StartupNorth

Category: Canada

  • Looking for a direct line to Silicon Valley

    Editor’s Note: This is a guest post by Mark Silva (LinkedIn, @marksilva), SVP Emerging Platforms at Anthem Worldwide. He was in attendance at GrowConf 2011. 

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    There’s a different business DNA here in Silicon Valley and there’s no other start-up ecosystem like it anywhere in the world.  We are the descendants of miners, pioneers, and manifest destiny. We’re comfortable crafting real value from the clay of chaos. In the 49er days you weren’t a failure if your mine went dry, only if you quit and that attitude persists here today. I always tell startups, if they’re serious, they need to come to Silicon Valley.  It’s tough enough to start a business. Why not start with an unfair advantage and remove some of those obstacles you face with an ecosystem that can help solve your biggest and smallest issues?

    GrowConf Aug 22-24, 2012 in VancouverThat being said, you’re not doomed if you decide to start a business somewhere else.  Events like the GROW Conference in Vancouver have made the Silicon Valley ecosystem mobile and if only for a few days, you can have the Valley brought to you.  Between the speakers, mentors, investors, companies, and accelerators, GROW Week is like a high speed rail to Silicon Valley with exclusive access to the right players.

    As we all know, there’s a serious echo chamber in Silicon Valley, and the chance to get out of our caves and be in new places is healthy and promotes good ideas.  I find that when I attend a good conference or event, I end up having more in depth conversations over the course of a few days with people I care about than I do in any other situation.

    Some of the highlights for me from GROW last year were getting to know Vy Le, CEO of Rudy’s Barbershop, spending time with top Silicon Valley VCs like Chris Redlitz, Jeff Clavier and Rob Hayes, and networking with fellow mentors like Matt Galligan and Lane Becker from Get Satisfaction.  How awesome is that!?

    GROW is the closest thing to a “Valley” experience outside of the Valley, and Vancouver is one of the most beautiful backdrops to inspire collaboration, discussion and innovation. I’ve never met a Canadian I didn’t like, and I’ll put that challenge to the test when I return to GROW in August!

    Join Mark Silva, Julia Hartz, Sean Ellis, Dave McClure, David Cancel and others at GROW August 22-24th in Vancouver, BC

    Register for GROW with a $100 discount using the promotional code “SN” at http://growconf.eventbrite.com/

    Editor’s Note: This is a guest post by Mark Silva (LinkedIn, @marksilva), SVP Emerging Platforms at Anthem Worldwide. He was in attendance at GrowConf 2011. 

  • 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

  • A few slides for every Canadian startup

    With a little help from my friends

    I think that every Canadian startup could throw a couple of slides in their presentations and pitch decks that could help themselves and help build a stronger ecosystem in Canada. I was struck by the story of Jon Medved in Startup Nation including other startups in his pitch deck. It’s a simple thing. It demonstrates entrepreneurial density, provides social proof, and potentially helps create some FOMO in foreign investors. All from including 2 or 3 slides at the end of your presentation or pitch deck, particularly when you are travelling.

    At StartupNorth, we’ve always believed that we as entrepreneurs should help each other out. The goal here is to raise the noise around Canadian startups and your friends and colleagues when you are travelling. There is a lot of amazing stuff going on in Canada. We don’t need public sector programs and not-for-profits to support us, we already do the things to grow our companies. And a little bit of extra effort to raise the attention of those around us. It won’t hurt, it will help.

    Here are basic un-styled PowerPoint slides that include a set of recent fundings in Canada by US VCs and a second slide that lists a set of other local companies that the audience might find interesting. (I have added 24 companies I think are interesting).

    Help us. Add the following slides to your presentations.

    StartupNorth.ca Slides for Canadian Startups

    View more PowerPoint from David Crow

  • Microsoft, WPC and Entrepreneurs in Toronto

    Microsoft <3 Entrepreneurs - WPC Party

    Did you know that 15,000 global players in the Microsoft ecosystem are descending on Toronto in July? Microsoft Worldwide Partner Conference (WPC) is happening July 8-12, 2012 at the ACC and the MTCC. That’s a lot of people building on the stack. The BizSpark One program was one that I championed during my time at the Microsoft, and there are a lot of Canadian companies that are building on the Microsoft stack:

    Mark Relph (LinkedIn, @mrelph) and the Redmond and Silicon Valley crews will be in Toronto. Mark used to be my boss at Microsoft Canada, and has subsequently caught the startup bug. He’s helping startups through BizSpark and BizSpark One programs. Along with the folks from a far, Christian Beauclair (LinkedIn, @cbeauclair) and Shane Davies (LinkedIn) will also be around to support Canadian startups.

    And whether you love or hate the Microsoft stack, they are trying to move to greater independence to enable developers. Microsoft is looking for ways to help startups, BizSpark, Azure and other programs like Kinect Accelerator make it easier to understand why.

    Why not join WPC attendees and other startups on July 10 at MaRS?

     

  • We can’t all be founders

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    “We can’t all be heroes because somebody has to sit on the curb and clap as they go by.” – Will Rogers

    It’s true now even more than when Joe Kraus (@jkraus) wrote in 2005 (original post), “it’s a great time to be an entrepreneur” (see Mark Suster’s brillant post on the startup explosion and on changes in the software industry). But is there too much of a good thing? Mark Evans asks if there “are too many startups?”. I think the question that Mark is really asking is not are there too many startups, but is it too easy to become a founder.

    We put a lot of focus on the founders of early stage ventures. But let’s face it, not everyone is or should be a founder (See: Founders versus Early Employees). We need to start and grow companies. This is more than just a whole bunch of 1 and 2 person pre-seed startups. We need people to want to cut their chops at Wattpad, Wave Accounting, Well.ca, Lightspeed Retail, Fixmo, Shopify, Kik, Hootsuite and other startups. People that can grow a company to 500 million users and beyond.

    “Being an early hire at a startup gives an individual the ability to make tremendous impact on an organization as it grows – and both the founders and those hires should know it.” David Beisel

    We need to create companies that create opportunities for employees to become their Chamath Palihapitiya and Andy Johns or Adam Nash. There are a number of Canadian startups that are poised to break out. All they need is a few key people to make a huge difference. I tried to highlight a mix of founders and the people behind the scenes on the Hot Sh!t List (2011, 2012). There are the founders that we always talk about, but there are people behind the scenes that are driving.

    “Cross-pollination among companies is what drives so much of innovation, so I would not project a lot onto this event” – Brett Taylor (@btaylor)

    We’ve seen a number of young founders build brillant products and then move to new roles. Josh Davey (@joshdavey, LinkedIn) founded BurstN and is now killing it at Chango. Daniel Patricio (LinkedIn, @danielparticio) founded Pinpoint Social and is building products at Jet Cooper. Ben Yoskovitz (LinkedIn, @byosko) founded StandoutJobs and NextMontreal, is now the VP Product at GoInstant. There are lots of opportunities at Canadian startups for entrepreneurial employees to make a huge impact!

    Looking for a gig at a Canadian startup? Check out the StartupNorth Job board which features jobs like:

    More reading on starting your own vs joining a startup:

     

  • Round13 Capital puts founders first

    Scott Pelton, Bruce Croxon and John Eckert - Round13 Capital

    Round 13 CapitalWhat’s interesting about the Round13 Capital announcement today isn’t the size of the fund – they are targeting $100MM. It isn’t the people who are involved – they are amazing. It isn’t the LPs – they are different. The team, Bruce Croxon, John Eckert and Scott Pelton, are bringing together a group of entrepreneurs to serve as mentors. This is not uncommon in the US with a number of funds like SoftTech VC, Felicis Ventures, Founders Fund and similar to Founder Collective (if you are interested read the Kauffman Foundation’s Do Entrepreneurs Make Good VCs? [PDF]).

    “Venture capital firms with a greater fraction of entrepreneur VCs have better firm performance. The positive relation between entrepreneur VCs and performance is stronger for venture capital firms specializing in high-tech industries and in early-stage investment.”
    — Do Entrepreneurs Make Good VCs – Entrepreneurial Finance and Innovation Conference – The Kauffman Foundation

    The Round13 Capital team has done an amazing job of bring together founders with exits as both LPs in the fund, and more importantly as mentors for their portfolio companies. This is a critical differentiator for Canadian entrepreneurs. Hopefully the Round13 fund will close and they can start funding Canadian entrepreneurs soon.

    Round13 Investors/Founders

    This is great new for Canadian entrepreneurs!

  • Go big and stay home

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    Wattpad announced today a $17.3MM raise from Khosla Ventures, Golden Venture Partners, Union Square Ventures and Jerry Yang. This is huge.

    “It has been recognized as highly significant due to having two top-tier US funds investing at this level in a Canadian-based consumer internet company.”

    We are seeing Canadian entrepreneurs build companies and demonstrate global traction. The changes to foreign investment related to Section 116 changes in the Tax Act, have allowed Canadian companies to go big and stay home.  The changes to Section 116, coupled with the desire of Canadian entrepreneurs to go big and stay home. Evidenced by Wattpad’s big raise, Wave Accounting’s $12MM series B from Social+Capital, Hootsuite’s $20MM round from OMERS (sure they’re not foreign capital but its a big round), Shopify’s $22MM ($7M series A + $15M series B from Bessemer), Beyond The Rack’s $36MM raise, Fixmo’s $23.4MM Series C from KPCB, Achievers’ $24.5MM Series C from Sequoia, and others. There are startups and there is capital. It’s possible to build a growth company in Canada and raise foreign capital. The game has changed for Canadian VCs, geography limitations can help these funds identify early but it potentially will relegate many to second tier status if they can not enable their startups beyond their geographies.

    The great thing in talking with many of these entrepreneurs is that they want to build successful companies in Canada. Allen Lau, CEO of Wattpad, mentioned that his desire was to grow a large successful company in Toronto. He is not looking to move the company. The same is true of my conversations with Kirk Simpson at Wave Accounting, Tobi at Shopify, Mike at Freshbooks, etc. There are a lot of reasons to want to be way from the tensions and pulls the exist in the Bay Area. Canadian startups have access to great talent. While there is some pull between the different startups, many of these companies aren’t competing with each other for employees or mindshare. Just check out Shopify’s recruiting video and tell me why you wouldn’t choose to work for Harley and Tobi instead of a financial institution or a government organization.

    It’s a great time to be an entrepreneur in Canada. It’s a great time to work for a startup. You should check out the opportunities on the StartupNorth job board.

  • Hot Sh!t List 2012

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    We have been tracking startups and people for a while. In 2011 was the first Hot Sh!t List, but it won’t be the last. There are a number of amazing individuals in the ecosystem like Mark MacLeod (LinkedIn, @startupcfo), Boris Wertz (LinkedIn, @bwertz), Dan Morel (LinkedIn, @dpmorel), Debbie Landa (LinkedIn, @deblanda), Chris Arsenault (LinkedIn, @chrisarsenault), Dan Martell (LinkedIn, @danmartell), Jesse Rodgers (LinkedIn, @jrodgers) and others. Over the past 7 years the community has grown, and connected, and continues to help each other.

    But this list is different.

    It’s not about the people who have raised the most money, or who have the biggest social graphs. It’s about who we expect to talk about over the next 12 months. Be it the ideas, the companies, the impact, etc. My goal was to find a mix of the unsung heroes, the founders, the developers, the doers, the troublemakers and the faces of different companies across Canada that we think are amazing/interesting. What do I mean by “interesting”? Well it depends. But these people are doing the stuff we’ll be talking about over the next 12 months.

    The list is no particular order. But there is no denying it, these folks are the:

    StartupNorth Hot Sh!t 2012 BadgeHot Sh!t List 2012

     

  • Canadian VCs are being cut loose, and that’s a good thing

    Mark MacLeod just wrote a post about Canadian VC that cuts to the chase

    If there are any clouds on the horizon, they relate to the disappearance of the US / Canadian border when it comes to VC. When I first entered the startup World, you had no choice but to raise seed and series A in Canada. Only then could you tap the US funding markets. That’s no longer the case.

    [ . . . ]

    There is a perception (rightly or wrongly) that US investors are better than Canadian ones. And that given the choice, founders would raise in the US. Whether this is true or not is not the point. It’s the perception and with the borders coming down it represents a real risk to Canadian investors.

    Mark did it in the nicest possible way, so a lot of people may not have noticed that he just condemned the entire Canadian VC model. It was something I didn’t even have the guts to do lately, so I was surprised to see Mark call the spade a Spade and get on with the conversation.

    The border is gone and the game has changed. Mark argues that Canadian VCs need to pay up more, build their brands and build their networks. That’s a great start.

    Canadian entrepreneurs have been told for years to step up and build global companies. It was hard and confusing to hear at first, but I think we’ve managed to do it. Whether it is Tobi in Ottawa, Kirk in Toronto, Ryan in Vancouver, Oleg in Toronto, Mike in Toronto, Kenshi Wilkins and Eric in Vancouver, Yona in Montreal, Temo in Montreal etc etc etc [I’ve missed so many here — more to come on David’s Hot Shit List] — I would argue that Canada is producing more world-class entrepreneurs more quickly than ever before.

    We’ve spent the last 10 years being told we weren’t bold enough and need to think bigger. The argument has shifted and our startups now know what it means to be world class and they are doing it.

    It’s time for the Canadian VCs to step up and do the same.

    It doesn’t take nearly as much to get a US based VC to take a look at a Canadian deal anymore. If they have never done a deal in Canada before they usually have a friend who is just a call away who has and it can be demystified pretty quickly. The legal headaches are gone as well.

    If you are a VC in Canada, focused on the Canadian market, then you have far more competition for deals now than you did even a few years ago and the job is more thankless than it has ever been.

    So here’s the challenge for the the new players in Canada. Rho, Celtic, OMERS, iNovia, Relay, Golden, Klass, Wertz, Round13, etc…

    Entrepreneurs are going to start telling a story about under-paying, small thinking and isolated VCs. As US VCs roll off the redeyes in to Vancouver, Edmonton, Toronto, Montreal, Halifax and elsewhere it should be you who is bringing them to town to see great deals which are priced right and which are built to succeed from right here in Canada.

    The challenge is that you, like the entrepreneurs you fund, now have to be world class. That probably means being on a plane more often and pulling the trigger on deals within days, not months.

    Nobody should start a VC fund in Canada today unless they want to work as hard or harder than any startup founder they will fund.  It is no longer a job for ex-bankers and management consulting dropouts. The job is hard, mostly thankless, and more competitive than ever.

    That’s why I love this shakeout we have undergone and the one that is continuing today. VC in Canada had to go through the wringer so that we could end up with a handful of the best and most capable operators who can help springboard Canada further on to the world stage. We aren’t going to do it through myopic provincial funds, big corporate funds or economic development agencies.

    It’s going to happen through hungry hustler GPs who have something to prove and only a little time to do it in.

    Canadian VCs need to be startups themselves, because in the end only Startups can save venture capital in Canada.

  • Find a cofounder

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    When Jevon and Jonas and I first met back in 2006 it was because we shared an interest in early stage, emerging technology companies. We were excited to have found other people in Toronto that were interested in the same things. Startups. Technology. Emerging business models. Funding. It was great. It was early days, it was easy to connect with others to figure out who was interested. And to move things forward. We wrote about the stuff we found interesting, hosted events that we wanted to attend (anyone remember StartupEmpire), and have tried to be tireless promoters of high potential growth technology startups in Canada. We’ve tried to connect engineers and designers. But as the community has grown we’ve done a very good job outside of repeated participation at events in connecting potential cofounders.

    How do you meet a cofounder?

    This is where Founder Dating comes in.

    FounderDating brings together super talented entrepreneurs with different backgrounds and skill sets to start innovative new companies. All too often you know people with similar backgrounds and skills sets to your own.  We help you find co-founders with complimentary skill sets.

    The thing that Founder Dating brings that are crucial:

    • High Quality – everyone is screened for quality and readiness. Applications and members’ identities are confidential (many have jobs still) but a few of the folks who are part of the network are founders or early employees from: Stackmob, Snapfish, Zynga, Gilt and Loggly, just to name a few.
    • Balanced – member base is 50% engineers/50% non-engineers
    As Paul Graham says, “Not having a cofounder is a real problem. A startup is too much for one person to bear.”  It’s true you want someone complimentary in skill sets, but you also want someone who is going to be able to weather the ups and downs with you.

    What Founder Dating is Not

    1. They are not “speed dating for cofounders” – they don’t do speed dating, never have, never will.
    2. You do NOT need an idea to apply.  Just need to be ready to start something or at least work on a meaningful side-project (20ish hrs/week).
    3. This is NOT only for first-time entrepreneurs – a huge % of our members are repeat entrepreneurs
    4. FounderDating is NOT a meetup/event – per the above, we’re an online network and as first introduction to your round and the community you’re invited to an initial event but the power is in the network you become a part of.

    We need to unlock Founder Dating for Toronto. Get on it!