After flying a drone “a few feet away” from a family home in Seattle, one man claims he was doing research well within his legal rights. The camera-clad drone, however, spiked justified concerns about the privacy of the family who lives there.

A woman in Seattle explained to the Capitol Hill Seattle Blog (CHS) that she heard a buzzing noise outside her home that she assumed was a weed-whacker. Instead, it turned out to be a flying drone with an attached camera, hovering near her third-story window. She spotted a man on the sidewalk outside of the house controlling the drone. Her husband did what any normal person would do: he asked the man to cut it out, but he refused saying it was within the law to fly the drone and that he was conducting research. The couple subsequently called the police, who decided not to come once as the man decided to leave the area.

“We are extremely concerned, as he could very easily be a criminal who plans to break into our house or a peeping-tom,” she said, according to CHS.

The Atlantic points out that a 1946 Supreme Court ruling considers all airspace to be a public highway. But airspace or not, I assume you can’t take pictures of someone’s home through their windows without permission. If someone had a very long stick with a camera at the end and held it over your fence, you’d likely not consider that legal either. It’s yet another example of the dire situation we’re in trying to keep legislation up with technology.

Commenters on the CHS blog post speculate that the drone could have been used by a local paper’s reporters to demonstrate how “useless” they are. Others suggest it could have just been a weirdo.

Drone image via Don McCullough/Flickr

The 5 Point Cafe is a “sometimes seedy, maybe notorious place” that has a reputation to uphold. It is a drinking establishment where people go to be free from judgment and scrutiny, and owner Dave Meinert does not want his patrons unknowingly molested by Google. Glasses.

“I’m a thought leader,” Meinert said on a local Seattle radio show. “People want to go to [5 Point] and be not known and definitely don’t want to be secretly filmed or videotaped and immediately put on the Internet.”

Following the principle of “What happens in Vegas, stays in Vegas,” Meinert decided to make his bar a Google Glass-free zone. The bar is located in one of Seattle’s tech hubs, and while any and all tech geeks, startup kids and Amazon employees are welcome at the 5 Point, they must abstain from showing off their Google Glasses. This could ultimately benefit their social and sex life, as the bar’s Facebook page describes them as “the new fashion accessory for the fanny pack and never-removed-Bluetooth-headset wearing set.”

Google Glass does many of the same things you do with your smartphone, such as snapping pictures, recording video, displaying augmented reality user interfaces (such as driving directions), and communicating with others. Also, the device can connect with your smartphone’s (iPhone or Android) cellular data network via Bluetooth, so you can stay connected anywhere.

Google Glass only recently became available to an elite group of early adopters, and those lucky enough to get a pair are eager to show them off. However, the “ugly” factor is not to be disregarded, and Google is reportedly in talks with stylish eyewear brand Warby Parker to bring them from geek to chic … or maybe just to geek chic. Regardless of how they look, they won’t be allowed in the 5 Point. Let’s see how many other bars follow suit.

Photoshop by Tom Cheredar/VentureBeat, based on a photo by Chris Chabot.

Who knew, for example, that Sydney, Australia, is global capital of “data-driven startups?” Or that the top nine startups of the last 15 years have generated nearly a trillion dollars in value, helped along by the likes of Facebook, Google, and Amazon? And while everyone would likely have guessed that Silicon Valley is the top hub of entrepreneurship on the planet, with Tel Aviv high on the list (if not exactly second), Los Angeles coming in third is a bit of a surprise.

The conclusions are based on data from startups that use the Startup Compass, a tool that helps founders make better  decisions through data. Startup Genome analyzed factors such as startup incidence, funding availability, business performance, founder mindset, technology trends, support networks, and talent availability to find the hottest locations to start and grow a company.

Here are the top 20 technology hubs, as defined by the Startup Genome:

1. Silicon Valley
2. Tel Aviv
3. Los Angeles
4. Seattle
5. New York City
6. Boston
7. London
8. Toronto
9. Vancouver
10. Chicago
11. Paris
12. Sydney
13. Sao Paulo
14. Moscow
15. Berlin
16. Waterloo (Canada)
17. Singapore
18. Melbourne
19. Bangalore
20. Santiago

More valuable than the ranking, Startup Genome provided the ranking data for each technology hub on eight key criteria. Using these criteria you can see, for example, that while Vancouver ranks 14th in the support index, probably due to being a relatively young ecosystem, it ranks second in the mindset index (indicating that it has plenty of eager and driving founders) and fourth in the talent index.

Tel Aviv, on the other hand, ranks second in startup output and equivalent to Silicon Valley in funding, but only 12th in performance, perhaps due to Israeli startups’ sometimes-wondered-at predilection for building smaller companies, outfits that don’t turn into enormous enterprises.

The report is rich in data and many more details — you can get your own copy right here.

Image credits: Startup Genome

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Epic Games, based in Cary, N.C., needs the new studio because it is accelerating development of its Unreal Engine 4 technology, which could help spawn a whole new generation of games with outstanding physics and 3D graphics effects.

The Unreal Engine 4 technology could be the foundation for games that run on future high-end personal computers or next-generation consoles, such as those that Microsoft and Sony are expected to launch in the coming years. The previous generation Unreal Engine 3 came out six years ago for the PC, Xbox 360, and PlayStation 3. It resulted in a wave of beautiful games across the industry, such as Epic’s own Gears of War series.

Epic, which is one of the oldest and biggest independent game developers, creates its own games but also licenses the engine to all comers. It can thus extend its influence throughout the entire video game industry when it comes to high-quality 3D graphics and physics.

The Seattle region is a good location because it is a hub for game companies, including Microsoft’s Xbox division, Nintendo of America, and Electronic Arts’ PopCap Games. Epic plans to hire programmers and support staff for its engineering group.

“The proximity to key partners, the density of world-class talent, and all the factors that make Seattle an attractive place to live convinced us that it is the perfect locale for Epic’s West Coast operation,” said Epic Games president Michael Capps. “We are looking to hire even more of the best engineers around to contribute to Unreal Engine 4, which we believe is set to change the way we all make games.”

Games based on the Unreal Engine are expected to debut soon. Epic began showing it off this spring. The company has licensed its earlier Unreal Engine 3 for use in more than 300 games since 2006. Epic Games, which is partly owned by China’s Tencent, has more than 500 employees. It was founded in 1991.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Museum of Flight chief executive Doug King opened the event with a few words about how excited he was to be working with Planetary Resources and to have the project take place in Seattle: “Maybe we should start thinking of this as the Silicon Valley of space.”

The first speaker was Planetary Resources c0-founder and co-chairman Peter Diamandis, who is best known as the chief executive of the X Prize Foundation. “Since my early teenage years I wanted to be an asteroid miner,” Diamandis told the audience. “If you think about what has driven human exploration, it has really been the search for resources.”

Diamandis cited the various factors that have come together to make now the right time for asteroid mining. Today’s technology allows small companies to create low-cost and powerful spacecraft, and people like Jeff Bezos, Paul Allen, and Elon Musk have shown how private teams can enter what was once the realm of governments. There is a new generation of billionaires now investing in space, such as Richard Branson, and now is when we need these people the most because resources are becoming scarce. Finally, NASA is partnering with private companies on its goal of extending humans’ presence in space.

“When I look at what Shell has done, they have created robotic cities on the bottom of the ocean. It’s extraordinary what humanity what can now do. For me, it makes going to asteroids look easy,” said Diamandis.

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Eric Anderson, founder of Space Adventures, took the stage to talk about the mining plan in more technical detail. How valuable is an asteroid? What is the plan for actually mining these near-earth asteroids? These asteroids “have existed for literally billions of years and have some of the most valuable materials we will need for the future of space and for the future of earth,” said Anderson.

The company wants to access two types of resources: water and platinum metals.

Water and its constituent elements, hydrogen and oxygen, are “the best rocket fuel out there.” They would be able to supply NASA exploration missions, fuel private exploration missions, boost satellites, fuel space stations, support private colonization efforts, and fuel tugs that could be used to clean up space debris.

The Arkyd 101 telescope in person (top) and in mocked-up artwork from Planetary Resources (bottom).

Platinum metals on Earth are found in spots where asteroids have struck our planet. While the water will fuel the in-space economy, the metals will be brought back to earth, according to Anderson.

The spacecraft that will make this sci-fi dream a reality is called the Arkyd line, which is being developed in phases, starting with the 100 series. These will act as specialized telescopes to prospect and identify the right asteroids. Later versions will be used to extract the resources.

The second phase of the venture is prospecting, which will involve “swarming” the potential asteroids with telescopes and spacecraft to find the right marks. “There are 8,931 near-Earth asteroids we know of. This represents one percent of the near-Earth asteroids that are larger than 50 meters,” said Anderson.

The third phase is going to be deciding what to do next and exactly how to do it, including working with NASA to decide what the top targets are. “By that time, we’re going to ask, ‘Does NASA need gas stations?’”

Anderson thanked the investors behind the project and closed with a few reassuring words about the potential for a large windfall in the future: “We’re going to create depots and gas stations that open the roadway to the rest of the solar system … we can use these asteroids to grow our prosperity for the future.”

—–

“I’m Chris Lewicki, and I’m an asteroid miner”

Planetary Resources’ president and chief engineer, Chris Lewicki, discussed the technology, the spacecraft, and the people on his team. He gave a few details about the series of custom space telescopes the company will be using to identify resource rich asteroids, starting with the 100 series, which he described as a personal space telescope. The 300 series will be used later in the process for direct targeting.

In one of the event’s most touching moments, Lewicki thanked the people who helped make the project happen. “We’re building a new kind of company, a new kind of spacecraft team,” said Lewicki, who visibly choked up while talking about the staff, investors, and advisers on the project. His eyes welled up as he mentioned all the recent excitement about the company in the press.

—-

Tom Jones came to the podium to introduce the audience to the different types asteroids. Jones, a planetary scientist and former NASA astronaut, is an advisor to Planetary Resources. One asteroid he focused on is the size of Seattle. The company will find the right types of asteroids by looking at the color of their reflected light.

“The ultimate goal is to generate new wealth in space,” said Jones. “Generating that wealth in space can support far more ambitious exploration.”

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A special guest made an appearance over the phone from Texas: Ross Perot Jr., who has an extensive history of flying, in addition to his more well-known business successes. Perot is an investor in Planetary Resources.

“I’m a big believer in private space,” said Perot, who was excited to tell his children and nephews about his involvement with the undertaking. “They said ‘Uncle Ross is pretty cool’ … I was shocked at how quickly the younger generation picked up on it.”

—-

Finally, another investor, Charles Simonyi, touched on the financial angle, including a shout out to cautionary tale Pets.com. Simonyi is Chairman of Intentional Software Corporation. He discussed having looked at the “astronomical numbers” involved with supporting humans in space, and saw that it was the mass of the materials being shipped to space that mattered, not what the material actually was. Water costs the same to ship to space as expensive photographic equipment. Being able to access water in space would change everything.

—-

During a closing question and answer session, Lewicki had a few more details about the Arkyd line, calling it a “Swiss Army knife in terms of what it can do. … I want something that we can communicate with, gather data with.” Engineers are using some commercial technology in the development of the spacecraft, the first versions of which can also be turned into Earth-observing satellites.

“We can’t just build one precious tool that we treat with kid gloves. We need to make something on an assembly line,” said Lewicki.

Eric Anderson said the company wanted to avoid giving out specific timelines for the company, though Diamandis did say they wanted to have small teams moving rapidly, and propulsion with the 200 series will be the focus after the first two years. The prospecting phase, which will come after the 100 series is launched, could take years. Anderson said the company wants to identify the asteroids it will target within the next decade. The first resource the company will focus on is water, which Anderson calls a gateway material: “When there’s water sourced, other resources are essentially free because you can use fuel derived from water.”

The company says it is cash-flow positive, but declined to go into much detail as to where the money is coming from other than saying it does currently have a contract with NASA. It also mentioned — in vague terms — that it has relationships with several companies and has several customers already.

When asked about specifics after the event, a spokesperson would only say that the company isn’t looking for more capital at this time, that it cannot say who or what the largest single investor is, and that the only partner it will name is NASA.

When asked why the company was only coming out of stealth mode now after three years, Anderson said, “We’ve been fortunate to complete our fundraising rounds, we don’t talk about what those numbers are. We are also hiring now. Also, we want to share the passion and start to share the enthusiasm of these audacious goals.”

The company was founded in 2009 by co-founders Eric Anderson and Peter Diamandis. It is based in Bellevue, Wash., and currently has about two dozen engineers on staff. The equipment will be built in the Seattle area, but the spacecraft could launch from a variety of locations using “ride-share” opportunities — hitching a ride on other spacecraft already headed into space.

Facebook is showing off glimpses of its newest facility up north. Located in Seattle, the new space will be home to some of the social network’s engineering talent.

We’re guessing the new office will be ideal for capturing restless Microsofties and Amazonians enamored of the ripsticks-and-Zuck culture Facebook has cultivated over the years.

“Just a couple of years ago, the entire Facebook engineering team was in one building in Palo Alto, California,” Facebook engineer Ari Steinberg wrote today on the company blog. In those halcyon days of legend on University Avenue, Steinberg continues, “Everyone was within a 30 second walk of each other. But in early 2010, we got to a point where we knew we needed to look beyond Silicon Valley to keep building Facebook and ship everything we wanted to ship.”

Calling Seattle “the logical choice” for Facebook’s next big satellite, Steinberg noted that Facebook’s Seattle office now holds close to 100 engineers.

So far, the Seattle team has shipped products and features including Desktop Messenger for Windows, video calling, and other projects shared with the Bay Area team.

“Our new building feels like it represents Facebook as well,” Steinberg concludes.

“Everyone sits out in the open with their team, usually just four or five people. There’s delicious food, snack stations, free laundry, and four months of parental leave. But there are also a couple of things that are uniquely Seattle: Every Wednesday, we eat lunch together at a local restaurant, and in March, we all headed up to Steven’s Pass for a ski trip. Windows wrap around the entire floor, offering panoramic views of the city, Lake Union, the Space Needle, Puget Sound and the Olympic and Cascade Mountains.”

Here’s a sneak peek at the Facebook Seattle offices:

Top image courtesy of Jolie O’Dell

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Big Data and Predictive/Real-time Analytics startups: Are you looking to jumpstart development & accelerate market traction? Sign up for the SAP Startup Focus program to receive technology, support, resources and community to help you develop new applications on SAP HANA, a cutting edge database platform. Get started here, and enter promo code “VB2013″ on the form.

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This week the eyes of the tech world were firmly fixed on Austin, Tex. for South by Southwest Interactive. Partly because of that event, Austin is often mentioned with Silicon Valley and New York City as one of America’s great tech hubs.

Let’s not forget about Seattle. Cost of gas, energy, and real estate (not to mention natural beauty) are just some of the reasons why the Emerald city is not only one of the best places in the country to live, but also one of the most attractive places for startups to bootstrap or for bigger companies to make the hires necessary to scale their operations.

As this infographic demonstrates, average salaries are lower in the Pacific Northwest for positions such as Project Manager, as well as cost per square footage of office space. There is also a deep talent pool in the form of top tech companies and several strong universities with engineering programs.

Even though Austin hogs the spotlight this time of year, spend a few minutes soaking up Seattle in the infographic below. It may leave some entrepreneurs willing to consider a move.

Infographic via Seattle Nissan  (Click image below to enlarge)

John Boitnott is a writer and social media consultant who has worked at Village Voice Media and NBC. He is now Vice President of Business Development at Hasai Inc.

Amazon is buying up real estate in three city blocks in Seattle and plans to build a million-square-foot office tower on each block.

The company signed a purchase-and-sale agreement with the property owners several weeks ago, and that agreement included options to purchase even more property in the future. The Seattle Times says this is the biggest real estate deal Seattle has seen in years. Though the seller declined to disclose the exact terms of the deal, a representative of the real estate group said the deal was “off the charts” and that the facilities were going to be “world-class.”

The company’s growth is undeniable; over the past several years, Amazon has become a mainstream titan of e-commerce, and its cloud services for web hosting are omnipresent in a world populated with apps.

However, the company did post dramatically lower-than-expected profits for Q4 2011. The year-end numbers included a huge 58 percent dip in net income. Still, in terms of revenue, Amazon brought in $17.43 billion in sales, up 35 percent year-over-year, with Amazon S3 growing at a rate of 193 percent year-over-year.

A significant chunk of that revenue can be attributed to sales of the company’s Kindle line of tablets and e-readers. In fact, tablet and e-reader ownership saw enormous increases over the 2011 holiday season, with Kindles selling at a rate of a million each week during at least some of that period.

Also, the company has been heavily promoting its Amazon Prime service, which bundles free and fast shipping for e-commerce customers as well as a slew of premium content in the streaming video category, including shows from Comedy Central, MTV, VH1, and other networks.

Image courtesy of leungchopan, Shutterstock

We’re inviting up to 10 companies who are contemplating launching products at DEMO (either at the upcoming DEMO event September 12-14 in Silicon Valley, or DEMO Spring 2012) to pitch on Tuesday, June 21 at Madrona’s offices (1000 Second Avenue).

This fall’s DEMO is going to be a big one. Note some of the changes we’ve made recently, including our scholarship program, which allows a select group of early stage companies to launch for free.

Aside from editing VentureBeat, I’m also the Executive Producer of DEMO and am in charge of selecting DEMO companies. So this is a chance to get feedback from me. You’ll also have the opportunity to meet with senior partners at Madrona and Maveron, another respected venture firm that will be joining us.

Like me, Madrona and Maveron are in search of ambitious entrepreneurs with great ideas. This will be one in a series of informal DEMO gatherings we’ve been having leading up to the next DEMO. We’ll be posting soon about our plans for other cities and other top venture capitalists, and if you’d like to come to Madrona, please fill out this form.

If you’re selected as one of the 10 companies, we’ll follow up immediately with more information about the presentation and attendees from DEMO and Madrona.

Look forward to seeing you!

Splunk provides IT professionals with ways to log any piece of information and quickly index it, find it and run a number of analytics functions on it. That can be GPS data, data from customer relationship management (CRM) software from Oracle or cell phone data — basically anything, as long as it has a time stamp. The service has a bit of a cult following among IT professionals and is a pretty strong candidate for an IPO this year.

Splunk is basically making a statement that it can compete with the likes of Google, Microsoft, Facebook and other Web 2.0 titans — all of which have offices in the Seattle area — for talented developers and engineers. The competition for talent in Silicon Valley is even more fierce, with basically every tech company in existence running a San Francisco- or Bay Area-based office.

It wasn’t a move to save money, either, said Splunk co-founder Erik Swan. The new office will serve as a home base for Brad Lovering, a Microsoft technical fellow that Splunk just hired, and as a recruiting central for the area. Splunk considered Los Angeles and Austin, Texas, as potential locations for new offices. Each spot has its own quirks and types of engineers and developers, and Seattle ended up being the best fit, Swan said.

Microsoft had a lot to do with that culture, said Swan. Founded in 1975, Microsoft has been based in Redmond, Wash., since its inception. Microsoft, along with Amazon, has attracted a large amount of system administrators and developers to the Seattle area, he said.

“Microsoft has done a brilliant job of building people who understand the developer ecosystem, what it means to support developers,” Swan said. “Much more so than the Valley.”

Splunk has raised $40 million in venture funding from Ignition Partners, August Capital, JK&B Capital, and Sevin Rosen Funds. The San Francisco, Calif.-based company brought in $66 million last year in revenue, up 96 percent from 2009, and signed on an extra five Fortune 100 companies as clients. Splunk currently has around half of the Fortune 100 companies as clients, and 2,500 customers overall.

The company has around 260 employees and also has an office in Hong Kong.

We’re inviting up to 10 companies that are contemplating launching products at DEMO (either at the upcoming DEMO event February 27 – March 1 in Palm Desert, or DEMO Fall 2011) to present their ideas on Tuesday, November 30 at Madrona’s offices at 1000 Second Avenue.

Warning: If you’re a Groupon clone, you may not make the cut — yep, we’re still seeing an onslaught of these for some reason. :)

This is an easy way to get smart, frank feedback from Madrona partners, as well as from myself and the DEMO team. Each presentation will get at least 20 minutes, followed by 10 minutes of feedback. If you’re interested in doing this, please fill out this form.

It’s part of my ongoing quest to find the best companies from around the world to launch at DEMO, an event where we select 60 or so finalists to demo their product to the world’s leading technology press corps. In addition to the press fest, DEMO is attended by leading venture capitalists as well as corporate and business-development execs. It’s an awesome event for getting unprecedented publicity and for striking deals.

In each of our pre-event stops, we partner with what we think are the best firms in each location. In the past, they have included the Foundry Group, Benchmark, Kleiner Perkins and others. We also have one coming up at Sequoia Capital on December 7 (stay tuned for details).

If you’re selected as one of the 10 companies, we’ll follow up immediately with more information about the presentation and attendees from DEMO and Madrona. Not every company will make the cut, but even those who don’t may get an invitation to an intimate cocktail reception at Madrona that will take place at the end of the day, from 4:30 to 6 p.m. There will be drinks and snacks, and we’ll basically just hang out.

After the Madrona meetup, we’ll all head over to cocktails at The Crocodile Club, which will be an open networking event for Seattle tech movers and shakers, from 7 to 9 p.m. Spread the word. We’ll be buying drinks there for the first 75 people who show up. Please register here for that.

The next day, on December 1, I’ll be speaking at The Flashies, hosted by John Cook’s TechFlash, the leading tech blog covering the NorthWest. His annual tech award show is at the Seattle Center. If you don’t know about The Flashies, you should check them out, and go vote on today’s No Longer Stealth Award.

Look forward to seeing you!

Zynga

The company plans to hire a number of game developers for the office, according to the listings. The company confirmed that it plans to open an office in Seattle.

San Francisco-based Zynga is one of the fastest-growing gaming companies in history, with more than 1,200 employees now across studios in 12 cities. The company recently took a seven-year lease on a new headquarters in San Francisco’s South of Market district. That office can accommodate as many as 2,000 people.

The new Seattle office is a nod for that region’s growing presence in video games. Nintendo of America and Microsoft have big game operations there, as do independent developers such as PopCap Games.

In another development, Zynga bought Bonfire Studios of Dallas, Texas, last week for an undisclosed price. A regulatory filing revealed today suggested that the price paid for the studio was $6.4 million. Zynga has bought a number of smaller game makers in the U.S. and abroad, in a strategy which has boosted its ranks of talents and allowed it to quickly establish studio operations in new locations.

[front page image via The New York Times]

We’re inviting up to 10 companies who are contemplating launching products at DEMO (either at the upcoming DEMO event in September 13-15 in Silicon Valley, or DEMO Spring 2011) to pitch on Tuesday, May 4 Thursday, May 6 at Madrona’s offices at 1000 Second Avenue.

Aside from editing VentureBeat, I’m the Executive Producer of DEMO and am in charge of selecting DEMO companies. So this is a chance to pitch me and other members of the DEMO team. You’ll also have the opportunity to meet with senior partners at Madrona. Each presentation will get at least 20 minutes, followed by 10 minutes of feedback.

We did something similar last year at Kleiner Perkins, one of the top firms in Silicon Valley, and it was a big success. That’s why we’re taking this on the road and doing it in other regions. We’re thrilled that Madrona has offered their support in doing this for the entrepreneur community.

As was the case with Kleiner, there’s no exclusive deal with Madrona; like us, they just want to hear about new companies and ideas. This will be just one in a series of informal DEMO gatherings we’ll be having over the next several weeks, in the run-up to the next DEMO. We’ll be posting soon about our plans for other cities and other top venture capitalists. If you’re interested in attending the open house, please fill out this form.

Not every company will make the cut for the pitch session. But even those who don’t make it may get a consolation prize: an invitation to an intimate cocktail reception at Madrona that will take place at the end of the day, from 4:30 to 6 p.m. There will be drinks and snacks, and we’ll basically just hang out.

We’ve tried to be inclusive, and so we’ve invited some other local investors and top angels, such as Andy Sack, who leads the Founder’s Co-op, the region’s most respected seed early stage fund.

After the Madrona meetup, we’ll all head over to cocktails at The Crocodile Club, which will be open to the entire Seattle tech scene, from 6:30 to 9 p.m. Spread the word. Let’s have a big bash. We’ll be buying drinks there for the first 75 people who show up. Please register here for that.

If you’re selected as one of the 10 companies, we’ll follow up immediately with more information about the presentation and attendees from DEMO and Madrona.

Look forward to seeing you!