Shawn and Richard sell Quotiki

Quotiki, a great social quotes site started by Toronto locals Shawn and Richard, announced their sale today to Utora of Yaphank, New York.
I'm a big fan of what Richard and Shawn have done with Quotiki. They chose an interesting little niche to focus on, quotes, and went about creating the best site on the web for quote lovers. I think their pragmatic approach of deliberately focusing on a smaller, under served category for their first major project together was a clever strategy. I'm looking forward to seeing what they do next!
Congratulations Shawn and Richard!
BTW - Does anyone know who Utora is? And why they're based in Yaphank?
What a startup can get out of the Mesh conference
I'm sitting here this afternoon reflecting on the Mesh conference, which was finishing up this time last week. I had an unbelievably good time and got a lot out of the 2 days (and nights). In particular, our startup benefited a lot from Mesh.
If you are running a startup yourself, here is a short guide to what you can get out of Mesh next year:
1. Knowledge
This is an obvious one. Pick your sessions carefully and you'll walk away with some valuable startup tips. In particular, look out for any workshops relating to the basics of setting up a business - funding, legal issues etc.
2. Contacts
Another obvious one. Mesh might be the biggest opportunity of the year for Canadian tech startups to find your next adviser, lawyer, partner, employee, landlord, client etc. Make sure you share cards/details and remember to be nice and email your new friends in the days following the event to say hi.
3. Energy and excitement
I find Mesh like a shot of adrenalin. I have so many inspiring conversations that I leave the conference FULL of passion for my business and for my life. This kind of excitement can fuel you for months.
4. Feedback
Mesh is full of smart and experienced tech minds. This is a great environment to quietly, and respectfully, pull someone aside and ask if they would like to see your prototype product. A quick demo is almost sure to get some constructive feedback that will help you improve whatever you are working on.
5. Media and promotion
Hundreds of blog posts are written before, during and following Mesh. Many people are genuinely interested in writing about new startups. If you seek these people out you might be lucky enough to grace the pages of some very well read blogs. There is also 15 Minutes of Fame - a great initiative to showcase Canadian startups.
6. Friends
Definitely the most important thing I got out of Mesh. I met some wonderful, smart, generous people this year, as I did last year. When you are getting a project off the ground having good friends is invaluable. Be friendly, approach people and make sure you buy a few rounds at the bar!
See you next year!
Photo: Rob Hyndman (Mathew Ingram talks with Michael Arrington at Mesh).
Avoiding the hype cycle
Startups and hype seem to go together like women in Vancouver and yoga pants - they're inseparable.
Women might need pants, but my question is do startups really need tech hype? Do they always benefit from it?
Valleywag re-posted their hype cycle chart today...
This kind of technology hype is obviously important for companies targeting the web2.0 crowd. It will make or break brands like twitter, Joost and Justin.tv. But for companies with a different target why not stick to the tried and tested model: identify your audience and approach them with a compelling proposition and a solid product.
Sometimes I think startups are too quick to target the tech media, hoping for coverage and, well, hype. Maybe they think this is the only way? The classic marketer in me would ask: If your target audience isn't reading TechCrunch then why do you need a story from them so badly? Do you really need all of the visitors that will come from an appearance on the front page of Digg if they're not the type of customer that will stick around and make your business a success?
Of course all businesses have several target audiences, and one that IS reading the tech media are investors. So maybe my point is that there is a time for tech hype - and that some startups can get ahead of themselves. Let's see if I still agree with that in 9 months when I have been through a bit of a hype cycle myself ;).
Rent your games, DVDs and now parking spaces
Two cool companies I came across over the weekend (via Springwise). I guess you could add these to the Companies I Wish I'd Thought of Starting list, but I'm so wrapped up in GigPark I don't have that reaction anymore ;).
1. I Let You
Basic premise: Set up your own NetFlix style store and rent your games and DVDs to anyone that wants them. The company aims to give us access to the estimated 10 billion DVDs in American households. They are in private beta mode at the moment but I love the simple idea behind I Let You. People have, and create, a lot of value and this seems like a great tool for letting you monitise some of it. Which leads me to the second company...
2. Peasy (Parking made easy)
Basic premise: An online marketplace for parking spaces. Again, all of us have certain things that are worth money, in this case a parking space, and Peasy is a tool to help us monitize it. The company is based in the UK and, from what I can see, only offers spaces in England at the moment. I expect they'll export the idea to the US soon if they aren't cloned by someone else first. The business model? - Peasy tasks 12% commission on every spot rented, which works out to a pretty penny in a place like London where a space can cost thousands of pounds per year.
Lessons about pricing
Spanning Sync, the calendar syncing tool I mentioned a while back, came out of beta today and announced they were going to start charging for their product. I think they've done a fantastic job developing a helpful little app and deserve to make some money. What's interesting though is where they decided to set their fees and the instant reaction from their 18,000 current users.
Under the new pricing $25 gets you a one year account and $65 a permanent license. There is a 15 day free trial but no basic free option with a chance to upgrade later. The prices seem high to me. A one off payment of $20-25 is closer to what I was expecting, and what I would have paid.
So, first interesting thing is that they choose such high fees (keep in mind Apple iLife, with a whole host of complex applications, is only $79). Second interesting thing is the noise that their upset users have made. Check the comments here and here for the almost universal objection to the fees.
From a comment on the Unofficial Apple Weblog: "$65 once or $25 for a yearly subscription is well North of ridiculous. There's no way I'll even consider buying this product. The developer simply hasn't built that kind of value into it."
And from the Spanning Sync blog: "I have already uninstalled Spanning Sync. As lots of ppl say, price is outrageous. And I do think Apple will release some kind of Google sync service with Leopard, seeing that the collaboration between the two is becoming increasingly evident. Plus, what are the guarantees that the service won't stop working next week?"
It will be interesting to see the response from Spanning Sync over the next couple of days. Maybe they will lower the price and try to win back the upset users. Or maybe they will conclude that these users will never pay them and decide to target a different kind of user who sees more value in the product.
As we get closer to launching our web application (still a few months away I'm afraid) we are beginning to think about how much value we will be creating for different users. In our case the value won't be even. We expect many people will get great value from a free service but some will want to pay for premium features to access even more value.
One thing we will need to be very aware of, no matter what our pricing strategy, is the expectations of our users. If there is a lesson to be learned from the Spanning Sync example it is that you can never under deliver and over price in the eyes of your customers if you want them to stick around.
Tickets for the Mesh conference went on sale this morning
This was a fantastic event last year and from the list of confirmed speakers it looks like 2007 won't disappoint. There is a lot of buzz and limited tickets so register early.
Check out the Mesh blog for new speaker announcements over the next few weeks.
Google Apps launches today for small business, families, schools and maybe our company.

Google finally announced their Apps bundle last night. Essentially they've rolled their calendar, docs, spreadsheet, email, IM and web publishing products into one hosted bundle with 10 gigs of storage and 24 hour phone support. Schools and families get it for free and small businesses pay $50 per account per year - but there is a free trial until the end of April.
We're looking for a few little tech solutions for our company at the moment: email from our URL, file sharing, shared calendar, a wiki. I'm not sure if Google Apps with match exactly what we're after but generally it looks like a pretty compelling package for a small business - especially if you can sign up for this in place of Microsoft Office and save the purchase and upgrade costs. A PowerPoint product seems to be all they're missing really but I'll bet Google announce a product launch or an acquisition of one of the existing tools before the snow in Toronto melts.
UPDATE: Mathew Ingram has a good post about Google Apps over here. "To me, the missing piece is still some kind of offline app that will cache documents for when Internet access isn’t available, like Zoho is doing. Google’s Office suite (let’s call it what it is) might be fine when you’re at HQ with a T1 line, but what about when you’re in a regional office in Poughkeepsie, or on the road?"
While I'm talking about tech tools for a small office I should mention SpanningSync again - the little iCal:Google Cal syncing product I tried out a few weeks ago. The conclusion: A+. This little tool makes my life a heck of a lot easier. No more logging into Google Cal every time I want to add an event to our shared company calendar - just pop it in iCal and hit 'sync'. I thoroughly recommend this for anyone using iCal.





