In January, we broke the news that prolific Silicon Valley angel investor Dave McClure was to set up its own venture capital fund.

Yesterday, the man filed for the fund with the SEC, providing us with more details (hat tip to FormDs.com). The name will be 500 Startups – McClure has long called himself the master of 500 hats – and the initial fund will amount to max. $30 million according to the filing.

McClure has turned to 99 Designs to come up with a logo for the fund (my favorite so far).

Here’s part of the brief for the logo design:

500 Startups is a new, edgy, risk taking seed fund which invests in early stage consumer internet companies.

Incubator/seed investment funds are popping up left and right and we’re looking to differentiate ourself through edgier design. Our founder likes to swear. In public. A lot. Think Ari Gold, but for tech companies and without a suit.

We are not — *not* — your typical fund composed of a bunch of stiff white guys sitting around a board table. We’re young. We’re diverse (Women! People of color!). Our investments are blustering balls of sleepless eagerness, And the markets we’re looking to dominate are murky and emergent.

Our values:

- “Fun at All Costs”… authentic, down-to-earth, *real*
- Creative, Smart, Innovative Environment
- Learn & Educate at Same Time
- Move Quickly, Take Risks, Make [Manageable] Mistakes

Sounds like McClure, alright.

For your reference: McClure has been investing in early stage startups for years.

He is a direct angel investor in a half dozen or more startups, including Mint, Simply Hired, Mashery, bit.ly, UserVoice, SlideShare, TeachStreet and others. And he has invested in dozens more through fbFund, a $10 million Facebook investment fund backed by Founders Fund and Accel, and FF Angel, a Founders Fund early stage fund.

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Dave McClure Files For $30 Million Venture Fund: 500 Startups

We’re hearing that Facebook and Malaysian payments company MOL Global will be holding a press conference shortly to announce a significant new partnership around gaming and payments in Asia. MOL, you may recall, was in the news when it acquired Friendster earlier this year.

The press conference is being held in Kuala Lumpur and will begin shortly, we’re told. More details to come…

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Breaking: Facebook To Enter Into Partnership With Friendster Buyer MOL…

Perhaps you’ve heard the news by now that Matthew Papakipos, the key architect of Chrome OS, is leaving Google to go to Facebook. While it’s not entirely clear what Papakipos will be doing yet at Facebook beyond joining the engineering team, this is massive news. This is the key component of Chrome OS leaving the company before its launch to join what can perhaps be seen as Google’s most important competitor going forward. So what does Google think about the defection?

“Matt made great contributions to Google and Chrome OS, and we know he’ll do the same in his next endeavors. We wish him the best. We have a deep bench of talent and are very excited about the launch of Chrome OS devices later this year,” a Google spokesperson tells us.

So first of all, Google is confirming that despite the loss, Chrome OS remains on track for release this year. This echoes what Papakipos hinted at in his tweet: “Now that Chrome OS & WebGL are in good shape, it’s time for something new. I’m going to work @ Facebook! Love the product and team. Woot!“

Still, while the product may be in “good shape“, it’s still not released, so it’s just odd that he would leave before he sees his vision come to completion. I can only imagine Facebook made an offer he couldn’t refuse.

Second, in their statement, Google refers to their “deep bench of talent.” That’s an interesting way of putting it. Basically, without saying it directly, Google is suggesting that Papakipos was expendable. They’re saying that they’re like a well-built basketball team. Even when they lose a star player, they can survive and keep winning games.

Still, it’s nice to have that star player if you want to win the championship. That appears to be what Facebook is attempting to do.

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Google: Chrome OS Still On Track For This Year Thanks To “Deep Bench…

Today during its keynote at I/O, Google officially announced that the latest version of Android, called Froyo, will feature tethering and wireless hotspot functionality — a big win for Android users. When we broke the news last week we questioned whether or not carriers would be able to disable or charge more for this functionality given that it was baked into the default Android OS. Unfortunately, at least as far as consumers are concerned, it sounds like carriers will get their say. In other words, expect at least some carriers to charge more for tethering.

I asked Hiroshi Lockheimer, who heads up engineering on Android, about the issue and the answer was confusing to say the least. Lockheimer said that Android doesn’t do anything special to tag data that’s being accessed through tethering, though carriers could probably find a way to detect it if they really wanted to. But they probably won’t have to, because Android is making it easy for carriers to either charge extra for, or disable entirely, tethering on the phones they sell. It sounds like these would both require small modifications to the OS.

That’s straightforward enough — carriers and OEMs have been molding Android to suit their needs for a while now. But what about phones that feature the “Google Experience”, which is the term used to describe devices that ship with the stock Android OS (Google Experience phones include the Motorola Droid and Nexus One)? Presumably carriers wouldn’t be able to insert their payment switch if the OS is unmodified, which means these phones could potentially get tethering included in their normal data plans.  We’ll have to wait to find out — Lockheimer said that the answer isn’t clear yet.

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Carriers Will Be Able To Decide Which Android Phones Have Tethering…

If you can find the silver linings, the news is finally getting a little better over at the number three largest carrier in the States after countless quarters of brutal numbers. Sprint still isn't turning a profit or earning net customer adds, but it's continuing to stem losses by posting its first sequential rise in revenue in almost three years, clocking just under $8.1 billion for the quarter; that's still less than the revenue it posted a year ago, but hey, at least it's an improvement over Q4 2009's roughly $7.8 billion. All told, that works out to a net loss of $865 million, which is also better than Q4's $980 million. Net wireless customers fell by 75,000 -- considerably better than Q4's 148,000 -- but net postpaid customers fell by a much larger 578,000, suggesting that Boost Mobile's aggressive marketing is probably working. That's all well and good, but it also likely means that ARPU is on a downward trend; Sprint claims it was flat sequentially and down a dollar from $56 to $55 year-over-year. All told, it seems the company's fortunes are improving by baby steps -- but is it fast enough? And how much is the EVO 4G going to mix things up?

Sprint halves its quarterly customer loss, increases revenue for the first time in ages originally appeared on Engadget on Wed, 28 Apr 2010 14:09:00 EST. Please see our terms for use of feeds.

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Sprint halves its quarterly customer loss, increases revenue for the…

Nokia this morning announced that it has acquired MetaCarta, a privately-owned geographic intelligence company, for an undisclosed sum. Nokia says it will use MetaCarta’s technology in the area of local search and other services.

MetaCarta was founded in 2001, is based in Cambridge, Massachusetts, and employs over 30 people.

MetaCarta’s solutions enable companies to bridge the gap between content and maps. Its products fall into four major categories: the MetaCarta Platform, Geographic Data Modules, GeoWeb Applications, and Hosted Content Collections.

To see an example of what MetaCarta’s technology is capable of, see NewsMap, a hosted map mashup / extension that enables Web publishers to dynamically display maps that show the places mentioned in their news articles. Or check out its GeoSearch News service, which aggregates news from thousands of sources and displays a map of the locations mentioned in stories.

MetaCarta also has a partnership with Microsoft in place to provide its Geographic Search and Referencing Platform to deliver map-based local news within the Microsoft Vine service.

For Nokia, this is the second small acquisition in two weeks – it recently picked up mobile Web browser company Novarra. Its purchase of MetaCarta is another testament to the Finnish mobile giant’s focus on location and navigation-based services for its wide range of handsets that find their way into the hands of customers all over the globe.

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Nokia Buys Geographic Search Technology Company MetaCarta

This morning, numerous British newspapers and tabloids (followed by a wave of bloggers) reported that Facebook use had been “linked to a rise in Syphilis” in a number of cities in the UK. That’s certainly an attention-grabbing headline, but Facebook users out there may want to think twice before putting any weight into the claim. For starters, the article in The Telegraph, which appears to be among the first publications to have broken the news, gets off to a bad start: it says that Syphilis is caused by a virus (it’s actually a bacterial infection — I knew my biology degree would come in handy one day!). But more importantly, the story’s facts are nebulous at best.

For one, the articles in question say that the number of Syphilis infections in the English town of Teesside has grown to a whopping thirty cases in 2009 (up from a mere ten cases the previous year). Sure, that’s a big jump percentage-wise, but the small sample size and the complete lack of details about any of these studies makes the conclusion that Facebook can somehow be linked to Syphilis extremely dubious.

All of the articles quote the same person: Professor Peter Kelly, director of Public Health for NHS Tees, and none of the quotes seem to contain any concrete evidence. Here’s a sample quote taken from The Sun that doesn’t exactly inspire confidence (yes, I know it’s a tabloid, but it has more quotes than the other articles):

“I don’t get the names of people affected, just figures. And I saw that several of the people had met sexual partners through these sites. Social networking sites are making it easier for people to meet up for casual sex. There is a rise in syphilis because people are having more sexual partners than 20 years ago and often do not use condoms.”

This sounds more like an observation based on a small number of cases rather than an established trend, and it doesn’t say anything about causation. I’m hardly the first to notice this — Dr. Petra Boynton of the UK has written a detailed blog post outlining the lack of evidence cited in the report, and Dr. Ben Goldacre is trying to gather more details from the NHS (which has gone silent, according to his Twitter posts). The Guardian has pointed out the weakness of the claims as well.

We reached out to Facebook for their stance. Facebook spokesman Andrew Noyes gave us this statement:

While it makes for interesting headlines, the assertions made in newspaper reports that Facebook is responsible for the transmission of STDs are ridiculous, exaggerate the comments made by the professor, and ignore the difference between correlation and causation. As Facebook’s more than 400 million users know, our Web site is not a place to meet people for casual sex – it’s a place for friends, family and coworkers to connect and share.

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Calm Down. Facebook Doesn’t Cause Syphilis.

The problem with all of these people who are walking out the door at MySpace isn’t so much the number of them, because MySpace is trying to replace them by hiring more people. It’s the fact that the best people are leaving, and taking a lot of the knowledge base with them.

Three star senior employees left to go to cross-town startup Gravity, we reported earlier this week. And tonight we’ve heard that Jeff Webber, the engineering director that oversees the email, instant messaging and other “communications” platforms for MySpace, resigned earlier this week as well to join a startup. He’s been at MySpace for nearly three years and was one of the star engineers and leaders, says one source.

Other recent departures – VP and General Manager of Mobile John Faith, SVP User Experience Katie Geminder and most of her team. And of course CEO Owen Van Natta. And lots more as well, only a few of which we’ve reported.

The company has no direction, says everyone we talk to at MySpace except the top execs, and internal politics are the only thing that seem to matter. Ambitious new projects like Remaking MySpace have been thrown away just because the wrong exec supported it. Anyone who actually wants to build products has left or is looking for a new job, say many, many sources.

If you’re a MySpace employee and feel differently, please contact us anonymously. Because right now all we see is a ton of fluff and absurdity coming from the top, and massive morale problems at the middle management ranks.

The title of this post is actually a recent quote from a (now former) MySpace employee, and it seems to be accurate. They say a company has to hit rock bottom before it can even think about rebuilding into something new. If that’s the case, the time to start rebuilding is, apparently, right about now. But in our opinion MySpace has no chance at all until it is free of the News Corp. death grip.

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MySpace’s Mid Level Management Structure Is Crumbling

Old media loves nothing quite so much as writing about their own impeding death. And we always enjoy adding our own two cents – the AP not knowing what YouTube is, the NYTimes guys reading TechCrunch every day, etc.

Speaking broadly, I like what Reuters, Rupert Murdoch and Eric Schmidt are saying: the industry is in crisis, and the daring innovators will prevail. Personally, I still think the best way forward for the best journalists, if not the brands they currently work for, is to leave those brands and do their own thing.

But as one of the innovators in the last go round, I think there’s a much bigger problem lurking on the horizon than a bunch of blogs and aggregators disrupting old media business models that needed disrupting anyway. The rise of fast food content is upon us, and it’s going to get ugly.

Old media frets over blogs and aggregators that summarize content and link back to the original source. They can’t make a business in that world, they say, so they run the other way and try to find a way to protect and charge for content.

These are the cavemen, or whoever, who were afraid of fire when it was discovered because it burned, or was too technologically advanced to really understand. The smart guys used it to cook their meat and keep them warm, and multiplied.

For our part, we throw a party when someone “steals” our content and links back to us. High fives all around the office. At least there’s some small nod in our direction. And the aggregators like TechMeme can figure out who broke the news. Page views are lost, but reputation is gained.

But for every link there are dozens of sites that outright steal our content with no attribution. Not just spam blogs, even the NYTimes does it. This isn’t a copyright issue – the stories are rewritten by actual people. But it’s far cheaper to simply take the news and rewrite it – if you can get away with it – than to hire people who do actual journalism. Over time, it becomes a competitive tax that is difficult to bear.

But even then, companies like ours can find a way to compete.

So what really scares me? It’s the rise of fast food content that will surely, over time, destroy the mom and pop operations that hand craft their content today. It’s the rise of cheap, disposable content on a mass scale, force fed to us by the portals and search engines.

On one end you have AOL and their Toyota Strategy of building thousand of niche content sites via the work of cast-offs from old media. That leads to a whole lot of really, really crappy content being highlighted right on the massive AOL home page. This article, for example, is just horrendous. One of AOL’s own blogs trashes the company’s spinoff, rambles for miles without any real point, and adds a huge factual error to top things off (”the company is losing money”). Hiring a bunch of people who couldn’t keep their old media jobs and don’t have the stomach to go out on their own and then slapping little or no editorial oversight onto these masses of sub-par journalists leads to an inevitable conclusion – cheap, crappy content. And that crappy content is given a massive audience on the AOL portal.

On the other end you have Demand Media and companies like it. See Wired’s “Demand Media and the Fast, Disposable, and Profitable as Hell Media Model.” The company is paying bottom dollar to create “4,000 videos and articles” a day, based only on what’s hot on search engines. They push SEO juice to this content, which is made as quickly and cheaply as possible, and pray for traffic. It works like a charm, apparently.

These models create a race to the bottom situation, where anyone who spend time and effort on their content is pushed out of business.

We’re not there yet, but I see it coming. And just as old media is complaining about us, look for us to start complaining about the new jerks.

My advice to readers is just this – get ready for it, because you’ll be reading McDonalds five times a day in the near future. My advice to content creators is more subtle. Figure out an even more disruptive way to win, or die. Or just give up on making money doing what you do. If you write for passion, not dollars, you’ll still have fun. Even if everything you write is immediately ripped off without attribution, and the search engines don’t give you the attention they used to. You may have to continue your hobby in the evening and get a real job, of course. But everyone has to face reality sometimes.

Forget fair and unfair, right and wrong. This is simply happening. The disruptors are getting disrupted, and everyone has to adapt to it or face the consequences. Hand crafted content is dead. Long live fast food content, it’s here to stay.

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The End Of Hand Crafted Content

I’d probably feel slightly smug, if I didn’t feel so sick.

Smug that after two weeks of me suggesting that social media might not be an unequivocally Good Thing in terms of privacy and human decency, the news has delivered the perfect example to support my view.

Unfortunately it’s hard to feel smug – hard to feel anything but sadness and nausea – when thirteen innocent people are dead.

I’m talking, of course, about Thursday’s Fort Hood shootings. Better informed and more sensitive commentators than I have written about the massacre itself and what it means for the US army, and in particular for the thousands of Muslim soldiers currently fighting – and dying – for this country. How do you even begin to process the idea of an American soldier shouting the takbir, before mowing down his comrades in arms? On American soil? At the home base of the Combat Warrior Stress Reset program? Yes, that’s definitely one for the experts to parse.

And yet, the first news and analysis out of the base didn’t come from the experts. Nor did it come from the 24-hour news media, or even from dedicated military blogs – but rather from the Twitter account of one Tearah Moore, a soldier from Linden, Michigan who is based at Fort Hood, having recently returned from Iraq.

When Major Nidal Malik Hasan began his killing spree, commanders immediately put the base into lock-down in accordance with military procedure. Movements in and out were severely restricted, as was the flow of information to the news media. Official statements from army spokesperson Lt. Gen. Robert Cone were the only way for reporters to find out what was happening, while other base personnel focused on treating the wounded, and ensuring the threat had been dealt with. Or at least that’s what the commanders thought was happening. In reality Ms Moore’s was tweeting minute-by-minute reports from inside the hospital where the wounded were being taken for treatment.

Reports like (in no particular order)…

[T]hey just brought a CART full of boxes w/transplant parts in them. Not good not good. #fthood

Ok we just saw a soldier on a stretcher w/2 armed guards walking by He didnt look like he was in great condition.

Maj Malik A Hassan. He shouldn’t have died. He should be in the worst suffering of his life. It’s too fair for him to just die. Bastard!

A FUCKING MAJOR? Are you kidding me? A MAJ! For those of ut hat don’t know, Army MAJ have pretty serious rank. Dick

Someone just started shooting in Commanche 4 which is on post housing. What are these people thinking?!?

The poor guy that got shot in the balls http://twitpic.com/oejh5

That last twitpic link was particularly amazing: it showed a cameraphone image – of a wounded soldier arriving at the hospital on a gurney – taken by Moore from inside the hospital. Unsurprisingly, Moore’s – coverage was quickly picked up by bloggers and mainstream media outlets alike, something that she actively encouraged by tweeting to friends that they should pass her phone number to the press so she could tell them the truth, rather than the speculative bullshit that was hitting the wires.

There was just one problem: Moore’s information was bullshit too.

As we now know, Major Hassan was not killed, but rather captured alive. Reports of a second – or third – shooter also now appear to be inaccurate. Whether someone was shot “in the balls” hasn’t been publicly confirmed and, for the sake the of the victim’s privacy, let’s hope it never is – but the point is that many of Moore’s eye-witness reports weren’t worth the bits they were written on. They had no value whatsoever, except as entertainment and tragi-porn.

Two weeks ago, I wrote here about how the ‘real time web’ is turning all of us into inhuman egotists. How we’re increasingly seeing people at the scenes of major accidents grabbing their cellphones to capture the dramatic events and share them with their friends, rather than calling 911. Last week I went even further with my doom-mongering, suggesting that the trend of adding people’s homes to Foursquare without permission was indicative of a generation that prioritised their own fun over the privacy of their friends.

In the actions of Tearah Moore at Fort Hood, we have the perfect example of both kinds of selfishness.

There surely can’t be a human being left in the civilised world who doesn’t know that cellphones should be switched off in hospitals, and yet not only did Moore leave hers on but she actually used it to photograph patients, and broadcast the images to the world. Just think about that for a second. Rather than offering to help the wounded, or getting the hell out of the way of those trying to do their jobs, Moore actually pointed a cell-phone at a wounded soldier, uploaded it to twitpic and added a caption saying that the victim “got shot in the balls”.

Her behaviour had nothing to do with getting the word out; it wasn’t about preventing harm to others, but rather a simple case of – as I said two weeks ago – “look at me looking at this.” (I don’t know about you, but if I spotted someone taking a picture of one of my friends or relatives in a hospital then they would probably need a hospital bed of their own. “Tell me, Ms Moore, exactly how did the iPhone end up in your lower intestine?”)

Perhaps fittingly, I posted some of these thoughts on Twitter yesterday, as events were still unfolding. Many people agreed with me – replying with links to the specific military codes that cover what information solidiers can share, and the HIPAA which deals with patient privacy. But plenty of others felt that by criticising Moore I was advocating censorship.

As one reply put it, sarcastically: “Yes indeed, let’s moderate twitter and vet all tweets…” Others pointed out that it was just this kind of photography and ‘citizen journalism’ that ensured that the truth got out during the Iranian elections. What about the global outrage at seeing the famous YouTube video of Neda Agha Soltan, shown dying after being shot by (alledgedly) pro-government agents?

Yes – what of it?

For all of our talk about “the world watching”, what good did social media actually do for the people of Iran? Did the footage out of the country actually change the outcome of the elections? No. Despite a slew of YouTube videos and a couple of thousand foreign Twitter users turning their avatar green and pretending to be in Tehran, Mahmoud Ahmadinejad is still in power. It’s astonishing, really. Despite how successful ten million actual voters marching through Washington, London and other major cities in 2003 were in stopping the invasion of Iraq, a bit of entirely virtual cyber-posturing by foreigners didn’t lead to real change in Iran.

And so it was at Fort Hood. For all the sound and fury, citizen journalism once again did nothing but spread misinformation at a time when thousands people with family at the base would have been freaking out already, and breach the privacy of those who had been killed or wounded. We learned not a single new fact, nor was a single life saved.

What’s most alarming about Moore’s behaviour is that she probably thought she was doing the right thing. Certainly, looking at her MySpace page and her Twitter account (before the army finally forced her to lock it down) we see the portrait of a patriot. Someone who clearly cares a great deal about others, and who – despite the rhetorical question “remind me why I joined the army again” on her profile – is proud to serve her country. In tweeting from the scene, and calling out the media for not reporting the rumours from inside the base, I’m sure she genuinely believed she was helping get the real truth out, and making an actual difference.

And that’s precisely the problem: none of us think we’re being selfish or egotistic when we tweet something, or post a video on YouTube or check-in using someone’s address on Foursquare. It’s just what we do now, no matter whether we’re heading out for dinner or witnessing a massacre on an Army base. Like Lord of the Flies, or the Stanford Prison Experiment, as long as we’re all losing our perspective at the same time – which, as a generation growing up with social media we are – then we don’t realise that our humanity is leaking away until its too late.

As I’ve already said – and I’m even starting to bore myself now – the answer isn’t censorship (which won’t work), but rather in our social evolution catching up with the state of technology. We need to get back to a point as a society where – without thinking – we put our humanity before our ego. With that in mind, and in the hope of hurrying the process along slightly, I’m going to draw these three nay-saying columns to a close, not with yet another appeal to the better nature of social media addicts but rather with two videos that everyone should watch.

The first is a clip from This American Life which I stumbled across on the blog of the comedy writer, Graham Linehan (Father Ted, The IT Crowd). It’s a thing of beauty. And absolutely terrifying. Just watch it.

The second video is much less heartwarming, but far more terrifying – because it’s entirely real. So real in fact, that I don’t want to embed it here. I want you to make a conscious decision to click through and watch it. It’s the video of the final moments of Neda Agha Soltan’s life.

Even if you’ve seen the footage before, you should watch it again. But this time bear in mind the following: the cameraman was not a professional reporter, but rather an ordinary person, just like the victim. And what did he do when he saw a young girl bleeding to death? Did he run for help, or try to assist in stemming the bleeding? No he didn’t.

Instead he pointed his camera at her and recorded her suffering, moving in closer to her face for her agonising final seconds. For all of our talk of citizen journalism, and getting the truth out, the last thing that terrified girl saw before she closed her eyes for the final time was some guy pointing a cameraphone at her. “Look at me, looking at her, looking back at me.”

Here’s the link.

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NSFW: After Fort Hood, another example of how ‘citizen…

We’re hearing of numerous reports that older versions of WordPress are exposed to security threats. WordPress is one of the largest blogging engines with over 5,317,360 - and counting - downloads for their latest version, 2.8. Many large blogs, including TechCrunch, rely on WordPress to get the news out and post content online.

Writes Lorelle on her WordPress-centric blog:

There are two clues that your WordPress site has been attacked:

First, there are strange additions to permalinks, such as example.com/category/post-title/7B$5BHTTP_REFERER7D/. The keywords are “eval” and “base64_decode.”

The second clue is that a “back door” was created by a “hidden” Administrator. Check your site users for “Administrator (2)” or a name you do not recognize.

To prevent this attack, if you have not done so already, update your WordPress install immediately to the latest version. Change all your passwords to a strong password (cough), including WordPress blog access for all users, database, FTP, control panels, etc. These are all highly recommended procedures.

Automattic, WordPress’ parent company, hasn’t commented on this issue, but we’ll keep everyone updated. In the meantime, we urge you to update your WordPress blog immediately.

(Image via Developer Tutorials)

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Security Threat: WordPress Under Attack

Seriously, these never get old. An enterprising soul has tonight re-created the pivotal Hitler scene from the movie Downfall, but done so with subtitles explaining why Hilter is so mad that Facebook has acquired FriendFeed.

This meme seems be done for just about everything on the web these days, but this one is particularly good because it’s full of good insider-y references. And it closely echoes some of the actual backlash against the news today which played out on FriendFeed.

Among the choice lines:

• “It was a complete talent grab.”
• “I even remember what it was like before Robert Scoble got here!”
• “I used FriendFeed to argue about Obama and talk about health care, and to like tons of pictures from NASA that were awesome, not to spend my time posting pictures of bacon and talking about mangoes!”
• “Of all the companies, they went with Facebook. They could’ve been acquired by Google and I would’ve been happy for them. Or even Twitter: That I could understand. But Facebook?! What the hell?!”
• “Don’t worry, we still have Plurk.”

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Video: Hitler Is Not Pleased About Facebook’s Acquisition Of…