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
