I spent a little time at StartupWeekendHamilton3 in April as a mentor and was talking to a young founder who proclaimed that there was one great accelerator in Canada. Who he said it was surprised me a little and got me thinking, what makes an accelerator “the best” and why should an eager founder care? The baseline in my mind is Y-Combinator. No one can argue it is the best seed-stage accelerator based on its results. What is difficult for everyone to agree upon is what does it do to achieve those results or even harder, what defines success?
The incubator/accelerator market has a growing number of people watching and waiting for its bubble to pop. The reasons cited for this looming pop should be obvious: most accelerators aren’t going to perform as well as some TechStars programs and not even close to Y Combinator. Poor performance (measured in the number of short-term wins) along with the short-term nature of the funding behind most of the accelerator programs will cause them to run out of money and simply fade into startup history.
But that won’t pop the bubble.
By Daylin Mantyka
As a regular feature, we provide our readers with a roundup of some of the best articles we have read in the past week. On the podium this week are Techvibes, MarketingProfs, Co.Create and GigaOM.
Ian MacKinnon talks about the pros and cons of joining an accelerator and whether or not it’s right for your company.
The problem isn’t too little smart money, it’s too many dumb deals
By Ronald Weissman
The meme of the month is “The Series A Crunch.” According to Crunch Theory, many worthy seed-funded startups lack follow-on capital because VCs now have smaller funds or have moved later stage. CB Insights estimates $1 billion in seed financing will be “incinerated” and at least 1,000 companies will be orphaned. Other data suggest that the number of orphans could be much larger.
Those who say the problem lies with VCs (CB Insights isn’t one of them) must argue that the number of Series A deals has fallen sharply. This is not true and the problem lies elsewhere. Whatever the cause, there is, certainly, a capital crunch for seed-funded startups and it is likely to get worse, as the backlog of seed-stage companies needing Series A funding continues to grow.
I just this minute got off the phone with a CEO who has twice been a client. Along with a technical founder, he’s been working on a new startup for about a year now, and he wanted to pick my brain a bit on messaging and positioning. He said he was struggling with the consistency of his messaging, especially when it came to pitching investors. The company is looking for $500,000 in an angel round.
“Investors are telling us we sound like a completely different company the second time they hear our pitch,” my friend said.
What can your business learn from the Toy Testing Council?
December 03, 2013 by Leo Valiquette
If you are not familiar with it, the Canadian Toy Testing Council is a 55-year-old non-profit that enlists the volunteer aid of families to subject toys to the most rigorous testing possible – at the hands of kids [...]Read more... -
November roundup: What does it take to bring technology to market?
December 02, 2013 by Daylin Mantyka
Last month’s contents were newsworthy and informative. Leading the pack was Francis Moran’s post on angel investors and crowdfunding, followed by Maurice Smith’s post on the definition of ‘Digital Media’ [...]Read more... -
Great articles roundup: Public relations, growth, social media, tech trends & customer service
November 29, 2013 by Daylin Mantyka
Friday has rolled around yet again, which means we’ve compiled a short list of the top articles we read and loved over the week. Grabbing our attention were posts from Spin Sucks, Fast Company, Social Samosa, memeburn and velocity [...]Read more... -
Is your job as social media expert about to become obsolete?
November 28, 2013 by Francis Moran
When radio first came on the scene, getting the little box with its seemingly-magical mechanisms that plucked sound waves out of the air to actually make noise required users to know how radio worked [...]Read more... -
Government policy makers need to be at tech events
November 27, 2013 by Denzil Doyle
One of the best networking opportunities in the Ottawa area is something that is known as Tech Tuesday and is sponsored by Terry Matthews. It is held on the first Tuesday of every month at the Marshes golf course and is basically open to the public [...]Read more... -
Is your founder a Rob Ford?
November 25, 2013 by Jeff Campbell
The behaviors and acts of Rob Ford that are being amplified by media outlets around the world are comical at times, misguided for certain, illegal and problematic [...]Read more... -
Great articles roundup: Misfit and millennial entrepreneurs, marketing teams and content marketing
November 22, 2013 by Daylin Mantyka
It’s Friday — which means that it’s time for the great articles weekly roundup. This week. we selected some read-worthy content from Fast Company, Under 30 CEO and Marketing Tech Blog [...]Read more... -