JS Cournoyer, a Montréal entrepreneur, venture capitalist, and angel investor, recently broke the news on is personal blog that Real Ventures is raring to turbocharge the startup community in his city. In it, he noted the dramatic landscape shift that Canada's startup realm has witnessed over the past decade. Among his points:
The cost of getting a company from idea to the validation of the business model is now 10 times less than what it was 5 to 10 years ago.
JS and his Real Ventures team believe that cloud computing substantially slashes monthly operation costs, that massively popular software and web services like Facebook, iPhones, and Android, plus Amazon, Salesforce, etc., combine to further cut costs in product distribution and access customers. Plus, evolving open source platforms and development frameworks allow two people in less than three months to accomplish what it once took six people to accomplish in a year.
M&A is the new R&D.
To maintain historical growth rates, Real Ventures believes, midsize and large companies have to diversify their service offering. JS suggests in his blog post that "these companies have all been built under a different development and innovation model, and cannot innovate at the speed that is required today." Additionally, mobile and web facets are now crucial elements. It all leads to megers and acquisitions creating new product lines and talent as opposed to performing research and development in-house.
The access [or] proximity to capital is not a competitive advantage anymore.
Now that startup costs are nearing zero, Silicon Valley and access to capital is no longer a condition to success Real Ventures argues. What companies need is "enough capital to get to market validation from people who can help connect them to funding, business development and corporate networks." (And this is what Real Ventures does.)
Read the full blog post here.