StartupNorth

Category: British Columbia

  • CVCA – Global Customers, Investors and Acquirers – October 15th, 2008

    I will be speaking at the Canadian Venture Capital Association’s upcoming professional development day on October 15th. I will be on a panel with Rob Lane, from Overlay.TV and Maggie Fox from Social Media Group.

    Our session description is

    ?Going global” is no longer an option for many companies. It is a necessity. This session will examine issues and strategies in building international networks that will lead to business opportunities and enhanced returns. Learn how to link into international networks of customers, partners, acquirers and investors to better position your companies for global success. The role that social technologies can play in fostering these global networks will also be discussed.

    Other sessions include “THE BIG PICTURE ? KEY STRATEGIES FOR CREATING ESSENTIAL INTERNATIONAL NETWORKS” with Jennifer Brooy,Vice President, EDC Equity and Rajiv Pancholy, Chairman and CEO, TenXC Wireless as well as “RELATIONSHIPS WITH GLOBAL SYNDICATE PARTNERS AND ACQUIRERS ? THE VIEW FROM HOME AND ABROAD”

    It looks like a good day and if it is typical of CVCA events, the biggest value will be in having a chance to hang out with some of the other attendees who tend to be other startups (the smart ones go to CVCA events when they can afford them) and funders.

    The half-day event is $299 for non-CVCA members if you attend in-person in Toronto, and $70 if you watch it from one of the simulcast locations in Vancouver, Calgary, Winnipeg, Ottawa, Montreal, Quebec City, Fredricton or Halifax.

  • Founders and Funders Toronto Wrapup

    Founders and Funders Toronto took place this week and we had another sellout. We had just over 100 people who came out to hang out, pitch their startups and find fundable companies.

    A lot of food went cold however, as people could barely stay in their seats. The room was buzzing and so far the reviews have been great.

    Ali Asaria, from Well.ca, sent us a note that I think summed it up:

    “This was the first time we as a company were approached by investors, instead of us having to approach them. The atmosphere was relaxed, but at the same time there were always four simultaneous, deep discussions happening at our table on the subjects of investment, entrepreneurial stories, and industry trends.

    In one single night I was able to talk directly with five different VCs, and we had the time to talk about details of our business, without the “what’s your pitch?” awkwardness. I had the chance to sit next to some of Canada’s most successful entrepreneurs from whom I learned so many lessons. What a great event — it’s the next day now and I return to my desk energized!”

    A big thank you to our sponsors

     

    Founders and Funders Vancouver

    Boris has announced Founders and Funders Vancouver for June 17th. If you would like to attend the dinner, please fill out the following form and let us know who you are.

    As with the Montreal and Toronto dinners, Microsoft was gracious enough to sponsor Vancouver as well. These dinners really would not have been possible without them taking the lead and having a vision to help Canadian early-stage companies.

  • indochino.com takes new round of financing from Burda Digital

    Shanghai (by way of Victoria) based startup, Indochino.com, who we first profiled in September, and who I finally got around to ordering from a few weeks ago, has announced that they have taken a new round of financing from Burda Digital Ventures, a German Venture Capital group who have been very active in Western Canada, getting a lot of deals that Canadian VCs are missing including TeamPages, Suite101.com and Nexopia

    Indochino.com is a unique online retailer that specializes in custom-tailored suits, shirts and other apparel based on measurements done by the customer. I ordered a jacket and shirt from them a few weeks ago and I think I got a taste of both ends of the spectrum of ordering online.

    The shirt came and right out of the package it was hands down the nicest shirt I have ever bought. The fit was perfect and it looked and felt great. The jacket looked great as well, but a few of the measurements are off. So I printed off their claim form and will take the jacket to a tailor tomorrow. For the price however, the jacket is great.

    This round of financing is focused on building the operations back-end as well as scaling up to meet growing demand.

    This is a long way from where they were when I first profiled them just 8 months ago and things are looking up. I am looking forward to seeing what they do in the next 8 months with new financing and some more experience behind them.

  • Back to Reality – Vancouver Enterprise Forum

    index_r1_c3.jpgWhile the rest of us are sitting around moaning about the state of canadian venture capital, it appears that Vancouver is so over it, the Vancouver Enterprise Forum is at least.

    This Tuesday, November 27th, they are hosting “Beyond B.C. VCs – tips for Sourcing Tech Funding from American Venture Capitalists”

    In the November VEF event, we?ll hear from experienced American venture capitalists as they explain the fundamentals they look for when investing in B.C. and Canadian companies. How do you approach American VCs? What kind of information and potential do they want to see? What approach is best? These questions and more will be answered by Geoff Entress from Madrona of Seattle, which made an investment in Victoria based PixPo in 2006, and by Alex Gove of Walden Venture Capital of San Francisco.

    This is not a small matter for Vancouver, which has seen its share of startups heading south for funding.

    The catch? How long will startups stick around beautiful Vancouver, or anywhere in Canada, when their Venture Capitalist investors are beckoning them to come south. It starts with “let’s move the sales office”, and soon enough everyone but the developers are gone.

    This is a subject that we will be diving in to more here. Would you rather take funding outside of Canada, or would you consider it a secondary option? Considering how tightly connected Canada and the US are, does it even matter? Do we need to be doing more to make it easier for american funds to invest here?

  • Startup M&A – Raincity Studios acquires Bryght

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    Bryght, a Drupal managed hosting startup based in Vancouver, BC has been acquired by long time partner RainCity Studios, who have developed sites such as Ozzy.com and Ask a Ninja.

    While the terms of the deal weren’t disclosed, and I am not sure the number would be huge, this feels primarily like a smart consolidation of two very complimentary businesses. Servicing the same niche doesn’t necessarily mean two businesses should merge, but in this case the two organizations have been working together on so many projects, for so long, I have a feeling that this will be a chance to consolidate their efforts and cut some of the fat by re-directing effort.

    Many of the Bryght and RainCity Studios employees and partners are also responsible for the Northern Voice conference, which has been a huge hit for years.

    The new company is underway opening a new office in Shanghai, China, and my bet is that the renewed energy from this merger will result in a lot of cool projects in the near future. Kris Krug will be the President of the new organization with Robert Scales as CEO and running the European and Asian side of the company.

    I should also disclose: I have been a happy client of both of these companies in the past.

    Update: More straight from the source here.
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  • Coast to Coast: Amateur Sports Teams 2.0

    One of the first startups we profiled on StartupNorth was New Brunswick based Yourteamonline. Since then Yourteamonline has launched version 2.0 of their sports team management suite and added a slew of new features. In the meanwhile, Victoria based TeamPages has also risen in prominence.

    Both TeamPages and YourTeamOnline provide player pages, statistics, team pages and league interaction. It seems like we have a coast to coast fight for the amateur sports team demographic.

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    The market for amateur sports related spending in North America alone is $111 billion. More than enough room for two leaders, and even better if they are both from Canada. The amount of targeted advertising dollars up for grabs is staggering. Add on the amount of money that changes hands for local team sponsorships every year, and things are looking up!

    The first similarity I noticed was the abundant use of blue on both companies’ websites. The choice of colors is not where the similarities end however. And this is where I start to wonder a little.

    Both YourTeamOnline and TeamPages are marketing themselves as a generalized sports team management toolkit. If I were calling the shots here (which I am not!), I would approach each sport differently. YourTeamOnline is starting down this path, they have customized versions for Hockey and Soccer, but their marketing is still focused at a general market, which is going to be tougher to capture. This is the same strategy that every other competitor in the marketplace is using and it is going to be tough to stand out, even with a much better than average offering.

    YourTeamOnline and Teampages both focus on letting individuals, teams and leagues build social networks, and each have unique characteristics that, in my opinion, make them the two best team/league platforms out there. Where most competitive packages focus on the minutiae of managing a team, YourTeamOnline and TeamPages focus on the individual users, whether they are coaches, parents or players.

    I am also impressed with the roadmaps that both companies allude to on their sites. YourTeamOnline has plans to launch youtube-like video uploading and a feature called “SportsWire” that helps get team statistics out to the public, newspapers, and other consumers of team data.

    Is this a clash of the titans? A fight to the death? Jackie Chan vs. Chow Yun Fat? I think it is probably more the result of an overdue idea and a huge market, with scalable revenue opportunities. Will there be one winner, or two? We’ll be watching to find out.

    YourTeamOnline and Teampages have each taken early-stage funding.

  • BC Startup Competition – Dec. 17 Deadline

    bplanlogo.gifFear not, the east coast is not the only part of the country with a startup competition. Small Business BC is hosting their own business plan competition.

    There are separate categories for startups and for more mature growth businesses. Each category is up for a $40,000 prize (we think, it’s not clear).

    This contest seems pretty well run, and is much more open in terms of the types of businesses that can apply, but it also seems to have a much less attractive prize package. There may be ancillary prizes we just aren’t aware of yet however.

    They are also very prescriptive of how your business plan should look which doesn’t nessecarily mean that they will find the best startups, or the best entrepreneurs, instead they may just find the best darn bunch of business plan writers in BC.

    Business Plans aren’t always where you should be spending your time, instead I think that a competition like this should leave the criteria much more open and should simply judge each entrepreneur and business based on how well the idea is presented.

    Only a few tech startups have won in the past.

  • ThoughtFarmer – Facebook for the Enterprise

    Thought Farmer LogoThoughtFarmer, based in Vancouver, BC, is a startup in the hot enterprise 2.0 space. Why is the sector so exciting? Because it is changing enterprise work flow, knowledge sharing, and collaboration. Try imagining university before Facebook.

    ThoughtFarmer’s journey began with a consulting project in 2004; a client wanted an engaging intranet and knowledge repository, all without staff dedicated to the project. The solution… a wiki. The product developed from there, inspired by JotSpot and the growing importance of social networks.

    ThoughtFarmer sold its first license in 2006. Yep, this is behind-the-firewall software. With companies large and small racing toward the era of software as a service, this is an almost contrarian bet. It will be interesting to follow this company and see how it all plays out. One last thing… ThoughtFarmer is profitable and not seeking funding.

    Contact: Chris McGrath

  • indochino.com – Look good and spend a little less

    The beta tag has come to retailing. Online retailing that is.

    Indochino is a Victoria, BC startup that is trying to bring made-to-measure suits to customers who want to look good, but don’t want to spend a fortune on Hugo Boss, or whatever the must-have designer suit is this season.

    An entire suit, which looks pretty good in the pictures on their site, will cost between 250$ and 350$ Canadian. Their pricing is no-nonsense, duties are taken care of and if you need to have further alterations done, Indochino will pay your tailer up to 25$ for the work. Delivery time is 2 weeks from your order, and that includes being hand-tailored in Shanghai, China.

    Shirts are a little more expensive. 100$ to 150$ for a shirt, which I am sure is nice, but Indochino has the problem that their brand is not strongly differentiated — which means it is hard to convince someone to spend that much on a shirt they haven’t seen in person.

    The market for a service like this is huge. Every large city is full of middle aged and younger men who want to look good, but really don’t feel like shopping all the time. If Indochino can find a way to open up this market, then their business will grow dramatically.

    Kyle from Indochino tells me they plan to keep up to date on new trends and styles, in a similar strategy as Zara and H&M. I think this is smart, as it lets you keep selling a lot of new clothing to a young to middle-aged demographic, but I keep thinking that the name “Indochino” isn’t sustainable long-term. It pigeon-holes the offering and limited their horizontal mobility later on. I’d like to hear from them on this.

    These guys don’t sit still however, they are already experimenting in BC with an option that involves having a tailor come right to your house to measure you for your suit. If you aren’t in BC, you can have a sample of cloth sent to you along with a tape-measure, so you can measure yourself. Indochino already has a few hundred customers, and I am sure that will grow to thousands soon.

    Their operation is lean — no inventory or exposure season to season — but they are going to have to do something significant to stand out from the crowd. A strategy focused on driving sales through social networks could, in my opinion, really set these guys apart. I have shared some of those ideas with them directly, so won’t post them here.

    Indochino is a real business with a solid international infrastructure in place, they have the backing of a strong group of angels and their product is good and stylish (I will hopefully upgrade that to great when I have a chance to order my own jacket this week). Now it’s time to break away from the pack and stand out.

    Indochino is tentatively looking at raising a new round of financing based on their early success. Contact Kyle Vucko.
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  • Mickey Mouse devours Club Penguin

    Disney2Club Penguin, based in Kelowna, has been acquired by Disney for $700M. In an open letter announcing the acquisition, the site’s founders promise to keep the site free of advertising and hint at site localization. Sony had previously attempted to acquire Club Penguin for $500M. This is a huge exit for founders Lane, Dave, and Lance. Congratulations!