Author: David Crow

  • Founders & Funders An Update

    I think Jevon and Jonas and Karthik are getting sick of running events with me. Before StartupEmpire back in 2008, I ended up in the Emergency Room at Toronto General for another look at my ticker. This week I ended up in the Emergency Room at Toronto General as we are planning Founders & Funders. I’m ok, I was both times but it does complicate the event planning and invitation process.

    “Gentlemen, we can rebuild him. We have the technology. We have the capability to make the world’s first bionic man. Steve Austin will be that man. Better than he was before. Better…stronger…faster.” Wikipedia

    So if you feel like you only got your invitation very recently, i.e., today. It’s my fault, I am sorry, I have been out of commission. It’s a reminder that you should do a startup before you need a body replacement.

    Founders & Funders

    Here is the update on Founders & Funders. It has been almost 2 years since we ran the last Founders & Funders (thanks for noticing William ;-). We are 7 days from the event and we have 35 remaining spots. Unlike past events, we are over inviting and over selling the event, i.e., first come first served. So if you got an invite but were waiting that might be a bad plan…

    How to get an invitation?

    “Fortune favors the connected entrepreneur.” @jcal7 #trueuniversity via @hnshah

    We’re looking for “interesting” founders. Often this means people that we’ve met at other events, as Founders & Funders are relatively small social gatherings. That doesn’t mean it is just our friends, as I’ve been often accused. But it is entrepreneurs that we’ve met, that are building interesting companies, that have interesting traction. Get someone that we think is awesome to refer you. It’s a social hack (just like me).

    Connect with other founders

    Daniel Debow

    We have also decided to include a brief fireside chat with Daniel Debow at this dinner. We rarely do this sort of thing at a Founders and Funders but 2011 was such a great year we thought it would be fun to look back on the ups and downs of Rypple through the years and how they got to their eventual exit, some of which was written about in Forbes this week.

    What’s the point?

    Jonas, Jevon and I are founders. We are not an event company. We are not a media company. We have been trying to write content on StartupNorth that is relevant to us as founders. Whether we are raising money, connecting with other where we live, finding talent, or growing a business. We generally charge very close to the cost of the ticket, i.e., there are some slight over head costs but we are not collecting salaries or generating revenues. This is an unfortunate hobby. But I know there are world-class founders and companies across Canada and while there are government supported organizations and purported lobby groups, we are just a bunch of founders trying to do the things that we find useful in building our companies.

    Founders & Funders is a social event. It is designed to connect with the people writing cheques and making investments on a social level. To talk about startups and technologies and business models without the constraints of a pitch. Will there be pitches, definitely (How do you know when an entrepreneur is dead? They stop pitching). The goal is to have a highly edited dinner party with “interesting founders” and get them out of their usual pitch oriented conversation with VCs.

    Whether this works or not is questionable, but it does bring together founders and funders in a social context.

  • GrowLab on tour

    GrowLab DemoDay 2011 - Some rights reserved by miketippett
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    Ok, it makes me laugh every time I read GrowLab. The only way it could be better is when someone describes the GrowLab companies as “GrowOps”. They really did a great job in creating a corporate name that has a set of nuanced meanings (well maybe it’s not so nuanced).

    Our friends from GrowLab are heading out on tour to find their next cohort. They are coming to:

    • Toronto – February 13, 2012 Register
    • Waterloo – February 14, 2012 Register
    • Montreal – February 15, 2012 Register
    • Edmonton – February 22, 2012 Register
    • Calgary – February 23, 2012 Register

    Sounds like an interesting night with Daniel Debow (LinkedIn, @ddebow), Debbie Landa (LinkedIn, @deblanda) and Jason Bailey (LinkedIn, @YVRJason) talking about startups, entrepreneurship, building companies in Canada, getting connected in the Valley, GrowConf, incubators and other fun things. The panel conversation is:

    Are you an Entrepreneur or a Wantrepreneur?

    What makes you different from other entrepreneurs trying to build start-ups? You are competing with thousands of entrepreneurs for the same resources, talent, and capital. How are you going to make sure that you attract the best people and funding? Is it about who you know or is it about how great your product is or the reach you have in the community?

    In Toronto that I get to host the above conversation, it means that I’m going to have to represent for the “Wantrepreneur” side. Because there is too much awesomeness with Daniel, Jason and Debbie representing the “Entrepreneur” side. It should be a fun event and a great time for entrepreneurs to get or stay connected with each other. This is a great group to provide deep insight into the experience of building companies in Canada and selling them to Silicon Valley powerhouses.

    Given the tour includes stops in Bucharest and Budapest, I can guarantee that someone will mention Summify (congrats guys).Also excited that Debbie and Jason will be joining us on Feb 16 for Founders & Funders.

  • Extreme Startups

    Extreme Startups

    Rob Lewis and TechVibes is reporting that ExtremeU (you can read our past coverage 2009, 2010, 2011) has launched a new Toronto based incubator that leverages their experience over the past 3 years. Mark Evans provides additional details that includes “$7-million in funding from Extreme Venture PartnersOMERS VenturesRho Canada VenturesBlackBerry Partners Fund and BDC.”

    Extreme Startups includes a who’s who of  the Toronto startup scene as mentors:

    • David Ossip
    • Daniel Debow
    • Anand Agarwala
    • Michael McDermentt
    • Ameet Shah
    • Albert Lai
    • Leila Boujnane
    • Ali Asaria
    • Noah Godfrey
    • Ray Reddy
    • Rick Segal
    • Salim Teja
    • Derek Seto
    • Nick Koudas

    Congrats to Andy Yang, Sunil Sharma and Amar Varma in getting this thing launched. Plus how can this not be awesome with Andy Yang as Harold and Sunil Sharma as Kumar in Extreme Startupping.

    Andy Yang and Sunil Sharma go EXTREME STARTUPPING

     

  • It’s people, people!

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    How do I know that emerging technology is still booming? It is incredibly difficult and competitive to recruit, hire and retain people with startup experience across Canada. Just look at the number of jobs posted on the StartupNorth Job postings:

    The number one budget item for startups is headcount. For most companies, the people costs far exceed the costs associated with hosting, etc. I don’t know about you but we’re not designing our own servers or opening data centers near the Arctic to reduce the cost of computing and power consumption. It means that the people are the biggest cost for a startup as they grow.

    This is different during the initial creation of many of the startups in the bootstrapping phase. We’ve seen a lot of startups get to Minimum Viable Product and start the process of finding a scaleable business model keeping their headcount costs low or close to zero. You might infer that the experience at YCombinator or TechStars or 500Startups is designed to give entrepreneurs the bare minimum of capital and put them in a focused, competitive environment with a deadline (Demo Day) to do the customer development and build the connections necessary for the next stage. Upon exit, many of these companies raise a significant amount of capital. Have you asked yourself why?

    Soylent Green is People - CC-BY-NC-SA Some rights reserved by tjdewey
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    It’s to hire the best people. And it turns out that hiring the best people is not something that can be easily solved with a job posting, or a tweet, or free iPad. Recruiting is Hard! And at startups, it can be difficult to step away from fund raising, product development and customer engagement to focus on the thing that can make or break your business. Ben Yoskovitz wrote a great summary post of his efforts to Recruit and Hire Top People for a Startup that every founder should read:

    The war for talent across Canada is just beginning. During my time at VeloCity at UWaterloo, I was impressed at the number of US companies and startups that were actively recruiting on campus. And the established companies aren’t alone, we have seen an increase in the amount of US investments (looking at you GoInstant, Vidyard, TribeHR, Kik, Playerize, Enflick, Shopify, Hootsuite, A Thinking Ape, and others). This will undoubtedly lead to increasing salaries (see @byosko’s # 4 prediction for 2012 in Montreal). It doesn’t even take into consider the continuing recruiting efforts that companies like Rypple, Radian6, Dayforce. For startups, we are going to need to improve our culture and game to keep talent. And getting your startup to a point to raise enough money to pay competitive salaries is going to be the baseline to play in 2012.

    If you are designer, marketer or developer and you are curious at who is hiring or if you want an introduction, drop me a note with a resume (david at davidcrow dot ca) and I’ll do my best to match you with companies I know are looking.

     

  • High Tech Holidays and HoHoTO

    I can’t believe it was back in 2008 that #HoHoTO started. For the past 3 years instead of a Holiday DemoCamp or Festive Founders & Funders, we’ve sponsored and attended HoHoTO. (We’ve even helped document the shenanigans). So why the fuss about a holiday party?

    Toronto’s High Tech Holiday Party – #HoHoTO

    “Fortune favors the connected entrepreneur.” @jcal7 #trueuniversity via @hnshah

    We talk a lot about what is going on in Silicon Valley and how to make Toronto better. We can look to Helsinki, Israel, New York, Boston, Austin, and other places. But we have a strong emerging high tech culture in Toronto (and across Canada, just check out the efforts in Montreal and Vancouver). There is a strong vibrant community in Toronto that actively seeks each other out. Maybe because it’s cold and we like to snuggle, maybe because in dark of winter it’s best not to drink alone. But there are entrepreneurs that are trying to do it in Toronto and they like to get together.

    CC BY-NC-SA  Some rights reserved by smack416
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    We have a great community that knows how to have a great time. And with HoHoTO the great time also supports a great cause.

    What is HoHoTO?

    Daily Bread Food BankWe often joke about startups being “ramen profitable”, but for many this is not a choice. We are working with HoHoTO and the Daily Bread Food Bank we hope to improve Toronto. HoHoTO is a Holiday party to raise sorely-needed funds for Toronto’s Daily Bread Food Bank. It brings together the hyper-connected tech, marketing, PR, social media and startup communities  to raise attention and support around a core idea:

    “People in our town are hungry – damnit – and we can make a difference.”

    Here is the call to all Toronto startups, you should attend HoHoTO and support the Daily Bread Food Bank. It’s a great way to initial meet and connect with other readers of StartupNorth and give back to those less fortunate in Toronto.

    It’s easy to sponsor, it’s easy to attend, it’s easy to donate.

    Get Tickets Now!

    PS this is a call out of our friends to match or beat our sponsorship/donation:

    We’re hoping to see everyone on December 15.

     

     

  • Incubators, Accelerators, and Cyclotrons

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    They are lining up like storm troopers.

    It looks like a new crop of accelerators, incubators or, as I prefer, cyclotrons have started opening in Toronto. We’ve been talking on and off about Incubators, Accelerators and Ignition since early in 2009.

    Here is my list of incubators/accelerators/cyclotrons:

    And this is on top of the existing coworking, shared real estate, available to entrepreneurs in Toronto.
    There are lots of opportunity for entrepreneurs to find a mix of real estate, services, and cash for equity in their businesses. My advice is make sure you aren getting more than real estate with benefits. Maybe next we need to provide entrepreneurs a framework for making critical decisions about startup things including incubators 😉
    Who did I miss?
  • OMERS Ventures ramps up with Howard Gwin & Derek Smyth

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    It’s has been a long time since Canadians have seen the creation of a new 200MM+ venture capital fund. It was back in June 2010 that OMERS announced the creation of the INKEF fund. OMERS and ABP have since gone their separate ways with ABP running INKEF Capital focusing on high tech startups in the Netherlands. And OMERS creating OMERS Ventures focused on “investments in the Technology, Media, Telecommunications, Clean Technology and Life Sciences sectors in Canada and the US”.

    A little more than a week ago, OMERS announced that they had hired Howard Gwin (LinkedIn, @howardgwin). Who I’ve been quoted as saying “he really is the best VC in Canada”, mind you Howard was buying the drinks at the time…

    And it looks like they have added fellow Edgestone alumni Derek Smyth (LinkedIn, @derekjsmyth). I’ve heard the announcement is due later today, but OMERS Ventures announced Derek Smyth as part of the team today, Derek’s profile is already part fo the team at OMERS Ventures. Derek is another rockstar going to OMERS. Prior to joining OMERS Ventures, Derek co-managed two VC funds at Edgestone Capital Partners. He also has operational experience that includes his former roles as President and CEO of solutions provider Bridgewater Systems, and as COO of California-based Ironside Technologies Inc.

    Derek and Howard were instrumental at Bridgescale in running the Digital Puck and Mentor Monday events that helped connect Canadian entrepreneurs. I’m hoping that these guys continue to invest in connecting, engaging and supporting all entrepreneurs (along with their portfolio). The ongoing support of the C100 and AccelerateTO already show that OMERS has a larger operational budget that allows them to support and sponsor community activities.

    The future looks bright for OMERS Ventures.

  • FounderFuel cohort explodes onto the scene

    Disclosure: I am a mentor at FounderFuel, and I traveled  to Montreal in August 2011 to see most of these companies during the mentor matching. I’ve also mentored Willet as part of my role as Entrepreneur-in-Residence (EiR) at Velocity (@UWVelocity) in Waterloo. 

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    I am/was impressed with the teams accepted into the 12 week FounderFuel program. Today is #FFDemoDay where after the past 12 weeks the companies get a chance to show the world what they’ve been working on. I love the art of the demo, it is so different than the pitch. I met all of the companies in August 2011 at the Mentor Matching Day, unfortunately I wasn’t able to travel to Montreal to see the demos today. It looks like the team at Founder Fuel is continuing Montreal Startup Up’s great track record of identifying and growing very early stage ventures.

    I’m apparently having a bromance for the Real Ventures team.  John Stokes (@iamjohnstokes), JS Cournoyer (@jscournoyer), Mark MacLeod (@startupcfo), Allan MacIntosh and Ian Jeffrey (@ianjeffrey) are putting together programs and the funding to support a strong early stage technology ecosystem in Montreal. Keep up the phenomenal work guys.

    The 2011 FounderFuel Cohort includes:

    • Playerize
      Playerize grows social and mobile games by providing player installs from diverse channels at huge scale.
    • OOHLALA
      A mobile platform that helps students take control of their college life by powering the events, conversations and deals on campus.
    • Willet
      Willet is the missing step from social browsing into shopping, and converts the mindsets of people without intent to buy into paying customers.
    • Vuru
      Vuru takes complex financial statements and distills them down into clear, transparent reports that show investors the fundamentals that matter.
    • Seevibes
      The TV Ratings For Social Media Audience – measures engaged audience to provide relevant data that media and advertising industry need.
    • BlameStella
      Is your Internet contrivance up to snuff? Find out with BlameStella, the future of Web Monitoring .
    • PlayerTakesAll
      A viral campaign & referral management platform that enables advertisers to extend the reach of their marketing efforts by 50%.
    • Wavo
      wavo.me is the easiest way to collect, manage and play the music and videos being shared on your social networks.
    • Editola
      Editola uses the community to build the most accurate view of every news story. The best articles, videos and opinions, all in one place.

    Apply for FounderFuel 2012

    The spring 2012 FounderFuel session is scheduled to start on February 20th 2012, and applicants may apply directly online at founderfuel.com until January 7th 2012. An early review of candidates will begin on December 12th 2011.

    FounderFuel DemoDay #FFDemoDay by deniszgonjanin
    Photo by deniszgonjanin

  • Everyday be hustlin’

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    AdParlorCongratulations to Hussein, Kristaps and their team at adParlor.

    In case you missed it, Toronto-based adParlor has been acquired by AdKnowledge. adParlor is the second Canadian acquisition for AdKnowledge, who acquired Vancouver’s Super Rewards in July of 2009 for a reported $50 Million.

    They managed to build one of “the largest [Facebook] Ads API vendor” and do it here in Toronto.

    “We’ve established an office over here where we now have 11 employees, and we’re all based and comfortable in Toronto. We do have our business development manager in San Francisco way more than he’s here in Toronto.” – Hussein Fazal (LinkedIn, @hussein_fazal) on Mixergy

    Even more impressive is that they built a site, that manages over one billion impressions a day, without raising outside capital. This is freaking impressive. I’m sure there was likely a combination of SR&ED credits, IRAP money, and others. Every entrepreneur should take note: A billion daily impressions without venture funding. Go read or watch Hussein’s interview on Mixergy, he talks about the 2 pivots for the company, the hard decisions, staying in Toronto. He doesn’t talk about all of the successes like the MaRS AlwaysOn trip, the CIX Top 20, but their relentless hustle and drive built a great business with massive traction.

    “no one has hustled harder, stayed humbler, and executed better than him.” – Anonymous VC Comment about Hussein & adParlor

    Thanks for building a fantastic example for Canadian entrepreneurs.

  • Where are the Canadian VC bloggers?

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    I’m awarding Mark MacLeod (@startupcfo) of Real Ventures the Canadian VC Blogging Superhero Badge. Mark is producing world-class class content focused on SaaS Math including:

    This is content that every entrepreneur looking to understand the basic metrics and mechanics of a SaaS business should read. Mark is the one Canadian VCs producing must read, world class content. It is the first time a Canadian VC has been producing content since Rick Segal switched teams (we’re much happier with Rick playing for the entrepreneurs). Rick’s post on Inside the Process is still the de facto standard for understanding the fundraising process from a VC perspective..

    I keep wondering why more Canadian VCs don’t produce content.  It’s not like they don’t have access to blogging tools or the understand of how they should be used. For example, Inovia Capital uses their blog as a promotional tool for their portfolio and their activities in the community (not to pick on Chris, John, Kevin and team because they are really an amazing entrepreneur friendly firm that any entrepreneur would benefit from having involved in your company).  We have others like Boris Wertz blogging about his portfolio and his analysis of the industry including his support activities like StartupVisa Canada. It is just that in comparison to quantity and quality of US investors exploring the power of the medium to reach potential entrepreneurs. We have had some other interesting attempts like DigitalPuck.ca and The C100 to bring together Canada focused investment discussion. The other very interesting blog is Mark R McQueen’s blog (@markrmcqueen). But why are there only 2 Canadian VCs writing interesting content for the medium they are investing in?

    Using the terrible “the Canadian market is one-tenth the US market” you might deduce there should be only 10 interesting US VCs blogging. Bullshit. Larry Cheng provides a list of 100 VC blogs by traffic, some of which like Rick’s blog are no longer active. Here is my short list of 30 very interest US VCs blogs you should be reading (or at least on your radar).

    1. David Skok (@bostonVC)
    2. Fred Wilson (@fredwilson)
    3. Mark Suster (@msuster)
    4. Paul Graham (@paulg)
    5. Dave McClure (@davemcclure)
    6. Albert Wenger (@albertwenger)
    7. Brad Feld (@bfeld)
    8. Roger Ehrenberg (@infoarbitrage)
    9. Ben Horowitz (@bhorowitz)
    10. Mark Andreessen (@pmarcablog)
    11. Chris Dixon (@cdixon)
    12. Jeff Bussgang (@bussgang)
    13. Nivi and Naval – Venture Hacks
    14. David Hornik (@davidhornik)
    15. Fred Destin (@fdestin)
    16. Josh Kopelman (@joshk)
    17. Will Price
    18. Bill Gurley (@bgurley)
    19. Mike Arrington (@arrington)
    20. Ed Sim (@edsim)
    21. Seth Levine (@sether)
    22. David Cowan
    23. Scott Weiss (@W_scottweiss)
    24. Bijan Sabet (@bijan)
    25. Lightspeed Venture Partners
    26. Mark Peter Davis (@markpeterdavis)
    27. Mike Hirshland (@VCMike)
    28. Larry Cheng
    29. Rob Go (@robgo)

    Maybe if you compare at the Q2 investment comparison it’s $7.5B by NVCA vs. $328MM by the CVCA where Canadian investment is 4.37% or the US VC market is roughly 23x bigger. It doesn’t matter. It seems that an interesting blog with insight and analysis of the market and trends is a requirement to differentiate and attract entrepreneurs in the US market.Why not here? Are Canadian VCs just lawyers, bankers and accountants with no real insight into market trends or company operations that can help entrepreneurs? I don’t believe that. So why are only 2 Canadian VCs actively blogging and providing insights? Is it that there is a limited number of potential deals and VCs already see every interesting deal? Is it that they are worried about competing against US led deals and don’t want to expend the effort to write a high quality blog? Do Canadian VCs not understand the medium?

    It doesn’t matter. This is an open call for any Canadian VC to become an active blogger on StartupNorth.ca we’d love to have you write insightful pieces about the funding, market and landscape to help educate and inspire entrepreneurs.