Gagglescape tracks the flow of venture capital and angel investment in a global economy.

Toronto Transit Camp Outwikinomics Don Tapscott
For anyone in the financial community who is interested in the potential of what Don Tapscott calls "Wikinomics," this weekend saw the Toronto technology community embrace the collaboration form to generate new ideas for the TTC's obsolete website. The one day event -- held at the popular Gladstone Hotel on Queen Street West -- brought together the TTC's top brass including Chair Adam Giambrone and Commissioner Joe Mihevic with some very smart and enthusiastic brainstorming participants.

Organized by many of the people who bring the city its successful BarCamp and DemoCamp Wiki-organized gatherings (David Crow - thanks), the Toronto Transit Camp is a case study in how the "Wisdom of Crowds" phenomenon can be applied to difficult problems.

In his opening remarks to camp participants Jay Goldman, of Radiant Core, said the day would provide answers to these three questions:
How do we improve the dialogue between ttc and its ridership?

How do we apply the BarCamp group problem-solving model to other problems?

How do we build bridges between different creative communities in the city?

The day's events provided answers to the first question. It seems everyone left on a high knowing that they'd contributed to improving the city and "Bettering the Better Way." Mark Kuznicki, of ReMarkk Consulting, framed the day's events as an approach or system that can be used to tackle city-related issues. Here is an excerpt from Mark's blog:

This was an experiment in bringing BarCamp event practices, social media and online collaboration tools and community stewardship practices to the rest of the world - the real world. Web 2.0 obsessed technologists (this means you DemoCamp) often forget that technology is a means, not an end. Transit Campers were challenged to become city-builders and at the end of the day an amazing new community was born armed (...read more...)
[email this story] Posted by the editor on 02/05
Thinking Of Investing In China - Think Again
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Venerable Canadian business magazine, Macleans, has a sobering story this week about what can happen when a starry-eyed Canadian firm thinks China is the land of golden opportunity. It turns out that Canadian firms and their investments in the booming eastern economy are -- to say the least -- tanking. Here is a must read quote from a former Canadian trade commissioner that frames the story:
Canadians aren't exactly seasoned global traders to begin with, preferring to do the bulk of their business with the U.S., if they leave Canada at all. Their cautious, trusting nature is in sharp contrast to Chinese culture, where the word for honest, loashi, is a derogatory term meaning to be gullible or to follow blindly. "You're better off going to Vegas for the weekend," says Jim Sherry, a former federal trade commissioner turned consultant. "You'll lose money just as fast and have more fun."
[email this story] Posted by the editor on 02/02
Blogtv.ca: Live Video Blogging For Canadians
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Publicly listed Israeli company Tapuz has come to Canada to launch a new live video blogging service, http://www.blogtv.ca.

The service allows Canadians access to a live, video blogging social-network that is part YouTube and part guerilla broadcasting. Developed through a JV with Alliance Atlantis and Toronto's GS New Media, blogtv.ca is available now.

According to CBC.ca, "Users can list their video feed or broadcast under one of nine "channels" or categories that include music, sports, "games, sci-fi and fantasy" and even an adult content channel called After Hours."

The above screen grab taken at 7:30 this morning reveals that, not surprisingly, no one was live video blogging. This is an interesting idea that torques the YouTube model but blogtv.ca really needs to emulate their larger competitor's simple user interface. Blogtv's design looks vaguely Internet one era - definitely not Web 2.0.

While I wonder how much traction the fledgling company will get in the Canadian market in 2007, once mobile devices can stream video to the Net through wireless networks the long-anticipated era of grassroots, instantaneous journalism will have arrived. Who needs TV?


[email this story] Posted by the editor on 02/01
Industrial Capital Vs FInancial Capitalism
Since green and ethical investment has become a big part of the business news, I though I'd take the opportunity to look at some key drivers influencing the green economy. For those ex-economists in our audience, we offer the following discussion on economic theory. Enjoy. A critical issue facing the environmental movement is the way Western economies structure they economic policies. The world of high-brow economic theory has waged a pitched battle for about two hundred years over the benefits of Industrial Capitalism versus Finance Capitalism. Now, if you've read Janes Jacob's "The Nature of Economies," you know that the way we structure our financial markets can have a cause and effect relationship on the environment. Some feel that when FInance Capitalism won out in the 1970s the world took a turn towards complete environmental collapse.

I am not an economist and cannot claim any great insight into the clash between these systems. I have, however found a compelling essay that explains it well. Jonathan Larson is the author and this is posted on his website. (I am assuming creative commons copyright on this essay. Please go to Mr. Larson's site for more essays on his theories of "Elegant Technology ... economic prosperity through environmental renewal.")

Economics: A Matter of Life or Death by Jonathan Larson

(first posted at European Tribune, Jan 18, 2007)

When I took economics at the University of Minnesota in the early 1970s, one of my professors was Walter Heller. Heller was President Kennedy’s Council of Economic Advisors chairman and would claim, quite seriously, that he taught Kennedy Keynesianism.

In those days, the Keynesians were utterly dominant in academe and government. There were so many of them, they had subdivided into various schools. It could be argued that Heller represented the right wing of the Keynesian school. (...read more...)

[email this story] Posted by the editor on 01/31
Zone One Gives Toronto Competitive Advantage
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The eminent design futurist Buckminster Fuller once argued that modern buildings were so many fancy nozzles on the really important stuff of the city: the engineered services that are hidden below ground. While architects may take issue with being dismissed as mere stylists, Toronto just added another invisible technology to Fuller's modern city. Today, a city is not a world contender unless it offers a ubiquitous, high-speed Internet service. Now Toronto has one.

The international press is alive this week with news about Toronto Hydro's "Zone One" service. What has caught the attention of the world's geek community? It turns out that Toronto Hydro has unleashed a world-beating wireless system that boasts the fastest speeds of any competitive cities. Wi-Fi Technology writes:
Testing was conducted in mid-December by Novarum Inc., an independent consulting firm offering comprehensive broadband wireless advisory, analysis and testing services. Novarum is developing the first standardized benchmarks for overall wireless network performance. All of the North American wireless mesh networks were tested from a user perspective with industry-standard tools and methodology in Q3 and Q4 of 2006.

“We tested 41 wireless networks in 14 cities, and the performance of Toronto Hydro Telecom’s One Zone, delivering speeds of up to 5 Mbps bi-directionally, was stunning,” said Ken Biba, one of Novarum’s analysts. “One Zone’s performance is better than my broadband connection at home and, on average, five times faster than any of the other networks we tested. Most impressive was the fact that this exceptional performance is being delivered in the challenging environment of a dense urban canyon.”

Forget about Toronto's lack-luster promotional advertising, this is big news for the city and provides a competitive difference to businesses and cultural producers here. In the 21st Century, access to information is power. In that way Toronto Hydro's decision to give (...read more...)
[email this story] Posted by the editor on 01/29
Toby Heaps’ Davos Journal
Gagglescape's sister blog is http://www.corporateknightsforum.com. We have a series from the Davos World Economic Forum Conference that you may enjoy.

imageBy Toby Heaps: Editor of Corporate Knights magazine which publishes the annual Global 100 Most Sustainable Corporations list each year at the World Economic Forum.

----------------------------

Environment themes and their relationship with the economy, particularly climate change, are hot this year in Davos.

Case in point. Last night I was waiting outside the Belvedere, the main Davos Hotel where the glitterati gather at night. As I was running a little late and it was quite a long line to get inside the hotel through the security check, I wondered if anyone would notice if I budded a little. But when I noticed that the Premier of Quebec was waiting behind me in the cold line, my better instincts suggested that was not a good idea, especially in Switzerland.

The Premier and I were both heading for similar events. He was off to speak on a panel with UK Conservative Leader David Cameron on climate change and energy security, and I had a dinner to co-host. I was looking forward to the dinner for two reasons: to hear what the world’s leading investment bankers had to say on taking the good fight (climate change, human rights) to the political stage, and I was curious how the red-blooded Wall Street crowd (Goldman Sachs, JP Morgan, Swiss Re) would appreciate the 100 per cent vegetarian-meal I had ordered for all of them.

It turned out that the hi-carb but low-carbon veggie-lasagna was a big hit, but my dinner conversation was interrupted when a senior Canadian aluminum company executive had to go outside to answer questions from a newspaper survey on whether his company supported the Kyoto Protocol and what they were doing about it. (...read more...)
[email this story] Posted by the editor on 01/25
Global 100 Top Sustainable Companies
In case you missed yesterday's Globe and Mail, Corporate Knights' Global 100 got some good coverage. In cooperation with Innovest Strategic Value Advisors, Corporate Knights publishes a list of the world's top 100 most sustainable companies. Here is that list:

The 2007 List

The Global 100 list for 2007 (alphabetical | by country | by sector/industry)

(...read more...)
Company Name Country GICS© Industry
ABN Amro Holding NV Netherlands Financials
Accor France Consumer Discretionary
Adecco SA Switzerland Consumer Discretionary
Adidas Salomon Agency Germany Consumer Discretionary
Advanced Micro Devices United States Information Technology
Agilent Technologies Inc United States Consumer Discretionary
Air France-KLM France Industrials
Alcan Inc Canada Materials
Alcoa Inc United States Materials
American International Group Inc United States Financials
Atlas Copco AB Sweden Industrials
BASF AG Germany Industrials
Baxter International Inc United States Health Care
Benesse Corporation Japan Consumer Discretionary
British Airways PLC United Kingdom Industrials
British Land Company PLC United Kingdom Financials
British Sky Broadcasting Group PLC United Kingdom Consumer Discretionary
BT Group PLC United Kingdom Telecommunication Services
Cable & Wireless PLC United Kingdom Telecommunication Services
Centrica PLC United Kingdom Utilities
Coca Cola Company United States Consumer Staples
Daikin Industries Limited Japan Industrials
Daiwa Securities Group Inc Japan Financials
Denso Corp. Japan Consumer Discretionary
Dexia Belgium Financials
Diageo PLC United Kingdom Consumer Staples
East Japan Railway Company Japan Industrials
Eastman Kodak Company United States Consumer Discretionary
Electrocomponents PLC United Kingdom Consumer Discretionary
Enbridge Inc Canada Utilities
FPL Group Inc United States Utilities
Fresenius Medical Care AG Germany Health Care
Gamesa Corp. Technologica Spain Industrials
General Electric Company United States Industrials
Genzyme Corp. United States Health Care
Goldman Sachs Group Inc United States Financials
Google Inc United States Information Technology
Groupe Danone France Consumer Staples
Grupo Ferrovial SA Spain Industrials
Hbos PLC United Kingdom Financials
Henkel AG Germany Consumer Discretionary
Hewlett-Packard Company United States
[email this story] Posted by the editor on 01/24
Wharton MBAs Take On Silicon Valley
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For all you MBA grads out there who like me once dreamed of being great venture capitalists in an era where VCs are a vanishing breed, at least in Canada, then this story will give you reason to hope for the future of the industry. It turns out that the Wharton Business School has teamed up with the Utah based, student run, University Venture Fund. What is their objective? According to their press release:
Founded in 2001 at the University of Utah's David Eccles School of Business, UVF is an independent, self-sustaining venture capital company committed to the entrepreneurial education of students at participating universities . . . "We're delighted that students from the Wharton School are now officially on board," said Jared Hutchings, founder and managing director of UVF. "The Wharton team of students offers exceptional expertise from previous work experiences and brings a rigorous analytical approach that reflects the strong Wharton MBA curriculum, so they will be a great asset for us. And UVF can help the Wharton students gain venture capital experience in a very hands-on way. There's no better training than investing real money in real entrepreneurs."

Ah, the idea of investing real money with real entrepreneurs is something so foreign to the Toronto market that I wonder if anyone in our local investment sector remembers the risk-reward charts they once so carefully studied. Remember? In the right sector with the right team early stage risk can result in later stage rewards. Well, at least in Utah.

Want o know more about the fund?
Founded in 2001 at the University of Utah's David Eccles School of Business, University Venture Fund (UVF) is an independent venture capital firm committed to improving the quality of entrepreneurial education for a diverse group of students at its participating universities. The fund (...read more...)
[email this story] Posted by the editor on 01/23
Today’s Real World For Startups - Even In California
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Herman Miller's Aeron Chair - The former gold standard of Internet startups.

Last Sunday's San Francisco Chronicle explores the world of startups and venture capital. In turns out that the new generation -- Web 2.0 -- of geek entrepreneurs are better managers of venture capital than their Internet bubble predecessors. Understandable given the conspicuous-consumption spending of the late nineties.

Today's startups if they have Aeron chairs at all have either have their employees bring their own in or find them in sales:
Gone are the Herman Miller Aeron desk chairs and the other technocrat excesses of the late 1990s when dot-coms burned through money and hype, throwing lavish launch parties, staffing up quickly and spending millions on Super Bowl ads.

Emerging in their stead is a post-crash generation of stingy startups using ingenuity to minimize the cost of turning raw ideas into viable businesses.

They hire slowly and avoid using recruiters. They take advantage of plunging technology prices. They generate buzz by word of mouth. They establish overseas operations to lower labor costs. They scrounge computers and furniture from the free section of community Web site Craigslist. And, when they raise venture capital, they hoard it, fearful of blowing their shot at making it.




[email this story] Posted by the editor on 01/22
Cult Of Apple Design Music Video
For Gagglescape.com readers who just can't get enough of Apple's new products, we have this fan video from New York. Apologies in advance to James Blunt fans:

[email this story] Posted by the editor on 01/22
MIT Enterprise Forum Brings In eBay’s Jordan Banks
Do you want to find out what Canada's leading eCommerce company, eBay, has in store for the future? Join MIT Forum organizer Mark Lawrence and guests for what promises to be a one of the winter's top sessions. The MIT Forum is for everyone -- no need to be an MIT Alumnus. Sign up for the evening here.
Join Jordan as he describes the path that eBay has taken to its position of e-commerce leader in Canada, and how buyers and sellers alike are creating and building businesses through the eBay platform.  The event is interactive with participation and questions from the audience most welcome.  Jordan will also touch on the experience of introducing eBay to our unique market, as witnessed by the recent launch of eBay Canada’s French-language site; future trends in the modern dot com era; technology and convergence; and how eBay is adopting to rapid technological changes through the recent acquisitions and creation of technically innovative properties such as PayPal, Kijiji and Skype.
[email this story] Posted by the editor on 01/19
TSX Leapfrog Trading System
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The Toronto Stock Exchange announced this week that it will soon roll out its "Leapfrog" trading system. According to the TSX, the system is tailored to algorithm-based trading where near instantaneous data exchange is required. The system will outpace those offered by the NASDAQ and other major exchanges. Will this system result in more trading volume for the TSX? The Canadian Press reports:

An emerging Canadian competitor to the TSX responded that shaving transaction times is a basic function in an era when trading firms jostle for space in the buildings that house exchange computers in order to take advantage of shorter signal transits at the speed of light.

"Without wanting to get into the competitive aspect, low latency is just part of what you have to provide," said Richard Carleton, vice-president of corporate development at the Canadian Trading and Quotation System, or CNQ, established last year and promising a faster and cheaper alternative to the established markets.
Think of the importance of speed to profitability if firms fight to be in the same building as exchange computers. Millionths of a second count in arbitrage.

Why is algorithm trading so important? Here is an excerpt from a Newsweek story on the subject:
Trading algorithms automatically break up large orders into bite sizes and feed them directly into the market. But they can be tuned to execute almost any strategy. Some aim simply to capture the average price over a day, others to gain an edge by, say, trading more heavily at the opening and close, when volume is high, and less when it slows down around lunchtime. And they can be customized, for example, to sell stock stealthily over several weeks if a manager holds a 3% position in a particular stock and wants to cut it to 1%. Not only (...read more...)
[email this story] Posted by the editor on 01/19
Will Big TV Companies Launch Their Own Social Networks?
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Arstechnica.com has an interesting story about NBC's VP of Digital Innovation, Sab Kanaujia, and his on-again, off-again post on what NBC Universal is going to do to compete with upstart media companies YouTube and MySpace. It turns out that Kanaujia did not want to spill the beans so the post got pulled - except, it didn't. Thanks to Google cache:
It won't surprise anyone that my team at NBC Universal Digital Media is currently leading a major social networking initiative. I guess every online media firm is doing something in this area. We know we're already late. But unlike Fox, our approach has been different.

Instead of buying an existing social networking destination (Digital Media evaluated some candidates back in the summer before I joined the team), the decision was made to internally build the platform grounds up - we do have a few 3rd party partners to give us a jump start. The decision not to buy was mainly due to integration challenges and the inability of most of 3rd party social networking destinations to scale, a key aspect for a large media firm like ours.

Okay, we've all done this - hit the submit button only to realize we forgot to spell check or fact check or . . . In this case, we can guess that people at NBC did not want their tactics to reach the competition. That's the problem when blogs become the stream-of-consciousness tools they were meant to be, people say things that would never see the light of day in the print world. But that's fine. The transparency of ideas is building a momentum of entrepreneurship that will launch the next economic golden age; or, maybe it will destroy us. I wonder what Kanaujia thinks.
[email this story] Posted by the editor on 01/17
The Truth Behind Quick Decisions
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Many in the business community believe in Malcolm Gladwell's maxim, "Don't think--blink!" When a CEO of a company is well-versed in the issues and functions of their company, often decisions have to be made on a moments notice. Having insight in how to make better snap decisions can make the difference between success or failure.

Gladwell's book, Blink, was partially based on science and partially on anecdotal evidence. Yesterday, the BBC ran a science story that adds legitimacy to his argument. Researchers have determined that in some situations people make better decisions in a fraction of a second than they do when given time to study a problem:
Ten volunteers were shown a computer screen covered in over 650 identical symbols, including one rotated version of the symbol.

They were asked to decide which side of the screen the rotated image was on.

Given a fraction of a second to look at the screen, the subjects were 95% accurate.

But when they were allowed to scrutinize the image for over a second, they were only 70% accurate.

Dr Li Zhaoping, of UCL's Department of Psychology said: "This finding seems counter-intuitive.

All of this goes a long way in supporting those successful people who credit their success to so-called intuition. That is a very human trait: when we don't know the reason for something we assign it to a category that embraces the undefined.

The truth is we can prepare ourselves to make good, fast decisions. It is called hard work and preparation. Welcome to the future -- and the past.
[email this story] Posted by the editor on 01/11
iPhone Debuts: Sell Your RIM Stock
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We try not to be mindless promoters of the next cool gadget. Really. That said, there are some technologies that represent a sea-change in the evolution of information management. They can't be ignored.

The mobile communications appliance we have all waited for debuted yesterday at MacWorld. As a result, Research In Motion's stock dropped about the same amount as Apple's climbed. If you have not seen the new iPhone yet it is worth taking a moment to visit the Apple website for a tour of its features.

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The iPhone first is a beautifully designed piece of consumer electronics. It represents an evolution of the ideal that drives this remarkable company: think different and think simple (funny how billions of R&D investment can result in such a simple, easy to use device). In cultural theory terms, its lineage owes much to the boomer generation's embrace of a technological future as represented by Stanley Kubrick's seminal film, 2001. The black obelisk in that film - a perfect, black rectangle - represented in iconic form the combined intelligence of a superior race that through its technology begins the evolution of human intelligence (for you creationists in the audience the obelisk can represent god - your choice).

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Image from, appropriately enough, Hackers At Large

Kubrick understood the maxim that sufficiently advanced technologies resemble magic. The iPhone is that technology. Its easy-to-use interface and high-res screen combine cellphone and a usable Internet browser in one small, elegant package.

Of course, since Canadians live in a no connectivity competition zone, very few of us can afford the ridiculous charges this phone will generate for Internet access. It is time for an upstart competitor - Virgin, are you listening - to throw open the doors to affordable mobile Internet access in this country. Maybe the iPhone will drive (...read more...)
[email this story] Posted by the editor on 01/10
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Mapping App.
Empower your City.
Click here.

Local News
The inability to attract and retain talent as well as other human resources issues continue to be the biggest threats to corporate profitability in Canada, according to results of a survey released today by Accenture.

EnviroTower, announced it has secured $8.5 million in its latest round of financing to further accelerate North American market expansion of its unique, patented technology. The round was co-led by NGEN Partners of Santa Barbara, California a leading venture capital company in the U.S. Cleantech investment sector, and by initial investor, XPV Capital, one of Canada's foremost Cleantech investors.


Law firms Fasken Martineau DuMoulin LLP and London, UK-based Stringer Saul LLP announced that they will merge to create the first full-service integrated Canadian-UK law firm.

Little Geeks, a not-for-profit computer donation initiative, announced that it is ready to collect, refurbish and distribute used computers to underprivileged children in the Greater Toronto Area. A donation program like no other, Little Geeks allows donors (or "Donor Geeks") to directly impact their own community, by providing free computing technology and educational tools to children in their own neighborhoods.


Nortel's(*) common shares, listed on the New York Stock Exchange ("NYSE") and the Toronto Stock Exchange ("TSX"), will begin trading on a consolidated basis when the NYSE and TSX opens Friday, Dec. 1/06.

Hy-Drive (TSX-V: HGS) a Mississauga based company, announced that it has entered into a marketing agreement with HreinOrka Ltd. granting rights as the exclusive agent for Hy-Drive(R) Hydrogen Generating Systems (HGS) in Iceland.

Dynasty Gaming Inc. (TSXV: "DNY") announces that it closed a private placement of C$1,000,000. This offering, covering an amount in addition to the private placement for C$5,000,000 that closed on 17 November, resulted in the sale of 2,000,000 units (the "Units") of the Company at a price of $0.50 per Unit.

OnMonday Nov. 27th the federal government plans to announce major investments in state-of-the-art infrastructure for Canadian educational institutions.

Sutus Inc., developer of Business Central, has been awarded the Best Company in the Information Technology category at the 10th annual Canadian Financing Forum.

Celestica and HCL Technologies form joint venture.

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