<![CDATA[Gawker: valleywag, valleywag, scott jones, ;]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, valleywag, scott jones, ;]]> http://gawker.com/tag/valleywag/scottjones/ http://gawker.com/tag/valleywag/scottjones/ <![CDATA[ChaCha, the lonely search engine, waits for a text message]]> ChachaHoosier-powered search engine ChaCha has unveiled a feature developed with the help of $2 million in Indiana state funds: mobile-phone-based searches. Scott Jones, the serial entrepreneur behind ChaCha, would like everyone to believe that this is a whole new category of search. Actually, it's something Google has been doing for years. (Try texting a search query to 46645 on your phone.) ChaCha's innovation? Instead of getting an answer back in seconds from a Google server, you have to wait minutes for a human "guide" to respond.

Jones makes this argument for the service's proposition:

They can either make you work at search, or we can give you the answer. Which do you want as you're driving down the highway?
Since I'm already cruising down the highway, I probably need directions right away, not minutes later. By the time a ChaCha guide responds, I may have missed my exit. And I don't particularly want to pay 99 cents a search (the eventual price Jones proposes; for the time being, the service is free). The ubiquitous GPS devices in cars do this pretty well. As for things like movie showtimes, weather, directory assistance — searches that ChaCha and the rest of the industry identify as the most likely to be made on a phone— well, that doesn't take much work. I already have free phone numbers or apps for those requests that provide an instant response.

This is the problem with rich entrepreneurs: They're out of touch with their customers. 99 cents may be nothing to Jones, a millionaire with a Midwestern mansion. But for those of us watching our pennies, why would we bother? ChaCha's new mobile service targets the idle rich: People, like Jones, who are used to making other people perform menial tasks.

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<![CDATA[Boldly searching where no man has searched before]]>


ChaCha, the Hoosier-powered search engine which uses conscripted human guides who work for former ChaCha board members at a public university, has struggled to distinguish itself as anything more than an object of prank callers. So how does the little search engine from Indiana plan to boost user numbers? By boldly going where no man has gone before! ChaCha is courting the Trekkie set by using some of the $10 million it got in a recent financing round to fund the production of the fan-produced Star Trek: New Voyages.

The startup has released a Star Trek-themed search toolbar for Web browsers. Every search made through the toolbar means a donation to the production of Star Trek: New Voyages. The fan series is better-produced than the original series it honors, but it cranks out episodes at a glacial pace: three episodes in as many years.

We doubt there are enough hardcore Star Trek fans to make a real difference in ChaCha's numbers. An easier explanation? Scott Jones, ChaCha's CEO, has to be a Trekkie himself to be pursuing this. I hope the citizens of Indiana are happy knowing that their tax money is funding Jones's geek obsessions.

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<![CDATA[Entrepreneur backs politician, politician backs his startups]]> Scott Jones, serial entrepreneur, has received an additional $8 million in funding from Mort Meyerson, formerly of Perot Systems and EDS, for his startup ChaCha. You'd think with such wealthy backers, Jones wouldn't have to tap the public till. But no: ChaCha was recently granted $2 million from Indiana's 21st Century Technology Fund administered by the Indiana Economic Development Corporation to build new, innovative features. What are these innovations that will debut next year, and how did the already well-funded startup receive this state-funded aid?

The services that ChaCha is adding to its search engine is search via text and voice over telephone devices. Hardly a novel concept. It's essentially 411 with operators searching Goo — sorry, ChaCha for results. So why did the cash-strapped state provide the millionaire with a couple more million?

It certainly doesn't hurt that close friend Governor Mitch Daniels, whom Jones has helped raise a million dollars for his reelection bid, is the Chairman of the Board for the IEDC.

In fact, Scott Jones scored twice. His other company, Precise Path Robotics, which builds robotic golf-course mowers, received just less than $2 million as well. For what purpose? To improve the existing robot's precision "[u]sing an innovative positioning system that surpasses GPS." (No word on whether Precise Path is launching satellites, but I suspect its innovative positioning system is as sophisticated as operators providing search results over the telephone.)

Fortunately for Jones, there are few competitors in Indiana for technology-related funds, and he has all the right friends. Which is, as everyone knows, always the best business plan, whether you're in Indiana or Silicon Valley.

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<![CDATA[Hoosier daddy? Indiana reporter trades university beat for university job]]> When we first began to cover the many close relationships between flauntrepreneur Scott Jones's ChaCha search engine and Indiana University, the Indiana Herald-Times was one of the few local newspapers to closely question the relationship. Steve Hinnefeld of the Herald-Times was even following Valleywag's coverage, and came to similar conclusions: Although nothing legally wrong occurred, IU officials' failure to disclose their ChaCha ties was suspicious. However, since then the newspaper has provided the issue little attention. Why?

We've learned that Hinnefeld, referred to as the "IU watchdog" for the Herald-Times, left the newspaper for a media relations position at ... Indiana University. Surprise, surprise. It's reassuring to know that Nick Denton isn't alone in hiring his critics. When Owen Thomas tires of me writing about ChaCha, I look forward to a comfy desk job in lovely Bloomington, Indiana.

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<![CDATA[Indiana University and ChaCha's Scott Jones have same idea]]> Remember ChaCha, the "human-powered" search engine based in Indiana with curiously deep — and poorly disclosed — ties to local power brokers? Now, Indiana University contends its decision to select human-assisted search engine ChaCha had nothing to do with those ties. University president and former ChaCha board member, Michael McRobbie, had nothing to do with it. Neither did newly appointed university trustee and Chacha investor and advisor, Jack Gill. The decision was made solely by the university's CTO Brad Wheeler. Oh, but never mind that Wheeler was appointed by McRobbie, his predecessor in the CTO post. A new Fortune profile of Chacha CEO and founder Scott Jones makes this telling of events even more suspiciously convenient.

The Fortune piece includes the tale of how ChaCha came to be:

The trigger to launch ChaCha came when Jones was preparing a speech for the National Academy of Sciences at Stanford in 2005. To fill in some technical gaps in his talk, he phoned several venture capitalists and technology experts for help in tracking down information. Each pointed him to a specific website. "I thought, 'Holy s—-! I can actually do it now! If I recruit an army of experts, I could actually do what I was considering doing 20 years ago.'"
Holy shit, indeed. Brad Wheeler recounts a similar tale in proclaiming ChaCha superior to Google and Indiana University library services:
Wheeler said the potential for the partnership struck him when, writing a speech, he struggled to track down a vaguely remembered quote. He was impressed when IU's Ask a Librarian service found the quote, from former Harvard President James Bryant Conant, within hours. But a ChaCha guide got it in two minutes.

"That's where my head about exploded," he said. "I realized this is our core problem for the 21st century."

My heads exploding too. What is it about pre-speech gaps in information that lead to epiphanies touting ChaCha? After all, Googling the same vaguely remembered quote leads to a result instantly instead of taking two minutes. Or is this merely the pat creation myth that Jones thinks best sells his company?

Jones is a millionaire inventor. And I suspect he's equally good at inventing the story behind his company. He almost has me believing that if there were more public speakers in the world, maybe ChaCha would actually have some users. That is, besides those students forced to use ChaCha because their university's president is buddies with Jones.

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<![CDATA[ChaCha searches for political clout]]> We'd heard of state birds, but official state websites? Yes. Mitch Daniels, Indiana's governor, helped select human-powered search engine ChaCha as the state's official website. He also played a role in conscripting Indiana University staff as unpaid "guides" for ChaCha. Now it's time for Scott Jones, CEO and founder of ChaCha, his investors, and friends to return the favor. Tomorrow, Jones will be hosting a fundraiser at his megamansion, inviting business leaders both Midwestern and bicoastal with the hope of raising a million dollars in a single day.


Jones has already cut his own $100,000 check for Daniels's campaign and says $750,000 of the million-dollar goal is already committed. Jack Gill, an early ChaCha investor appointed by Governor Daniels as an Indiana University trustee, counts among the contributors with his own substantial donation. Likewise, John McIlwraith, managing director of Cincinnati-based venture capital firm Blue Chip Venture, also a ChaCha investor, is among Daniels's supporters.

McIlwraith, on his support for Daniels:

As far as governors who seem to get it when it comes to creating the right environment for high-growth tech companies, he's high on the list. If Indiana is successful, it will give us more investment opportunities. It feeds on itself.
Indeed. While Daniels may bend over backwards to create the right environment for high-growth tech companies, we're not sure how a small circle of of also-ran tech companies with high-profile sweetheart deals counts as a positive result.

The only real question, though, is whether Daniels's ties to ChaCha count as a political benefit. Indiana Democrats hope to portray Mitch Daniels as out of touch with the average Hoosier and in the pocket of fat-cat businessmen. Shouldn't be too difficult, since we suspect the average Hoosier uses Google.

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<![CDATA[ChaCha supporters circle the wagons]]> Boosterism is a proud middle-American tradition, deftly parodied by Garrison Keillor. But even a fabulist like Keillor would be hard-pressed to come up with townspeople as self-satisfied and uncritical as the boosters of Bloomington, Indiana, who have stood relentlessly behind local search startup ChaCha. Despite the questions Valleywag and others have raised about a deal between ChaCha and Indiana University, whose president, Michael McRobbie, is a former ChaCha board member, the townfolk have stood steadfastly behind their local tech hero. Take, for example, the reaction to a story in the Indiana Herald-Times calling for "aggressive disclosure" (subscription required) regarding the deal. The conclusion was similar to ours and seemed obvious — but not obvious to at least one local booster.


The Herald-Times wrote:

The lesson here is not that there was anything legally or ethically wrong, at least until such evidence surfaces, which it has not. Rather, it is one of recognition of situations and of McRobbie's changed role... Aggressive disclosure that spelled out any and all connections — even ones that seemed coincidental or even accidental — could have gone a long way to blunt the thrusts of critics.
But that seemingly innocuous view, hardly holding McRobbie's feet to the fire, has its own critics. Lee Marchant, a Bloomington resident, has written a letter to the editors chastising the local paper and Valleywag for daring to ask questions:
To the editor:

Your Aug. 12 editorial, "Aggressive disclosure would clear air about IU dealings," left me wondering, what's your point?

It was unfortunate that Indiana media gave credence to the innuendo and inaccurate statements about the IU-ChaCha alliance that were anonymously posted in a self-described Silicon Valley "tech-gossip rag." The fact that no one by name stood behind these statements should have been a tip-off as to their veracity.

In response, McRobbie immediately disclosed all details of his involvement with ChaCha, and they were publicly reported. He resigned from the ChaCha board before taking over as IU president. He gained nothing from ChaCha. The only potential beneficiaries in this deal are IU and the people of Indiana if ChaCha catches on and becomes another successful Indiana business.

It sure looks as if someone in California is not happy that IU is getting together with Scott A. Jones, one of the tech industry's most successful innovators, to develop what could well be a much better Internet search engine than anything up to now. It should be welcomed by all who want Indiana to prosper. If someone in California doesn't like it, and whines about it anonymously on the Internet, we should ignore it.

-LEE MARCHANT, Bloomington

Just a few errors here:
  • My Valleywag posts were not anonymous, and I stand behind them.
  • I am not in California — if I'm in California, then Bloomington, Indiana is downtown Palo Alto. Moreover, half of my family lives in Indiana!
  • The only "inaccurate statements" reported here were made by Indiana University vice president Brad Wheeler, to the press, and by ChaCha in its SEC filings.
  • McRobbie did not immediately disclose his involvement with ChaCha. He allowed Wheeler to speak, incorrectly, on his behalf. A ChaCha PR flack further muddled matters in a statement left in a comment on Valleywag. Valleywag and others questioned those statements, and finally McRobbie chose a consistent story (subscription required), though one that differed from previous tales told. Plenty of questions about this deal remain.
  • The information ChaCha publicly disclosed in an SEC filing was false, a fact conceded by the company when it stated its intention to refile the document.
  • It's absurd to suggest McRobbie gained nothing from ChaCha.
  • And even more absurd to claim the primary beneficiary of this deal is not ChaCha and its shareholders.

Unsurprisingly, like ChaCha, Lee Marchant has benefited from close ties to Indiana University. Marchant received an oversized check for $25,000 in March from Indiana University for his "community lobbying effort" to keep a local military base, also tied to the university, open.

No wonder Mr. Marchant would prefer to ignore our coverage of goings-on in Bloomington. It doesn't fit with a booster's fantasy world view, where every deal is above board, and the ethics of every local notable are above average.

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<![CDATA[A high-tech CEO's Midwestern megamanse]]> Scott Jones, CEO of search engine ChaCha, has built a high-tech wonderland of a mansion in central Indiana to rival any abode in Silicon Valley. The 27,000 sq. ft. English country manor, selected by HGTV as the No. 1 home in America, melds old-world charm with a hardcore nerd's wet dreams. Amenities include the obligatory, and thoroughly geeky, automated lighting, air conditioning, and media systems controlled by touchscreen and a workstation sporting eight large LCDs (one of twenty-six computers in the home). Jones's playthings, however, don't stop with the typical high technology.

The house also sports a 2,700-gallon salt water aquarium, a home theater that trumps commercial movie venues, a Web-enabled wine cellar that keeps itself stocked, automated dog-food dispensers, a mahogany slide that took a year and a half to build, an indoor treehouse, a secret passage triggered by a Harry Potter book, and a waterfall shower in the master suite that gushes 300 gallons per minute. Apple board member and noted environmentalist Al Gore would not approve.

Steve Wozniak's 7,100 sq. ft. Los Gatos home, by contrast, is a quaint bungalow at best. Sure, it features "a children's discovery complex, an arcade, a cave (designed to look real by experts from the California Academy of Sciences ) and a pet hotel." But those hardly compare.

Scott Jones, with this house, has launched himself firmly into Michael Jackson Neverland territory. How does the CEO of an also-ran search engine afford such a spread? I'm sorry, did I fail to mention that Jones's first company, Boston Technology, invented voicemail, and that he runs six other companies in addition to ChaCha, including Gracenote, the music directory used by many services, including Apple's iTunes?

All of which raises the question: Why, with all his wealth, does Jones need Indiana University president Michael McRobbie, a former ChaCha board member, to oversee a deal in which IU librarians and IT staff are forced to volunteer their time on ChaCha?

Watch Indiana's RTV6's video tour or view the slide show.

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<![CDATA[Controversy keeps growing in IU-ChaCha deal]]> The Herald-Times of Bloomington, Indiana has followed up (subscription required) on our previous story questioning the Indiana University-ChaCha deal. The local paper's charitable conclusion: Neither side lied, but both independently made contradictory "inadvertent errors." As did the newspaper, in reporting on a new development — without pointing out the glaringly obvious ChaCha link. Newly appointed Indiana University trustee Jack Gill is not a full-time resident of Indiana, a requirement for trustees appointed by the Governor to the University — but he's also a venture capitalist and major investor in ChaCha (PDF).


As of May 31, Gill was listed, like university president Michael McRobbie, on ChaCha's board of directors (PDF). His appointment as trustee came on the same day IU and ChaCha announced their partnership. But you wouldn't know it from reading the Herald-Times — even though Steve Hinnefield, the same reporter who followed up on our story wrote about Gill's residency troubles.

Hinnefield writes, "Gill is getting positive response for the skills and experience he brings to the board of trustees." He fails to note the "positive response" is coming from ChaCha founder and CEO Scott Jones, whom Hinnefield merely identifies as "an IU alumnus and Indiana technology business leader." Here's what Jones has to say about ChaCha board member Gill:

I think it really helps our board of trustees to have someone of that stature, and someone that progressive. He's a visionary thinker about education in general.
Not only does Hinnefield fail to mention Jones's role in the drama, he never mentions Gill's role with ChaCha in a supposedly "complete" biography of the questionable appointee.

The reporter does end the story by giving Gill space to endorse new IU president and extremely recently former ChaCha Director Michael McRobbie. Gill claims he didn't even want to be a trustee; it was the attraction of working with McRobbie (again) that swayed him:

I think he's the right man for the right job at the right time. I just think he's a very insightful, decisive, dynamic yet sensitive leader.
Right. Of course, he's "the right man for the right job at the right time." Right now, McRobbie needs trustees who won't question the university's dealings with ChaCha. And Gill would be the last person to do that.
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