The Financial Post reported yesterday that Toronto's MaRS project has been put on hold. The $300-million Medical and Related Sciences complex in Toronto's hospital district had been billed as an innovation centre for early-stage companies in the science and technology sector. MaRS developed Phase I of the project on its own however for the second phase it leased the land to a development company that is responsible for building and renting the space.
Hence the problem - many of the potential tenants for the building are dependent on venture capital funding, a market that has all but dried up as wealthy investors refuse to part with cash on risky investments.
MaRS received $70-million in funding from the Ontario government and another $20-million from the federal government but it has been largely funded by the private sector. The company's board of directors reads like a who's who of Toronto's elite, including Royal Bank chief executive Gord Nixon, First Marathon Inc. founder Lawrence Bloomberg and Roy-L Capital chief executive Joseph Rotman.
MaRS connects the communities of science, business and capital and fosters collaboration among them. This happens physically through location of... [more]
Just a quick post to wrap up the loose ends from Monday's 24th Angel Forum in Vancouver. Overall, the day was a huge success and the Angels singled out the following companies in the Investor Choice Awards (award sponsors included):
Congratulations to all the winners! And for those of you who are looking for money for your own venture, the next Angel Forum will be in early 2009. Start polishing those pitches!
Our goal is to inspire the world to learn. But that inspiration must start with you. Be inspired. And let that inspiration flow through everything... [more]
General Bio Energy Inc. has solidified their position as an industry leader in the emerging renewable fuel and energy business in North America... [more]
In the fall of 2001, after spending nearly 10 years designing and providing custom storage solutions for major industry, Kurt Geffe was ready for a... [more]
Next year's Canadian Financing Forum takes place on January 29, 2009 at the Hyatt Hotel in Vancouver and with the first Selection Committee meeting scheduled for December 2nd, now is the time to apply. Presenting companies are split into two streams - Cleantech & Advanced Technology and Information Technology - and will have an opportunity to get to know the Venture Capital Community and promote their company at this premiere event.
The Canadian Financing Forum is one of the most respected resources for North American investors who seek to recognize, gain exposure to, and facilitate partnerships with the best and most promising Technology entrepreneurs and companies that are based in Canada.
Past presenters have raised over $1,080 Million and 47% of the presenting companies attending the Canadian Financing Forum have successfully raised funds over the last 7 years (2001-2008).
Visit the Canadian Financing Forum website for more information.
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]
Bits Republic presented its case for data mobilization at the 24th Angel Forum held at SFU Harbour Centre on Monday. Their mission is to make one's information accessible anywhere in the world, as well as acessible online and off. As such, they introduced the My Own Bits (MOB) platform, which not only hosts documents but also alerts clents to changes in those documents, and also have access to their documents even when they aren't on the Internet. Bits Republic also stressed the end-to-end nature of their security solution, with documents encrypted before thye leave the computer or origin. The document is also hosted by Bits Republic, but they can't sThe MOBS platform has been established and is (according to Bits Republic) ready for implementation, and the company is now ready to begin tackling different markets with targeted products.
MOB-PS is targeted at professional firms such as lawyers, and would cost $1,000 a year. MOB-BR is aimed at creating data rooms for virtual Mergers and Acquisitions. Finally, Bits Republic has created MOB-EMR, which targets the medical market and would cost $1,200 a year.
Bookingcalendar.com, an online scheduling app, entreatied attendees at the 24th Angel Forum held at the SFU Harbour Centre in Vancouver, to stop playing telephone tag and instead use their app to open up their appointment books BookingCalendar unlike other scheduling as, has its own API, and offers integration with Google Calendar, Quickbooks and other scheduling software. BookingCalendar also allows customers to make appointments, increasing efficiency while making the booking experience easier for both customers and businesses. And unlike an online calendar like Google Calendar, where a client can see all of your appointments, with Booking Calendar only relevant data to the client and business is displayed. Booking Calendar is currently earning revenue on a subscription model
We are a Canadian based company and work with companies from all over the world. BookingCalendar.com started the concept of online appointment and... [more]
Ecobuddies is a Massive Multiplayer Onlne Game based on an ecological theme that hopes to reach a goal of a $500 million valuation (based on the companies already on the market, like Club Penguin and NeoPets).
Ecobuddies aims to fill a niche in the MMOG space, since there are very few games aimed at young children. The site will be "safe, secure and sanitized," so that parents can introduce the site to their children with no worry of inappropriate content (the intended demographic is 5 to 12 year olds). The site will also be ad-free, instead using micro-payments to generate revenue.
Ecobuddies is also the only MMOG to combine green themes and eco systems within a virtual world, such as characters driving in electric cars and using windmills in their virtual houses.
The website is currently in the testing phase, with the revenue stage about to begin.
EcoBuddies Interactive Ltd. is a Vancouver-based company that recently launched its same-named website at www.ecobuddies.com. Ecobuddies’ goal is... [more]
Letsgofordinner.com, which presented at the 24th Angel Forum at the SFU Harbour Centre, aims to be the "Entertainment Book for the internet." The site is a mobile push application, which works by letting restaurants release coupons based on how busy or empty they are at a given moment. Members of letsgofordinner.com buy a membership card for $25 (half of which goes to charity) and then are notified of specials at restaurants that are part of the service. The advantage for restaurants is that they can fill seats (generally the biggest source of revenue loss in the business) while customers are able to save money on a meal without having to bring an unweidly coupon book.
Currently the site is set up to serve both Calgary and Vancouver. Letsgofordinner.com is asscoaited with local start-up incubator Bootup Labs.
Every day ... restaurants are offering 50% off their loyalty certificates exclusively to LetsGoForDinner.com and its members! How can we possibly... [more]
Calgary-based Ph03nix New Media, who created the runaway hit Curse of the Pharoah (released through Big Fish Games) was pitching TRZZonline.com, a "hip hop multiplayer online universe" at the 24th Angel Forum at SFU Harbour Centre in Vancouver. Jon Lam of Pho3nix termed hip-hop as the biggest cultural revolution in the last 20 years in terms of music, culture and entertainment, but as of yet there hasn't been a hip-hop based MMO, even though the MMO space is the fastest growing segment of the games market. The site will be aimed at a 13 to 18 year old demographic, and will include an education component through mini-games. The site will be browser-based and run in Flash, requiring no additioanl software installation. Lam referred to the site as a "chocolate vitamin," in that even in tough economic times, people still want to buy chocolate and the vitamin component comes through in the educational component.
Cambrian House's MJ Sikorsky was in attendance and led the investor-only disussion after Lam's presentation. Sikorsky invested $100K in Ph03nix New Media last week.
Our goal is to inspire the world to learn. But that inspiration must start with you. Be inspired. And let that inspiration flow through everything... [more]
The Securities and Exchange Commission laid a charge of insider trading against billionaire entrepreneur Mark Cuban on November 17. Cuban is accused of selling 600,000 shares in Mamma.com in June 2004 after getting confidential news of an impending public offering. Mamma.com is a Montreal-based internet search engine since renamed Copernic Inc. By selling off his shares, totalling 6.3% of Mamma.com, he safeguarded himself from personal losses of more than $750,000. The SEC Summary of Allegations claims that "Unless enjoined, Cuban is likely to commit such violations again in the future." 
Cuban posted a terse statement from his lawyer on his normally vociferous blog, prefaced only by a brief sentence: "I wish I could say more, but I will have to leave it to this, and let the judicial process do its job." Cuban's lawyer Ralph C. Ferrera calls the charge "a product of gross abuse of prosecutorial discretion," and claims that Cuban intends to "demonstrate that the Commission’s claims are infected by the misconduct of the staff of its Enforcement Division."
“I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so” says Cuban.
Cuban is the owner of the Dallas Mavericks, and has recently been trying to buy the Chicago Cubs as well. The founder of Broadcast.com, HDNet, and several other companies, Cuban has also been an angel investor for several startups, including SlideShare, Goowy, RedSwoosh, Box.net, Weblogs, Inc. and Mahalo. At September's TechCrunch50, Cuban announced that startups could feel free to "Send me an email and in three paragraphs or less, tell me about your business. Dont say you need an NDA or want a call. Just tell me how youre going to make money and how I’m going to add value. Give me a URL if you have a website, I’ll figure it out. 5% of the people will hear back from me." It is impossible to know what deals Cuban has in the pipelines, or how they will be affected by today's announcement.
Though these accusations date back to 2004 and regardless of whether or not they are true, it will be interesting to see how many insider trading charges may be levied because of mass pre-meditated sell-offs in the current troubling economic situation.
