Famous angel investor Ron Conway’s investment focus on real time startups earned him the moniker “Real Time Ron” by his close friends. But he’s certainly not the only venture capitalist out there focusing on this space.

New York based betaworks, an incubator/VC, is also right in the thick of things. They invested early in Summize and gained a sizable chunk of Twitter stock when that company was acquired in 2008 to become Twitter Search.

betaworks’ list of investments is a who’s who of the real time world. Twitter, StockTwits, TweetDeck, Twitterfeed, Tumblr and bit.ly are examples. And they also own a piece of what may be my favorite content site on the Internet – someecards.

Anyway, things seem to be rocking at betaworks based on the email to investors from CEO John Borthwick and COO Andrew Weissmanthat was sent out a couple of weeks ago and forwarded to us. bit.ly, for example, now has a 50% share of the URL shortener market and 130 million weekly clicks on links.

The full email is below.

From: Borthwick John
Sent: Sunday, May 31, 2009 11:23 AM
To: Schilling Mathias; Thomas Blondet; Smith Richard; Jean-Charles Charki; Herbert Allen III; Vigil Hank; Tarek Abdel-Meguid (Terry) Meguid; Ellman Stuart; Jaffe Bruce; Lisa Belzberg; Gillian Munson; Pittman Bob; Dominic Becotte; Joshua Stylman; Peter Hershberg; Stan Pantowich; Ron Conway; David Singer; Cappuccio Paul; Jean Marie Messier; Heiferman Scott; Howard Lindzon; Peretsman Nancy; Brad Reifler; Peter Borish; Brian Gottlieb; Strauss Zelnick; Taavet Hinrikus; Eric Martineau-Fortin; Ted Barnett; Robin Transport; Jon Brod; Russell Andrew; Ken Lerer; Gordon Crovitz; Goldstein Seth; Hilary Bergman; Shen David; Armstrong Tim
Cc: Andrew Weissman
Subject: betaworks / quarterly investor update / June

betaworking
Once again a busy quarter at betaworks — and a good one to boot. We now have 22 companies in the network. They are listed here http://bit.ly/beta-network. We are still in the early days of building betaworks into a new type of media company – one characterized by a loosely coupled network of companies. A network that is connected by shared data services matched with a bottoms up structure. Chris Anderson wrote last week that “the .. new economy, the one rising from the ashes of this latest meltdown, will favor the small … distributed-information networks would do the same outside the walls of a single company. The Web would be globalization taken to the extreme. Projects would be open to the best of breed anywhere, creating virtual flash firms of suppliers and workers that would come together for one product and then re-form for another. “Small pieces, loosely joined” was the mantra.” Its only eighteen months but this is betaworks. We did a revision to our web site and included a interactive presentation on what is betaworks and how we believe what we are building is in essence a new kind of media company. You can find it at http://betaworks.com On to the update. Over the past quarter we spun out our first project, took a majority stake in one company, made two new investments and made solid progress on our other internal product.

bit.ly
Eight weeks ago we spun bit.ly out of betaworks into bit.ly Inc, and raised a seed investment round led by OATV (O’Reilly Alpha Tech Ventures), Social Leverage, Ron Conway, TAG, Chris Sacca, Mitch Kapor and the Founders Fund.

bit.ly has been on a tear since we launched it last summer — let me sketch out what it is, why its useful and offer some data points on progress. bit.ly is on its surface a link or URL shortener, helping people take long and unwieldy links and make them short and easy to share via email, Twitter, Facebook etc. But once you shorten a link with bit.ly the fun begins. You can put a simple “+” on the end of any bit.ly link and see, real time, the pace at which that link is getting shared and clicked on as it moves around these social distribution networks. The pace of growth at bit.ly has been astounding to say the least. Its been a real lesson to us here at betaworks — when you hit a vein things can grow extremely fast. I have had the fortune to work with fast growth products before, bit.ly growth has been like walking up a wall. Some data points. We launched bit.ly late last summer. The growth curve below illustrates the trend. Nine weeks ago when we closed the funding of bit.ly approx. 18m bit.ly links we getting clicked on every week, about 3-4 m per week day (the chart below shows daily clicks through the first week of April). In a little over 6 months we managed to earn a 30% share in the URL shortening market via organic, viral growth.

By the first of May we were doing approx. 50m decodes a week. Last week 130m bit.ly links were clicked on. Three weeks ago we rolled out bit.ly as default within Twitter. Twitter has added 20-30% on top of the viral growth – a great partnership that holds a ton of potential. Closing in upon bit.ly’s nine month anniversary it has over 50% market share. The betaworks / bit.ly team has done a phenomenal job scaling the systems and making sure that not once has a bit.ly link been unavailable. And the real time metrics distinguishes bit.ly from all of its competition. Scaling real time metrics is a huge challenge — one of those things that you only hear about when you slip up. Please if you come by the office mention this to the team of ex AOL engineers who run bit.ly — they are doing a great job. Business model wise we are starting to figure out where the money is. My sense is that there should be some very interesting monetization opportunities we can un-pack.

Three new things …
Partnered with TAG, betaworks took a majority stake in Twitterfeed a content router for publishers to Twitter. Twitterfeed has 150k publishers pushing out a quarter of a million updates daily. It’s a very interesting business — for some background see http://bit.ly/U2QM3. And we did seed investments in two new companies — Uservoice and GDGT — two wonderful companies, both of whom fit right into the betaworks thesis.

Other updates …
- Tweetdeck is doing very very well. The most recent version, out for less than a month, has received approx. a million downloads. Over the past quarter Tweetdeck has continued to pull ahead of its competition. Tweetdeck is the preferred way to access the Twitter stream for over 14% of all users and they send more messages from Tweetdeck than from Twitter.com or any other service.
- Tipjoy opened up an API to power payments for social applications. User and payment growth have both been strong. This is the first social payments API we’ve seen, excited to see how it grows. Stocktwits is doing very well — premium (paid version) is getting rolled out and they closed a series A in the past quarter.
- IILWY — who we told you last time had hired a CEO — rebranded itself to OMG POP. The service is doing great, they closed its B round led by Bessemer.
- Some e Cards is rocking. Last October (@betaday) the announced break-even– they have been cash flow positive ever since then, sold out till the fall. They have approx. 600k followers on Twitter and as I outlined in an essay I wrote 2 weeks ago they, and other betaworks, are leading a transformation in distribution (see: http://bit.ly/UWNtS).
- Lastly, we launched Chartbeat in the spring — we now have 500 paying customers, modest but solid start. Phew — I said it was a busy quarter.

Press roundup
Business Week included in its round up of the Twitter ecosystem five betaworks companies:
Tweetdeck http://bit.ly/4sLvnH
Stocktwits http://bit.ly/Oyukm
Tipjoy http://bit.ly/1911Z1
bit.ly http://bit.ly/10q3FP
Twitterfeed http://bit.ly/U2QM3

GigaOm mused about how we could “upstage Digg” at http://bit.ly/3IfpUO (laying out an interesting roadmap for bitlynow). Jenna Wortham from the New York Times http://bit.ly/4fol1L, Chartbeat press: Better Homes ‘n Garden! http://bit.ly/11YCEz “chartbeat is metrics porn” http://bit.ly/f48j5 “I recently stumbled upon Chartbeat and I’m already addicted.” http://bit.ly/6empP

And someone @ the LA Times is loving our work product!

Thats it for the quarter, onward and best regards to you all

best regards

JB, AW and our small crew

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He’s had enough.

Trent Reznor, better known as the man behind the band Nine Inch Nails, is apparently fed up with Twitter. In a long, free-flowing rant post tonight in the NIN forums, Reznor let his haters have it. What starts out as a diatribe against the record labels (which Reznor has been one of the main opponents against in recent years), quickly turns directly to Twitter, which Reznor seems to blame for allowing him to give too much insight into his personal life — something which some trolls are using against him. And so he’s taking a break from the social media scene, and has turned his Twitter account into a “one-way” stream of NIN-only material, according to his new bio.

And apparently, he won’t change it until “Twitter improves blocking.” The reason for this is people Reznor calls the “Metal Sludge contingency.” Here’s Reznor graphic description of these people:

Metal Sludge is the home of the absolutely worst people I’ve ever come across. It’s populated mainly by unattractive plump females who publicly fantasize about having sex with guys in bands. Kind of like a role-playing game where people NOBODY will fuck make up stories about their incredible sexual encounters with people they WISH they could fuck. It would be kind of funny in a sad and pathetic way except the fun doesn’t stop there – hate and good old-fashioned outright blatant racism are also encouraged to spice things up and remind you how truly ugly these scourges are. TRULY ugly on the inside (the outside is obvious).

But buried in this stuff, Rezor has some good points. First of all, Twitter is quickly getting overrun by spammers. That’s probably not a shock to those of us who follow and use Twitter a lot, but it’s getting to the point where celebrities are now starting to notice it, and it’s turning them off from the service. As he puts it, “So when you see the new accounts that pop up daily on Twitter spewing [garbage], usually from picture-less creatively named profiles, spewing hate at Mariqueen and I, take a moment to visualize the sad couple people behind them.”

Also, he’s thinking about the idea of these networks using real-life verifications to encourage better conversations:

I had thought a while ago about attempting to start a mainstream public forum that required real verification of it’s participants for purposes of context. The idea was to have a place where you can actually discuss whatever and have some idea of who you’re conversing with. For example, if we were discussing drumming techniques and you can see that someone participating in the discussion is a drum instructor vs. a 13 year old kid Googling answers, you’d have the proper context in which to have a potentially valid discussion. If we were discussing EDLC’s heart condition and a real cardiologist speaks up, I’d value his opinion over, say FredFuckFaceWhateverHisLastFuckingNameIs’s “opinion”. Know what I mean? Anyway, we’re in a world where the mainstream social networks want any and all people to boost user numbers for the big selloff and are not concerned with the quality of experience.

That’s obviously another shot at Twitter, but it really speaks to most networks. Facebook is by far the best as it at least tries to make sure real people are using it. This topic is something I have thought about recently, as well.

Reznor kind of gives away what seems to be at the heart of his issues towards the beginning of his rant:

Back to Twitter. I approached that as a place to be less formal and more off-the-cuff, honest and “human”. I was not expecting to broadcast details of my love life there, but it happened because I’m in love and it’s all I think about and that’s that. If this has bummed you out or destroyed what you’ve projected on me, fair enough – it’s probably time for you to leave. You are right, I’m not the same person I was in 1994 (and I’m happy about that). Are you?

Apparently, some people are disappointed with Reznor no longer portraying himself as the crazed counter-culture icon he was in the early-to-mid 1990s. He’s in love now, and it’s changed him. And thanks to Twitter, millions of people have been privvy to that. Other celebrities should consider that a warning. With Twitter, there is no PR person filtering the message about you. That’s both powerful, but also potentially harmful.

Reznor’s post is actually quite insightful, when you’re able to parse it. Especially when compared to Kanye West’s rant about Twitter last month. And his rants have proven useful in the past, especially against Apple’s ridiculous app approval process for the iPhone. Perhaps now, Twitter will step up its game in the fight against spam and trolls.

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Friday night is the Facebook vanity URL landrush (first reported on May 31, announced yesterday officially). At 9:01 pm PST on Friday, just log into Facebook and grab the name you want before someone else does.

While the masses (that’s you) will be fighting for that perfect name on Friday night, some lucky few people won’t need to bother waiting in line. Facebook employees have already grabbed theirs (taking Facebook.com/Mike, which is what I wanted). And apparently “key journalists” won’t have to wait in line, either.

In an email today, Facebook told me “We wanted to let you know that we decided to reserve usernames for the key journalists and outlets we work with. Look out for an email from someone on the communications team with more details.” Other writers here at TechCrunch got the same email.

I feel sort of bad about posting this, since Facebook is actually doing us a favor. But I also think it’s kind of BS that Facebook is giving some people, employees included, first shot at the names. My guilt only extends so far, though. You suckers wait in line. I’m grabbing my name in advance.

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Earlier today, Apple sent out an email (embedded below) to developers who are testing the latest iPhone 3.0 software, asking them to help do one final stress test the new Push Notification service. The app picked for this test was AOL’s AIM instant messaging application, which makes sense given that IM apps are likely to be the apps that end up using Push Notification the most.

Push Notification, for those who haven’t been following news about it for the past year, is the system Apple developed to alleviate the fact that it won’t allow third party apps to run in the background of the iPhone. Apple claims there are security concerns, battery life concerns and performance concerns that prevent background apps from being feasible at this time on the iPhone (though the company is considering ways to do background apps in the future). Instead, it has asked developers to use its servers to push out certain tasks (like IMs) that come to your phone even when that application isn’t running.

Apple first talked about Push Notification a year ago at WWDC, and said it should be available around September of 2008. When that deadline came and went, Apple was largely silent, only remarking briefly that the system wasn’t yet ready and it wanted to make sure it was perfect before rolling it out. A smart move considering the rough start its MobileMe service go off to. So we waited and waited, until finally Apple announced that it would be a part of the iPhone 3.0 software, due out June 17.

Watch the video below to see Push Notification in action with AIM. One quick note: The video makes it look like there may be a delay between an IM sent and received, but I’m told it’s basically instantaneous — under a second.

[thanks Kyle]

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