They came to Gastown to find out more from developers and companies working in mobile here in Vancouver, to tell us more about themselves and the services they offer, and to feed us free beer and pizza.

Michael ran the evening admirably. He had everyone sit in a circle, introduce themselves, their company, their projects, and talk about challenges they were facing around mobile here in BC. We didn’t get very far before some person’s commentary on anything from embracing the web as THE path for mobile development or a discussion on funding realities right now evolved into a discussion by everyone in the room.

I talked a bit about Bootup Labs, a bit about the VCC program (info on BC’s Venture Capital Programs here) that we’re applying for, and a plea for less duplication and more working together on common issues. Things like “HR bootcamp” or a seminar on getting investor ready is not at all specific to mobile startups, and I’d hope that local industry groups work together on co-sponsoring or organizing such events.

Lastly on the funding side of things, I mentioned the JumpStart program from the BlackBerry Partners Fund — this is something to keep an eye on to get started with really early stage. For those that are currently iPhone crazy, getting some investment dollars to focus on BlackBerry might be what it takes for people to look at the platform more closely. I definitely think there are interesting demographics around it, and of course folks are much more guaranteed to have things like data plans.

Back to the discussion, the huge theme was seeing the web as the primary platform for delivery, and anything like device specific applications being a step backwards. There were a handful of Nitobi developers there that in particular esposed this point of view, hence their involvement in the open source Phone Gap project, to make native iPhone apps (and soon, Android) using just web technologies. Parveen Kaler from Smartful Studios – who comes from a game developer / console background where he has dealt with lots of “gatekeeper” companies with much stricter rules and is now building iPhone apps – was the main contrarian: he’s loving Objective C and developing natively for the platform, and his business model fits with the rules in place.

It was great to find out more about Wavefront and the programs they’re currently offering. The item of biggest interest, judging by the crowd, is probably the handset library they are going to build up. They have a couple of G1 Android phones today, and one of them already got lent to the guys from Handi Mobility. I still see a little bit of overlap with, for example, WINBC, but it would be great if Wavefront focused on the developer / technology / direct carrier interactions. I think leading these type of developer-centric gathering events would be a great direction for Wavefront, and hope to see more of them as they get ramped up.

It will require a culture that pushes rapid assessment and admission of mistakes, rewards innovation and compensates heavily for successes that can be broadly applied. Most large venture firms find this activity too time-consuming and capital inefficient to warrant much attention. In the future I believe that getting the base right will be the key to success in the large-scale venture field.

Bootup Labs is the base of the Pyramid.  We live to serve the rest of the Venture Capitalists who don’t feel like changing their model or letting go of their management fees.  Help us, help you.

Thanks Guillaume, Thierry, and the rest of the San Francisco and Palo Alto office teams for putting this event on. We’re looking forward to be involved in the regional Boot Camps as well. Full post of the results / press release after the jump.

Title:  SFRAN0029 - Canadian Technology Start-ups Plug and Play in Silicon Valley!

1. Summary:

The Consulate General of Canada in San Francisco /Silicon Valley, in partnership with the Canadian Chapter of the Association of University Research Parks (AURP), organized a venture financing “Boot Camp” for IT start-ups in conjunction with an Investor Forum and EXPO at a successful local incubator, Plug and Play Tech Center.  The two-day program was delivered to 21 Canadian companies and five Canadian incubators, October 20-21, 2008, in Santa Clara, California, with a view to prepare companies’ investment pitches and put what they learn immediately to practice in front of  Silicon Valley investors.  Detailed program click here.

2. Key Findings/Outcomes:
High client demand for VC access services: 25+ Canadian technology start-ups indicated strong interest after a first broadcast (Company Profiles click here) as well as 5 incubators (OCRI, MaRS, Waterloo, Victoria, and Bootup Lab/Vancouver)
High client satisfaction for this formula as indicated by spontaneous client testimonials and follow-up survey: Business Plan/Pitch Review + Exposure to about 30 Silicon Valley Venture Capitalists/ Angels (Full agenda click here)
Immediate success was recorded from a few participating start-ups in securing funding and/or partnerships (at least 3 tangible transactions)
One of the participating Canadian companies, Redwood Technologies, won the Plug and Play pitch competition (43 international participants)
Post is actively working with a number of these new clients, introducing them to additional VCs and other contacts
AURP and participating science parks would like to repeat the exercise and possibly open a Canada Pavilion at Plug and Play as an added-value service to clients - At least one company decided to move to Plug and Play in order to get access to network of investors and partners
There would be value to host regional “Boot Camps” in selected Canadian cities ahead of time of a follow-up start-up mission to the Silicon Valley.  This would also allow a better qualification of companies for this activity
In spite of financial crisis, a number of Silicon Valley VCs are still in an investment mode
3. Next Steps:
In association with IT cluster organizations and DFAIT regional offices, SFRAN will coordinate a series of “Boot Camps” in selected cities across Canada, to be facilitated by Chris Gill, the Executive Director of  the Silicon Valley Association of Start-up Entrepreneurs (SVASE).  This may take place in the early spring in preparation for a follow-up mission by qualified companies before the summer.
Most suitable technology start-ups will then participate in the second phase of the program in the Silicon Valley with a view to get maximum exposure to VCs and Angels: very early-stage start-ups would participate in the Plug and Play Tech Centre EXPO/ PACT (Date TBC in April/may 09); more mature companies would participate in “Launch Silicon Valley” (Date TBC in April/may 09)
Post will assist in the identification of resources for opening a Canadian Pavilion at the Plug and Play Tech Center to facilitate the temporary stay of Canadian start-up entrepreneurs in the Silicon Valley, to allow them to quickly be “up and running”.

4. Report:

The Silicon Valley is home to more than 500 VC firms and received last year approximately 35% of all VC investment in the US (+$10B).  This is also the home of the largest concentration of entrepreneurs, including numerous Canadians who moved to the Valley to launch or grow their own business.  This market is therefore of great appeal to Canadian techno-entrepreneurs who can get access to venture financing, strategic partners, clients (including some of the largest IT  and life-science companies) and share experience with peers in a highly networked environment.

Targeting this clientele, SFRAN/PALTO arranged its first IT start-up boot camp with the support of Chris Gill, Executive Director of SVASE, a local association devoted to assist technology start-ups excel in the Silicon Valley, and some VC friends of the Consulate.  The program was developed in order to give start-ups as much exposure as possible to venture capitalists while providing them with the education/right tools to succeed in this very competitive market.  Recruitment for the project was undertaken through DFAIT regional offices, DFAIT HQ colleagues, NRC, Industry Canada, and Various Research Parks and Incubators across Canada.

The program started with a coaching session led by Chris Gill. Many topics were covered in this session from “how fundable is my business” to “what should I include in my pitch” to “what potential investors are looking for”.  Two guests from RIM and the new Blackberry Partners Fund were invited over lunch as keynote speakers.  The afternoon session was a dry run for participating start-ups in pitching their business in front of two panels of three local venture capitalists and an opportunity to receive constructive feedback following their performance. This component of the program was key in order to assist start-ups to prepare their pitches to 30+ venture capitalists the day after.  Beyond communication aspects, it turns out that the session was also useful in refining some aspects of business plans.

The second day was essentially concentrated on the pitch competition and EXPO, although Post arranged a visit to Google headquarters, in Mountain View, a global company which was not so long ago a small “garage” start-up.  More than 300 people attended the pitch competition and EXPO, and several high-level players from the Valley shared insights on where the industry goes and what are their expectations.  Canadian start-ups, with competitors from other countries such as Israel, Spain and Australia to only name a few, were given 2 minutes to pitch their business to a crowd of venture capitalists during the “extreme” pitching session. It is a total of 43 companies who pitched, whom from which 21 were from Canada. Start-ups that were the most fundable were then given an additional 10 minutes to present their ideas in more details; two Canadian companies were selected to come back for the 10-minute presentation and Redwood Technologies from Calgary actually won first place. The program concluded with a networking reception including all start-ups that were in attendance, various industry players and venture capitalists.

5. Feedback:

We administered an e-survey to capture everyone’s feedback and improve this program moving forward. Feedback received so far were very positive ranging from “I have learned more in 4 hours that in 4 months” to “Thanks for opening my eyes to Silicon Valley … we are now planning our next trip to San Francisco to meet with VCs” to “First exposure to the Valley and gained significant insight on the opportunities in the Valley and what VCs are expecting”. For complete analysis matrix, please click here.

6. All company profiles of participating start-ups can be found here.

7. Lessons learned on the format and follow-up:
Develop this program on an annual basis
Run 2-minute extreme pitching dry runs on the preparatory day
Hold “Boot Camps” in major Canadian IT clusters while ensuring a national reach
Have more lead time for adjusting presentations
Open a Canadian Pavilion at Plug and Play Tech Centre to facilitate entry of start-ups in this market
AURP will spread the gospel among their 27 national members and post articles in their monthly newsletters
8. Conclusion and Acknowledgement:

We wish to thank all participating Canadian start-ups for the hard work and professionalism they have put into fine tuning their pitches and plan. Special thanks to the Canadian Chapter of the Association of University Research Parks for partnering with DFAIT to make funding available to participating start-ups. The energy emanating from the group was stimulating and everyone in SFRAN/PALTO look forward to build on the success of this project.

Drafted /Released: Guillaume Parent, Trade Commissioner
Consulted /Approved: Thierry Weissenburger, Senior Trade Commissioner

Congrats to Steve, Mike, Kirk, and Hans.  But more importantly, I think this is a big win for the Vancouver tech scene in general.  Many funds around town have put themselves in maintenance mode, and angels are in a wait and see pattern, which has all but halted any new innovation in BC.  I’m hoping that Yaletown folks will be acting like kids in a candy store.

My favorite warren buffet quote: “Be fearful when people are greedy, and be greedy when people are fearful.”

As Sean says, Chris Gill from Silicon Valley Association of Startup Entrepreneurs (SVASE) did a great job of running the presentation Bootcamp organized by the Federal government trade commissioners. I think there was consensus that running such a Bootcamp on a regional / provincial level would be ideal: get everyone trained in their home locations, and then do an investment roadshow to Silicon Valley similar to how TechStars, Y-Combinator, and Seed Camp do.

There were lots of connections to be made with Canadian companies from across the country, and we’re still navigating our way through introductions at both the Federal and provincial level. There definitely are resources to lean on, it’s a matter of finding the right ones. To continue those connections, please join the PACT Canada 2008 LinkedIn group so we can stay in touch.

Image by bmann via Flickr

And yes, the Mai Tais were delicious, and *I* think they helped loosen us up for presenting the next day.

1. Slide Deck
2. Executive Summary
3. Financial Projections

I’m taking a few minutes to catch up on my reading when I came across May Chu’s post on the Clarity Accounting blog - Don’t be afraid to be small. It’s an absolutely great write up of their approach to their business.

Less than 12 hours ago, I received an email sent through our contact form from a potential client who wanted to know more about our company. He wanted to know how long we have been in business and how big our firm is. He noted that our mailing address looked like a small business running out of some one’s apartment. He wanted to know if the business he is dealing with is a big, fail-proof company.

At first I was worried about how best to respond to this inquiry. After all, we are a small company that is run virtually. Everyone who has ever worked on this project has been contracted virtually. In the spirit of being an online accounting software, we conduct our business using as many “online tools” as possible.

Go read the whole post, and also check out the two Seth Godin posts that May references — Small is the new big, from 2005, and his recent post Too small to fail.

May and Dobes are doing a great job with Clarity Accounting, building their business one piece at a time, and I can’t help but think that they will be highly successful. I’ll leave you with another piece of information that I think highlights this:

Recently I found out that a company providing similar services as us burns 6 million dollars a year. I thought to myself, “wow, give me 6 million dollars and I would only spend a fraction of that amount”. In fact, within 1 month of our full launch, the business is already paying its own bills.

Image by akakumo via Flickr

Yeah, that title has probably been overused a lot lately. We have a joke here in the office that pretty much anyone that has a website can now say that they do “cloud computing“. But we *have* been doing a lot of thinking about how hosting and Internet infrastructure will be changing. From the beginning of thinking about Bootup Labs, we also thought that we could support the companies we were working with by helping point them at best practices around scalable web services: from hosted tools to hosting providers.

LayerBoom is Trevor’s baby: it’s tackling problems around next-gen hosting and virtualization that would be THE area that I would have been diving into if Bootup weren’t around. Now I get to have my cake and eat it too, as I peer over Trevor’s shoulder in investigating where all this stuff is going.

To that end, I completely agree with his most recent post on the future of the hosting industry: Hosting Apocalypse. Yep, that does deserve a drumroll and an explosion. I could go into all sorts of Gutenberg printing press analogies etc., but the fact of the matter is that we don’t really know what orders of magnitude changes affect: some businesses are destroyed, but like fireweed after a fire, new opportunities are created. Hmm, kind of sounds like the current economic situation, too.

Other folks covering related ideas include Mark Mayo, who writes about the changing role / skillset of sysadmins. Tim Bray’s Tough Times series covers infrastructure in part. Zero Cloud Lockin is having a good discussion on what does or does not constitute lock in with platforms.

Lastly, the ask. LayerBoom is running a survey asking what people would want from tools to run their own cloud. Trevor will be sharing the results on the blog, trying to get some data to see if the hosting apocalypse concept is real, and how far away it is.

I do, however, have two fundamental beliefs:

1. The economy will recover at some point (1-5 years)
2. Investors make the most money when they buy low and sell high.

So am I making is this just too simple?  Is the “Buy low and sell high” doctrine just too obvious to really work?  With the dow closing at 9447 today, I think we can all agree, that we’re in a buyers market.  Take Warren Buffet and JP Morgan for example.  A New York Times article, Like J.P. Morgan, Warren E. Buffett Braves a Crisis, calls Warren a “Profitable Patriot”.  The biggest fortunes in the world’s history have been made in times like these. But investors are also human, and fear does often override this basic common sense logic.  The smartest investors are the ones who can put their fears aside, and invest long in companies now, when valuations are low.  By the time these companies are ready for a liquidation event, the markets will have returned.  I still find it very puzzling how some long term investors (like Angels and VCs investing in private startups) make investment decisions based on short term indicators.  Ron Conway is one of the more respected Angel investors, and I take the message that he’s sending out to entrepreneurs as a pragmatic warning of my very point.

“I would tell (entrepreneurs) to keep their day job until they got one year of funding, and if they couldn’t get that, then they’re not meant to start that company right now…. My advice to (start ups that don’t have a year’s worth of money in the bank) would be to raise money by reducing your own spending. If you can’t raise more money, you have to cut costs. And that’s what I’m harping on to my companies.”

Vancouver’s own Lyal Avery had some pretty insightful words to say in the comments:

“With all respect to Mr. Conway, I think it’s dangerous advice to tell people behind startups to “not quit their day job.” In my opinion, economic downturns are the perfect time to get started - the conditions are better than during a boom. Labour is cheap, distractions are minimized, and a lack of over-abundant investment means the business models produced can weather future storms. “