The 24th Angel Forum, held at the SFU Harbour Centre, is a chance for investors and start-ups to meet, pitch and network. But it's also a chance for a look at the venture capital space as a whole.
2008 is (not surprisingly) being termed an "interesting time", given the continued credit crisis and the skittish nature of the American investment landscape. But the upside for new businesses is that inputs cost less, there's a wider choice of labour at a cheaper price, and companies can develop their product with less pressure from competitors.
Randy Garg, the Managing Director of Corporate Finance at Price Waterhouse Coopers, gave his traditional address to the Angel Forum at the opening ceremony with a summary of the current venture funding climate.
VC funding is down 33 percent YTD in Canada from the same time in 2008, thanks to the ongoing financial crisis affecting world markets. US investment has flattened, and foreign VC investment is down to 27 percent, down from 41 percent in 2007.
Investment in internet ventures is down, but cleantech investments are on the rise. Life sciences investments are also up, but are more capital intensive and take longer to get off the ground. Technology investment is down primarily due to the continued financial uncertainty in the United States.
THe US IPO market is at its lowest point in 30 years, with only 5 IPOS in the United States, and only one in Canada. Garg said consolidation would be the model for smaller companies in the immediate future, due to the weakness in the M and A market after the debt that financed it dried up in the credit crisis.
But not every company has stopped buying, though surprisingly Google and Cisco have pulled back from their usual pace of acquisition. Microsoft and Oracle are still buying companies, though they are picking and choosing smaller firms.
In terms of BC business, the province is up slightly at $79 million invested in 17 companies, and Yaletown Ventures recently closed a 65 million round focused on cleantech and IT. But while BC is the 3rd highest area of investment in Canada, it's only 16th in North America, trailing behind Maryland.
The world in which you do business is one we understand well. That's why we customize what we do to incorporate all the services, products and... [more]
Via Dave Olson, Happyfrog Community Manager and man of many hats, comes word that green community site Happyfrog.ca is merging with 3rd Whale. They will go forward under the 3rd Whale name. Happyfrog was started in 2006 by Ron Williams after he sold Dragonfly Media, a company he founded, and moved to BC. 3rd Whale was also started in the Lower Mainland by Boyd Cohen, an assistant professor at SFU, and has recently opened an office in San Francisco.
Dr. Cohen, CEO, points out, "By combining happyfrog's expertise in web delivery of green business listings, and related community engagement, with the growing global brand of 3rdwhale.com and our mobile application, we are poised to initiate truly global change."
Williams, now President of 3rd Whale, expressed his excitement with the merger saying, "When I first dreamed of creating happyfrog.ca, I knew partnering with values and technology-aligned companies would be the key to scaling to a larger base. Upon meeting the 3rd Whale team, I knew we'd found a great fit to bring our local prototype to a worldwide audience."
3rd Whale has been developing Luna, a mobile application that allows one to search for nearby green-minded businesses. An iPhone release is scheduled for November 14, with Blackberry and Android versions to follow. Luna will benefit from Happyfrog's plentiful directory of BC green businesses, which came in second place in this year's Georgia Straight Best of Vancouver Awards for the category of Best Local Web Site For Green Living. Members of both sites will benefit from a larger community working together. Congrats to Happyfrog for pulling off an exit during a "recession".
Disclosure: I covered a couple events for the Happyfrog blog earlier this year. I also live on the planet that both companies desire to protect.
Painfully-outdated bureaucracy: 1. Ride-sharing: 0.
Greg Andrews reported back in August that Toronto-based ride-sharing site PickupPal was accused of violating carpool laws in Ontario. Today PickupPal has been officially dealt a blow by the Ontario Highway Transportation Board - ridesharing in Ontario has been deemed illegal unless very specific criteria are met. The travel must be from home to work only, municipal boundaries can't be crossed, you must ride with the same driver each day, and you must pay the driver no more than once per week. PickupPal was fined just over $11,000 for facilitating a ride from Toronto to Montreal, where the driver was paid $60. This was an unfortunate win for Trentway Wagner bus company and an embarassing ruling for Ontario. Billions have been spent on carpool lanes, so in the spirit of ineffective bureaucracy let's try to keep as many people out of them as possible.
Fortunately, the Ontario Government has put up a proposed amendment to the law, which right now states that anyone offering a ride to strangers and charging a fee must have a special licence and insurance for operating a 'public vehicle.'
"Encouraging more Ontarians to carpool is part of Ontario's plan to reduce harmful emissions, ease traffic congestion and fight climate change. That is why the proposed legislation also includes measures to remove the existing red tape associated with forming carpools in Ontario," Transportation Minister Jim Bradley annouced in October.
Good intentions aside, it hasn't yet happened and PickupPal is left with a hefty fine for trying to do a good deed.
Launched in January 2008, PickupPal allows a private vehicle engaged in a transportation event (a one-way trip from A to B) to be matched... [more]
Scanning Vancouver's MSM headlines today, I caught this story about Vancouver Chrysler, closing after 20 years. Their currently location at Main and Terminal is slated to become housing as part of the Southeast False Creek redevelopment, and no deal could be reached with Chrysler LLC for a new location. Unfortunate but unsurprising, with global economic uncertainty and a looming reality of peak oil rapidly slowing auto sales.
I bike past this dealership often, and this news struck me as very amusing when you realize what recently opened up just across the street. It's a little obscure and you could be forgiven for missing it, but it's the showroom of Vancouver-based Envia Systems, who convert existing gas-powered vehicles to electric or hybrid-electric. As News1130 points out, it earns the title of Canada's first electric vehicle showroom. CBC recently profiled Envia, and it's founder Jay Giraud, a former pro snowboarder and owner of a snowboard clothing company.
"Ever since I was a kid I thought cars should be electric," he says.
...
A year ago he formed the privately funded Envia and has now partnered with Metro Ford Motors in Port Coquitlam, one of the largest fleet vehicle dealers in Western Canada, to convert gas-powered Fords to electric and hybrid-electric vehicles.
....
Giraud plans to convert 1,000 Ford vehicles to electric or hybrid models by the end of next year. He has already delivered a test model, a fully electric 2008 Ford Ranger, to Metro Ford and plans to have three more test models done by the end of 2008."Our opportunity really lies in converting all the old cars out there. It's a far larger market than the new auto market," Giraud says.
He adds that building a new electric or hybrid car produces a significant amount of carbon emissions, but converting an old one will not use as many resources. "This really is the highest level of reusing."
A conversion is still too expensive for the average consumer at $25,000 or more, but that expense can pay off for commercial or municipal fleets. Over time the costs will come down as battery technologies mature. Envia is in talks to expand into Ontario, California, and Oregon, and hopes to start offering conversions for consumers in late 2009. When the Olympics come to Vancouver in 2010, the major auto manufacturers might have electric cars on the market, but Envia will already be there, three blocks east of the Athlete's Village.
When Calgary Technologies Inc. (CTI) launched the TechRev program last year the goal was to elevate the profile of Calgary’s Technology Sector by celebrating local successes. It can be hard for our Tech Companies to get the recognition they deserve, and all too often great success stories are obscured in the shadow of Alberta’s huge Oil & Gas Sector. While TechRev isn’t going to change the world, it is a great podium from which we spread the Tech Gospel. (amen brother)
The next TechRev event coming up on November 18th, 2009 will be spotlighting three Calgary companies and their experiences in CleanTech innovation. New Energy Corporation and Sustainable Energy Technologies are leading edge CleanTech solution developers while ENMAX is recognized as a pioneer in CleanTech development and deployment (check out each Company’s profile below).
This event is SOLD OUT but if you are a CleanTech Entrepreneur or an Investor who’s interested in CleanTech plays, you can call Pam Boytinck and get your name on the waiting list. Pam can be reached at 403- 284- 6417.
For more information and to sign up for the TechRev newsletter visit www.techrev.ca.
Presenting Company Bio’s:
Michael Carten, Founder and CEO,
Sustainable Energy Technologies
Sustainable Energy Technologies designs, manufactures and distributes advanced power inverters for grid connected solar power systems. The unique system design can be installed anywhere by anyone, increasing the energy yield from solar power systems while reducing the installed cost.
Clayton Bear, Founder, President and CEO,
New Energy Corporation Inc.
New Energy is a manufacturer of in-stream hydrokinetic power generation systems. The company's proprietary EnCurrent Turbine is an economical hydroelectric generating product that has an extremely small environmental footprint and can be used in a large variety of settings where traditional hydro plants are not practical.
Doug Sullivan, VP Distribution Services,
ENMAX Energy Corporation
As an industry leader with a history of deploying CleanTech solutions, ENMAX is committed to evaluating alternative energy technologies that have the potential to fundamentally change the way people consume energy. They are committed to providing environmentally responsible energy solutions to the communities they service and to improving their environmental performance as well.
Calgary Technologies Inc. (CTI) works with entrepreneurs to help them accelerate the success of their technology company, and looks for... [more]
North Vancouver's Evolve is the first Canadian distributor of a line of solar-powered handbags by Noon Solar. While the steep price-tag will 
naturally be a turn-off to many (bags start at $362), these solar-powered totes actually match style with substance (something most designers certainly don't take into account).
The bags boast a battery pack capable of charging cell phones, Blackberries, PDAs, iPhones, Palms and iPods. It takes about six hours on a sunny day to fully charge the battery, and then you can charge your electronics off of that. You can't yet charge a laptop from a Noon Solar bag, but it is a good start. The bags are primarily made of leather and/or hemp, and the materials are all either biodegradable or easily reclaimed/re-used.
Calgary Technologies 9th Annual Tech Showcase packed the house last night at the Alastair Ross Technology Centre (ARTC). This year’s event highlighted over 40 local Technology Companies, and proves that even during turbulent global economic times, Calgary’s technology sector is diverse, growing, and always up for a party!
This year’s Tech Showcase had a new attraction – Pitch Corner. Six exciting companies took centre stage to show off who they are, what they do, and why it’s cool. Each company had 7 minutes to deliver their presentations, which included demos, graphics, prototypes, bells, whistles, and even some PowerPoint. Democamp Calgary’s fabulous Sarah Blue MC’d the Pitch Corner, and helped presenters keep their cool amid some interesting technical challenges.
Presenters included:
Also new this year, the soothing sounds of Jazz! As you sipped a glass of chewy Shiraz, or in my case a cold Traditional Ale, the Rick Climans Jazz Trio could be heard above the noise of the 400+ attendees. There were some great networking opportunities (Calgary’s Mayor, Dave Bronconnier, even made an appearance!) and I’m sure there are many people scrambling this morning to follow up on the contacts made last night!
Calgary Technologies Inc. (CTI) works with entrepreneurs to help them accelerate the success of their technology company, and looks for... [more]
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We are living in a virtual world. Able to connect with more information and more people on a daily basis than ever before. I can sit in my home office in the early morning, Skype with someone in New Zealand, scan ten twitters, check out my friends' Facebook status, write a blog post, load up my customized iGoogle page with RSS feeds ... all before I've put my shirt on and had my second cup of coffee.
But something is missing in that existence. The physical presence of other humans. As we walk through our increasingly digital days, it's so important to make time for ol' fashioned analog relationships. That's why grassroots events like the Banff Venture Forum are so important.
To be clear, I didn't attend the whole event last week (October 2 and 3) at the Fairmont Banff Springs. We (the guys at CurveDental.com, where I'm CMO) booked a table to hear Terry Matthews, founder of Mitel, Newbridge Networks, and a boatload of other companies, pontificate about being a billionaire on Friday night. Luckily, that's not what he did ... Terry had some great pragmatic advice for being successful (in both his speech and the 15 minutes I spent with him afterwards):
Anyway, the stories of the companies hooking up with the VC's lining up to invest are important, but more fascinating are the people behind them. It was great to see the winners of the Banff Venture Forum awards get so excited as they went up to the stage ... you could tell they were proud of the hard work that brought them there. For the record, here's the companies who won the "Best in Track" awards:
After the main event, I attended the "unwind" after party put on by CTI (Calgary Technologies Inc.) in another room of the Banff Springs. This was a collection of "who's who" and "who's new" of the local entrepreneur community, and it was a great time. This is an important role that CTI plays ... being a community hub ... and everyone appreciated it. Kudos to CTI for "getting it."
I finally met Rob Lewis, editor of Techvibes. Talk about your virtual relationship (and the importance of these grassroots events) ... I've been blogging for Techvibes for almost a year, and we've never seem able to cross paths. Speaking of media types, I also met David Cree of the newly launched Propel Magazine that's a print version (with web accompaniment) of the Alberta scene. That's the three of us standing in the picture at the CTI afterparty (David, me, Rob).
Finally, before the night moved on to the Rose and Crown in Banff (of which there are many stories to tell, but none that will be told), we had a discussion about the nice autumn gourds placed around the room (a nice touch, I might add). Since CTI is a publicly funded organization, I assumed Premier Ed Stelmach payed $3.98 for the 7 gourds. Then, I got a little lesson in how CTI works. I was surprised to learn that ~65% of CTI's funding comes from industry ... for example, the revenue they make from leasing their building. 20% comes from federal funding. Only 15% comes from the Alberta government. Which essentially means that a single gourd cost Premier Stelmach 8.5 cents. Even the smallest conversations can have insightful moments!
Based on the people attending, I know that there were lots of conversations and insightful moments. I'd love if anybody that attended the forum would add some additional comments below.
In just a decade the Internet’s advances have made the world a better place. At Akoha, we want to take that a step further. With six billion... [more]
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Whereas some music industry associations fear digital distribution as a kind of boogieman that will steal their profits, the Canadian Academy of Recording Arts and Sciences is embracing it. CARAS, the organization responsible for the Juno Awards, will be using Yangaroo's Digital Media Distribution System to deliver media to judges and CARAS members for Juno Award consideration. Traditionally, this would constitute a package of multiple CDs and a wad of biographical and promotional material, distributed to over 2000 recipients. Digital distribution saves money and eliminates wasteful packaging. A smart choice, given that most judges would be listening on their computer or iPod anyhow.
"Integrating DMDS into our evaluation process was an easy decision," said Melanie Berry, President of CARAS. "The technology is not only more efficient and less expensive, but it also poses clear environmental benefits. The Canadian Music Industry was the first in the world to embrace digital delivery for their promotional releases to radio and other destinations, and it just follows that the JUNO Awards should be the first major televised awards show to adopt this same technology."
Yangaroo, formerly Musicrypt, is based out of Richmond Hill, ON, and their DMDS system has made over 5 million deliveries of over 11,000 songs from more than 600 record labels to radio stations and other broadcasters. Theirs is the only system that can digitally delivery to the US, Canada, and the UK. This is the first instance of an award show using their system.
Next year's Juno Awards take place in Vancouver, March 29, 2009.
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising... [more]
Via Techcrunch and Ars Technica, Toronto startup PickupPal is finding itself accused of violating Ontario carpooling laws. The complainant is bus company Trentway Wagar, and the argument is that PickupPal, a website to connect people looking for ride-sharing arrangements, constitutes an unlicensed, uninsured transport service that unfairly competes with their bus line. Under the Ontario Public Vehicles Act's very strict definition of what a carpool is, they are correct: a carpool can only travel between home and work, operate every weekday with the same driver, and can only pay weekly.
Obviously though, these laws were written before social networks and peak oil; is PickupPal really going against the spirit of this law? They now have "Save PickupPal in Ontario!" emblazoned on their front page, with a link to a petition. Alongside the petition is a letter from PickupPal user and former Liberal MP Christine Stewart...
Ridesharing curbs green-house-gas emissions and cuts down on traffic congestion and airborne pollution. Over 70% of the daily carbon footprint emitted by individuals comes from vehicle transportation. The Government of Ontario recognizes the importance of this by spending billions of our tax dollars on municipal and provincial public transit systems and by building hundreds of kilometers of ‘High Occupancy Vehicle’ (HOV) lanes on our highways. In the Ontario Government’s own literature, they state: “Giving people better alternatives to driving alone is one of the most effective ways to tackle congestion now and to provide a transportation system that is more sustainable in the future.” Further, in a statement supporting the building of the HOV lanes and their use, the Ontario Government states: “Sharing a ride – as a driver or a passenger – may be easier than you think!” The Ontario Government seems to be oblivious to its Public Vehicles Act, as administered by the Government's own OHTB, which could significantly undermine the viability of ridesharing in Ontario.
On May 20th 2008, bus company Trentway-Wagar, a subsidiary of an international corporation, challenged the legitimacy of PickupPal under the Public Vehicles Act as administered by the OHTB and delivered notice to appear before the Board for a hearing on this matter on October 15th, 2008. Similar ridesharing organizations operating in Ontario who have appeared before the OHTB have been shut down. Bus companies enjoy a variety of subsidies in Ontario, including unencumbered access to HOV lanes: “All buses will be permitted to use the HOV lanes at all times regardless of the number of occupants to ensure reliable and on-time bus service and to allow them to return to the beginning of their routes more quickly and consistently.”
Techcrunch's Mike Arrington, master of the linkbait headline, ran a post titled "More Proof That Canada Hates the Environment". Jeez Mike, whatcha takin aboot, eh? Yes, our government bureaucracy is a double double pain, but most Canadians can't help but revere our country's natural beauty. Just pay no attention to those big projects out west. Now, if you'll excuse me, after biking to work today, I could go for some organic, shade-grown coffee in a reusable mug that I got at Mountain Equipment Co-op.
PickupPal has a hearing before the Ontario Highway Transportation Board scheduled for October 15.
Launched in January 2008, PickupPal allows a private vehicle engaged in a transportation event (a one-way trip from A to B) to be matched... [more]
