Mark your calendars.

Fred Wilson of Union Square Ventures will be keynoting DemoCamp Toronto # 27 on October 6, 2010.

How did we pull this off? Well the big shout out goes to William Mougayar at Eqentia, this would not have happened without the support and efforts of William. In case you haven’t seen Eqentia, they power custom portals for media monitoring, competitive intelligence, knowledge tracking and more. They power two sites that I use daily to track the Canadian emerging technology scene: CVCA and NextMontreal news widget.  We’ll be launching a full Eqentia powered news portal in the next couple of weeks.

The full details about DCT27 are still being locked down. The venue is still to be determined. The venue is the bulk of the ticket price. The goal with ticketing has always been cost recovery and we’ll aim to keep tickets inexpensive (current model show about $25/person less for students).

DemoCamp Toronto 27 Details

• Date: October 6, 2010 [Hold the Date - iCal]
• Time: 11:30am – 3:30pm
• Location: To be determined
• Notify me when tickets are available

I want to demo! Pick me, pick me!

We’re also looking for up to 5 local demos that match the investment thesis at Union Square Ventures. If you think your company has the right stuff then you should apply to demo.

This is a guest post by Startup Weekend Toronto organizer Chris Eben.

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Let’s build some more startups in Toronto! According to StartupIndex, the GTA has 325 startups – by September 26, we might be able create 10 new startups in Toronto.

Startup Weekend, a 54 hour event in which teams go from idea to launch to pitch in a weekend, comes to Toronto September 24-26 at Ryerson University through StartMeUp Ryerson. Check it out here and get registered while tickets are still available.

The only way to determine whether entrepreneurship is for you is by actually going for it, and Startup Weekend gives you that opportunity. Going from idea to pitch requires working on every facet of entrepreneurship – researching a market, articulating the unique value proposition, competitive advantages, user acquisition strategy, business model, building the prototype, and more. You will work on and learn all the critical things you should be thinking about when starting a company and get practical experience.

After the weekend, you can continue working on your project making it your path to entrepreneurship, or you can take what you learned during the weekend and apply it to your next venture. Over 36% of Startup Weekend companies are still alive after 3 months, and over 10% of companies go on to produce revenue or get seed funding.

Startup Weekend is a great way to network with other passionate entrepreneurs and find potential co-founders. During Startup Weekend, you will not only meet some talented individuals, you will get to see how they work, helping you evaluate the potential for long term fit. Interaction and exchange of ideas between different teams is common which means your networking opportunities are not limited to your immediate team.

Every Startup Weekend participant walks away learning a lot about startups and making some valuable connections. There is a great line up of speakers:

• Mike McDerment, CEO of FreshBooks
• Mark Ruddock, former CEO of Viigo (bought by RIM)
• James Lanthier, COO of Mood Media
• Sarah Prevette, CEO of Sprouter
• Tim Smith, CEO of GridCentric
• April Dunford founder of Rocket Launch Marketing
• Leila Boujnane, founder and CEO of Idee Inc.

They, along with a growing list of other experienced folks from the local community will be involved as mentors and judges to help teams during their weekend journey and provide constructive feedback. Attendees will take away valuable lessons to be applied to their current projects and anything they do in the future.

While Startup Weekend is a non-profit organization, there is a cost to the event to cover expenses.  StartupNorth readers may use discount code “StartupNorthSWTO” for a significant discount.

Follow @startupwkndTO and #swtoronto for news and updates leading up to the event.

We wrapped up another amazing C100 Mentoring (C1M) session the other week with mentors in San Jose talking live and in-person to a group of great companies in Toronto via Telepresense. As with all of these “TP” meetings, the wonder of the technology quickly melts away and the groups on either side of the video wall were able to really get down to business.

We were fortunate in this last C1M session to have Rick Spence of the National Post sit in on the session and he shared his main take-aways in a recent article headlined:  Startups get face-time with Valley veterans.

It is always interesting to read what main points a third party to a C1M session zeroes in on. From Spence’s point-of-view (with some of my commentary) the main things that the recent C1M start-ups need to think about are:

• Keep it quick; or as he put it “sum up the pitch early.” He highlights that companies need to perfect the elevator pitch. Say what you do quickly and simply. Spence says 30 seconds but I would argue that event that is too generous for the real world (we give you some leeway in C1M, so 30 seconds is OK.) Out there, keep it to 15 to 20 seconds and keep it punchy!
• K.I.S.S me! That’s right, when you’re out there trying to explain what it is you do, keep it short, sure, but please also “keep it simple, supplicant”* If your technology or application or web service or whatever cannot be explained in simple language then what you are doing is either (1) too esoteric for these crude Earthly market or (2) not explaining it right. If the answer is (1), you’ve got bigger problems but more often the answer is (2) and you need to step back, detach yourself from your product/service, and figure out how to articulate your value-proposition in a simple, compelling manner
• “Focus, Focus, Focus”- I won’t add any commentary here. Just focus on those three words and the point is made
• Note when I said “K.I.S.S. me!,” specific reference was made to articulating a“value-proposition,” that was on purpose. Sometimes we love to talk tech and how great our little service or gizmo works. If you’re after engineering brownie points, that approach works great. But if you’re after customers, forget the tech and focus on value.
• Sales is what it is all about. There is only one group of people that can make any business successful, start-up or otherwise. No, it isn’t investors, partners, or event the founders themselves. The only group of people who can make a company a success is customers and securing their support is called selling. Make sure you find someone who knows how to do that.

These insights are a very good summary of the conversation across all three companies. We touched on each of these points in one way or another with each company we met.

In addition to the points listed above, the mantra that I was repeating for each company was segment and prioritize.

I know that a lot of new companies have to throw whatever they can against the wall and see what sticks. That approach has its place, but it can also burn precious resources with little return. I’m a huge fan of looking across your (potential) customer based, segmenting them and then having a laser-focus on the ones that will be most profitable. Too often, I got the sense companies were trying to do everything all at once. Even if a product/service has multiple applications, there needs to be the discipline within a company to figure out which application has the most immediate promise and then going after the relevant customers.

*I have to admit, I had to look up what “supplicant” means. The Dictionary.com definition was “a person who supplicates”, which wasn’t very helpful.

The brain drain. Canadian actors in Hollywood. This was a common thread for a in Canadian media outlets. But there is something new going on in tech north of the border. International corporations have been snapping up Canadian startups and talent. Foreign investors (think US Venture Capitalists) are looking north of the 49th parallel to actively deploy capital in high growth, scalable companies. Just look at the recent track record of activity in the past 9 months.

Recent Exits

• Layerboom acquired by Joyent.
• Plan9 acquired by Apple.
• Sysomos acquired by MarketWire.
• SmallThought acquired by Twitter.
• Opalis acquired by Microsoft.
• Bumptop acquired by Google.
• Sitemasher was acquired by Salesforce.
• CoverItLive was acquired by Demand Media.

Recent Foreign-led Investments

• Highland Capital Partners invests in Montreal-based Beyond the Rack.
• Bridgescale Venture Partners invests in Toronto-based Dayforce.
• Bridgescale Venture Partners invests in Toronto-based Bluecat Networks.
• FTV Capital invests $35M in Toronto-based Varicent.
• Altos Ventures invests $4.5M in Toronto & SF-based Kontagent.
• Metamorphic Ventures invests $1.5M in Toronto-based Chango.
• Grandbanks Capital invests in Toronto-based iLoveRewards.
• Grandbanks Capital invests in Toronto-based xkoto.
• Panorama Capital invests $8M in Calgary-based Tynt.

So just what is going on. Why the sudden interest and opportunity?

1. A History Lower Valuations, Less Capital & More Traction
   When you look at the historical news archive from the Canadian Venture Capital Association (CVCA) about the state of venture capital in Canada you begin to see a common thread. Canadian companies generally raise less money than their US counterparts at each stage of growth. This leads to lower valuations and more traction from local investors and has created a generation of Canadian entrepreneurs that are used to funding growth from profits. In 2009, the US market saw US$18 billion invested through venture capital. Canada startups only raised approximately US$1 billion representing 5.5% of the US number (source: Wellington Fund blog). The challenge is that the Canadian economy is approximatley 12.5% of the US economy and this leaves a significant gap in the amount of potential capital being deployed to Canadian startups. There is a gap in the level of investment and the overall economic performance in Canada. This leaves a huge opportunity for other funding sources.
2. Strong Local Communities
   When you look across Canada entrepreneurs are using the web, events and models developed locally and internationally to connect each other, share information and build successful startups. There are examples ranging from government funded initatives like the Accelerator Centre in Waterloo, WavefrontAC in Vancouver, the RIC Centre, MaRS, Lead to Win in Ottawa, and Communitech (there are a ton more). There are grassroots movements like DemoCamp, MontrealNewTech, StartupCamp and LaunchParty happening across the country. There are an emerging set of incubators and early investors like BootupLabs, Extreme Ventures, Montreal StartUp/Founder Fuel, and Mantella VP. These communities provide entrepreneurs opportunities to connect with other entrepreneurs and seed investors to share methods, pursue informed development and find mentorship and funding.
3. Close Proximity
   As soon as you decide to get on a plane, the game has changed. It’s not about can I drive to a board meeting in less than 45 minutes. It’s about can I make return travel in the same day. Flights to Vancouver from San Francisco are only minutes longer than flights to Seattle. If you’re leaving the comforts of Silicon Valley to travel to Seattle, Boulder, or other destinations than you should consider Vancouver. Toronto and Montreal in the same geographical proximity to Boston, New York and Chicago. The decision for most investors has less to do with travel and more to do with finding great companies whose growth can be accelerated. Having an international border throws a couple of new complications (see the next section Taxation Reforms) into the mix but it should not prevent investment or acquisition. There might be taxation and immigration impact on
4. Taxation Reforms
   Charley Lax at Grandbanks Capital was a vocal critic of Section 116 of the Canada Tax Act. However, on March 4, 2010 Finance Minister Jim Flaherty announced amendments to the Act that excluded shares of Canadian private companies. Basically, this removed a major tax barrier to foreign investment opportunities. A few of the deals listed above where completed before the changes to Section 116, significantly more seed and early-stage deals involving capital from US investors can be seen.

The times are a changin’

Conspiracy theories of Canadians infiltrating American companies are mostly true. But the brain drain is a thing of the past. Silicon Valley is heading north to find new deals, new talent, and new opportunities. Grow Conference in Vancouver is a prime example of the exploration north of the border. Elite investors like Rob Hayes of First Round Capital, Dave McClure of FoundersFund, Jeff Clavier of SoftTech VC are heading across the border to engage with Canadian entrepreneurs and startups. The Canadian Tech Mafia, sorry the C100, continues to show a strong presence with Rob Chaplinsky from Bridgescale, Chris Albinson of Panorama and others.

Happy 1st Birthday Guestlist!

Guestlist has had a couple of weeks. On July 12, 2010 they launched their paid service which finally allows the company to generate fees for the great service they provide. We started using Guestlist for events starting on September 24, 2009 for DemoCamp Toronto # 22 aka An Evening with Yossi Vardi.

“What began as a dare between three friends to actually finish a software product has turned into full-fledged web service that has helped hundreds of event organizers sell tickets online and keep tabs on their cash flow. Over that period we’ve collected half a million dollars on behalf of our users, a near-majority of which was delivered directly to charities. All powered by word of mouth.” – Ben Vinegar, Guestlistapp

It’s been a great year for Guestlist enabling over $500,000 in transaction revenue. This is great traction for the small team. Sure it’s only $10,000 using the 2% paid service fee. But this is fantastic traction given that this is a part time project with all 3 team members working other jobs. The demonstrated traction helped the team realize the potential of Guestlist as a business.

“That’s the story of what our team put together, part time, over one year. We can’t say it was easy; building and maintaining a quality application part-time requires a lot of dedication and free time. That’s why we’re excited to announce that 2/3s of our team has opted to work full-time on Guestlist going forward.”

If you’re planning an event and you want a great event application, I can highly recommend Guestlist.

Friendly neighbourhood reminder that tomorrow, June 30, 2010, is StartupDrinks (well tonight in Saskatoon & Regina). On June 30, 2010 you can join entrepretreneurs in:

• Montreal,
• Toronto,
• St. John,
• Calgary,
• Halifax,
• Fredericton,
• Saint John,
• and Moncton.

Jevon is going to be hanging out in Halifax. Ray is going to be in Montreal. Jonas, Bryan and I are planning on being at Grace O’Malleys (aka Granuaile), 14 Duncan St, Toronto, ON.

It’s a great opportunity to get out of the office. To be social. To connect with others that are struggling building companies like you. What will we be talking about? We’ll be talking about “How to grow your traffic from 1k to 35k on $0” and other things. What do you want to talk about?

Here’s

C100 is hitting the road (virtually) and will be bringing the next C100 mentoring session to Toronto. We’re working with our partners Extreme Venture Partners and are looking for three companies to participate.

Interested? Please apply via our application process.

Finalists will be notified week of July 12.

Interested in attending next Monday’s session with Wired.com’s Evan Hansen? StartupNorth has secured 20 seats, which would otherwise cost $85 each. Register for a free pass through StartupNorth while tickets are available: http://guestlistapp.com/events/24501

Gone are the days when we scrambled to the set to catch our favourite shows in their scheduled timeslot. Today’s viewers want personalized, on-demand access and a host of high-tech innovators are giving them exactly that. Join Wired.com’s Editor in Chief, Evan Hansen for a discussion on the new realities of entertainment and all things digital.

Date – Monday, June 21, 2010
Location – Events On The Park, 1095 Leslie Street, Toronto, ON
Breakfast – 7:30am
Session - 8:00am to 9:00am

Our friends at C100 and Bootup are bringing Dealmaker Media to Vancouver for a great event in August. If you don’t know Dealmaker, you should. It’s run by a Canadian, Debbie Landa. They produce 2 of the most valuable events for startups in Silicon Valley and Los Angeles – check out Under the Radar for a list of events and companies.

They are producing an event, Grow 2010, in Vancouver on August 19-21, 2010.

The event is a 3 day event with an invite-only Day 1 to connect Canadian founders with the best and brightest from Silicon Valley and across CAnada. Days 2 & 3 feature great speakers and the opportunity to build unique lasting relationships.

• Tony Hsieh, CEO, Zappos
• Tom Conrad, CTO, Pandora
• Lane Becker, Co-Founder and President, Get Satisfaction
• Leonard Brody, President,Clarity Digital
• Dave McClure, 500 Hats
• Dan Martell, Flowtown
• Rob Hayes, First Round Capital
• Aydin Senkut, Felicis Ventures
• Ariel Poler, TextMarks
• Bill Tai, Charles River Ventures
• Jeff Clavier, SoftTechVC
• Rick Segal, FixMo
• Dana Settle, Greycroft Partners
• Chris Albsinson, Panorama Capital
• Rob Chaplinsky, Bridgescale Partners

 If you’re an entrepreneur and you missed MeshU in Toronto (and it’s really too bad, this was one of my favourite events of the past 2 years), you should attend Grow 2010. Buy your ticket today and it’s $185, if you miss the super early bird (or as I like to call it the just getting in from a late night), you can grab an early bird ticket for only $230. This is unbelievable! Add in an approximately $700 flight it’s possible to do this for less than $1500. It’s worth the opportunity to meet the companies, build the connections, and help grow your company.

We’ll be coordinating shared hotel rooms for entrepreneurs from Toronto, Montreal, Waterloo, Ottawa, Halifax and anywhere. If you’re not local to Vancouver we’ll help you find a shared room to manage your costs. Add a comment if you are attending and we’ll try to help you find a roommate.

Next Wednesday (May 26) StartupNorth is organizing an Open Coffee in Ottawa. It is an opportunity for entrepreneurs, developers, and investors to connect at an informal meetup. We’ll be heading to Bridgehead Coffeehouse (109 Bank Street, Ottawa) from 10am to 1pm.

Open Coffee Ottawa
Bridgehead Coffeehouse
109 Bank Street, Ottawa
10am to 1pm