Bribery, Corruption and Fictitious Capital

At its peak, InfoSpace was the Northwest's biggest Internet business, worth more than $31 billion. Jain, a man obsessed with being more successful than Bill Gates, was himself worth $8 billion. He bought a palatial waterfront home in Medina down the street from his idol and another nearby on Mercer Island, along with two yachts and a piece of the Seattle SuperSonics.

Naveen Jain grew up in a culture mired in bribery and corruption, yet in a religion that deplores dishonesty.

But memories are short, it seems. After leaving InfoSpace Jain started a new company, Intelius, across the street from his old offices in Bellevue, Washington. The company sells background information on people - they describe themselves as an “information commerce company.” They’ve grown rapidly and now claim that over four million people have purchased products from them. Revenue has grown from $18.1 million in 2004 to $88.5 million in 2007. In their most recent fiscal quarter, ending March 31, 2008 the company had $31.8 million in revenue, a nearly $130 million run rate. They are also very profitable, with $22.5 million in EBITDA in 2007.

It’s no surprise that the company’s revenue growth and profitability have led them to pursue an IPO. Well known investment banks Deutsche Bank and UBS are underwriting the deal, which was first filed with the SEC on January 10. The most recent version of their registration statement, filed on May 19, is here.

Given Jain’s history, you’d think he’d go out of his way to be squeaky clean at his most recent startup, particularly as the company is going public and under significant scrutiny. But that may not be the case.

Well.. the culture and bribery talk is all crap! They deplore Naveen while they seem to think that everything with stock market is legal. in 1920 the whole of the stock market business was illegal cos it creates fictitious capital. -- RK

http://libcom.org/library/fictitious-capital-loren-goldner

Free Software Movement - Dr. Edgar Villanueva, Peru

There's a letter circulating, purportedly from Peruvian Congressman David Villanueva Nuñez to Microsoft Peru, which cuts the heart out of Redmond's chief 'panic points' to chill those considering open-source migration.

Apparently, the Peruvian government is considering a bill mandating open-source software for all public bureaux. From the congressman's letter, we gather that MS had circulated a FUD communiqué calculated to frighten world + dog with images of collapsing domestic software markets, spiraling costs and systems migration nightmares. Villanueva Nuñez slices and dices with great skill to reveal the internal inconsistencies, unsupportable claims and irrational conclusions which the MS flacks trade in.

The letter provides the most thoughtful and thorough rebuttal we've ever seen to Microsoft's standard open-source terror boilerplate.

Culture Speeds Up Human Evolution

Homo sapiens sapiens has spread across the globe and increased vastly in numbers over the past 50,000 years or so—from an estimated five million in 9000 B.C. to roughly 6.5 billion today. More people means more opportunity for mutations to creep into the basic human genome and new research confirms that in the past 10,000 years a host of changes to everything from digestion to bones has been taking place.

"We found very many human genes undergoing selection," says anthropologist Gregory Cochran of the University of Utah, a member of the team that analyzed the 3.9 million genes showing the most variation. "Most are very recent, so much so that the rate of human evolution over the past few thousand years is far greater than it has been over the past few million years."

"We believe that this can be explained by an increase in the strength of selection as people became agriculturalists—a major ecological change—and a vast increase in the number of favorable mutations as agriculture led to increased population size," he adds.

Roughly 10,000 years ago, humanity made the transition from living off the land to actively raising crops and domesticated animals. Because this concentrated populations, diseases such as malaria, smallpox and tuberculosis, among others, became more virulent. At the same time, the new agriculturally based diet offered its own challenges—including iron deficiency from lack of meat, cavities and, ultimately, shorter stature due to poor nutrition, says anthropologist John Hawks of the University of Wisconsin–Madison, another team member.

"Their bodies and teeth shrank. Their brains shrank, too," he adds. "But they started to get new alleles [alternative gene forms] that helped them digest the food more efficiently. New protective alleles allowed a fraction of people to survive the dread illnesses better."