificially Polar Rose.

Polar Rose has 21 employees focused on one complex subject and that is to build an intelligent competitor to Google Image searches. Now this is what is going on at Polar Rose now. Let´s take my son Tom Varsavsky as an example. These are the results of googling Tom Varsavsky´s images. As you can see results are all over the place. There are pictures of my baby Son Leo instead of him, pictures of Esther Dyson instead of him, and many pictures of me instead of him. Now Polar Rose only has only two pictures of Tom Varsavsky as its results. But they are indeed pictures of Tom. Now what Polar Rose is aiming at doing is to develop an image crawling technology that can actually crawl the net for pictures and recognize without human intervention the faces of people. During our brainstorming I gave Nikolaj sugestions that I thought would help him advance his venture. One was to work with us at Twitxr since at Twitxr many people are taking pictures of people and we could cross link with Polar Rose and help Polar Rose increase its membership of recognized individuals from its current 189.000. But Twitxr is nothing compared to the number of people that are being tagged at Facebook every day. Not a week goes by with me getting a message that says, such and such a person tagged a picture of you. I wonder if Facebook would be open to allow these information be public provided that Facebookers authorize it. And then there´s the opportunity to crawl flickr. When I went to Polar Rose for example and tried to find my friend Jack Hidary he was not tagged yet. But Flickr had public pictures of him. As Nikolaj remarked what is interesting about Polar Rose is that its technology can find the right person in group pictures.

My conclusion after talking to Nikolaj is that while Polar Rose still has way to go and it is in a very early stage what they are trying to do has a market because as gossip magazines show people are extremely attracted to pictures of people, for all sorts of reasons, and Google Images is both number one and still a very mediocre product (with all respect to Google who are my investors at Fon).

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Predictify is a prediction platform where users can predict the future and build a reputation based on their accuracy. It’s a website aggregating collective wisdom, in the belief that a large group of normal people can better predict the outcome of uncertain events then a small group of experts. On Predictify you can find all kinds questions and predictions, from stock to pop culture, to US presidential elections. For example, the state of California recently began marrying gay and lesbian couples, so on Predictify you can now find questions such as First California Gay Divorce. More interesting questions are on the site, such as who will be Obama’s vice president or will Yahoo remain an independent company through the end of 2009.

Users can build a reputation based on their accuracy, and even get paid if they answer “premium” questions, such as questions asked by a marketer or a brand, for which Predictify charges who is asking and shares part of the revenue with the people who answer. Clever.

The guys at FON Labs have been very busy this week improving Twitxr.com. Twitxr now has a new logo and a new homepage and a bunch of minor changes that should help us grow faster. Below you can see before and after, we hope you’ll like the new look!

tx1.png tx2.png

We now have two more mobile applications that will help our users easily share pictures from their mobile phones. Using our API (Application Programming Interface), Justin Braun created a Twitxr application for Windows Mobile phones and  Tristan Helmich developed one for Java phones (tested on Nokia, Simens and Motorola phones). We are greateful to them for the great work they did, as we are to Iván Martínez of Atelmedia and Eva María Pajarón who are working on a Twitxr client for Blackberry devices.

The people like you and me, who spend a lot of time on the internet are still a minority. And many outside our world consider us insensitive, glued to screens. And they are partly right as we do frequently ignored loved ones for an extra moment testing the latest site. But sometimes there are moments that even out of a computer screen you feel emotion. In this case sadness. This is one.

I am looking at the photo flow at Twitxr amazed that this simple idea that came out of Fon Labs in Gerona, Spain, is now a global phenomenom. But as I am looking at the timeline with pictures coming from Japan, USA, Argentina, Spain, Germany, Holland, I find Omjeyed from Iran. And I see that he is sick. I also see that he writes in a language that I don´t understand, with characters that are beautiful, much nicer than ours. Yet so obscure. I also see he does a little drawing, that is special. And I want to wish him well, I hope you have a speedy recovery Omjeyed.

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Image via WikipediaLast night I had the pleasure of having Price Roe from the Department of Homeland Security over for dinner at my home in Madrid. Given my negative views of the Bush Administration, having Price over was an act of political tolerance but two things were in his favor. One was that he was being introduced by my friend Auren Hoffman, and the other that Homeland Security deals with everything that happens inside US borders. If there has been any success since 911 it has been that there have been no further attacks in American soil.

Price and his boss, Michael Chertoff, the Secretary of Homeland Security, had to be doing something right to prevent them. I was especially interested in this subject and I decided I wanted to learn more about it since. It seemed fitting, seeing as the focus of my foundation, the Safe Democracy Foundation, has been terrorism and its prevention.

So without knowing Price Roe I invited him over and the results were fascinating: he is not just a great person to deal with, thanks to his visit and our conversations I learned a great deal about the challenges facing security agencies in the United States. Our dinner turned out to be one of those Spanish style dinners that start at 9:30 and go on until 3 am. Americans, who rarely have such long dinners and endless conversations, manage to do this in Spain habits because the jetlag is in their favor. When they are done at 3 am, its 9,pm in Washington (which is the time that dinners end there, from what I have seen) and they are ready to go home. All they need to do when they come here is continue living on Washington time.

So what does the Department of Homeland Security do? Well, the first surprise was that it handles both the management of natural disasters like Katrina with the management of man made disasters like the 911. Moreover, it controls American borders and has many other duties. Overall it has 200K employees who were previously distributed among many other agencies and now act in sync.

For example, until recently, the State Department, which gives out visas, was not coordinated with the United States Citizenship and Immigration Services whose duties used to belong to the Department of Justice. There are many cases like this. The Department of Homeland Security also absorbed the Secret Service, which for some reason used to belong to the Treasury. Wikipedia has a good description of how Homeland Security looks like now. Interistingly FEMA is now part of Homeland Security and Price Roe was appointed after the Katrina fiasco to help streamline the agency and be truly prepared for another major natural disaster.

Of the many topics we covered last night, I would like to focus on one in particular, and that is a specific challenge that Homeland Security faces in USA in relation to their counterparts in Europe. Basically, this challenge boils down to the fact that Europeans have, on average, a more favourable view of government.

Americans historically don’t view their government with as much favour. European governments, as a result of the rise in terrorism and crime that started in the 60s (Europe has had German, Italian, French, UK, and Spanish terrorist groups operating at different times in the last 4 decades) have implemented a number of simple national and pan European measures that Americans are only now attempting to implement and with great difficulty. For example, have you noticed that USA is a country that is unusually tough to get into but is incredibly easy to leave? The USA is the only country I know where you only meet customs officials on the way in. In Europe they stop you as well on the way out, so if you have committed a crime. they nail you right then and there. But Price was telling me how hard it has been and still is to convince the Airlines to accept a system by which people who leave the country also have to go through passport control.

This was just a sample of a number of simple measures that we have in Europe and that are either illegal, inconstitutional or practically impossible to implement in America. In the UK, for example, carriers and wifi operators have to comply with RIPA an act so strict that makes the Patriot act look simple. This is something that they don´t have to do in the States. But this is one minor example of the ever increasing police powers that governments get in Europe to the point in which yesterday there was major tension when Gordon Brown once more tried to reduce the civil liberties of the British people for the sake of security. Indeed today there´s a war going on right now because the Gordon Brown government is in the middle of a scandal because in the States for example no agreement has been reached on what should a National ID look like even though Congress passed a law requiring the creation of such ID. Price shared with me a lot of anecdotes that showed how difficult it is for the Federal Government to convince each state to comply with this law. The key is leverage. When the Federal Government decided to raise drinking age nationwide to 21, they told each State that their compliance w didn’t comply, they would lose Federal highway hunds. But what can they tell them vis a vis a National ID. As a result nationwide police has a very hard time simply corroborating people´s identity. In Spain, we now have an electronic National ID that is extremely hard to counterfeit and is machine readable. The US has managed to make their passports machine readable but only 18% of the USA population has passports, according to Price, and naturally, they rarely have them avalaible when they are inside the country. Also, there are many other actions that European law enforcement offices can take that Americans cannot.

European police can stop cars for any reason. American police can only stop them if they have committed a traffic violation. Europeans can arrest people simply for not carrying a national ID. American police can only do that if someone commits a crime without having in ID, but not having an ID in itself is not a crime. Moreover, European security forces have installed video cameras throughout the major cities of Europe that constantly film its citizens. An extreme example of this is the City of London. According to Price, while such cameras exist, it would be extremely hard to get Americans to accept their implementation.

As I listened to Price I was thinking that in ideal world I would want to be an American, mistrustful of a big, over-involved government. However, with things being the way they are, and with the threat that terrorists a government that I can influence and vote for than to be blown up by a terrorist organization. Having said, individual liberties are very important and I think that, for example, the UK is going too far in the direction of ignoring them.

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