diff --git a/configure.ac b/configure.ac
index 0f48747775c..57c7d46ff18 100644
--- a/configure.ac
+++ b/configure.ac
@@ -1,4 +1,4 @@
-AC_INIT([vowpal_wabbit], [7.7], [jl@hunch.net])
+AC_INIT([vowpal_wabbit], [7.8], [jl@hunch.net])
 AC_DEFINE([PACKAGE_URL],["https://github.com/JohnLangford/vowpal_wabbit"],[project url])
 AC_CONFIG_HEADERS(vowpalwabbit/config.h)
 AM_INIT_AUTOMAKE()