Search results for: “communitylend”

  • John Philip Green joins CommunityLend

    Big news in the Toronto startup community today. John Philip Green, one of the founders of LearnHub.com, has joined CommunityLend.com as CTO. We have covered CommunityLend in the past as they have worked around regulatory hurdles to become the first provider of peer-to-peer financing in Canada. They have raised over $2.5 million to date.

    John has helped to advise CommunityLend from the very beginning, so this seems like a natural fit. I am a bit disappointed that he won’t be working on a new startup of his own, but it is great to see him end up at such a high-potential Toronto startup.

    Savvica, which John founded with his wife Malgosia, has been growing quickly and is back primarily by  Shantanu Prakash, the founder of Educomp Solutions. John and Malgosia have developed significant operations in India, with over 60 employees there at present, and a headquarters in Toronto. Savvica and its sister sites have evolved significantly in the last few years and now includes LearnhubJumboTests, Nuvvo, Studyplaces and EduIgnite.

    CommunityLend, who announced John’s joining today, is the only provider of peer-to-peer financing in Canada.

  • Communitylend goes live

    After a few years and a handful of blog posts, I am at a loss for words other than to say I am glad things are finally rolling and CommunityLend is open for business in Ontario (for accredited investors).

    Similar services have both thrived and suffered in the United States in the last 2 years. They have been occasionally targeted by regulators. Prosper.com for example is currently in a “quiet period“,

    CommunityLend has taken a much different tact here in Canada however, and they chose to work with regulators rather than taking a litigious approach. In the end the hope is that this will mean a more stable and compliant environment for peer-to-peer lending in Canada.

  • CommunityLend Raises $2.5M

    Community LendSocial lending is coming to Canada. Founded more than a year ago by Michael Garrity and Colin Henderson and following the successful model of Zopa in the UK and Prosper in the U.S., CommunityLend will be launching a P2P lending service in Canada.

    P2P lending works like this. Borrowers provide their details to CommunityLend, including a public profile and reason for the loan. CommunityLend performs a credit check on the borrowers and then posts the borrower’s story, profile and credit rating to a community of prospective lenders/investors in an eBay-like interface. Investors then bid on pieces of the loan (each loan is typically divided up among many lenders which mitigates everyone’s risk). After the bidding process the loan is then issued at the minimum rate required to satisfy enough lenders to fund the full amount.

    The company will be offering, at first, one standard type of loan – 3 years, fixed rates to a maximum of 25k. Judging by other services like Prosper.com, social lending seems to fill a gap in the product offering of a traditional bank. Rates are typically in the 10-18% range, which fits above bank rates for unsecured lines of credit and below that of high interest credit cards. CommunityLend makes money by charging a small spread to both the borrower and the lender.

    With the current “sub-prime” troubles in global credit markets, the timing may be perfect for CommunityLend. Banks in Canada and the US have been tightening their credit policies making borrowing more difficult, especially for marginal creditors. The transparent, market-based P2P model may well prove to be a solution than can judge and price loans in this segment better than the big institutions.

    In addition to the funding announcement (of mostly non-Canadian investment dollars btw), CommunityLend is also announcing a new slate of directors including Barry Campbell, former MP and Secretary to the Minister of Finance and Jim Jones CEO of GMAC Residential Capital [100B lending portfolio].

    Congratulations to the team for reaching this milestone. We look forward to providing a more thorough review of the lending service once it goes live (we’re told early to mid next year).

    For the time being you can get more info at the company’s newly launched website: CommunityLend.com.

  • Don’t Panic: A Hitchhiker’s Guide to Toronto Startup Ecosystem

    Rob Go published his Hitchhiker’s Guide to the Boston Tech Community, and it got me thinking about how much of the Toronto Tech scene has changed over the years. This is a my view of the players and contributors in the Toronto Startup Ecosystem. It is not a comprehensive list. It’s designed to be an overview. If you want more detail, seek it out.

    The first rule of this community is:

    ” Create more value than you capture.” – Tim O’Reilly

    If you can’t figure out how to add value, then you are doing it wrong. It probably means that you’re ruining the experience for someone else.

    Monthly/Semi-Regular Events

    • Mentor Mondays – hosted by Howard Gwin of OMERS Ventures. Probably the best networking event for funded and looking to get funded startups. Includes Howard’s network of CEOs, founders, consultants and other crazies that can provide real world advice. This is the best CEO event in the city if you can get an invite.
    • Founders & Funders – An invite only event hosted semi-regularly by use here at StartupNorth. It’s designed to bring together the people the start high potential growth companies and the people that fund them. It is invite only, requirements vary if you are a founder or a funder. For funders, we like to see 2 investments of >$100k in the past 12 months, and we try to vette founders to be fundable (and we’re often wrong)
    • SproutUpTO – Hosted by Jon Spencely and the Sprouter crew. Roughly monthly meetup that follows the startup demos and a big name keynote speaker. Event is approximately $12 to attend. Has hosted big names like: Daniel Burka, Tony Conrad, Matt Meeker, Sean Ellis, and others. Many of the keynote speakers and the startups are “high potential growth technology companies” but I find that  the audience and the networking is mixed.
    • TechTalksTO – Great semi-regular series of talks by technologists for technologists.
    • StartupGrind TO – Semi-regular access to startup speakers including Paul Singh, Eric Migicovsky, and others
    • Ladies Learning Code – focused on teaching development skills to newbies (of all genders).
    • DevTO – monthly developer educational events. Broad focus on industry trends and specific development environments.
    • Creative Mornings TO – Monthly breakfast series for creative types. Tends to aim more agency side but a great show.
    • Pecha Kucha TO – Pecha Kucha is the format that started it all. 20 slides x 20 seconds. It’s another event that tends to be aimed more at designers and agency folks. Presentations are always interesting.
    • Third Tuesday Toronto – Primarily for communications professionals (think PR and media types) with a focus on digital media and emerging best practices.
    • DemoCamp – I have hosted DemoCamps since 2005. They started as a way for entrepreneurs, developers and designers to get together and share what they’ve been working on. They grew to >500 person networking events. There are currently no plans to host anymore.

    Smaller Events & Meetups

    • Toronto Ruby Brigade – Great learning series primarily aimed at beginners, but becoming more advanced, includes book club series, hack nights at Influitive, and lessons/lectures about specifics of building and craft in Ruby.
    • Rails Pub Nite – Totally a social event. It’s a great way to figure out who is hiring in the Ruby scene and to meet others using Ruby. Hosted by the Unspace crew at the Rhino on Queen Street West.
    • Django/Python Toronto – This is a set of crazy Python devs. It is also not for the “recruiters” or bullshit artists. Go if you are using or considering Python on a project and you want to talk to the best. And don’t be a douchebag.
    • HTML5 Web App Developers – This is an educational event. It is broadly HTML5 and web app technologies. But the sessions are well put together and cover the craft. Good beginner through advanced.
    • Hacks/Hackers Toronto – The intersection of journalists and technologists. This is a very strong community. But it is really focused on the intersection of journalism and new tech.
    • StartupDrinks Toronto – A monthly social for entrepreneurs. Most recently hosted at Hotel Ocho on Spadina between Queen & Dundas. It’s noisy. I cofounded the event, though I don’t attend very often anymore. I don’t find that I benefit from the networking. And if I really wanted to drink with friends, well I do that.
    • NerdLearn – I have never been. It is hosted by The Working Group and Dessy Daskalov who I think is amazing. I’m still bummed out that she turned down my job offer.
    • TiE Toronto – Interesting with Haroon Mirza as part of the organization committee. Great mentoring group with startups like Cognovision and Verold participating the in the recent past.
    • MobileStartupsTO
    • LeanCoffeeTO – These happen regularly, every Tuesday at 8am. I don’t find a lot of value in the discussions. So maybe I’m doing it wrong. If you are new to the lean methodology, or you just want to talk with other entrepreneurs that are using lean.
    • Hadoop User Group  – Relatively new event. People look awesome. Focused on Hadoop, Map/Reduce and data science. I think it’s going to be good.
    • GeekGirlsToronto – Great networking group aimed at connected geek girls, tech savvy women in the GTA. Events cover everything from women founders to Arduino.

    Annual Events & Conferences

    • Canadian Innovation eXchange (CIX) – This i An event hosted by Achilles Media, has proved to be a launching ground for some of Toronto’s best acquisitions.
    • HoHoTO – Annual holiday party. It is a must attend event.
    • TiE Quest – hosted annually. $50k non-dilutive prize. Hosted at MaRS. Previous winners include Cognovision.
    • TEDxToronto – Annual event using the TEDx. Great community production.
    • Mesh – Could be described as the grand daddy of Toronto 2.0 events. Usually happens in the spring. Mesh is a 2 day event that focuses on how the web is evolving and affecting every part of our lives: government, policy, marketing, entertainment, etc. Produced by Mark Evans, Rob Hyndman, Stuart MacDonald, Mathew Ingram and Michael McDermett.
    • OCE Discovery – Event aimed at government support of local innovation. I have paid for a ticket in the past, particularly when they’ve had keynote speakers I wanted to hear. But generally this is an event for those connected with OCE. Next one will be May 27 & 28, 2013. Strong focus on companies that have been supported by OCE with strong manufacturing, ICT, and healthcare showing.
    • ThroneOfJS – was the latest in a series on Ruby and Javascript events hosted by the Unspace crew. Prior to Throne of JS, the Unspace crew hosted Future Ruby. These are great local events with world class talent.
    • AccelerateTO – hosted by the C100. Great social event. Keynote at the last one was from Google Canada, interesting but not stellar.
    • AndroidTO – hosted by the BNOTIONS crew. 3rd year. Focused on education around mobile development.

    Online Resources and Newsletters

    Recruiting Resources

    University, Government & Not-for-Profit Resources

    Coworking Spaces and Accelerators

    Entrepreneurial Design & Development Firms

    Canadian Investors

    Places to Hang

    • Sense Appeal – Great coffee. Lots of folks from Mozilla Toronto, ChickAdvisor, Nascent Digital and others.
    • Dark Horse on Spadina – It’s downstairs from the Centre for Social Innovation. Lots of
    • Jimmy’s Coffee – Very likely to run in to Rocketr, Jet Cooper, EndLoop Studios, Guardly or Massive Damage.
    • HackLab.to – great hacker space in Kennsington Market, and you’ll see something that will blow your mind, guaranteed. More anarchist hacker than startup entrepreneur. But its an amazing collective of people.

    Journalists and News

    Looking for Offices Space?

    • I used Jay Littlejohn at Cushman & Wakefield. He helped Influitive and others.
    • Centre for Social Innovation with 215 Spadina and the Annex has great brick and beam space.
    • BNOTIONS has a large space in St. Lawrence Market. They are actively looking for sublet tenants.
    • Companies are located all around Toronto.
      • Wave Accounting is near Queen & Carlaw
      • Wattpad is near Yonge & Sheppard
      • Top Hat Monocle is near Yonge & College
      • There is a big cluster near Queen & Spadina: Influitive, Guardly, Extreme Startups, Endloop Studios, Jet Cooper, Rocketr, Unspace, BuzzData, Big Bang Technology, The Working Group, and more.
      • Facebook Canada is near Yonge & Eglinton
      • Dayforce is located near Yonge & York Mills
      • Xtreme Labs is near Yonge & King St.

    Scaling Companies to Watch (probably hiring)

    Some to Follow

    Entrepreneurs, Thought Leaders, Gadflys and Others

    • April Dunford  – April is probably the best marketer in Canada. If you are a startup and you are marketing, thinking about marketing or just want to learn about marketing go read her stuff. She’s the BEST.
    • John Philip Green  – John is an EiR at Hedgewood. In the past he was the CTO at CommunityLend/FinanceIt.ca. He was also the founder of LearnHub. His style is second to none.
    • Zak Homuth  – Founder of YC alumni Upverter.
    • Farhan Thawar  – VP Engineering at Xtreme Labs. Absolutely amazing. I think he’s Hot Shit.
    • Jonas Brandon  – My friend and cofounder of StartupNorth. He’s been in at least 2 deals I wish I listened to him on.
    • Amar Varma  – Founder of Xtreme Labs, Extreme Venture Partners, hustler extraordinaire.
    • John Ruffolo  – Runs OMERS Ventures, previously at Deloitte & Touche. Connected at all levels.
    • Howard Gwin  – I’ve referred to Howard as the best VC in Canada. He has the midas touch.
    • Matt Golden  – New fund. Making waves. He’s going to go far.
    • Mark Organ  – Founder of Influitive. Just raised a massive round. Previously founder of Eloqua.
    • Mike Beltzner  – Director of Product at Wattpad. Previous ran Firefox at Mozilla.
    • Mark Surman  – Director of Mozilla Foundation. Unbelievably forward thinking in technology, community and family.
    • Scott Pelton  – I think Scott had the best IRR of any Canadian VC. He’s kicking off Round13. Someone to watch once the fund is closed.
    • Sandy Scott – Partner at Tandem Expansion Capital. Time in Boston and Silicon Valley. HBS. Very smart.
    • Sue McGill – Executive Director of JoltCo accelerator at MaRS.
    • Krista Jones – Practice Lead for ICT or ICE at MaRS
    • Andrew Peek – Founder of Rocketr, previously at Freshbooks.
    • Andy Yang  – Andy runs Extreme Startups. They had a small but amazing first class.
    • Satish Kanwar  – Founder at Jet Cooper. Founder at Lean Coffee TO.
    • Chris Eben  – Partner at The Working Group. Organizer of StartupWeekend.
    • Derek Smyth  – Partner at OMERS Ventures. Doing amazing deals. He’s the work horse.
    • Roger Chabra  – Partner at Rho Ventures. Dividing time between Montreal, Toronto, SF, NYC, and other places. New fund. Very stylish.
    • Sunil Sharma – Connector at Extreme Startups. Connected to more people than are in Canada.
    • Allen Lau  – Founder and CEO of Wattpad. Big vision. Just raised from Khosla Ventures, Union Square and GoldenVP.
    • Kirk Simpson  – Founder and CEO of Wave Accounting. Big raise from CRV, Social+Capital, and OMERS.
    • James Lochrie  – Product lead and founder at Wave Accounting.
    • Adam Goucher  – Principal at Element34. Focused on Q&A and testing. Wrote Beautiful Testing.
    • Greg Wilson  – Founder of Software Carpentry. Loves the Python. Former CS prof at UofT. Wrote Beautiful Code.
    • Heather Payne  – Founder of HackerYou and Ladies Learning Code.
    • Kunal Gupta  – Founder of Polar Mobile and Impact at UW.
    • Joseph Puopolo  – Founder of Printchomp. Previously at StickerYou
    • Mark McQueen  – President & CEO of Wellington Financial, Chair of the Toronto Port Authority. Great blog focused on Canadian growth captial.
    • Daniel Debow  – Founder of Rypple. Part of the Workbrain diaspora.
    • David Ossip  – Founder of Dayforce, Workbrain and other ventures.
    • Richard Reiner  – Angel investor and operator. Founded security firm Assurent. Sold eNomaly.
    • Saul Colt  – The Smartest Man in the World. A great PR/media hacker. Expert at word of mouth and social media.
    • Amber MacArthur  – Entrepreneur, television host, podcaster. Writes for Fast Company.
    • Leila Boujnane  – Founder of Idee and TinEye. Often host of DemoCamp, GeekGirlToronto and other events. Wickedly smart.
    • Jesse Rodgers – Founder of TribeHR, former director of UW Velocity, now running Rotman Venture Lab. Strong insights in to incubator metrics.
    • Dan Servos – CEO of Locationary. Previously sold SocialDeck to Google.
    • Rob Hyndman – Awesome startup lawyer. Founder of Mesh.
    • Mark Evans – Former/sometimes current journalist. Consultant focused on startup marketing and media communications. Founder of Mesh
    • Michael McDerment – CEO and Founder of Freshbooks. Founder of Mesh
    • Rick Segal – Founder of FixMo. Previously VC at JLA Ventures.
    • Ali Ghafour – Founder and CEO of ViaFoura
    • Suresh Bhat – Associate at ExtremeVP
    • Bram Sugarman – Associate at OMERS Ventures. Previously at Uken Games and Extreme Ventures.
    • Damien Steel Senior Associate at OMERS Ventures
    • Jennifer Lum – Cofounder Adelphic Mobile, previously at Quattro Wireless. Extreme Startups mentor.
    • Estelle Havva – Industrial Technology Advisor at IRAP. Been involved in this community since the beginning. Practical and can help you with IRAP
    • Ilse Treurnicht – CEO of MaRS. Big budget, big real estate, big salary and hopefully big impact.
    • Albert Lai – Working on Big Viking Games, previously Kontagent, Bubbleshare and others. Original cohost of DemoCamp with me.
    • Ali Asaria – Founder of Well.ca, creator of Brickbreaker. Just awesome.
    • Tonya Suman – Centre for Social Innovation. World leading thinker and doer on social innovation and community ecosystem. Based here in Toronto.
    • Pete Forde – Founder of BuzzData, Unspace and other things. Photog, audiophile, and all round great guy.
    • Jay Goldman – Jay has moved on to Klick Health. Jay founded Radiant Core, did the UI for Firefox 2.0, helped build ZeroFootprint. If you can get his time to talk social or product, it is worth it
    • Jon Arnold – Big in the telco and smart grid space.
    • William Mougayar – CEO of Engagio. Previously Equentia. The man and the product allows him to participate in comment conversations across the web. Responsible for helping bring Fred Wilson to Toronto.
    • Follow @heygosia – CEO and founder of LearnHub. Technical, product, leadership, growth. She’s amazing. Doesn’t get enough credit.
    • Jim deWilde – Teaches in B School. Wrote much of the policy on innovation, government fund of funds, key behind the scenes player. Plus he’s awesome.
    • Zach Aysan – Big data guy. Currently 500px. Previously Algo Anywhere and Rocketr.

    Waterloo

  • June 2012 in Review

    Market Analysis & Industry News

    “2.3 billion people are now globally connected by the Internet. There are 1.1 billion mobile 3G subscribers. Almost 30 percent of all US adults now own a tablet. Mobile is cited as source of 8% of all e-commerce.” from Forbes citing Mary Meeker’s 2012 Internet Trends

    A must read post by Rick Segal on the Secret VC Handbook. If you are considering raising institutional money, you should read Rick Segal’s (@ricksegal) The Secret VC Handbook:

    “The debate between building native applications vs. mobile web sites has raged.” from Adam Nash’s (@adamnash) User Acquisition: Mobile applications and the Mobile Web

    “Global population 7 billion. Mobile phone subscriptions 6 billion. Internet users 2.3 billion.” from The App Generation

    What are the typical top sources of customers for early-stage SaaS companies?

    Company Announcements

    Mike Beltzner joined Wattpad as Head of Product.

    Extreme Startups Demo Day featured keynotes from 500 Startups Paul Singh (@paulsingh) and Mayfield Fund’s Tim Chang (@timechange), with launch of Shoplocket, Granify, Gijit, and SimplyUs and Verelo.

    Plug and Play Tech Center announces cohort of Canadian startups for StartupCamp that includes Pinerly and Willet.

    Ryerson’s Digital Media Zone announced four new tech startups moving in including: Komodo OpenLab, YC grad KytePhone, Electric Courage and Virtual Next.

    Financings

    Company Description Amount Investors
    Wattpad Wattpad is the world’s largest online community of readers and writers. $17.3MM Khosla Ventures, Yahoo co-founder Jerry Yang, Union Square Ventures, Golden Venture Partners
    Lightspeed LightSpeed’s technology provides retailers with powerful tools that reinvent the shopping experience using Mac computers, iPads, and iPhones for retail management tools $30MM Accel Partners
    BuildDirect BuildDirect is North America’s largest online destination for heavy weight building materials $16MM OMERS Ventures
    Blacksquare BlackSquare is a leading market innovation for direct to consumer wine ecommerce globally. Seed Undisclosed
    CommunityLend $3MM non-brokered private placement from a single investor
    Novidev Santé Active Novidev Santé Active is a Québec agri-food business that has developed Vegetal IntelligenceTM, a unique process that preserves all the fruit’s natural bioactive compounds, and will be marketing its first ’super fruit juices’ under the Anti+ brand. $1.3MM 15 private Anges Québec investors including Charles Boulanger and Desjardins Innovatech
  • Lean Startup Tools

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     Some rights reserved by splorp

    Back in May, Nat Friedman wrote about the tools used in setting up Xamarin. They include a great set of basic tools for getting a startup off the ground with very little investment. We have seen a lot of startups using a similar set of tools and I thought that we’d compile a list of the tools that we’re actively using (and some of the others we evaluated). There are the tools and blogs listed by Steve Blank that include many

    Landing Pages

    We’re big fans of WordPress at StartupNorth. We’ve powered StartupNorth on WP since the beginning. The combination of WordPress, Premise, and the WordPress MU Domain Mapping plugin is a pretty powerful combination for creating mutliple sites and landing pages to test your landing pages. But we’ve also developed a sweet spot for Vancouver’s Unbounce, it took us less than 5 minutes to have 2 landing pages and a domain set up. We’re big believers that you can use Adwords and Facebook Ads to quickly create a landing page to test ideas before writing a single line of code.

    Analytics

    We primarily use Google Analytics and WordPress Stats for StartupNorth. We’ve been working with startups and using a KISSmetrics and Mixpanel to measure activity on their web properties and applications. Make sure you read Ash Maurya’s 3 Rules to Actionable Metrics to understand how the analytics can be used in combination with split testing and/or cohort analysis to better track your optimization before product/market fit (What do you measure before product/market fit? – check out Ash’s conversion funnel and metrics).

    Mailing Lists

    We haven’t been as proactive in building a mailing list for the StartupNorth community as we probably should have been. I’ve used have started using MailChimp because of the quick integration to GravityForms and WooFoo, but have had very positive experiences using both Campaign Monitor and Constant Contact.

    Billing and Accounting

    What is amazing is that both of these companies are local to Toronto. We use WaveAccounting integrated with our bank account and PayPal for tracking expenses, billing, and financial operations. And we use Freshbooks to bill for sponsorships. They are a must have in our back office. What we’re missing is a really easy to use and integrated payroll system (I hear that it might be coming).

    Human Resources

    For full disclosure, I’m an advisor to TribeHR. It doesn’t change the fact that they rock. It is the easiest way to get an HR system in place. And there is no better way to get feedback and help employees improve than Rypple.

    Surveys and Feedback

    We are actively using Survey.IO to gather feedback from users about the state of StartupNorth. It helps us figure out the state of our product market-fit, if there is such a thing for a blog about Canadian startups, fill it out and help us be better.

    Project Tracking

    We use Pivotal Tracker. We like them so much, we actively recruited them as a sponsor for StartupNorth. There are lots of other tools from project tools to issue tracking. Curious at what others are using.

    Source Control

    We use Github Bronze for our project hosting. Most of the code we work on is PHP against MySQL (see WordPress), though we have additional apps in development like the StartupNorth Index (which will be moving to startupnorth.ca/index shortly) but all are LAMP.

    Hosting

    Full disclosure: VMFarms is a sponsor of StartupNorth. However, their hosted VMs that are backed up and hot mirrored coupled with the outrageous “white glove” makes them a dead simple choice. We also use Rackspace Startups and EC2 for access to easy Linux and Windows VMs for development and testing environments.

    Customer Relationship Management

    We don’t have any strong recommendations. There are platforms like Salesforce that are fantastic and sales teams are used to. There is Highrise which is broadly supported with a lot of 3rd party tools. But so far, neither of these has been the clear winner for us. There is a great Quora question about “What is the best CRM for startups” that lists SFDC, SugarCRM and Highrise. There are a lot of choices for CRM including NimbleInsightlyWoosabiCapsuleSolve360,AppPlaneBatchbookPipelineDealsTactileCRMZohoCRM and many others.

    Conferencing, Screen Sharing & Telecommunications

    I’ve been using Calliflower for conference calling. It’s $5/call for up-to 5 callers, or for $30/month unlimited minutes and >70 participants, it’s a great solution. It is not a replacement for a office phone system.

    Google Voice and Skype have been the least expensive way as a Canadian startup to get a US phone number. This is great for me as an individual. However, this does not scale to an enterprise or an organization. I’ve been looking at Grasshopper, RingCentral and Toktumi, but I have yet to settle on a solution.

    SEO & SEM Tools

    This part of the list is pretty much cribbed from Steve Blank’s list of tools for entrepreneurs. Go read it for a more comprehensive list of tools beyond the SEO/SEM listing included below.

    What are we missing?

    I’m going to cover in the next post: discounted travel, conferences, business cards, design services, and other tricks for being relentless resourceful as a founder.

    There are a lot of online tools that startups are using to make or break their business. And there is a lot missing, monitoring like NewRelic, PagerDuty, Pingdom and Blame Stella for example. But I’m curious what are the indispensable tools being used at iStopOver.com, HighScoreHouse, CommunityLend, Idee/Tineye, Massive Damage, Empire Avenue, Indochino, Lymbix, Hootsuite, AdParlor, Locationary, Chango and others. What are you using? What gives you the edge in quickly and effectively gathering feedback to test your hypotheses?

  • Incubators, incubators, every where

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    Is there an incubator bubble? Perhaps it’s an incubator arms race. When I wrote Incubators, Accelerators, and Ignition in 2009 there were not a lot of Canadian based incubators (the now defunct BootupLabs was the only one listed in the ReadWriteWeb article).

    Incubator Index +18

    There has been a rise of support for early-stage entrepreneurs across the country. Yesterday’s announcement of GrowLabs in Vancouver along with the launch of Foundery, Multiplicity Accelerator in Toronto, FlightPath in Edmonton, YearOneLabs in Montreal. There are existing players including Extreme Venture Partners, Mantella Venture Partners, Wesley Clover, Innovacorp and Real Ventures/Notman House. The are university incubators like UW Velocity, MEIC, LeadToWin, Ryerson’s DMZ, Next36. There are Communitech, WavefrontAC, CoralCEA, MaRS, NBIF among others.

    There are companies like Jet Cooper, Teehan+Lax incubating people and ideas (Rocketr & TweetMag). There are new programs like the Under 20 Thiel Fellows that had 2 Canadian students: Gary Kurek (LinkedIn, @gskurek) & Eden Full (LinkedIn, @roseicollistech).

    There is competition from YCombinatorTechStars and 500StartupsAndrey Petrov YC10 (@shazow), BackType YC08 – Christopher Golda (LinkedIn, @golda) & Mike Montano (LinkedIn, @michaelmontano), Rewardli 500Startups- George Favvas (LinkedIn, @georgefavvas) & Jean-Sebastian Boulanger (LinkedIn, @jsboulanger); A Thinking Ape YCW07 – Eric Diep (LinkedIn, @ediep), Kenshi Arasaki  (LinkedInarasakik) & Wilkins Chung (LinkedIn), InPulse YCW11- Eric Migicovsky (LinkedIn, @ericmigi), Vanilla Forums TechStars09 – Mark O’Sullivan (@navvywavvy) and others.

    There has been an explosion of support for existing organizations, there has been a rise of a new breed of incubator/accelerator/catalyst.

    How does an entrepreneur evaluate an incubator?

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    Do you pick the incubator? Or does the incubator pick you? This is a business decision. It’s somewhere between chosing an investor and a service provider and picking where to go to graduate school. There are implications for incubators about which startups they choose to help. Their reputation, alumni and talent pool are determined by the people they let in.

    There is no magic formula and rationalization or justification can make any decision sensible. But when I advise entrepreneurs, I want them to think about:

    Pedigree & Reputation
    What are the exits? Who are the alumni? What do others think about the program? One of the big reasons that YCombinator has become so successful is the success of it’s alumni. It has been reported that the YCombinator portfolio is worth almost $3B. They have an strong history of helping companies succeed like crazy. Think about this in terms of post secondary education. What is your opinion of a computer science graduate from: Carnegie Mellon University, MIT, Stanford, UWaterloo, Slippery Rock University? The quality of the education might not be any different. But you need to consider the external optics of an incubator program, just like you do in picking a school.
    Alumni, Mentors and Advisors
    Who do you have access to? Does the pedigree or alumni network change your access to people? Think about YCombinator grads, they get access to Yuri Milner and Ron Conway and $150,000. That’s something most of us don’t have access to. What doors and connections that aren’t available to you today can be enabled by attending an incubator. Who are the mentors what have they built? For example, look at the great talent behind GrowLab – Debbie Landa (Dealmaker Media), Boris Wertz (Abe Books), Michael Tippett (NowPublic), Leonard Brody (NowPublic) and Jason Bailey (SuperRewards). These are some people with impressive histories of building, promoting, operating and selling startups. You need to think about your vertical, your customers, the connections to potential acquirers, etc. Are the people connected with the incubator beneficial to me.
    Culture
    You need to make sure that the culture is something you can work in. I can only describe the culture of places I’ve seen, but I look at Extreme Venture Partners and Mantella Venture Partners in mentoring, motivating and growing entrepreneurs. What is important to you? I watched the Like A Little video on TechCrunch Cribs, and there is no way I could live through that again. There’s nothing wrong with the culture, it’s amazing (disturbing), but I could not do it because my stage in life just would not allow it. My advice is that you visit the incubator, meet the people that are in residence, ask questions, observe, form an opinion.
    Funding or equity stake
    What do you have to give up? Equity? A board seat? How does it compare to other incubators? How much will you benefit from the network and pedigree, from the connections and mentors? This is a decision about do you believe the costs match the benefits? Do you have to move? How long can you survive on the capital?
    Free stuff
    This is a funny thing. What do you get for participating? SwagBag? Press? Boardroom for customer meetings? Hosting? Design services? Legal services? Templated documents? Do you get to attend StartupSchool? Do you get press coverage at your demo day? Do you get coffee? Dinner every other week. You’re in it to get the best deal to help your startup grow.

    Do you need an incubator?

    I’m curious about the feelings and opinions about incubators from:

    • Scott Pelton (@spelton) – GrowthWorks has previously invested in BootupLabs. Scott has worked with companies from incubators including Bumptop. Does having an incubator change your opinion or evaluation of young companies?
    • John Philip Green (@johnphilipgreen) – John has started LearnHub, been part of the early or founding teams of companies in Silicon Valley and now the leadership team at CommunityLend.
    • Leila Boujnane (@leilaboujnane) – Leila is a pillar of the community. She is the founder of Idee & TinEye. She advises startups and hosts events like HackDays.
    • Ryan Holmes (@invoker) – Ryan is a founder of HootSuite, he is also an advisor at GrowLab. Wasn’t HootSuite incubated at Invoker? What is the role of the incubator or companies in organic growth of new ideas? How should entrepreneurs evaluate an incubator vs being an employee versus something else?
    • Evan Prodromou (@evanpro) – Evan is the founder of Status.net and has raised seed money from MontrealStartup and continued to build an amazing product. I’m curious about his opinion on starting in an incubator.
    • Patrick Lor – Patrick cohosts DemoCamp in Calgary. He is on the board at Fotolia. He is an active angel investor. To the best of my knowledge outside of his involvement in SIFE he is not affliated with an incubator.
    • April Dunford (@rocketwatcher) – April is the best B2B Marketer in the world! I just said it on the Internets so it must be true. April has worked with lots of startups including NexJ and Janna. I wonder what her advice to a startup considering an incubator would be.
    • Rob Lewis (@robertslewis) – A drunken rumor says that Rob is starting his own media incubator in Toronto (possibly with ExtremeVP). And since Rob is a W Media Ventures portfolio company, I don’t want to see any puff PR pieces on TechVibes about GrowLab companies.
    • Chris Arsenault (@chrisarsenault) – One of the Jacques’ Mafia and an incredible investor. He has portfolio companies like Chango that have been incubated at Mantella VP. Are incubated companies better?
    • Danny Robinson (@dannyrobinson) – Now running BCIC and I’m curious at his opinion about what is rising out of  the ashes of BootupLabs and his thoughts on the incubator business model.

    More importantly, what do you think about this new bumper crop of incubators?

  • The Hot Sh!t List

    Some rights reserved by ALL CHROME
    AttributionNoncommercialShare Alike Some rights reserved Photo by ALL CHROME

    There is a lot of crazy young talent kicking around. We’ve seen that great talent that UW Velocity is producing with Ted Livingston(@ted_livingston) at Kik. There are the Christopher (@golda) and Michael (@michaelmontano) at BackType. There is the stupidly awesome team at Extreme Venture Partners (@avarma, @fnthawar, @sundeep).

    I thought I’d throw together a quick list of designers, developers and entrepreneurs that are young, hot, kicking ass and taking names. There is an amazing amount of talent in Canada. And this is who I’m watching because they are hot sh!t.

    1. Dan McGrady (@dmix, LinkedIn), CareLogger
    2. Kaitlyn MacLachlan (LinkedIn), AskItOnline & Yellow Pages Group
    3. Casper Wong (@wongcasper, LinkedIn), CommunityLend
    4. Jennifer Fong-Adwent (@ednapiranhaLinkedIn), Rocketr
    5. Josh Davey (@joshdavey, LinkedIn), BurstN & Chango
    6. Alex Black (@waterlooalexjo, LinkedIn), SnapSort
    7. Cody Fauser (@codyfauser, LinkedIn), Shopify
    8. Vincent Cheung (@veenix, LinkedIn), ShapeCollage
    9. Wes Bos (@wesbos, LinkedIn), DealPage
    10. Michael Litt (@michaelrlitt, LinkedIn), Vidyard
    11. James Stewart (@JamesStewartUXD, LinkedIn), PostRank & TribeHR
    12. Julie Haché (@juliehache, LinkedIn), Shopify
    13. Duleepa “Dups” Wijayawardhana (@dupsLinkedIn), EmpireAvenue
    14. Joseph Fung (@josephfung, LinkedIn), TribeHR
    15. Andrew Peek (@drupeek, LinkedIn), Rocketr
    16. Simon Law (@sfllaw, LinkedIn), TrustCentric
    17. Eric Diep (@ediep, LinkedIn), A Thinking Ape
    18. James Blair (@jamesblair, LinkedIn)
    19. Edward Ocampo-Gooding (@edwardog, LinkedIn), Shopify
    20. Satish Kanwar (@skanwar, LinkedIn), Jet Cooper
    21. Jesse Miller (@jesse_miller, LinkedIn), Attachments.me
    22. Josh Merchant (@joshmerchant, LinkedIn), Lymbix
    23. Boris Chan (@borisc, LinkedIn), XtremeLabs
    24. Tyler Galpin (@TylerGalpin, LinkedIn)

    This list is incomplete

    I am completely aware that this list is incomplete. But who are the tastemakers that are building the next generation of emerging technology companies that no one knows about in Canada. Help me find great talents that are under 40 (this is irrelevant, who are the entrepreneurs, designers and developers that are shaping things) and based in Canada.

    [gravityform id=3 name=HotShit List Nomination ajax=true]

  • Our newest sponsor: VMFarms


    AttributionShare Alike Some rights reserved by Arthur40A

    It was at StartupDrinks or the StartupNorth Meetup when I was talking with Christopher and Hany at VMFarms about our hosting woes. StartupNorth.ca had been offline for about 24 hours, and we were in the dark as our previous hosting provider was trying to recover from a disk failure. Now we don’t have particularly complex hosting requirements, but one of the requirements is uptime. We’d like our services to be available to entrepreneurs 24x7x365. Mind you we’re not willing to pay for 99.999% uptime (learn more about high availability). I would have been ecstatic with “three nines” aka 99.9% or 8.76 hours of downtime per year. But we had failed to meet that requirement at we were approaching 99.5% uptime and without a foreseeable solution we could hit “two nines” (99% uptime) if something wasn’t done by us or the hosting provider.

    We have been very lucky. We had been able to host StartupNorth.ca on a shared hosting solution that allows us to operate our WordPress installation, StartupNorth.ca, a custom Django application, StartupIndex.ca, and some custom development (stay tuned) built in PHP5 + MySQL + Apache2 for $20/month. Cheap if you compare it to what we could be paying. It worked for a long time but I was in the dark and I couldn’t see a light indicating there would be a path to salvation.

    I had met Christopher and Hany a few months before. I personally love the business. In fact, I think I pitch Scott Pelton (@spelton) a similar idea back in the summer of 2010. With Christopher and Hany there is a core team of experienced developer operations and network operations professionals that have cut their chops deploying and supporting high availability leading edge web applications at Avid Life Media (PHP, Rails, Django, etc.). At StartupNorth, we are big proponents of supporting our local ecosystem. We use:

    There was no reason other than cost that we should have our server applications hosted with a non-local provider.

    I approached Christopher and Hany with a proposition. The should sponsor StartupNorth, the sponsorship is an in-kind sponsorship. They provide hosting and support on their infrastructure. We add their logo to StartupNorth web site and page footers, plus we give them the opportunity to write a few posts. The posts aren’t meant to be marketing fluff. I’ve ask the VM Farms team to talk about their real-world experiences including:

    • their experience using different cloud services;
    • network architecture and application hosting for advanced web & mobile applications (think application server, MongoDB or Hadoop clusters plus relational datastores);
    • when/how startups should evaluate the different performance vs cost trade-offs in advanced applications (there’s nothing wrong with choosing AWS but when should you look for alternatives)

    We are incredibly picky about our sponsors. We are even more picky about the posts and authors we ask to join us. We take our reputation and the commentary we provide about the Canadian startup ecosystem very seriously. We’re hoping that we can help educate entrepreneurs about advanced network infrastructure decisions and the impact these decisions can have on costs, performance and growth. And with the team at VMFarms, we have some partners that are experienced and capable of providing a unique 3rd party view of AWS, Rackspace, GoGrid, Azure, Linode, etc. and traditional hosting environments.

    We’ve been on VMFarms for about 30 days now. We have had 2 outages in those 30 days. Both outages have been my fault. Hany and Christopher have been on the ball and responsive to help me diagnose, identify and fix the issues.

    1. Upgrading WordPress 3.1 to 3.1.1 – the Unix user permissions and file access settings I configured on the web directory do not allow the FTP user to write to the web directory. WordPress automatic upgrade requires an FTP user (though we connect using FTP-SSL). I ssh’d to the server, wget the update and “tar -xvzf” to the wordpress directory. This overwrote the .htaccess file and broke the Apache rewrite rules. Resolution time: approximately 15 minutes (because I insisted on doing it myself).
    2. StartupNorth.ca unavailable on April 19, 2011 – turns out we let our DNS registration expire due to an expired credit card. It was identified by 2 users (thank you William and Scott (@scotthom). Hany debugged in about 15 seconds and it required Jevon (@jevon) to renew the DNS registration.

    The team at VMFarms have been fantastic. They are helping StartupNorth immensely. I’m really looking forward to some additional discussion about developer operations in startups (should be interesting given my network infrastructure does not yet include VMFarms – we’re github, Heroku and AWS EC2 + S3).  I’m wondering what John Philip Green (@johnphilipgreen) uses at CommunityLend, Pete Forde (@peteforde) at BuzzData, Daniel Debow (@ddebow) at Rypple, David Ossip (@dossip) at Dayforce, Chris Sukornyk (@sukornyk) uses at Chango, and Mike McDerment (@MikeMcDerment) at FreshBooks use to host their different application layers.

  • Seed Funding – Some New Considerations

    Seed Funding
    AttributionNoncommercialNo Derivative Works Some rights reserved Photo by Pictoscribe

    I started writing this post while working on my presentation for Enterprise Toronto‘s Small Business Forum 2010 on raising capital for high growth businesses. I’m by no means an expert at this topic, but there are a lot of basics that entrepreneurs and growth businesses can learn about both the type of capital and when to raise it. But Manu Kumar‘s (LinkedIn) must-read post (and the comments) about his Thoughts on Convertible Debt got me to thinking I would publish my list of resources. And Adeo Ressi‘s (@adeoressi) thoughts on Year of the Startup Default includes implications for entrepreneurs raising a lot of debt, because if Series A funding is more difficult to find than getting traditional bank loans or other sources of capital become more difficult with a large, even capped, debt load. There are a lot implications for entrepreneurs.

    The starting point for my now almost 6 month old talk is the fantastic article by Bernard Lunn on Read-Write Web, The Capital-Raising Ladder, which defines the different types of capital that is available to startup companies and founders. The “ladder” concept is key in the article. Entrepreneurs generally have to start at the bottom of the ladder and work their way up each “rung”. Certain entrepreneurs can skip some of the rungs on the ladder particularly if they have had success in the past, i.e., it’s way easier for someone that has built a successful publicly traded company to raise angel or VC money than a student first out of school, but since much of this is a meritocracy it is easy for young entrepreneurs to demonstrate their ability to build successful companies and raise additional capital.

    The implications of Manu Kumar’s post and Adeo Ressi’s are about the prevalence of startups raising convertible debt with angel investors because it is en vogue. Nivi (@venturehacks) has provided some of the best advice on founder fundraising at Venture Hacks and some good analysis of the impact and benefits of debt for entrepreneurs in his comments:

    “Notes were good technology a few years ago but now there are better technologies like Series Seed that have many of the benefits of debt (speed, simplicity, less negotiation). And debt is pretty complicated when you really look at it. I’m guessing we’ll be back to equity in a couple years, for the better. But Series Seed and other equity docs need to be tested a bit more too.

    2. You can work around this in two ways. The company can’t pay back the debt and it converts to equity at maturity. I always include these in debt agreements.” – Babak Nivi comment on Thoughts on Convertible Debt

    The goal here is for entrepreneurs to have access to information to make informed decisions. I hadn’t thought about the impact that the potential debt load might have on Influitive’s ability to raise loans vs financing in the future.

    I’m interested in the thoughts from Boris Wertz (@bwertz), Roger Chabra (@rogerchabra), Scott Pelton (@spelton), Chris Arsenault (@chrisarsenault), Mark MacLeod (@startupcfo), Craig Netterfield (@cnetterfield), Jordan Banks (@Jordan_Banks), Ben Yoskovitz (@byosko), John Philip Green (@johnphilipgreen) and others.

    • What are the unique implications for Canadian founders in that are unique to the considerations for convertible debt?
    • What are you thoughts on convertible debt notes as an investor?

    Resources for Entrepreneurs

    Here’s my short-list of resources around the mechanics of raising money and evaluating the documentation.