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Paul Graham’s Reasons to Move to Silicon Valley

Stylized map of Silicon Valley showing logos of prominent tech companies

In Paul Graham’s latest essay — Why to Move to a Startup Hub (I don’t know why, but the title sounds a little “English as She is Spoke”, doesn’t it?) — he explains his reasons for stating that startups would do better if they moved to Silicon Valley. This is in spite of the fact that Boston is his home (and the home of his startup funding company, Y Combinator) half the year:

Y Combinator alternates between coasts every 6 months. Every other funding cycle is in Boston. And even though Boston is the second biggest startup hub in the US (and the world), we tell the startups from those cycles that their best bet is to move to Silicon Valley. If that’s true of Boston, it’s even more true of every other city.

Among Graham’s reasons for startups to move to the Valley:

  • Silicon Valley is a tech center. Just as you’d want to move to New York or L.A. to launch your entertainment company, you want to move to the Valley to launch your tech company.
  • Silicon Valley-based investors are more aggressive. Consider Facebook’s case: “Facebook was started in Boston. Boston VCs had the first shot at them. But they said no, so Facebook moved to Silicon Valley and raised money there. The partner who turned them down now says that ‘may turn out to have been a mistake’.”
  • The concentration of tech in Silicon Valley is also a plus: “In addition to the concentration that comes from specialization, startup hubs are also markets. And markets are usually centralized. Even now, when traders could be anywhere, they cluster in a few cities. It’s hard to say exactly what it is about face to face contact that makes deals happen, but whatever it is, it hasn’t yet been duplicated by technology.”
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Notes from FacebookCamp Toronto 2, Part 1

FacebookCamp Toronto logo

Last night was the second FacebookCamp Toronto, and I took notes. Here’s the first part, with more to follow later today…

Introductory Presentation

The introductory presentation was made by the FacebookCamp Toronto organizers: Roy Pereira, Colin Smillie and Andrew Cherwenka.

They thanks the event sponsors:

  • Facebook
  • Segal
  • Refresh Partners
  • Trapeze
  • MaRS

Some updates on things that have happened since the last FacebookCamp Toronto:

  • There are now more than 43 million active users
  • fbFund has been established:
    • $10M in capital (may grow over time)
    • Accepting applications for grants from US$25K – US$250K
  • FBML 1.1 and FB JavaScript have been released

Here’s what the Facebook application scene looks like right now:

  • About 5,500 approved applications:
    • 84 of these apps account for 90% of the usage
    • At this point, “It’s anyone’s game”
  • The primary measure of an application is no longer installs, but now daily active users
  • Having good functionality is now up there with being first (e.g. Consider the number of “wishlist”-type apps — there are about 18)
  • 9 of the top 20 apps come from from the same development shop

They showed a chart of the top 30 Facebook cities (in terms of membership), 9 of which are Canadian. The top five Facebook cities are:

  1. London, UK
  2. Toronto, Ontario, Canada
  3. Vancouver, British Columbia, Canada
  4. New York, New York, USA
  5. Chicago, Illinois, USA

In August 2007, Canada beat the UK for monthly visits to Facebook.

There are a number of upcoming FacebookCamps:

  • Vancouver: October 23rd
  • Montreal: November 7
  • Toronto: Early December 2007

There are also plans for a Toronto “FacebookWeekend”, a full-weekend developer workshop — perhaps in early December 2007.

Facebook Application Best Practices (Ami Vora, Facebook)

Who am I?

  • The lead of Platform Product Marketing for Facebook
  • Her job: make sure the developers out there are successful and that the developer community is healthy and growing

Facebook, as a whole, is…

  • A tech company intent on building a social utility
  • 45 million active users (that’s up from 34 million, which was the figure at the last FacebookCamp Toronto)
  • 250,000 new users sign on every day, which means there’s a 3% week-on-week growth

Who are the new users?

  • They’re typically age 25 and older
  • Everywhere outside the U.S. — that is, in places where Facebook didn’t get its start in universities — there’s even distribution of ages for Facebook users

Stats

  • U.S.: 18 million users
  • Canada: 6 million (“That one in every 5 Canadians!”)
  • U.K. 5 million
  • 60 billion pages served a month
  • More than 50% of our users visit at least once daily

The Social Graph

  • What makes people come back to the site?
  • For them, it’s all about the social graph: the network of connections in the real world through which people communicate and share info
  • In Facebook, they’re trying to create an accurate online analog of people’s real-world social graphs
  • Value of the social graph to photos:
    • Facebook’s “Photos” app is relatively simple compared to other photo-sharing sites — you can only upload and share
    • In spite of its lack of features, it still has more activity than other photo sites
    • Why? Facebook’s social graph
    • There’s a social context attached to the photos — you can tag the photo, specifying with who’s in it, and the tagged people are told that they’ve been tagged
    • Photos become social content
    • Photos are shared with exactly the people who are interested in them
  • Value of the social graph to events
    • Facebook’s “Events” app is relatively simple compared to other event-announcing sites
    • Once again, in spite of a lack of features, they see more event traffic than competitors (for example, they get 3 times eVite’s pageviews)

The Facebook platform provides 3 things:

  1. Mass distribution
  2. Deep integration
  3. New opportunities
  • They’ve tried to open every integration point available to their own developers to all outside developers
  • When developing a Facebook app, think about the value you’re adding to the user experience

Best practices for Facebook features:

  • Mini-Feed:
    • Good for “temporal information”
    • Used by people looking for the latest info about me
    • If your app posts items to the Mini-feed, include a friend of the user’s where possible (e.g. “Pete Forde tagged Joey in 2 photos.”)
  • Profile Box:
    • Not really for content
    • It’s a representation of the user
  • Canvas Page:
    • Use for heavy information
    • Use it for interaction to build connections
  • News Feed:
    • Shows connections
    • Great driver for future engagement — shows a preview of what you’ll see if you dive in

Opportunities — Building a business online, you’re concerned with

  • Growth
    • Access to millions of potential users
    • Viral distribution through the social graph
  • Engagement
    • 50% daily return rate
    • Social context provides opportunity for engaging content
  • Monetization
    • Freedom
    • Several monetization paths:
      • Relationship with an ad network
      • Partnership with a brand advertiser
      • Cross-promotion
      • Institutional investment
      • fbFund

fbFund

  • Meant to lower the barrier to entry
  • Small no-equity grants
  • Not Facebook’s money, but the money of early funders of Facebook
  • Right of first refusal to fbFund companies

Advice

  • Provide engaging content / focus on the social
  • Provide relevant info
  • Showcase interactions between users (“Everyone loves a little voyeurism”)
  • Focus on usability
  • Keep providing your users with fresh content
  • One good idea for fresh content: turn-based games
  • Use the integration points into Facebook well
  • Iterate often
  • Think about intelligent promotion
  • Incorporate privacy:
    • Think of privacy as an asset, not as something that weighs you down
    • Users are more willing to interact if they feel their privacy is being protected/respected

Platform growth

  • 4000+ applications
  • 100 new applications added per day
  • 80,000 developer keys
  • 80% of users have added at least one application (which means that users think of apps as a key part of their Facebook experience)

This is just the beginning!

  • “We’re only 4 months in, and we have a long way to go.”
  • We’ve all got the same users — we’re all trying to build the same user experience — our success is contingent upon each other.

The Q&A Session

Ami, on the relationships represented in Facebook: “‘We hooked up’ is not the best relationship descriptor.”

On limiting the clutter presented by all the apps:

  • A hard problem — considered it when they first decided to open Facebook to third-party apps
  • Try to keep the profile clean
  • You have free rein on the Canvas page
  • Note that if you collapse an app on your own profile, it’s collapsed on all the other profiles you see

Q: Any other incentives other than fbFund?

  • The goal is really to create an open market where incentives come to exist
  • Don’t really want to be in the incentive business themselves

Cross-posted to the Tucows Developer Blog

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The Winning Bid on the “Ms. Master Chief” Statuette

“Master Chief” from Halo as a hot woman.Remember the eBay auction for the statuette of “Master Chief” — the character from the Halo series of games — recast as a hot woman?

(In case you missed it, I covered “Ms. Master Chief in this posting.)

The auction ended last Thursday at 9:47 Eastern, and the winning bid was US$2,222, placed by “vetusnox”.

My heartiest congratulations to vetusnox on both winning the bid and having the disposable income to blow a couple of grand on videogame-based collectibles. I salute you with my Star Wars “Cantina Band” figurines!

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FacebookCamp Toronto 2: Tuesday, October 9th

FacehookedThe second FacebookCamp Toronto — a gathering for local techies interested in developing Facebook applications — takes place next Tuesday, October 9th, at the MaRS Centre (101 College Street, a stone’s throw from Queen’s park subway station). I was at the first FaceBookCamp Toronto, and if you’d like to see my notes, they’re here.

Speakers will include:

  • Ami Vora (Corporate Communications, Developer PR) from Facebook Inc., flying in from Palo Alto
  • Janice Diner (Creative Director) and Michael Scissons (Director of National Sales) from Segal Communications
  • Geoffrey B. Roche (President) from Lowe Roche

The last FacebookCamp was quite tech-heavy — the one, while still aimed at developing applications, will be more focused on the business, marketing, branding and promotional aspects. Here’s the schedule:

  • 6:00 – Social/Mingling
  • 6:30 – Intro – update from last FBCT (Roy Pereira / Colin Smillie /Andrew Cherwenka)
  • 6:35 – High level presentation on platform and best-practices (Ami Vora – Facebook Inc.)
  • 6:55 – Building an Application for a Brand (Michael Scissons & Janice Diner – Segal Communications)
  • 7:15 – How Many ways can you Market your Application Inside Facebook? (Roy Pereira)
  • 7:30 – Top Applications and Why They Work (Jesse Hirsh)
  • 7:45 – Monetizing your Facebook Application (Greg Thomson)
  • 8:00 – Secrets of PayPal interface used by Gift Cards Facebook Application (Steve Pritchard)
  • 8:15 – Demos: 5 minutes each ( 3 Slots )
    • Demo – Dogbook / Catbook (Geoffrey B. Roche)
    • Demo – WishList (Bogdan Arsenie)
    • Demo – DreamBook (Phil Tucker)

For more information, consult the event’s Facebook page or its wiki page. See you there!

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Notes from a Client Call

Polycom conference calling phoneFrom The Journal of Joe the Peacock, here are some selections from some thoughts that came to him during a conference call with a potential client that was chock full o’ warning signs:

  • Facebook isn’t the internet, dipshit.
  • Oh for chrissake… AJAX is NOT A LANGUAGE, and you CANNOT “code” A WEBSITE IN IT.
  • You want four million users by DECEMBER?? You have four hundred active licenses for your product currently! Nothing – and I mean NOTHING – is going to add four zeros to the end of that number in three months short of hiring Arthur Anderson to handle the bookkeeping.
  • Wait… First you wanted to clone Digg… Then you wanted to “add the social aspects of Facebook to it,” and NOW you want it to be Wikipedia? Where the HELL did you spend your morning? In the “Web 2.0 Company Names to Memorize” symposium sponsored by the local Linux Enthusiasts club?
  • Did you really just say you’re going to use ISS on Vista because it’s more reliable than Apache? Really? Cause, like, you know you can run Apache on Windows, right?
  • Oh, there it is… The three letters I’ve been waiting for… IPO.
  • Oh. Great. The Director of Development also owns the outsourced programming company we’d use in Romania. How… Convenient. Sounds like he’s the only one in this entire group who’s actually thinking about how to make a profit here.
  • Is it impolite to just hang up and not return the call, or should I begin crafting my “No thanks” speech?
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“Facehooked” T-Shirt Design

“Facehooked” T-shirt design by Luke Ramsey

[Found via Illustration Friday] Luke Ramsey submitted this “Facehooked” design to Threadless. Let’s hope it becomes available soon!

Want to see another cool T-shirt design? There’s one on my personal blog, The Adventures of Accordion Guy in the 21st Century.

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ThinkGeek’s 8-Bit Tie

ThinkGeek’s 8-bit tie, modelled by an emo geek.
Cheer up, emo geek!

Looking for a present for a geek who like (or needs) to dress up? How about ThinkGeek’s 8-bit tie? It’s a clip-on, so it’s easy to wear, and polyester microfiber, so it’s easy to clean. Yours for US$19.95 at ThinkGeek.