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What’s Been Happening With Gagglescape Anyway?
 Some readers have asked why the site changed last month. Why the news feeds? Where are the blogs about the Web 2.0 world? Let us explain. Our editor has been collaborating on a social-networking Web application that may well change how creative workers manage their information sources and digital media. The thrust of that work will eventually find its way to gagglescape.com to guarantee its relevance in an increasingly Web-centric future. These are, as they say, interesting times. The downside of all this is we haven't had time to update the site on a daily basis. Don't fret though. We are ramping up our blogging over the next month while also working on a major rethinking of the site's design and functionality. Stay tuned.
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Posted by R. Ouellette on 05/09
The M.I.T. Enterprise Forum Tonight
A reminder for Gagglescape.com readers. Tonight is M.I.T. Enterprise Forum night.CLEANTECH ENTREPRENEURS TELL THEIR STORIES - 6 Successful CEOs Give Us Ideas of How and Where to Invest.
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Posted by R. Ouellette on 04/18
Web 2.0 Conference Burn-Out
 As we in Toronto wait with much anticipation for the second coming of MESH, our fellow geeks in California are engaged in a conference of their own: Web 2.0 Expo. Gagglescape's good friends David Crow and Jay Goldman were there presenting on opening day. Generally, the buzz from the event is positive. That said, some reviewers are talking about having Web 2.0 conference burn-out. Turns out that big sponsors are taking over some panels and the vitality of social-networking's early days is being lost to a creeping commercialization. Here is what Venture Chronicles' blogger Jeff Nolan has to say: In short, I’ll leave this thought with you conference organizers: panels and sessions have a default mode of boring so go through the extra effort to select a panel, and more importantly, a moderator that will shake the bag a little and give it some edge. Panels don’t just inform, they should question everything, challenge the panelists, and create controversy and conflict where there should be none. And don’t give moderator slots to your sponsors just because they are your sponsors. If a panel doesn’t end without a little name calling, then what’s the point? Ah, the early days of any new phenomenon pumps up the early-adopter hero quotient making saints of some and pillories others. I've been through a few of those cycles and can understand the excitement. Commecialization of a good idea is important though. The development of ubiquitous social-networking methodologies could well be the greatest facilitator of societal change that the world has ever seen. That requires that we use the tools of development and distribution that the free market has perfected. For that I can live with a few predictable panels. Here are a few links about the conference:
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Posted by R. Ouellette on 04/17
Sex And The Internet User
 I really enjoy finding powerful analogs between simple concepts and complex phenomenon. You know what I mean - like discovering that the process of designing cities shares similar characteristics to the growth slime molds (Ask Steven Johnson about this). The site Website Optimization offers a compelling example. In this case it is the comparison between the actions of a male grain beetle looking for sex (honest) and the average Internet user looking for information. (Pirolli, P. (2007). "Information Foraging Theory: Adaptive Interaction with Information." New York, NY: Oxford University Press.) It turns out that the patterns generated by the two behaviours are similar. Switching when Information Scent Drops
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Posted by R. Ouellette on 04/16
Joost Breaks The MSM Barrier
 Skype's streaming-media offspring Joost.com (still in Beta I might add) signed its first big deal with the main stream media yesterday: CBS is the first national broadcaster to ink a deal with Joost, but it isn't an exclusive deal. CBS will be distributing content on a number of web portals as well, including AOL and MSN. The company also hopes to strike a deal deal with the new News Corp/NBC joint venture. As you would expect, CBS will be licensing shows that have already aired on television. Early titles will include the original CSI, NCIS, and the CBS Evening News with Katie Couric. The deal charges Joost 90% of any ad revenue generated by the service.
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Posted by R. Ouellette on 04/13
Canadians Pay Through The Nose For Mobile Connectivity
 Fellow swarmer and Web 2.0 aficionado Thomas Purves unleashed a hurricane of pent-up Canadian anger with his post on the Canadian mobile industry. Titled, "Canada Worse Than Third World Countries When It Comes To Mobile Data Access," the story pretty much nails the reasons why Canadians should be angry about paying so much more for connectivity. While you are at Tom's site reading the posting be sure to "Digg" it.
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Posted by R. Ouellette on 04/10
Canada Falls To 11th Place In ICT World Rankings
Our high mobile connectivity prices and, until recently, inability to retain mobile phone numbers were bound to catch up with us. Turns out that other first world countries have been beefing up their communications and information technology sectors by making them more ubiquitous while Canada's market Neros fiddled. The result: this year Canada dropped five places from 6th in the world to 11th in the World Economic Forum's yearly ICT rankings.
According to the WEF they used: The Report uses the Networked Readiness Index (NRI) to measure the degree of preparation of a nation or community to participate in and benefit from ICT developments. The NRI is composed of three component indexes which assess: - environment for ICT offered by a country or community - readiness of the community's key stakeholders - usage of ICT among these stakeholders.You do not have to possess a crystal ball to see Canada's future if our current system continues unaltered. Next year we could be in the mid teens and may fall too far behind to be globally competitive. We live in a networked world. Business is done on an instantaneous, global level. If we lack the infrastructure and adoption of our global competitors then there will be more than a few obsolete car manufacturing plants closing in the next few years. We have to stop propping up telcos who refuse to be globally competitive while, at the same time, demand regulatory protection of their collapsing markets.
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Posted by R. Ouellette on 04/03
Centernetworks.com Launches Elevator Pitch Competition
 Our U.S. based friends at http://www.Centernetworks.com have launched a video competition for Web 2.0 entrepreneurs. How do you enter? It is easy. Just shoot a video up to four minutes long of you giving your best elevator pitch -- you know, the one you uncorked one-hundred times at the Canadian Venture Forum. Entrants can get prizes as well as a prominent position on Centernetworks' main page for a few months. Here is what CN's editor Allen Stern writes: CenterNetworks.com, a source for Web 2.0 news, reviews and insight, today announced an online video contest to help internet start-ups and tech entrepreneurs "tell and sell" their story, generating expert feedback for young Web 2.0 companies. Go to their site for more information on the competition. Who knows, maybe you will find someone to fund your start-up.
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Posted by R. Ouellette on 04/02
SD Card Enabled Phones Leading Japan’s Mobile TV Market
Here is a press release from the SD Card association that illustrates the impact recordable mobile T.V. is having on the Japanese market:ORLANDO, FLA., March 27 /CNW/ - The SD Card Association announced todayat CTIA 2007 that the 5 million Japanese consumers who watch mobile TVprogramming on their phones -- and can record the programming with SDHigh-Capacity (SDHC) and SD memory cards -- will more than double in 2007 to12 million mobile TV viewers. Thirteen handset models feature SD recordingtechnologies today and three-quarters of all mobile phones in Japan areequipped with SD slots.
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Posted by R. Ouellette on 03/27
The Death Of Net Neutrality
 The Internet -- as we commonly use it today -- has been around now for about fifteen years. To say that it has changed the way we do things is to understate the obvious. Virtually every component of knowledge-driven human exchange has or will be influenced by this remarkable communications platform. The reason why is partly technical to be sure, but the underlying technology is not the only reason. If the Net had not been conceived of as a fundamentally democratic system where no node had dominance over another or no circuit hierarchical influence over a competitor, then it would not be as influential as it is today. The Internet has given us the power to change the world for the better through the rapid exchange of ideas and information. Look at the http://www.wikipedia.com as a classic representation of this ideal. Some economists and business theorists argue that the Internet represents one of the greatest wealth generating opportunities ever. All is not good in Net-land though. There are large corporate and governmental forces who don't like the idea that you can phone Australia for virtually nothing using your Skype connection or bloggers with open-source news networks, for example, can influence elections. It is funny how companies embrace innovation and "free market" ideas when they can dominate but revile those things when their companies have to change or be superceded. A few big companies do not want to be dissintermediated, so they've come up with a plan. Their scheme goes something like this: You will have to pay more to ensure your circuits can effectively carry VoIP transmissions. Or, certain kinds of content will only be available to you if you pay more. Right now, everyone has access to the same content. If those arguing for a tiered system get their way (...read more...)
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Posted by R. Ouellette on 03/26
ICE 2007 Conference: CHUM U-Pitch
 The ICE Conference (formerly iSummit) is over for another year. Lack of electrical outlets and a usable wireless system capable of handling a geek-filled audience made live-blogging pretty well impossible. That said, this conference unlike, say, MESH, did not require live blogging. Why? Well, ICE 07's theme could be described as "How do big media companies monetize all this digital stuff anyway?" We are talking big, juggernaut companies like Bell, Telus, and Rogers who really don't need Gagglescape's help promoting themselves. Not that we hadn't heard the messages all before. Let's face it, digital media is now mainstream and is a money-making commodity managed by accountants who, by their nature, are concerned with the bottom line of the industry. The corporate presentations were trade-show stuff. Not to say many in the audience expected more. They probably didn't. But if you came looking for the latest Web 2.0 and social-networking trends you were left unsatisfied. Still, the organizers did a great job and the conference went on without a hitch. Lots of old friends reconnected and new friendships were made. At the end of it all I suppose that's the important message (along with there is money to be made in this industry and we - big companies - know how to do it). One event that snuck in some younger thinking was the CHUM U-Pitch challenge. Hosted by the always knowledgeable Amber Mac and including as a panelist TorCamp's David Crow, the presentations had a bit of that "American Idol" flavour to them. Who would win? In the end my favourite from the Murmur guys came second. Grand Prize Winner Where'd You Get That? by ChickAdvisor Inc. 2nd Prize Torontopia by Gabe Sawhney 3rd Prize Reach For The Starz by Digital Goldfish I'm off to OCAD's Mobile Nation Conference today. Stay (...read more...)
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Posted by R. Ouellette on 03/23
ICE 2007 Conference: Keynote
 I'm blogging the ICE 2007 conference semi-live from the Carlu in Toronto. Keynote speaker: Robert Sawyer, Futurist. Moore's Law is impacting media channels... In the next ten years we will have seven times more computing power than we have today. Small mobile screens are a stepping stone and will be around for about eight more seconds. Rate of change is ramping up exponentially - asymptotically which is ten years down the road. The future is VR. Storage capacities will become almost infinite -- think bigger and grander. This is a "Dancing Bear" moment. Initially cool but after a while you are not interested. Mobile is like that now. Aim high in what you are trying to do. Star Trek fan clubs are showing the incredibly high quality films. People on desktops doing professional special effects. Gap of VR and reality is closing. Soon simulations will be indistinguishable from reality. The creative and nimble will lead the marketplace. There is money to made in aggregation - like YouTube. However, we are competing with amateurs. Branding becomes enormously important in this kind of distribution. Brand yourself!!! The future is a drunken slut you can take home every night - you have to be prepared to engage with it. Think bigger, more open, and wider. Be a visionary. The future will be here before you know it. In the digital world there is infinite economies. It is no longer based on scarcity. GeoFencing is a ridiculous notion. We are trying to force the market backwards. "No media organization can cancel the future." U.K. quotation. We need an end to silo thinking... then end to things that we once considered separate. Find synergies or combinatorics. Broadband is the new crustaceous asteroid: today is the age of the blurring between the professional and the consumer.
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Posted by R. Ouellette on 03/21
OCAD Lands $360k For Mobile Lab
 Image from the John Street Media Corridor Project CD-ROM, 1995/6 The Ontario College of Art and Design announced earlier today that their Mobile Media Lab has received a $360 thousand dollar research grant from the federal government. OCAD plays host to next week's Mobile Nation conference, from March 22 to 25. OCAD President Sara Diamond was instrumental in bringing this area of exploration to OCAD, and sees its evolution as essential to the near future of the Ontario and Canadian economies. She says, "Mobile media and communication is the future of entertainment, education, tourism and even health care provision. We're developing products that consumers all over the world - from the UK, to India, to Argentina - will want to use. We're collaborating with the best children's media producers in Canada on this project as well as top tier fiction and arts entertainment media. Imagine your computer game-playing child as an active physical participant in playing and learning outdoors with the help of a mobile device, instead of sitting at home." Just a follow up to the John Street Corridor project noted above: I designed the (...read more...)
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Posted by R. Ouellette on 03/16
Is The Early Stage Venture Capital Business Worth The Effort?
The last two years or so have seen an ebbing of Canadian venture capital activity in the early-stage sector. Why is that? The reasons are varied and too detailed to explore in one posting -- just read back over Gagglescape's numerous postings on the subject. The trend does seem to be influencing the entire sector and boils down to one basic principle: bigger deals generate bigger returns. Venture Capital legend Apax Partners typifies the trend. This week the venerable VC institution closed its doors to new venture investments in its new 10 billion Euro private equity fund. Here is what VCRatings has to say about Apax: The changing nature of the venture capital market is pushing some firms into a hybrid model. And the firms such as Apax that pursued the hybrid model are concentrating on private equity. The reason is to be found in the numbers. Apax's 4.3 billion 2005 fund has already returned 57%. No time to cultivate many, small deals when fewer, bigger ones are so lucrative. Of course this could just be a mature firm expanding into new markets as its ability to compete in them grows. The fundamental market need for early-stage funding hasn't gone away. What has changed is that the mechanisms to generate return on a capital investment have become so efficient that lower return/higher-risk markets are not as appealing to investors.
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Posted by R. Ouellette on 03/16
Natural Language Ads
 About six years ago I was working feverishly on an acquisition for thinkthinkthink Inc. Our target? We wanted to buy a company founded by a professor at the University of Toronto. That company used A.I. algorithms to create natural language based online ad placements. The deal fell apart after the Internet market meltdown. It turns out the idea was ahead of its time. Venturebeat.com has a story this month about "peer39," a New York startup that is using natural language and machine learning to increase ad conversion rates. That company has raised $3 million from New York-based Dawntreader Ventures according to chief executive Amiad Solomon. Natural language is the holy grail of the online ad industry as most everyone in the industry realizes that the next surge of revenue growth will be from non-geeks -- people who are not comfortable with the existing Internet. Former digital titan Xerox is creating a Google-killing natural search engine according to Endless Innovation: "A subsidiary of Xerox has signed an agreement to jointly develop and license search engine technology that they hope could lead to the next Google or Yahoo!. The agreement between Xerox’s Palo Alto Research Center and Powerset, both based in California, includes a long-term collaboration and technology licensing, with the Xerox subsidiary providing technology in exchange for royalties and an equity stake in Powerset. Is there a company in Canada working in this sector?
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Posted by R. Ouellette on 03/14
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Local News
Kensington Capital appointments Graeme Johnson to Managing Director and member of the Investment Committee.
Geosign makes Brandon Nussey Chief Financial Officer. American Capital Strategies Ltd. acquired a $160 million minority equity stake in the Geosign Group of Companies, a Guelph firm. The Ottawa-based maker of Ethernet wireless technology, DragonWave Inc., announces it led a preliminary prospectus with securities regulators. Ventures West announces Kenneth Galbraith joined the firm as Venture Partner B.C. companies attracted the greatest increase in venture capital investment in all of Canada last year -- Ontario falls behind as Canada's economic core moves west. Wellington Financial provides $5 million financing for SimEx!Iwerks. The $5 million debenture financing will provide the capital SimEx!Iwerks requires to pursue additional attraction co-ventures. JumpTV (AIM:JTV) (TSX:JTV) announces a proposed public offering of common shares in each of the provinces of Canada. Canaccord Capital Corporation and Morgan Stanley Canada Limited are the joint bookrunners of the underwriting. CI Financial Income Fund ("CI") announces a take-over bid for all of the outstanding shares of Rockwater Capital Corporation ("Rockwater"), and Rockwater has agreed to support the offer. The offer will be made at an offer price of $7.65 per Rockwater share. Four Seasons Hotels Inc. announces it will implement the previously announced proposal to take Four Seasons private at a price of US$82.00 cash per Limited Voting Share. The transaction values the Four Seasons at US $3.8 billion.
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