Big congratulations to the Sphere team for selling their company to AOL (and to AOL for a smart acquisition). It couldn’t have happened to a nicer and more talented group of people. I’ve had the pleasure of working closely with Sphere as an adviser for several years. My main early contribution was to bring together the founding team – Tony Conrad, Steve Nieker, and Martin Remy (they generously give me co-founder credit as well). I knew Tony, Steve and Martin from my Oddpost days (Tony was a VC investor in Oddpost; Steve and Martin had an RSS/blog search and recommendation product called Waypath that we were thinking of integrating into Oddpost). Tony had left his VC job and Steve and Martin were looking for a business person to help them grow their company. So I introduced them and they hit it off. I helped out with the initial Sphere launch as much as my job allowed (I was at Yahoo at the time) and they went on to build a great team, create a series of innovative content matching services, and sign up over 60,000 sites to use their products. I’ll also note that Sphere is one of a new breed of 100% virtual companies (everyone works from their own home offices and meets up in person every few months) – good to see a virtual company build a strong business and get acquired by someone like AOL.
Blog
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WordPress.com bloggers get book deals
The New York Times reports that two WordPress.com bloggers, Stuff White People Like and I Can Has Cheezburger, have received book deals. “Stuff” apparently got a $300k advance. The books based on their blogs are due out this Fall. Congrats!
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The last two months
Time’s been flying since we announced our fundraising. That news ended up getting a lot of attention, followed by even more attention on subsequent developments like the release of Prologue and the addition of BuddyPress creator Andy Peatling to the Automattic team. And now we have a major WordPress 2.5 release that’s getting lots of buzz and great early reviews.
At the moment, we’re working on the 2.5 roll out and some promising post-2.5 features, we’re growing our team (in addition Andy, Marianne and Nick have recently joined), our traffic continues to grow impressively (I just checked our Quantcast numbers: 144 million people visited a WordPress.com blog in the last 30 days – that’s a double digit percentage of the internet population!), and after a week in New York I’m happy to report that large media companies are continuing their embrace of the WordPress platform (150 WP blogs at the New York Times, dozens of new WP blogs at Fox and CNN, Fox also run their entire election coverage on WP, and many more). And then there’s of course Stuff White People Like, a break out new WordPress.com blog that’s been burning up our charts, giving CNN’s Political Ticker and the venerable Lolcats a run for their money.
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Automattic fundraising
As Om and Matt report, we closed a $29.5 million round of financing for Automattic today. Coincidentally, the closing is happening during one of our bi-annual company get-togethers, so we’ll be able to toast the occasion in person! (Team Automattic is spending the week on a ranch in the beautiful desert of Southern Arizona.)
Over the last two years, Automattic’s business has been expanding at a rapid rate. Our most prominent service, WordPress.com has grown to over 2 million bloggers. Their blogs are read by an astounding 114 million unique visitors from all over the world and over 42 million from the US every month (according to Quantcast, that makes us the #12 site in the US, ahead of sites like Facebook and Wikipedia). Revenues have been growing as well, we’ve been profitable as a business, and we’ve accomplished all of this with a fantastic team of fewer than 20 people.
Late last year we sat down to figure out how we’d like to expand our business in 2008 and beyond. Since things are working well, we didn’t want to make any major changes. However, we did set a couple of new goals. One was to put enough money in the bank to have financial security for years to come. Another was to invest more aggressively into our “other” products and services (other than WordPress) like Akismet, Gravatar, and bbPress. Today’s financing will help us achieve both of those goals.
The financing is led by our existing investors Polaris Venture Partners, True Ventures, and Radar Partners. We thank them for this solid vote of confidence. We also have an exciting new investor joining us: the New York Times. In addition to investing in us, we are also entering a partnership with the Times to expand their existing WordPress blogging infrastructure and to create new ways of connecting WordPress bloggers with the New York Times and its readers.
Update: VCMike has posted his thoughts on the deal (VCMike is Mike Hirshland, who is an Automattic board member and has led Polaris’ investment in us).
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Crunchies
The Crunchies were very fun last night. Congrats to the organizers, thank you for voting for me and for WordPress, and congrats to the Automattic team and WordPress community: Facebook, WordPress major Crunchies winners!

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Some comments on free software
Rob Howard (who runs Telligent), says on his blog:
WordPress is made available for free because investors and backers of the business are making the captial contribution to bring the consumer cost to $0.
That’s wrong and indicates a misunderstanding of the economic model that underpins a project like WordPress.
WordPress is made available for free because it is becoming increasingly obvious that a great way (the best way?) to create software is to give it away for free to drive maximum adoption and then charge for the add-on services that support that adoption in various ways.
This model has worked well for WordPress. WordPress has been thriving as an open source project that anyone can use and contribute to for free and build commercial businesses on top of if they so choose. As WordPress adoption has grown, commercial services have grown alongside it. There are now dozens if not hundreds of businesses that supply services like like WordPress hosting, spam filtering, template design, plugin development, ad serving, technical support, etc. Automattic is one of those businesses. We raised VC money two years ago ($1.1mm) and invested it to build out a number of services including the Akismet anti-spam service and the WordPress.com blog hosting service. Automattic does not require – as Rob seems to think – large infusions of VC money to stay in business. Quite the opposite, we’ve been profitable for over a year. But even if we weren’t, it would have no effect on the WordPress software itself. That’s one of the beauties of this model. Because paid commercial services like the ones provided by Automattic are separate from the free open source core software, Automattic could go out of business tomorrow and WordPress could continue on as a thriving open source project exactly as it does today, without any need for investors or backers to keep it afloat.
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OLPC versus eeePC
I am now the lucky owner of both an OLPC XO and an Asus eeePC. I wrote about the eeePC before, now I got a chance to compare these two Linux-running, cheap ($200), kid-friendly, mini-PCs.
Let’s look at size first, since that’s a major differentiator for both:

From this angle, they seem about the same size. The keyboards are both 8″ x 3″ (the XOs keys are smaller and the rubbery type). The screen is slightly larger on the XO.
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May I ask for your vote?
My platform is free biodiesel for all!
Please vote for me: Best Startup CEO.
And for WordPress: Most likely to succeed.
Here’s how the respective nominees compare on Alexa: CEOs, products. 🙂
Also, if you are into that kind of thing, check out how much money each company has raised (follow the Crunchbase links from the first two links above). Our growth-to-money-raised ratio is completely off the charts.
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MTOS and Drupal
In the last couple of weeks, there has been significant news from two WordPress competitors. Drupal lead developer Dries Buytaert has raised VC money to start a commercial company called Acquia to support Drupal, and SixApart has released an open source version of their Movable Type software dubbed MTOS. I think both are good developments for the blogging and web publishing markets. They will make more high quality products – backed by viable companies – available to satisfy the accelerating growth and needs of these markets.
Most interestingly, this also means that three of the leading blogging/personal publishing platforms are all open source now.
I’m not sure how much the success of WordPress has influenced these two developments, but they do seem to validate the path that WordPress and Automattic have taken.
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Bubbly video
[vodpod id=ExternalVideo.444443&w=425&h=350&fv=id%3D5321777%26emailUrl%3Dhttp%253A%252F%252Fvideo.yahoo.com%252Futil%252Fmail%253Fei%253DUTF-8%2526vid%253D1572353%26imUrl%3Dhttp%25253A%25252F%25252Fvideo.yahoo.com%25252Fvideo%25252Fplay%25253Fei%25253DUTF-8%252526vid%25253D1572353%26imTitle%3DHere%252BComes%252BAnother%252BBubble%252B-%252BThe%252BRichter%252BScales%26searchUrl%3Dhttp%3A%2F%2Fvideo.yahoo.com%2Fsearch%2Fvideo%3Fp%3D%26profileUrl%3Dhttp%3A%2F%2Fvideo.yahoo.com%2Fvideo%2Fprofile%3Fyid%3D%26creatorValue%3DbWhlbXBleQ%253D%253D%26vid%3D1572353]
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The tyranny of unread items
A few weeks ago, I decided to do something about the hundreds of unread emails and RSS items staring me in the face every day. Even though I was diligently filtering less important emails and feeds away from my inbox and into sub folders, I was still getting too many “holy smokes! 273 unread items, oh wait it’s just my Swim Cap Fashion News folder” moments. My theory was that even though I was not checking those items very frequently, just seeing the folders bolded and the unread items count nagging me was a adding up to a significant distraction.
Here’s what I did about it:
- For email, I unsubscribed from every newsletter I could find, I added a bunch more filtering rules to send email that doesn’t require my immediate attention to a subfolder (which also keeps them off my Blackberry), and – most crucially – I started hiding all subfolders from view so I don’t even see anything other than the inbox. Out of sight, out of mind.
- For RSS feeds, I noted which feeds I was looking forward to reading and then unsubscribed from everything else. I went from 137 to 42 subscriptions. We’ll see how long that lasts.
- I’ve also changed my LinkedIn and Facebook accounts to never send me emails under any circumstances – Facebook has 28 email different settings to turn off! – which probably means I’ll forget to ever check those accounts again.
The end result? It feels like I got back an hour or two of uninterrupted time every day. I know I’m not literally getting that much time back, but the effect of reducing (or simply hiding) my unread items has been clearly noticeable.
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Insightful (and funny)
Looks like this came out a while back, but it’s new and fascinating to me:
(from Ron via Diane)
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EeePC

A while ago, I asked for a Firefox computer, a simple solid state laptop that’s optimized to run just Firefox. Yesterday I got an EeePC and it almost fits the bill.
What I like:
- It’s affordable ($399, models under $300 are forthcoming)
- It’s small and light (and cute)
- The out of box experience was very nice, just the basics, none of the extra steps and bloatware you get with PCs and Macs
- It runs everything I need: Firefox, Open Office, Skype (all of it, plus a bunch more, pre-installed)
- It starts up quickly (under 30 seconds, much faster than my MacBook) and is very silent (it has a solid state drive)
What I don’t like:
- The screen and keyboard are tiny
- I was hoping for a longer battery life (seems like it gets about 3 hours)
Update: Check out my comparison of the eeePC and the OLPC XO
