Don Dodge used to be an official evangelist for Microsoft, hyping the company's software and insulting its competitor Google. Then Microsoft laid him off, and Google hired him. Cue the bitter, flip-flopping blog post in which Dodge loudly switches sides.

At 10 a.m., Jeff Bonforte, the ex-Yahoo who's now CEO of Xobni, described his status on LinkedIn as "legal documents up to my ears." What could have him so submerged? Microsoft has long been rumored to be interested in Xobni, which makes a plugin for its Outlook software. Not long ago, Microsoft startup scout Don Dodge took the startup's small team to dinner, but Xobni's said to have balked at a sub-$20 million offer they viewed as lowball. If Bonforte has actually persuaded Microsoft to raise it, he'll have earned his pay. The irony, if a deal happens: Bonforte will likely end up working for Microsoft long before his former colleagues. Update: Xobni cofounder Matt Brezina tells me the legal documents are for intellectual-property licenses, not a sale. Sounds dreadfully boring — and good training for a career at Microsoft if the widely expected purchase goes through.

Another Demo is coming up this January 28-30. Smart startup founders will save their best pitches not for the bored audience — trust us, they'll all be ignoring you and sending BlackBerry emails. Instead, buttonhole the guys with money to spend, starting with reps from Google, Microsoft and Cisco. Here's who they're sending.

Microsoft executive Don Dodge captures a moment from the TechCrunch40 conference. Or, more specifically, after the conference, in the limo ferrying VIPs from the TechCrunch40 VIP dinner to the after party at Fluid. Pictured, from left, Mayfield Fund VC Raj Kapoor on the floor of the limo; Allen Morgan, also from Mayfield, throwing gang signs; DanceJam cofounder MC Hammer; and angel investor Ron Conway, looking bewildered.