Category: Startups

  • Weblo Raises $3M – Brooklyn Bridge for Sale

    WebloWeblo.com, founded by Rocky Mirza, has raised $3,300,000 in a second round of funding from Vantage Point Ventures.

    Based in Montreal, Weblo is some kind of horrible cross between MySpace, Second Life, and Monopoly. You can spend real money to purchase profile pages of property (e.g. California), non-trademark domain names (e.g. Cars.com), and celebrities (e.g. William Shatner). Then as the owner of these virtual assets you get a revenue share of advertising on the profile page (usually less than a dollar). You can also sell these profile page assets to the next fool (don’t count on it).

    Interested? Me neither… Weblo has all the appeal of a ponzi scheme. Listening to Sean Morrow, Weblo’s Director of Marketing, describe Weblo as a business opportunity for users makes my stomach churn. This is not to say someone isn’t making money. The first time an asset is sold all the proceeds go in Weblo’s pocket (e.g. someone purchased California according to Weblo for $53,000). Weblo hopes each of the profile pages move up in the search engine rankings to collect some SEO advertising dough. And of course members are encouraged to upgrade to a monthly paid membership to earn a larger cut of the advertising revenue. Yeah…

    I am not the first one to call the site a modern version of the Brooklyn Bridge ruse, where a con man sells the Brooklyn Bridge to a sap. Yes, someone purchased the Brooklyn Bridge from Weblo.

    It is not just that proclaiming oneself the virtual owner of Toronto, Madonna, or thebestpageintheuniverse.net is delusional. Weblo, essentially a collection of empty profiles pages, lacks the adventure of a 3D MMOG like Second Life. Will Weblo profile pages move up the search engine rankings and prove as indispensible as Wikipedia articles? Doubtful. Wikipedia works because everyone can contribute to a page. On Weblo each profile page is controlled by one unmotivated individual looking for easy money.

    “There’s a sucker born every minute…and two to take ’em.” Prior investors in Weblo include: Richard Rosenblatt, former chairman of MySpace.com; Fred Harman, managing partner of Oak Investment; Matt Hill, founder of eForce Media; and William Woodward, managing director of Anthem Venture Partners.

    Way to sell ’em Rocky.

  • aideRSS.com – What's next in RSS

    If you are like me, your blog aggregator is getting a little out of hand. Once you start climbing over 150 feeds, and well in to the 200s, you are starting to get overloaded. I have, on a few occasions, deleted all the feeds from my feedreader and have started from scratch.

    So far in it’s life, RSS has been kept pretty simple, and that has been a big reason for it’s success. Things are changing however. Every major browser now incorporates RSS in some way, and it is becoming more and more of a mainstream tool.

    Why did you start AideRSS?
    “On one level, to scratch a personal itch, and on the other, to help everyone else with the same problem of overloaded feed-readers ? we knew we were not the only ones, and someone had to step up to the plate! The daily number of posts most people receive makes it impossible to stay on top of the news, frequently resulting in the ?mark-all-as-read? syndrome. In this process, important stories, and at times, true information gems are lost. AideRSS tries to address this by allowing the user to filter incoming feeds based on social engagement metrics: comments, bookmarks, trackbacks, etc. We collect this meta-data for every feed, find the posts that have created a buzz, and deliver them into your inbox ? much like a newspaper editor picks relevant stories out of the newswire. Our goal is to make RSS manageable and relevant for every reader. “

    It is time for RSS to come of age, and to do that we have to get smarter about how we manage feeds. Right now, early adopters are up to having 200, 300, 400 or more feeds and the design of the aggregator hasn’t changed much in 3-4 years. when I ran Blogtrack.com almost 6 years ago, we were trying to create the aggregator. AideRSS is now reinventing how we use RSS feeds.

    picture-1.pngTo help cut down on the noise coming in through your aggregator, the AideRSS guys have come up with what they are calling PostRank.

    Postrank is a combination of how many links, mentions and conversations there are about a particular post. If you look at the screengrab you can see that AideRSS gets information about each post from places like Bloglines, Technorati, the blog itself (number of comments), and del.icio.us amongst others.

    “PostRank? is a scoring system that we have developed to rank each article on relevance and reaction. It is a core part of the AideRSS engine that works to ensure that this digital assistant is helping you to tame the RSS beast and keep your news stream manageable.” – FAQ

    The issue of currency vs. relevancy
    The biggest tradeoff in moving from a normal all-you-can-eat feedreader to something like AideRSS that filters posts based on their popularity is that you are now relying on other people to participate to help you filter your posts. That is ok, and it works, but it also means that you aren’t going to be on to the latest meme right away. My solution is to put many of the less frequently updated and less interesting blogs in AideRSS while keeping a lot of my daily favorites in my regular RSS reader. Because you can import your AideRSS feeds into your aggregator, this is really easy. Cut down on the noisy junk and still get all your Valleywag and Scobleizer up to the second.

    Will it Grow?(tm)
    It’s easy to misunderstand RSS plays. Very few people really understand the RSS market, or the vision for how RSS will grow in the future. Even those who “get” and use RSS day to day have very little understanding of the business opportunity. I was not alone in wondering about Union Square’s investment in Feedburner until I started using Feedburner. Feedburner saw a real pain for publishers (understanding the use and reach of their RSS feed) and they delivered solutions for it incredibly well. AideRSS is doing the same, but they are bringing the same sort of value to both the publisher and the reader. We have added the AideRSS sidebar to Startupnorth, you can see it in the right-hand column.

    Overnight hits such as mybloglog have shows that if you provide a few tools that are just interesting enough to both publishers and readers, then you can really hit a home-run.

    One of my favorite things about using AideRSS so far is how snappy it is. My only complaint is that it creates some uncertainty about how often the feeds are being updated. I’d like to know the last time each feed was updated somehow, and have the ability to manually request that it be updated.

    The core AideRSS services will always be free, with optional premium services available later on at a cost. I could see a service such as a customized newsletter for busy individuals (ie: “send me the top PostRank posts about the Real Estate industry once a day”). AideRSS will be the authority on what the most relevant content in the blogosphere is, and there will be many ways to capitalize on that.

    AideRSS is a Waterloo, Ontario company, and they have taken a small amount of funding so far, but they are on the lookout for investors who understand their space, and what they want to accomplish.

    For me, it’s an obvious one. Without trying to sound like too much of a cheerleader, I love AideRSS and I want them to succeed only so that I can keep using their service.

    If you want an invitation to their beta, I suggest you ask in the comments below, I am sure they will let as many in as possible, and perhaps Rob can relax a bit now, help is on the way it seems.

    Update: AideRSS has launched for public consumption, and Read/Write Web has a great rundown as well.

    Contact Ilya Grigorik

  • NowPublic gets kudos from Time.com

    NowPublic, the website concept we all thought about in 1999 but didn’t do anything about, has been named one of the Top 50 websites by Time.com

    The Vancouver, BC company has almost 100,000 different contributors and can often be found at the top of a google search about recent events.

    The list is actually a lot better than the contrived Time.com editorial-list you’d normally expect from summer intern-journalism. Etsy, Prosper and others are all good company.

  • 10 Small Canadian Tech Companies to Watch

    For the low low price of $3,500 you can read about 10 up and coming Canadian tech companies.

    “This IDC study profiles 10 relatively small, emerging software companies that IDC believes are worthy of highlighting to the broader industry and have the potential to make an impact in the ICT market. The analysis in this study provides valuable input to ICT vendors, large and small, to identify success factors employed by top emerging Canadian software vendors.”

    Among those companies that are profiled is Idee Inc., which is run by Leila, one of Toronto’s most beloved entrepreneurs.

    The other companies featured in the report are Apparent Networks, Casero (white-label social networks for marketing), Coveo (Enterprise Search), Halogen (HR Software), Loki, M-Tech (Identity Management), Objectworld (PBX Hosting), Osellus, and Privasoft.

    Who on earth would spend $3,500 on 10 profiles, I have no idea. Especially with all our wonderful profiles here on Startupnorth!

  • JobLoft post Dragon's Den

    JobLoft2All this talk of Dragon’s Den got me thinking about Job Loft, a map based job website for the retail, food service, and hospitality industries.

    For those of you who don’t know… Job Loft made a great pitch on Dragon’s Den, was offered $200,000 for 50% of the company, and had a bad first date with the Dragons, who by the end of the meeting tore up the $200,000 check. The clips are embedded for your viewing pleasure after the jump.

    All’s well that ends well… and despite the Dragon’s Den debacle, Job Loft is doing great.

    After one year in business they have already sold over 12,000 job postings – targeting industries with 67% turnover was a good idea. Job Loft is expanding across Canada – localizing the site into French to conquer Quebec. And a new hosted / embeddable job site has been added to the product mix. What about funding you ask? Well after the check was torn up on national tv, a number of investors came knocking – with a much higher valuation.

    An exception to the Dragon’s Den Curse? Maybe. I would attribute it to their positive attitude. From their blog: “So what did we do the day after that boardroom meeting? Business as usual.” And sure, Job Loft is in a monstrously competitive industry, but a laser focus on being “the #1 destination in Canada for online recruitment within retail, food services, and hospitality” has served them (and their customers) well. My guess is that the dragons are kicking themselves for not investing in Job Loft.

    Contact: Chris Nguyen, Director of Business Development

    (more…)

  • Freshbooks opens up

    Freshbooks announced today that they are releasing a mature API. From what I understand, this is a direct result of their hiring of Ben Vinegar some time ago.

    Why does this matter?
    Freshbooks is demonstrating a very mature approach to growing their available market by opening an API as mature as they have. Typical approaches, often forced under the gun of results-hungry investors (ok, that’s a broad assumption), is to ramp up marketing and to put time, money and energy in to branding in order to develop a wider appeal.

    Offering an API says 2 things:
    We trust our users
    Some of the best application builders for APIs are the users themselves. Allowing users, application developers and others to build applications that use your platform might seem bold to some, but for a healthy company with as many users as Freshbooks boasts, it is a critical first step towards longer term relevance and sustainability.

    How does it do this? Too many startups spend their time trying to either see, create or define the future. This is fine early on, but it is almost impossible in the long run (believe me, I know!). By taking a validated and accepted product like Freshbooks and opening it up to whatever the future is going to be, you are mixing solid current economics with the opportunity for risk-less future innovation.

    We can’t partner with everyone, so we will partner with everyone
    When your startup is successful and stable, partnering offers are a dime a dozen. Most end up in a graveyard of blog posts and press releases but amount to very little. By having a solid API, Freshbooks can tell potential partners to “come back and show us what you can do” and they can also attach their own app to other partner-ready platforms such as Salesforce.

    Now the test. Will people build the apps that will make Freshbooks the center of the online invoicing world? We’ll be watching.

    More analysis here by one of my co-writers on FastForward.

  • Is Dragon's Den bad for innovation?

    Originally posted on davidcrow.ca.

    I was talking to Greg Wilson about the Dragon’s Den on CBC. I think that this show has really done a disservice to entrepreneurs and innovators. It might make interesting television for a government network but I think it is doing more harm than good for early-stage entrepreneurs (particularly technology entrepreneurs).

    1. Making venture capital process appear too simplistic
    2. Putting people on stage that aren’t venture fundable
    3. Creating misconceptions for future entrepreneurs

    Simplistic Process

    The Dragon’s Den basically showed a 5 minute pitch followed by 5 minutes of discussion where the “Dragons” decide the valuation and their investment in a company. There is a significant amount of legal paper work and due dilligence that happens even before most contestants were allowed on the stage. Turning to successful, informed venture capitalists like Rick Segal or Don Dodge for information about the funding process is much better for most (serious, venture-fundable) entrepreneurs. However, this is not good television, and including the details would keep the CBC’s ratings right where they are (there are exceptions, the JobLoft.com episode turned out to be pretty entertaining).

    People that aren’t venture fundable

    Bikini Weenie and FaceForm these are ideas that just aren’t venture fundable. While I’m not a VC, I don’t even play one on the Interweb. I’m pretty sure that these wouldn’t event make it through the door for the “No Harm, No Foul” meetings.

    Future perceptions and misconceptions

    Are these stellar “entrepreneurs” what future generations of Canadians have to use as role models? My last concern is that the Dragon’s Den show does not raise the profile of entrpreneurship and venture funding, it does the exact opposition. It makes a mockery out of the folks who choose to create new companies, new products and need financial investment to grow. We need to strive to create companies, products, services that are impossible to ignore! We need students and younger entrepreneurs to see ideas, people and products that are transforming our world and the lives of everyday people. What we don’t need is for that kid who was going to write some new software to decide that she doesn’t want to do it, because of an opinion formed when watching this show.

    We need to create better stories. We need to find the folks doing more with less. We need to talk about the successes that are happening in our backyards, basements, garages and coffee houses. Flickr was Canadian (Vancouver). StumbleUpon was Canadian (Calgary). Both of these folks are now based in Silicon Valley. We need to celebrate the fantastic entrepreneurs and innovators in Canada. It’s too bad I’m not a film/tv producer, I’d be all over this.

  • You are a superhero

    Sunir Shah, who now works at Freshbooks has started a series of posts called “Entrepreneurs are superheroes“.

    Entrepreneurism is in my blood. My parents both came from Kenya, where they were children of retailers and industrialites. In fact, I come from from a long line of entrepreneurs escaping poverty in India.

    They worked hard, starting by laying the ties of the Kenyan railway at the turn of the 20th century to becoming one of the core commercial classes at the turn of the 21st. What was their motivation? Getting others like themselves out of poverty in India on towards a better life. Now, my generation is leaving Kenya for England, Australia, and in my case North America to start the cycle once again.

    Sunir is profiling Entrepreneurs. Something like this would be more at home on Startupnorth, but hey, what can ya do? Freshbooks did a smart thing in hiring Sunir to help do things like this.

    Thanks Freshbooks and Sunir. We are looking forward to seeing the profiles role in!

    So far, Sunir has 3 profiles:

  • Canadian Startups on Read/Write Web

    Heri Rakotomalala, of MontrealTechWatch wrote a fantastic post on Read/Write Web which profiles canadian web startups!

    MontrealTechWatch is quickly becoming my favorite canadian startup blog (besides Startupnorth of course!). I won’t recap the article here, head over to R/W Web and read it for yourself.

  • Last auction for Mighty Bids

    Mighty BidsMighty Bids, a Montreal based auction site, is calling it quits and get this… taking the ‘eBay exit’. Pretty ironic given the site’s founders, Peter Michaud and Jeff Ramaglia, routinely criticized eBay seller fees.

    The site attempted to differentiate itself by providing free basic listings, but still charged a percentage of the final sales price and premium listings fees. The free listings, promises to donate 5% of profits to charity, and silly eBay protests were not enough to pull in significant numbers of sellers from eBay. Over the past four years Mighty Bids garnered 100,000 registered members and acquired 9 domain names. In case you are interested… the eBay auction ends July 1.

    Mighty Bid’s new owners will have to make some drastic changes if they plan on successfully competing with eBay. What strategy would you take if you won the auction?