Randall Howard

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5 Mar 2023

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Adrenaline Fund Continues to Power Early Stage Ecosystem in 2022

Adrenaline Fund marks its second full year of investing as it completed its 2022 Vintage. Adrenaline Fund, was founded in 2020 as part of the multi-fund Archangel Network of Funds, uniquely applies a hyper efficient passive model, fuelled by our startup and angel ecosystem, to early stage investing. .

We are fuelled by a  remarkable group of Limited Partners who are accredited investors interested in our Purpose and coupled with the high return prospects delivered via a highly diversified portfolio

PURPOSE

The entire team at Archangel Network of Funds, and the Adrenaline Fund, is driven by a core Purpose, developed over years of building and supporting early-stage companies. In a nutshell, we want to directly impact Canada’s economic prosperity into the future by:

  • Investing in Entrepreneurs who are building the future of the Canadian Economy through Innovation,
  • Lowering barriers for accredited investors to participate in, and gain more experience, in early stage investing, and
  • Accelerating, and directly supporting, the Canadian Angel ecosystem while enabling Canadian startups to scale up to global leadership.

In this post, I’ll further explore our unique model, an exceptional team, what we’ve done so far, and propose a future where this impact can grow many times larger than our results to date.

TEAM

The Adrenaline Fund team has unparallelled experience in building companies, mentoring startups and selecting and investing in the next generation of Canada’s tech leaders but at the early stages. In addition to myself, our team includes Benton Leong and Amber French, and is ably complemented by Venture Partners  Mike Janzen and Althea Wishloff.

Archangel Network of Funds TeamThe Archangel Network of Funds model involves a team with even greater breadth, many of whom are pictured above. Years of strategic business leadership, coupled with some of the most sophisticated selection and investment savvy, are a big part of what makes Adrenaline unique.

PORTFOLIO

The 2022 vintage portfolio, reflecting a broad diversity of sectors and stages, comprises 10 great companies:

  • Technology: 3
  • Medical Technology: 4
  • Industry 4.0: 2
  • Climate: 1

They join the 10 companies already in our 2021 Vintage, and listed in our post describing the results of our 2021 Adrenaline Vintage: Adrenaline Fund Pumps a High Energy First Year into Early Stage Investing.

We are excited to welcome the following companies to our Adrenaline Fund portfolio, reflecting the powerful value-adds of the Angel Ecosystem we support:

eleven-x
enables smart communities and organizations to leverage IoT with powerful sensor-based platform.
HTUO
develops advanced molecular simulation to enable drug design through fusing chemistry, physics and AI-based computer modelling
LabsCubed
smart manufacturing company that has developed automated lab equipment and smart software to perform material tensile and tear testing
COSM Medical
creating digital gynecology to allow clinicians by modernizing care for women suffering from an underserved and stigmatized women’s health issue
Catalyst Entertainment Technology
fuses virtual reality to real world entertainment experiences
Carbonhound
delivers an engaging carbon measurement platform to empower organizations to a more sustainable future
Nicoya
delivers microfluidics SPR diagnostic testing directly to the lab benchtop
Loop Financial
fintech delivering business banking for global companies
Kritik_Logo Kritik with TAJAWAL #4D4D4D font
a peer-grading platform enabling a new era of education
QidniLabs
delivering a breakthrough in kidney dialysis by making it ultra portable.

MODEL AND WHY IT WORKS

As mentioned, we believe that the Adrenaline Fund model and thesis is unique in Canada, by fusing the power of a passive approach (like an ETF in the public markets) to the early-stage Angel investment ecosystem.

First of all, the investment decision is designed to support the existing Angel ecosystem through a set of rules to govern the investment process. At a high level, the Rules, shared with LPs, stay largely the same but are tuned in response to changes in the ecosystem. Thus, rather than active decisions, the focus is on tuning the rules and working to ensure that the angel and startup ecosystem remain of high value.

A colleague questioned the wisdom of, such a “blind investment process”, suggesting it is a bit crazy and perhaps akin to wagering on slot machines. Nothing could be further from the truth. The secret sauce of Adrenaline is the collective value-add of the ‘qualified lead investors’ who mentor and provide ongoing strategic oversight (e.g. as a board member or board observer).

In fact, research by Brian Smith, Professor of Entrepreneurship and Finance at Wilfrid Laurier University along with global tech investment trends studied by BDC Ventures, shows an almost 25 times multiplier of success for such angel-backed companies. In summary, in generating larger ‘Scale Up’ companies (with valuations reaching US$250M), Canada has a dismal 0.3% track record (or 1 in 300) compared to the 2.5% that reach that scale in the US (or 1 in 40). Within the Angel ecosystem, specifically GTAN where the study was conducted, an amazing 8% of investee companies reached the $250M threshold. Unpacking the reasons for this incredible out-performance would include factors like: the GTAN selection process, the ongoing value-adds of experienced ‘deal leads’, the strength of the Toronto-Waterloo Tech Corridor ecosystem where GTAN focuses, and syndication with other capable seed/angel stage investment funds.

Further, he model is structured to be open and accessible to the greatest number of Accredited Investors by having the aggregate investment staged over 5 equal annual cash instalments (say $250,000 at $50,000 per year). Since the fund is structured to segregate ‘Vintage Years’, and each Vintage aims to invest in 9-10 companies per year, this ensures a diversified portfolio of about 50 companies at an extremely affordable entry point. The Vintage structure allows new LPs to join once at the beginning of each year, thus growing the maximum amount of each Adrenaline investment and helping startups even more.

Most importantly, the fund attracts investments from individuals new to  angel investing since it provides a simple and time efficient path potentially learn more. Quite simply, we are unlocking new capital to support Canadian innovation.

JOIN US

The Adrenaline team are pleased with the continued validation of passive, rules-based model for building a top early stage fund, and excited as we work to add our next 10 great companies to the portfolio during 2023.

Feel free to reach out to any of us to learn more and get involved. We’d love to have you on board.

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3 Jan 2022

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Adrenaline Fund Pumps a High Energy First Year into Early Stage Investing

2021 marks the first full investment year for Adrenaline Fund which uniquely applies a passive model, fuelled by our startup and angel ecosystem, to early stage investing. Adrenaline Fund was founded in 2020 in cooperation with 2 other sub-funds in the Archangel Network of Funds. Through the vagaries of. the COVID-19 pandemic, 2021. was our first full year of investing fuelled by a remarkable group of Limited Partners who are accredited investors interested in our Purpose.

PURPOSE

The entire team at Archangel Network of Funds, and the Adrenaline Fund, is driven by a core Purpose, developed over years of building and supporting early-stage companies. In a nutshell, we want to directly impact Canada’s economic prosperity into the future by:

  • Investing in Entrepreneurs who are building the future of the Canadian Economy through Innovation,
  • Lowering barriers for accredited investors to participate in, and gain more experience, in early stage investing, and
  • Accelerating, and directly supporting, the Canadian Angel ecosystem while enabling Canadian startups to scale up to global leadership.

In this post, I’ll further explore our unique model, an exceptional team, what we’ve done so far, and propose a future where this impact can grow many times larger than our results to date.

TEAM

The Adrenaline Fund team has unparallelled experience in building companies, mentoring startups and selecting and investing in the next generation of Canada’s tech leaders but at the early stages. In addition to myself, our team includes Benton Leong and Amber French, and is ably complemented by Venture Partner Danielle Graham and the large Archangel Network of Funds team, many of whom are pictured above. Years of strategic business leadership, coupled with some of the most sophisticated selection and investment savvy, are a big part of what makes Adrenaline unique.

MODEL AND WHY IT WORKS

As mentioned, we believe that the Adrenaline Fund model and thesis is unique, at least in Canada, by fusing the power of a passive approach (like an ETF in the public markets) to the early-stage Angel investment ecosystem.

First of all, the investment decision is designed to support the existing Angel ecosystem through a set of rules to govern the investment process. At a high level, the Rules, shared with LPs, stay largely the same but are tuned in response to changes in. the ecosystem. Thus, rather than active decisions, the focus is on tuning the rules and working to ensure that the angel and startup ecosystem remain of high value.

In case some of you think, like a colleague initially did, that such a “blind investment process” is a bit crazy and perhaps akin to wagering on slot machines, nothing could be further from the truth. The secret sauce of Adrenaline is the collective value-add of the ‘qualified lead investors’ who mentor and provide ongoing strategic oversight (e.g. as a board member or board observer).

In fact, research by Brian Smith, Professor of Entrepreneurship and Finance at Wilfrid Laurier University along with global tech investment trends studied by BDC Ventures, shows an almost 25 times multiplier of success for such angel-backed companies. In summary, in generating larger ‘Scale Up’ companies (with valuations reaching US$250M), Canada has a dismal 0.3% track record (or 1 in 300) compared to the 2.5% number for the us (or 1 in 40). Within the Angel ecosystem, specifically GTAN where the study was conducted, an amazing 8% of investee companies reached the $250M threshold. Unpacking the reasons for this incredible out-performance would include factors like: the GTAN selection process, the ongoing value-adds of experienced ‘deal leads’, the strength of the ecosystem support in the Toronto-Waterloo Tech Corridor where GTAN focuses, and syndication with other capable seed/angel stage investment funds.

The bottom line is that, while adding the energy of investment to an existing process that works, Adrenaline Fund is set up for success.

Further, he model is structured to be open and accessible to the greatest number of Accredited Investors by having the aggregate investment staged over 5 equal annual cash instalments (say $250,000 at $50,000 per year). Since the fund is structured to segregate ‘Vintage Years’, and each Vintage aims to invest in 8-10 companies per year, this ensures a diversified portfolio of 40-50 companies at an extremely affordable entry point. The Vintage structure allows new LPs to join once at the beginning of each year, thus growing the maximum amount of each Adrenaline investment and helping startups even more.

Most importantly, the fund attracts investments from individuals who had never been angel investors since it provides deal flow and deal structure for new investors. In other words, we are unlocking new capital to support Canadian innovation.

PORTFOLIO

Our portfolio reflects the diversity of innovation in 2021, transcending the software and consumer focus of a decade ago, with more and more patentable intellectual property and deep tech. The 2021 vintage portfolio comprises:

  • Technology: 5 [Enterprise SaaS (2), Fintech (1) AI/ML (2)]
  • Medical Technology: 4, includes Advanced Materials
  • Industry 4.0: 1,includes Networking and IoT

We are excited to welcome the following companies as our first Adrenaline Fund vintage, reflecting the powerful value-adds of the Angel Ecosystem we support:

CheetahNetworks Logo
delivers visibility into the Quality of Experience (QoE) of machines and people at the edge of the network. Their PulseViewTM Solution provides operators of public and private networks with actionable, real-time IoT network analytics.
Collide Logo
decision facilitation software helps teams make better decisions together, particularly in remote-first and hybrid work environments.
DarwinAI Logo
artificial intelligence company that has developed Explainable AI (XAI), a technology that uniquely analyzes data and models to optimize automation and human- in-the-loop decision making in real-world enterprises.
EAIgle Logo
artificial intelligence company that has developed Explainable AI (XAI), a technology that uniquely analyzes data and models to optimize automation and human- in-the-loop decision making in real-world enterprises.
Forcen Logo
Developed Prelivia, an FDA approved technology that promotes healthy blood circulation and tissue oxygenation for those who are bed ridden or chair bound.
Kenota Health Logo
decentralizing allergy testing with a proprietary approach that employs rapid, point of care instrumentation.
Mesosil
produces responsive antimicrobial advanced material to prevent infection at the medical device-tissue interface for the dental industry
Rehabtronics Logo
developed a digital “sense of touch” for the most demanding surgical robotic, industrial robotic/automation, and defense/aerospace sectors
SparcPay Logo
intech firm delivering integrated, AI enabled payment solutions to small business
Wavy Logo
culture management platform for flexible teams. Wavy’s digital market place allows users to create, manage, and book experiences for groups of people
Amber, Benton and I are pleased with the successful validation of our passive, rules-based model for Adrenaline Fund and are excited for how this will grow in 2022 and beyond.

Feel free to reach out to any of us to learn more and get involved. We’d love to have you on board.

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24 Sep 2021

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A Personal Carbon Reduction Plan

Today is a Global Climate Strike in cities and towns all over the world. In late 2019, was a crescendo of activity including the first Global Climate Strike and UN Climate Summit. It feels almost like time, and action, has been paused by the COVID-19 pandemic. Now in late 2021 marks a return to that pivotal time. With a summer of extreme weather events including the most wildfires ever globally, we are entering a cycle including COP26 in Glasgow. And, for those of us who are boomers, the fact that these climate strikes are led by our youth and children, should add poignancy to the state of the world we have bequeathed the next generation.

As a society and as thoughtful citizens, how can we respond? Thinking beyond surviving the worst pandemic the rich world has experienced in our lifetimes, this is the perfect time to set priorities and make life plans and we must include addressing the greatest existential crisis challenging humanity and the world we live in.

Everywhere the sense of urgency has increased. Scientific models show that the amount of carbon we can pump into the atmosphere must be limited if we are to keep to an increase of between 1.5°C to 2.0°C, which already will be a much changed earth. This remaining capacity to emit carbon, also known as our Carbon Budget, is shrinking rapidly. Hence, each year that passes, such as between 2019 and now, means that living within this carbon budget requires more drastic action and at a much faster pace.

I strongly encourage everyone to take their own personal actions. They are so important to signal to others that the Climate Crisis is serious and to help mobilize action.

Systems Change

Personal actions will never be sufficient. We also need local, regional, country-wide and global systems change to accompany our personal actions. This might be described as re-jigging our long held systems of regulation, taxation and even the incentives in our market economy. In effect, we may be re-writing the rules of capitalism itself. Examples of this include:

  • Setting a sufficiently meaningful price on carbon to give monetary incentives that nudge business and personal decisions and purchases toward a carbon neutral world.
  • Ensuring that this carbon price is revenue neutral and doesn’t fall unduly on the less wealthy portions of society.
  • To ensure that carbon pricing is fair to local industry, a key measure needs to be adopted. Border Carbon Adjustments ensure that the product, say, manufactured in China with coal fired electricity and inefficiently shipped, has a much higher price because of all that carbon used.
  • Completely removing existing fossil fuel subsidies which the IMF estimates to be an incredible US$4.7 Trillion globally or 6.3% of GDP. Even more surprising, they continue to grow. In Canada, our fossil fuel subsidies grew to CAD$18 billion in 2020. These subsidies are perverse, acting like a reverse carbon price, often nullifying the other actions taken.
  • Related to fossil fuel subsidies, we need to pressure financial institutions to stop financing the fossil fuel industry. In Canada alone, our big 5 banks financed an incredible CAD$137 billion in 2020, a figure that grew 50% over 2019.

We must keep up the pressure on our elected officials of all political stripes. While we are doing this, here are my thoughts on personal actions we can take. Its a complex topic, but by breaking into down into more digestible chunks, a seemingly intractable problem moves closer to solution. Here are the major categories I use, and note that I will provide further commentary on each in following posts:

Residential

Being a northern nation with really cold winters, means that our homes consume a lot of energy which can be between 20- 25% of our personal carbon footprints. In most of Canada, it takes a lot of energy for home heating as well as cooling and domestic hot water. We also use loads of energy for cooking, laundry, home entertainment, lighting and more.

While we can, and should, reduce our energy and electrical load through active management of our device choices and lifestyle, the biggest gains come from making our homes inherently more efficient.

I am currently designing and building such a sustainable, carbon zero (or negative) home in part to show a direction for the coming years. I hope that this will lead to real insights to help future homes be more sustainable, even the average house.

Of course, most homes aren’t new but have been around for 20, 30, 50 or even over 100 years. Retrofits of those homes are an important part of the mix. Audits against the Energuide for Houses standard help determine both your home’s energy rating, but to help define a path forward. Combing this with systems change, through financing or even property tax abatement to encourage this trend, is clearly the way forward. Systems change that encourages individual action is key. Even the august Conference Board of Canada has published a policy recommendation Green Homes: Sustainable Finance for Residential Retrofits. We can only hope that the appropriate levels of government are spurred into action.

Transportation

Personal transportation may represent over 30% of our personal carbon footprint. Note that I am, somewhat arbitrarily assigning logistics and freight to produce and deliver goods to us into the personal Consumption category below. While we can work to reduce our footprints by living in compact cities with lots of walking and bicycling, this does not work for all. The largest component is the electrification of transportation represented by the acceleration of the move from legacy ICE (Internal Combustion Engine) vehicles to EVs (Electric Vehicles). We are also starting to see this trend in small trucks and eventually event transport trucks. Beyond cars, I make several suggestions:

  • Public Transit – try to take public transit as much as possible to reduce congestion, whether streetcars (trams), buses, subways or commuter trains. Beyond the reduced footprint from shared vehicles (sort of like a giant carpool) most of these modes of transportation are electric or moving in that direction.
  • Commercial Aviation – This is a key target of activists like Greta Thunberg who refuse to fly (see ‘flygskam‘) there is no question that flying is a growing source of personal carbon footprint. Consider reducing your use of flying, and for those trips you must take, you are strongly encouraged to purchase carbon offsets (see below).
  • Taxis and Carsharing – Again, you are strongly encouraged to purchase Carbon Offsets for the kilometres you travel in taxis. Until the pandemic, Lyft (and not Uber) purchased carbon offsets automatically. Although that has been cut, they are committed to more EVs and even have ‘Green Mode’ in some cities which are electric vehicles. You wise choices do make a difference.
  • Carbon Offsets – There are many carbon footprint calculators you can use, for example to offset air travel or other transportation. As I shifted from ICE to EV vehicles, the amount I have to offset is reduced. A good place to start is Carbon Zero and I would recommend choosing local projects that you can better understand when you purchase offsets. And perhaps tell others via social media what you are doing to help educate more people. Another more grassroots approach is to support the urban forest, which is a great carbon sink. Check out Tree Trust which is available in an increasing number of Ontario communities.

Consumption

The old adage of ‘Reduce, Re-use, Recycle’, and in that order, remains true even now. We live in a society where consumption, beyond any real need, has taken hold. And, it is harder to buy quality products that last – witness of the incredibly ugly footprint caused by the trend to ‘Fast Fashion’.

Another aspect to consumption is excess packaging, much of which is made from plastics. Plastics pose enormous problems to our biosphere and in particular the oceans and so reducing or eliminating single use plastics is an urgent need. Further, most plastics are made from oil and hence are another form of fossil fuel consumption. I will soon write a ‘top 10’ list for ways to reduce your personal plastic and packaging footprint – which directly reduces your carbon footprint.

I hope that this provides a high level roadmap to both personal action, but also where public policy needs to go. Of course, it over simplifies a fiendishly complicated topic. At the same time, by dissecting de-carbonization I can only hope that it inspires action, at both a personal and government level.

 

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10 Jan 2018

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Environmental Awakening Fusing of Science, The Arts and Sea Ice

Even though a life-long environmentalist, my transformative experiences up north in Canada’s Arctic regions onboard Canada C3, moved my environmental consciousness to a whole new level.
 
My own journey began as a teenager in the 1960s. Being a voracious reader with a strong scientific bent, was a perfect fit for me to embrace the fledging environmental consciousness of that era.
 
Clearly the changes during the last half century have matured my environmental world view. An early focus on simple industrial pollution was followed by the even more serious concerns about depletion of the Ozone Layer and energy conservation, building into today’s crisis of the growing impact of human-induced Climate Change. What this passage of time, accompanied by deepening adverse impacts, has taught me is that small individual actions can have huge collective impact, and that concerted efforts to change can be successful. Sadly, for many, this simple concept is abstract allowing some to pass the buck on personal action, seeing it as someone else’s responsibility. Economists even have a label for this metaphoric “fiddling while Rome burns”, namely the Tragedy of the Commons.
 
Many despair that our continued procrastination on mobilizing concerted action around Climate Change. whether based on apathy and misinformation, puts the entire human race at risk. For humanity, there is a huge risk we are too late to reverse the escalating levels of carbon in the atmosphere. Although time is short, I remain committed to immediate action. In an inspiring contrast to this societal apathy, I was immensely privileged to experience the Arctic with an unbelievably diverse and passionate group of change makers last summer.
Noel Alfonso, Ichthyologist
Noel Alfonso, Ichthyologist
Ewan Affeck, Medical Informatics
Ewan Affeck, Medical Informatics
Grant Gilchrist, Sea Bird Researcher
Grant Gilchrist, Sea Bird Researcher

The Canada C3 expedition had myriad program elements, including being an ideal platform for science. In all, over 25 major scientific experiments took advantage of circumnavigating Canada’s coastline, the longest in the world, with much of that in Arctic waters. The experiments, a collaboration with major research institutes across Canada, gathered much needed baseline data such as:

  • detailed monitoring of increasing levels of micro-plastics which are becoming a major component of the biomass in all oceans. Consider the micro-plastics you now potentially ingest when you eat seafood.
  • DNA testing to determine the range of various ocean species and examine biodiversity.
  • Sampling plant species range and diversity.
  • Cataloguing Mites and other insect species.
  • Studying the emergence of the Pizzly Bear, or Grolar, an unusual hybrid enabled by habit shifts due to climate change.
  • Studying range and challenges of sea birds, again through climate change and human activity.

While none of these experiments were directly studying atmospheric carbon or climate directly, all exhibit the effects of these huge changes. That the Arctic is disproportionately impacted by climate change was directly visible to all participants. The temperature changes seen in polar regions are 3 times what we experience in the south, with our recent 1°C increase being more like 3°C up north. Thus, the Arctic  is a harbinger of our own unmitigated climate future, making the Inuit ideal spokespeople to warn the rest of the world.

 

Vicki Sahanatien, Wildlife Ecology
Vicki Sahanatien, Wildlife Ecology
Bianca Perren, Paleoclimatologist
Bianca Perren, Paleoclimatologist
Boris Worm & Heike Lotze, Marine Biologists
Boris Worm & Heike Lotze, Marine Biologists

One of the great challenges faced by scientists is how share their stories in our modern, digital world in which a cacophony of voices clamber for our finite attention. The scientific method, honed over centuries, demands:

  • A slow and deliberate process of discovery, given to evaluating conjectures — hence it may take years before the findings of the science projects on Canada C3 can be shared.
  • A process favouring the probability of truth over certainty — makes it hard for scientists to metaphorically pound the table, which often puts scientific theories at a disadvantage to the general public who have no issue with asserting the truth of their, clearly less informed or even misinformed, statements.
Mark Graham, Chief Scientist
Mark Graham, Chief Scientist
Jess Jawanda, Ocean Scientist
Jess Jawanda, Ocean Scientist

Thus, in communicating their knowledge, the challenge for scientists isn’t so much that they are the introverts of popular culture nor entirely that the science is perceived as dry and academic. In my many dialogues with scientists, the issue of finding new ways to communicate the important knowledge they possess to a populist audience, was a common lament. Scientists are ever searching to find new ways to help humanity truly understand their most portentous issues, such as Climate Change.

In this video, below, you can see one amazing scientist, Bianca Perren, explaining the tabular iceberg (see photos at the top of this article) that we saw when we came toward land from the Davis Strait. Bianca, being a painter, educator and Zodiac driver on top of her work as a palæoclimatologist and quarternary scentist at the British Antarctic Survey, is sending an emotionally powerful message about the last ice shelfs remaining in the Arctic. By the way, she also makes a cameo appearance in Al Gore’s recent film, An Inconvenient Sequel during work at Swiss Camp in Greenland.

Leveraging the incredible wealth of scientific talent, the wonderfully diverse set of participants helped weave a complex tapestry of knowledge and understanding. For me it was a once in a lifetime chance to participate in a rare melding of scientists working in an environment alive with poets, teachers, journalists, artists, community activists, indigenous and youth ambassadors. The eclectic combination created a magic environment while onboard, but gave some clues as to how to unlock the dilemma about communications with ordinary Canadians, both in planned and chance conversations.

Here is a brief rundown of a few of the remarkable participants just on Leg 7 of Canada C3:

Lorna Crozier, Poet Laureate
Lorna Crozier, Poet Laureate
Phil Irish, Artist
Phil Irish, Artist
Paul Rogalski, Chef
Paul Rogalski, Chef

Lorna Crozier is a Governor-General Award winning poet, and Officer of the Order of Canada, living in Victoria. I was soo impressed by Lorna’s magic ability to help all of us  “break through the ice” and reach new levels of understanding, for example with her poem, Polar, uniquely capturing our experience onboard. Phil Irish is a visual artist and teacher based in Elora who was selected to be one of 15 artists, one per Leg, through a fiercely competitive, Canada Council led selection process. Phil, constantly sketching and painting, inspired all of us with his visual perspective on our Leg 7 experience and built on his own environmentally driven recent practice. Likewise, Paul Rogalsi of Rouge Restaurant in Calgary, was one of 15 chefs, selected for Leg 7 from Food Day Canada chefs from coast to coast to coast. Paul was a thoughtful contributor not just gastronomically, but also as an avid environmentalist keen on sustainable living.

Peter Poole, Changemaker
Peter Poole, Changemaker
Tony Dekker, Musician
Tony Dekker, Musician
Benoit Dupras, Youth Activist
Benoit Dupras, Youth Activist

Peter Poole is a renaissance man who is deeply involved in his community of Banff, Alberta and the larger world. He is a change maker with a deep commitment to conservation and honouring indigenous elders which shine through in all of his endeavours. Through other projects, he is also a very good friend. Tony Dekker is the lead singer and songwriter for Canadian indie-folk group Great Lake Swimmers. Tony is a thoughtful and down to earth musician with a strong interest in nature and relationships. Even at 19 years of age, Benoit Dupras, a Youth Ambassador on Leg 7 from northern Québec, is on a course to change the world. He is indicative of a new generation of Francophone Canadian leaders and, in his case, he aims to be a major force to move Canada, and the world, away from fossil fuels to a green energy future.

Taivitii (David) Lawson, Inuk Leader
Taivitii (David) Lawson, Inuk Leader
Joshua Stribbell, Urban Inuk
Joshua Stribbell, Urban Inuk
Tyler Waboose, Youth Ambassador
Tyler Waboose, Youth Ambassador

This last group represented Leg 7 participants from Canada’s Indigenous peoples, collectively, First Nations, Métis, and Inuit. In a later post, I will more fully explore some of the Reconciliation dialogue from Canada C3.

Taivitii (David) Lawson is an emerging Canadian Inuit leader originally from traditional lands near Pangnirtung and now living in Iqaluit. David was in the RCMP for 15 years and just prior to the Expedition, was about to embark on training to be a lawyer to “be an advocate for the Inuit people.” David has been an activist in a number of community issues, including suicide prevention through Embrace Life Council. Because David was a last minute replacement, there isn’t a bio on the C3 website. Joshua Stribbell is President, National Urban Inuit Youth Council and runs a program for Inuit youth in Toronto called Torontomiutaujugut. He grew up in Southern Ontario because his mother was adopted out in the Sixties Scoop. He has only recently started to re-connect with his Inuit heritage. A Youth Ambassador and member of the Matawa First Nation, born and raised in the urban setting of Thunder Bay, Tyler Waoose also aimed to re-connect with his ancestral heritage in the northern Canadian Arctic. Tyler is active in Roots to Harvest, engaging youth with agriculture and cultivating heathy communities.

Our onboard dialogues were both planned and an by chance encounter. We had an onboard, Hollywood level “Comms Team” of 6 people constantly shooting and producing amazing content to share with Canada and the world. As mentioned, the goal was to reach over 20 million Canadians, which I believe was handily achieved in channels as diverse as Facebook Live to traditional print journalism. As a result, even thought the participant base was limited, the majority of Canadian participated to greater or lesser degrees in the education and conversation about our future. I also committed to share in various ways, including writing a series of blog posts (like this one!).

One particularly important session was organized by very thoughtful participant Peter Poole. He had several scientists, youth, artists, indigenous people and other present their thoughts on what Climate Change meant to them both personally and professionally. Being involved in my own work to “reboot the narrative around climate change”, this particular session inspired and motivated me to carry on the conversations that Peter started. While there will be more on my initiative as it evolves, it was clear that this session got many to commit to being ongoing ambassadors and champions of the unique Climate Change perspectives from the north. Also, now in 2018, watch out for various more formalized Canada C3 Legacy Projects as they are unveiled during this year.

While I could go on endlessly about Canada C3 and the environment, hopefully this does give you a taste. Collectively, I can only give a small glimpse of how the Canada C3 expedition was a life-changing one for me and all participants. The learnings weren’t so much the hard science, but instead the storytelling and narrative challenges standing in the way of getting us all onboard.

To wrap up, just as Chef Paul Rogalski always reminded us that “The foundation of great food starts with the ingredients…’, so too does making the world better start with great people. I will leave the last word to none other than that master of words, Lorna Crozier. I love the picture she paints tying in so well, and viscerally, to the earlier words of scientists like Bianca Perren who has dedicated her life to Polar Climate Science. What action will you take in response.

Lorna Crozier Interview, Onboard Canada C3 Entering North Pangnirtung Fjord
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5 Dec 2017

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Canada – A Nation Built by (Extra) Ordinary People

In a previous post, I spoke about my involvement with Canada 150 and also the Canada C3 signature project. The latter is an epic journey divided into 15 “Legs”, on a former Canadian Coast Guard Ice Breaker vessel (the MV Polar Prince, ca 1958) refitted to sail from coast to coast to coast for 150 days, and provide an ideal platform for connections and conversations. As a participant, I can only say I was profoundly changed, inspired, enlightened and mobilized by my time.

At our 150th birthday in 2017, Canada is at a crossroads as it strives to outgrow its colonial past, to find its rôle and place in a new world order and to respond to the recent Truth and Reconciliation Commission Report on the mis-treatment of our Indigenous Peoples in Residential Schools.

Compared to the celebration of our history that was the focus of Canada’s Centennial in 1967, Canada C3 responded directly to such challenges and sought to contribute to a new sense of nation building in our country. The ambitious goal was to engage over 20 million Canadians and contribute to a Legacy for our nation as it looks forward to our bicentennial in 2067 and beyond.

Accordingly, the key themes for Canada C3 were crafted to help in this nation building:

  • Reconciliation with our Indigenous People, namely First Nations, Métis and Inuit.
  • Environment: and in particular the challenges of climate change as well as specific challenges facing our coastline and northern regions. A little known fact is that Canada has the longest coastline of any country in the world. Issues include species loss, micro plastics in our oceans, effects of higher sea levels and much more. See my post here: “Environmental Awakening Fusing of Science, The Arts and Sea Ice”
  • Diversity and Inclusion: Canada’s cultural mosaic includes people from all over the world which is a reflection of Canada’s admirable openness and welcoming nature. Although we have always been a country of newcomers. our society still has a way to go to be completely inclusive to: visible minorities, women, LGBT and those with disabilities.
  • Youth Engagement: As a baby boomer who was a teenager in 1967, I feel that my generation has proactively shaped the Canada we know today. Our generation has achieved much that is good but there are many areas to address. This is always a work in progress. Similarly, today’s youth must lead our quest for the Canada of 2067 and Canada C3 provided a great vehicle from them to learn,
    share, contribute and ultimately act to help us build a future civil society that is just and open.

I was honoured and privileged to be a Participant on Leg 7 of Canada C3, from Iqaluit to Qikiqtarjuaq on the east coast of Baffin Island in our newest Territory. Note that I will write posts on most, if not all, of the above four themes through my eyes always amplified by and learning from the amazing people onboard and in the local communities. As I’ve learned, in any human endeavour, it is extraordinary people who shape Canada, and ignite me with a huge optimism about our future. The expedition organizers did an wonderful job in curating a massively diverse group of exceptional people, some of whom might too modestly consider themselves ordinary. In this post, and the following ones, I will try to share my thoughts as shaped by these extraordinary Canadians. I have also learned that, simply by convening conversations, powerful and transformative change can be unleassed.

To illustrate this, the ship had about 60 people onboard at any one time, as follows:

  • 14 crew – from the amazing Captain Stephan Guy who also made the best bread I’ve had in a long time, and a group of hard working marine experts who worked hard 24/7 to ensure we progressed safely and on time,
  • 20 staff – The staff was led by the world’s most innovative outdoor educator, Geoff Green, CM, expedition leader. The staff complement included onboard scientists conducting 25 experiments along the coast of Canada, Zodiac drivers and interpreters; bear guard[ians]; hospitality and cooking; onboard physician; and a Hollywood grade “comms” team of six (2 nationally leading photographers, a videographer, a drone operator and two prolific video and content editors who seemed to work around the clock), and
  • 24 participants, for each of the 15 Legs or 360 for the entire expedition, selected in myriad ways, from invitation, partnership and application, including:
    • journalists from across Canada
    • a chef – each leg had one chef, part of Food Day Canada that celebrates food and food sustainability across Canada from coast to coast to coast
    • a visual artist, one per leg, chosen by a Canada Council adjudicated jury
    • a writer – ours was an Order of Canada poet who is a national treasure
    • a musician
    • educators – who could take the conversations back to our schools
    • indigenous people – Leg 7 had 2 Inuit leaders and a youth ambassador from our First Nations
    • youth ambassadors – we had 3 young people, already showing tremendous leadership and passion. I believe that, at their young age, this journey will be most transformational for them,
    • partners, including from Canada Council, Apathy is Boring, etc
    • business people,
    • and many, many more.

Through my posts, pictures, and videos, you will meet some of the above people, but my focus for this post will be in the communities we visited on our journey. Since it was impossible for each and every Canadian to participate, I hope these posts can help people share and savour even a small portion of what I experienced.

While the backdrop of our journey, the east coast of Baffin Island, represents some of the most spectacular scenery on our planet, it only provided the context for our discussions and learning. Make no mistake, for those who are connoisseurs of art from the Arctic, the sense of lighting and colours seems alien to our more southern eyes, yet addictively beautiful. Compare the colours and textures of the iconic Inuit Artist Jessie Ooonark, Group of Seven member Lawren Harris, and a Brit bewitched by the north Ted Harrison to the real thing:

© Jessie Oonark
© Lawren Harris [Fair Use]
© Ted Harrison

In posts that will follow, I will focus more on the people onboardCanada C3. For this post, I thought I’d talk about people encounters in the two main communities we visited, first Iqaluit, and our terminus in Qikiqtarjuaq.

Jenna in Iqaluit

Our first activity as a group was lunch and a hike in Sylvia Grinnel Territorial Park, which introduced us to the unique foliage north of the tree line. The park also contains archaeological sites of the ancient Dorset and Thule peoples.  While there, we met a very engaging young Inuk named Jenna, shown here hamming it up for the camera. She was with her family fishing near Sylvia Grinnel Falls.

I was chatting with fellow participant, Lorna Crozier, when Jenna approached us and offered to sing a song

Lorna Crozier in Fjord

I soon learned that this friendly engagement, even with strangers, is a common part of Inuit culture. When, expecting to learn about some local singer celebrity, I asked her what her favourite singer was, perhaps I shouldn’t have been surprised that she answered “Katie Perry”.

Later our group toured the Nunatta Sunakkutaangit Museum, in the former Hudson’s Bay Company store, travelling there by our trusty yellow school bus.

There I saw a man whole seemed interested in our group, so I stopped and chatted with him. The video below explains why the talented artist was in Iqaluit. Jenna, riding her bike, was in the background of this interview, but got removed in editing. Charlie “C5” Johnston was definitely worth interviewing and, was it synchronicity for a person who brands himself “C5” to meet and interact with the “C3” group?

Later in Iqaluit, we got to meet many local people, including the scientists at Nunavut Research Institute, local artists, and kayak building at the local high school.

Days later, at the end of Leg 7 in Qikiqtarjuaq, most of our group climbed the hill overlooking the hamlet and the Canada C3 vessel, and we had a number of amazing encounters.

Initially I was surprised that the girl, shown above with her sister, had such a pro camera. Later, I learned that a journal and fellow participant Caroline G Murphy, had sportingly lent her camera. For more background on this budding young photographer, read Caroline’s article in Le Journal de Montréal J’ai Prêté ma Caméra a une Jeune Inuite de 9 Ans …

Jim Kyte

And, for those unable to read in French, our discussions on Diversity and Inclusion did encompass the original “Two Solitudes” in Canada, namely French and English. While Google can do a great job translating the article, the photos with the eye of a precocious 9 year old totally transcend traditional cultural divides.

David Lawson

Our final community encounter during Leg 7 was at a ceremony in Qikiqtarjuaq where we gave hockey sticks to the local children, who seem to have a passion for hockey that transcends even southern Canada’s hockey crazy intensity. Leading the presentation was Jim Kyte, fellow participant and the first legally deaf NHL hockey player. Jim is an inspirational leader I was happy to get to know who has overcome challenges that most would shy away from. Today he serves as Dean of the School of Hospitality and Tourism at Algonquin College in Ottawa.

Jim was joined by last minute participant, David Lawson, an Inuk leader who just resigned after 15 years serving his community in the RCMP. I am sure we will hear much more from David who just started a law degree in order to better advocate for his people. For example, he is Board President of Embrace Life Council, an Iqaluit-based suicide prevention organization. In a separate post, I will write more about my journey of learning about the Inuit people and their journey to become a vital part of the fabric of our Canadian nation.

Canada C3 made for some wonderful encounters and conversations. I can only wish that every Canadian was able to share my experiences with the wonderful diversity that is Canada. Even I took a long time to process this life changing experience. In the end, I had my understanding of my own country transformed both by the special world that is Canada’s Arctic regions, but even more so by people who now have a life long bond that will lead to action. These conversations were far from superficial and already, many of us are taking action. As we enter 2018, you will start to learn more about the Canada C3 Legacy Programs which will keep the torch of this remarkable nation building alive and further spreading that light in the form of action and education.

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18 Sep 2016

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Who Will Lead Our Institutions’ Response to Climate Change

Even though a life-long environmentalist, looking at the world through my children’s eyes drives home how pressing, and enormous, is the card we have dealt them. That legacy of unprecedented global climate change, leaves little choice between measures to achieve a rapid reversal of climate change or living with global apocalypse.

Personally, I vote for reversal, as one expects would most rational people. However, getting there requires a complete re-think of our lives, and our communities. In my daily life, I see huge opportunities.

From Central to Middle of Nowhere (West Field)From Central to Middle of Nowhere (West Field)

Having grown up in Listowel, Ontario, I recently attended the closing ceremony for the Central Public School which will be replaced by North Perth Westfield Elementary School – the difference in the names, previously “Central” to the new “West field” says it all and is illustrated in this map.

Although we all spent time reminiscing about memories and a proud history comprising at least 3 school buildings on the “Central” site, the issue I raise isn’t about heritage. The new school will necessitate a school bus ride for essentially all students. Unlike Central, where most students walked or biked to school, that option will be closed to all but a handful.

Listowel Public School Since 1877

Beyond contributing to our climate change crisis, childhood obesity has doubled in the last 30 years (Reference: Centers for Disease Control), mostly as a result of less healthy eating and lack of physical activity. In an age where Physical Literacy and promoting active lifestyles has moved to the top of our agenda, school location should be seen as a contributor to the solution instead of being a major part of the culprit.

Near Elora, Centre Wellington District High School went through a similar “de-centralizing” exercise a few years ago. Groves Memorial Community Hospital is slated to move from its central location near downtown Fergus to a “green field” site (note the prevalence of the word “field” in these decisions) in land between the built up areas of Fergus and Elora. It is notable that the founder of Groves, none other than Abraham Groves was a social innovator of the previous century, who as a doctor pioneering surgical sterilization, did the first successful appendectomy in North America, created hydro power and phone service all to drive change in his home community. I am sure that if Groves were alive today, he would be promoting walkability and carbon footprint reduction.

Urban cores, and small town downtowns, continue to struggle with the appearance of big box stores on the periphery of communities. In addition to often devastating effect on once vibrant centres of community activity, this trend further exacerbates more driving and less walking. Not a good combination.

How do these choices in pubic infrastructure relate to the apocalyptic images of destruction at the top of this post? Climate change is very real with the effects more and more visible, and traumatic as each year passes. Events like the recent Fort McMurray fire, Goderich Tornado in 2011 and severe flooding in the UK can all be  traced to the dramatic changes in global climate unfolding over the last few years. The steady, yet gradual increase in the earth’s temperature, leads to greater volatility and severity of weather events. We all know the depressing reality that, horrible as these are, things are going to get worse before they get better.

We used to call the buildup in Greenhouse Gas (GHG) emissions, driven by human activity powered by a reliance on fossil fuels such as oil and coal, Global Warming. It has been rebranded as climate change to reflect the reality that, although the average temperature increases, the main effect is to increase weather volatility. This volatility translates into extreme climate-related events with increasing frequency. Globally, climate change may lead to famines, mass migrations and wars of unprecedented scale and attendant misery.

Faced with this stark reality, you would expect a universal call for governments and public institutions to provide leadership to address climate change?

You would think not, but recent experiences have been been vividly frustrating in showing that, in fact, our public institutions have a long way to go. How are we, as citizens, able to do our part in these circumstances?

CAPP Canadian Carbon Breakdown

First it helps to break down such a massive problem into its constituent parts. To start, let’s quantify the effect that our transportation has on GHG reduction. From data compiled, ironically, by the Canadian Association of Petroleum Producers, transportation is the biggest single sector contributing to Greenhouse Gas emissions, closely followed by Oil and Natural Gas producing industries. Further, Canada has a much poorer record in this regard than other rich nations.

We live in an era when people care deeply about the well-being of future generations. Residential homebuyers are increasingly prioritizing Walkability Scores, which include access to nearby schools in home buying decisions. No generation is more concerned than the Millenials, who have internalized the legacy that climate change will seriously and adversely impact them during their lifetimes. A major way to reverse GHG emissions growth is to tackle personal transportation – to work, schools, hospitals, leisure and shopping.

Collectively, the “M.U.S.H. Sector” (publicly funded organizations like Municipalities, Universities, Schools and Hospitals) has a huge opportunity to take leadership in our current war on carbon. While we might believe that leadership must start at the top with government, without grassroots calls for change the political cost can be too high. (See: CBC News: Politicians Are Green Until They’re Intimidated by the Electoral Price) The challenge will be to empower ordinary folk to drive a climate positive future by taking such thinking from the realm of environmentalists and making it mainstream.

We urgently need an optimistic call to action that citizens can easily embrace. I am working with people that the Elora Environment Centre, an NGO leading innovation and action on the environment, to repackage the Climate Change narrative from one that leaves people powerless, frustrated and even guilt-ridden. We aim to find ways to re-boot the climate change narrative, and unleash a crowdsourced solution coming from the grass roots. Stay tuned. Our planet and our children are counting on it!

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8 Mar 2016

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Go East Young Startup!

“The journey of a thousand miles begins with one step.”

“千里之行，始於足下”

Laozi c.580 BCE

Building on 19th Century US westward expansion (“Go West Young Man”), much of the current innovation in technology has been West Coast focused, particularly in California’s Silicon Valley, which has for more than 50 years been an intellectual epicentre of the technology world.

Source: Wall Street Pit

Over my long tenure in the vanguard of technology trends, I have witnessed a tectonic shift in this comfortable, yet outdated, world order. Today the best and brightest innovators and entrepreneurs must also look east, especially to China, to fully embrace global reality of the 21st Century.

Many of you might be wondering about the slowing growth rates in China? Like many aspects of China, there are many perplexing contradictions that are beyond the scope of this post. It is certainly true that Chinese infrastructure investments and some manufacturing has been overbuilt. Not so in the technology industry. The difference is that there is a huge gap as  the Chinese population increasingly moves to middle class status and the country needs to solve some huge issues (e.g. environmental issues around air quality). As a result, ICT, Green Technology, Life Sciences and other knowledge-based businesses continue to provide huge upside opportunities.

There is no question that China is a complex and difficult market to access. Knowing this, how can Canadian entrepreneurs master the new globalization landscape? Read on …

In 2015, my assistance was requested from an innovative group of investors and social entrepreneurs to pilot a new program, called CAMP (short for China Angel Mentorship Program) aimed at forging new international linkages tied to the momentum of startups. By identifying some of the best Canadian startup entrepreneurs, investing in them and helping them to engage with China, this program has the opportunity to drive a whole new generation of engagement between China and Canada, in the fast moving world of startups, technology and innovation.

CAMP is created and led by Liu Zhishuo (Peter Liu), Wang Tong (Tony Wang), Liu Yingna (Angela Liu), Zhang Yi Chin and Yang Jun (Alan Yang), all very savvy strategists and investors who aspire to “cross-border ecosystem building” between China and Canada. They work in Canada through CCAA (China Canada Angels Alliance) which made 23 investments in 2015 and in China through River Capital which made 50 investments in 2015. Since, as a westerner, you may not know these leaders (pictured below in Beijing), I will provide some background and context.

  • Peter and Angela Liu at CAMP Beijing 2015
  • Angela Liu. Tony Wang & Qi Lin at CAMP 2015 Beijing

I was asked to help this core group from CCAA to help find a pivotal group of Canadian mentors, who were able to assist CCAA to shape the CAMP program and ensure that the most qualified cadre of startups were selected to fill the 2015 cohort. Many of us, including Aron Solomon, Peter Evans, Benton Leong, Chris Flood and yours truly were in Beijing to also assist in the work that was much more focused on the Chinese mentor group, many of whom are indicated at this link.

Now let’s turn to the CAMP framework. As a uniquely conceived variant of the classical “startup accelerator”, CAMP involves CCAA, along with the Canadian mentors, selecting the 10 best Canadian startups (initially restricted to Ontario) who are uniquely engaged with:

  • an up to $200,000 equity investment
  • a detailed orientation session in Canada to build the groundwork for the best China experience
  • matchmaking with one or more mentors in China, who are chosen specifically for each company based on market and need.
  • an intensive 2 week immersion in Beijing, including many company visits, one-on-one meetings and a demo day in front of top Chinese investors
  • an 18 month post Beijing engagement with the chosen mentor to provide targeted assistance while the company grows and expands.

Because this was a first iteration, many companies had no idea of what to expect. Many were a bit sceptical, but being true entrepreneurs, they took the plunge. I can say that each and every startup from the first 2015 cohort of CAMP found the immersive experience in Beijing to be an exhaustingly intensive experience, but one that was profound and life-changing. The level of access to high level networks (“guanxi”) was extraordinary. That, coupled with the strategic insight of the CAMP organizers, and matched mentors, elevated the experience in Beijing.

Based on the inaugural CAMP, the organizers are committed to making the second cohort in 2016 even better. That call for the best startups will open up in the coming weeks. Until then, you might ask: why should you pay attention to CAMP and what sets it apart?

Access and Understanding: First of all, although China is a huge and growing market, it is very difficult for most companies, not the least a young startup, to properly engage with it. It is a complex market, fraught with pitfalls and unknown territory, from language, customs and even different regulation. CAMP provides personal connections (guanxi) through the mentors, and a degree of wisdom not likely to be available anywhere else. No company should consider China without a strong relationship with a trusted guide and mentor.

Canada-China Engagement: I firmly believe that CAMP has the potential to open up very senior intergovernmental engagement between China and Canada, but through the lens of building the new economy via innovative startups. Yet, startups have not historically been a major focus for governments at the national, provincial or regional level. I firmly believe that CAMP  has sown the seeds that may increase bi-literal impact.

Huge Market Gaps: The unprecedented growth and transformation of China over the last quarter century has created huge demand and huge needs. Much has been written about that. But, less obvious, is that there are many companies in China looking for unique international opportunities. It is as challenging for them to engage outside China as it is for a Canadian company to understand China.

Growth Hacking: Perhaps the number one reason that startups go to California is to tap into the “growth hacking” expertise, an area in which Silicon Valley continues to be a world-beating innovator. Less well known in the west is that a new generation of Chinese tech firms, particularly in B2C and mobile, has taken growth hacking skills and strategies into hyperdrive. Surprising as it might seem, these may well make Silicon Valley growth vectors look tame by comparison. Every CAMP participant will have a unique opportunity to tap into this expertise.

Whether you are a startup with world-beating ambition or an tech ecosystem leader looking for future opportunities, stay tuned for the launch of the CAMP website, which will be accompanied by a call to find the 10 best startups Canada has to offer.

Randall (郝狼盾)Looking east and savouring the journey..

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10 Sep 2015

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Middlebrook Prize on the Move

The Middlebrook Prize for Young Canadian Curators has named Adam Barbu as its third winner and is moving up to a whole new level. Founded in 2012 by John Kissick and me, with initial investments from Middlebrook Social Innovation Fund, to support and mobilize Canadian creative talent, the Prize aims to inspire positive social change through creativity and connectedness in a time of unprecedented economic, environmental, social, and cultural challenges.

In our 3rd year, some exciting changes are afoot as we see our vision for the Prize unfold.

First of all, the Prize has a new home in our partner gallery, the recently re-branded Art Gallery of Guelph. Led by Dawn Owen, the gallery provides a compelling new venue to host the Prize exhibition and to mentor the winner.

Secondly, the Prize now has a physical form and a visual identity as befits an increasingly important Canadian cultural icon. Designed by the immensely talented and award winning creative director, Chris Duchaine, our new visual identity reflects the knowledge integration inherent in modern curating interpreted with the most modern design principles. Paying homage to the “White Cube” abstraction of the  idealized art gallery, it also references the forces that are breaking down that cube and moving curation firmly into the future, perhaps embracing new ideas like the Ultra Contemporary Art Movement.

Hear Chris discuss his design:

I’ve chosen some personally curated highlights both of that report and the overall conference:

  • Overall US Angel investment was about US$25 billion in 2014, surpassing venture capital investments. This represents over 300,000 investors in over 70,000 deals. We continue to have less comprehensive data for Canada, but we still lag on a per capita basis, but the gap is narrowing.
  • Although Crowdfunding was a major topic of discussion, it is still less than 2% of the above $25 billion figure, definitely lagging places like the UK where it is already at 5%.
  • Median deal size grew over 10% to $2 million in 2014, when co-investment is included. Median pre-money valuation grew 20% to $3 million.
  • The largest region for  deal dollars (17.2%) was the Great Lakes Region (from Wisconsin to Ohio), surprising to those who thought most deals happen in California. Further, almost 50% of all deals are in states on the Canadian border, clearly presenting cross-border syndication opportunities.
  • Perhaps because of high valuations in the tech “hot spots”, such as New York City and California, more syndication across greater distances was reported, which goes against the traditional notion of investors focusing within a one-hour drive. Again, while the studies of greater cross-country syndication didn’t extend into Canada, it is easy to extend this trend cross-border. A drive could be to focus on those sectors requiring specialized skills such as medical technologies and life sciences.
  • There were a lot of great sessions on emerging, and ongoing, issues, such as crowdfunding, the new SEC Regulation A+ (mandated by the JOBS Act to simplify raises up to $20 million even from non-accredited investors), an ever increasing push to build new and innovative Angel Funds and even post investment Board governance.
  • In that vein, I ran an open panel on “Best Practices to Build a Private Equity Portfolio – Tools and Strategies”.  What was notable was how primitive such angel portfolio management really was. One participant suggested angels portfolio management was comparable to that of public company portfolios 100 years ago. As Angels learn that a passive approach with little portfolio management is sub-optimal, leading Superangels, the advanced Angel groups and the trend to angel funds are all pushing for more professional portfolio management. Although historically they have worked separately, the increased involvement of Family Offices in the world of angels is also starting to drive greater portfolio discipline. New software tools are emerging to help here as well, such as Seraf – Portfolio Management for Angel Investors which was built by angels unable to find a way to automate their portfolio management.

In summary, ACA Summit 2015 was a fabulous opportunity to meet, network and learn from some of the best global angels and understand about emerging models and best practices. Many side bar conversations, dinners and drinks in the garden were packed with wisdom from around the world.

In October, our own NACO Summit will be a great opportunity for Canadians to similarly share and learn and to connect with a more global perspective as our Angel ecosystem continues to grow from strength to strength.

2015 National Angel Capital Summit

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8 Feb 2015

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Top 25 Waterloo Technology Acquisitions – Wisdom from the Data

The acquisition of MKS by PTC in 2011, caused me to reflect a bit on what good acquisitions might look like and what they might teach us about building (sometimes elusive) long term shareholder value. As a result, over the last 6 months, I’ve progressively assembled a collection on the most significant acquisitions in the Waterloo area. To my knowledge, such information has hitherto never been collected. We all love to speculate, but it is more productive to ground that speculation with facts.

The following table is intended to summarize value creation through the lens of several key benchmarks.

Rank Company Acquiror Acquisition Price
(UIS$ millions)		 Date Acquired Date Founded Company Age
(years)		 Employees LTM Sales
($US Million)		 NOTES Price/Sales Revenue/Emp CAGR $/Employee
1 Pixstream Cisco 369 December 21, 2000 1996 4 196 5.4 2 68.3 27 551 47.2 1.88
2 Dalsa Teledyne Technologies 341 February 14, 2011 1980 31 1000 200 3 1.7 200 000 0.85 0.34
3 MKS PTC – Parametric 304 May 31, 2011 May 1, 1984 27 360 75 4.1 208 333 0.96 0.84
4 Mitra Imaging AGFA Healthcare 252 January 3, 2002 1990 12 400 50 4 5 125 000 3.38 0.63
5 Bluegill Checkfree 250 April 28, 2000 1996 4 150 20 5 12.5 133 333 68.57 1.67
6 Unitron Phonak 91 November 22, 2000 1965 35 300 62.6 6 1.5 208 667 0.67 0.30
7 SlipStream RIM 91 June 1, 2006 2000 6 120 13 7 7 108 333 14.33 0.76
8 Tsavo Media Cyberplex 75 June 10, 2010 2001? 9 120 110 8 0.7 916 667 6.83 0.63
9 WATCOM Powersoft 74 February 11, 1994 1981 13 100 8 9 9.3 80 000 2.4 0.74
10 LivePage Janna Systems 68 September 20, 1999 1990? 9 12 1 10 68 83 333 3.64 5.67
11 EMJ Synnex Canada 64 July 14, 2004 1979 25 350 303 12 0.2 865 714 1.18 0.18
12 Dspfactory AMI Semiconductor 51 September 9, 2004 1998 6 75 16 3.2 213 333 14.87 0.68
13 MapleSoft Cybernet Systems 49.8 September 1, 2009 April 30, 1988 21 50 12 13 4.1 240 000 1.17 1.00
14 PrinterOn Samsung 40 September 2, 2014 2000 14 50 10 4 200 000 2.15 0.80
15 SS Technologies Woodhead Industries 35 July 31, 1998 1991 7 75 50 14 0.7 666 667 11.6 0.47
16 Reqwireless Google 32 2001 June 23, 1905 4 15 1 32 66 667 30 2.13
17 TribeHR NetSuite 30 October 22, 2013 2009 4 24 4.5 18 6.7 187 500 45 1.25
18 GBG HighJump Software 26 November 1, 2006 1991 15 200 22 11 1.2 110 000 2.09 0.13
19 PostRank Google 25 June 3, 2011 March 1, 2007 4 20 0 n/m n/m n/m 1.25
20 Kaparel (Pixstream) Rittal 21 December 10, 2000 1996 4 30 7.1 17 3 236 667 50.62 0.7
21 VideoLocus LSI Logic 20 November 14, 2002 May 1, 2001 2 17 0 n/m n/m n/m 1.18
22 RapidMind Intel 19 August 19, 2009 2004 5 25 3 6.3 120 000 18 0.76
23 BufferBox Google 17.5 December 30, 2012 2011 2 10 0 n/m n/m n/m 1.75
24 Software Metrics Equitrac 8 February 1, 2000 September 1, 1992 8 35 3 16 n/m n/m n/m 0.23
25 Volker Craig NABU 5.9 1981 1973 8 45 5.9 1 131 827 6 0.47
TOTAL 2364 11.16 3779 982.5 11.5 259 998 15.8 0.62

NOTES:

  1. Sources: public records, internet, personal recollections and interviews with 25 key ecosystem participants. In the interests of data utility, I welcome any revisions or comments regarding accuracy or completeness.
  2. All data are “normalized” into US Dollars, using an exchange rate current on the date of the acquisition. The use of US$ reflects the fact that most technology companies are really valued in US$ and hence that makes comparisons, both across the data and to other jurisdictions, more meaningful.
  3. The sample set is limited to my sense of what a technology company is – your mileage may vary.
  4. Acquisition PRICE includes cash, stock and post deal incentives, including earn outs.
  5. Several companies were re-acquired after the first acquisition (e.g. WatCom and LivePage). These follow on transactions are not reflected in this data.
  6. Some companies spun out several acquisitions, such as Kaparel which was sold out of Pixstream or SS Technologies, originally spun out of Sutherland Shultz.
  7. AGE represents the time in years from founding to the (first) acquisition.
  8. EMPLOYEES is the world wide count.
  9. SALES, given the high growth nature of many of these businesses, levels generally reflect the run rate at acquisition, rather than purely using an LTM (“Last Twelve Months”) measure.

CONCLUSIONS

The above data suggests a lot of trends and insights. It contains a wealth of insights, and also the individual narratives of each of these companies is, in itself, worthy of more discussion and analysis. In aggregate, however, the data suggest some key ideas to me:

  1. Acquisition prices are a great proxy for long term shareholder value, precisely because leading global technology companies provide an informed, third party valuation that likely has way more science than most earlier stage technology company valuation.
  2. Building larger companies takes time. The myth of the “quick flip” startup is (mostly) just that.
  3. As I discuss in my next post, building major technology companies is hard. We don’t (yet) seem to have “cracked the code” on this and need to learn how to build more over time.
  4. The aggregate scale of these companies, at the time of their acquisition, is materially significant to our region – almost 4 000 employees and almost $1 billion in revenue.
  5. Companies take much longer to build than most would expect. While the range in ages from 2 to 35 years is quite diverse, the average age of 11.2 years shows the time, resources and hard work to build real businesses.
  6. Acquisitions are good for our economy. Many people consider acquisitions to be a bad thing, but for those companies that were already at reasonable scale, most have continued to grow post acquisition. In addition to the wealth generated and its spinoffs, the acquirors bring new ideas and often jobs to our region. This is yet another reason why building larger technology companies is so important.

I am hoping that this data collection regarding acquisitions, and my initial take on conclusions, might stimulate further discussion around the notion of building significant value in businesses.

Please feel free to comment, or even contact me, with insights, questions and corrections.

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