We continue the Under the Hood series with a Q&A with Lymbix CTO and Hot Sh!t List member Josh Merchant (@joshmerchantLinkedIn). (Disclosure: I sit on the Board of Directors for Lymbix and helped them with their application/acceptance to the Microsoft BizSpark One program). Lymbix has raised approximately $3.8MM in funding from GrowthWorks and other angel investors. The Lymbix team is 18 people based in Moncton, NB and continues to grow.

Lymbix

Lymbix Sentiment Intelligence measures the tone and emotional impact of words in everyday written language. As a global leader in sentiment analysis technology, applications powered by Lymbix provide a more definitive look at specific emotions like friendliness, enjoyment, amusement, contentment, sadness, anger, fear, and shame and give insight to the true meaning of what brings positive and negative results. In short, Lymbix delivers incredibly fast sentiment analysis and can identify the real emotion in any domain of text exposing clarity and confidence on an individual message level.

Product Breakdown

An engine that analyzes emotion in text. Simply put, we’ve built an emotional spell check that we call ToneCheck, which looks into the emotions written in email communications, lifting out how someone may feel – or rather, the “tone”, they’ll perceive when they read the message. This technology is built off our core engine, which is available as an API for partners to understand more user expression style sentiment analysis. As a business, Lymbix is building better business communication tools and reporting for companies to analyze communication in sales, human resources, customer support. Think of it like an insurance package fitting nicely into your risk management profile.

How the Technology works

We use an array of techniques to training our systems to better understand the emotional interactions in common day communication. We analyze streams of data, whether it be from Facebook, Twitter, emails, blogs, or the news, and dissect elements of “emotive context”, meaning a snippet of text that can cause an emotional arousal in an individual. This is our linguistics component of our system. We believe in human powered insight, so we then take a slew of emotive context, and blast it through our own crowd-sourced network called ToneADay.com. We have just shy of 10k raters who give us their opinions of both “real” and “fake” emotive context to gauge the levels of emotion that can occur based on parameters such as frequencies, demographics, 8 primary emotions and so forth. We then build emotional lexicons which give us the power to test any incoming queries to detect emotional relevancy. We then apply our “emotional reaction algorithms” to come up with how different emotions play a part in determining the degrees of emotion in the query. When the system ever detects something that it has never heard of it, it quickly takes action and tries to learn it. In effect, the system gets smarter the more that its used.

Technical Details

We’re hosted on Rackspace, as well as Azure. With Rackspace we have a cloud and private hosted solution giving us the elastic scalability that we need to service this type of NLP on a massive scale. We’re a nice blend of Ruby, Java, and C#. Sounds gross, but for us, the solution fits quite nicely.

For horizontal scaling efforts (our API, and freemium ToneCheck users) we use multiple nodes replicated as our “workers”, sitting on Redhat using served by apache. Sinatra is used to handle the REST calls (essentially the wrapper) harnessing java – linking through sockets to provide really fast linguistic calculations on requests. We persist resident data through redis, and pull sync jobs to migrate up to the master datastore. These ‘nodes’ effectively are spawned up and down as we predict traffic congestion. We take full advantage of Rackspace load balancers to handle distribution of these requests. We monitor this bad boy with CloudKick – probably the best monitoring and performance analytics tool we’ve come across.

For ToneCheck (pro/business), we’re deployed on Azure. Works well for our business customers to give better piece of mind of no data persistence, enterprise integration (on a domain level), and security. Essentially we’ve built a RESTful service on a Web role that wraps the same Java logic as in our cloud. We have worker roles to do some of the heavy lifting, but we try to keep things in the Web Role for high priority, super fast response times.

As our system is ever evolving, in terms of understanding new emotive context, we use our own sync services to deploy lexicons across all our worker nodes (Azure & Rackspace). To build the lexicons, we need massive power, so we use a big hypervisor that performs all our “secret sauce” algorithms from our datastore. We have 3 layers of databases in our system, which seems crazy, but each has a niche. MySQL is basic user data for our apps and all the boring data to keep. Mongo is our dynamic datastore thats used for all our linguistic data and everything we need to build our lexicons, which is sharded for optimization and running our Map Reduce jobs. We also keep a Hadoop datastore for all the new language we’re processing for reporting and running massive queries on for some of our “in the making” linguistic calculations/improvements.

Our development practises are pretty neat. We use continuous integration to achieve higher standards of quality for all our apps. We’re a little old school, still using some SVN repos to manage our data (Beanstalk rocks), but now we’re starting to migrate more to the Git. The team is divided up into sub teams, which are all managed independently, and constantly on two week (global) dev cycles. We do all our project management through Pivotal Tracker, and have wicked fun demo days at the end of every cycle showcasing each teams improvements and brainiac innovations to everyone (while consuming beer and pizza). Our team is very passionate about the problem we’re trying to solve, technology, and code. We’re split about 50/50 Android & iPhone, so that pretty much says it all!

If you’re running a mail client (Outlook or GMail or Lotus Notes) you can try ToneCheck and to minimize the “cost” of dealing with misunderstandings.


Interested in being profiled in our Under the Hood series, we are actively looking for Canadian startups building “interesting” technologies and solving “interesting” problems. Contact me by completing your initial Under the Hood submission.

This will be all over the news today so I won’t try to keep pace with the commentary, but the news that Salesforce has agreed to acquire Radian6 a Fredericton, New Brunswick company founded in 2006 ,is out.

I won’t try to keep pace with then endless coverage that will be happening, but here are some thoughts on what is cool about this:

  • Ride the Winners: There is no doubt that Radian6 has had a lot of offers over the years. Competitors such as Techrigy, ScoutLabs and Sysomos likely sold out WAY too early. This is something Roger Chabra has been saying to me for a while: When something is working, stick with it.
  • Canadian made: Radian6 was built and financed entirely in Canada by SummerhillBDC and Brightspark. They funded Radian6 early and they stuck with it. That’s a great and all too rare story.
  • New Brunswick made: When I tell many of you that I have moved to Halifax I sometimes get questions like “is there any startup community there?” or “Is there any talent there?” — Now I have an easy answer to what I have already found out: This region is brimming with talent and with the right leadership great things can be accomplished.

Congrats to the entire Radian6 team as well as Summerhill, BDC and Brightspark. This is big news and a great story.

StartupDrinks LogoFriendly neighbourhood reminder that tomorrow, June 30, 2010, is StartupDrinks (well tonight in Saskatoon & Regina). On June 30, 2010 you can join entrepretreneurs in:

Jevon is going to be hanging out in Halifax. Ray is going to be in Montreal. Jonas, Bryan and I are planning on being at Grace O’Malleys (aka Granuaile), 14 Duncan St, Toronto, ON.

It’s a great opportunity to get out of the office. To be social. To connect with others that are struggling building companies like you. What will we be talking about? We’ll be talking about “How to grow your traffic from 1k to 35k on $0” and other things. What do you want to talk about?

Here’s

Backbone Magazine announced their “PICK 20 round of Canada’s leading Web 2.0 pioneers” that includes 4 companies form our list of web startups to watch, it’s a great list of Canadian technology companies and startups.

The List

  1. FreshBooks, Toronto
  2. Myca Health, Quebec City
  3. CoveritLive, Toronto
  4. Viigo, Toronto
  5. Radian6, Fredericton
  6. Filemobile, Toronto
  7. BoardSuite, Toronto
  8. NowPublic, Vancouver
  9. Tungle, Montreal
  10. HootSuite, Vancouver
  11. ThoughtFarmer, Vancouver
  12. AfterCAD Online, Vancouver
  13. TeamPages, Vancouver
  14. The Manufacturing Innovation Network, Kitchener
  15. Well.ca, Guelph
  16. Clarity Accounting, Vancouver
  17. Voices.com, London
  18. Taglocity, Vancouver
  19. PollStream, Toronto
  20. Pixton, Vancouver

The majority of the startups on the PICK20 list are in Vancouver (8) and Toronto (5). It’s a great list of Canadian startups.

I will be speaking at the Canadian Venture Capital Association’s upcoming professional development day on October 15th. I will be on a panel with Rob Lane, from Overlay.TV and Maggie Fox from Social Media Group.

Our session description is

?Going global” is no longer an option for many companies. It is a necessity. This session will examine issues and strategies in building international networks that will lead to business opportunities and enhanced returns. Learn how to link into international networks of customers, partners, acquirers and investors to better position your companies for global success. The role that social technologies can play in fostering these global networks will also be discussed.

Other sessions include “THE BIG PICTURE ? KEY STRATEGIES FOR CREATING ESSENTIAL INTERNATIONAL NETWORKS” with Jennifer Brooy,Vice President, EDC Equity and Rajiv Pancholy, Chairman and CEO, TenXC Wireless as well as “RELATIONSHIPS WITH GLOBAL SYNDICATE PARTNERS AND ACQUIRERS ? THE VIEW FROM HOME AND ABROAD

It looks like a good day and if it is typical of CVCA events, the biggest value will be in having a chance to hang out with some of the other attendees who tend to be other startups (the smart ones go to CVCA events when they can afford them) and funders.

The half-day event is $299 for non-CVCA members if you attend in-person in Toronto, and $70 if you watch it from one of the simulcast locations in Vancouver, Calgary, Winnipeg, Ottawa, Montreal, Quebec City, Fredricton or Halifax.

I am heading to Moncton next week to hang out and give a quick talk on the state of Venture Capital in Canada and what that means for Startups. The meetup is on Tuesday, June 17, 2008 at 6:30 PM.

I am looking forward to meeting as many startups as I can while I am in Moncton, so if you are going to be around, please drop me a line. I will be getting in early in the day on June 17th.

I will have some new data in hand about what is going on with VC and Angel financing in Canada, where startups fit in to the picture and my argument for why Social Media is the savior of us all.

See you in Moncton!

Just how bad ass of an entrepreneur are you? Will you kick your friends and co-founders to the curb when the time comes? When the money is about to roll in, will you put the rub on your original startup buddies? Should we all be watching our back now before things get too hot?

According to Yves Doucet, former Vice President and partner in Spielo, a Moncton-based VLT producer, he was stabbed in the back by his partner, John Manship, when their company we on the brink of going from $5 a share to $100.

Yves and another colleague are now launching a lawsuit for just over $5million that they say they are owed, and another $10 million is losses. The story has been covered a bit by the CBC and TimesTranscript.

Spielo was, in 1991, just a small startup based in New Brunswick fighting for 60-machine contracts, run by a couple of guys who were dreaming of the big time. The Big Time came when the company was sold to GTech for $180million. In the end though, something went wrong.

It is impossible to know what really happened, and the court hasn’t made a ruling yet, but the question for me is: How can something so good go so bad?

Rick Segal is going on tour. The idea? Get the message out there about what he, and other VCs, are looking for when they evaluate new opportunities, and help entrepreneurs get a better understanding of what VCs try to do. He will also be providing some useful tools, like sample term sheets.

This comes as there has been more publicity about the performance of private Venture Capital funds in Canada, and a significant amount of discussion about whether or not it is a good idea to start a company in Canada.

There is definitely a perception out there of VCs in ivory towers who expect everything to come to them. This is in stark contrast to the attitude that most entrepreneurs encounter when in the valley or elsewhere with a strong VC ecosystem. You get used to seeing VCs out at practically every community event, listening closely and watching as entrepreneurs grow. Those traits are rare here. As someone said to me recently “In any other business, if you complained you had no customers, everyone would tell you you are an idiot. We need to get out there an hustle, we need to find those customers.”

What Rick is doing is an example of how you can get out of your tower and start mingling with the plebs. The fact is, Canadian VCs aren’t poaching all sorts of great deals from other places, instead they rely on Canada to produce investible startups, and the best way to recognize that is to get involved and to take a long-term view. Venture Capital is only one piece of a big picture, but it is critical that VCs begin to mature along with our Angels and Entrepreneurs.

There has been a significant amount of anti-VC sentiment in the Canadian startup community and it is probably more related to a feeling of VCs being an unknown than anything else.

Here are the dates that are set up so far, starting on the east coast

  • April 14th Morning – Halifax NS
  • April 14th Evening – Moncton NB
  • April 15th Evening – St John’s NF

If you want to register, email rick at jlaventures dot com with “VC Roundtable” in the subject.

WalkingSpree.com, a Calgary, Alberta based startup run by MeshEast editor Lisa has just signed a deal to run a pilot project in a major hospital

” . . .selected patients under the care of local Calgary West Central PCN family doctors will be given USB Pocket Pedometers from WalkingSpree.com to track and automatically upload their walking data to the WalkingSpree website. The patients can add other activities such as swimming or cycling to get a full picture of the calories burned. Patients can also track calories consumed with the online food and nutrition tracker to balance their daily “energy in-energy out” equation, thereby assisting with weight loss and weight-loss maintenance. These patients will receive support from WalkingSpree’s online Fitness and Nutritional Coaches.”

WalkingSpree provides a USB pedometer which can upload data to the WalkingSpree website, which provides coaching and tracking features. It seems to be a lot like NikePlus, but with more value added features (and I assume upsell opportunities).

Nice work on getting this pilot together, I am looking forward to hearing the results.

picture-2.pngMeshEast is the latest entrant on to the Canadian Startup blog scene. I was excited to get an email from Lisa Rousseau, who is also working on her own startup, to see that the east coast would finally have a local startup blog. Lisa is going to have some work to do in finding and profiling those elusive east-coast startups, but my guess is that she will find more than enough to get started in her home province of New Brunswick.

So please, head over to MeshEast and subscribe. We have been covering some of the bigger happenings on the east coast, but there are always a lot of things we just can’t cover. We are working on our own profile of what is going on in Atlantic Canada, and so far I have been excited about what I have seen.

We have been trying to do as much as we can to encourage local blogs that will cover smaller regions in more detail. Montreal is the luckiest with MontrealTechWatch, which is run by Heri (who might be the hardest working blogger in Canada these days), and Ottawa has StartupOttawa, which is really starting to pick up steam. There are some gaps to fill, so if you are passionate about startups then it is time to get off your butt and step up to the place. I can think of dozens of local blogs I would love to see: Waterloo, Calgary, Vancouver, Victoria, and the Prairies all come to mind as the biggest gaps out there.

So get started, and get in touch. We want to help!


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