StartupNorth

Category: Waterloo

  • Waterloo’s Next Five Years

    Following on with Jevon’s original post of Canada’s Next Five Years, I want to discuss Waterloo.

    Five years ago, I organized the first StartupCampWaterloo. It built on the great community and open space tools from BarCampWaterloo and focused participants around startups. Simon Woodside, Ali Asaria, Mic Berman, and myself felt like we needed to something a little different to get the grass roots high tech startup community moving in Waterloo. It was a year after the Accelerator Centre opened and the community was just finding its feet. Waterloo felt bold and creative with a strong core of startups but it was small.

    With the aggressive growth of RIM and Open Text, the Waterloo community has spent the last five years building a strong and diverse tech community. In addition to the homegrown companies, the community was fuelled by a few California based companies making some big purchases in Waterloo Region. These three purchases resulted in the parent companies building a larger presence in the Waterloo Region:

    In the last couple of years Communitech grew beyond simply being a promoter and connector for local tech companies. Communitech has established a home base for startups in downtown Kitchener. They took the bold move to put a vibrant space for startups in an old Tannery complex, which has also attracted the likes of Google and Desire2Learn, each with hundreds of employees based in the building. The Communtech Hub is a strong message to entrepreneurs that the community is there to support you.

    However, the next five years are where all the attention the Waterloo region has drawn to itself is going to have to transition to results and further momentum growth. This will depend a lot on the companies that have been founded in the last five years and includes some that are now YC-backed.

    Looking at what Canada needs to do, what role does Waterloo play in that?

    Education

    Waterloo is home to arguably the top Engineering School in the country, the University of Waterloo. With programs like REAP, CBET, and living environments like VeloCity it is committed to educating and supporting students with regards to entrepreneurship. It is also focused on having them experience it through the Co-op program that allows students to work anywhere in the world with many choosing to work at Facebook, Google, Twitter, Apple, and a ton of different startups in the valley. This results in students that have a big head start in terms of building a network as well as learning about problems that could turn into great product ideas. That experience and opportunity is a big win for Canada’s startup community. We can see the rise of Waterloo alum lead startups like Vidyard, Kik, Upverter, Well.ca, TribeHR, LearnHub, Thinking Ape, Pair, and others.

    And it’s not just UWaterloo, Wilfrid Laurier University and Conestoga college are also doing their part. The MBA program at WLU has a focus on entrepreneurship and they are leveraging the Communitech Hub environment. Conestoga College is educating the work force in the region making it a very important partner in ensuring there is a workforce for growing companies.

    Community as the Framework

    The Waterloo Region has a ton of tech oriented events. A lot of folks assume the trick is to find time to attend all the events you want to attend. The real trick is figuring out which events you should attend, and how to make the most of your attendance. Are you attending for education? recruiting? to find funding? to be part of the startup scene?  More entrepreneurs need to clearly identify their desired outcomes from each event, and they participate accordingly.

    What there needs to be, is a greater focus on founders and information sharing.  Peer mentorship, breakfasts with friends at Angie’s, or just chatting at the end of the day. We should avoid gossip, we don’t want or need a ValleyWag for Waterloo Region. Building a company is difficult enough that we don’t need to be hindering each other. Entrepreneurs need to be able to establish trusting relationships with each other, to build I see it happening more and more but there isn’t enough peer mentorship going on.There are a large number of entrepreneurs that have been through the ups and downs of a startup. It includes fundraising, business development, channel partner discussions, contract gotchas, etc. We need to help entrepreneurs build connections with each other.  There is a huge opportunity for entrepreneurs to build trustworthy relationships and share their experiences.

    Tighter connections to elsewhere

    Jevon calls for tighter ties to Silicon Valley. But it’s more broad than that. Canadians need to get out of Canada. We need to build stronger connections in New York, Boston, Los Angeles, Buenos Ares, London, Mumbai, Shanghai, Eastern Europe.

    We are doing a pretty good job at getting exposure in Silicon Valley. We have companies going to YCombinator (Vidyard, Allerta, Upverter, Pair and others). The C100 has done an amazing job identifying Canadian expatriates and connecting them across the country. The C100 has expanded to NYC and to the UK. Entrepreneurs need to expand to.  We have startups raising money from NYC (Kik raised from USV), Boston (TribeHR raised from Matrix Partners). We need to get out of the local ecosystem and build products for global customers.

    I would be remiss to ignore the need for tighter connections to Toronto as well. Whenever anyone says “Toronto is better than Waterloo for…” or “Waterloo is better than Toronto for…” a kitten dies. Stop it. No one really cares and outside of Ontario people think it is just one big region. Lets build stronger ties and use both cities for everything they have to offer.

    Policy

    Beyond establishing the Hub, Communitech has done a lot of work on building connections with all levels of government. They have a big role to play with influencing policy as does Canada’s Technology Triangle Association.

    Grow Like Hell and Don’t Stop

    Hootsuite is mentioned but Waterloo is home to tech companies that have taken the long path to growth. RIM, Open Text, and Desire2Learn are examples of rapid growth (over a 10 year period) tech companies. What Waterloo needs is more of that. The challenge is going to be getting the talent that knows how to work sales funnels, marketing, etc to live in the Region in sufficient numbers.

    What I would guess is going to happen initially is that US VC-backed companies that started in Waterloo will have to find a way to balance having their product teams in Waterloo and marketing/sales teams in major US startup hub cities. That means an office in Waterloo and one of Palo Alto, Mountain View, San Francisco, New York, or Boston. This allows them to hire developer talent outside of the higher salaries zones that is on par (or better) but feed on the energy in those cities. The US market and understanding it quickly is key to many of the current fast moving startups in Waterloo.

    For the Region of Waterloo to live up to the expectations, in the next five years these companies will need to attract that marketing/sales talent to move here for work or be able to use Toronto for that.

     

  • GrowLab on tour

    GrowLab DemoDay 2011 - Some rights reserved by miketippett
    AttributionShare Alike Some rights reserved by miketippett

    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.

  • The Story of Quack.com and How It Changed the Canadian Startup Ecosystem

    A few weeks past I posted about the hockey stick growth of exit in Canadian startups. Well, let me give some interesting colour to some of the cause of that growth.

    Quack.com is a company that most of you probably know very little about, despite its relative fame in the hey-day of the dot com boom. Back in the day when I was a student at Waterloo, I remembered Quack.com coming on compass and having some great recruitment events at the local pub, The Bomber. That was the last I heard of them. Little did I know that Quack.com would eventually help permanently alter the Canadian eco-system.

    Quack.com was a Silicon Valley based company. They built a really cool IVR service, cutting edge stuff in 1998 when they were founded. Steven Woods was co-founder, CTO and Chief Product Officer at Quack.com. Dan Servos later joined quack as its SVP Alliances and Sales. In the year 2000, they sold to AOL for a hefty $200mm price tag. Big exit, even by that era’s standard.

    A few years later Steven Woods & Dan Servos were at it again. Classic serial entrepreneurs – Steven started another company, NeoEdge which Dan joined. Not quite as big a success as Quack.com, but not every venture leads to a $200mm sale of your company.

    Fast forward to 2008. Dragged from the startup world kicking and screaming, Google steals Steven Woods and hires him as site manager and engineering lead for Google Waterloo. You have to understand how big this is. Steven Woods is a 2x entrepreneur with a big, big exit under his belt, also serving as an advisor & investor to several startups. He is a big deal in Silicon Valley, let alone in Waterloo where he should be recognized as an entrepreneurial god. Only the duo at 295 Philip St hold more entrepreneurial street cred than him in Waterloo. Not only is his startup background a big deal, but he has a fricking phd in computer science. An immense example of reverse brain drain if I’ve seen one. Which is ironic, since Quack.com/Steven Woods was famously ripped as being a big cause of Canadian brain drain when they hired 50 Waterloo grads in 10 months before selling to AOL.

    Check out what started to happen shortly after he came to Google Waterloo:

    1. Google acquires Toronto-based company BumpTop for $30m.

    2. Steven Wood’s old colleague, Dan Servos, ends up as CEO of Social Deck.

    3. Shortly thereafter, Toronto-based Social Deck gets acquired by Google.

    4. Toronto-based Zetawire gets acquired by Google.

    5. Toronto-based Pushlife gets acquired by Google for $25mm.

    6. Waterloo-based Postrank gets acquired by Google.

    (and now Dan Servos lands as COO of Locationary. Hmmmmm…)

    Steven Woods & Dan Servos have been machines, invigorating the Canadian startup ecosystem with new possibilities. Via his role at Google, Steven Woods has provided a real source of opportunity for entrepreneurs in Canada to do something with their company other than “move to the Valley”. 6 exits probably at near $100m in total money in under 2 years. Dan Servos has provided huge leadership to Canadian startups like Social Deck, Locationary, etc. This should be massive motivation to entrepreneurs. If you have success, find ways to be like Steven Woods and Dan Servos and help the ecosystem continue to grow. Don’t be like this.

  • Hacker House in Waterloo

    HackerHouse.caLooks like Waterloo is about to get an addition to the already existing hacker houses and VeloCity residence that are happening around campus.

    Does anyone remember Plurk? Plurk was the site that MSN China copied over 80% of the user experience and code for Juku (see the official Microsoft statement).  Plurk is a place where people lurk. It has been compared to Twitter. It generates most of its traffic from Taiwan.

    And now it looks like they are opening a more “mercenary/hustler driven” approach to a student dorm. Hopefully, this is the compensation they received from a Microsoft settlement, maybe it is a recruiting tactic – hiring developer talent is a challenge and finding entrepreneurial hackers for the cost of a mortgage payment + utilities is actually a really cheap acquisition tactic. With none of the overhead of the coop program and you’ve already skirted any labour laws by making them work for their own companies. Nice.

    The program aims to bring in 3-5 students and run them through the gauntlet.  Here is one of the welcome letters:

    I’m Kan [looks like Kan Kan (LinkedIn)], and I’m one of the founders of Plurk. We’re a Twitter type service and the largest microblogging service in many parts of Asia and one of Canada’s most innovative startups (heck, even Microsoft copied us in China!).  Me and two other very successful under-30Southern Ontario area entrepreneurs just recently (earlier this month) announced the launch of our Hacker House (www.hackerhouse.ca) program, inspired by the very cool Grotto (www.sfgrotto.org) and Y Combinator programs in San Francisco.

    Basically, we plan to find 3-5 of the best and brightest entrepreneurially minded, technology focused students from the Universities of Laurier and Waterloo, bring them together in a collaborative environment, and then let the magic with the support of a team of guys (us) who have fostered and executed on some of the most successful startups on the web.

    While we’re not affiliated with the university in any way, we offer a couple of BIG benefits over Velocity:

    1. If you’re accepted, we provide your living accommodations  absolutely free in a sweet pad just steps from the university for the term/year.

    2. We take more of a cooperative mercenary/hustler driven approach, providing access to server space, mentorship, capital (in exchange for the option to buy equity into your venture) and other resources necessary to launch either (a) your own venture, (b) collaborate and percolate on ideas with other participants in the program during the term or (c) get hands on experience working on cutting edge projects (particularly in the social, mobile, geo-local, gaming, data mining & search spaces) in various stages of development.

    3. While we may not have the visibility of Velocity, I can unequivocally say that the upside and quality of the experience would be far superior for those who want to execute and iterate on ideas at breakneck speed in a constantly changing market and shoot for the moon.

    Our first cycle commences at the start of the Fall ’11 school term (September 2011) and we plan to take in 3-5 students and finalize our selection process by the middle of August.  If you haven’t already finalized your living accommodations for the Fall term and like what you hear so far, I’d encourage you to check us out on www.hackerhouse.ca for more details or get in touch with me directly.

    It is a very different approach to residence during the school year. Their focus seems to be very much competitive to UW VeloCity (full disclosure: I am the EiR at UW VeloCity and will be helping the students at UW get access, build products, etc.), but it is a very different approach. The UW VeloCity program houses 70 students, provides access to University and community resources, and for all intensive purposes is opt-in. Many students get into the residence looking for a place to live and learn about entrepreneurship and high tech startups as a career path. The goal is to provide a familiarization to hands-on entrepreneurship.

    Hacker House

    It is great to see others dedicated to continuing to build the community in Waterloo.

  • The Gravedancer Fund

    It’s painfully obvious and we should stop ignoring the facts: RIM is cratering and there is nothing that can be done to save them, short of firing the confused people who are running the show these days.

    I won’t comment on what exactly is happening at RIM, there are more than enough people doing that these days, but instead I think it is time for Canada to think about how to mitigate our losses here as the attrition continues. I am more interested in how we go in to damage mitigation mode. I think there is an obvious thesis developing for one or two new funds to camp out in Waterloo and focus on extracting the value locked up in RIM.

    A gravedancer fund would focus specifically on leveraging the talent and IP as it spins out of RIM in Waterloo. It would hasten the gutting, no doubt, but somebody has to do it and it may as well be someone based in Waterloo.

    So, who is going to raise the Gravedancer Fund and where do I sign? Waterloo is on it’s way to becoming the center of startup activity in Canada and the death spiral of RIM needs to be seen as an opportunity, not a threat.

  • PostRank acquired by Google

    Ilya has confirmed today that PostRank has been acquired by Google.

    The launch of AideRSS, the precursor to PostRank, was one of the first things we covered here on Startupnorth, so we are happy to see such a great outcome for the team.

    Google acquires Postrank

    We are extremely excited to join Google. We believe there is simply no better company on the web today that both understands the value of the engagement data we have been focusing on, and has the platform and reach to bring its benefits to the untold millions of daily, active Internet users. Stay tuned, we’ll be sure to share details on our progress in the coming months!

    Of course, we wouldn’t be where we are today if it wasn’t for all the help, feedback, and support we’ve received from our community over the past four years—thank you all, you know who you are, and we truly couldn’t have done it without you!

    Ilya also notes that the team will be moving to Mountain View as part of this acquisition.

  • The VeloCity Venture Fund

    Some rights reserved Photo by Thomas Hawk
    AttributionNoncommercial Some rights reserved by Thomas Hawk

    Remember Ted Livingston’s insanely great donation to UW VeloCity, well it looks like it is being put to good use. The VeloCity team announced The Velocity Venture Fund. The University of Waterloo and the team at VeloCity are working to put that capital to use for students in the VeloCity residence. It looks like they are both testing their ideas (love this) to make sure students are interested before the full launch of a fund. They are running a contest for UWaterloo students that provides a seed grant of $25,000 + office space + incorporation.

    It’s pretty cool. I am hoping to learn more about the Fund that is launching in the fall. Jesse Rodgers is a huge asset to UW.

    What does this first version of the funding contest look like?

    • A hack weekend followed by a pitch night where 5 teams are selected and given $500
    • Those 5 teams come back in a month or so and have a chance to compete for $25 000 + incorporation + office space on their next co-op work term or following term (so for spring that will be fall)
    • That is all.

    To qualify for the competition:

    • A current student at the University of Waterloo
    • Do you have to live in VeloCity? No. But it would give you an advantage.

     

  • Riding the rails to Waterloo

    Go Train 614 - Photo by Danielle Scott
    CC BY-SA 2.0 Some rights reserved by Danielle Scott

    Why isn’t there a commuter train from Toronto to Waterloo? Ok, you might ask actually ask why Toronto doesn’t have a train from downtown to the airport but let’s leave that for a conversation with more educated politicians and policy wonks.

    I’ve spent this morning with startups in Waterloo, hanging out with people at the Communitech Hub, UW Velocity, and a crazy number of super awesome startups (TribeHR, vidyard, 17 muscles, Footloose Games, Willet, Cyborg Trading Systems, Will PWN 4 Food and others). I left Toronto at 6:15am to avoid traffic and be in Waterloo before 8am for my first meeting. The drive was approximately 116 km and took approximately 90 minutes (arrived at 7:52am). I couldn’t help think about why there isn’t a train. The distance is just a little more than SF to San Jose (~74km) and double SF to Palo Alto (~51.5km). I can get a Caltrain from San Francisco to Palo Alto or San Jose.

    Waterloo - Early Stage Companies

    If the assumption is that UWaterloo is a top ranking university (possibly my alumni delusions that cause me to overlook UWaterloo’s non-placement on Times Higher Education rankings). And with more startups like Kik raising money with powerhouses like OpenText, RIM, MKS and Christie Digital. There are less reason for students to have to leave the reason. It makes it more attractive to rent an apartment for the year and stay in Waterloo to manage your costs on your coop program.

    Maybe the argument is that the capital is better spent on more programs for entrepreneurs or road infrastructure. But it seems that one of the greatest assets to the Toronto startup community (UW Coop students and graduates) are disconnected by public transportation. I wonder what my UW alumni brethren like Farhan Thawar (@fnthawar), John Green (@johnphilipgreen), Amar Varma (@extremevp),  Brydon Gillis (@brydon), Ali Asaria (@aliasaria), Razor Suleman (@iloverewards), Kunal Gupta (@kunalfrompolar) think about the need for better connections between Waterloo (assuming a stop in Guelph) and Toronto.

  • Ted Livingston is insane in the best sort of way

    A lot of people talked shit about the recent valuation of Kik. It all seemed a bit insane and I admit the numbers I heard seemed wild. That was until word dropped that Union Square Ventures has joined the deal alongside RRE.

    Today Techcrunch is reporting that Ted Livingston is using a chunk of the money that he took off the table in the recent financing in order to further back UWs Velocity dorm/program.

    Say what you want to but Ted Livingston gets it and the moment he had the chance to do it: he gave back. That is all too rare a thing. He obviously did well in the transaction that generated the extra $1million, but not THAT well. He is obviously just an incredibly generous person. I am totally inspired.

    If we can continue to back and inspire entrepreneurs as passionate as Ted then we just might get somewhere.

  • Going over the falls together in barrel

    Editor’s Note: This post was written by Jesse Rodgers. Jesse is the  CEO of TribeHR, the Director of the VeloCity Residence at the University of Waterloo, organizer of StartupCamp in Waterloo and an allround great guy.

    Jesse stopped by my offices in Toronto to chat about sales, marketing and PR (convenient of @jevon to write about the same topic recently). Jessementioned that the TribeHR team had left Waterloo and were holed up in a hotel room in Niagara Falls. They were living together, working together, writing code and being more productive than they could with the distractions of family, friends and the strong community in Waterloo. I was amazed at the commitment of the team to step away from their personal lives and get the next version of TribeHR built before they head to SxSW for the Small Business Party. You can read the update or watch the caffeine and other stimulant-driven vacation summary. There’s lots startups can learn about improving productivity by going on vacation together.

    Barrel to go over the Falls

    Over the month of February the TribeHR team has been taking advantage of low hotel prices in Niagara Falls and turned a suite at the Hilton into our office (we were at the Marriott, but the Hilton is $20 less a night and has king size beds). The goal for this little retreat to the romantic city of Niagara Falls: get TribeHR polished off, implement our new user interface, get our go to market strategy figured out, and start executing on all cylinders.

    If it works, we will be a stronger team (who can put up with each others snoring) and will have made some awesome progress. If it fails, then we know our team isn’t as good as we thought.

    Other cities we thought about were Montreal and Toronto. Toronto would have far too many distractions for us so we had settled on Montreal (we would have loved to work out of the Knotman house). The problem there was that those of us with young kids would be too far away to head home if we had to. So here we are in Niagara Falls, in a tiny hotel suite, working our asses off.

    Room with a view in Niagara Falls by TribeHRIn terms of work hours put in, when you do this, it’s pretty crazy. While in a hotel room, assuming you ignore the casino across the road, you work from around 8am to 12am, take out eating time, it is around 14 hrs or so of ‘work’ per person. It is a crazy amount of focus and the results are great, at first. Once all the easy stuff is taken on, we then have to address the bigger problems and we start to slow down. But we can work through it and it’s a heck of a lot easier when you have completely removed yourself from your routine.

    At the end of week 2 we have learned the following:

    • It takes 5 min to turn a hotel room into an office but the wifi sucks, the tv can’t use a PS3, and anything but pizza is way overpriced.
    • Not having kids wake you up at 6am doesn’t mean you won’t be awake at 6am.
    • The US side of the falls gets a rainbow in the afternoon.
    • The Starbucks coffee is never hot, Tim Horton’s wins
    • As a team we can take each others grumpy moods and swear it out until everyone is laughing again.
    • Hotel chairs spin really well, and provide a great distraction near the end of the day

    Why have we done this? Because we are still a very much a bootstrapped startup with plenty of distractions (wives, kids, other commitments) in Waterloo, and if we are going to get anything done while things are still so early, we have to immerse ourselves and get to work. It’s uncomfortable and exhausting, but it’s productive, energizing and we love it.