Let the Sparks Fly!

What’s so great about Canadian software developers, anyway?

I have often spoken about the fact that we have great developers right here in Canada.

At Brightspark, our model is predicated on trying to grow more Canadian software companies and, in the process, make lots of money for these developers, our investors (and ourselves).

 

So, what is the “secret sauce”? Well, it's not a secret, it's simply a combination of factors.

1. Schools - We have great universities which create great software developers. Why do you think Google and Microsoft keep advertising here? Why are Google and Microsoft competing to hire
Waterloo grads? Simple – our grads are the best.

 

2. Attitude - Our developers are not looking to change jobs every week. They are not looking to hop from company to company. They are looking for a great environment, which is challenging, interesting, fun, fair, lucrative and with the right value system. Too many developers in “hot areas” like Silicon Valley and Seattle spend a lot of time proving that they are superstars, hop from company to company looking for the next pot of gold and burn themselves out very quickly.

 

3. Focus - We have seen that Canadian companies are able to see an opportunity and then seize the opportunity. So, they spend their time and effort creating great products. They don’t spend too much time making great demos for the CEO to prove that they are great, but instead spend their time making great software.

 

Our opportunity is to capitalize on this. Instead of our graduates being lured away to Google and Microsoft, let's find ways to create more local opportunity. I am not suggesting that we can have companies here that can compete with Microsoft or Google, I am suggesting that we can create GREAT parts companies. The trend is for the large companies to acquire the smaller players. And, in many cases the development teams today stay in their location. So, the opportunity is to create great small companies with incredible developers right here and prove that even if they are acquired they should stay here.

 

I have countless examples of seeing this work. So, don’t get lured away too early. Create your own opportunity right here. And remember, productivity here is high because its too cold to go outside anyway……

To VC or not to VC

Much has been written about the challenges many startups face in finding seed and early-stage investors for their ventures.  The Internet crash indeed scared away many Angel investors while forcing many venture funds to shift their focus to investing in more mature companies.  Even to this day, Canadian VCs who call themselves “early-stage” investors are more likely to gravitate towards companies with experienced management teams, a mature product and a business model with a proven path to revenue and profits.  To me, this does not define “early-stage” investing. 

Entrepreneurs often find themselves frustrated with the financial community and the lack of risk tolerance that comes hand-in-hand with the startup process.  Are there other alternatives?  Do the risk-takers still exist?  I’ve always tried to get out our message out that a viable financing alternative does exist.  Our team strives to find these very early companies with passionate entrepreneurs or technologists who believe in a market opportunity.  Do we need an experienced management team?  Not initially.  Do we need a completed, scalable solution?  Not yet.  Do we need a proven business model?  Eventually.  That doesn’t sound like a typical VC talking, does it?  I’m proud to say that our firm is far from typical. 

At Brightspark, our bets are placed on world-class technology which, we believe, forms the heart of any great software startup.  The reality of focusing on seed investments is that we quite often meet domain experts who are world-class experts in technology, but who don’t often have the skill or the desire to be the CEO of a company.  Without a management team or a revenue stream, these experts are generally turned away from traditional venture capitalists for being “too early”.  I like companies that are “too early”.  To me, that is what our whole business is about - finding and supporting the best and the brightest and helping them to get started. 

We need the next Canadian success story…and it all starts by taking a risk and placing a bet.  We’re up for it…are you?

Welcome to the Brightspark blog!

Hello and welcome to Brightspark’s blog.  My name is Mark Skapinker and I am one of the Managing Partner’s of Brightspark Ventures, a Canadian seed-stage software venture fund.  I’ve been hoping to launch Brightspark into the blogosphere for some time now in order to share our team’s personalities and provide some unique perspective on the startup experience and our views on the technology industry.  Having been in the software industry for many years now, I’ve certainly seen many fads and bubbles come and go.  But the allure of exciting technology mixed with the adrenaline of the startup adventure is what keeps my passion alive about this industry.  My partners and I launched Brightspark in order to help cultivate the startup industry in Canada. 

I’m hoping to use this blog to invite the other members of the Brightspark team to also share their thoughts, as well as inviting the CEOs of our portfolio companies to share their views on their own startup experiences.  So buckle-up, get ready – let the sparks fly!