Pardon My Paranoia: Personal Privacy and the Economics of Startups

Personal privacy, how it relates to the business models of startups and what you can do to fight an informed fight.

Transcript

2. Who is this guy?
3. Not One of These
4. Who is this guy? ™  Web developer at UT Austin ™  (Now) Former Grad Student at UT Austin
5. Most Importantly! ™  Overlord of dorkbot austin
6. Privacy as a Pie Graph
7. Privacy as a Pie Graph
8. Percentage I Am Covering
9. Percentage I Am Covering
10. Lessons Learned from Television Detectives
11. Lessons Learned from Television Detectives ™  Money is one hell of a motive
12. Lessons Learned from Television Detectives ™  Money is one hell of a motive ™  When in doubt – follow the money
13. A Story in Three Parts
14. A Story in Three Parts ™  What’s the product?
15. A Story in Three Parts ™  What’s the product? ™  Who’s the customer?
16. A Story in Three Parts ™  What’s the product? ™  Who’s the customer? ™  What’s the worst that could happen?
17. A Story in Three Parts ™  What’s the product? ™  Who’s the customer? ™  What’s the worst that could happen?
18. Mass Communications 101 ™  In an advertising driven environment, the creative output is not the product – eyeballs are the product.
19. People That Sell Objects ™  Wal-Mart ™  Amazon ™  Target – We’ll come back to them
20. People That Give Away Things ™  Google ™  Facebook
21. People That Sell Some Things ™  Spotify ™  Farmville
22. A Story in Three Parts ™  What’s the product? ™  Who’s the customer? ™  What’s the worst that could happen?
23. Typical Startup Biz Models
24. Typical Startup Biz Models ™  Pure Venture Capital
25. Typical Startup Biz Models ™  Pure Venture Capital ™  Advertising
26. Typical Startup Biz Models ™  Pure Venture Capital ™  Advertising ™  Data Mining
27. Typical Startup Biz Models ™  Pure Venture Capital ™  Advertising ™  Data Mining
28. Venture Capital Outcomes ™  Acquisition
29. Venture Capital Outcomes ™  Acquisition ™  Going Public / IPO
30. Venture Capital Outcomes ™  Acquisition ™  Going Public / IPO
31. Acquisition ™  Companies seeking acquisition typically look to userbase size as their guiding maxim ™  All Intellectual Property is transferred to new owner ™  Old privacy policies are typically nullified
32. Venture Capital Outcomes ™  Acquisition ™  Going Public / IPO
33. Going Public ™  Now legally obligated to “maximize shareholder value” ™  Generation of revenue is the new maxim
34. Typical Startup Biz Models ™  Pure Venture Capital ™  Advertising ™  Data Mining
35. Advertising Outcomes ™  3rd Party Tracking Cookies ™  Google bypassing browser security restrictions ™  Collusion browser plugin
36. Collusion Plugin
37. Typical Startup Biz Models ™  Pure Venture Capital ™  Advertising ™  Data Mining
38. Data Mining Outcomes ™  Acting as a middleman ™  Foursquare / Path – We’ll get to this in a minute
39. A Story in Three Parts ™  What’s the product? ™  Who’s the customer? ™  What’s the worst that could happen?
40. Least Bad ™  Junk Physical Mail ™  Junk Email
41. Medium Bad ™  Variable pricing ™  Double-edged sword ™  Amazon / Google Wallet
42. Pretty Bad ™  Direct invasion of privacy ™  Path’s address book debacle ™  Target pregnancy revelation
43. Really Bad ™  Michael Phelps
44. Personal Privacy = Personal Security
45. Alternatives?
46. Alternatives for consumers?
47. Alternatives for consumers? ™  Pay for things
48. Alternatives for consumers? ™  Pay for things ™  Seriously, pay for things
49. Alternatives for consumers? ™  Pay for things ™  Seriously, pay for things ™  Read privacy policies closely
50. Alternatives for consumers? ™  Pay for things ™  Seriously, pay for things ™  Read privacy policies closely ™  Disable 3rd Party Cookies
51. Alternatives for producers?
52. Alternatives for producers? ™  Make products worth paying for
53. Alternatives for producers? ™  Make products worth paying for ™  Avoid VC as much as possible
54. Alternatives for producers? ™  Make products worth paying for ™  Avoid VC as much as possible ™  Fund it yourself - Kickstarter
55. Questions?