Archive for the ‘Technology’ Category

Early-Stage Startups Need More than Tech to Impress Investors

Tuesday, May 31st, 2016

TechPORTFOLIO interviewed investors, financiers, and academics and asked them what they look for in early stage startups – and how they define success. Here are their answers.

It’s sales and growth. But also the product

Chris Arsenault, managing partner at iNovia Capital, says that the most successful companies he has backed early-on have made sales and growth a priority: “It’s often easier for a startup to be 100% focused on the product, while sales take a back seat.” One of the biggest barriers facing startups is lack of sales-focused management teams, he says.

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However, he stresses, the product roadmap needs to incorporate upgrades and new features according to customer needs. The best practice is to find your customers and then develop your product in the early stages with their feedback.

“You can fill faster and iterate better by leveraging customers early in the startup process,” says Dr. Sean Wise, Associate Professor, Entrepreneurship, Ted Rogers School of Management at Ryerson University.

It’s the journey. But also the destination

“Success for me is not necessarily the same as what an entrepreneur defines as success,” says Matt Roberts, associate director at the IT Venture Fund at Business Development Bank of Canada. His aim is to build all the internal processes to allow the company to grow up and then get it set up to access series A funding.

“I want my companies to have the wherewithal to attract other outside capital, to continue to grow, and execute on the business,” he says.

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Michelle McBane, investment director at MaRS Investment Accelerator Fund, agrees. When the companies leave the stage of working on their key product and customers “then our companies are graduated, so that means they’ve passed the baton to the series A/B investors. That’s success for us.”

Your team, and the people around your team

“Diversity helps ensure there are different perspectives around the table, driving better decision making that will ultimately lead to better long term performance,” says Will Hutchins, Managing Director of Espresso Capital. “I believe this is true at all stages of a company’s growth–from startups to mature companies.”

“Startups have more needs than they have resources. Leveraging your community allows you to leverage what little resources you have,” says Dr. Sean Wise. A dense community offers cheaper and easier talent acquisition and, of course, more investors.

VIDEO: IBM’s Watson Offers Cognitive Technology Out of the Box

Saturday, May 28th, 2016

Not all startups can afford artificial intelligence and the associated infrastructure, but thanks to IBM’s Bluemix platform, the cognitive capabilities of IBM Watson can be a ‘call’ away. Apps developed on the platform will be able to make requests from Watson.

This will give startups access to functions that analyze data streams or translate text into language that either a machine or another person can understand.

For more on this, here’s part of our recent interview with IBM’s Nevil Knupp, Vice President of Cloud, IBM Canada.

https://www.youtube.com/watch?v=HmqmBcJM0AE

How QoC Health Simplifies Patient Empowerment

Thursday, May 26th, 2016

Patient empowerment has become central to health innovation initiatives. As Fitbits, Apple Watches, tablets and smartphones become commonplace, many stakeholders ­– including policymakers, administrators, and entrepreneurs – agree that technology is the key to patient power.

Dr. John Semple, the surgeon-in-chief of Toronto’s Women’s College Hospital, can attest that giving power to patients will also give more power to doctors. A few years ago, Semple was entrusted with turning Women’s College Hospital into an ambulatory hospital with day surgery procedures only. He realized that post-op patient monitoring, particularly after discharge, was practically non-existent.

Just before smartphones became ubiquitous, Semple and entrepreneur Chancellor Crawford had the low-tech idea of using text messages to improve post-surgical recovery communication. It may seem obvious, but try sending your doctor a text message about your most recent checkup.

Semple and Crawford’s idea eventually turned into a startup, QoC Health. Working as a business-to-business service provider, the company has built a powerful application programming interface (API) platform that can scale digital health ideas, including patient monitoring, analytics, educational materials, secure communications, decision aids, planning tools, and turnkey integration with existing medical records.

Handling the Technology

Counting many of Ontario’s top hospitals among its clients—as well as clients in the United States, the United Kingdom and across Canada—QoC’s own history is a tale of digital health ideation, development, deployment and scaling.

“The people inside health care—the clinicians, the academics, private healthcare givers—they are the ones who come up with the best ideas because they are the ones dealing with the problems all of the time,” says Raymond Shih, the co-founder and president of QoC. “But from a technology perspective, they are not equipped to execute them.”

Most doctors and nurses are not experts in navigating the intricacies of multi-jurisdiction privacy rules. By simply “handling the technology,” as Shih puts it, QoC is helping healthcare providers and patients to communicate, solving part of a structural digital glut. In terms of revenue, QoC will jump to almost $1 million by the end of the year, up from $600,000 in 2015.

“What QoC does is provide the technology partnership to build and scale these types of digital health applications. It’s really what we do,” says Shih.

The company’s library of tools includes patient alerts, profile setup, data encryption, analytics, secure video conferencing and other common features, freeing up resources in the app development process on a per client basis.

Scaling Up

“If you’re building a hospital-grade application from scratch, it would cost $200,000 and would take 12 to 18 months to develop, assuming you know how to manage those developers,” says Shih. “We can turn that around in four to eight weeks at a fraction of that cost.”

On the other side of the equation is the scaling up problem. When testing a new therapy or device on 25 to 50 patients, a laptop and a spreadsheet are all that a clinician needs. However, when the therapy or device affects 10,000 to 20,000 patients, “you’re going to have to manage that product across iOS, Android and HTML5… You may have to roll it out to a Mandarin- or French-speaking population. The hospital may want to use it, but only if you can integrate it with their medical records management system or clinical lab system,” explains Shih.

Next up, Shih, Semple, Crawford and their team want to open up their toolbox in the form of a software kit for software developers to use QoC’s API to develop their own health apps.

For the time being, the company keeps collecting accolades, including winning the digital health stream of the 2015 MaRS HealthKick Innovation Challenge.

For startups trying to find funding in challenges like HealthKick or through conferences like RESI on MaRS, which is taking place in June, Shih shares the following advice: “People are going to remember you based on a sound bite or two. You want to make sure you control what that sound bite is. Stay focused. Don’t assume the audience knows everything about, say, software as a service, but don’t start shooting out 100 things they’re not going to remember.”

 

Toronto Diversity Strengthens the “Cockroach Nest”

Wednesday, May 25th, 2016

Toronto was recently named the most diverse city in the world, and this status might help to explain the success of companies like Wattpad and other startups that have helped form the city’s cockroach nest.

A study by the BBC says that while Dubai has 83% of its population hailing from abroad, Toronto has a far wider spread of nationalities – 230 in all – so wide that it took one artist a year to find and photograph one person from each of these countries.

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Why Diversity Matters, a report by management consulting firm McKinsey & Co. reveals a strong correlation between diversity and financial success: companies in the top quartile for racial and ethnic diversity are 35% more likely to have above average returns.

Chris Arsenault, managing partner at iNovia Capital, says that companies that prize diversity within their own culture make better hires and have more fully engaged employees.

“As a diverse workforce understands and relates to its customer base, it can also serve to drive innovation, being better equipped to design and develop products and services that meet the needs of a diverse market,” he adds.

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WattPad, a Toronto-based community publishing and e-book distribution platform, is following that exact strategy.

“The majority of Wattpad employees can speak a second or third language,” the company’s founder, Allen Lau, explains in a Globe and Mail editorial. “They are world travellers, having lived in 76 different cities around the world. Many are immigrants or first-generation Canadians. The perspective they bring is invaluable.”

WattPad’s initial growth in English only was slow, but when he started hiring country managers who could not only translate language but understand cultural norms, he was able to expand and adapt his product, tailoring it to content creators depending on nationality. This has resulted, for instance, in WattPad stories being adapted for Filipino media.

 

 

“I believe that Toronto’s diversity gives me an unfair advantage,” says Lau.

“Local startups are now global on day one,” adds Dr. Sean Wise, Associate Professor of Entrepreneurship at the Ted Rogers School of Management.  “Not only does diversity lead to innovation through an exchange of ideas, diversity can allow you to go global.”

For more on the opportunities and challenges facing Toronto as a tech startup ecosystem, read our in-depth analysis, Shopify Takes Vacant Blackberry Throne – And What’s Next for Ontario.

Tech Investors and Founders Identify Bankable Technologies

Tuesday, May 24th, 2016

“Whenever a market or a technology changes, thereʼs a huge opportunity for new businesses,” author and entrepreneur Seth Godin said in The Bootstrapper’s Bible.

Godin’s comment from more than a decade ago, which addresses what’s now generally referred to as “disruption,” resonates among entrepreneurs more than ever. To address this, we asked each of our launch week interviewees what technology is going to be the most bankable in the next few years? Here’s a selection of their answers.

Artificial Intelligence

“We’re at that tipping point,” says Sonia Strimban, Manager of Venture Operations at MarS Discovery District. Artificial intelligence is already ubiquitous and will grow. “That tech is coming exponentially. Deep learning is really accelerating the pace of applications, not just the core but the application layer of what AI can do.”

“There’s a lot of public misconceptions. There’s already so much AI that some people don’t realize,” she says. Films such as Spike Jonze’s Her, for example, might talk about AI, but don’t really represent its real-life use.

Michelle McBane, director of the Investment Accelerator Fund, which is based at MaRS, noted that some entrepreneurs are deliberately adding machine learning to their startups to get noticed.

Virtual Reality

Matt Roberts, associate director at the IT Venture Fund at BDC Capital, says VR is worth watching in the longer term. “Everybody’s gotten a bit of a hype cycle going for it. We’re really going to start seeing excitement around VR in the next 2 to 3 years.”

“It’ll be like the Wii was for a generation,” he added. “A complete change of how people interact with technology.”

Self-driving cars

Bill Jacobson, founder and CEO of Boston-area startup space Workbar, says self-driving cars and the effect they have on transportation will be profound. “I have kids and I feel like they’re likely not going to own a car,” he says.

The technology could be coming a lot more quickly than we think, Jacobson added. “From a safety standpoint we’re in this middle ground where we have a driver that is highly distracted behind the wheel… that’s likely more dangerous than handing over control to a computer.”

Amir Azhari, president of AOMS – a Waterloo, Ontario-based fiber optic solutions startup, also identified self-driving cars. Azhari said AI’s rapid development is linked to autonomous vehicles’ success and regulations will catch up, even though “there are now just regulations and government laws that limit accessibility.”

 

What IBM’s Watson Thinks of HBO’s Game of Thrones Characters

Friday, May 20th, 2016

When we found out we could access IBM’s Watson to analyze conversation tone, obviously our first idea was to apply it to HBO’s Game of Thrones.

So we coded a scraper and extracted the dialogue on Wikiquote of all the main characters. We then unleashed Watson’s Tone Analyzer — a tool for understanding the emotional impact of text — to assess five core emotions, as well as overall emotional stability, confidence, and agreeableness.

The Tone Analyzer is part of IBM’s Watson suite that includes several tools for textual analysis, such as concept search and linking, visual comprehension, and language translation. It’s accessible through an API on the IBM Bluemix cloud platform.

It’s no surprise no one in Westeros turned out to be especially emotionally stable (we’re looking at you Ramsay Bolton). In fact, the majority of characters we tested, from the Khaleesi herself to Jon Snow and even jolly old Tyrion Lannister, turned out to be mainly very angry and not at all joyful.

But the results we did find – some expected, some not – reveal a bit more about a few of the players.

Here’s our (spoiler free of season six, we promise) analysis.

CHARACTER: Joffrey Baratheon

RESULT: ANGER

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Rage is the overriding emotion for Joffrey the False. Interestingly, though, no one particular line in our textual analysis stands out as being obviously furious or malicious. This, of course, is worse because it just shows the continual burning rage inside the boy king.

CHARACTER: Sansa Stark

RESULT: Even ANGRIER than Joffrey

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Sansa’s incandescent fury is clear at several points – and the Tone Analyzer has picked up on this. Her reputation among fans as a passive flower is completely undeserved. There’s not a great deal going on with conscientiousness, which could suggest machinations to come.

Combine this with her sky-high confidence and it seems we have identified that Sansa is a rising power player in the battle for the Iron Throne.

CHARACTER: Arya Stark

RESULT: Low confidence

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A girl has no name…or confidence. Arya rates very low on the confidence scale for a Game of Thrones character. In fact, there are only four lines in her entire script that rate as confident. The rest don’t score anything at all. It looks like the first step of Faceless Man assassin training is breaking the spirit.

Still angrier than a burning nest of wasps, though. Just ask Meryn Trant.

CHARACTER: Varys, Master of Whispers

RESULT: Calm and in control

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Varys once said: “The storms come and go, the waves crash overhead, the big fish eat the little fish, and I keep on paddling.” With lines like this, we’re not shocked to see the tone analysis of his language shows he rarely raises his voice. He’s unique in Westeros in being able to regulate his emotions and keep his cards close to his chest. Clearly, he’s perfectly suited to his role as spymaster regardless of who he serves.

Is there a character you want to analyze? Try the Tone Analyzer now.

If you want to incorporate IBM’s Watson into your own application hosted in the cloud, click here.

Agriculture. Healthcare. Real Estate: Three IBM Bluemix Use Cases

Thursday, May 19th, 2016

We spoke to a sample of Canadian startup entrepreneurs using IBM Bluemix to support their apps, and found a key theme was the amount of time and resources saved by leveraging Bluemix technology.

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Agriculture

The PlantID3 mobile app is used by agricultural professionals to monitor crop health. The service is in beta testing with 2,000 trial users and a soft launch is planned later this year in Australia.

Dylan Lidster, founder and CEO of PlantID3, says in agricultural tech, startup organizations clear a path for the larger corporations because they can pivot quickly and spend less money getting to market.

“The aging demographic of agriculture is quickly rolling over as a new tech sophisticated producer enters the market, open to change and moving swiftly,” he says.

In the app a farmer might take a picture of an apple tree with a disease. The app then searches through the database for pattern recognition and tags. The image is tagged and stored, and then feeds into recommendations for remedial practice, such as pruning techniques, fertilization or spray application. The database of image storage and tagging and the recommendation tree run off IBM’s BlueMix infrastructure.

Lidster is making sure that the customer base is involved at the early stages of development of the PlantID3 app, to ensure product fit with the interface. Being cheap and quick to scale is key.

“[BlueMix] saves many hours of labour and provides us with advanced services such as use of Watson that we could not achieve without the support of IBM,” says Lidster.

Healthcare

Speed and scalability are also paramount when you’re building an app that transmits health data. With SwiftPad, when patients take a photo of their prescription and send it to their pharmacy of choice, they can get real-time feedback on when their medication is ready and can opt to have it delivered.

Saif Abid, CTO of SwiftPad, says: “Currently, we have around 12 services running on IBM’s Bluemix network. To put this in a financial perspective, we’re spending around 75% less than we would with other competitors.” Among the services used are CloudFoundry, push notifications, and Watson.

“With Bluemix, we’re able to focus on engineering the best solution possible for our users without having to compromise the quality of tools and services we use,” says SwiftPad CEO and co-founder Amir Motahari.

Real Estate

Gregory Melchior, CEO of real estate software startup 4D Virtual Space, is using social media marketing as a key part of his growth strategy. His organization aims to replace floor plans for real estate developers. Instead of constructing a sales centre, realtors would use the app to show customers through a space, allowing prospective buyers to walk through and even visualize how their own furniture might look.

Feedback from users is vital, and quickly accessed. “With IBM Watson we’re able to get, per month, 500,000 documents analysed in social media immediately,” says Melchior. “We hit the ground running.”

Click here for a free IBM Bluemix trial.

 

 

 

Funding & Talent Dominate Twitter Talk Around Techvibes

Wednesday, May 18th, 2016

To scale a tech startup, companies need to manage a complex set of variables: Finding product-market fit, getting funded, finding customers, hiring, being better than the competition, and a slew of little things in between that need to be managed to keep a company out of the deadpool.

To determine what’s currently on the minds of Canadian tech entrepreneurs, we looked at conversation and social media activity around one of the county’s most established tech publications, Techvibes.

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A close look at the social media data shows employment (“help” & “hiring”) and funding (“million”) conversations standing out prominently.

Jobs/Talent

Techvibes hosts a semi-annual event called Techfest, which underscores the importance of hiring. The networking event attracts more than 1,000 attendees and culminates in a series of 2-minute pitches by CEOs, founders and tech executives meant to attract the best employees.

The next event takes place May 25 in Vancouver and some of the companies pitching for talent include Clio, BroadbandTV, and Unbounce.

The hiring and jobs discussion around Techvibes is also being fuelled by this article by Kerri-Lynn McAllister:

McAllister’s top 5 tips for hiring:

  1. Don’t neglect the job description
  2. Tailor recruiting to the role
  3. Institute task-based testing
  4. Add purpose to the personality interview
  5. Hire slowly, fire quickly

For more about the importance of skill sets among startup teams, read our report on the “leadership gap.”

Funding

Startups follow the money. They also tweet about it. Among the most retweeted articles from Techvibes in the last 90 days:

Venture capital gets more Twitter love, as data shows VC is at its highest level in more than a decade:

The top 5 hashtags most often used alongside Techvibes’ articles:

  • #fintech
  • #startups
  • #tech
  • #IoT
  • #Toronto

 

Demand for Fintech Innovation Creates Cooperation Ecosystems

Tuesday, May 17th, 2016

Pushed by surging demand for tap-and-go everything, banks are embracing fintech startups as channels to innovation instead of engaging in an all-out war to shut them down. This race for fintech solutions doesn’t stop at specific partnerships; it’s leading to fintech ecosystems.

Bill Jacobson, CEO and Founder of Workbar, a coworking network across the Greater Boston area, has created a relationship with Digital Credit Union, one of the largest credit unions in the US. They have a space that hosts fintech companies for six months.

The arrangement is a quid pro quo.

“The [startups] get to work with DCU and see real problems. It’s a great way for them to develop beta customers, accelerate the effort to work on real issues. It gives them space and access to the Digital Credit Union management team as well,” Jacobson says. Meanwhile, Digital Credit Union is “doing this to get closer to startups and new ideas..”

Google, Apple, Amazon Service

According to PwC’s March 2016 report, Blurred lines: How FinTech is shaping financial services, consumers expect the same service and innovation from banks as they do Google, Apple, and Amazon.

The fintech division of Toronto’s MaRS Discovery District – a startup incubator – is another example of the cooperation growing between banks and startups.

“There’s not necessarily a threat, or friend-or-foe sort of mentality” among banks sponsoring programs at MaRS, says Adam Nanjee, head of MaRS’s fintech division.  “They want to work with the startups.”

Financial institutions are wrestling with the competitive implications of fintech. The PwC report says 20% of their business is at risk by 2020, so many are already partnering with more nimble, innovative startups. Funding of fintech startups last year reached $12.2 billion.

Gregory Melchior, a startup co-founder who previously worked at Bank of Montreal and Merrill Lynch, says: “If you’re standalone you’re not going to survive. You need to have a white-labeled solution and work with the banks.”

For more on the fintech threat facing financial institution, read Startups Eat Into the $4.7 Trillion Financial Services Industry.

/newsrooms Launches TechPORTFOLIO to Cover Economic Value of Startup Ecosystems

Monday, May 16th, 2016

Startups have ended the industrial era and have become the net job creators in many major markets across the globe.

To follow this disruptive change, /newsrooms has launched TechPORTFOLIO, a social media-driven destination that covers the economic value and financial benefit of startup ecosystems as they emerge locally, nationally and internationally.

TechPORTFOLIO will explore the most important transformations impacting technology, business and economic growth,” says Robert Delaney, VP Managing Editor, TechPORTFOLIO. “We’re researching and writing about many layers of the ecosystems. TechPORTFOLIO will compare and contrast geographies, approaches, companies, and investment trends in order to understand and evaluate how startup ecosystems are changing.”

TechPORTFOLIO combines journalistic coverage and data analysis to profile startups, entrepreneurs, investors, academia and governments shaping startup ecosystems.

TechPORTFOLIO will use IBM Cloud and cognitive technologies, including data and machine learning, as part of its journalistic approach to deliver insights relevant to the companies, startups and governments involved in the global startup ecosystem.

“IBM Cloud is the leading platform for data-driven cloud and analytics that enables organizations to meet market demands and open doors to more responsive and innovative ways of doing business,”says Nevil Knupp, VP of Cloud, IBM Canada. “By providing the best cloud and cognitive technologies, we are helping TechPORTFOLIO connect to the developer and startup audience and transform the way news is delivered.”

“The Canadian startup space is thriving and supporting a culture of innovation with organizations, like TechPORTFOLIO, allows IBM to contribute to a thriving tech environment that can strengthen Canada’s position as an ideal place to research and develop new technologies,” says Lila Adamec, Program Director, Developer Ecosystem & Startups, IBM Canada.

TechPORTFOLIO will be a new kind of publication that incorporates data, social media and technology into its operating model and ongoing publishing,” says Leigh Doyle, Managing Editor, TechPORTFOLIO. “Editorial instinct and subject matter expertise will take us a long way in our analysis and storytelling around tech and startup ecosystems. When we combine those with our data and social media expertise, we’re able to go deep into subjects in ways that were not possible before. That’s exciting.”

About TechPORTFOLIO:

TechPORTFOLIO covers the economic value and financial benefit of startup ecosystems as they emerge locally, nationally, and internationally. TechPORTFOLIO combines journalistic coverage, data analysis, and profiles startups, entrepreneurs, investors, academia and governments shaping startup ecosystems. The site is available at http://techportfolio.net/

TechPORTFOLIO is owned and published by /newsrooms, a network dedicated to providing continuous content marketing and social media coverage for brands. Our managing editors, writers, correspondents, creative producers and analysts draw from the insights and experience of the world’s best newsrooms to deliver content and coverage across a wide range of industry categories.