Category: Resources

  • Single People Should NOT Do Startups

    Last night, my 1 and half year old didn’t fall asleep sleep until 11pm (normal bed time = 7:30pm) and then woke up at 2am and screamed till 5am. He is cutting his eye teeth. On top of that I have worked 16 hour days almost the entire week, I am on heavy coding deadline(s) and working constantly with guys in Indonesia & China all night long. It sucks, I’m super sleep deprived. But. I will make it all happen and still be there for my family.

    You see, there is this weird meme in the startup world that says “families” + “startups” don’t work. Dave McClure doesn’t help with his family life mocking “Don’t do a startup, you will fail”.

    I, in fact, also got an up-close look at this “anti-family-ism” recently at a young startup office where the mid-20s founders insinuated that “you can’t have kids and a startup”. It drove me nuts (to the point that I felt obliged to write this article).

    First off there is a whole range of great entrepreneurs locally here who have successfully done both. David Crow (@davidcrow), Tara Hunt (@missrogue), Shyam Sheth (@shyamsheth), Michael Garrity (@mgarrity), myself (@dpmorel) and many others manage this struggle. It is definitely difficult but it is do-able. I’m sure lots of them have good tips (like… work after your kids go to bed… also when single folks are out at the bar).

    In fact, this week I am here in New York at the Peek office. We split our offices with another startup, who have several young single founders. My new theory is this – YOU SHOULD NOT BE SINGLE AND FOUNDING A COMPANY.

    Why?

    • Startup founders are not sexy. They constantly look tired (and are constantly tired). Most entrepreneurs who have been in business for a few years have this disheveled, haggard look to them and wear the same clothes near every day (men and women alike). I have not had my hair cut in about 3 months and my sideburns may be a living creature. I am staring at a female founder in the office who has the classic entrepreneur red, weary eyes with giant bags under them.
    • Your mind will flick over to some business problem on a dime, which makes you a boring date, and you’ll have a hard time keeping relationships going.
    • You likely won’t have much time for other hobbies, so nobody will really be interested in you in the first place. “oh you work 18 hour days, yeah, very exciting”
    • Entrepreneurs are basically living Zombies. They have no emotions. You keep hitting them with stuff and they won’t stay down or react. They just get up mindlessly and keep going forward with arms out. They also maybe eat brainz.
    • When you have sex, you’ll probably get interrupted constantly by emergencies and “important people”
    • You can’t get drunk – you don’t sleep enough for your body to handle it properly, you don’t have time to drink that much, and you probably have an important meeting first thing in the morning. And we all know how hard it is to find a new mate without the social lubricant of drinking.

    I could go on. But generally new relationships take so much time… you have to keep this veneer of your “perfect self” and do things for the other person all the time and spend time with them on weeknights. No, no, no… its an impossible work-life balance.

    Startup relationships + startup jobs = NO.

    It feels like its a lot easier to do a startup with a long standing relationship and understanding partner who will support you emotionally and mentally. Having kids adds to this – all your problems melt away and disappear as you chase your kids around or play some silly game, a wonderful reprieve from the constant stresses and to-dos of your under-resourced, over-leveraged business.

    How about the rest of you? How do you find balancing your startup gig + your current life stage? Other family folks – I’d love to hear how you balance your busy family + busy job in the comments?

  • Teaching Software Engineering and Startups at UofT


    AttributionNoncommercialNo Derivative Works Some rights reserved by SteveGarfield

    About 5 years ago I was asked to teach a 4th year undergrad software engineering course at the University of Toronto. The course had been previously cancelled due to low enrollment; in an era dubbed the “Software Gold Rush” a cancelled course indicated something was wrong…

    Software engineering is difficult to teach
    Students are expected to learn how to avoid mistakes they never made. A great divide results from the instructor talking about concepts suitable for a mature organization when students are all about working their ass off and getting things done the night before. We borrowed several lessons from startups, having been personally involved with two startups over a dozen years. The way startups work are much closer to students ways of doing things. Since launch, course enrolment has tripled and two Y Combinator applications have been submitted based on class projects. Here is what we have learned so far:

    1. Use a startup software process
    Students are all about getting things done the night before; similar to how startups work. Teaching a heavyweight process feels foreign because students haven’t made the mistakes to understand reasons for the overhead!

    2. Change the project every year
    There is nothing more of a turnoff than a make-work project with antiquated technology. Instructors that use the same project over and over are sleepwalking. A new project each year puts the instructor and students on equal footing, solving problems together. Make the class goal to have someone apply to Y Combinator. Discuss the non-technical issues of software such has how people are going to use the product, how are you going to sell it, what is the competition like, what is the business plan. One big class project brings issues into the classroom better resembling the real world. This also allows non-trivial projects to be developed and students to test-out roles (e.g. project management) that would not otherwise exist.

    3. Allow controlled crashes
    Let the students make mistakes. For example, let them avoid source control. A student who looses code because of clobbered checkins will be a lesson learned for the entire class. However, when crashes occur, it is the instructor’s responsibility to manage and fix it. After the mistakes have been made, teach them about process. Keep things light and give them references for their future travels. During lectures on process, tie them into the mistakes that were made. Make process real.

    4. Demo early and often
    Create a culture where the principal deliverable is working software rather than documentation. Use early demos to correct mistakes and give guidance rather than having them worry about their grades.

    5. Instructors should code
    The instructor-student relationship changes dramatically if the instructor contributes code. Everyone becomes a peer instantly. This improve communication and follows the startup philosophy that even managers should write code.

    Next steps
    The course has been well received by the students at UofT. I have much more regular contract with students from this class than the other courses I have taught at UofT and UofW. I am interested in hearing from anyone who is interested in providing continuity to the students; a partner that would provide input on the project at the beginning, stay involved with it during the course, and offer a path forward for interested students ready to commit to a startup.

  • National Survey of Canadian Angel Group Activity

    Snow Angel by Syymza

    Today, the National Angel Capital Organization (NACO) released statistics regarding Canadian Angel group investment activity in the Investment Activity by Canadian Angel Groups: 2010 Report.

    This study looked at the ‘visible’ portion of the Angel investor community – those that are members of Angel groups – as it is almost impossible to survey the entire Angel community. Different countries estimate the visible Angel community represents between 3% (US) and 12% (United Kingdom). Understanding this,  the findings presented below represent only a fraction of the actual Angel investment across Canada. They do, however, provide us with the most accurate snapshot of the activity in the community that we have today.

    Significant findings of this report include:

    • 90% of companies funded by Angel groups in 2010 were new, not follow-on.
    • Angel groups collectively received around 1,850 business plans. 14% were considered in detail, 32% received investment.
    • Angels groups invested CAN$35.3 million in 88 deals; an underestimate as some groups did not report the amount invested.
    • Co-investors were involved in 58% of investments and invested at least a further CAN$29.4 million.
    • Angels invested in a wide range of industries but with a strong technology focus: ICT sector (43%), Life Sciences (18%), and Clean Tech (16%).
    • 74% of funded businesses had revenue in 2010.

    Download a copy of the full report here: http://www.angelinvestor.ca/2010_Investment_Activity_Report.asp

  • Pre-Launch Marketing for Stealthy Startups

    Editor’s note: This is a guest post by serial entrepreneur and marketing executive April Dunford who is currently the head of Enterprise Market Strategy for Huawei. April specializes in brining new products to market including messaging, positioning, market strategy, go-to-market planning and lead generation. She is one of the leading B2B/enterprise marketers in the world and we’re really lucky to be able to share here content with you. Follow her on Twitter @aprildunford or RocketWatcher.com. This post was originally published in January 3, 2010 on RocketWatcher.com.

    CC BY-NC-SA Some rights reserved by Stuck in Customs
    AttributionNoncommercialShare Alike Some rights reserved by Stuck in Customs

    Some products and services don’t have a pre-launch phase.  For companies where building a minimum viable product isn’t a months-long effort, it makes sense to just launch a beta and then start talking about it.  For other companies however, the product might take a bit longer to develop and talking about it before it’s been released in some form could be pointless (because you don’t have a call to action yet), risky (competitors position against you or customers get confused because there aren’t enough details) or both.

    One of the techniques that I’ve used in the past is to engage with the market by talking about the business problem that your product or service is going to solve, without getting into exactly how you plan on solving it.  At IBM we sometimes referred to this as “market preparation”.

    For larger companies this often entails spending a lot of time (and money) with industry analysts and industry leaders sharing your company’s unique point of view on the market and why it is currently being under-served.  If you do this properly you’ll come to a point where your point of view starts to align well with that of the influential folks you’ve been working with.  By the time you launch, these folks will be standing behind you saying that your view of the market is one customers should consider.

    Pre-launch startups generally don’t have the time, clout or cash to change the way Gartner Group thinks about a market but that shouldn’t stop you from taking your message out directly to the market you care about.  There’s never been a better time for startups to get the message out.  Here are some considerations:

    1. Create a clear message about your market point of view – you will need to create a set of messages that clearly illustrate what the unmet need is the in market and why that need has not been met by existing players.  You can go so far as to talk about the characteristics of the needed solution (without getting into the gorey details of exactly how you plan to solve it).
    2. Develop case studies that illustrate the pain you will be solving – Gather a set of real examples of customers you have worked with that have the problem and clearly illustrate the need for a new type of solution on the market.
    3. Spread the word – Launch a blog, write guest posts for other blogs, comment on relevant blog posts,  write articles, write an e-book, speak at conferences and events, open a Twitter account and start sharing information that illustrates your point of view.  There’s no end of ways to get your message out there.  Do your homework and find out where your market hangs out.  What forums do they participate in?  What blogs and newsletters do they read?  Get your message in front of them in the places where they already are.
    4. Engage and gather feedback – Starting a dialog with your potential customers about how you see the market gives you a chance to test your messages and see what resonates and what doesn’t.  You’ve made a set of assumptions (backed up by customer research hopefully), the more folks in the market you can talk to the more you can fine-tune your market story.
    5. Capture where you can – If it makes sense you can start capturing a list of potential beta customers or a mailing list that you can use when you launch.

    Editor’s note: This is a guest post by serial entrepreneur and marketing executive April Dunford who is currently the head of Enterprise Market Strategy for Huawei. April specializes in brining new products to market including messaging, positioning, market strategy, go-to-market planning and lead generation. She is one of the leading B2B/enterprise marketers in the world and we’re really lucky to be able to share here content with you. Follow her on Twitter @aprildunford or RocketWatcher.com. This post was originally published in January 3, 2010 on RocketWatcher.com.

  • Founder Fuel Jam Session in TO

    FounderFuel

    Nothing like the last minute planning around here. Ian Jeffrey (LinkedIn, @ianmtl) from FounderFuel is planning on being in Toronto today (June 27, 2011) and tomorrow (June 28, 2011). He is planning on meeting with startups and founders to share his experiences launching FounderFuel, the mentorship and incubation/acceleration plan for participating startups and to talk about tech startups generally. If you are interested in talking with one of the emerging technology company incubators/accelerators you should come and talk to Ian and learn about what is being offered in Montreal. There is a lot of choice in the marketplace for entrepreneurs, and the best way to see the differences are to connect with the people behind the scenes like Ian and the FounderFuel team. This is a great way to evaluate the program, get introduced to the people, and connect.

    FounderFuel Jam Session

    Date:
    June 28, 2011
    Time:
    7 PM EDT – Presentation & Overview
    8 PM EDT – Startup 1-on-1s and discussion
    Location:
    Camaraderie Coworking, 102 Adelaide Street East, Toronto, ON, Canada [map]
    Register to attend:

    From the looks of Alexa Clark’s (@alexaclark) photo exposition at Camaraderie, it is a great space to host a startup. I know that Matt (@mattskilly) and Aron (@defrex) at Hipsell have their startup offices there. It is a great space for startups requiring a great work space, a central location, and the benefits of an enabled coworking culture.

    Beer Station at Camaraderie - Some rights reserved by LexnGer
    AttributionNoncommercial Some rights reserved by LexnGer

  • The Next 10 Years…

    Editor’s note: This is a guest post by serial entrepreneur and investor Howard Lindzon of StockTwits andSocialLeverage. He was born and raised in Toronto and has a soft spot for his hometown and Canadian entrepreneurs.  You can find this post on Howard’s blog and to stay up to date you can follow him on Twitter @howardlindzon or StockTwits @howardlindzon.

    Nobody knows!

    Nobody knows what the next 10 minutes will be like, let alone the next 10 years.

    It used to be no one cared what the next 10 minutes were going to be like. Twitter has changed that for good at this point.

    What we can do is look back for patterns and try to project them into the future or as we do in the stock market all day, spot patterns that are upon us or emerging.

    It’s a fantastic business to be in.

    William Quigley has a really good post up hypothesizing on the next 10 years in web, tech and VC land. Here is some meat:

    Let’s also keep in mind that public companies are generally a lot less risky than private ones. Less work and lower risk. That is how it used to be for public shareholders, but that era has ended for good. Let me give you some perspective on how much things have changed since the last tech cycle.

    Amazon.com, the world’s largest Internet retailer, went public at a $440 million valuation. Hard to believe, isn’t it? A company worth $90 billion today was worth just over $400 million when it went public in 1997. That skimpy valuation represented less than one times its forward 12 months of revenues, a multiple more closely associated with a corrugated cardboard manufacturer than the most important innovator in retailing in the past 100 years.

    eBay went public at a $650 million valuation, representing less than three times its forward revenues. Amazingly, this valuation was considered adequate even though at the time of its IPO, eBay had already established itself as the pre-eminent auction site on the web. Go back to the earlier part of the 1990s, and it gets even more extreme. Cisco, the most important company in computer networking infrastructure, went public at $225 million, a valuation representing just over one time its annual revenues.

    William is talking my book so I totally agree but I always have one foot out the door. I have been called to task often over my years managing money for being too risk averse.

    I consider myself ‘liquidity averse‘. I don’t mind paying up for the highest momentum public companies for the liquidity they provide and I won’t pay up for start-ups for the liquidity denied. I assume liquidity is a miracle and need to maximize my upside for that risk. STARTUPS ARE HARD! No matter what happens the next 10 years, you need to read this post and remember the miracle of effort needed to make a start-up succeed.

    Not many people I have run across in my 13 years of managing money deploy my strategy or thinking and that emboldens me. I believe the two ends of the investing spectrum are very connected and I am fascinated by the ‘tells’ I see by watching the all-time high list and Angel List.

    While I am not sure of the next 10 minutes, let alone the next 10 years, I am confident in my work that thousands of web entrepreneurs will take notice and follow my strategy in the years ahead.

  • Entrepreneurship as a career path

    F1 in SchoolsI am a huge F1 racing fan. And I was impressed to see a group of Ontario high school students participating in F1 in Schools at the Ontario Science Centre. It is an amazing concentrated effort to bring together partners and create an educational program for the succession of the people that keep Formula 1 teams building new innovations (that in turn inthrall an audience). The program is a multi-disciplinary challenge for students aged 9 to 19 years to design, build and race gas powered balsa wood F1 cars. What a great opportunity to build the next generation of engineers and designers that are interested in 3-D manufacturing, CAD/CAM, computational fluid dynamics, aerodynamics, engineering, etc. It provides a training ground to ensure that Formula 1 teams have an educated talent pool with practical experience and excitement.

    It has started me wondering about the role we play in exciting the next generation of entrepreneurs. I remember reading that career choices are made by Grade 11 (source needed, I think it was in discussion around STEM careers and girls in IT from the Microsoft DigiGirlz program however I  am not able to find the reference). Much of the work and research seems focused on increasing the number of girls that choose Science, Technology, Engineering, and Mathematics.

    In the US there is the work of the Kauffman Foundation that supports entrepreneurship through education, training, policy development and other activities.

    “The Kauffman Foundation is working to further understand the phenomenon of entrepreneurship, to advance entrepreneurship education and training efforts, to promote entrepreneurship-friendly policies, and to better facilitate the commercialization of new technologies by entrepreneurs and others, which have great promise for improving the economic welfare of our nation.”

    I really like how the Kauffman Foundation has divided up their Entrepreneurship Track: Youth Entrepreneurship; Minority Entrepreneurship; Higher Education; Capital, Markets and Economics; Knowledge, Training and Networks and Global Entrepreneurship. This division allows for the creation of programs, grants and offerings that support different strategic needs of each group.

    Communitech

    I am really impressed with the efforts of the team at Communitech. They are doing a great job building the programs, partnerships, and policy work that supports the efforts of Waterloo Region. They have identified the gap left by many of the University focused programs like UW Velocity and Impact, by building and supporting the activities to attract and engage students before they make their post secondary decision. Communitech delivers programs like:

    It is great to see that Waterloo Region really has an institution that is dedicated to supporting technology companies and startups. And is developing the necessary programs to interest kids in making STEM education and career choices. It shouldn’t be a surprise given that UWaterloo has a pioneered cooperative education program that revolutionizes the career experiences available to students.

    There are other programs available that typically focus on post-secondary students We have programs like the:

    I wonder who outside of Communitech (and maybe BCIC on the west coast) working on programs that support the development of entrepreneurship careers. Are there good global examples of entrepreneurship education and engagement for middle school or high school kids? Where can find other examples of what is working?

    Some rights reserved Photo by Terriko
    AttributionNoncommercialShare Alike Some rights reserved by Terriko

    What programs can startups take advantage to find talent possibly with subsidies (yeah I can’t believe I’m saying that) to help develop the next generation of founders. The Government of Canada – Canada Business has a list of Grants, Contributions & Financial Assistance that is a great starting point for getting access.

    What would be beneficial to startups is an agency that actively matches students and funding programs with my current business needs and stage of corporate development. Rather than relying on me to change my focus from product development, customer development, sales and marketing to educational program participation. It would be great if there was an member-driven organization like Communitech that was focused on making these programs accessible to me.

    Maker Faire

    I want to see programs like Maker Faire (check out the mini-Maker Faire on May 7-8, 2011), Ace Canada Student Entrepreneur Competition, Ivey Business Plan Competition, Moot Corporation, Extreme University, etc. The hard part is how to increase startup participation in the growth, development and refinement of the talent and ideology without distracting founders from their missions to build successful businesses.

    Who, how and what should be done to continue to build a culture starting with middle school and high school students to help encourage entrepreneurship as a career path? What do other startups want to see? I’m interested in hearing from John MacRitchie (@jmacritchie), Anand Agarwala (@anandx), Scott Pelton (@spelton), Brian Sharwood (@bsharwood), Lauren Friese (@LaurenFriese), Danny Robinson (@dannyrobinson) and others.

  • CIX Canadian Technology Accelerator

    When I heard about the CIX Technology Accelerator last week I asked the folks at CIX to write a guest post to tell us more about why they decided to partner with a SF based accelerator to put this package together. I’m not sure about the immigration visa issues around this arrangement, but I assume that is taken care of as well? — Jevon


    Canadian Innovation ExchangeThe Canadian Innovation Exchange (CIX) is delighted to announce that, in partnership with DFAIT and the Consulate General in San Francisco, we are launching a new program to support the innovation community in Canada – the CIX Canadian Technology Accelerator.

    The idea is simple. So many emerging Canadian tech companies – from the most early-stage start-ups to more developed players – have told us that they’re eager to develop stronger connections in Silicon Valley, but haven’t been able to find the right opportunity. Well, here it is: the Accelerator will put three qualified Canadian companies in the Plug and Play Tech Center (PnP) in the heart of the Valley for three months, rent paid, starting in June, 2011.

    What makes this program truly unique is that PnP is more than just a fully serviced work space. Selected companies will be working alongside over 150 tech start-ups from more than 20 countries while meeting experienced mentors and advisors who can guide growth and development in the Valley and beyond. The program also offers introductions to local angel networks and VC firms and dedicated access to the Canadian Trade Commissioner Service. Finally, each company will receive a complimentary pass to CIX 2011, taking place next December in Toronto, bringing back the knowledge and experience gained in California and helping to further enrich Canadian connections in the Valley.

    The program is open to any Canadian-based tech company working in Digital Media and Information and Communications Technology. Qualified companies are invited to fill out a brief profile on our website before March 11th, 2011. An expert CIX Selection Committee will review submissions, and the three selected companies will be announced in early April.

    For more info and to enter, head to our website at www.canadianinnovationexchange.com.

  • Coffee, Co-working and Crash Pads in Toronto

    Editors Note: This is the first post by Andrew Peek at Jet Cooper. I love the concept of shared spaces for the collisions of ideas. Albert and I talked about this back at Bubbleshare. I know that it is part of the ethos at the Kontagent offices in SF. And I know it’s part of the culture at Extreme Ventures, where I’m camping while starting up. It reminds me of the “Responsible use of Shared Resources” philosophy from SCS at CMU, basically you’re responsible for not ruining it for everyone else don’t abuse the privilege. The open door policy is a great way to allow for new collisions whether that’s new ideas, new employees, or just new connections. @davidcrow

    Chalks

    If you are an entrepreneur in Toronto, you are probably familiar with the various coffee shops, co-working spaces and wi-fi zones available to you as pseudo-offices. You might even have a pattern of Foursquare check-ins that run like clockwork throughout the week.Steven Johnson refers to spaces like these (noting England’s transition from pubs to coffee houses) as environments where ideas can have sex. At Jet Cooper, we like that.

    While it takes a serious commitment to invent and scale something the size of a CSI (Centre for Social Innovation), it isn’t all that hard to contribute something – even if it’s just a few desks – to the people who might be one good conversation away from a big idea. It’s for that reason that we’ve kept a handful of desks available in our office since day one. Even now, as we plan for our next office furniture re-arrangement, we try to keep in mind the people we haven’t met yet.

    Thinking back on it, it has been a wonderful way of attracting a lot of bright people, which on it’s own is a great way to expose any team to a city’s creative pulse. And realistically, all it cost was a few extra desks and chairs.

    There are no restrictions on who can drop in. You don’t need to be a client, or a partner, or even have a twitter handle. Just stop by and maybe let us know your coming so we can put a beer on your desk.

    Consider this a ringing endorsement for this kind of simple contribution. If you have an office, open the door. The correlation between environments and innovation isn’t a secret and as per usual, more good is gooder.

  • Payroll for startups

    Bank Robber

    The joys of starting a company and setting up the basics, you know things like finding a lawyer, getting articles of incorporation, shareholders agreement, business registration, employment agreements and setting up payroll for employees. It turns out that it has been since 2005 since I thought about the logistics of running payroll in Canada in any detail (BTW if some asks if you want to be in charge of running payroll, the answer is “<expletive /> NO”). The great news is that there is a solution for startups in Canada and it’s inexpensive. Well technically it’s free for companies with <5 employees and only $18/month for >6 employees.

    Payment EvolutionThe company is PaymentEvolution. It’s run by my friend Sam Vassa (@samvassa) and they were recently featured in the Financial Post. Despite the web presence that looks like it was last updated a decade ago, this is a new startup that is up and running and able to help Canadian small businesses with payroll.

    Hallelujah, and it’s inexpensive

    This is a great solution for startups. Basically the deal is there are no fees for the service, however, there are electronic banking fees are passed through to you as a user.

    PaymentEvolution provides no cost payroll processing for smalls businesses with 5 or fewer employees. We’re serious – we don’t want payroll processing costs to encumber the growth of great small businesses. We’re small-business friendly and just want to provide a great service that allows these businesses to focus on what they do best. Like all our plans, we don’t charge extra for updates, the number of pay runs, or silly things like standard reports. We also give these firms the flexibility to pay their employees how they want – traditional cheques, direct deposit or even electronic funds transfer (fees may be incurred by the company’s financial institution).

    This is just what startups need to process payroll and it’s cheap to boot.