Author Archive for Francis Moran

Three interesting developments in modern journalism

By Francis Moran

Newspaper industry  300x225 Three interesting developments in modern journalismA few years back, my pal Ian Graham acquainted me with his “law of three.” If any subject or person or issue crosses Graham’s attention three times in relatively short order, he believes he ought to pay attention to it. It’s an intriguing notion that I have found plays out in my own life more often than I might expect. Graham’s law intersected last night with my colleague Leo Valiquette’s piece earlier this week about “the mocking white glare of an empty page.” Having begged off posting yesterday to finish a client project and faced with having to produce a post for today, I was struck by an article I read about Canadian movie house Alliance Films seeking to charge Canadian journalists as much as €2,500 for interviews with bold-name stars such as Brad Pitt at this year’s Cannes Film Festival. It was the third article I read this week about interesting and controversial developments in modern journalism and, not wishing to be mocked either by my empty screen or by my hardacre blog editor, the idea for this post was clumsily conceived.

The first of the three issues to catch my eye was a brief paragraph in a story on Monday by the Globe and Mail’s superb public health reporter André Picard. If I was pitching a public health story in Canada, Picard would be at the top of my list; he is a knowledgeable and thoughtful reporter who provides well-considered analysis of the complex issues facing public health and healthcare in general in Canada today. My high opinion of Picard is not an isolated one; he has been repeatedly recognised for his work and it is clear that most other practitioners of the media relations craft single him out when they have a story to pitch to his beat.

The result is that he is regularly given access to reports and other material in advance of their official publication or release date. It’s a practice known as an embargo; PR people negotiate a contract, usually no more rigorous than a verbal or emailed agreement, whereby they give a reporter advance access to a story and the reporter agrees not to publish or broadcast anything until a certain day and time. (In our PR practice, we regularly employ embargoes, and have written about the advantages and disadvantages of embargoes.) On Monday, though, in a story about a new national strategy on mental health, Picard wrote, “The Globe and Mail obtained a copy of the strategy, entitled ‘Changing Direction, Changing Lives,’ under embargo but is publishing before the Tuesday release date because of leaks to other media outlets.”

It’s unusual for reporters to reference such arrangements in their stories, so I took notice. When I decided last night to include this episode in this post, I emailed Picard asking him a few questions about the specific circumstances of this embargo and what led him to break it, and I invited him to share with me his views about the ethics and practicality of embargoes. As of the time this post went up, I hadn’t heard back from him. If I do — and I hope I will because I’d like to hear from a reporter whose professionalism is unquestioned — I will update this post.

Embargoes have been around almost forever, and are likely not going anywhere soon. Reporters and PR people can debate the ethics and merits of them, but I continue to see them as useful tools, albeit tools that can be misused at times. However, there is always the hazard, both to the organisation pitching the news and to journalists who comply with an embargo, that a less scrupulous outlet will not respect agreements into which it freely entered.

The second and third issues are more central to the challenging economic model that is the news business today. Both cropped up yesterday and, again, both were reported in the Globe and, either directly or indirectly, involved the Globe. (Guess what major Canadian media outlet is my go-to source!) Mid-yesterday afternoon, the paper announced it would start charging for access to its online content, a practice known as erecting a paywall behind which its previously free content would now shelter. Other papers have experimented with paywalls, only to dismantle them after a period; others still, including some of the best-known media outlets on the planet such as the New York Times, have persisted, with the Times reporting it expects to earn $85-million this year through online subscriptions. It’s not-insignificant incremental revenue any newspaper surely could use.

In defending his paper’s move to put up a paywall, Globe publisher Phillip Crawley said it was in response to an unpredictable advertising market that has seen both print and digital sales drop this spring, according to the Globe’s own story on the subject. (The story also reported that the Globe would be asking its staff to volunteer to take unpaid vacations this summer in a futher effort to balance the books.)

Within three hours of the story going live on the paper’s website, some 500 comments had already been posted. I scrolled through dozens of screens of comments without finding a single one that wasn’t critical of the move.

I’m not sure I agree with all those critics.

Producing excellent journalism costs a great deal of money and the Globe and Mail is a lonely bastion of excellence that has bucked the near-industry-wide trend towards reducing staff, buying cheap wire and filler copy, and otherwise joining the race to the bottom. Like the Times and a few other exceptional titles such as Britain’s Guardian, the Globe has continued to invest heavily in high-quality content. In the Globe’s case, it has also preserved its many bureaus in Canada and around the world, producing original and expert reporting that is unmatched anywhere in Canada and only rarely matched anywhere on the planet. That excellence has been rewarded by generally rising subscription levels although, as yesterday’s twin economies suggest, that increased readership apparently has not levered higher levels of spending by advertisers.

Newspapers are stuck between a print rock and an online hard place. Revenues from the former are eroding swiftly; the latter has not yet delivered a replacement business model. Paywalls and other experiments will, I expect, become more common.

The sketchy economics of journalism and its often-unsavoury relationship with those from whom it gets its news is at the heart of the third and last issue, which I referenced at the top of this post. I don’t suppose I should be shocked but I still am at the proposition that a major film house would seek to charge journalists for interviews with stars at a film festival. On the other hand, such interviews rarely rise above the puerile and mundane, and so I suppose it’s difficult to classify their outcome as news. It falls more clearly in the entertainment category, and who can blame studios for wanting to charge media outlets that make money off their interactions with the studios’ talent. Then again, as already made painfully clear by the paywall issue, there ain’t much golden fleece left to be sheared from this media sheep.

The doubtful economics aside, I was struck by the irony, as was the Globe reporter who wrote the story about Alliance’s sliding-scale menu of charges for access to its stars, that perhaps the biggest victims of chequebook journalism are the very stars who are now being pimped out by their studios. Most of the tacky revelations about the lives of movie stars and other celebrities are bought and paid for by media outlets only too happy to lay often-staggering sums of money on relatives, neighbours, former lovers and others who will spill the beans. Perhaps there is some sort of justice in this but I doubt anyone will be well served when every reputable outlet declines to pony up, leaving the stars at the mercy of those whose willingness to compromise their ethics will already have been well established.

Image: Steele’s student

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There is no magic recipe for a successful company, only good cooks

By Francis Moran

African dishes There is no magic recipe for a successful company, only good cooksI have shamelessly adapted the headline of this post from a Wall Street Journal article I read on the weekend that reviewed two excellent books tracking the ascendancy of Africa over the past decade and predicting that the continent’s rise as an economic force to be reckoned with would continue in similar fashion for the next decade. Acknowledging the structural problems many African countries face on the political front, one of the reviewed authors was quoted as writing, “there is no magic recipe for turning countries around, only good cooks.”

The sharp application of the sentiment to the founding of companies was immediately and forcefully impressed upon me. There is no magic recipe for a successful company. There are only good cooks.

When I founded inmedia Public Relations at the height of the telecom boom in late 1998, I used to say our template client was “three engineers, a brilliant idea and $10 to $15-million in U.S. venture capital.” We were seeing these companies form at the rate of several a month, and I thought they were all going to succeed.

Boy, was I wrong.

Looking back, I have identified three reasons why most of these companies failed.

The first is that the success of many of them relied on genuine invention; these companies had to make a breakthrough in the science of physics, semiconductors or photonics in order to achieve what they were setting out to do. I — and they and their investors — swiftly learned a eureka moment can’t be manufactured by throwing money and engineers at it.

The second cause of failure for many came when the telecom bubble burst, and the market for what was being developed went away.

The third, and most common, cause of failure, however, had nothing to do with either of the above. Many of these companies had the capacity to develop the product their business plans called for. Many of them were playing in markets where success, while hard to come by, was still achievable. They went under purely and simply due to a failure to execute. In short, they possessed all the ingredients necessary for success, they were just lousy cooks.

While many companies, and those who back them, continue to search for some sort of elusive formula that will guarantee success, there is a growing awareness that the bet ought to be placed not on the ingredients and steps in the recipe but, rather, on the cooks and their skill in the kitchen. We’re seeing this with the latest initiative out of the Silicon Valley accelerator program Y Combinator, where teams can apply without having any idea whatsoever of the product they might want to build. In other words, Y Combinator will invest in what it thinks is a great team of cooks, and let them figure out later exactly what dish they’re actually going to pull together. You might argue that this is just the latest shot of hot air injected into the unsustainable startup froth that Y Combinator has played no small part in whipping up, but it is still a confirmation of the reality that execution trumps all else.

Our own experience in writing extensively this past year about the commercialization ecosystem would concur that there is no sure-fire path to success. Some companies have made use of every ingredient in the startup larder, and have still failed. There certainly is no commonality among the winners in terms of how they got there except for the ability of the founders to be their own taste-makers, adapt on the fly, use a pinch of this and a dash of that, and eventually pull something out of the oven that enough customers actually want to eat.

Postscript: The photo at the top of this post is a picture I took a year or so ago in Cape Town’s Africa Cafe, where owner and chef Portia de Smidt embodies both sides of the metaphor of cook as entrepreneur. Her food is an inventive and largely self-taught journey through the myriad tastes of this diverse continent while the story of how she and husband Jason de Smidt broke most of the rules of apartheid-era South Africa to open their restaurant first in their own home and eventually in their own building is a classic tale of adaptable and committed entrepreneurship. The metaphor continues whenever I cook something out of Portia’s recipe book as I am obliged to constantly adapt and invent in order to compensate for ingredients I can’t get at all or that exhibit a different flavour profile than their African equivalents.

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What’s going on in Waterloo?

By Francis Moran

IMG 0362 025 300x200 Whats going on in Waterloo?Regular readers of this blog will know that I spend a fair bit of time in the Waterloo region where both the buzz and the substance of the startup scene seem to get louder and more solid every day. (And before folks in Ottawa think I’m ignoring my hometown, let me acknowledge the high-energy, very high-volume event at The Hub last night where the Capital Angel Network brought together an extraordinary collection of entrepreneurs, angel investors and an encouraging cross-section of the local ecosystem. I left quite hoarse from all the fantastic conversations I had, many of which revolved around great things happening on the Ottawa scene.)

I spent much of last week in Kitchener-Waterloo, however, and, as always, came away with a bunch of favourable impressions.

Communitech launches new incubator program

The big announcement at Communitech’s Technology Leadership Conference last Tuesday was a sneak peek at the economic development organisation’s new incubator program, the full details of which were released earlier this week. Called HYPERDRIVE, the program offers $55,000 in cash to each of the 90 companies it will enrol in 10-company cohorts for a three-month “sprint to demo day” over the next three years. Graduates get a further $150,000 in convertible debt and an ongoing 24-month program of support that includes “a brief stint” in Manhattan.

There are now tonnes of incubator and accelerator programs from which entrepreneurs can choose. I like HYPERDRIVE’s richer-than-usual up-front investment — most such programs pay out no more than $15,000 or $20,000, a sum that barely covers living expenses during the typical three-month program duration. Even better, it is becoming quite clear that companies exiting such programs need a further immediate injection of cash, with many unable to wait for the post-demo-day dance with venture investors to wind its lengthy way to an eventual investment. So the $150,000 is an attractive add-on component of HYPERDRIVE, as is the Manhattan stint if it gives the companies meaningful exposure to the investment and supply-chain ecosystems there.

(I don’t think I’m colouring outside the lines here when I report that Invest Ottawa’s Bruce Lazenby told me last night that some equally good investment-related news will soon be announced here in Ottawa. UPDATE: In a lunch-time speech to the Building Owners and Managers Association yesterday, Lazenby previewed the $35-million fund he is hoping to bring to Ottawa.)

Neil Pasricha2 Whats going on in Waterloo?Great keynotes at leadership conference

While on the topic of the leadership conference, I thoroughly enjoyed its three keynote speakers, two of whom exceeded my slightly jaded expectations of what I was going to hear.

I have long been a believer in the spiritual health benefits of what was once quaintly known as counting your blessings. However, the cynic in me was prepared to be underwhelmed by what I thought might be little more than a bunch of pollyanna tritenesses from author and blogger Neil Pasricha, whose 1,000 Awesome Things blog and subsequent books have exploded from an exercise in personal spiritual recovery to a global phenomenon. (Coincidentally, the final post in Pasricha’s more-than-four-year commitment to a five-posts-a-week blogging schedule was revealed in Toronto last night and is on his blog today.) Pasricha, who coyly ignores his Harvard education and demurs that he “works at Walmart,” electrified the crowd with his honest vulnerability and impressed me with how he has drilled through the small joys of his web project to examine the sociological merits of finding happiness in the mundane but still meaningful small moments of our lives.

IMG 8504 064 200x300 Whats going on in Waterloo?Publishing sensation Arianna Huffington also exceeded my expectations, although in a much different way. Here was a woman I expected to be inspirational, but patrician and remote. Dunno why I though so; I just did. But she won over the crowd from her opening admission that she owns “not one, not two, not three, but four Blackberrys.” In a home-town arena of the beleaguered Canadian technology company, her commitment to single-handedly underwrite RIM’s survival was very well received. Huffington was unexpectedly both funny and self-deprecating, and I especially welcomed her deliberate sidebar to women entrepreneurs in the room, something I don’t witness often enough in this male-dominated sector of ours.

IMG 0418 035 300x2001 Whats going on in Waterloo?The third speaker was Nora Young, host of CBC Radio’s “Spark,” and if she failed to exceed my expectations it was only because I had pretty high hopes for her in the first place. I am a regular listener to Young’s weekly roundup of technology topics and trends and it was great to hear a long-form version at the conference.

We built out our Waterloo presence

My trip was a productive one for this blog and for the consulting firm that brings it to you. I recruited two new contributors to our blog, one of whom is also joining Francis Moran and Associates as an associate. I will properly introduce both as they begin their contributions here. Watch this space.

What about RIM?

I can’t tell Ottawans that I’m headed down to Waterloo without them asking me what the possible demise of RIM might auger for the broader technology community there. With the fallout still being felt from the unforgivable mismanagement and incomprehensible dismantling of Ottawa’s own technology powerhouse, Nortel, most here in the 613 assume that any similar fate for RIM will have a similar impact in the 519.

I simply don’t see the parallel.

Lost on most is the reality that RIM did not make Waterloo; Waterloo made RIM. And the forces that assisted RIM in becoming a global technology leader will persist and be available to all other local technology ventures no matter what happens to this one. Indeed, while I wish for nothing more than that RIM find its way back to thriving glory, its departure — either through outright failure or a breakup and offshore sale of its component pieces — could well be beneficial for the broader community. Smart, experienced executives who have built and operated global business units within RIM are already starting to exit the company to start or helm young ventures. I wouldn’t say it’s yet a rats-and-sinking-ship phenomenon; more a case of seasoned executives looking for the greater freedom and opportunity that a new venture offers. Any further decline in RIM’s fortunes, however, will only accelerate this process, which won’t be a bad thing for the rest of the ecosystem in Waterloo, to say nothing of the freeing up of scarce resources like talent and space that would follow in the wake of any significant shrinkage at RIM.

Simply put, there is far too much momentum in Waterloo, momentum that is utterly unconnected in any to the rise or fall of RIM’s fortunes. Any death of RIM will be mourned as the sad day it would be; the momentum will only gain strength.

Finally, how about that Pebble watch!

I went to another fabulous event last week, Tuesday night’s MoBeers, and ran into VidYard CEO Michael Litt. I asked Litt about his pal Eric Migicovksy, who I first met when he was a student at the University of Waterloo’s Velocity incubator. I’ve watched with interest ever since as Migicovsky brought his novel Blackberry-connected watch inPulse to market. (Migicovky and Litt both operated their young companies out of a house Litt owned on Batavia Place in Waterloo. Both got accepted into the elite Silicon Valley incubator, Y-Combinator, a nice story we were happy, on a pro bono basis, to pitch to the National Post.) As we chatted about Migicovsky, neither Litt nor I had any inkling that he was about to become the global startup story of the week.

A couple of days after our conversation, Migicovsky launched a campaign on the crowd-sourced fundraising site Kickstarter. He was hoping to raise $100,000 to fund his new product, the Pebble smart watch that connects an e-paper display to iOS and Android devices using a Bluetooth connection. In less than 28 hours, he had raised more than $1-million, a sum that within five days rose to more than $3.5-million, the most ever raised via Kickstarter. As of this morning, the total is a mind-blowing $5-million raised from nearly 35,000 backers. Phenomenal work, Eric; now all you have to do is build a few hundred thousand watches!

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Learning how to deal with the unexpected

This is the sixth article in a continuing monthly series chronicling the growth path of Screenreach Interactive, a startup based in Newcastle upon Tyne in England’s North East. Screenreach’s flagship product, Screach, is an interactive digital media platform that allows users to create real-time, two-way interactive experiences between a smart device (through the Screach app) and any content, on any screen or just within the mobile device itself. We invite your feedback.

By Francis Moran and Alexandra Reid

FM startup banner head ART1 300x145 Learning how to deal with the unexpected  When we last checked in with Screenreach, the company was in the midst of tweaking the new version of its Screach application for a March 7 launch. The team was well on track and seemed to have all of its ducks in a row. They had found out what their market needed, solicited feedback from beta testers, sharpened their story, identified qualified customers, worked collaboratively, promoted their product and garnered media attention.

But as can be expected at a startup company, things didn’t go completely as planned. On launch day, the Apple application store informed the team that there was a problem.

In this post, Screenreach CEO Paul Rawlings explains what the team did to push through to launch.

The new product

The new version of the Screach application focuses on the user experience. Now users can personalize, socialize and localize their interactions with content using any device that can download the application. While the original application focused on allowing users to interact with content on a digital screen, the new version allows for the same interactive experiences between smart devices and a smart  device and a location.

Screach.com has also been redesigned. While the site was originally a place for product information and the Screach blog, anyone can now launch their own Screach experience on the site and interact with it through the Screach app on their smartphone. One example of how the experience has been personalized is that it lets users connect to Twitter and Facebook, allowing the system to identify Screach experiences relevant to their location.

The first version of Screach was launched at DEMO in March 2011 and since then, the product and team have evolved and grown. As such, the launch of Screach 2.0 was one of the biggest projects they have worked on together since this time – there were bound to be a number of new obstacles.

One problem equals many individual challenges

One of the main challenges the team faced was balancing every aspect of the launch for it to come together in unison at the end. You need to remain aware of the fact that not everything on the run up to launching a product will remain in your control. You need to account for issues or delays that may arise from external organisations.

The team came across challenges when the approval of their new version of Screach was delayed with Apple. The issue meant that every team member was faced with their own unique challenges.

“Whilst the development team began trying to resolve the issue as quickly as possible, other departments dealt with any knock on effects that a potential delay could create.”

But that doesn’t mean you tackle the problem individually.

“The main thing when a challenge like this occurs is to keep the communication going,” said Rawlings. “You must bring everyone together because you can never foresee how something will affect someone else. You’ve got to identify the challenge, the various solutions, what works for everyone and the problems that can come up in individual departments.”

Always give yourself more time

“We knew the problem could take two days to fix, but then again, it could always take a little longer,” said Rawlings. “Make sure you account for this potential extra time in your schedule. If you don’t need it then great, but if you do, then at least you’ve given yourself everything you need to deal with the situation.”

Debriefs are critical

Startups are almost always on a learning curve, explained Rawlings.

“You’ve got to make a conscious effort to make a note of all the struggles and make a list of strengths and weaknesses. Then you must hold a debrief and go through everything to ensure you make things better next time. That way, you feel so much more prepared for your next project, how you’re going to take it head on and solve the problems. You’re able to see problems before they happen.”

After a few days of tough work, the Screanreach team was able to fix the problem and launch the application. They have since been busy uncovering and developing more ways for users to play with Screach and raising the profile of the application for users. To attract users, and fast, Screenreach is taking a gamification approach and has launched a number of new personalized experiences available online and through the Screach app.

“Getting the application out has been a huge accomplishment,” said Rawlings . “We’ve all gotten through this challenge as a team and we’ll come out a whole lot wiser for the next time.”

In our next installment, we’ll go over Screanreach’s new product developments and how the team is tailoring them to create unique and exciting user experiences.

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FounderFuel emphasizes mentor interaction in second cohort

By Francis Moran

FounderFuel 300x125 FounderFuel emphasizes mentor interaction in second cohortFounderFuel is a Montreal-based startup accelerator for which I have been a mentor through its first two cohorts. I recently caught up with John Stokes, a partner with Real Ventures, the seed-stage venture firm behind FounderFuel. Following is an edited and condensed version of our conversation. I started by asking John how FounderFuel was going in general, now that it was well into its second cohort of teams.

“Most of the people involved here, certainly myself and (Real Venture general partner) Alan (MacIntosh), have been pretty involved in other accelerator programs to one extent or another. But when you are running on your own and you really get down to brass tacks, there’s always more to it than you see. We took a long time to decide when we were ready to do it, and I think that decision, that preparation was worth while.

John stokes1 300x193 FounderFuel emphasizes mentor interaction in second cohort“The one thing we always thought was really important was making sure that we have the strength as a community, both mentors and the community itself, in order to really make it a viable offering both for the entrepreneurs who come and also for investors. When we look at the first cohort, we did manage to get a good mentor turnout, we did get a good community turnout. I think that Demo Day was a massive success, and we have managed to get already four companies well funded, and I think there could be a fifth just around the corner. So in terms of being able to make them venture-ready, we are certainly pleased with how that’s gone.

“I think the entrepreneurs who went through it are happy. I think we are happy with the community. We were happy with the mentor support, so in general it was a good performance.

“Looking forward, I think the first thing that has gone through our minds is recognizing that mentors like yourself are essential to the success of the program and that we put quite a bit of time and effort into improving the quantity and quality of interactions with the mentors. We really try to reach out to them and embrace them more and make sure they are really getting something out of it.

“What we are realizing is it’s quality over quantity. And I don’t necessarily mean just the quality of the mentors — we’ve always been happy with the quality of the mentors — but the quantity of quality interactions with the mentors, as opposed to having them just drop in and move on to other stuff. (With this cohort,) we probably have fewer ongoing mentor interactions, but more in terms of the actual depth and the quality of those interactions. And I think the teams are certainly responding to that.

“We are almost at the end of the first month, the first four weeks of the second cohort, and we start to remember how it was in the first cohort. Things move so quickly and we sort of forget how raw people are when they come in to these cluster programs. They really are raw, and I actually think that a lot of people who came to the first mentor day were pretty freaked at how raw some of the companies were, and the contrast between that day and the demo day is really phenomenal.

“The first month of the cohort really is an exploration of the idea and a twisting and a turning and it sometimes feels on paper that there’s less that happens in that first month, and it sometimes makes people nervous. But it’s in that time we are stepping back from the code which means that when you do put the pedal to the metal, you are really heading in a clear direction. We are now getting to that situation again where there has been some navel gazing, some soul-searching, some twisting and turning, not just on messaging but on the vision for the products. And I think next week we are really getting to that point where people are locking in what it is that they are going to be pushing the hardest for in the next month. And that’s when it moves from discussion and inputs from mentors to looking to put in place the business development relationships, to really starting to turn the idea into the business. That’s what sorts the men out from the boys, or the women out from the girls.”

Q: Did anything surprise you, through the tenure of the first cohort?

“I’m almost thinking no. I mean I’ve spent a lot of time on these things. I have been mentoring for three years and been involved in TechStars in one way or another for a while. The key thing is the feedback that we got (from the teams) to be harder earlier. There was, with the first cohort, a period of settling in. It was a honeymoon. (This time,) there has been no honeymoon. You know, you walk in through that door and within 48 hours, everyone pretty much realizes that they are in something different. I guess of all the things (that have changed), getting them in deeper quicker, making them really realize what they are up against is something we’ve have been very conscious of doing.

“I think we have been very pleased. I mean, you expect something to happen, but when it really happens and you see it in the flesh, it’s sometimes surprising to see it at all. But the idea of the teams helping each other, and the peer feedback and that peer-to-peer support is something I always knew was important, and it really became very obvious with the teams challenging each other and pushing each other, helping each other, supporting each other. That’s something we anticipated, but we were really pleased to see it actually taking off, because that’s not something we can control.”

Q: Did the fact that you had a first cohort successfully under your belt, that you had more time to really promote and talk about the program,  add up to a bigger or, even more importantly, a better class of applicant for the second cohort?

“I don’t know that it necessarily meant bigger and I really think the proof will be whether the cohort is better. But it could be that the cohort was better and we were just worse pickers. I do think that the applicants were more aware of what it was they were getting into. And obviously, we’ve only done one cohort, and I think we’ll get better and better and better at understanding what it is that makes a good team. Certainly on the first cohort, we thought we had a sense of what makes a good team but I think our selection process was somewhat influenced by the first one. I’m sure our next one will be influenced by this one, and it’s sort of getting an understanding of what doesn’t work. You actually find out what doesn’t work before you find out what works.”

Q: As a mentor, it has been visible to me some of the changes you have made from a mentor-facing perspective. What significant changes have you made from the team-facing perspective?

“The teams have been exposed to more input, more ideas, more people in the first months, than the first cohort was, and they’ve been challenged more. (Additionally,) as the program’s notoriety gets up, they’re getting more and more exposed to the sort of offers and services and other sorts of things that other starter programs are offering — discounts on this, special deals on that.”

Two separate film productions are being made of this cohort, and Stokes said he was looking forward to seeing what that process did for the teams and for the program itself.

“It’s going to be interesting to see what impact that has on the teams actually being filmed and involved in that. I think it’s good in terms of increasing the awareness of what this program’s about.

“One of the other things is: I don’t think it necessarily matters what stage your product is at, we can still really have a major impact even if you’re further ahead than you might traditionally have thought might benefit from accelerator. I really do think that even companies that are in market and are generating revenues or have good traction, also are genuinely able to benefit from an accelerator. Maybe that’s reflected somehow in the teams that are applying (because) here are a couple of teams that are further ahead, from a product and from a market point of view, than were in the previous cohort.”

Q: Finally, FounderFuel is a significant initiative of Real Ventures, not something that every venture firm chooses to do and presumably not something you had to do. Why were you keen on starting an accelerator program and has FounderFuel so far met those expectations?

“Success of a venture fund is based on identifying talent and, more than that talent, identifying the good ideas. Our objective when we were starting to look at FounderFuel, and how we work as a seed fund, was how can we identity talent quicker, cheaper, more effectively than ever before. So I think that’s one aspect, and FounderFuel certainly is a way of identifying talent.

“The second thing is whilst FounderFuel has the investor behind it, we treat our partners as four mentors among a hundred. And we sort of stressed to everyone that we are just that. We try and involve other venture funds, other angel investors as much as possible, the reason being that it’s part of community building. I think that the accelerator programs, because of the way they attract mentors, are the networking events of today’s early-stage startup environment. It’s the place where you go to interact with successful entrepreneurs, it’s the place you go to interact with VCs, it’s the place you go to interact with industry execs. It sort of is becoming a networking event and a community-building event, and I think by getting that, it gives some gravitas and a central point around which everyone can network and communicate.

“So identifying talent is something which we can get on one hand, and I think the community-building aspect is not just the strengthening of your own community, but is the other thing that a venture capital firm needs to do. It needs to have connections, and it needs to identify talent, and I think the accelerator program does both.

“And you know, if we look at the first cohort, on paper it’s making us money. We’ve already more than recouped our investment based on current valuations of follow-on investment into our companies in the first cohort. So I do see it as something which can make us money.”

Q: Any final thoughts?

“An incubator goes from strength to strength to strength, and I think, still only going on with the second cohort, we need to prove ourselves to our entrepreneurs, we need to prove ourselves to the mentors and the groups that form around us, and we need to prove ourselves to other VCs in the market that it is a source of deals. It’s very, very early days, we are learning, we are iterating, and we are listening to other people running other programs and as they recognize it, right now it’s at an early stage and we’ve got to keep on building on that base.”

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Government incentive programs set for major shakeup

Money  300x214 Government incentive programs set for major shakeupBy Francis Moran

The eyes of the Canadian commercialization ecosystem will be focused sharply on Toronto and Ottawa this week as the Ontario and federal governments bring down new budgets that are expected to considerably reshape broad programs of industrial, research and business incentives in each jurisdiction.

At the federal level, where the budget arrives Thursday, the main concern will be around the future of the Scientific Research and Experimental Development tax credit, a widely used program that accounts for well more than half of Ottawa’s annual $7-billion support for research and development. More than 24,000 companies every year underwrite at least part of their operations through this refundable tax credit that gets paid out whether the company is profitable or not. The fear is that the federal government will follow the advice of the Expert Panel Review of the Federal Support to Research and Development, a task force that suggested SR&ED be scaled back and the savings redirected into more direct funding of research.

A second major issue that may be addressed in Thursday’s federal budget is the role of national research institutions, like the National Research Council and its Industrial Research Assistance Program, and funding bodies, like the Natural Sciences and Engineering Research Council of Canada and the Social Sciences and Humanities Research Council. In an era of sharp government deficits and belt-tightening, there is a great deal of trepidation that support programs that have been relied upon for years will disappear entirely or be practically unrecognisable in their new, post-budget format.

In Ontario the debt situation is even more grave and a provincial government must balance the urgent need to reduce spending with an equally acute requirement to foster economic growth. Tuesday’s budget may contain changes to the popular Interactive Digital Media Tax Credit, a program that closely parallels SR&ED in its reimbursement of eligible labour and equipment costs.

In our Commercialization Ecosystem series, we looked at several of these ways in which governments seek to support the bringing of technology to market. While opinion varies widely about the role of government and the effectiveness of various government programs and institutions, there is no doubt that there is a very heavy reliance on these structures. In recognition of this, we will be featuring two commentaries this week in the immediate wake of the provincial and government budgets. Written by Terry Lavineway, director of business incentives at the chartered accounting firm Welch LLP, the two commentaries will detail changes to government incentive programs and explain what they mean to entrepreneurs and investors.

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My day at FounderFuel

By Francis Moran.

FounderFuel lunch My day at FounderFuel

FounderFuel participants enjoy a pizza lunch

When I first learned of FounderFuel, the Montreal-based accelerator program developed by the folks at Real Ventures, I asked if I could be part of their mentor program. I was pretty up front about what I was looking for; we had been writing a fair bit about accelerators and I wanted the chance to see the process from the inside even if, like sausages, you should never look too closely at how some things are made. Because Real Ventures focuses its investments on companies in web, mobile and digital media, none of which are really my sandbox, I didn’t think I’d be the most useful mentor they recruited so I was pretty chuffed when they let me in with the first cohort and delighted that they asked me back for the second. The truth is, many of the companies in the first and, now, especially the second cohort are working in areas where my experience has some relevance and I’ve enjoyed the work with these teams of young entrepreneurs.

I stepped up that contribution a bit yesterday when I put on a class looking at the basics involved in developing a marketing strategy. It was the shallowest of dives into the planning process as I tried to skim over in an hour what it usually takes me several weeks of work to bring a client through. Still, attendance at the session was pretty good, the questions were excellent, and it was only the necessity of catching my train home that obliged me to put a halt to the one-on-one consultations I had with several of the teams that could have gone on for some time.

I’ll write next week about how FounderFuel’s organisers think the program is going, what they learned from their first cohort, and why they have made the changes they have from the first to the second cohort. In the meantime, however, FounderFuel turned the tables on me and interviewed me last week. They asked a bunch of questions I don’t often take the time to deliberate so I thought it worthwhile to share their post here.

Day 17: Francis Moran unlocks the key to marketing

Today was another fun-filled day at FounderFuel. Francis Moran stopped by to talk to the teams about bringing their technology to market, giving great insight into refining your product, understanding it, and then how to market from there. He used the teams as examples, allowing them to step into his matrices and diagrams, which was of great value for all to see the other teams and themselves put into his frameworks. For lunch, BDO kindly treated us to pizza and everyone sat around to learn about cash management, taxes, the importance of finance (even/especially early on), and SR&ED, among other things.

Before Francis came in, I got the chance to ask him a few questions. Here’s what came of them:

First off, you’re a mentor in our accelerator program. Without naming any teams, how do you feel about our new cohort and how did Mentor Day go over for you?

This was my second Mentor Day and I enjoyed it even more than the first. The teams were, if possible, even sharper and more developed than those in the first cohort. It might just be my general sense but I thought there were more B2B companies in this cohort. Given that B2B is my focus, it made this cohort more interesting and it was easier for me to see how I could help some of them.

You focus on B2B technology companies and helping them with marketing strategies. What do you think is the most common marketing mistake B2B tech companies make in their marketing strategies?

The most common error is not having a strategy at all. Too many technology companies have a “Build it and they will come” attitude. This generally leads to not having a strategy, although it’s not the only cause.

What do you think the key to a successful marketing strategy is?

It begins with the customer; understand the customer and the rest is easy.

You’ve been in the industry for 30 years now. Naturally, there have been shifts in so many facets of the marketing industry. This has undoubtedly changed the key to a successful marketing strategy over the years. What’s changed and what’s stayed the same?

The fundamentals remain exactly the same. The options available for implementing a marketing program obviously have changed dramatically but successful companies 30 years ago built their business around the customer and successful companies today do the same.

What are the biggest shifts that you’ve seen in the technology marketing industry, and what do you think will be the biggest shifts to come in the next decade or so?.

Francis on whiteboard 6 My day at FounderFuel

Francis goes old school with a whiteboard–but he’s got lots of great new tricks for the teams to use.

It has never been easier for prospects to find out everything they need to know to make a purchase decision. Often, they can do this without once having to rely on marketing materials from their potential vendors. This has led to an amazing shift in the balance of power between buyer and seller. Paradoxically, the same forces mean it has never been easier for a company to enter into a conversation with the marketplace, replacing tired old one-way promotional efforts with a more authentic exchange of information.

New channels across which these conversations can take place are being created all the time. And, not being able to see over the horizon any better than the rest of you, I can’t predict what’s coming except to say that there will be many nexts.

One area that is going to gain a huge amount of attention, however, is neuro-marketing. We write a fair bit about this on our blog. We are gaining an ever-better understanding of exactly what the brain is doing whilst it processes information and makes choices. Functional MRI scanners can literally show us which areas of the brain are lighting up when we make a decision to buy something. You’ve gotta believe marketers are keenly interested in this.

What are some strategies that you’ve used to market technological companies in order to humanize them and make customers respond to them?

The most compelling example I can cite is a company we helped launch in 1997. (And that we still work with today.) It was bringing to market the world’s most advanced artificial hand. The technology itself would have made this an amazing story to tell. But the impact this new piece of technology had on the first patients to be fitted with it catapulted the story into the stratosphere. I’ve presented our case study on this product launch scores of times. Every time, I hear people gasp when I put up the pictures of the hand — they are absolutely amazing pictures and the hand looks like something out of “The Terminator.” But when I follow them with the pictures and stories of our first three patients, the room goes very quiet and the hair rises on the back of my neck. Every time. That’s what making it all about human element does.

There’s a misconception in the B2B realm that we’re marketing to other companies that are, by definition, faceless and without emotion. However, every company is made up of people, and every customer interaction is between people. It’s essential that we get to the human element just as swiftly as possible. No-one buys technology — or anything else — unless it delivers a valuable benefit to some human.

How has the reception of technological companies (by consumers, businesses) changed since you bought your first cell phone

Again, I think it’s much the same, at least from a marketing perspective. One of the core challenges of marketing technology is that we are usually trying to persuade customers to do something new, or to change the way they used to do something. And persuading human beings to change how they do things is devilishly difficult. Despite the greater profusion of technology in our lives today, I’m not sure that imperative has gotten any easier.

Who were some people that you looked up to when you were first getting started in the industry? And who do you look up to now?

I had some amazing mentors at almost every stage of my career beginning with my first-ever assignment editor, an almost cliche’ed model of the crusty old newspaperman except she was in her 30s and a woman. She taught me how to ask questions and how to write fast and clean; those two skills underpin most everything I do.

I don’t know that “look up to” is the right phrase but the people I most enjoy working with today are the really bright and committed younger folk I get to deal with both within my own company and within our client companies. I spend far more time than ought to be necessary refuting the contention that young people today are shiftless, attention-challenged and self-centred. I’m sure many are, as were many of every generation that came before. But I am inspired every day by the countless examples I encounter of young people who are anything but.

What kinds of things do you like to do in your free time?

FounderFuel Note taking My day at FounderFuel

Notes, notes, notes!

I love to travel and I love to live and eat like a local when I do, even when travelling on business. (I visited four continents last year.)

I’m a news junkie — I am a recovering journalist, after all — so I devour the best newspaper in Canada (it also happens to be one of the best in the world) from cover to cover every day. It’s a critical part of my world citizenship.

One of my very first ventures — photography — is an expensive hobby now. (There is no customer. See my answer to the next question!)

I enjoy skiing, golf, tennis, biking and a bunch of other things, most of which I do with far more enthusiasm than skill.

I have two sons aged 18 and 16, and a wife who also works in technology marketing, which makes for some very interesting conversations in our household.

We have an over-active three-year old Viszla named Pulitzer, a nod both to his Hungarian heritage and to the fact that I shall probably never win a real Pulitzer.

Any words of advice to the teams in our cohort?

Never stop asking, “Who is going to pay money to buy what I am building?” Without that, it’s not a business; it’s a hobby.

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Why I find the Stop Kony 2012 campaign so offensive

Kony 300x198 Why I find the Stop Kony 2012 campaign so offensiveBy Francis Moran

I first became aware of the Stop Kony 2012 campaign late on Wednesday evening and, from my very first viewing of the video, I had a sharp visceral objection to what I was watching.

The marketer in me objected to the video’s manipulative emotional hard sell whilst acknowledging with no small amount of awe the incredibly slick and effective manner in which it was done.

The informed citizen in me objected to the video’s simplistic reductionism of a complex, multi-dimensional and long-standing and intractable issue.

The journalist in me objected to the video’s factual misrepresentation and cheap sensationalism, and cried over the tragic African illiteracy of too many westerners that would allow this sort of intellectual pablum to be swallowed as truth.

The due diligence streak in me objected to the video’s expensive and lavish production values, and further investigation confirmed the charity behind the video has a superb track record at fund-raising and a less-than-superb track record of spending that money on front-line programming.

And, most viscerally, the Africaphile in me objected violently to the video’s deeply offensive subtextual narrative that Africans are helpless savages who must be rescued by some white man.

Like most of the tens of millions who have learned of this campaign, I was first made aware of it through posts in various social media streams. I tried to engage with the person whose post I first read, suggesting that his newfound desire to do something to rid central Africa of this vile and evil man was admirable, but that the organisation in question was dodgy and that there might be better and more effective mechanisms for his advocacy and for his dollars. I pointed him to some cogent and well-researched criticisms of the charity but he immediately dismissed them as “poorly written arguments by academic armchair critics.”

Here’s the really sad part. My Facebook friend who brought this campaign to my attention is a savvy and successful business person and marketer whose proficient use of the tools of persuasion has built two lovely, unique, multi-million dollar consumer product companies that are thriving. While I would not necessarily credit him with the most raised of political consciousness, I am both surprised and aggrieved that he, of all people, has been unable to recognise this campaign for what it is — a slick, manipulative exercise in self-aggrandisement that offensively and wrongly mischaracterises a complex issue in the promotion not of an effective solution but in the merchandising of bracelets and t-shirts.

This isn’t activism; it’s consumerism.

It’s easy to laugh at the celebrities who have glommed on to this campaign and filled their Twitter streams with hopelessly naive pronouncements. It’s a lot more painful to contemplate that otherwise intelligent and well-meaning people, like my Facebook friend, are naive enough to have been sucked in by this.

Most of those who join the campaign will be empty-headed, attention-challenged band-wagon jumpers who will turn their limited attention span to the very next bright shiny object just as soon as it shows up and, you might say, no harm done. Except, too many of these people will be persuaded to donate to a cause that is far more about selling t-shirts than finding solutions. The harm lies in the diversion of millions of well-intentioned dollars into an organisation whose on-the-ground effectiveness is suspect, at best. Those are scarce and much-needed dollars that now will not flow to the far more proven, sensitive and successful efforts by countless other organisations that have been working effectively on this issue for decades. And the harm, perhaps even more profoundly, also lies in the perpetuation of an old, tired and paternalistic narrative about Africa, a narrative that says Africans kill Africans and that we in the west must step in to save them from themselves.

The silver lining I see in this is that the campaign will succeed in bringing the issue of Kony and the LRA to the attention of millions of otherwise ill-informed people. If even some of those people are moved to a more expansive, nuanced and sensitive exploration of the complex social, economic, resource-extraction and political challenges that embroil the countries of central and eastern Africa, then this will be a good thing. If you are one such person, some simple searches will bring you to well-considered articles dissecting what’s wrong with the Stop Kony campaign, educating you on the more complex issues at play, and pointing you towards alternative organisations far more deserving of your support.

Finally, let me point you to the story of William KamKwamba. It’s a story I first heard several years ago, but, coincidentally, someone brought it to my attention again this week and it stands in sharp contrast to the Stop Kony campaign as an alternative narrative of what’s happening across Africa. It’s a story of a dreamer, a story of ingenuity, a story of desire, tenacity and accomplishment. Political turmoil, corruption, exploitation, conflict, poverty and famine are a still-too-common part of today’s African reality. They’re the part that gets the headline treatment and it’s important that we know about them. But stories like William’s and countless others like him tell us there is another narrative, a far more hopeful one that sees Africans themselves harness the same human desires and capabilities we all share in pursuit of the same dreams and ambitions. Kony is Africa’s yesterday, and he must be put to bed. KamKwamba is Africa’s tomorrow, and he must be celebrated.

Image via Ricochet

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Startup Weekend coming to Ottawa

By Francis Moran

SWOttawa 300x72 Startup Weekend coming to OttawaOttawa is about to finally get its own edition of Startup Weekend, a global phenomenon that has seen more than 45,000 technical and business people come together in more than 200 separate events around the world to spend a full weekend building new businesses. The intensive 54-hour company-building competition will take place in the nation’s capital April 27 to 29 at Shopify’s headquarters at 126 York Street in the Byward Market.

Although The Ottawa Network had a similar event a couple of years ago, this will be the first time the city has welcomed the official Startup Weekend, an initiative of the Kauffman Foundation, the large American NGO that promotes entrepreneurship. The event kicks off on Friday evening with rapid-fire pitches from participants who would like their ideas to be the focus of company-building teams over the weekend. All participants vote on which ideas will be workshopped, and teams form organically around each idea. The teams work feverishly all weekend, breaking occasionally for presentations, sleep and coffee, and present their ideas late on Sunday afternoon. A panel of judges selects the winning team.

Organizer Cheryl Draper told me this morning that ticket sales are going extremely well. “We’ve had ticket sales open for only a few days so far and we have already sold about 50 percent of our tickets.” Additionally, organizers have recruited a solid group of mentors to help coach the teams, including Ottawa’s usual startup suspects Luc Levesque, Scott Annan and Harley Finkelstein.

Draper, who also organises Ottawa Startup Drinks, said it was time for Ottawa to have its own Startup Weekend experience. “We really needed an event like this in Ottawa,” she said.

The winning team will receive a mix of software and technology products and, hopefully, some cold hard cash. “We have just started reaching out to sponsors,” Draper said. “We’re hoping to have a good prize package, whether it’s cash, software or access to technology.”

You don’t have to be a geek to participant in Startup Weekend Ottawa. While developers and designers are two of the three categories of participants, the weekend also relies on non-technical people such as business, marketing and PR types. Early-bird registration at $75 runs until March 28, after which the price goes up to $99. The ticket covers the whole weekend, including food and drinks.

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Best of: Think like the fish

This is the next entry in our “Best of” series, in which we venture deep into the vault to replay blog opinion and insight that has withstood the test of time. Today’s post hails from April 2010. We welcome your feedback.

By Francis Moran

Think like the fish Best of: Think like the fishI can’t remember when or from whom I first heard the line, “Marketers should think like the fish, not like the fisher.” But I have always enjoyed it as a pithy summary of our marketing credo that says you must put yourself in your customers’ shoes when plotting your marketing strategy. It doesn’t matter how fancy your new spinning rod might be, or how pretty the fly is that you just put on the end of your fly rod, if the fish aren’t hungry for what you’re offering, they’re not going to bite. You need to know what the fish are looking for and then craft your marketing message accordingly.

Driving along the other day, I saw the truck in this picture and I drove around a couple of city blocks so I could come back and take the picture. I tweeted this the other day but I thought I’d also share it here because it is such a simple-yet-brilliant example of this precept. Enjoy.