Alex Chuang

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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Does BC Tech have it right? Next week I'll be on stage with an amazing line up of leaders at the BetaKit Town Hall: Vancouver. From my conversations so far, some clear differences have emerged from the vibes of the Toronto tech sector. -Unequivocal in their belief that BC is where they want to live, and so no question about keeping their companies there. -Just as sick as everyone else with trying to sell in Canada, but seemingly much more at peace with straight to US sales approach. -Stymied in raising in Canada, much more likely to extoll the virtues of bootstrapping and to have avoided the pitfalls of irrational growth -Influenced by their natural surroundings and research communities, more focused on high impact verticals on life science and climate tech, and more likely to raise the potential of tech to address big challenges like forest fires -More likely to praise provincial government programs for getting things right (although quick to shred SR&ED) Not all rosy, to be sure, but some low key BC rizz I'm looking forward to hearing more about.

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Founders in Toronto and Bentonville, are you ready to pitch your startup? BatterUp! is an opportunity for founders to pitch their startups to a panel of angel investors. It's all about direct feedback and connection. The details: - Bentonville: 10/21 - Toronto: 11/5 What to expect: - A free event where you pitch with no slides or decks, just 2 minutes on stage. - After your pitch, a panel of experienced investors will give tips on how to improve Even if you're not pitching, this event is a fantastic resource. You'll be surrounded by 150 founders, gaining insights on how investors think, and building connections to make the journey a little less lonely. And while this is not an episode of Shark Tank (no money is being promised onstage) I'll say this: a number of startups have received funding as a direct result of participating in BatterUp!. Investors are welcome! You’ll likely meet some Angel Squad members and discover some of the most innovative new companies in these cities. No charge to join, just reserve your spot: https://lu.ma/hustlefund

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Canada's Brain Drain is undeniable! 🌍 Why are ambitious Canadian startup founders flocking to the US? 𝗟𝗲𝘀𝘀 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 The US economy is 12.5x larger but its VC industry is 30x larger. In 2023, US VC deals were $150-200 billion while Canada was ~$6 billion. 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝗙𝗿𝗶𝗲𝗻𝗱𝗹𝘆 𝗖𝘂𝗹𝘁𝘂𝗿𝗲 In the US, speed and risk-taking reign supreme. It's a dynamic environment where ideas rapidly transform into reality, unlike the more cautious pace in Canada. 𝗕𝗶𝗴𝗴𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁 With an economy 12.5x the size of Canada’s, the US offers unprecedented reach and potential for growth. 𝗛𝗶𝗴𝗵𝗲𝗿 𝗧𝗮𝘅𝗲𝘀 Although not the main factor, higher taxes in Canada add to the challenges. Recent hikes in capital gains taxes have not helped. For Canada to thrive in the innovation economy, it's time to tackle these hurdles head-on. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _  Excerpt from a discussion I had with Mark Nashman. Link to the full video in the comments. #startups #venturecapital #investing #Canada #culture

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At first glance, exhilaration that funding is available to businesses in Southern Ontario. Upon digging deeper, despair, frustration and anger that entrepreneurs must jump through government hoops, including filling out this ridiculously long, and arduous applications. Forgive my shouting but … STOP MAKING ENTREPRENEURS JUMP THROUGH BEUROCRATIC HOOPS! We simply DO NOT have TIME nor MONEY to WASTE filling out these ridiculous forms! Signed every entrepreneur in Canada!

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