Mr. Karpeles (Photo: Twitter)

Yesterday the Department of Homeland Security shut down Bitcoin trading platform Mt. Gox's ability to accept or send transfers using Dwolla, a mobile payment service. A representative from Dwolla told Betabeat that the DHS had sent them a "seizure warrant" for the account, but declined to provide further detail. Now, in the warrant, obtained by Ars Technica, the reason for the seizure has been revealed: DHS believes Mt. Gox is operating an "unlicensed money transmitting business."

In the warrant, a special agent for Homeland Security Investigations states that he has reason to believe Mt. Gox is breaking 18 U.S.C. section 1960, a crime punishable by up to 5 years in jail. The law reads:

(a) Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.
(b) As used in this section—
(1) the term “unlicensed money transmitting business” means a money transmitting business which affects interstate or foreign commerce in any manner or degree...

According to the warrant, DHS used an undercover informant who bought Bitcoins using Dwolla and then had them converted to dollars. Explains Ars:

Tracing that money, HSI was able to see that the money passed through a Wells Fargo account, number 7657841313, which was created by a single authorized signer: Mark Karpeles, the president and CEO of Mt. Gox.

Because Mr. Karpeles did not register Mt. Gox as a money transferring business when he opened the Wells Fargo account, the DHS says they have the right to seize the funds in Mt. Gox's Dwolla account, which is comprised of "Mt. Gox customers that withdraw said funds from Mt. Gox and direct their transfer to Dwolla."

You can read the full warrant here.

(Photo: Silicon Angle)

Update: Warrant Reveals Homeland Security Seized Mt. Gox’s Dwolla Account for ‘Unlicensed Money Transmitting’

The Department of Homeland Security appears to have shut down the ability to use Dwolla, a mobile payment service, to withdraw and deposit money into Mt. Gox, a Bitcoin trading platform. A Dwolla representative confirmed the move to Betabeat. Chris Coyne, cofounder of OKCupid, posted a screenshot of an email he received from Dwolla, stating that due to recent orders from the Department of Homeland Security, Dwolla cannot complete the bank transfer to Mt. Gox.

A representative for Dwolla told Betabeat that the company is "not party" to this matter and encourages those with questions to reach out to Mt. Gox or the DHS.

"The Department of Homeland Security and U.S. District Court for the District of Maryland issued a 'Seizure Warrant' for the funds associated with Mutum Sigillium’s Dwolla account (a.k.a. Mt. Gox)," he said. "In light of the court order, procured by the Department of Homeland Security, Dwolla has ceased all account activities associated with Dwolla services for Mutum Sigillum while Dwolla’s holding partner transferred Mutum Sigillium’s balance, per the warrant."

"Dwolla requires a court order before honoring requests such as seizing funds or revoking access to an account," he added.

Here's a screenshot of the email, posted to Hacker News:

Update: Here is what Mt. Gox sent us in response to a request for comment:

Thank you for the email. We can see that the Dwolla transactions are not getting processed right now. We will contact Dwolla and post an announcement regarding this. Your patience is appreciated till then.

Update 2: Mt. Gox has posted the following comment to its Facebook page:

Like many who have contacted us, MtGox has read on the Internet that the United States Department of Homeland Security had a court order and/or warrant issued from the United States District Court in Maryland which it served upon the Dwolla mobile payment service with respect to accounts used for trading with MtGox. We take this information seriously. However, as of this time we have not been provided with a copy of the court order and/or warrant, and do not know its scope and/or the reasons for its issuance. MtGox is investigating and will provide further reports when additional information becomes known.

Dwolla founder Ben Milne. (Photo: Twitter)

Dwolla*, the Des Moines-based payment platform that has a strong presence in NYC, announced today that it has received a $16.5 million Series C investment led by venture capital behemoth Andreessen Horowitz, with contributions from NYC firms Thrive Capital* and Union Square Ventures. The fresh funding will allow Dwolla to double its staff of 40 to 80 and open a third office in San Francisco, according to The Next Web. Andreessen partner Scott Weiss will be joining Dwolla's board.

Dwolla is a payment network that allows users to transfer money back and forth for free for transactions under $10 and a flat rate fee of $0.25 for those over $10. The platform hooks directly up to your bank account and offers transfer fees lower than what banks or credit card companies typically charge, positioning it as a legitimate competitor to conglomerates like Visa and Mastercard (not to mention that rumored deal with Square).

But the company also appears to have PayPal in its sights. In October, Dwolla announced a new MassPay feature that competes with PayPal's "Mass Payment" function; MassPay allows users to send out payments to up to 2,000 people at once with just a few clicks. It's worth noting that Jeff Jordan, the former President of PayPal, is a partner at Andreessen.

This is one of the largest investmens Andreessen has made in a payment services startup, though it's made smaller bets on Stripe, a payment system for developers, and Balanced.

Mr. Weiss, who led the investment, explained on his blog why the firm chose to make such a big bet on Dwolla:

• Founder/market fit: Ben is one of the most determined and scrappy entrepreneurs we’ve met and has a deep knowledge of the entire payment network.

• Ridiculous market size: Dwolla’s FiSync is taking on ACH and FedWire, a combined $730+ trillion market with real-time transactions, new revenue streams and incentives for key players in the payment process.

• A snowball of traction: Its annual processing run rate has moved from the hundreds of millions to billions and its business development pipeline is chock full of opportunities.

Mr. Weiss signed off: "I am excited to be joining Dwolla’s board of directors and look forward to helping Ben build the next multi-billion dollar payment company!" Enjoy all that dough, boys.

*Disclosure

Mr. Vinh. (Photo: Tumblr.com)

Shopping Site Goes Shopping Back in 2011, Khoi Vinh, the former design director for The New York Times’s website, attempted to launch an iPad collage maker called Mixel that even Taylor Swift would love. The interface was kind of clunky, and the company soon pivoted to a smoother iPhone product, which became fairly successful. And now Mixel has been acquired by the custom product giant Etsy.

No, you won't be creating any collages of your twee collectables any time soon. According to AllThingsD, The Mixel team is being acquired for its stellar mobile talents. Mr. Vinh and his cofounder Scott Ostler, along with employees Akiva Leffert and Roy Stanfield, will all make the move to Etsy's Brooklyn offices. Mixel will be shutting down the social side of its app, but will leave up its collage-making tool. In an email to Betabeat, Etsy CTO Kellan Elliot-McCrea explains, “We expect our mobile traffic to surpass desktop traffic by the end of 2014." 

Not Even Punking You Kanye West's favorite Pinterest-like site, The Fancy, just expanded its subscription box service, originally a monthly plan that gives you $60 of curated goods for $30. Now everyone, not just the minds at Fancy, can choose a bunch of items to send out to their adoring fans. Fancy gets to split the profits with you, of course. The first partner is Ashton Kutcher with his A+ Box, which includes brain-shaped ice cubes and mustache-shaped Band-Aids.

Iowa Now Trendiest State Dwolla, the fast-growing money transfer app, reached a pretty big milestone this week. The company announced its partnership with the Iowa state government to help modernize the state's tax system. Starting soon, businesses will be able to use Dwolla to pay the cigarette stamp tax, which accounts for about $100 million of Iowa's revenue each year. In a blog post, the company seems to be looking to the future already: "And while you may not be able to pay your taxes using Dwolla today, you are going to start seeing our logo pop up here and there as the state looks to modernize the payment experiences and do better business for the 21st century taxpayer and economy (e.g. mobile payments, low-cost transfers, and real-time notifications, etc.)."

Norman Mailer Badge Foursquare recently partnered up with Voice Media Group, the company that was spun off from Village Voice Media, now without the icky Backpage.com. The Voice's Places event data will now be syndicated on Foursquare and the company's highly popular "Best Of" will be integrated into the service as well.

Let's All Go to the Lobby: Dogfish Accelerator, the first accelerator program for film producers, launched this week. Started by a former TechStars associate, James Belfer, the accelerator puts film teams in a three-month intensive training and networking program and gives them $18,000 in seed funding, along with free office space. But why wouldn't you just try a Kickstarter and go to Sundance?

Award Tour See.Me, the social network for artists, is currently running a bunch of contests for its 600,000 users. There's $125,000 in grants and awards up for grabs. The site has just announced that founding Tribe Called Quest member Q-Tip is going to serve as a judge for its music competition. In a press release sent to Betabeat, William Etundi, founder and CEO of See.Me, said, "Our simple goal is support creative people with recognition, shows and grants and we are super excited to bring Q-Tip into that process.”

Fund My Relationship Coming Soon If you've ever wanted your neighbors to pick your next significant other, then you should try ChainDate. The site is billing itself as the world's first site that uses crowdsourcing to find you a match. Every user gets "Wingpeople," users who like the same type of person that you do. The site matches you up with people that these similar-minded users thought were cute too. Sounds a bit competitive.

Nothing Really Matters The mobile analytics firm Adeven claims that over 435,000 new apps will be added to the iOS app store in 2013. That's too many apps to fit on your tiny phone, but don't worry, you won't even notice most of them. The firm also reports that 60 perecent of apps are "zombie apps," or apps that go completely undiscovered by iPhone users. A Zombie App Survival Guide is surely forthcoming.

Stuff Michelle Obama Likes  Whole Kids Foundation, PACT and Indiegogo are teaming up to help build urban sustainable gardens across the country. Leaders raise $2,500 on Indiegogo pages and Whole Kids Foundation will provide additional help like gardening materials. Crowdfunding kind of saves the day again.

Help Out, Y'all LuckyAnt, the crowfunding platform for small businesses, is hosting a very large crowdfunding campaign for 9 South Street Seaport businesses to help them out in the enduring disaster of hurricane Sandy. There's 19 days left in the project to rebuild historic Front Street and over $10,000 has already been raised.

Wake Up, Loser If waking up to the blaring sound of beeping or shocking radio static isn't for you, then you should download Mood O'Clock. It's the first emotional alarm app for Android, which lets you choose what kind of mood you want to wake up to. Depending on what you choose, the app will play you a corresponding morning soundtrack. We need a setting to help us wake up feeling like a brogrammer for those special Saturdays.

(Photo: DeviantArt)

2012 was quite a year for the New York tech community. Several NYC startups scored monster exits, while others raised millions to up their chances of scoring a ping pong table for the office. Whether or not that hotly debated bubble bursts, we imagine 2013 will be another exciting year for NYC's tech set. Here are some New Year's resolutions from some of the NYC tech community's boldest names.

Rachel Haot, NYC Chief Digital Officer

1.      Cook more meals at home (FreshDirect and BlueApron)

2.      Shop local (local goods on Etsy: http://on.nyc.gov/ZPpbIp)

3.      Read more books (both physical and digital: all three NYC public library systems now offer e-books)

4.      Volunteer more often (http://www.nycservice.org/#s)

5.      Learn a new skill – like middle eastern cooking or how to use a letterpress.

Ryder Ripps, Cofounder of OkFocus

Work more, vroom bye haters.

Mallory Blair, Cofounder of Small Girls PR

Identifying our year's wins and losses and using that information to create defined roles for new team members to hire in the first quarter. Then the rest of 2013 is  about running the business instead of being the business.

Cindy Gallop, Founder of Make Love Not Porn

1. To champion and help every entrepreneur who wants to change the world through sex....This is the one place with enormous potential for innovation, disruption, and colossal financial returns, that the tech world refuses to go. I want to help drive more open-mindedness in the tech community around startups to do with sex.

2. To identify and use anything that is the future of money and payments. This resolution is born out of the frustrations and difficulties we've had setting up our payments infrastructure for MakeLoveNotPorn.tv.

Those difficulties led us to spend a lot of time and effort researching and talking to fintech startups, with the result that I am now passionate about working with and using anyone/thing inventing the future of money, finance and payments, both in an MLNPTV context and also a personal context.

Paul Berry, Cofounder of RebelMouse

My resolution is to keep focused and clever and build the fundamental culture for RebelMouse to grow from.

Christina DiRusso, PR Manager at Livestream

More: Reading, Engineering (currently learning to be a Livestream Encoding Engineer), Entertaining in, and exploring, my new Brooklyn hood, and Reality-TV watching. Less: Emailing, English (honing my Italian skills), Gchatting with my dad.

Josh Miller, Cofounder of Branch

Figure out how to get my (non-techie) roommates to be addicted to Branch, and learn how to rap so I can complement A-Flock's beat boxing (one of our engineers).

Dave Winer, Software Developer and Writer

My resolution for the New Year is: I will do what I can to make tech writing more literate. (Ed. Note: Read more about Mr. Winer's resolution here.)

Ricky Robinett, Hacker at Ordr.in

Be the first hacker in XXL.

Jason Baptiste, Cofounder of OnSwipe

On a personal level, I really want to get back into writing and blogging.  It's why I started Onswipe and lead to my book coming out.  On a professional level?  It's growing Onswipe in a revenue generating machine.  It's an aggressive goal and year, but we have the team + traction to do it.

Jose Mejia, Editorial Director at Huge

One of my resolutions, which I think a lot of people can relate to if they're honest with themselves, is to stop using work/being busy as an easy excuse for what are really just basic character flaws that I need to fix. If I can avoid issuing  "Sorry I'm running late, something came up at work" texts like they're stock in the Shitty Friend IPO, it'll be a good year.

Alex Taub, Biz Dev Builder at Dwolla

My New Years resolution is to be faster and better at creating relevant pop culture twitter parody accounts- a la @invisibleobama

Suri Ratnatunga, Community Lead at Sidetour

To take no cabs in 2013 unless I'm stranded/drunk in Brooklyn.

Crystal Fawn, Community Engagement at Atavist

To read all the books that Stanley Kubrick based his films on.

Taylor Lorenz, Social Media Specialist at McGarryBowen

Stop and think before including emoji in every text message.

Nitasha Tiku, Editor of Betabeat

Make friends based on charger compatibility.

This is a guest post from Gary Sharma (aka “The Guy with the Red Tie”), founder and CEO of GarysGuide and proud owner of a whole bunch of black suits, white shirts and, at last count, over 40 red ties. You can reach him at gary [at] garysguide.com.

A couple of months ago, while attending the TechCrunch Disrupt conference in San Francisco, I had the opportunity to chat with a ton of upcoming startups, and I noticed a surprisingly higher-than-usual number of enterprise-focused companies. Yesterday Union Square Ventures' Fred Wilson wrote an interesting post highlighting how the consumer web might be entering a stage of maturation as the action shifts from the desktop to mobile, where it's becoming increasingly harder to reach scale. 500 Startups' Dave McClure has an excellent rebuttal post on the topic.

Another one of my favorite tech bloggers Y Combinator's Paul Graham wrote a terrific must-read essay last week on startup ideas. Quoting PG: "The way to get startup ideas is not to try to think of startup ideas. It's to look for problems, preferably problems you have yourself" and "Live in the future and build what seems interesting."

In other cool news, City24/7 is turning a bunch of pay-phones across the city into touchscreen smartscreen kiosks. This is the first experiment of its kind in the country, and they'll be rolling out 250 of these in a pilot project. Down in Nolita, 3D printer startup MakerBot just opened their first MakerBot Store at 298 Mulberry where you'll be able to get your hands on the printers, filaments, pre-made items 'n more. Nice!

ERA Accelerator's Winter 2013 application deadline is this Friday (November 30).

Don't miss TechDrinkup this Thursday, where folks from Bravo will be in the house doing an open casting call for the NYC edition of their show Startups. That's right. Reality TV stardom is within your grasp!

Also a couple of Sandy fundraisers / benefits this week: Goodnik and New Work City are hosting the 'Mustache-Sandy' event on Friday, and then there is the #NYTechResponds hackathon benefit on Saturday. And coming up next week are TEDxSiliconAlley: Rise of the Machines with guest Ray Kurzweil on December 3 and the AlleyNYC Holiday Party on December 6.

And now let's see whats going down in the Alley this week...

Business Insider: Ignition - Future Of Digital
With Dr. Mehmet Oz (The Dr. Oz Show), Jill Abramson (The New York Times), Jeffrey Bewkes (Time Warner), Don Graham (The Washington Post Company), Jeff Weiner (LinkedIn), Bradley Horowitz (Google) and more.
Tuesday (Nov. 27), 9 a.m. @ Time Warner Center, 10 on the Park, 60 W. 60th Street

Media Preview 2013
Panelists include Saul Hansell (Founder, Sii and former New York Times tech correspondent), Reed Phillips (media investment banker, DeSilva + Phillips), Emily Steele (media and advertising correspondent, Financial Times) and Lee Stimmel (head of creative agency, Columbia Records).
Tuesday (Nov. 27), 6 p.m. @ Frankfurt Kurnit Klein & Selz, 488 Madison Avenue

NYC Gaming November: Demo Night
Demos by Joshua DeBonis (Meriwether), Scott Rapp (Instreamia), Greg Irwin (BigTwist), Eric Schwertzel (Garfield's Collectibles), John Nguyen (Super Bunny Breakout) and Ien Cheng (Grasshopper).
Tuesday (Nov. 27), 6:30 p.m. @ Microsoft, 1290 Avenue of the Americas

MakeIt NYC: Secrets of Kickstarter Panel
With CW&T (creators of the Pen Type-A), Bitbanger Labs (creators of Remee, the REM-enhancing lucid dreaming mask), Hickies, Josh & Eric (creators of the Mason Shaker) and Yury & Joel (creators of the Pulse Sensor).
Tuesday (Nov. 27), 7 p.m. @ University Settlement - Speyer Hall, 184 Eldridge Street

Ultra Light / NY Angels Novemberfest Showcase
A startup showcase and free beer provided by local beer entrepreneurs such as Kelso, Bronx, Rockaway, Harlem and Brooklyn Brewery.
Wednesday (Nov. 28), 6 p.m. @ Alley NYC, 500 7th Ave, 17th Fl.

NYU Founders Showcase
Three startups from the NYU-Poly incubators and three student startups will pitch. Judges include Peter Flint (general partner, Polaris Ventures) and Jorge Torres (VP, Silas Capital).
Wednesday (Nov. 28), 6 p.m. @ Varick Street Incubator , 137 Varick Street , 2nd Fl.

Ad Age & Food Network Present: Brand Hacks
Hacking the food category. Six finalists pitch their concepts and the grand prize winner is revealed.
Wednesday (Nov. 28), 6 p.m. @ The Darby, 244 W 14th Street

Dwolla + Derby Jackpot Party!
Bet on horses. Booze on alcohol.
Wednesday (Nov. 28), 7 p.m. @ Tavern on Third, 380 3rd Avenue

Is Curation an Art or a Science?
A discussion with Techmeme's Gabe Rivera.
Wednesday (Nov. 28), 7 p.m. @ Outbrain HQ, 39 W. 13th Street, 3rd Fl.

MITEF: Investing in Aerospace Entrepreneurship: Air Traffic Management, Unmanned Systems
Stuart A. Auerbach (Ampersand Capital Partners), Mark Cherry (Aurora Flight Sciences), Courtney Graham (NASA), Adam Harris (SpaceX), Don Thoma (Aireon) and Laurence Vigeant-Langlois (Sikorsky Innovations).
Thursday (Nov. 29), 5:30 p.m. @ Holland & Knight, 31 W. 52nd Street

Digital Cocktails: The Investment Landscape-Seeds, Angels and Incubators

Panelists include Phin Barnes (First Round Capital), Tony Bacigalupo (New Work City), Gordon Crovitz (Former Publisher, Wall Street Journal), Micah Kotch (NYC Accelerator for a Clean and Renewable Economy) and Jeffrey Silverman (Laconia Ventures).
Thursday (Nov. 29), 6 p.m. @ The Wix Lounge, 10 W. 18th Street

#techdrinkup - NY Tech Holiday Party
A party for NYC's brightest and savviest people in tech. Oh, and folks from Bravo will be in the house, doing an open casting call for the NYC edition of their show Startups. Yup.
Thursday (Nov. 29), 7 p.m. @ Ava Lounge @ Dream Hotel, 210 W. 55th Street.

Mashable Media Summit 2012
With David Carey (president, Hearst Magazines), Alexis Ohanian (cofounder, Reddit), Kay Matadi (head of entertainment & media, Facebook), Jason Seikin (SVP, PBS Interactive), Bonita Stewart (VP partner business solutions, Google), Raman Kia (exec director digital strategy, Condé Nast) and others.
Friday (Nov. 30), 9 a.m. @ The TimesCenter, 242 W. 41st Street

GIVE GOOD Market
Organized by the New York Women Social Entrepreneurs (NYWSE). The goal of the market is to provide a highly-curated event that promotes successful women-owned businesses that produce supremely crafted sustainable fashion and goods this holiday season.
Friday (Nov. 30), 11 a.m. @ Starrett Lehigh Building, 601 W. 26th Street

Goodnik & New Work City Movember / Sandy Relief Fundraiser
Raising money for Movember and Sandy Relief Efforts. This 'Mustache-Sandy' event will include beer & wine, a shaving station, photobooth, faux mustaches for anyone who didn't grow one and maybe even a Burt Reynolds movie.
Friday (Nov. 30), 7 p.m. @ New Work City, 412 Broadway, 2nd Fl.

Sanitation Hackathon NYC
In partnership with the World Bank's Water Practice and ICT units, mobilizing an unprecedented level of collaboration from sanitation & water experts, designers, software developers, engineers, health professionals & students to develop breakthrough innovations for improving access to sanitation for the world's poor.
Friday (Nov. 30), 7 p.m. @ Alley NYC, 500 7th Avenue, 17th Fl.

More events on the horizon...
TEDxSiliconAlley 2012 on Dec. 3 @ Terminal 5
Founders@Fail: The Dos & Donts of Pitching Ad Agencies on Dec. 3 @ General Assembly
December 2012 NY Tech Meetup on Dec. 4 @ NYU Skirball Center For The Performing Arts
Vator Splash NY 2012 on Dec. 5 @ Le Poisson Rouge
Designers + Geeks on Dec. 6 @ General Assembly
Celebrate the Arts with AlleyNYC (Holiday Party!) on Dec. 6 @ AlleyNYC
FashInvest 2012 Capital Conference on Dec. 11 @ Fashion Institute of Technology
Ultra Light Startups: Investor Feedback Forum on Dec. 13 @ Microsoft

Until next week. Stay thirsty social, my friends! ;)

Mr. Taub and Mr. Schonfeld

The Credit Card Killers

With an ever-crowded financial tech market and companies like PayPal and Google Wallet elbowing for industry dominance, the race to kill the credit card is heating up. But among the standouts is Iowa-based mobile payment startup Dwolla, thanks to an innovative pricing structure and a growing New York presence helmed by Michael Schonfeld and Alex Taub. Dwolla has raised money from two New York venture capital firms, Union Square Ventures and Thrive Capital. (Josh Kushner, a Thrive principal, is also part-owner of Observer Media Group.)

Much like PayPal, Dwolla seeks to disrupt the traditional money-wiring business and enable users to send payments with ease. Users set up a Dwolla profile, link it directly to their bank account, and can then instantly send money to friends and businesses through an iPhone or Android app.

The company also processes bank-to-bank transactions, eradicating the need for slow and costly credit card processing. “We’re building a human network based on how we think the future of payments will work,” CEO Ben Milne told Business Insider. “The current model needs to be blown up.”

PayPal, Dwolla’s main competitor, is far more established and is a trusted brand name in online payments, but its fee structure makes it expensive to use. Unlike PayPal, Dwolla doesn’t take a percentage of each transaction, instead charging a 25 cent fee for any payment over $10 (under $10 is free), making it much cheaper for businesses and consumers.

“PayPal is a pioneer, but it can only innovate so much on the backs of these 40- or 50-year-old networks that they’re using,” Mr. Milne told The Observer. “Dwolla is a new conduit to move money in a better way that anyone can use.”

Next: Mike Karnjanaprakorn, Skillshare: The Principal of New York

Back to the beginning

(Illustration: Robert Grossman)

Jack Dorsey, cofounder of Twitter and Square, recently tried to disabuse the tech industry of its infatuation with the word ‘disruption.’ “We don’t want ‘disruption,’ where we just move things around. We want a direction. We want a purpose,” he said on stage at TechCrunch Disrupt, humbly suggesting the biannual conference change its name. But it’s more than just semantics. The tech sector’s claim to produce world-changing products and services often gets drowned out in a chorus of me-too companies solving problems no one ever complained about. The umpteenth nightlife-recommendations tool or empty real-time dating app can obscure the whirr of a nascent robotics sector in Manhattan or a futuristic, even revolutionary, experiment in manufacturing in Queens.

However, there are insurgents in our midst, quietly pushing the city closer to Mayor Bloomberg’s goal of "reclaiming our title as the world capital of technological innovation." To identify those mindful mutineers, we tried to look beyond established leaders (see: Wilson, Fred) to the next class of innovators, who are forcing corporations to come to terms with the mobile revolution or shepherding startups toward making money without selling out. We found investors, developers, educators and agitators. We identified pioneering companies that set off the self-education craze (you’re welcome, Peter Thiel). We spotted a trio of provocateurs in Long Island City and an open-source radical on Roosevelt Island. Looking at this constellation of entrepreneurs, you can start to see the outline of New York’s tech future taking shape.

Valery Komissarova, Grishin Robotics: Rallying the Robots

Phineas Barnes, First Round Capital: the Bottom-Up Investor

Marleen Vogelaar, Shapeways: the Manufacturing Maven 

Anil Dash, Activate and ThinkUp: Amiable Agitator

Alex Taub and Michael Schonfeld, Dwolla: The Credit Card Killers

Mike Karnjanaprakorn, Skillshare: The Principal of New York

Rick Webb, Tumblr: The Undercover Ad Man

Deborah Estrin, CornellNYC Tech: the Entrepreneurial Egghead

Ryder Ripps, Jonathan Vingiano and Jules LaPlace, OKFocus: The Merry Pranksters

Daniel Loeb, Third Point LLC: the Poison Pen

This story appeared on the cover of the November 14, 2012 issue of The New York Observer. 

Mr. Bloomberg. (Twitter)

Time Warner Still Sucks On Friday, Mayor Bloomberg made a big move toward ing promise to expand broadband in New York. He launched ConnectNYC, a contest for small businesses that will award free fiber cable wiring (overall value of up to $12 million) to 240 local businesses across the five boroughs over the next two years. But will it make slow cashiers go faster?

All Your Dwollas Belong To Us Dwolla, the way to pay people via smartphone, just rolled out a cool feature called MassPay. It allows you to pay up to 2,000 people at once, which is great for business owners or degenerate gamblers who have a lot of friends. Payments under 10 dollars are free, while anything higher than that requires a small fee of 25 cents per transaction. Parking Panda, VHX and Major League Gaming have all pledged to start using the service immediately.

Finna FinTech Startup Weekend is teaming up with the FinTech Innovation Lab and the NYC FinTech Startups meetup to put on the first ever FinTech Startup Weekend. It's set to take place on November 2 to 4 at Alley NYC. Throughout the weekend, there will be mentors, including VCs, lawyers and designers, stopping by to give teams advice on what they're doing.

Nick Gavronsky, an OpenFin employee who helps run Startup Weekend with Frank Denbow, spoke to Betabeat and said that he was surprised by the response the event is getting. "We've noticed over the last year or so that FinTech is growing and there's a need for engagement and bringing that community together--as well as around enterprise in general," Mr. Gavronsky said.

FinTech weekend, he said, is "not really like a hackathon, it’s more for first-time people” who want to start building something.

Costumes for a Cause! WeWork is organizing a Halloween party this coming Monday, October 29th benefiting Charity: Water that cofounder Matt Shampine promises will be a "crazy" good time, including "a lot of surprises and five hours of open bar." Better yet, you can feel good while throwing them back: WeWork will be matching everyone's donations to the event. WeWork generously offered Betabeat readers a 15 percent discount off the ticket price, which starts at a $35 donation. Just enter the discount code "betabeat" when you RSVP. While you figure out your binders of women vs. bayonets costume choice, here's a video WeWork put together to get you in the party mood.

Sexy Canadians Songza, the music streaming app that has a playlist for every mood, just reached 1 million users in Canada. To celebrate, we're going to listen to the "cold" playlist. The Songza team used its data and found that Canadians and Americans both chose "Mellow" more than any other mood. Americans' next most popular category was "Happy," while Canadians' second choice was "Sexual." The sexual playlist only works correctly if you're sleeping with Canada's finest export, Ryan Gosling.

Group Talk IRL Group messaging service GroupMe just launched a new service called Experiences. It lets you meet up and plan adventures with your groups and even helps you split the bill. The first round of experiences include a brunch at one of Todd English's restaurant and a zombie survival practice on Halloween. Sounds spooky enough for us.

Chatroulette With a Purpose Onswipe held its hackathon this weekend, and the overall winner created something really awesome. BlahBlahLearning is a language learning platform that works over video chat. A pair of speakers who are each learning the other’s native tongue are given five minutes to speak in one language, then five minutes to speak in the other. Take some notes, Airtime, these guys have the right idea.

Man Starts Blog internet gadfly Rex Sorgatz has just launched a personal project called Viewsource. He's posting one YouTube video a day and sharing his thoughts about it. The site has a really pretty layout, and Mr. Sorgatz's commentary is pretty spot-on. This one about Michael Richards is a pretty good read.

You Owe Us One Foursquare is hiring a PR director. If you get this job and you first found out about it through Betabeat, then you have to give us exclusives for the entirety of your career. It's only fair.

Publicidad Jun Group, the opt-in video advertising platform, has announced that it has new capabilities to specifically target the much-coveted Hispanic audience on the web. Jun Group says that it can now prescreen users to determine if they’re Hispanic and/or native Spanish speakers. In total, the company provides ads to 10 million Hispanic or Spanish-speaking users.

Advertise More, Save the World Pontiflex, another advertising platform, just released a new tool called AdLeads that helps nonprofits advertise themselves to prospective donors. The best part about the service is that organizations only have to pay when a person actually signs up to hear from them. They never waste money on wasted clicks or impressions.

College Admissions Suck Applying to college is the worst process in the world, but luckily things just got a bit easier thanks to Unigo. The site gives a free 15-minute private consultation to set you up with a plan, and then users can subscribe to Unigo's online college counseling services. If your child's guidance counselor is a total idiot, then this looks like a good option for you.

Mr. Davis (Photo: twitter.com)

Kohort, a social network for groups, launched last month jam-packed with friends of founder and former venture capitalist Mark Peter Davis.

But less than a month after launch, Mr. Davis took to the company's blog to announce that they have decided to "decided to run Kohort with a smaller team, a leaner approach."

AllThingsD's Peter Kafka expects the company to lay off almost all of its 15 employees. Dwolla founder Ben Milne announced yesterday via Twitter that Kohort builder Shane Reisner has already started working at Dwolla.

Users are certainly feeling the pain too. This week, a user in the New York Venture Community group (the group was in fact founded by Mr. Davis), University of Washington professor Brian Rowe posted an announcement titled "Has Kohort Died":

I know that "fail fast" is a mantra these days, but I always figured it was followed by "fix quickly". Seems like the site's been broken for a while and not much in the way of communication indicating when these things will be fixed. Not sure how you keep customers this way.

As a comparison github is really good about communicating when things go wrong and keeping everyone abreast of the status.

Mr. Davis quickly responded in a post called "Kohort is Alive & Kicking":

In response to the prior message, we're aware of the few bugs on the site & we'll be working to address them as we continue to push forward with new features.

More to come.

- Team Kohort

Before launch, the company netted $3 million from a investors like IA Ventures, RRE Ventures, ff Venture Capital, David Tisch and David Cohen, so they probably have a bit of cash to burn out. Once the user base starts checking the site for signs of life, however, it's hard not to hear the pivot sirens blaring in the distance.