Ed Kang (RODC)

Over the weekend, Tobi, the founder and CEO of Shopify, discussed the major reason investors passed on Shopify in the early days : market size. I remember that financing round, & I remember having the same concern, & making the same mistake. Living in the valley & driving on 101, the billboards & logo-adorned headquarters of successful companies provide a daily infusion of all the mistakes in I’ve made in guessing how a company or a market might evolve. Years later, I listened as Bill Gurley shared his thoughts about market size. He asked himself a question : whether the startup was increasing, decreasing, or maintaining the market size? (I can’t seem to find the link - but I have it in my notes!) I added that question to my diligence list when meeting startups. Now much later, having seen many companies create categories or reinvigorate aging ones, the question I ask myself has evolved. It’s not as the market size large enough? Instead, it the question is : do we believe this company can create the market? Market size is the output of all the players marketing, selling, building. Their efforts alter, distort, & juice the supply/demand curves of macroeconomics. It’s not a given - not an output or a steady-state CAGR. Often it’s the startups that engender the demand, change the market dynamics, & make markets massive by taking risks with products. When done right, these founders create category-defining businesses like Shopify (now worth $90b)!

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Would you move your startup for $10+ million benefit + 50% ish cap gains tax to the 🇺🇲? I did it before, why not again? #SiliconValley "Budget capital gains changes are a tipping point for Canadian #startups: survey." MaRS Discovery District, Communitech, Invest Ottawa survey of #Entrepreneurs and Founders. Canada is a great place to incubate companies with a huge quantity of early stage private and public capital and terrific policy support. So why go anywhere else as a founder once you have incubated in such a great place for entrepreneurs? #capitalgains, capital gains, capital gains. That's what this video is about. Thank you to Krista Jones and Christine Bomé and all my friends at MaRS DD for leading from the front. This survey gave me hope that Canada will once more be able to be an innovation champion. Please read the survey! https://lnkd.in/gqMm6yu7

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It’s a weird time for entrepreneurship in Canada right now. As you know from this podcast, BDC has a report noting 100,000 fewer entrepreneurs in Canada now compared to 2000. “When you think about that shark American ethos, playing to win … but then also having the Canadian kindness, I think that’s where Canada and Canadians have a really big opportunity.” Rachel Zimmer, Simple Ventures CEO. And there are a lot of things in Canada that you want but simply can’t get. Things available in the rest of the world but not here, for a variety of reasons. So some Canadian tech leaders are stepping up to fill the gaps with a new venture studio, Simple Ventures. Co-founded by Rachel Zimmer, formerly of 5Crowd, and Michael Katchen, currently of Wealthsimple, and backed by a bunch of other names you might be familiar with: Shopify president Harley Finkelstein, Knix CEO and founder Joanna Griffiths, and Ada CEO Mike Murchison. https://lnkd.in/g8Rnvj_c

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Canada might be 1/10th the size of the US population, but Canadians still deploy capital into startups, but at 1/25th the rate of the US. If you're a Canadian founder you should meet some notable Toronto venture capitalists, ready to back your journey! 1. Relay Ventures-ventures Focus: Pre-Seed and Seed Stage Ventures Sector: Urbantech, Proptech, Fintech, Sportstech Top Portcos: Boomerang, Bird, Ecobee 2. Real Ventures Focus: Early-Stage Ventures Sector: Tech Enabled Businesses Top Portcos: Mejuri, Integrate AI, Unbounce 3. Radical Ventures Focus: Early Stage Ventures Sector: Artificial Intelligence, Disruptive tech Top Portcos: BirchAI, RoadBotics, Nabla Bio 4. Golden Ventures Focus: Seed Ventures Sector: Agnostic Top Portcos: ApplyBoard, Yesware, tacked 5. Alate Partners Sector: Real Estate, PropTech Top Portcos: Bird, Altrio, PadSplit 6. iGan Partners Focus: Seed Ventures Sector: Digital Health and MedTech Top Portcos: Meta, Akira, Think Research 7. Whitecap Venture Partners Focus: Seed and Series A Ventures Sector: B2B software and Med Tech Top Portcos: GoBolt, Real Matters, Clearwater 8. Ripple Ventures Sector: B2B Software Top Portcos: Wisely, Artemis, Plannuh 9. Loyal VC Sector: Tech Enabled Businesses Top Portcos: MyTM, ZestIOT, Avant Meats, BetaStore 10. Portage Focus: Seed to Series C Ventures Sector: Fintech Top Portcos: KOHO Financial, Albert, League, Clark Ready to connect with the perfect investor for your startup? Drop “LIST” in the comments, and I’ll tailor a personalized investor lineup just for you. Who’s your favorite VC firm in Toronto? Give them a shoutout in the comments! At Thunder.vc, we specialize in matching your fintech startup with venture capital firms that align with your sector, growth stage, and goals. Let’s find the right partner to fuel your growth!

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The AI hype bubble is almost over. When investors refused to fund new AI startups because they know they’re going to fail, then the AI hype bubble is starting to fail. Even the most clueless, Investors now know that this is a bubble waiting to burst like the metaverse bubble and the dotcom bubble. And nobody wants to be left, holding the back on this bubble. The era of free money iis over with interest rates sky high. When big tech companies are losing money on AI and the bigger AI startups are demonstrating that they are all dead and struggling to even have revenue, then no one is interested in funding, smaller AI startups that they don’t believe will be profitable anytime soon. People aren’t waiting for an AI unicorn to break out. They are waiting for Microsoft, Google, Amazon, and similar to start buying distressed AI startups. Collapsing companies and minimal paths to profitability doesn’t help a space that was already overhyped. Don’t forget in all this mess that the unfortunate reality is that engagement and retention don’t match installs and downloads. What I mean by this is the most basic of mobile tracking were ignored. You don’t judge success in the mobile market based on downloads or installs, but rather based on retention and engagement. What this means is, it’s not actually impressive for OpenAI to get to 100 million users quickly if 2% of them retain. The question is not how many people signed up for a free account. The question is how many monthly active users and daily active users do AI startups like OpenAI, Anthropic, Perplexity, Stability, and others have. And how many are paying customers? And what we are finding is that retention is in low single digits. The reality is that AI startups are getting users the way that mobile free to play did. And they haven’t found a way to actually make money on that. Don’t ask an AI startup how many users signed up. Ask them how many DAUs and MAUs they have. Ask them what their ARPDAU is. What you will find is that every number is low. AI startups have no idea how to do monetization, and they don��t have regular active users in any volume. What this points to is that they’re all going to fold or get bought.

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Try more things. Fail more often. Learn faster. Burn brighter. Plant more gardens. Launch more startups. Make more babies. Build more community. Help others do the same. This is effective opportunism. Pronoia & Purpose. E/opp is a better meme than Hiis. Just as inspiring, but more secular. Gender neutral vs. male-coded. More conjectural, less prophetic. E/opp is building & growing your mind & body. Building & growing startups. Building & growing families & communities. Effective Opportunism.

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Today at Antler VC Toronto, we had Michael Kravshik, CPA, CA, the founder of LumiQ come speak to us. The cohort is in week 5 of the 10-week residency. We’re still very much in the process of solidifying our cofounders and searching for product market fit. So Michael’s speech was timely, informative, and inspirational. Here were my key take-aways. 𝐎𝐧 𝐟𝐢𝐧𝐝𝐢𝐧𝐠 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐦𝐚𝐫𝐤𝐞𝐭 𝐟𝐢𝐭  🔸 Ideas don’t matter, the iterative test approach does; it’s more painful in the present but saves you lots of time in the future 🔸 Start with really broad assumptions, start validating those broad ideas, and then through the process of speaking to customers to get to the really narrow concepts 🔸 At one point Michael and his co-founder went through invalidating 25 ideas, which would seem discouraging but they grew and developed a lot through this process (even though they didn’t know it at the time) 🔸 At one point they did a mind-boggling 500 one-on-one interviews in the span of 6 weeks 🔸 The only sustainable advantage you can in a startup is knowing your customer better than anyone else 🔸 PMF is a moving target 🔸 PMF is treated as a verb at LumiQ 𝐀𝐝𝐯𝐢𝐜𝐞 𝐅𝐨𝐫 𝐅𝐨𝐮𝐧𝐝𝐞𝐫𝐬 🔸 Be curious, open-minded, and be willing to kill your babies 🔸 If you keep going, you will eventually create your own luck 🔸 Lots of people get stuck in sunk-cost fallacy land, but you should listen to your gut and pivot when it doesn’t feel right 🔸 Founders have a reputation for being like cockroaches, and rightfully so, shamelessness can take one quite far I also asked Michael during the QA on what his emotionally compelling reason was for overcoming so many challenges to get the company to where it is today, and his answer was really insightful and relatable. He said that 𝐛𝐞𝐢𝐧𝐠 𝐚 𝐟𝐨𝐮𝐧𝐝𝐞𝐫 𝐢𝐬 𝐚 𝐥𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞 𝐜𝐡𝐨𝐢𝐜𝐞, 𝐧𝐨𝐭 𝐚 𝐜𝐚𝐫𝐞𝐞𝐫 𝐜𝐡𝐨𝐢𝐜𝐞. Furthermore, if you’re not crazy AND stupid you probably shouldn’t do this! Thanks for bestowing your wisdom on us Michael Kravshik, CPA, CA and I hope I captured your words and sentiments correctly! 😃 #startups

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Seamlessly integrating multiple income streams into your business is easier said than done…. ….Until Now! The M2 Affiliate Program gives you the ability to take up as many income streams as you’d like, while maintaining ONE funnel and marketing approach that we handle for you! No more trying to figure out how to avoid confusing your audience because you have different resources to offer them. Come check it out for yourself - and take the Christian Connector Assessment to see it in action 🎬

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Back-to-back 1:1 pitches from founders filled my schedule. Here’s a piece of advice from someone who’s been in the trenches for over 20 years, scaled businesses to over $100M, and has seen a plethora of pitches: Founders, please rehearse your pitch until it's second nature. In my experience, 90% of the 30-minute meetings were spent trying to decipher what the business actually does. Founders, this isn't just about securing investment; it's about refining your vision and articulating it with passion and precision. The good news? It’s surprisingly easy to stand out with a clear, concise, and compelling pitch. And remember, the journey is just as important as the destination. Enjoy the process!

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Strong cash position + no debt + profitable business = controlling your destiny. Add growth and you have real value creation in normalized market conditions. This is true regardless of company size, industry, public or private. Simple financial goals can help focus the mind.

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Work Ethic Levels 💼🔥 #Entrepreneurship #Grind 💊 The pivotal role of work ethic in achieving success, categorizing it into three levels: part-timer, full-timer, and all-timer. Here’s your roadmap for success and personal growth: 1. **Assess Your Commitment:** Identify whether you are a part-timer, full-timer, or all-timer in your work ethic. 2. **Set Clear Goals:** Define your objectives and pursue them relentlessly. 3. **Embrace Challenges:** Turn obstacles into opportunities for growth. 4. **Cultivate a Strong Mindset:** Believe in your abilities and maintain a positive outlook. 5. **Strive for Improvement:** Always aim to improve and never settle for mediocrity. 6. **Positive Environment:** Surround yourself with positive influences and avoid negativity. 7. **Celebrate and Learn:** Rejoice in your successes and learn from your failures. Let’s elevate our work ethic and achieve greatness! 💼🔥 #Entrepreneurship #Grind #SuccessMindset #PersonalGrowth

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21 Ways to Kill Your Company Day 9: Poor Fundraising Strategy This means two things - be realistic about the benchmarks you need to unlock your next raise and then raise enough money to hit those milestones. Be great (and realistic) with financial planning. Don't forget those extra five months you typically need to raise. #21waystokillyourcompany #fundraising #venturecapital

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Founders - how long can you hold on to the selling motion at your startup? You may be surprised that founder-led sales is extending well beyond what it used to. I have talked to companies that have gotten to 2, 3, 4 even $10m in revenue on the back of founder-led sales 🤯 To me, this may or may not be a sign of product market fit, but it is the sign of our current economic climate. The further you can take things on your own, the better suited you are long term. I will say though, the founders that are getting to $5m+ in revenue by themselves have a clear process and structure in place to get them there. Do you have the structure and process in place to get you beyond $5m in revenue as a founder? Happy to chat to see if you are prepared to make that happen - you know where to find me Keep crushing it out there 🤙

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Building a website can be painful. There are so many things to think about: -What do customers / prospects want? -How to articulate the value proposition and services? -How to nail the 'language-market fit'? -What's the offer and call to action? It's impossible to do alone. A refreshed Rise to Zero website launches today that underscores my focus on helping cleantech and circular businesses gain traction, get customers and raise money. Many thanks to the people who made it happen: John Hotts for design. Patrick Schroen for technology support. Also, thanks to my ongoing support network: Nancy Konopinsky, Virginia Brailey, Joanna Track, Blaine Pearson, Tara McCarthy, Kat Lourenco, Marc Pocobelli, Christi Mertens, Elizabeth Heggie, Karen Ward, Eric Yeung, MBA, Arif Merchant and many, many others for your ongoing support and counsel. The site was built by John in Webflow. GreenGeeks for green hosting. Up with clean businesses and companies transitioning to reduce their impact. https://risetozero.co/

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A job title every startup should have: FIO “Figure It Out” When building Health Warrior, my partners Nick, Shane, and I wanted to hire an FIO. Starting a company from scratch means having a laundry list of tasks and no handbook or SOPs. It’s up to leaders to navigate the unknowns, but an FIO would be a game changer. The most decorated resumes (degrees, certifications, experience) won’t get you where a figure-it-outer will in a startup environment. They have the dedication, passion, and grit to do the hard work that drives the company forward. Here’s what the job description would look like: 𝗧𝗶𝘁𝗹𝗲: 𝗙𝗜𝗢 “𝗙𝗶𝗴𝘂𝗿𝗲 𝗜𝘁 𝗢𝘂𝘁” ISO of a hungry, scrappy team member to help build and scale a new company. 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀: • Climb any mountain • Work any hour • Make any call or email 𝗦𝗸𝗶𝗹𝗹𝘀: • Creative • Ambitious • Resourceful (in other words: will just freaking figure it out!) That’s about it – no job is too big or too small. No request is too outlandish. The FIO would be a phenomenal growth opportunity for anyone looking to build credibility and relationships with leaders in a new industry. Sure, strong executive teams – CEOs, CMOs, and CFOs – are invaluable. An FIO? They could take a startup to the next level.

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My quick post a few days ago about solo-preneurship has racked up 570,000 impressions so far! A lot of people are looking for alternative career paths. Although the personal freedom that comes with self-employment is liberating, it's not for everyone. Some things to consider before heading down that path: - You're on your own for health insurance, life insurance, retirement savings, Medicare and Social Security contributions, tax withholding, and any other benefits a traditional employer might provide. These expenses can be huge. - You can never really take a vacation. If your customers or clients need something, you still need to be responsive. - There are about a million ways for it to not work out. I'm not sure that's much different from a traditional tech job these days. But it's important to keep a financial safety cushion in place, because nobody's going to give you a severance package if your business dries up. - You can't specialize in one thing or just write code all day. You need to find new customers or clients, deal with ongoing accounting and legal obligations, come up with new product ideas, and potentially manage outside contractors. You need to be comfortable with those challenges. - You must be self-motivated. No manager is going to make sure you remain focused and productive, and working on the right things. It's totally up to you. - It can be lonely. If you thrive on being surrounded by other people in a conventional workplace, you won't be happy working solo. If you have the skillset, experience, personality, and grit to make it work, solo-preneurship can transform your life in ways you never imagined. But it ain't for everyone!

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