Author: Jonas Brandon

  • 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.

  • Just being a web startup shouldn't be good enough for you

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    A few weeks ago I posted my thoughts on what being a startup should really be about.

    I know some people don’t like posts like that, because it goes against the "you rock!" back-patting mentality of a room full of entrepreneurs. But it seems just having a website is often good enough to get all the congratulations you want.

    Of course, I love cheerleaders.

    People who connect startups to people they need to know and who they can work with. Anyone can tell you that when I like a startup, I love them. I make phone calls, introductions, and provide whatever help I can. I never get paid for it, I just do what I can.

    The truth though, is that being a web business is a lot different than it used to be and the formula is changing. You can no longer just be the online-version of a bookstore or anything else. You have to compete on the web with other retailers, service providers, and products.

    Just because you can do something on the web doesn’t mean you should.

    It is easier than ever to get things started and to manage the costs of being a web startup, but it is harder than ever to get distribution. The Facebook App mania and the mass migration to the iPhone give you an idea of the thirst for distribution that developers have right now. If you get to the distribution channel early, and you build something that is perfectly timed, then you can win in the short term.

    In the long term however, aggregators arise, and distribution gets consolidated. This same race is the one that killed movie producers decades ago, and indie game developers more recently. As Jonas pointed out, managing costs is only a small part of the equation.

    Building something on the web is still the best place to do it.

    • The web reduces costs.
    • The web gives you direct and wide distribution.
    • The web gives you more opportunities for scale.

    But as I pointed out, those things do not come as easily as they used to, and all of the stories and advice you have heard in the last 10 years have a timer on them. They are quickly becoming irrelevant.

    People put a premium on speed right now, it is called Shiny Object Syndrome and it has been very real both in the market and with entrepreneurs. Building on the web is no longer going to be about being first and being quick, it is going to be about being better and being reliable.

    Don’t get caught building something because it is quick, easy, and the distribution is free.

    Those aren’t good enough reasons anymore.

  • StartupDrinks Halifax #1 – Tonight

    If you are in Halifax tonight, come to the Loose Cannon for StartupDrinks. This is the first of what will hopefully be a regular set of startup community events in Halifax in the coming year.

    I’ll be there to meet some new people and talk startups.

    Thanks to Jeff White for making this happen.

  • What is being a startup really about?

    Being a startup is definitely a badge of honour these days. It always has been, but it seems to have taken on some whole new meaning. I think part of the reason is that starting a startup is now a more accessible dream than ever. You know the deal: cheap development costs, smarter money, more supportive communities.

    There is a tipping point however. A point of no return where your romanticization of what a startup is goes form constructive to destructive.

    So I am here to say that I have been staying up late, leaving the porch light on.

    First, I have some ideas about what being a startup is not about

    The first thing to remember is that everything you have been told about what startups should or shouldn’t do is all bullshit. Every industry, geography, product, and approach is unique and those are the primary determining factors in how you do business. Depending on the resources and opportunities available to you, you may have to do things completely differently than a startup located somewhere else. The people telling you that it is done “this way” or that way obviously haven’t done it before.

    And then there is the fact that most of the people you are listening to are more successful at getting attention than they are at actually running a business. They are hyper networkers and quite influential, but they are not role models. Being a startup is not about being a personality. It helps, but it isn’t the endgame.

    Don’t forget that partying != networking. It’s ok to go out and have a good time, but please do not tell yourself that it is business, no matter who you are rubbing shoulders with. That goes for conferences and the idea that being involved in “the community” is important to your business. Being in the community is important to you, but being in front of your customers is what is important to your startup. Learn to balance this.

    So, what is being a startup about? I can give you some ideas.

    Creating. More than anything, a startup has to be about creating something new. This is the primary part of the definition that separates Startups from Service Providers. Founders and early employees need to be willing to get their hands dirty in the clay in order to shape something unique.

    Seeing. There is no science to being a startup, so your best bet is to get your paintbrush and play the artist. Anyone who takes a scientific approach to creating a startup may get lucky, but they won’t be able to handle the certain uncertainties of startup life. Being a startup is about designing a future for your product, company, culture and market that you will be able to realize, but the mechanics of which you are able to create as you go.

    Discipline. This is an easy one to forget. Every flaw you have will be magnified under the lens of money, people and uncertainty. Stay focused.

    Ignorance. There is always a reason why what you are doing won’t work. You need to learn to ignore the opinions and objections that don’t matter. Your job is to prove them wrong. Some advice just isn’t worth taking.

  • GigPark.com acquired by CanPages

    Gigpark logoIt’s hard not to like Pema and Noah. The two founders of GigPark have been two of the hardest working and (more importantly) most focused founders to have come out of Toronto in the last few years.

    We first covered GigPark in February 2008. I loved the site, and the focus on maintaining the integrity of the social network, but I wondered whether they could build the mass needed to go from walled garden to healthy ecosystem. Then, earlier this year GigPark partnered with Metro, a free national newspaper.

    Today CanPages is announcing that they have acquired GigPark. The deal also received a nice mention in the Globe and Mail.

    Pema and Noah are examples of what a laser focus on product will get you. They released early and they continued to develop GigPark with regular releases and improvements. The key here though is that they got the product out early and didn’t try to come up with the perfect product from day one.

    When I first started using GigPark, I didn’t remember to go back to the site regularly, but over time GigPark became an integral part of how I found new places to eat and businesses to call. As my network slowly grew, it became not just useful, but critical.

    I am feeling especially proud to know these guys and to have had the chance to watch them grow from first release to acquisition. They have been behind-the-scene supporters of a lot of the community and have always encouraged the entire Toronto community.

    Noah and Pema will be staying in the CanPages family for a little while, but I am sure it won’t be long before they are back in action.

  • MeshU/StartupNorth party – April 6 2009

    We are slowly emerging from our cave, and finally setting a date. On April 6th, MeshU, the startup and developer conference that runs the day before the Mesh Conference, will be having a social. It is a chance to hang out and talk startups.

    There really haven’t been many events in Toronto lately, so this is a chance to start things up again after a successful Democamp last month.

    Here are the details. See you there?

    meshUp
    The beer o’clock at the Drake Hotel brought to you by meshU and StartupNorth

    Time: 6 p.m. to close
    Where: The Lounge & Dining Room
    Drake Hotel, 1150 Queen St. West

    Everyone is welcome. Space is limited. There is no charge for this event.

    Thanks to our hospitality sponsor and host: Drake Hotel

  • Porn Shops and Tech – Toronto's Silicon Valley

    Startup activity in Canada stalling? VC investment dying?

    Well folks, problem solved.

    050829lIt’s hard to know what to say about efforts like this. I guess that where I believe physical clusters are a sign of success, government officials and universities believe that they are a precursor to success. To that end, more money is being spent building the new Silicon Valley North, this time it is smack in the middle of the porn shop and peepshow strip in Toronto.

    Pun intended?

    What frustrates me the most about things like this, and other projects is that I know there are smart people working within government who understand what technology, software and web startups need, but as those people plug away trying to help startups, programs and projects like this are announced that undermine everything the smart folks have done.

    Everyone wants to go big right away. To hit a grand-slam home-run if only we can just build the right building, or create the right program. There is no evidence however that any of this stuff has ever worked before.

    If beaurocrats and politicians want to have an impact here, then the reality of what needs to be done will be a lot less glamorous. It means Democamp’s at the Imperial Pub and StartupEmpire‘s at cheap nightclubs.

    The only good part of this announcement is that Ryerson is in on the action. I think that school is great and a place that turns out hard workers and great entrepreneurs.

    In the end, it doesn’t matter, Toronto’s tech community (for whom I am not the voice, but just one voice) has long given up on government programs and venture capital. We have focused on getting really good at finding the winners early on, and we are going to start capitalizing on that skill soon. We have to.

    So, the next time you walk up Yonge Street looking for a Kabab or a fake ID, take a look around and imagine, for just one second, what an office on the top floor of Zanzibar would be like.

  • MeshU speakers announced – April 6 2009

    The Canadian media conference, Mesh, started a spinoff conference last year focused on startups, designers and developers and they have just announced some of the speakers who will be there this year.

    MeshU is a very distinct conference from the larger Mesh Conference. Where Mesh is focused on networking, media and web, MeshU is all about the nuts and bolts of building for the web and running a dev shop.

    Mike Mcderment is the driving force behind MeshU and he brings all the street cred you could ask for. As the founder of Freshbooks he has grown the company from 2 people to well over 20 and they have become one of the biggest players in online finance applications, let alone Online Invoicing which is a market they helped define.

    The feedback from MeshU was great last year and I am glad to see it moving ahead this year.

  • Defensio.com acquired by Websense

    Defensio.com, who we first wrote about in November 2007, are announcing today that they have been acquired by Websense. The Montreal based company also presented at StartupCamp Toronto in December 2007.

    This acquisition, the size of which is undisclosed but I am assured it is “significant”, send a few signals to the startup community. The biggest one is that things are still happening even in this “nuclear winter” as some are calling it, and more importantly: Good products and businesses are still worth something.

    When Defensio launched, I took some flak for endorsing them. A lot of people said that “akismet does that”, and it was true, Akismet did do a lot of the same things. In using the service it was noticibly better. I am planning on going back to them.

    Carl also assures me that the Defensio anti-spam service for comments on non-commercial blogs will remain free under their new parent company.

    Websense remains committed to the Defensio developer community and plans to support and enhance the platform for personal users, as well as for commercial use.  The company also plans to continue to offer the comment spam filter at no charge for personal use, while offering a new six month commercial trial at no cost. “The combination of Defensio and Websense is a coup for Web 2.0 developers looking for strong anti-spam and security capabilities,” said Carl Mercier, who founded Defensio and has joined Websense as director of software development. “Imagine if Web 2.0 developers could access an API so their applications could determine if user-generated content is malicious or unwanted – without having to embed anything in their applications or products. We see strong potential to partner with social networking platforms, enterprises and hosting providers to enable advanced  Web 2.0 security with the Defensio solution.”

    When I profiled defensio in 2007 I said that while they might take a run at Akismet’s main business (blog comments), their real opportunity is to find new markets for these collaborative anti-spam tools. That is just what they have done and it is where Websense sees the future of the tool. Websense offers a suite of security and content related tools and Defensio looks like a perfect fit.

    If Defensio can provide a higher level of integration support and a better protection product, then they will be able to win some customers over from Akismet, but it is absolutely going to be a hard-fought battle, with everyone trying to row the boat a little harder in order to win.

    The real opportunity for Defensio however is to raid the markets that Akismet has left untouched. Where Akismet has proven the technology, and opened an initial market which Defensio can sell to, they are also leaving peripheral markets completely alone. – 2007

    The team at Defensio deserve credit for a win and a good start to 2009 for the Montreal community and Canada in general.

    There are rumors of more great announcements to come, pehaps 2009 won’t be so bad afterall?

  • Dex goes on the road – Social and Personal CRM

    Dex, a new social CRM application from MercuryGrove is doing a roadshow for the next few weeks to demo their release and spread the word.

    I have been excited about Dex since Mercury Rising was announced.

    This has been such a great, collaborative journey that we decided the best way to tell people about dex was to go tell people about dex. So we’re packing up our best suits, dressing dex up really nice, and taking her on the road to tell people about our development experience, show them the final result (beta), and hopefully get a lot of great feedback that we can jam into the first release!

    Here is the schedule:

    • Toronto – Tuesday, January 20th @ CSI
    • Ottawa – Wednesday, January 21st @ The Code Factory
    • Montreal – Thursday, January 22nd
    • New York – Monday, January 26th @ New Work City
    • Boston – Wednesday, January 28th @ BetaHouse
    • Philadelphia – Thursday, January 29th, 6pm @ Indy Hall