David Murdoch - NORCAT "Lived it Lecture"

David Murdoch

Entrepreneurship 101NORCAT

Background

• Passion for New Business Development– International Focus– Keen interest cultural impact on business

• Passion for Technology– Curious about technology– Interested more in how applied

• Passion for creating and archecting new businesses• Exposure to data collection and analytics• Strong exposure to operations and finance

Mitsubishi Corporation

• Heavy Equipment Division 1990– Helped operational establish MLP

• Established their Aerospace & ISS Department 1992– Spar Aerospace / Toshiba For space arm technology– Developed into relationship for Digital Camera’s

• Communication Sales Division 1992 - 1996– Independent Sales Division for Mitsubishi Cell phones,

Mobile Modems and fax machines– Deputy Division Manager

• Basis for a handset business CT2 Tech/Nortel 1995

Electrofuel/Electrovaya1997 - 2002

• Technology based R&D company– Market Entry in a capital intensive/mfgring environment

• Initial Strategy focused on licensing• Chicken-&-Egg Situation– Needed to demonstrate manufacturability– Productized into the PowerPad products– Shut-up and ship it

• Shifted strategy to manufacturing and distribution– With OEM interest

Fuji Graphics System2003-2005

• Leading graphics arts company– Under rapid shifts from analogue to digital processes

• Involved in product mix shift and organizational change– Sales team and product mix shake-up– Led to key CTP sales market expansion

• Gained deeper insight into the emerging potential for combining digital technology and analytics

Terminal Van Gogh2005-2008

• Small shop with unique blend of data management technology and direct marketing– Database marketing with variable messaging

• Strategic Relationship with Xerox– Creating high impact variable print campaigns for

leading corporations

Education Technology

• Early Stages of innovation• High Potential• Canadian Advantage• Tipping point? Developing Rapidly• Understand the Learning Outcome• Seek innovative business model that cuts adoption

time/sales cycle • Lower cost solutions• Increasingly global

ClevrU Corp2009-2011

• Started as a vision based on insight– How to teach a class of thousands using technology

• Intelligent, Multi-Lingual & Mobile Platform– Opportunity to scale an effective learning experience using technology

• Partnered with technology team – boot strapped proof of concept– ex UofW Distance Learning Lead– Adapted to support Mobile Video & real-time dynamic metadata

collection/analytics• Trials with WLU• Targeted emerging markets with the potential for greater rapid growth• Introductions with potential partners in China• Filed a Patent• Entered the Digital Media HUB in Waterloo

Government Support

• Advisory and Guidance– FedDev Program

• Office Space and Networking – Digital, DMZ & NORCAT– Disney Land for Entrepreneurs

• Community Networking– Wilfrid Laurier University

• Trade Commission and EDC– Agreements with China Unicom and China Telecom

China and Emerging Markets

• Immense Opportunity Mobile data infrastructure long-term based on better education access

• Difficult, but not insurmountable– With Partnerships and networking

• Start in Canada• Carrier Relationships• Renren Relationship

ClevrU Corp

• Raised capital in multiple tranches– $2m Equity Raise, $1m plus FedDev & SRED

• Strong Management Team• Strong Government & Community Support• Technology Consolidator – New Mindsets• Strong Management Team• Management Skill Sets and self reflections

Rayku Corporation2013

• Initial focus: Tutor Marketplace using a proprietary whiteboard• Partnerships for potential low CAC:

– Leverage volume– UofT, Kangaroo Math, TopHat

• Initially too focused on building a whiteboard• Challenge of matching real-time customers and 3rd party tutors• Recommended a pivot to focus on defined market (highschool

math)core expertise, existing technology with low overheads, potential for a high LTV sale and viral marketing for low CAC

Rayku Corporation

• Defined market with specific educational content needs and defined market characteristics

• Shift overheads to nearly zero• Outsource technology and us good enough off-the-

shelf solutions before investing tech• Play to the strength of the entrepreneur • Understand the LTV sale versus CAC and the

repeated sale• Seek viral structural or at low cost channel partners

Financing

• Beware of the VC financing option• Design a business plan financed through sales,

govt support programs, friends and family first• Increasing Role of Angel Investors• Some of the keys to investor attraction:– Well defined market, Traction, low CAC (Viral?),

large potential addressable market,– Edtech, BtoC is most interesting, BtoB longer sales

cycle potentially 2-3 years.

Shut up and ship it

• Start with baseline, proof of concept– Try to measure Cost of Acquisition– Usage patterns

• Adopt Lean Start-up principals• Focus on analytics• Try to achieve viral• Test in Canada, but look to the USA for

expansion opportunity