Market Analysis & Industry News

30% of Android devices are running version 4, marking a mild decrease in OS fragmentation. link

Apple lost a patent lawsuit for technology used in its mobile video chat application, Facetime, and must pay $368M in restitution. link

Proposition E passed in San Francisco which will change payroll tax into a tax on gross receipts, reducing taxes by 2.4% for a typical startup. link

Projects on Kickstarter have grown by 50% in the last six months. The financing success rate has remained constant at 44%. link

Tech M&A in Q3’12 fell to $20.5B in total from $26.6B in Q2. The number of deals fell to 58 from 78. link

Product Releases

Amazon has deployed lockers in RadioShack and Staples stores around the country. link

Foursquare has launched venue ratings functionality in a move that competes with Yelp. link

Facebook has created relationship pages which document shared communications and photos between friends. link Instagram launched a web profiles for their users. link

Company Announcements

Tumblr is growing traffic at 30% per year, reaching 20B page views per month. link

FreshBooks, the SMB SaaS accounting provider, announced an iPad version of their product, 5M users and 100 employees. link

Flurry announces 1000 advertisers for its advertising platform AppSpot with an average eCPM of $5.80. link

AppFog announced 100k applications deployed on its PaaS in six months. link

Microsoft will discontinue messenger and move its users to Skype. link Skype launched in the Workplace, a Skype powered community board for SMBs to share best practices and find customers. link

WhatsApp, the mobile messaging application, announced 100M downloads on Android. link

Verizon will discontinue its 3rd party mobile app stores on Android and Blackberry due to poor performance. link

DeNA, the Japanese mobile gaming giant, reported $627M (+45%) of revenue and $254M of operating income (+38%). link

Groupon missed expectations and announced $569M in revenue and operating income of $25M. The company is trading at 10% of its IPO market cap. link

Players of Call of Duty: Black Ops II will be able to livestream their matches onto YouTube. link

Spotify will generate about $500M in 2012 with a loss of $40M, up from $200M in 2011 revenue and a loss of $60M. The company has signed deals with lables requiring either a $200M annual payment or 75% revenue share to the labels. link

Apple and HTC have announced a 10 year patent licensing agreement. link


YY, a Chinese chat client with 400M users, has filed for IPO. The company will raise up to $97M in the offering on $51M in 2011 revenue and $88M in 2012 ytd revenue. link

Jive has acquired task management company Producteev for an undisclosed amount. link

Priceline.com is acquiring travel company KAYAK for $1.8B in a deal that includes $500M in cash link


Company Description Investment Investors
Nodefly Systems Inc Nodefly provides application performance management for Node.js applications 0.8 Shasta Ventures
LearnStreet LearnStreet operates an online learning platform where anyone can learn how to code. It offers coding courses in Ruby, JavaScript, and Python. The company is based in the United States. 1.0 Khosla Ventures
Munchery Inc. Munchery Inc. operates as an online marketplace for consumers to purchase meals directly from personal chefs. The company was founded in 2010 and is based in San Francisco, California. 4.0 e.ventures
3D Robotics 3D robotics develops drones and UAVs. 5.0 O’Reilly AlphaTech Ventures, LLC; True Ventures
Betabrand Corporation Betabrand Corporation, an online-only clothing company, designs and manufactures fashion clothing. . 6.5 Foundry Group
Elasticsearch ElasticSearch offers an open source restful search engine. 10.0 Benchmark Capital
Medialets, Inc. Medialets, Inc. develops a rich media advertising platform for mobile applications, 10.0 Draper Fisher Jurvetson Gotham Ventures; Greenspring Associates, Inc.; Foundry Group
ServiceMax, Inc. ServiceMax, Inc. offers on-demand field service management solutions. Its products include ServiceMax Suite, which is a software-as-a-service solution for post-sales service, field service, and strategic service chain management. The company also provides ServiceMax for iPad, a Force.com-based field service application available on the iPad. Its software product provides modules for installed base products, entitlements, scheduling and dispatching, spare parts logistics, depot repair, preventative maintenance, and service partner management. The company serves communications, technology, industrial equipment, medical devices, and utilities industries. ServiceMax, Inc. was formerly known as Maxplore Technologies, Inc. and changed its name in 2009. The company was founded in 1999 and is headquartered in Santa Clara, California with an additional office in Bangalore, India. 27.0 Mayfield Fund; CrossLink Capital, Inc.; Trinity Ventures; Emergence Capital Partners