Tag: fixmo

  • Go big and stay home

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    Wattpad announced today a $17.3MM raise from Khosla Ventures, Golden Venture Partners, Union Square Ventures and Jerry Yang. This is huge.

    “It has been recognized as highly significant due to having two top-tier US funds investing at this level in a Canadian-based consumer internet company.”

    We are seeing Canadian entrepreneurs build companies and demonstrate global traction. The changes to foreign investment related to Section 116 changes in the Tax Act, have allowed Canadian companies to go big and stay home.  The changes to Section 116, coupled with the desire of Canadian entrepreneurs to go big and stay home. Evidenced by Wattpad’s big raise, Wave Accounting’s $12MM series B from Social+Capital, Hootsuite’s $20MM round from OMERS (sure they’re not foreign capital but its a big round), Shopify’s $22MM ($7M series A + $15M series B from Bessemer), Beyond The Rack’s $36MM raise, Fixmo’s $23.4MM Series C from KPCB, Achievers’ $24.5MM Series C from Sequoia, and others. There are startups and there is capital. It’s possible to build a growth company in Canada and raise foreign capital. The game has changed for Canadian VCs, geography limitations can help these funds identify early but it potentially will relegate many to second tier status if they can not enable their startups beyond their geographies.

    The great thing in talking with many of these entrepreneurs is that they want to build successful companies in Canada. Allen Lau, CEO of Wattpad, mentioned that his desire was to grow a large successful company in Toronto. He is not looking to move the company. The same is true of my conversations with Kirk Simpson at Wave Accounting, Tobi at Shopify, Mike at Freshbooks, etc. There are a lot of reasons to want to be way from the tensions and pulls the exist in the Bay Area. Canadian startups have access to great talent. While there is some pull between the different startups, many of these companies aren’t competing with each other for employees or mindshare. Just check out Shopify’s recruiting video and tell me why you wouldn’t choose to work for Harley and Tobi instead of a financial institution or a government organization.

    It’s a great time to be an entrepreneur in Canada. It’s a great time to work for a startup. You should check out the opportunities on the StartupNorth job board.

  • Who Will Be Canada’s Hot Startups in 2012?

    Editor’s note: This is a cross post from Mark Evans Tech written by Mark Evans of ME Consulting. Follow him on Twitter @markevans or MarkEvansTech.com. This post was originally published in January 3, 2012 on MarkEvansTech.com.

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    The flurry of high-tech deals last year saw a bunch of promising startups snapped up – Zite, Rypple, PostRank, PushLife, Tungle and Five Mobile to name a few.

    The encouraging part of the Canadian landscape is the growing number of high-quality startups being created and, thankfully, funded. It means that rather than having M&A activity “hollow” things out, there are more startups ready to step into the spotlight.

    So, who are the Canadian startups that warrant our attention in 2012?

    Who’s going to grow in a major way, attract a significant number of users and customers, launch exciting initiatives, or be acquired. Granted, it’s a subjective list but it is an interesting way to speculate on companies that will capture the spotlight this year. If you leave a comment, I’ll update the list.

    To get the ball rolling, here are some of my choices for the “Hot Startup” list:

    • ScribbleLive, the world’s leading real-time content creation and publishing company whose clients include Reuters, AP and FA.
    • WineAlign, which cracked the 100,000 unique visitor mark for the first time in December
    • 500px, one of the leading places to display and share beautiful photography
    • Pressly, whose technology is helping publishers create mobile Web sites that embrace the “swipe and read” functionality of apps
    • QuickMobile, one of the leading event and conference mobile application developers
    • Atomic Reach, which makes it easier for brand to discover, publish and market content
    • Wave Accounting, which recently raised $5-million to drive growth of its free online accounting service
    • Keek, which offers a video-based social network
    • Fixmo, a mobile security company that recently raised $23-million
    • TribeHR, which develops human resources service for small and medium businesses
    • GoInstant, which is creating technology that lets people co-browse a Web site at the same time.

    Note: ScribbleLive and Atomic Reach are digital marketing clients of my company, ME Consulting.
    Editor’s note: This is a cross post from Mark Evans Tech written by Mark Evans of ME Consulting. Follow him on Twitter @markevans or MarkEvansTech.com. This post was originally published in January 3, 2012 on MarkEvansTech.com.

  • When a Massive Opportunity Knocks!

    Editors Note: This is a guest post by Chris Arsenault (LinkedIn@chrisarsenault) a tech entrepreneur turned venture capitalist. Chris is the Co-Chair of the Canadian Innovation Exchange (CIX), a board member at the Canadian Venture Capital Association (CVCA), a Supporter of the C100, among other things. Follow Chris at chrisarsenault.wordpress.com or on Twitter @chrisarsenault.

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    The last few weeks have certainly proven to be extremely promising for Canadian Tech Entrepreneurs. Almost $80M of equity financing has recently been secured from some of the top investors in the world to help build our next generation of massive tech companies. It’s even more exciting when you realize that these funds are going to three especially young, dynamic and opportunistic companies, all of which are in our backyard!

    Beyond the Rack

    Beyond the RackYona Shtern, Robert Gold and the team over at Montreal-based Beyond the Rack (“BTR”) lead the way with a whooping $37M financing round that should propel the company to new heights yet unseen on the Canadian eCommerce front. BTR has quickly established itself as an eCommerce leader by showing the market that Canadian companies really do know what a “hockey stick” revenue growth chart looks like. The teams’ ability to build such a big company in such a short time frame has earned them our utmost respect. We initially met the team and reviewed their business plan in late 2008; by 2011, they were already ranked as one of the fastest-growing online retailers in the entire world. Yona was also wise in choosing his investors, be it industry specific angels or great VCs such as Panorama Capital, iNovia Capital, Rho Canada, Tandem Expansion, BDC Venture Capital, Highland Capital Partners, EDC and Montreal Start Up. If you aren’t a Beyond the Rack member, don’t wait – register now, and you’ll be impressed!

    Shopify

    Shopify - LogoJust down the road from Montreal is another world class eCommerce team. Ottawa-based Shopify recently closed a $15M second round of financing. Tobias Lutke, Cody Fauser, Daniel Weinand & Harley Finkelstein have developed an industry leading eCommerce platform that is already being used by thousands of leading online retailers around the world. The team, their vision and commitment to execution all combine to make Shopify one of Canada’s tech leaders in an extremely high growth global market. Unfortunately, we missed the boat on the opportunity to work with them, but our friends over at Bessemer Ventures, Firstmark Capital, Felicis Ventures and Georgian Partners were more than happy to come aboard. I’m expecting to see Shopify rise above the tide over the coming years and establish itself as a global leader in its space.

    Fixmo

    FixmoThe most recent team to announce a substantial equity-financing round is Toronto-based Fixmo. Led by its founders Rick Segal, Shyam Sheth and Joyce Janczyn, Fixmo just announced a $23M round. This investment round included both existing investors (iNovia Capital, Panorama Capital, Rho Canada and Extreme Venture Partners) and an impressive syndicate of new lead investors: Silicon Valley-based Kleiner Perkins Caufield & Byers, Washington-based Paladin Capital Group and Hong Kong-based Horizons Ventures. While the company’s core vision has not changed over the last two years, the product development road map has evolved at a rapid pace. Within an extremely short time frame, Fixmo launched a series of Government and Enterprise products, acquired two companies (Conceivium Business Solutions and Chocolate Chunk Apps), established a series of key partnerships and practically jumped ahead of every other Mobile Risk Management solution provider in the market. Obviously, the founders didn’t do it alone, but the sheer fact that Rick was successful in attracting some of the best talent out there (Bruce Gilley, Jonas Gyllensvaan, Tyler Lessard, Lee Cocking, John Yuen and others) speaks to the long term execution ability and potential of Fixmo.

    Ambition coupled with Execution

    The average tech financing round in Canada is under $4M. Therefore, the aforementioned three companies basically raised as much cash as 20 average Canadian tech startups combined. Obviously, I get nervous when I see a company (portfolio or not) raise such a large chunk of cash. Why? It’s not because I like the small size of the average Canadian financing rounds. Rather, it’s because I think that too much money for a young business can be as bad as or worse than not having enough. $15M-$40M rounds for Canadian tech companies are amongst the largest we have seen this side of the border in over 10 years. That being said, I do also think that Canadian Tech Entrepreneurs are now entering a phase of Ambition coupled with Execution. We have lived through too many years of “lack of ambition”, quickly followed by “lack of execution”, not to mention the much lamented “lack of capital”. However, we are now seeing deals done where massive amounts of ambition and execution converge, and capital is becoming available to build large tech companies right here in our own backyard. With more companies able to raise the amount of funding they truly need to generate hundreds of millions of dollars of revenue, not only we will stop selling our companies short, they won’t need to move down south. Hopefully other investors will note the phenomenon, and future startups won’t have as much trouble raising the capital both from Canada and into Canada. And that’s good for all of us.

    At iNovia, when a massive opportunity knocks, we answer! I’m expecting to be sharing a lot more stories about successful Canadian entrepreneurs, and how they’ve built hugely successful companies here as they compete globally for resources, capital and market share. There isn’t much stopping the entrepreneurs driving Canada’s next generation of large tech companies, and for the likes of Beyond the Rack, Shopify, Fixmo and many others, this is just the beginning.

    Congratulations to all the teams mentioned in taking important steps on their paths to success!

    Below some article worth reading with regards the above companies:

    Editors Note: This is a guest post by Chris Arsenault (LinkedIn@chrisarsenault) a tech entrepreneur turned venture capitalist. Chris is the Co-Chair of the Canadian Innovation Exchange (CIX), a board member at the Canadian Venture Capital Association (CVCA), a Supporter of the C100, among other things. Follow Chris at chrisarsenault.wordpress.com or on Twitter @chrisarsenault.

  • Supersize Your Startup Dev Productivity


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    Since I wrote the interview with Farhan of Xtreme Labs on Pair Programming, I have exchanged a number of emails on pair programming & developer productivity with some of Canada’s best developers. Most of them are pure gold that I am posting raw and unedited.

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    “The main thing we like to stress on development is Test Driven development. We just find that it both ensures all the code is well tested, but also guides the architecture in a way that really improves maintainability. We use pairing in our interview process and also like to pair for the first couple of weeks to get developers up to speed, but after that we tend to split up work for the day and then attack separately.” – Jesse Miller, CEO of attachments.me

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    “Whether to use pair programming or alone model really depends on the team personality and the kind of culture the leaders want to shape up. Some people do work better alone, and some prefer more teamwork.

    Personally, I usually value teamwork more than individual results. At the end of the day, individual work will have to be integrated to form the end product, which is what really matters. There are too many examples where people think they got great ideas, but end up in epic failure during implementation. It is a result of not doing deep enough design validation. Coding alone is definitely more effective when you got the design details flushed out. Personally, when I am coding alone, I still ask for 2nd or 3rd opinions on a day to day basis. It forces me to think through the design again and again, which helps to refine my idea further. It is all about attitude. Never believe that you got it right until see the end product.

    Another interesting thing is “pair troubleshooting” is more effective. When you’re trying to debug in an extremely stressed environment, it is always good to have some mental support and another pair of eyes.” – John Yuen, heads up dev for Fixmo

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    “I think that pair programming does actually increase productivity, in most cases, and there are two reasons for this:

    1. It keeps programmers from doing other things:private email, browsing, day dreaming, etc. I doubt that the average programmer actually spends even 50% of their time doing their job. If you can hire two developers, and get the work of one full programmer out of them, then I think, in a lot of cases, that would be an improvement. However, you could get almost the same result by pairing each
    programmer with their own full-time low-cost supervisor who sits beside them to make sure that they’re actually working. This would be a lot cheaper and almost as productive, but the developers would find it insulting. This isn’t always the case of course; there are certainly many self-motivated, disciplined, highly-focused and productive developers who don’t need supervision.

    2. Studies have shown that programmer productivity is limited, not by the time it takes developers to write code, but by the time it takes them to detect and correct errors. The limiting metric isn’t lines-of-code-per-hour, but rather, errors-debugged-per-hour. This is why Java is more productive than C++, despite the two languages being of similar expressive levels, Java’s runtime exceptions make it quicker to detect and recover from many times of errors, and garbage collection completely eliminates many other types. This is where pair-programming comes into play, if someone looking over your shoulder can spot an error as soon as it’s created, then that can lead to a lot of time savings. Maybe it would have only taken you two minutes longer to detect and fix a particular bug, but then gain, maybe it would have taken a week. Your partner wouldn’t need to early-detect very many problems in order to justify the overhead.

    Maybe one developer sitting in a control booth, like a security guard, monitoring the work of half-a-dozen developers all at once, would be a good compromise between pair and pair-less programming.

    Yes, it’s true that ACM programming contests are performed on only one computer, but you rarely have more than one person working on the same problem. While one is typing in and debugging their solution, the other programmers are working with pencil and paper solving their own problems (with occasional help from their team mates as required).

    People are more important than any process or any tool. The best process is to hire the best people and a better developer is the best tool.

    I half agree with what the original article says about hero developers. They say that you don’t need them, and that you’re better off with the a consistently productive 9-to-5’er. I think they’re
    confusing heroes with heroics. I think that you do need heroes, but you don’t need the heroics of pulling all-nighters. Instead, you need the heroics of consistently creative and proactive problem solving which keeps you efficient, effective, and ahead of the game, day in, and day out. Effort should not be confused with results. I think they have the wrong definition of heroics, which leads to the wrong definition for heroes.” – Kevin Greer, Framework Lead at Redknee.

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    Point #2 from Kevin Greer’s comments is widely unappreciated. Most people judge productivity by features and the “to do” list – when in reality it is not the to do list of features that usually makes projects late, it is the killer game of bug squashing, especially as you get to the stressful end of project delivery. Processes that reduce the upfront bug rate or increase the bug solving rate, even at the expense of adding features pay off quickly. This is were pair programming, test driven development, code reviews, architecture chats, etc all come into play. And why “pair troubleshooting” or other tools to debug problems fast are important. And also, use the damn debugger, it is there to make solving bugs faster.

    I’d love to hear from more of the programming community in the comments. Tell us how you supersize your development productivity.

  • Hustle & Flow

    Once upon a time in my startup life, we stumbled across the deal of a lifetime. A large company was spinning off a subsidiary, and they were paying someone a few million bucks to take it off their hands.

    Most folks looked at the numbers and said “no thanks” – $7mm in revenue and spending about $20mm… yuck. But these guys were running the exact same business as us, similar subscriber counts and all, and we knew they could be run spending $3-$5mm per annum (which is what we were spending). For instance their CEO was getting $4mm/annum and ours was making $1/annum (perfect example of why big companies can be bad at launching new products). So we put in a bid for -$2mm (yes thats a minus in front). I.e. pay us $2mm to take your company, and have it generate $2-$4mm a year in cash for us. Booya. You could imagine how excited we were. We basically re-enacted this Monty Pyton scene every day in the office for 2 weeks (word of caution – this is 10 minute video and there’s a part 2):

    Yaaaaar, corporate raiders be we.

    Until, sadly, of course, somebody outbid our -$2mm offer. Damn. I suppose -2mm isn’t that hard to outbid.

    I’m telling this story to give another “meme” to startupdom. Lean product development, social marketing, customer development, iterations, pivots, etc – these are the more popular memes of today. Well there’s another one thats not mentioned enough – Hustle and Flow – doing deals, business development, partnerships, strategics, m&a, etc. There are many big famous startups who had deals with a big elephant: Google powering Yahoo, Amazon powering Target, the Microsoft/Apple/IBM/Xerox tangle, RIM’s pager deal with Ericsson. Its a crucial part of growing your startup, you gotta be able to do deals.

    One of the current killer “deal-oriented” startups in Toronto right now is Kobo Books (@mserbinis). Kobo got frickin’ Li Ka Shing to back them, the guy is a business legend! Why waste time with tiny business punks like Paul Graham and Dave McClure (I joke) when you can have a business God invest in you. Plus Kobo has done huge, killer deals from top to bottom in every category of their business – checkout their partner list in here. That my friends is big pimpin’ Canadian startup style.

    Here’s another one, check out the list of deals Fixmo (@ricksegal, @shyamsheth) has done. They acquired a company (Conceivium) as a year and a half old startup! How many of you entrepreneurs in your first year or so wake up and say “lets buy a company”. On top of that, as an unknown one year old startup they walked into the Department of Defense in the US and nailed a massive deal. That is pure brass-balled, biz dev game.

    Would love to hear some other great Canadian business hustler success stories from folks (or near misses, or disasters), or give us your favourite links/resources for networking, bd, m&a, hustling, pimping, whatever. We’ll be following up with some resources and tips to help your biz dev game.