The Post Money Value

Face Time with the Blue Monster (In Canada)

Those wild and crazy kids at Microsoft Canada have put together an award/contest called Blue Sky -ISV Innovation Awards.

What is the Blue Sky Award?

"The Blue Sky Award represents an exceptional opportunity for you to showcase your great idea. If you think your application is the next big thing, and have the business plan to prove it, this is your chance to demonstrate your solution to a panel of Microsoft and other industry experts."

You've got until May 15th to get your proposal in so click here and get cracking.

So you're probably thinking to yourself, "Self, this is really cool. I can take my cool Java widget creation business that is riding on Red Hat with the coolest Firefox plug-in ever, pitch this, and get a trophy with love from Microsoft."

Not exactly.

This is a bit focused on Microsoft technology where you apply to the program with a Windows Live ID and you have to use Internet Explorer to even register.

 

Lots of people are going to be snarky about this but, leaving the anti-Microsoft rhetoric aside, efforts like these are important for the eco-system of developers out there that code up add-ons, like Xobni, or other big time applications.  Some free PR from Microsoft isn't a bad thing when you are working hard inside the eco-system.

Okay, now go sign up.

 

Technorati Tags: Blue Monster,Microsoft,Start-up

From one who knows

I've had the pleasure of watching Jenny McCarthy perform in two start ups as one who has been up close and personal to the ups and serious downs of a start-up; I can confidently point anyone who wants to work in a start-up or who is hiring into a start-up right to her.  She knows the drill.

"I've been watching this business with Jason Calacanis talking about startup life and responding to the uproar about his tips for how to save money running a startup. You should read these tips. They're fantastic and damn true. But I know you're lazy, so here's the important one:

11. Fire people who are not workaholics. Come on folks, this is startup life, it's not a game. don't work at a startup if you're not into it--go work at the post office or starbucks if you're not into it you want balance in your life. For realz.

Apparently a lot of people got their panties in a knot about this one and it really just proves the point. If this offends you, you don't get it. You don't belong in a startup.... You have to get more bang for your buck so nothing is acceptable short of hiring complete rockstars.

Young, smart, ambitious people will rise to the occasion if you put them in a place where they have to step up. There are a ton of smart kids out there that love to do what they do, will work hard doing it and want to shave 5 years off their career path."

I can only add that the really smart people hire young ambitious (and smart) people, don't crap on them, and let them rise up.

Full Link:  Hiring in a startup

Tonight: Please Check Under and Between the Sofa Cushions

I usually leave these types of things to Marc Andreessen but he is currently busy beating up Jim Cramer so I'll jump in.

 

"WASHINGTON (CNN) -- Defense Secretary Robert Gates has formally ordered the Air Force, Navy and Defense Logistics Agency to conduct an inventory of all U.S. nuclear weapons and nuclear weapon-related materials to make sure all items are accounted for, according to a Pentagon memo released Thursday."

I wonder if they'd accept a simple finders keepers.... Full story here.

Widget Quote

From this morning's Venture Wire.

"The exit opportunities in social media may be reaching a peak in excitement, but there should be strong exits in the future, said Jeremy Liew, a general partner at Lightspeed Venture Partners. "At first, usage outstrips revenue. We're in that space now," Liew said. "After a certain point you can't [rely] on traffic. You have to demonstrate your ability to monetize as well." Liew, whose firm has invested in Flixster Inc. and RockYou Inc., which develop widget applications for various social networking sites, said the highest price paid for a Facebook-only application that he has seen was in the "mid single-digit millions" of dollars for an application that was a top 20 property in the space."

Full link not available as the Venture Wire stuff is behind an Iron Curtain.

Pennies

I met with a CEO in from the U.S. today.  In the morning he sent me a text message letting me know he was on the way.  When he arrived, I said, sorry about your email not working up here.  His response:

"Oh it does but when I'm travelling, I sent text messages back and forth because the cost is so much lower."

Now THAT'S a start up guy.

The Other Side of Transparency

At JLA, we try to stay out there, be at events, make the case, press the flesh, etc.  Sometimes this leads to, shall we say, misaligned expectations.

Here is a shortened and cleaned up transcript of an email exchange I've concluded:

Them:  My idea is [.....], please let me know where I come to pick up the check. Do I need to fill out any paperwork?

Me: We have a bit of a process that we use in order to determine if your investment is something we'd want to add to our portfolio. Please go to my blog at this location to learn about our process.  While you are reading that, can I get just a rough idea (email response is fine) of the market size for this, what you will charge and how much you can make over the next several years? Just a rough idea.

Them: My partner thinks we should be conservative with VC people so we think that we will make 3 million dollars a year in the fifth year.  The rest of us think he is crazy and believe 4 can be done if we get the 11 million dollars of financing it will take to build the factory.

Me:  I appreciate the numbers.  As you might know from my blog and our web site we don't actually invest in these types of things, we are more focused on [insert rick's blather].  My guess is there is probably some government programs (Sorry, Estelle) that might be interested because of your belief in creating 150 new jobs.  But, unfortunately, this isn't something we would do.

Them: I don't get it. You are a VC. You have money to invest. Your doing investments and we need money.  According to the investing laws, I'd think you'd want to do this.

Them (in mail right after the above): You've mentioned a blog several times.  What is that?

We had a nice phone call to clear all this up.  No Harm, No Foul.

Paging - Lisa Rousseau and meshEast

Attention Canada bloggers.

Could somebody who knows Lisa and the meshEast gang kindly ask them for some link love to the VC Roundtable post.  I've gotten several emails from folks asking me to do the roundtables in Moncton and Halifax which are scheduled.

I'd like to get the word out but haven't had much luck out east.  Any help would be appreciated.

And anybody know a tech blogger in Regina and/or Winnipeg?

Now back to your regularly scheduled blog.

DreamSpark: A Great Program for Students and You

Students. They are the best investment in time, money, and resources you can make when it comes to making the world a better place and, in more practical terms, getting great minds working on business problems. Your business problems.

Microsoft has announced a super program (DreamSpark) whereby students can get a full set of developer products at no charge.

From the original announcement:

 

The Microsoft DreamSpark program, available at http://channel8.msdn.com, launched in 10 11 countries - Belgium, China, Finland, France, Germany, Spain, Sweden, Switzerland, the U.K. , Canada and the U.S. For more information on the products and how the program will expand to high school students, please visit PressPass for more details.

Products: Students will be able to download any of the following software products via Channel 8:

Microsoft developer tools· Visual Studio 2005 Professional Edition· Visual Studio 2008 Professional Edition· XNA Game Studio 2.0· 12-month free membership in the XNA Creators Club
Microsoft designer tools Expression Studio, including:· Expression Web· Expression Blend· Expression Design· Expression Media
Microsoft platform resources· SQL Server 2005 Developer Edition· Windows Server, Standard Edition

Canada is right there with an announcement here. Kudos to Daniel Shaprio and my buddy Mark Relph for getting this into Canada.  And kudos to Microsoft for getting this program going especially the migration to high school students.

From that announcement:

"The program will expand in the next six months to college students in many more countries in the Americas, Asia and Europe. Microsoft DreamSpark will be expanded to include high school students by late 2008.  Upon launch, students with a valid ISIC (International Student ID Card) will be accepted.  These cards can be obtained at 132 ISIC offices across Canada. Students can find a nearby location at www.isic.org. We will be rolling out a number of other verification means over the next 12 months."

Why you should care

• Many (many!) anti-Microsoft people will say this is a response to "free" everything available on the Internet.  My response? So what.  Outside of our echo chamber, things like this are important because we need to make learning technology as friction free as possible.  I'm delighted that potentially hundreds of bright minds will be working on games, new web sites, services, etc.  They are thinking of things to do with all of this technology you and I don't even know about.
• This is your future employee/team resource pool and they are getting trained/excited on somebody else's dime.  MSFT people, cover your eyes for a minute.  If  you want to engage a bunch of students on some projects, they can sign up for this program, get the tools for free, work on it, and you aren't paying for developer tools.  There is an approximately zero chance the licensing cops will come at you.  If there is something you want to commercialize, simply use the properly licensed tools you already have via the MSDN subscription and Bob's yer uncle.  In short, this is a very good program that your company/start-up and that local educational institution can use to get more talent into the workforce; your workforce.

The download details on DreamSpark can be found on Channel8 is here.

Technorati Tags: dreamspark,microsoft,msdn,start-up help

Alec Saunders: VC Beauty Contests are Evil

My MSFT Alumni buddy, start-up fiend, Alec Saunders has a post up entitled: It’s time to abolish VC beauty contests. 

A short snippet:

"What's not to like, right?

A lot.  The model for this conference is that the VC community builds deal flow by holding a beauty contest and charging entrepreneurs to pitch.  It's a dutch date with a miser, which is a bad basis for a relationship."  

He wants VCs to knock it off and entrepreneurs to just pick up the phone and call the VC of choice for a 10 minute meeting to get the same 3 minutes of feedback for free. I agree with a couple of points that Alec is trying to make. 

The first -and most important- one is that you can pretty much do exactly as he describes. Pick up the phone and call Scott/Maxx/Joe/Roger (Growthworks), Michael/Derrick (Edgestone), Mark/Mark (Wellington), Barry/Robin (VenturesWest), Jeff (RHO Canada), Jacqui (Tech Capital), Mark/Sophie (Brightspark), others that I've missed (sorry), and yours truly.  You will almost always get a return phone call, an opportunity to explain what you do and, if it is interesting, an opportunity to meet.  Free.  With JLA, you get a 30 minutes no harm/no foul meeting plus a lovely parting gift (the VC Game: home edition).

So, in theory, you could blow off these events and take the shot.

I'd like to believe that there is more to it.  I've been told over and over that it is the networking at event like this which really matter. In addition, there are panels/discussions/sessions that also should be worth it.  While Alec isn't going to get much out of this (he knows this drill from more angles then most), others might get some good knowledge out of the sessions, find somebody to link up with, etc.

In addition, there are VC firms from other countries (like for example the big one just south of Canada) that show up. These VCs might have a bit more of a process in order for you to get to them. 

So my advice to you is to view the event in its totality. Networking, Content, Pitch Practice, etc, are all parts that you should view/weigh in your decision to sign up.

But to be clear: You can call your local VC community we will take your calls.

Technorati Tags: Alec Saunders,CIX

The Rudeness Factor

Jason has a post up at the Ask The VC entitled "Are Venture Capitalist incompetent or just inconsiderate?"

From Frank Ronchetti (a CFO in a start-up)

"Are VCs incompetent or just inconsiderate? Not all venture capitalists mind you, just the ones who solicit your proposal, read your executive summary, or even meet with you, and then you never hear another word from them. What’s up with that?"

and

"Entrepreneurs bust their butts and spend dozens of hours writing business plans, arranging investor meetings, and preparing and making presentations. Venture capital fund managers owe them the courtesy and respect of making a two-minute phone call to say, “No thank you.” "

Jason has a response that, like the whole post, you should read.

An excerpt:

"Okay, I haven’t answered your question: Are VCs incompetent or just inconsiderate? I think it’s more of the latter than the former, but ineffective communication styles, in my opinion, will eventually affect a VCs returns as reputations do matter in this business."

I agree with Jason that it certainly is mostly being inconsiderate. With email bankruptcy being some type of an excuse/pass, these days, I'm not surprised.  Like Jason/Brad, I really try to answer everything, say no fast, and re-look when somebody makes a decent case that I missed something material.  I do it for exactly the reason Jason says, reputation matters.

But you also have to have a sense of humor, right?  As I was reading Jason's post, I got this email:

---------------------------------------

From: Jay 
Sent: Monday, March 24, 2008 10:37 AM
To: Rick Segal
Cc:
Subject: Confirming on []

 

Hi Rick,

I hope you had a good Easter.  I am scheduled to fly out tomorrow as discussed to Toronto.  I wanted to confirm that we were still on for Wednesday as well as the time, I also wanted to ensure that things were moving forward on your end regarding this discussion.  Please ping me to confirm, and I will make sure we have [] available by phone. 
--
Thanks!

Best regards,

Jay

----------------------------------

I responded with:

--------------------------

From: Rick Segal
Sent: Monday, March 24, 2008 10:43 AM
To: Jay
Cc:
Subject: RE: Confirming on []

 

Typically we cancel the meetings when the person is already in the air. We leave a message at the airport saying sorry, just go home.

 

But since you asked.. Yup, we are on for Wed.

 

>R<

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