apple news/media reports
07/30/2007, 4:15pm, EDT
Monday, July 30th
iPhone rival gets $20 million in VC funding
A new startup called Action Engine has secured $20 million in venture capital to build mobile Web sites for a bevy of content providers and corporate Web sites, including MSNBC.com, TiVo and others. The funding comes from equity firms Baker Capital, Northwest Venture Associates and the Spangler Group. According to a report from CNNMoney, the company lets its content partners negotiate with the wireless carriers, and in turn reveives a cut of subscription and advertising revenue that its customer’s mobile applications generate. "The iPhone has been the single most exciting thing in our industry. We're not Steve Jobs. We don't have the cachet of an Apple. So they validated the mobile Web market overnight," said Action Engine CEO Scott Silk, "But a lot of companies are paranoid about Apple doing in mobile what it did to music. So we became a logical partner for carriers and media companies."
Silk also believes that the iPhone will act as a catalyst getting the "big guys" to come into the market and generate true competition. In other words, he's seeking to generate a return on investment for the venture capital firms in the form of a buyout by Google, Yahoo or Microsoft.
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More on what Apple should do with iWeb and .Mac to further iPhones dominance on my blog, if you care for the read.
Richard
http://RichGetz.com
What horrors await us from this mighty behemoth? The Apple iNternet® ?!!!?! :P
What a sad waste of VC. Action Engine. Making the web safe to charge you even more money for stuff you already have access to.
It's about passion, amazing creativity, and interoperability.
Brilliant insofar that they just need to create enough hype to be bought out, and then never have to do anything else -- since in most of these cases, the giants buying them screws up the whole model anyway, lets it languish, and then buries it to hide their failures -- on that note, Google won't be buying them, but more than likely Yahoo or Microsoft.
Their goal, so clearly enunciated, is to be taken over. Product quality and innovation are simply side-effects! May they fail! Competition is about raising the bar-- not burying the living!!!
Last I checked, the iPhone is a combination of hardware, operating system and applications. One of those applications renders the web "as is", making this type of software/service unnecessary.
If the "editors" of this site aren't even going to read the articles they link to, might I suggest you change the title of this article to "Hucksters in dying market grasp at one last straw by working 'iPhone' into press release"
These guys are using golden gloves to grab at straws. Eventually, it may pay off for them (as the non AT&T market is still a lot of straws).
What they are depending upon, is that a lot of other companies (Motorola) will be building a phone that can do "some" of the stuff the iPhone can. But they still need the infrastructure to handle the cool interoperability. Keep in mind, the iPhone wouldn't be nearly as cool as it is if AT&T didn't do their part.
This idea is just trying to do what Microsoft did many years ago, make an open standard so all the phones can do this stuff and the hardware makers (or the phone companies) don't have to worry about this. We'll just take our cut.
That's where I don't think it will be as successful. Minutes are minutes and people only want to pay so much for them. Once again, Jobs gets it right. Low,easy pricing, all inclusive. That alone destroys the competition.