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April 04, 2009


Great post. Hopefully we can get back to figuring how to get the sub 150K market moving again.

Glad to see things (hopefully) moving in this direction! Montreal Start Up does this very well in the Montreal area, but the wider entrepreneurial community needs more of these kind of "at-bat" opportunities to make things happen.

Great post Rick! Your plan is actually well underway our here in the west. Bootup Labs is a "TechStars for Canada", with slight modifications for our environment here. Here's our deal:

1) Take money from angels, VCs, and Govt to create a micro-fund ($5M-$10M) (this is in process, but one Canadian VC has committed to $1M already) In my pitch to them, I literally used the words "Farm Team" to get my point across.

2) Based on TechStars success, we're expecting a better IRR than 0

3) The fund has no management fee because 2% on $5M isn't meaningful enough to operate.

4) Bootup Labs accepts 6 companies every 4 months, producing healthy consistent deal flow to our VC friends.

5) Companies have 8 months and $100k in cash to get some sort of traction, in exchange for 5%-15% of common stock. (depending on how much of the $100k they want)

6) During the 8 months, we match founders with world-class mentors, and pay for their legal, accounting, rent, internet, SR&ED & IRAP filing expenses

7) After 8 months, the good ones with either be funded directly by our LPs, carry on as going concern, or pack it in.

We accept applications for founders from anywhere in the US and Canada. Some will come to Vancouver just for the 8 months, and some will stay longer.

Sound like what you're thinking about?

Tungle lost me at its TOS and privacy terms.
they will process info offshore and circumvent canada's privacy laws.
Nope, don't want spam or overlords.

Hi rick, thanks for taking the time to read our TOS and privacy terms - although I am not sure you read them carefully. To make it easier for you, you can find a summary of these terms on our security page:

Here's an even shorter summary for you to digest:

1. You own and control your data.
2. We will not spam.
3. We keep your data safe.

Side note: Thank you Rick (Segal) - I hope to live up to your kind words.

Keep on Tunglin'

I can't agree with you more. You not only have to create this sort of fund so folks can get the seed money to work on some of these ideas full-time, you need to make it very easy to receive the funding. It's well known that raising money (while necessary) is not a low time investment activity.

Make it easy (and let the folks work on the business).

Rick, I’m all for it!

iNovia has invested, and we continue to invest, with and into great Canadian entrepreneurs (new & recurring), to name but a few: Garner Bornstein & Andy Nulman (Airborne), Pierre Le Lann (Tribal Nova), David Nault (Callio), Geoff Lyon & Jason Myers (Coolit), Derek Ball & Dayton Foster (Tynt), Zbigniew Barwicz (Sixtron), Ben Yoskovitz (Standout Jobs), Chris Sukornyk, Austin Hill, Pat Lor.... We also have a few great US CEO’s/Founders I must add :-).

But specifically regarding our home made entrepreneurs, the VC community can definitely do more! And as a result, see more benefits.

We didn't invest in every deals presented to us (even by a great entrepreneurs or recurring CEO) because we don't have the knowledge dept nor the resources to feel comfortable in every deal we look at. But I do believe that we need to foster our relationships and support our best entrepreneurs.

So take it for granted that we are one of the farmers!

Love it! The notion of a Farm system for entrepreneurs is why the valley and Boston (amoung others) have vital startup economies. There are no(very very few) overnight successes from these places despite what you may hear/read. If you know the people involved you learn that they are they have tried, failed and had help from supporters all along the way.

Instead of waiting for lightning to strike, your horse to come in or your numbers to match: do the hard work. Build the people, the infrastructure, relationships that will eventually deliver the hits.

Love it, Rick.

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