Riding the rails to Waterloo

Some rights reserved by Danielle Scott

Why isn’t there a commuter train from Toronto to Waterloo? Ok, you might ask actually ask why Toronto doesn’t have a train from downtown to the airport but let’s leave that for a conversation with more educated politicians and policy wonks.

I’ve spent this morning with startups in Waterloo, hanging out with people at the Communitech Hub, UW Velocity, and a crazy number of super awesome startups (TribeHR, vidyard, 17 muscles, Footloose Games, Willet, Cyborg Trading Systems, Will PWN 4 Food and others). I left Toronto at 6:15am to avoid traffic and be in Waterloo before 8am for my first meeting. The drive was approximately 116 km and took approximately 90 minutes (arrived at 7:52am). I couldn’t help think about why there isn’t a train. The distance is just a little more than SF to San Jose (~74km) and double SF to Palo Alto (~51.5km). I can get a Caltrain from San Francisco to Palo Alto or San Jose.

If the assumption is that UWaterloo is a top ranking university (possibly my alumni delusions that cause me to overlook UWaterloo’s non-placement on Times Higher Education rankings). And with more startups like Kik raising money with powerhouses like OpenText, RIM, MKS and Christie Digital. There are less reason for students to have to leave the reason. It makes it more attractive to rent an apartment for the year and stay in Waterloo to manage your costs on your coop program.

Maybe the argument is that the capital is better spent on more programs for entrepreneurs or road infrastructure. But it seems that one of the greatest assets to the Toronto startup community (UW Coop students and graduates) are disconnected by public transportation. I wonder what my UW alumni brethren like Farhan Thawar (@fnthawar), John Green (@johnphilipgreen), Amar Varma (@extremevp), Brydon Gillis (@brydon), Ali Asaria (@aliasaria), Razor Suleman (@iloverewards), Kunal Gupta (@kunalfrompolar) think about the need for better connections between Waterloo (assuming a stop in Guelph) and Toronto.

RIM acquires Tungle

Congratulations to Marc and the Tungle team. Tungle announced their acquisition by RIM. Tungle had previously raised $1.5M from JLA, Desjardin, and angels and $5M from Commonweatlth. This is a great addition for the RIM team to continue to build out an application suite for the mobile office. Mark MacLeod (@startupcfo) provides additional thoughts and comments on the acquisition:

Clear Problem

Tungle just made sense. Finding a time to meet is a huge pain. This may not be the sexiest, flashiest market, but it is huge. Every business person feels the pain.

Pivots

We didn’t have this term back in the early days, but Tungle sure went through some pivots. When I joined it was a peer to peer client a la Skype. And it was S-L-O-W. The service today bears little resemblance to that early product.

Data-driven

All startups but especially SaaS startups should be data driven. Tungle was no exception to this. We even built our own custom system (known as Knudderforce) and tracked daily, weekly and monthly stats. Those stats triggered many actions, automated outreaches, etc.

Luck

All good outcomes have an element of luck. I am sure there are many examples in Tungle’s case, but the one that stands out for me is closing our Series A funding in September 2008 just as Lehman Brothers crashed and the markets started tanking. If we had been only a few weeks later we might have had a much tougher time closing the round.

Focus, focus, focus

I’ve seen many teams get distracted as they grow. The CEO is off attending conferences, the company moves from market to market, etc. Tungle was laser focused on solving its’ users’ scheduling needs. At one point we were doing usability sessions every day. We reached out to every new user. We just stayed focused.

Platform

When we first were getting started, investors wondered if this was a feature vs. a product. Fast forward a few years and it is on its way to being a full fledged scheduling platform with APIs for other companies to use.

Strategic engagement

An ideal startup for me is one that can develop conversations with potential strategic partners as a natural part of its goto market strategy. This presumes you are building something that is important to the big players and assumes that you have a CEO capable of establishing and building those relationships. This was definitely the case with Tungle and this announcement is just a logical outcome of this reality.

The icing on the cake for me is that this is an all-Canadian deal. The Tungle team will be staying in Canada and continuing to make things happen.

Shared calendaring continues to be a difficult problem as you move to the edge of an organization. Just think about how difficult it is to see availability and schedules of people who are not on your GApps domain or your Exchange Server. Tungle gives RIM a leg up in having tooling like BBM and email and now calendaring that blurs the edge of the organization.

Going over the falls together in barrel

Editor’s Note: This post was written by Jesse Rodgers. Jesse is the CEO of TribeHR, the Director of the VeloCity Residence at the University of Waterloo, organizer of StartupCamp in Waterloo and an allround great guy.

Jesse stopped by my offices in Toronto to chat about sales, marketing and PR (convenient of @jevon to write about the same topic recently). Jessementioned that the TribeHR team had left Waterloo and were holed up in a hotel room in Niagara Falls. They were living together, working together, writing code and being more productive than they could with the distractions of family, friends and the strong community in Waterloo. I was amazed at the commitment of the team to step away from their personal lives and get the next version of TribeHR built before they head to SxSW for the Small Business Party. You can read the update or watch the caffeine and other stimulant-driven vacation summary. There’s lots startups can learn about improving productivity by going on vacation together.

Barrel to go over the Falls

Over the month of February the TribeHR team has been taking advantage of low hotel prices in Niagara Falls and turned a suite at the Hilton into our office (we were at the Marriott, but the Hilton is $20 less a night and has king size beds). The goal for this little retreat to the romantic city of Niagara Falls: get TribeHR polished off, implement our new user interface, get our go to market strategy figured out, and start executing on all cylinders.

If it works, we will be a stronger team (who can put up with each others snoring) and will have made some awesome progress. If it fails, then we know our team isn’t as good as we thought.

Other cities we thought about were Montreal and Toronto. Toronto would have far too many distractions for us so we had settled on Montreal (we would have loved to work out of the Knotman house). The problem there was that those of us with young kids would be too far away to head home if we had to. So here we are in Niagara Falls, in a tiny hotel suite, working our asses off.

In terms of work hours put in, when you do this, it’s pretty crazy. While in a hotel room, assuming you ignore the casino across the road, you work from around 8am to 12am, take out eating time, it is around 14 hrs or so of ‘work’ per person. It is a crazy amount of focus and the results are great, at first. Once all the easy stuff is taken on, we then have to address the bigger problems and we start to slow down. But we can work through it and it’s a heck of a lot easier when you have completely removed yourself from your routine.

At the end of week 2 we have learned the following:

It takes 5 min to turn a hotel room into an office but the wifi sucks, the tv can’t use a PS3, and anything but pizza is way overpriced.
Not having kids wake you up at 6am doesn’t mean you won’t be awake at 6am.
The US side of the falls gets a rainbow in the afternoon.
The Starbucks coffee is never hot, Tim Horton’s wins
As a team we can take each others grumpy moods and swear it out until everyone is laughing again.
Hotel chairs spin really well, and provide a great distraction near the end of the day

Why have we done this? Because we are still a very much a bootstrapped startup with plenty of distractions (wives, kids, other commitments) in Waterloo, and if we are going to get anything done while things are still so early, we have to immerse ourselves and get to work. It’s uncomfortable and exhausting, but it’s productive, energizing and we love it.