This post originally appeared on Forbes.com, where Mashable regularly contributes articles about social media, business and technology.
Why do web startups raise money? And how? These are two questions that account for a huge corpus of tech and financial discussion. Despite the complexity involved in these questions, their answers can be condensed into an eight-word statement: Someone somewhere thought he’d make his money back.
If you consider a few notable fundraising efforts from popular web startups, you begin to see how this aforementioned hypothetical “someone” might think his investment would be prudent and even profitable. Here are five popular web startups we’ve seen raising large amounts of money since the 2008 downturn, and a quick look at how they were able to do so.
1. Groupon
Groupon offers daily discounts for local businesses; these coupons can be redeemed only when a significant number of people choose to use them. For example, Groupon recently partnered with Gap to offer shoppers $50 worth of clothing and accessories for $25.
While daily deals and critical-mass coupons are fine and dandy for retailers and consumers, Groupon also takes its cut. The company usually keeps half of the coupon price and is expected to report $400 million in revenue for 2010.
Groupon has brought in increasing interest from investors. Since its relatively modest $1 million angel round in 2007, this startup has gone on to garner a total of $173 million over the past three years, the vast majority of which was raised after the 2008 economic crash. After collecting $6.8 million during its Series A round of funding, Groupon managed to bring in $30 million during its Series B round in December 2009, which was led by Accel Partners. Its headline-making $135 million Series C was led by Digital Sky Technologies, the famous investors behind Zynga and class='blippr-nobr'>Facebookclass="blippr-nobr">Facebook.
Without question, having a revenue stream as a core part of the company’s main product is a popular feature (with VCs) of funded startups. Groupon has that covered. Aside from the value the product offers, at scale, it also is intended to generate massive amounts of revenue. Unlike some social networking apps that require partnerships and advertising dollars to support an unrelated product for end users, generating revenue is Groupon’s most basic function.
2. Zynga
Zynga, creator of popular casual games, including FarmVille and Mafia Wars, boasts a revenue model based on small end-user transactions in virtual currency, which users spend on virtual goods. Zynga has proved that microtransactions at the scale of Facebook’s platform are big business worth serious investment.
Despite violating a core tenet of web startup wisdom: Never build your business on someone else’s platform, Zynga has racked up huge rounds and equally huge valuations. All told, Zynga has taken $519 million in funding, the bulk of which was raised after December 2009. In that month, the company closed a $180 million Series C from such firms as Andreessen Horowitz, Digital Sky and others. And in June 2010, Zynga took a $300 million Series D from class='blippr-nobr'>Googleclass="blippr-nobr">Google and SoftBank. With more than 56 million Americans playing social games, it’s no wonder why investors are putting down serious money in this industry.
3. Twitterclass="blippr-nobr">Twitter
Since its launch in 2006, micro-blogging service Twitter has become a social media darling, raising a total of $160 million since its 2007 Series A. The company raised $135 million over two rounds in 2009 from such firms as Benchmark, Morgan Stanley, Union Square and others.
Notably, all this money was raised before Twitter had found any significant source of revenue. This fact bucks a major trend in investment (that VCs like to see clear revenue stream before investing), but Twitter pulled it off because of one major factor: People.
Not only was the service growing exponentially, but it also had the endorsement (and daily usage) of pop culture celebrities such as Ashton Kutcher and Justin Timberlake. But nothing topped Twitter’s Oprah appearance, a watershed moment that brought a deluge of mainstream attention and a glut of new users.
Between the escalating adoption and increasing media attention, Twitter has become an opportunity investors can’t turn down.
4. Asana
Facebook Co-Founder Dustin Moscovitz and Facebook engineering lead Justin Rosenstein teamed up after leaving Facebook to found Asana, a startup that is reportedly building project management software. It is still in early development and hasn’t launched a product yet. This is one case where the product is presumed to be a sure bet because of the past experience and intellectual caliber of its creators.
Sometimes, a startup can raise money with nothing but pure pedigree. When a handful of big tech company engineers leave the mothership to found a startup, as happens in Silicon Valley from time to time, they can often drum up a round of funding before pencil meets paper.
Over seven months in 2009, the team was able to raise $10.2 million in two rounds of funding. In this case, investors are banking on Moscovitz’s and Rosenstein’s past successes. In a way, it’s as if they are investing in Beethoven’s next symphony or Van Gogh’s next canvas (i.e. the next Facebook).
5. Ustreamclass="blippr-nobr">ustream
Finally, there’s Ustream, a live interactive broadcast platform, which raised an impressive $75 million round of funding earlier this year from SoftBank. Previously, the startup had brought in nearly $13 million between a small 2007 seed round and a 2008 Series A. That’s a huge jump.
Despite a range of competitors in the online video world, including class='blippr-nobr'>YouTubeclass="blippr-nobr">YouTube, Ustream has made its mark on the live video market. Ustream has demonstrated mass-scale success in this arena by brokering deals to show live online footage of red carpet events, celebrity press conferences and even the 2008 Presidential Inauguration.
While challenging an industry leader like YouTube isn’t usually a prudent path to funding, doing so successfully through innovative technologies and user acquisition strategies can pay off.
More Business Resources from Mashable:
- 10 Emerging Social Platforms and How Businesses Can Use Them/> - 10 Free WordPress Themes for Small Businesses/> - The Future of Ad Agencies and Social Media/> - HOW TO: Run Your Business Online with $10 and a Google Account/> - 5 New Ways Small Business Can Offer Location-Based Deals
Image courtesy of iStockphotoclass="blippr-nobr">iStockphoto, Sage78
For more Business coverage:
class="f-el">class="cov-twit">Follow Mashable Businessclass="s-el">class="cov-rss">Subscribe to the Business channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for iPhone and iPad
The CNN Washington Bureau’s morning speed read of the top stories making news from around the country and the world.
WASHINGTON/POLITICAL
For the latest political news: www.CNNPolitics.com
CNN: Internal warfare in the Delaware Republican party
Nine-term Republican Congressman Mike Castle finds himself in a tight primary race with TV commentator and Tea Party favorite Christine O'Donnell in Delaware's Republican U.S. Senate primary on Tuesday. In the closing days of the primary campaign, O'Donnell has gotten a boost with an endorsement by former Alaska Gov. Sarah Palin and more than $150,000 in late spending from the Tea Party Express.
CNN: GOP colleagues seek distance from Boehner on tax issue
GOP colleagues of House Minority Leader John Boehner are distancing themselves from the Ohio Republican's recent remarks that he would support President Barack Obama's proposal to renew the expiring Bush tax cuts only for those making less than $250,000 if it were his only option.
CNN: Bill Clinton featured in 11th hour robocall for Rangel
Former President Bill Clinton has recorded an 11th hour robocall for 20-term New York Rep. Charlie Rangel, who is facing five Democratic challengers in a primary race Tuesday. The last-minute robocall underscores the fact that Rangel is facing in the toughest bid for re-election in his 40-year political career.
CNN: McCain breaks with Palin in Maryland
Republican Brian Murphy is heading into Tuesday's GOP gubernatorial primary in Maryland with a last minute robocall from conservative star Sarah Palin. Just hours earlier, Sen. John McCain – Palin's former presidential running mate – had announced his support for Murphy's primary opponent, former Gov. Robert Ehrlich in an interview with the AP, saying Ehrlich is "a fine guy."
New York Times: After Volatile Primary Season, G.O.P. Faces New Test
As the long and turbulent primary season of the midterm election campaign drew to a close on Monday, the Republican establishment was placing its confidence on hold and bracing for the prospect that voters in yet another state would send a message of defiance to party leaders in Washington. The Senate primary in Delaware on Tuesday was prompting anxiety among party officials, who feared that a victory by Christine O’Donnell, a candidate backed by the Tea Party, could complicate Republican efforts to win control of the Senate.
CNN: Delaware not the only Tea Party vs. GOP battle Tuesday
It may not be grabbing the national spotlight like the Republican Senate primary in Delaware, but the GOP Senate primary in New Hampshire shares a similar storyline: A hard-charging conservative candidate threatening to upset the candidate favored by establishment Republicans.
Politico: Dems plan for a future without Pelosi
For House Democrats, planning for a future without Speaker Nancy Pelosi is neither pleasant nor easy. But as poll results worsen and a Republican-controlled House looks more and more likely, Democrats are beginning to realize they face a top-to-bottom leadership shake-up if the powerful speaker steps aside in a Democratic minority.
Roll Call: Van Hollen: We Haven’t Lost the House Yet
After an August recess tour that included stops in 17 battleground districts around the country, Democratic Congressional Campaign Committee Chairman Chris Van Hollen (Md.) returned to Capitol Hill confident that predictions of a lost majority are premature.
CNN Money: Big business and Wall Street bet on GOP
Banks, investment firms and hedge funds are giving millions of dollars more to Republicans, and abandoning the Democrats they had been supporting just a year ago. The Center for Responsive Politics says the reversal began early this year, as the Senate started crafting tougher rules to crack down on Wall Street, and that it has become more pronounced.
CNN Money: New year, no federal budget
On Oct. 1, just three weeks after lawmakers return from their summer break on Tuesday, fiscal year 2011 will begin. But Congress will not have a new budget in place by then. And it may not materialize anytime soon. It won't be the first time. In fact, tardy federal budgets have been par for the course for most of the past 35 years.
CNN: Plouffe on Gingrich: 'Sad and reprehensible'
The architect of President Obama's 2008 presidential campaign Monday sharply criticized remarks made by former House Speaker Newt Gingrich over the weekend that President Obama follows a "Kenyan, anti-colonial" worldview. "Two words that come to mind are 'sad' and 'reprehensible,'" David Plouffe told CNN's John King on John King USA.
CNN: Obama to push kids to work hard in 'back-to-school' speech
President Barack Obama will deliver his second "back-to-school" message to the nation's students Tuesday, but this year, no one's complaining. The speech – to be delivered at Julia R. Masterman Laboratory and Demonstration School in Philadelphia, Pennsylvania – encourages students to make the most of their education opportunities.
CNN: Senate to take up 'don't ask, don't tell' repeal next week
A military spending bill that includes the repeal of the "don't ask, don't tell" policy banning openly gay and lesbian soldiers will come up for Senate debate next week, according to Senate Majority Leader Harry Reid's office.
CNN: D.C. mayoral primary may be felt far beyond the District
Mayor Adrian Fenty swept into office in 2006 promising to fix the District of Columbia's struggling schools. Now, Fenty is in the fight of his career in part because of how he's tried to reform the district's schools. …While this is a local election – the Democratic mayoral primary – the race is being closely watched far beyond the District because the outcome could carry significant implications for the national debate over education reform.
The Hill: Maine Republican lashes out at reporters during press conference
This definitely isn't the best way for a gubernatorial candidate to end a press conference. Maine Republican Paul LePage grew irate Monday after getting pressed by reporters on details about how his wife, Ann, had potentially "violated statutes by claiming property tax exemptions on homes in both Maine and Florida," according to the Bangor Daily News.
NATIONAL
For the latest national news: www.CNN.com
CNN: U.S. preparing massive arms deal for Saudi Arabia, defense official says
The Obama administration is preparing to notify Congress of plans to sell $60 billion of military equipment to Saudi Arabia, according to a U.S. defense official. The official, who would not be identified because the proposal has not yet been sent to Congress, described the deal as "enormous."
CNN: Man accused of Christmas bombing attempt on plane to represent himself
Umar Farouk AbdulMutallab, the man accused of trying to blow up a plane last Christmas, said in court Monday that he no longer wants to be represented by federal defenders and would act as his own attorney. Judge Nancy Edmunds granted his request and appointed standby counsel for him. She also asked him a series of questions about his knowledge of law, the case and the charges he faces.
Washington Post: Legislation would federalize private guards who protect U.S. government buildings
Private security guards protecting the nation's federal buildings might one day earn a government paycheck and could face new national training and certification standards if legislation introduced Monday advances in the coming months.
Newark Star Ledger: N.J. town files lawsuit against imam behind controversial mosque near Ground Zero
A lawsuit filed by Union City charges that the landlord of two apartment buildings has repeatedly failed to address complaints by tenants and orders by the city on issues ranging from moldy bathrooms to fire hazards. Landlord-tenant disputes are nothing new, even those with municipalities entering the fray. Except in this case, city officials say the landlord is Feisal Abdul Rauf, the imam behind the controversial proposal to develop an Islamic cultural center and mosque near Ground Zero.
INTERNATIONAL
For the latest international news: http://edition.cnn.com
CNN: Mideast peace talks a second chance for Hillary Clinton
Listen to Secretary of State Hillary Clinton talk about the Mideast peace talks during Bill Clinton's presidency, and you get the impression she feels the chance to secure a two-state solution eluded her as much as it did her husband. As first lady, though not a principal negotiator, she'd travel to the Mideast to meet with Israeli and Palestinian leaders in support of Bill Clinton's policies on the issue.
CNN: US: Government will not contribute to detained American's bail money
Half a million dollars bail stands between American Sarah Shourd and freedom from the Iranian prison where she has been held since July 2009. But the U.S. will play no role in paying it, a State Department spokesman said Monday.
CNN: 36 survive Venezuelan plane crash
More than two-thirds of the passengers survived an airplane crash Monday morning in southeastern Venezuela, government officials said. Fifteen people were confirmed dead and 36 survived when the plane, carrying 51 passengers and crew, crashed in the state of Bolivar, Gov. Francisco Rangel Gomez said.
New York Times: U.S. Koran Tensions Erupt in Kashmir
Kashmir erupted on Monday in the worst violence since separatist protests began sweeping through the disputed Himalayan region three months ago, with the authorities partly blaming reports of Koran desecration in the United States for the inflamed tensions.
CNN: Suspected U.S. drone kills nine in Pakistan
A suspected U.S. drone strike killed nine alleged militants in Pakistan's tribal region Tuesday morning, intelligence officials said. Two intelligence officials said three missiles were fired on the hideout of suspected militants in the Shawal area of North Waziristan, one of seven districts in Pakistan's tribal region bordering Afghanistan.
CNN: Cuba to lay off 500,000 in 6 months, allow private jobs
Cuba announced on Monday it would lay off "at least" half a million state workers over the next six months and simultaneously allow more jobs to be created in the private sector as the socialist economy struggles to get back on its feet. The plan announced in state media confirms that President Raul Castro is following through on his pledge to shed some one million state jobs, a full fifth of the official workforce - but in a shorter timeframe than initially anticipated.
CNN: Japan's ruling party set for leadership vote
When Japan's ruling party finishes its vote later Tuesday, the Asian island nation could have its third prime minister in a year. Ichiro Ozawa, a political heavy-weight in the ruling Democratic Party of Japan (DPJ), challenged Naoto Kan for the leadership role just three months into Kan's tenure.
BUSINESS
For the latest business news: www.CNNMoney.com
CNN Money: Plan to end oil industry tax breaks draws fire
The debate over eliminating tax breaks for the oil and gas companies is heating up, with an industry group saying Monday that the move could cost the energy sector thousands of jobs. President Obama signaled last week that his administration could pay for $180 billion in recently proposed economic recovery measures by closing tax loopholes for major corporations, including tax breaks and subsidies for oil and gas producers.
USA Today: Gender pay gap is smallest on record
The earnings gap between men and women has shrunk to a record low, partly because many women are prospering in the new economy and partly because men have been hit hard by the recession. Women earned 82.8% of the median weekly wage of men in the second quarter of 2010, up from 76.1% for the same period a decade ago and the highest ever recorded, the Bureau of Labor Statistics reports.
Wall Street Journal: AIG Plots End to U.S. Aid
American International Group Inc. and its government overseers are in talks to speed up an exit plan designed to repay U.S. taxpayers in full while enabling the giant insurer to regain independence, according to people familiar with the matter. Under the plan, which could commence as early as the first half of 2011, the Treasury Department is likely to convert $49 billion in AIG preferred shares it holds into common shares, a move that could bring the government's ownership stake in AIG to above 90%, from 79.8% currently, the people familiar said.
In Case You Missed It
A political panel joins to weigh in on Newt Gingrich calling President Obama a 'con man' and 'authentically dishonest'.
http://www.cnn.com/video/#/video/politics/2010/09/14/ac.gingrich.kenyan.comments.cnn
Brian Todd reports on a now-heated Senate race in Delaware, where the Tea Party battles established GOP candidates.
http://www.cnn.com/video/#/video/politics/2010/09/13/pkg.todd.gop.v.tea.party.cnn
Subscribe to the CNN=Politics DAILY podcast at http://www.cnn.com/politicalpodcast
And now stay posted on the latest from the campaign trail by downloading the CNN=Politics SCREENSAVER at http://www.CNN.com/situationroom
Firstly, no groans about the Christmas news, please. If we didn't tell you what London's brilliant theatres have planned for this December, what would you have to get excited about as the nights start drawing in? ...
You'll never believe this one, but it appears Keith Olbermann isn't the biggest fan of Fox News. But in case there was any doubt, on last night's Countdown he made it clear again, going after what he sees as the network blatantly ...
Here is a look at real-estate news in today's WSJ.
robert shumakeFirstly, no groans about the Christmas news, please. If we didn't tell you what London's brilliant theatres have planned for this December, what would you have to get excited about as the nights start drawing in? ...
You'll never believe this one, but it appears Keith Olbermann isn't the biggest fan of Fox News. But in case there was any doubt, on last night's Countdown he made it clear again, going after what he sees as the network blatantly ...
Here is a look at real-estate news in today's WSJ.
This post originally appeared on Forbes.com, where Mashable regularly contributes articles about social media, business and technology.
Why do web startups raise money? And how? These are two questions that account for a huge corpus of tech and financial discussion. Despite the complexity involved in these questions, their answers can be condensed into an eight-word statement: Someone somewhere thought he’d make his money back.
If you consider a few notable fundraising efforts from popular web startups, you begin to see how this aforementioned hypothetical “someone” might think his investment would be prudent and even profitable. Here are five popular web startups we’ve seen raising large amounts of money since the 2008 downturn, and a quick look at how they were able to do so.
1. Groupon
Groupon offers daily discounts for local businesses; these coupons can be redeemed only when a significant number of people choose to use them. For example, Groupon recently partnered with Gap to offer shoppers $50 worth of clothing and accessories for $25.
While daily deals and critical-mass coupons are fine and dandy for retailers and consumers, Groupon also takes its cut. The company usually keeps half of the coupon price and is expected to report $400 million in revenue for 2010.
Groupon has brought in increasing interest from investors. Since its relatively modest $1 million angel round in 2007, this startup has gone on to garner a total of $173 million over the past three years, the vast majority of which was raised after the 2008 economic crash. After collecting $6.8 million during its Series A round of funding, Groupon managed to bring in $30 million during its Series B round in December 2009, which was led by Accel Partners. Its headline-making $135 million Series C was led by Digital Sky Technologies, the famous investors behind Zynga and class='blippr-nobr'>Facebookclass="blippr-nobr">Facebook.
Without question, having a revenue stream as a core part of the company’s main product is a popular feature (with VCs) of funded startups. Groupon has that covered. Aside from the value the product offers, at scale, it also is intended to generate massive amounts of revenue. Unlike some social networking apps that require partnerships and advertising dollars to support an unrelated product for end users, generating revenue is Groupon’s most basic function.
2. Zynga
Zynga, creator of popular casual games, including FarmVille and Mafia Wars, boasts a revenue model based on small end-user transactions in virtual currency, which users spend on virtual goods. Zynga has proved that microtransactions at the scale of Facebook’s platform are big business worth serious investment.
Despite violating a core tenet of web startup wisdom: Never build your business on someone else’s platform, Zynga has racked up huge rounds and equally huge valuations. All told, Zynga has taken $519 million in funding, the bulk of which was raised after December 2009. In that month, the company closed a $180 million Series C from such firms as Andreessen Horowitz, Digital Sky and others. And in June 2010, Zynga took a $300 million Series D from class='blippr-nobr'>Googleclass="blippr-nobr">Google and SoftBank. With more than 56 million Americans playing social games, it’s no wonder why investors are putting down serious money in this industry.
3. Twitterclass="blippr-nobr">Twitter
Since its launch in 2006, micro-blogging service Twitter has become a social media darling, raising a total of $160 million since its 2007 Series A. The company raised $135 million over two rounds in 2009 from such firms as Benchmark, Morgan Stanley, Union Square and others.
Notably, all this money was raised before Twitter had found any significant source of revenue. This fact bucks a major trend in investment (that VCs like to see clear revenue stream before investing), but Twitter pulled it off because of one major factor: People.
Not only was the service growing exponentially, but it also had the endorsement (and daily usage) of pop culture celebrities such as Ashton Kutcher and Justin Timberlake. But nothing topped Twitter’s Oprah appearance, a watershed moment that brought a deluge of mainstream attention and a glut of new users.
Between the escalating adoption and increasing media attention, Twitter has become an opportunity investors can’t turn down.
4. Asana
Facebook Co-Founder Dustin Moscovitz and Facebook engineering lead Justin Rosenstein teamed up after leaving Facebook to found Asana, a startup that is reportedly building project management software. It is still in early development and hasn’t launched a product yet. This is one case where the product is presumed to be a sure bet because of the past experience and intellectual caliber of its creators.
Sometimes, a startup can raise money with nothing but pure pedigree. When a handful of big tech company engineers leave the mothership to found a startup, as happens in Silicon Valley from time to time, they can often drum up a round of funding before pencil meets paper.
Over seven months in 2009, the team was able to raise $10.2 million in two rounds of funding. In this case, investors are banking on Moscovitz’s and Rosenstein’s past successes. In a way, it’s as if they are investing in Beethoven’s next symphony or Van Gogh’s next canvas (i.e. the next Facebook).
5. Ustreamclass="blippr-nobr">ustream
Finally, there’s Ustream, a live interactive broadcast platform, which raised an impressive $75 million round of funding earlier this year from SoftBank. Previously, the startup had brought in nearly $13 million between a small 2007 seed round and a 2008 Series A. That’s a huge jump.
Despite a range of competitors in the online video world, including class='blippr-nobr'>YouTubeclass="blippr-nobr">YouTube, Ustream has made its mark on the live video market. Ustream has demonstrated mass-scale success in this arena by brokering deals to show live online footage of red carpet events, celebrity press conferences and even the 2008 Presidential Inauguration.
While challenging an industry leader like YouTube isn’t usually a prudent path to funding, doing so successfully through innovative technologies and user acquisition strategies can pay off.
More Business Resources from Mashable:
- 10 Emerging Social Platforms and How Businesses Can Use Them/> - 10 Free WordPress Themes for Small Businesses/> - The Future of Ad Agencies and Social Media/> - HOW TO: Run Your Business Online with $10 and a Google Account/> - 5 New Ways Small Business Can Offer Location-Based Deals
Image courtesy of iStockphotoclass="blippr-nobr">iStockphoto, Sage78
For more Business coverage:
class="f-el">class="cov-twit">Follow Mashable Businessclass="s-el">class="cov-rss">Subscribe to the Business channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for iPhone and iPad
The CNN Washington Bureau’s morning speed read of the top stories making news from around the country and the world.
WASHINGTON/POLITICAL
For the latest political news: www.CNNPolitics.com
CNN: Internal warfare in the Delaware Republican party
Nine-term Republican Congressman Mike Castle finds himself in a tight primary race with TV commentator and Tea Party favorite Christine O'Donnell in Delaware's Republican U.S. Senate primary on Tuesday. In the closing days of the primary campaign, O'Donnell has gotten a boost with an endorsement by former Alaska Gov. Sarah Palin and more than $150,000 in late spending from the Tea Party Express.
CNN: GOP colleagues seek distance from Boehner on tax issue
GOP colleagues of House Minority Leader John Boehner are distancing themselves from the Ohio Republican's recent remarks that he would support President Barack Obama's proposal to renew the expiring Bush tax cuts only for those making less than $250,000 if it were his only option.
CNN: Bill Clinton featured in 11th hour robocall for Rangel
Former President Bill Clinton has recorded an 11th hour robocall for 20-term New York Rep. Charlie Rangel, who is facing five Democratic challengers in a primary race Tuesday. The last-minute robocall underscores the fact that Rangel is facing in the toughest bid for re-election in his 40-year political career.
CNN: McCain breaks with Palin in Maryland
Republican Brian Murphy is heading into Tuesday's GOP gubernatorial primary in Maryland with a last minute robocall from conservative star Sarah Palin. Just hours earlier, Sen. John McCain – Palin's former presidential running mate – had announced his support for Murphy's primary opponent, former Gov. Robert Ehrlich in an interview with the AP, saying Ehrlich is "a fine guy."
New York Times: After Volatile Primary Season, G.O.P. Faces New Test
As the long and turbulent primary season of the midterm election campaign drew to a close on Monday, the Republican establishment was placing its confidence on hold and bracing for the prospect that voters in yet another state would send a message of defiance to party leaders in Washington. The Senate primary in Delaware on Tuesday was prompting anxiety among party officials, who feared that a victory by Christine O’Donnell, a candidate backed by the Tea Party, could complicate Republican efforts to win control of the Senate.
CNN: Delaware not the only Tea Party vs. GOP battle Tuesday
It may not be grabbing the national spotlight like the Republican Senate primary in Delaware, but the GOP Senate primary in New Hampshire shares a similar storyline: A hard-charging conservative candidate threatening to upset the candidate favored by establishment Republicans.
Politico: Dems plan for a future without Pelosi
For House Democrats, planning for a future without Speaker Nancy Pelosi is neither pleasant nor easy. But as poll results worsen and a Republican-controlled House looks more and more likely, Democrats are beginning to realize they face a top-to-bottom leadership shake-up if the powerful speaker steps aside in a Democratic minority.
Roll Call: Van Hollen: We Haven’t Lost the House Yet
After an August recess tour that included stops in 17 battleground districts around the country, Democratic Congressional Campaign Committee Chairman Chris Van Hollen (Md.) returned to Capitol Hill confident that predictions of a lost majority are premature.
CNN Money: Big business and Wall Street bet on GOP
Banks, investment firms and hedge funds are giving millions of dollars more to Republicans, and abandoning the Democrats they had been supporting just a year ago. The Center for Responsive Politics says the reversal began early this year, as the Senate started crafting tougher rules to crack down on Wall Street, and that it has become more pronounced.
CNN Money: New year, no federal budget
On Oct. 1, just three weeks after lawmakers return from their summer break on Tuesday, fiscal year 2011 will begin. But Congress will not have a new budget in place by then. And it may not materialize anytime soon. It won't be the first time. In fact, tardy federal budgets have been par for the course for most of the past 35 years.
CNN: Plouffe on Gingrich: 'Sad and reprehensible'
The architect of President Obama's 2008 presidential campaign Monday sharply criticized remarks made by former House Speaker Newt Gingrich over the weekend that President Obama follows a "Kenyan, anti-colonial" worldview. "Two words that come to mind are 'sad' and 'reprehensible,'" David Plouffe told CNN's John King on John King USA.
CNN: Obama to push kids to work hard in 'back-to-school' speech
President Barack Obama will deliver his second "back-to-school" message to the nation's students Tuesday, but this year, no one's complaining. The speech – to be delivered at Julia R. Masterman Laboratory and Demonstration School in Philadelphia, Pennsylvania – encourages students to make the most of their education opportunities.
CNN: Senate to take up 'don't ask, don't tell' repeal next week
A military spending bill that includes the repeal of the "don't ask, don't tell" policy banning openly gay and lesbian soldiers will come up for Senate debate next week, according to Senate Majority Leader Harry Reid's office.
CNN: D.C. mayoral primary may be felt far beyond the District
Mayor Adrian Fenty swept into office in 2006 promising to fix the District of Columbia's struggling schools. Now, Fenty is in the fight of his career in part because of how he's tried to reform the district's schools. …While this is a local election – the Democratic mayoral primary – the race is being closely watched far beyond the District because the outcome could carry significant implications for the national debate over education reform.
The Hill: Maine Republican lashes out at reporters during press conference
This definitely isn't the best way for a gubernatorial candidate to end a press conference. Maine Republican Paul LePage grew irate Monday after getting pressed by reporters on details about how his wife, Ann, had potentially "violated statutes by claiming property tax exemptions on homes in both Maine and Florida," according to the Bangor Daily News.
NATIONAL
For the latest national news: www.CNN.com
CNN: U.S. preparing massive arms deal for Saudi Arabia, defense official says
The Obama administration is preparing to notify Congress of plans to sell $60 billion of military equipment to Saudi Arabia, according to a U.S. defense official. The official, who would not be identified because the proposal has not yet been sent to Congress, described the deal as "enormous."
CNN: Man accused of Christmas bombing attempt on plane to represent himself
Umar Farouk AbdulMutallab, the man accused of trying to blow up a plane last Christmas, said in court Monday that he no longer wants to be represented by federal defenders and would act as his own attorney. Judge Nancy Edmunds granted his request and appointed standby counsel for him. She also asked him a series of questions about his knowledge of law, the case and the charges he faces.
Washington Post: Legislation would federalize private guards who protect U.S. government buildings
Private security guards protecting the nation's federal buildings might one day earn a government paycheck and could face new national training and certification standards if legislation introduced Monday advances in the coming months.
Newark Star Ledger: N.J. town files lawsuit against imam behind controversial mosque near Ground Zero
A lawsuit filed by Union City charges that the landlord of two apartment buildings has repeatedly failed to address complaints by tenants and orders by the city on issues ranging from moldy bathrooms to fire hazards. Landlord-tenant disputes are nothing new, even those with municipalities entering the fray. Except in this case, city officials say the landlord is Feisal Abdul Rauf, the imam behind the controversial proposal to develop an Islamic cultural center and mosque near Ground Zero.
INTERNATIONAL
For the latest international news: http://edition.cnn.com
CNN: Mideast peace talks a second chance for Hillary Clinton
Listen to Secretary of State Hillary Clinton talk about the Mideast peace talks during Bill Clinton's presidency, and you get the impression she feels the chance to secure a two-state solution eluded her as much as it did her husband. As first lady, though not a principal negotiator, she'd travel to the Mideast to meet with Israeli and Palestinian leaders in support of Bill Clinton's policies on the issue.
CNN: US: Government will not contribute to detained American's bail money
Half a million dollars bail stands between American Sarah Shourd and freedom from the Iranian prison where she has been held since July 2009. But the U.S. will play no role in paying it, a State Department spokesman said Monday.
CNN: 36 survive Venezuelan plane crash
More than two-thirds of the passengers survived an airplane crash Monday morning in southeastern Venezuela, government officials said. Fifteen people were confirmed dead and 36 survived when the plane, carrying 51 passengers and crew, crashed in the state of Bolivar, Gov. Francisco Rangel Gomez said.
New York Times: U.S. Koran Tensions Erupt in Kashmir
Kashmir erupted on Monday in the worst violence since separatist protests began sweeping through the disputed Himalayan region three months ago, with the authorities partly blaming reports of Koran desecration in the United States for the inflamed tensions.
CNN: Suspected U.S. drone kills nine in Pakistan
A suspected U.S. drone strike killed nine alleged militants in Pakistan's tribal region Tuesday morning, intelligence officials said. Two intelligence officials said three missiles were fired on the hideout of suspected militants in the Shawal area of North Waziristan, one of seven districts in Pakistan's tribal region bordering Afghanistan.
CNN: Cuba to lay off 500,000 in 6 months, allow private jobs
Cuba announced on Monday it would lay off "at least" half a million state workers over the next six months and simultaneously allow more jobs to be created in the private sector as the socialist economy struggles to get back on its feet. The plan announced in state media confirms that President Raul Castro is following through on his pledge to shed some one million state jobs, a full fifth of the official workforce - but in a shorter timeframe than initially anticipated.
CNN: Japan's ruling party set for leadership vote
When Japan's ruling party finishes its vote later Tuesday, the Asian island nation could have its third prime minister in a year. Ichiro Ozawa, a political heavy-weight in the ruling Democratic Party of Japan (DPJ), challenged Naoto Kan for the leadership role just three months into Kan's tenure.
BUSINESS
For the latest business news: www.CNNMoney.com
CNN Money: Plan to end oil industry tax breaks draws fire
The debate over eliminating tax breaks for the oil and gas companies is heating up, with an industry group saying Monday that the move could cost the energy sector thousands of jobs. President Obama signaled last week that his administration could pay for $180 billion in recently proposed economic recovery measures by closing tax loopholes for major corporations, including tax breaks and subsidies for oil and gas producers.
USA Today: Gender pay gap is smallest on record
The earnings gap between men and women has shrunk to a record low, partly because many women are prospering in the new economy and partly because men have been hit hard by the recession. Women earned 82.8% of the median weekly wage of men in the second quarter of 2010, up from 76.1% for the same period a decade ago and the highest ever recorded, the Bureau of Labor Statistics reports.
Wall Street Journal: AIG Plots End to U.S. Aid
American International Group Inc. and its government overseers are in talks to speed up an exit plan designed to repay U.S. taxpayers in full while enabling the giant insurer to regain independence, according to people familiar with the matter. Under the plan, which could commence as early as the first half of 2011, the Treasury Department is likely to convert $49 billion in AIG preferred shares it holds into common shares, a move that could bring the government's ownership stake in AIG to above 90%, from 79.8% currently, the people familiar said.
In Case You Missed It
A political panel joins to weigh in on Newt Gingrich calling President Obama a 'con man' and 'authentically dishonest'.
http://www.cnn.com/video/#/video/politics/2010/09/14/ac.gingrich.kenyan.comments.cnn
Brian Todd reports on a now-heated Senate race in Delaware, where the Tea Party battles established GOP candidates.
http://www.cnn.com/video/#/video/politics/2010/09/13/pkg.todd.gop.v.tea.party.cnn
Subscribe to the CNN=Politics DAILY podcast at http://www.cnn.com/politicalpodcast
And now stay posted on the latest from the campaign trail by downloading the CNN=Politics SCREENSAVER at http://www.CNN.com/situationroom
robert shumakeFirstly, no groans about the Christmas news, please. If we didn't tell you what London's brilliant theatres have planned for this December, what would you have to get excited about as the nights start drawing in? ...
You'll never believe this one, but it appears Keith Olbermann isn't the biggest fan of Fox News. But in case there was any doubt, on last night's Countdown he made it clear again, going after what he sees as the network blatantly ...
Here is a look at real-estate news in today's WSJ.
robert shumakeFirstly, no groans about the Christmas news, please. If we didn't tell you what London's brilliant theatres have planned for this December, what would you have to get excited about as the nights start drawing in? ...
You'll never believe this one, but it appears Keith Olbermann isn't the biggest fan of Fox News. But in case there was any doubt, on last night's Countdown he made it clear again, going after what he sees as the network blatantly ...
Here is a look at real-estate news in today's WSJ.
