StartupNorth

Category: Ontario

  • Founders & Funders: Nov 18, 2014

    It’s that time again – to bringing together the people that start emerging technology businesses and the people that fund them, early.

    Who should attend?

    Uhm, yeah. Founders & Funders.

    Founders

    You are a founder of a emerging technology company or a technology-enabled company. You are actively raising a round of capital or starting to think about raising your next round. Feels like we’re leaning to Seed and Series A – basically if you’re name is Tobi or Ryan most investors know who you are 😉

    Funders

    Space for funders will be limited. We have room for approximately 60 people. And we like to keep the ratio of 3:1 founders to funders. This means we roughly have room for 15 funders. We’re going to be picky, the target will be Seed and Series A.

    Why should you attend?

    Relatively small and intimate gathering of other emerging technology company founders and the people that fund them. The funder mix ranges from individuals that write first and very small cheques to larger institutional funds.

    • Social event – no formal pitches
    • Community is the framework – chance to talk to other founders about the current fundraising climate

    What to expect?

    It is a chance to have a bite to eat and a drink with other founders and investors that are actively investing in Toronto companies. It’s a chance to figure what has worked for others, to figure out which investors you want to spend more time with, and just connect.

    How do I attend?

    Submissions will end on Nov 10.

  • How we raised a $2MM seed round in 2 weeks

    This is a guest post by Mike Katchen, founder of Wealthsimple, Canada’s first online investment manager. He recently moved back from San Francisco where he led marketing at 1000memories (YC S’10, acquired by Ancestry.com).

    In May, we raised a $2MM seed round for Wealthsimple (and didn’t really tell anyone). It took us 2.5 weeks to raise from 15 amazing investors in Toronto including David Ossip, Dan Debow, and Roger Martin. Here are a few tips based on what I think we did right.

    Note: Table stakes for seed rounds are a good idea (in a massive market) and a killer team.

    1. Find your lead investor early.
    Most first-time founders I know make the same mistake. They think that fundraising is about convincing investors of the merits of your idea and the strength of your team. Unfortunately, that’s bullsh*t. Investors follow the herd. They care more about who else is investing than what you do as a company. When you start to fundraise, laser-focus on getting your first investor. Don’t go broad until you have your lead lined up.

    I met our lead investor the day we started fundraising. He is an icon in the financial services industry. We got him on board through a combination of special terms and appealing to him emotionally about building his industry “legacy”. It took 2 meetings over 1 week to get him to sign. Once he was in, it took 1.5 weeks to close the round.

    2. Your angel investors don’t have to be in tech.
    We closed our round with 14 angel investors, only 5 are from tech. The other 9 are from financial services. I see lots of entrepreneurs focus exclusively on local tech angels and VCs like those listed in this great post by David Crow. That’s a mistake. Look for successful entrepreneurs and executives in your industry – you’re likely to find a sizeable group of potential investors that actually know your business. A few industries with strong local investors include real estate, financial services, professional services, and healthcare.

    3. Most decks suck. Make yours good.
    A compelling deck is short, clear, and well designed. If you have a solid story (don’t forget the table stakes above), then tell it in 4-5 pages: (1) what you do, (2) market size, (3) team, (4) growth plan, (5, optional) competition. Here’s our pitch. You can also find great examples at bestpitchdecks.com. Keep it short, pretty, and exciting.

    4. Set a deadline.
    Fundraising has a nasty habit of dragging on. As soon as you have your lead investor, set a closing date (2-3 weeks out) and use that to drive urgency with other investors. You don’t have to stick to it, but you’ll find that things move way faster with a deadline.

    5. Put some money in yourself (if you can). It goes a long way.
    The Wealthsimple team were the first investors in our seed round. If you can afford it, investing in your own round goes a long way. It signals to investors that you are committed, aligned, and will be a responsible steward of their capital. Surprisingly few teams invest in their own rounds so it can also help you stand out.

    Let me know if you have any tips to add or want to discuss fundraising strategies – always happy to chat. You can reach me at [email protected] or @mkatchen

  • Searching for life on MaRS

    MaRS Phase 2. This does not bode well...
    MaRS Phase 2. This does not bode well…

    Yesterday afternoon I decided to visit MaRS and see for myself… just how empty (or occupied) is Phase 2?

    Of the 20 floors, only 3 had any tenants. And all but 1 tenant (a clean tech fund with 2 errr vultures according to MaRS 101 h/t Mark McQueen, but in my estimation exceedingly nice guys) were provincially funded organizations! Not one startup to be found in Phase 2.

    It is a new building after all… so unfazed, I continued on to Phase 1 which has been open for years. If PR statements are to be believed surely I’d find a hive of startup activity.

    I saw a sign for Execusuites… perhaps this is where the serial entrepreneurs have set up shop?

    So I turned down a dark hall to find… empty offices (again the listed tenants almost entirely provincially funded agencies), there was one lonely but pleasant provincial employee at her desk.

    Execusuites. French for empty seats…
    Execusuites. French for empty seats…

    The MaRS office, stationed behind the main lobby, had perhaps a dozen staff members mulling about in an area with 30-50 desks. I backed out and continued on…

    Could I find even a single Ontario startup?

    Yes, exactly that… just one startup!

    While I admittedly had low expectations walking up to the building for a spot check, I was pretty shocked to discover what the ~$1B (real estate and operating budget) netted.

    I sat down with the founder of this MaRS based startup, to learn how he ended up at MaRS, which if any programs he thought had value, and what might be done to improve the situation.

    It turns out his company took over space previously leased by GE, apparently many of the corporate tenants have logos on doors but next to no staff using the building!

    Did his startup get substantial value from the advisory services, educational programming, or market research? His answer was pretty much… No.

    How about investment? His company had recently raised several million dollars from notable valley and local investors, was IAF interested in joining the round? No again. In IAF’s opinion his startup didn’t need their capital – is the IAF policy to prioritize allocation of capital to weaker startups? It seems so…

    This founder agreed that MaRS required structural change and that most if not all of the programming should be canceled. However until such change was implemented, he wondered perhaps something could be done to extract some value for Ontario startups and was working toward this end… the best idea currently on the table? An open space for startups to connect, use WiFi, etc. otherwise known as a coffee shop (now being planned for the empty ground level auditorium still under construction in Phase 2).

    He had been pushing for this open space (an improvement over the status quo in my opinion as well) within MaRS… The administration’s concern: How could they ensure visitors were registered / counted as MaRS clients? I thought, perhaps a MaRS client card with every latte… but was pleased to hear him say that they relented.

    So this my friends is the absurd result of the much ballyhooed innovation stimulus programs at MaRS – a $1B coffee shop (and two towers filled with bureaucrats).

    Le sigh.

    Join the conversation: https://www.facebook.com/groups/startupnorth/

  • A conversation about MaRS

    Dan Debow (LinkedIn) kicked off a conversation about MaRS on the StartupNorth Facebook group. It is an interesting thread with views on the efficiency of our tax dollars, the applicability of building office towers to stimulate the innovation economy, and the relative utility of advisory services for startups.

    9841256324_3b6cfb92ec_z

    Have you used MaRS advisory services or real estate? Do you have an opinion about the impact on your startup? Participate in the conversation.

    Post by StartupNorth.

  • Mesh 14 Hosted Startup Program

    I love Mesh Conference. I’ve called it “Toronto’s most important DIY conference“. It is an event that ebbs and flows with the opinions and interests of it’s founders:

    It starts like a joke, did you hear the one about the marketer, the lawyer, the journalist, the founder and travel guy? These guys are all successful in their own right. And they continue to bring together a unique viewpoint that is different than the corporate marketing events and tradeshows. This is something about the underlying currents at the intersection of technology, marketing, politics and culture. I’m hoping they continue to bring people who challenge  existing ideas and frameworks. (My keynote invite would go to Shanley Kane of Model View Culture.)

    One of the interesting additions to the program has been a separate startup track. I’d like to see a little more overlap in the participating startups with the audience and attendees interest. It is great to see early-stage companies getting local support to reach the Mesh audience. The Mesh 14 Hosted Startup Program provides:

    • Complimentary registration;
    • Demo Alley;
    • and 15 Minutes of Fame presentation.

    Apply Now | 60 days left

    Photo Credit

  • Where’s Waldo?

    I’ve written about CIX Top 20 Follow @CIXCommunity in 2008, 2009, 2010, 2011 and 2012. To follow my pattern here is my post for 2013. Full disclosure: I sit on the Advisory Board for CIX. 

    There are 3 core events in the Canadian startup calendar:

    There are other happenings and gatherings ranging from NxNE to HPX Digital to Mesh to the C100 events. If you need a reminder about the state of the Toronto startup ecosystem, make sure you check out my now 14 month old but still relevant post, Don’t Panic.

    Each of the above events is optimized for different audience needs. CIX brings the  viewpoint of Canadian investors (if you care). The advisory board is primarily venture capitalists (a few lawyers, a couple of CEOs and  one evangelist):

    • Roger Chabra, Rho Ventures
    • Boris Wertz, Version One Ventures
    • Mark MacLeod, Freshbooks (recovering VC)
    • Barry Gekiere, IAF
    • Joe Catalfamo, Summerhill VP
    • Justin LaFayette, Georgian Partners

    The advisory board is 44 people big. And approximately 30 are doing some form of investment. It’s almost 70% are actively making investments in technology companies. There is very strong Canadian VC and investor representation in the group that advise and plan the conference content.

    And it shows in the content, of the 67 scheduled speakers (as of Nov 14), 19 of the speakers are from the advisory board – that’s 28% of the content. (It’s even higher if you include partners and others from firms of advisory board members). If you want to know what Canadian VCs and investors are thinking, this is the best way to see what is important. They define this conference. They provide the content and the voices at the conference.

    So why go?

    CIX gives you insight in to the types of companies, IP and traction that Canadian investors are currently looking for. It is the barometer of the “high potential growth technology companies” in Canada. It will be interesting to see what everyone thinks are the hot companies and trends. The panels and policy discussions are the things that Canadian investors are grasping and struggling with. It will be interesting to hear the conversations.

    You might argue that as an entrepreneur you don’t care about these conversations. They don’t help you grow your business, build your product, or acquire customers. But they do provide you insight into the mind set of the people you are trying to raise money from. That might be the thing that gives you an unfair advantage in understanding their decision making process this year.

    I love that 2 of my personal investments Upverter and OpenCare made the Top 20. Full disclosure: My employer, OMERS Ventures, is an investor in 360 incentives. I’m also excited to check in on Breather, Bionym, Axonify, Hubba and others. The CIX Top 20 has turned out some of the best companies in the past 5 years.

    It is possible to make your luck at CIX (just remember the preferred method of connecting).

    Photo Credits

    AttributionNoncommercialShare Alike Some rights reserved by Jameson42

  • Fireside Chat with Albert Wenger – Oct. 23rd

    Screen Shot 2013-08-08 at 5.00.12 PMWe’re very excited to host Albert Wenger of Union Square Ventures on Wednesday October 23rd 2013 in Toronto, at the spanking new OneEleven Accelerator, from 5:30pm to 8:00pm.

    William Mougayar, founder of Startup Management will interview Albert on stage, and there will be a Q&A period with the audience. We will talk Network Effects, the changing landscape in venture capital, advice to entrepreneurs, government and technology, privacy and security, raising money from U.S. VCs, and anything you’ll be asking him. This is a unique event, not to be missed by any one involved in a Tech Startup or ecosystem.

    Albert Wenger is a partner at Union Square Ventures (USV), a New York-based early stage VC firm focused on investing in disruptive networks. USV portfolio companies include:Twitter, Tumblr, Foursquare, Etsy, Kickstarter, Wattpad,Kik and Shapeways
    Before joining USV, Albert was the president of del.icio.us through the company’s sale to Yahoo. He previously founded or co-founded five companies, including a management consulting firm (in Germany), a hosted data analytics company, a technology subsidiary for Telebanc (now E*Tradebank), an early stage investment firm, and most recently (with his wife), DailyLit, a service for reading books by email or RSS. His wife is also the co-founder of Ziggeo.

    Albert is on the Board of Edmodo, Shapeways, Heyzap, Twillio, Foursquare, AMEE, Covestor, 10gen, Wattpad,
    Firebase, Sift Science and Tumblr (prior to its sale to Yahoo). Albert graduated summa cum laude from Harvard College in economics and computer science, and holds a Ph.D. in Information Technology from MIT.

    Location

    OneEleven, 111 Richmond Street West, 5th Floor, Toronto. OneEleven is Toronto’s newest accelerator. It’s your chance to visit this brand new 15,000 square feet facility, dedicated to accelerate the commercialization of cutting edge research and development for the economic prosperity of the region.

    Buy your ticket

    This event is organized by Startup Management and hosted by OneEleven. It was made possible due to the generous Patronage of Wattpad, Sponsorship of OMERS Ventures, and Support of Ryerson Futures.

    SUM Logo Horizontal                       Wattpad logo_200

    OMERS_Ventures200RyersonFutures_200111Logo_200

    Startup Management is a knowledge resource for growing, scaling-up and managing startups.

    Wattpad is the world’s largest community for reading and sharing stories.

    OMERS Ventures invests in companies with significant growth potential and market opportunities, seeking partners with a shared vision of building a vibrant knowledge economy.

    Ryerson Futures is an accelerator for early stage companies connected to the Digital Media Zone at Ryerson University, and manages a seed fund.

    OneEleven is a unique centre for commercialization that will create the talent and technologies that shape our future in ‘Big Data’.

    Eventbrite - A Conversation with Albert Wenger, Union Square Ventures

  • Make stuff

    Maker Faire

    I’m really looking forward to Maker Faire Toronto. It is happening Saturday and Sunday, September 21-22, 2013 at the Wychwood Barns. This is an amazing opportunity to celebrate the Maker Movement. I’m excited to see the inventions, the creativity, the resourcefulness of people to solve problems, to inspire. To be proud of the things they’ve built.

    “That is, no matter what the thing is you’re building, it’s deeply gratifying and incredibly educational to perform the act of creating something, anything.” — Christopher O’Brien

    I am really excited about the opportunity to bring my kids. I’m excited to teach them about entrepreneurship. But even more importantly, I’m excited to provide them access to learn and to explore technology. My friends Tara Brown and Sean Bonner opened LA Makerspace focused on providing a kid-friendly space. My kids have asked me about building robots, making candy and taking apart their toys.  The eldest is now 6 years old, and her problem solving skills and attention are developing where this will be a transformational experience.

    “We are making the tools for passion. When I look around, I don’t see any apathy here.” — Nolan Bushnell

    Much of the DIY culture emerged out of the Homebrew Computer Club in Silicon Valley. And while not directly responsible for the success of many of the companies that emerged, it seeded a culture and the connections between folks that started Apple Computer, Osbourne Computer and others. This is the ground floor, the Mechatronics department at UWaterloo accepted their first class in 2003.  Bufferbox was started in 2011 and sold to Google in 2012. This is a very interesting space if you look at the emergence of other area startups like InteraXon, Thalmic Labs , Upverter, Matterform, Bionym and others. 

    Bring your kids. These are very interesting times indeed.

  • Music Hack Day – Aug 10-11

    CC-BY-NC-ND Some rights reserved by TonyFelgueiras
    AttributionNoncommercialNo Derivative Works Some rights reserved by TonyFelgueiras

    “Music is the soundtrack of our lives.” – Dick Clark

    There are an amazing set of Toronto based music startups emerging.

    It should come as no surprise that with a burgeoning community there are events. Paul Osman (LinkedIn) who is now part of the team at SoundCloud and Rdio, The Echo Nest and Unspace are hosting:

    musichackday

    • To fast prototype and create brand new music apps (web, mobile or physical) in just 24hrs.
    • To bring together the music industry and the developer community.
    • To highlight and showcase the platforms and API’s of companies working in and around music tech.
    • To foster cross-platform and cross-device innovation.

    Looks like a great event for local startups and developers to get access to APIs and hopefully distribution.

    Music Hack Day Toronto will be held on August 10th-11th, 2013 at the The Glass Factory, 99 Sudbury St.

    If you are interested in participating in the fast prototyping and creation of brand new and innovative music apps, be sure to register (tickets are free) for Music Hack Day Toronto today.

  • Ontario House – Aug 14 @ The Portside Pub

    Portside Pub

    We’re on the official Grow Conference schedule. Together with Communitech, we are hosting a party. You can decide for yourself if these conferences are right for you or your business (need help, check out Kevin Swan’s piece for insight). But we’re going to be there. We are going to be highlighting Ontario startups (and investors). Who is coming so far?

    We’re looking for startups to highlight, stories to tell, and connections to make. We need startups. We need sponsors. We need volunteers. If you’re coming to Grow Conference please feel free to join us on August 14 at The Portside Pub.

    How about you? Are coming to Grow Conference?