Category: Toronto

  • LearnHub.com launches – Teach and Learn Online

    learnhub_logo_100×48.pngJonas and I dropped by the Savvica offices today for the launch of LearnHub.com. LearnHub is the first site from Savvica since their funding in the fall of 2007. We previously covered the return of Savvica’s founders, John and Malgosia, back to Toronto after a year in San Francisco. Savvica is based in Toronto and recently took significant investment from Indian e-learning company Educomp.

    LearnHub TeamLearnHub is in many ways the evolution of their first product, Nuvvo, which was a much more traditional learning management system. LearnHub on the other hand has a lot more social networking functionality and the “community” model feels a lot more engaging.

    Users can connect with other people, can join communities and can help build courses in those communities by bundling tools such as “Debates”, “Lessons”, “Tests” and “Discussions”. There is also an explicit “Authority Ranking” in LearnHub that rewards users who participate more regularly and in more ways.

    Once you have built a course, you then have the option of charging for it. LearnHub becomes a marketplace for online courses where experts in a subject area can quickly and easily build courses and then make money by charging for them. There is a lot of potential here if LearnHub can get enough exposure and adoption inside the right communities. They then also have to attract a mass audience who will pay for these courses.

    By running their own support site as a community on LearnHub, Savvica is eating its own dogfood. The support site gives the best demonstration of how a community can be structured and how the different components of the community can be used differently.

    In talking to the John and Malgosia, it became obvious that this is just the beginning of their long-term strategy. Without giving away the secret sauce, I can say that I was happy to hear that their revenue model was much more mature than you might assume up front.

  • Ontogenix raises funding from GrowthWorks

    GrowthWorks LogoOntogenix, based in Toronto, has been developing its patent pending social media ad serving technology for the last 3 years. Things are looking up, earlier today we heard Ontogenix landed a substantial round from venture capital fund GrowthWorks and strategic investor Pareto Corp (TSE: PTO).

    The company was founded in 2005 by Amit Kanigsberg (former Pareto CTO), Josh Mozersky (Queen’s University Professor of Logic), and Daniel Veidlinger (California State University Professor of Linguistics). As part of the funding round, Ontogenix is bringing on serial tech entrepreneur Chetan Mathur as Chairman and industry expert Marc Ruxin (SVP Digital Strategy & Innovation for McCann Worldgroup in San Francisco) as a board member.

    Ontogenix is raising the round to go to market with their first product, an Interest Correlation Engine. The technology is designed to increase the relevance of ads presented on social media sites (e.g. Facebook, MySpace, etc.) by targeting users based on their individual interests. The company searches for information on the general public’s interests, attitudes, and opinions on hundreds of publicly available sources such as social networks, blogs, and forums. This information, collected in aggregate to preserve user privacy, is then combined with the company?s proprietary data model to form the basis for a predictive engine that can tell advertisers which ads will have high relevance to different types of users.

    A number of companies are gunning for this market including Lookery and Lotame. In pilot tests, Ontogenix was able to increase click through rates by 400%. With Google publicly expressing remorse for the $900M guaranteed ad deal with MySpace and Facebook being lambasted for their Beacon program, it is high time someone figured out a better way to serve ads on social networks; we’re hoping it’s a Canadian startup.

  • IOUCentral – P2P Banking isn't always so simple?

    iou_logo.jpgWell, that didn’t take long. IOUCentral appears to have been essentially shut down by regulators here in Canada and they have disabled their loan and application functionality and are now repaying any fulfilled loans. The startup, which we covered, launched just a few weeks ago.

    We are not aware of the specific “regulatory matter” that seems to have shut down IOUCentral, and I won’t pretend to know enough about the banking industry to comment, but we did ask them about regulatory issues when we first interviewed them earlier this month. At the time they indicated that their legal agreements should have provided sufficient operating cover. It now appears that wasn’t the case.

    In a recent Toronto Star article, IOUCentral competitor CommunityLend indicated that they were focusing on making sure that regulators were satisfied before their launch.

    ” . . .CommunityLend executives hint they will have an edge because of the time devoted to satisfying a host of regulators across Canada.

    Marleau of IOU Central, however, is under the impression “there is no watchdog watching this business.” . . ”

    This now puts IOUCentral back in the race with CommunityLend and PeerMint among others to become Canada’s first peer-to-peer lending operation.

    We have asked IOUCentral for comment and will update this post with anything they have to say.

  • Novell acquires PlateSpin for $205M

    Novel PlateSpin LogoPlateSpin, based in Toronto, has entered into a definitive agreement to be acquired by Novell for $205M. The company, which makes a suite of solutions for the server virtualization market, was founded (for the second time) in 2003. You see, PlateSpin is a restart.

    PlateSpin1 was founded in 2000, raised $1.9M in 2002, and closed up shop in 2003. PlateSpin2 was restarted with new management in 2003, raised $3.5M from Toronto venture funds Covington Capital, Castle Hill Ventures, Skylon Capital, and Four Quarters, and another $7M in 2005 from Insight Venture Partners of New York.

    Word is that PlateSpin2 had trailing revenue of $20M, and that Citrix, Microsoft, and Unisys were all vying for the prize. Congrats to PlateSpin and its backers on the Novell acquisition. We’re chalking this up as a win. While it doesn’t put PlateSpin on the road to VMware glory ($22B, P/S 16.84) it is a solid exit for all involved… especially the funds. I am guessing they cut a nice slice of pie as part of the restart.

  • RubyFringe Conference in Toronto

    rubyfringe.pngA lot of startups seem to be building their web apps in Ruby On Rails and have been for a while, so I thought it was worth mentioning that Toronto is home to the least-boring Rails conference so far. RubyFringe. This conference seems to have come together due to sheer frustration with the current Rails developers conferences.

    I have never been to a rails conference, but it isn’t hard to tell from the outside that they are becoming increasingly commercial, boring and profitable all at the same time, and I would guess that serious rails developers aren’t very attracted to that.

    Congrats on getting this going, I hope it is a sellout and that I get invited to a super special VIP party!

  • GigPark – share reviews with your friends

    logo170.pngGigPark, a Toronto, Ontario startup, has finally come out of private beta and is now live.

    GigPark is a site to review and recommend local service providers amongst your friends and contacts. That means that if you hire a plumber for example, you can review his/her work and it will be shared with other people who you have friended, just like Facebook or any other number of social applications.

    This is in contrast to most current review sites, which give you reviews about service providers that could be written by anyone. With GigPark you can get recommendations directly from your friends, either by viewing service providers that they have reviewed already, or by asking for a specific recommendation. Many review sites such as Amazon.com and Tripadvisor try to build the authority of the reviewer by showing you information about them (such as other reviews they have written, etc), but they remain ripe with fraudsters and hucksters and it is basically impossible to eliminate those people unless you take GigPark’s approach.

    gigpark2.pngGigPark has a very tight focus and it cuts through a lot of the mess of recommending new things to friends with a clean approach that reminds me of FaceBook before they launched FB apps. GigPark has also launched a Facebook app to compliment their service. The app is much more tightly integrated with FaceBook than most apps, which is nice.

    GigPark is taking a very fundamentalist approach to using the social network (or Social Graph as it now seems to be called) in their design of the service. Where it would be easy and lucrative for GigPark to find ways to publicly expose these recommendations, and it would also be profitable to resell the content, Noah and Pema assured me last week that they focus was on creating a safe and trusted space for users, and that might mean giving up some short term opportunities. That includes not selling off the reviews as “content”.
    If they get a significant amount of people signed up and engaged, then this approach is going to pay off by entrenching GigPark as the most effective review site. The use of a social network gets around the significant authority and spam problems that we mentioned in our review of HomeStars. The bet is however, can they build that audience?

    The hitch is that GigPark falls squarely in the YASNS category and getting people to sign up for a new site and then to have them re-create their social network is tough. The pitch is that GigPark has a very defined and obvious value, and the opportunity is huge.

    GigPark is self-funded and is run by Pema Hegan and Noah Godfrey.

    My profile is here, add me!

  • It's a wrap – Founders and Funders Toronto

    The inaugural Founders & Funders went off without a hitch. It was a fantastic evening. It wouldn’t have been possible without our sponsors, thank you very much Microsoft and JLA Ventures, the event wouldn’t have happened without their support.

    Jess and Chris from Istoica snapped a fantastic pictures of the event and the attendees. The gallery from Founders & Funders event is available. Maybe we should do a set of hockey cards of Founders & Funders. On the back of each card it could have stats like amount raised, fund size, number of deals, etc. Until then, check out the pictures from Istoica.

    TechCapital and AideRSS Anand Agarawala, Bumptop Bogdan Chimleski Francis Fast

    Craig Fitzpatrick StartupNorth - Jevon & Jonas Tom Purves Leila Boujnane

    Selim Teja and Mark Skapinker Stephen Benson

    The goal of Founders & Funders is to create a social environment where the people who fund companies and the people who start companies can begin conversations outside of the pitch. As an attendee, I’ll extend an invitation to connect you with any other attendee you might have missed.

    Thank you for making the inaugural Toronto Founders & Funders a success. We look forward to hosting another event later in 2008.

    Cheers,
    David & Jevon
    Jevon and David

  • Game On Finance – Browser going to wallop Super Mario

    Last week we got our finance on at Game On, a top notch event by Interactive Ontario that brought together thought leaders from the games business. Right from the start it was apparent the games industry is incredibly diverse.



    Over half the attendees were in the console game business, by and large a mature industry. More than a few people didn?t appreciate their industry being called mature? but what else can you call it when $15 million is required to create a new console title and there is virtually no way to get a project financed without the backing of an established publisher like Ubisoft or EA. “The large investments required rule out venture capital interest” noted Randy Thompson of Argon Venture Partners, so financing a title more closely resembles feature film (without the promise of Hollywood glamour). Eric Zimmerman, Co-Founder of Gamelab, made a particularly incisive point by posing the question ?do ever more realistic lumbering 3d giants really drive greater entertainment value??

    Also in attendance were developers of mobile games. The mobile games business is currently controlled by carriers who use their decks (the preset homepage and application managers) to strong arm developers, control billing, limit distribution, and take a hefty cut. The challenges of mobile game developers are many, perhaps the most significant being porting (ensuring a game will work on the 1,500+ mobile phones on the market). Phil Giroux of Magmic Games, one of the most successful mobile game companies out there, noted Magmic spends significantly more time porting than creating new titles. There are definitely some opportunities in the mobile space for startups, but my guess is that they involve less game development and more figuring out how to ensure games work across devices. How many of you have tried entering the mobile application space? Have any of you succeeded?

    Bowser - Game OnBy far the most exciting space at least as far as startups are concerned is internet gaming. The flash enabled browser represents a distribution channel larger than xbox, playstation, and wii combined. There are of course challenges, internet users have grown accustomed to free. John Walsh, CEO of Groove Media, really blew the crowd away with their plan to monetize free games with in-game advertising and upgrades. Others must also be impressed, the Toronto based Groove Media has already raised $30 million, talk about taking it to the next level!

    We met a great group of Canadian entrepreneurs at Game On Finance. Vikas Gupta of Transgaming Technologies, John Walsh of Groove Media, and Nathan Gunn of BitCasters. We?ll be following up with profiles of each over the next few weeks, cause one thing is for sure, Canadian entrepreneurs will be behind the next revolution in gaming.

  • AnnesDiary.com – Anne of Green Gables gets Fingerprinted

    AnneAnnesDiary.com, run by Toronto based LogicaHoldings, is taking a Webkinz style approach to the children’s online entertainment market. Their twist? A fingerprint scanner!

    To sign up a child for Anne’s Diary a parent must fill out an application and provide contact information for a sponsor who can attest to the child’s gender (female) and age (6-14). A sponsor must meet several requirements, the most curious being that he or she must be a recognized professional from a list of 46 including: Funeral Director, Christian Science Practitioner, and Member of Parliament.

    Fingerprint2-3 weeks later two packages will arrive: a welcome kit (which includes a fingerprint scanner and a copy of the book Anne of Green Gables) at the parents home and a password card at the sponsors home. The sponsor then must call the parents to reveal the password. And that is just the sponsorship piece.

    You’ll also have to install the fingerprint scanner and scan a few of your child’s fingerprints (in case the child looses or injures one finger)! All this adds up to a few things not the least of which is a barrier to adoption.

    BillyA subscription to Anne’s Diary costs $119.99 a year. For comparisons sake, Club Penguin costs $60 a year and Webkinz $15. The games on Club Penguin are actually pretty fun and you get to play with other penguins! With Webkinz, you get a physical stuffed animal even before you register!

    With Anne’s Diary, you get an online journal (more fun than MS Word) and every Christmas a print out of all the journal entries (sweater alert). There are some more features: a few solo games, a birthday calendar, an amazon affiliate site, and a basic instant messenger.

    DeniedSo what does being “the first biometrically-secured social networking site for children in the world” mean in terms of security? We’re not exactly sure… The issue is content not authentication. What’s to stop Uncle Lester from using a logged in but unattended computer?

    Monitoring the chat, blocking certain words, and regularly booting bullies should be enough, which is by the way what they do on Club Penguin (now a Walt Disney Company). Anne’s Diary claims to block out dirty words, but using their demo account I was able to draft my own version of The Aristocrats.

    Club Penguin and others have proven that there is a huge market in this demographic and that parents absolutely will pay for security and a solid product. The Anne of Green Gables brand license is certainly valuable, time will tell if Logica Holdings is in this for the long haul. Losing the sponsor process and fingerprint scanner would be a good start.

    “Marilla, isn’t it nice to think that tomorrow is a new day with no mistakes in it yet?” – Anne Shirley

  • Founders and Funders is a sellout, then on to Montreal

    fftag.gifFounders and Funders Toronto is just about sold out and we have a waiting list of 60+ people. It is shaping up to be a great evening. I can’t believe it came together so quickly. It was just a few weeks ago that David and I were talking about it. I also want to thank David for his hard work on this, we have both been pretty busy with other things and David has definitely been the leader on getting F&F together.

    People are coming in from all over the country for the dinner it seems, and there is a great core of Toronto funders and entrepreneurs who will be there. Keep an eye on the Founders and Funders website for more announcements. Also, a big thank you to our sponsors: Microsoft Mix and JLA Ventures.

    Then, we hop in the car, plane or train and head to Montreal:

    StartupCamp Montreal – January 23rd

    startupcamp-montreal-logo.gif


    StartupCampMontréal is scheduled next Wednesday 23rd at la SAT, from 6pm to 10pm. This is really coming together. I can’t get over how many great startups have applied to present. Montreal is absolutely buzzing these days. The event is totally sold out except for a few service provider tickets.

    I am looking forward to meeting as many people as possible while I am in town.

    5 startups were selected from the votes of 27 gurus:

    • Tungle: Easy appointment scheduling for groups
    • Cozimo: Real Time collaboration for designers
    • Streametrics: Provides metrics on the use of video on the web for publishers
    • yourteledoctor: Virtual visits with a doctor via the internet.