Author Archives: Daryl Hatton

Great news for a Friday afternoon…

It seems like forever since I posted my thoughts here – perhaps an unfortunate side effect of all the great things happening in our business that have been consuming my time…

Justin Smith reports today on his InsideFacebook.com blog that Facebook is planning to release “in the coming weeks” some major enhancements to their Applications Directory.

The features most important to us are:

  • The application directory is easy to find and applications are easier to locate within it.
  • The application’s About Page will now have the look and feel of a Public Profile page. This will improve the experience and familiarity our customers have with Public Profiles in general across all applications. Given that we run within Public Profiles, this is a big win for us i.e. free training.
  • Each application’s profile will support a Stream. This allows us to conveniently communicate with the users of our application from one central location.
  • The application directory will show each user applications their friends use. This will likely increase the viral spread of our application.
  • Applications “verified” by Facebook will have greater promenence in the directory. Given that we intend to have our app verified this will be a great thing for us.

These changes show Facebook’s commitment to applications and their desire to make their customers’ experience of locating and installing applications more professional.

I like it.

Facebook redesign annoys users – so what

There is a media frenzy brewing over user backlash against the new Facebook design. Over the next few days and weeks I expect we’ll see lots of virtual ink spilled to breathlessly describe how this is a crisis for Facebook. After all, this is a HUGE rebellion of millions of users.

Or is it?

There are certainly lots of people making noise that they really, truly dislike the new design. Even Nick O’Neill, an ardent Facebook blogger (allfacebook.com) and supporter, is reporting on the issue in this post. Michael Arrington, influential blogger on TechCrunch, reports in his recent post that 94% of the people taking a poll on the redesign don’t like it.

facebook-redesign-poll-results

facebook-redesign-poll-results-2

However, even the single digit millions of people who are expressing their opinion constitute less than 3% of the Facebook user population (and I’m being generous in my calculation). That implies 97% of the user population either doesn’t care enough about the issue to express their opinion, or more likely, is neutral or perhaps even supportive of the change. People tend to complain loudly when they dislike something but are much less vocal when they approve.

On the whole, most people in the world in varying degrees hate change. It is a natural consequence that change, which makes us have to look at things we thought we knew with new eyes, disrupts our busy lives and costs us time. The new Facebook design is making people change the way they work with a tool that they know and LOVE. That is uncomfortable.

I like the new design because I can see how it does good things for me personally and for my business and my customers. Fortunately, we are starting to hear a few people talk about why they like the new design so I know I’m not alone.

Regardles of whether people like the changes happening now, the issue goes far beyond the simple concept of what Facebook looks like. It deeply impacts how Facebook will make money and thrive as a business. Facebook needs to make some money at some point or everything they’ve built will come tumbling down. Simple ad-supported models are struggling right now and Facebook’s is not dramatically out-performing others. The changes Facebook is implementing to support much richer conversations between people and business in the social graph will provide significant revenue opportunities.

Robert Scoble (prolific and respected blogger) posted an article today responding to the buzz in the industry that Mark Zuckerberg (Facebook’s CEO) has told his staff not to listen to their customers. Common wisdom says the “customer is always right” but, in this case, I agree with him that Facebook needs to stay the course and implement their vision. This will surely test Zuckerberg’s mettle and his diplomatic skills as he has to navigate through what might be some pretty choppy water.

It is somewhat ironic that the platform that Mark has created is giving his detractors an amazingly powerful pulpit to attack him from. I hope people will start to look beyond their petty grievances to see how these changes might be positive for them in the long term. I think he is on the right course and I hope he succeeds because his vision is making great things possible for our business and our customers.

We’ve moved!

It was a busy week last week – we picked up and moved the office!

Previously we shared some space with Time Search Inc. but changes in their situation made it apparent we needed to move. We have agreed to share some new office space with a public software company called Meridex.

Sharing space is a great way to save some money but more importantly boost the energy in the office. They see us making things happen and take energy from that; we see them making things happen and it boost our energy and excitement as well. The office is rockin’!

Our new address:

#320 – 321 Water Street
Vancouver, BC V6B 1B8
+1.604.688.1886


View Larger Map

Here are some photos of the new space. As you can see, it is typical Gastown “quaint” with exposed brick walls, glass walls, post and beam construction and a view of the harbour.

 

Big office

Our “big” office – space for Daryl, Natalie and Luba (top right – our 4th year UBC Sauder School of Business intern). There is more space to the left…

 

Fish bowl

The “fish bowl” so named for the glass walls on either side. Here you see Christian on the left and parts of Daniel on the right.

 

Common space

The “common area”. Meridex has two thirds of the space and uses this area for their interns.

 

View to the right

The view out the window looking North towards downtown North Vancouver. You can see the SeaBus on the water and bits of the helipad at the bottom of the screen.

 

Working harbour

The view towards the North East. You can see Seymour Mountain in the background, a tugboat on the left and the cranes loading a ship on the right.

 

Canada Place

The view towards the North West. Canada Place is on the left (the roof that looks like sails). There are obviously railyards between us and the really pretty stuff but we don’t notice them that much during the day. You can see the SeaBus pulling into the terminal on the right. Grouse Mountain towers over everything on the top right and you can just see the twin peaks of The Lions jutting out behind the sails.

I think we are going to love this space…

Great news on the investment front

I’m pleased to report that we have been approved as an Eligible Business Corporation (EBC) under the British Columbia Small Business Venture Capital Act. This allows us to arrange for generous tax credits for our investors who are BC residents. We are authorized for up to $2,000,000 of investment under this program.

To quote from the BC Investment Capital Program Guidelines:

Individuals who purchase shares of an EBC are eligible to receive a refundable tax credit equal to 30% of their investment amount, up to a maximum of $60,000 in credits per taxation year.

The program is also available under slightly different although still generous rules for BC corporations.

What does this mean in simple terms? Investors who live in BC and who buy shares of ConnectionPoint can get a substantial portion of their investment back within approximately one year i.e. after they file their tax returns for this year (2009). If investors move quickly, we may even be able to acquire tax credits for the 2008 tax year as there are very small amounts available to us from the program run last year.

In fact, we’ve had one investor already take advantage of this on Monday with a $150,000 investment that should give back a $45,000 tax refund in the next few months as their 2008 tax return is processed. This in no way affects the potential return on investment. What a great win for the investor and the company!

I’m very proud of how supportive our provincial government is of small startup software companies like mine.

If you are interested in taking advantage of this amazing program, please contact Daryl – 604.984.2466

Great article on Facebook “for adults”

Fortune magazine posted a new article on Facebook that has some fabulous facts and figures on the growth and appeal of Facebook to the more mature segments of the population i.e. NOT the school or college kids. Here is a little excerpt:

But these days the folks fervently updating their Facebook pages aren’t just tech-savvy kids: The college and post-college crowd the site originally aimed to serve (18- to 24-year-olds) now makes up less than a quarter of users. The newest members – the ones behind Facebook’s accelerating growth rate – are more, ahem, mature types like Lichtenstein (57), who never thought they’d have the time or inclination to overshare on the web. It’s just that Facebook has finally started to make their busy lives a little more productive – and a lot more fun.

Read the full article here.

When we started ConnectionPoint and the FundRazr project we anticpated that it would soon begin to appeal to our target demographic user (adults with kids). Frankly, while it is very exciting to see it actually happening, we have to admit that even WE are surprised it is happening so quickly. The growth in the platform is frankly astounding and yet continues to accelerate.

One of the best things about this growth is that not only are more people accessing Facebook all the time, these people are spending more and more time (169 minutes per month on average) on the site. The Fortune article discusses how our online lives are growing to resemble our offline lives in terms of the quality and quantity of our interactions. This point is key to our appeal to our customers; we will make our services available to them in the place where they want to “hang out” online. This convenience factor is a big competitive advantage for us and something we will promote strongly.

Tell us what you think of all this. Use the comments link below…

Survival mode – running startups in tough times

Here is a quote from an article by Brent Holliday, a Venture Capitalist, published in the January issue of BC Business.

How does this sound? I want to start a business. It will not make a dollar of revenue for 24 months. It won’t be profitable for four years, at least. It has no assets whatsoever. In fact, the only asset it will have four years from now is a highly subjective thing called intellectual property. Here’s the good news: once I am up and running and my innovative product has caught on in the market, other larger competitors will buy me out with a stupidly huge valuation. Oh, one more thing. We will definitely need to raise more money after your money runs out.

Are you in?

I encourage you to read the article because he has lots of interesting commentary on the process of starting up and financing a small technology company. The main thing that I take from his comments is that, in comparison to many technology startups, ConnectionPoint (FundRazr’s parent company) is in very good shape both from our approach to this startup phase and from the basic characteristics of our target market and our solution. We are building the business such that we should have our first dollar of revenue by July this year, as opposed to the 24 months out he quotes in his article. We also should be profitable with the next 18 months, not the four years that is typical for many other startups.

We also have an advantage that startups in previous years did not have of generous support from the Ministry of Small Business, Technology and Economic Development in the form of EBC Tax Credits. These tax credits provide an immediate 30% rebate of an investor’s qualified investment in our company for residents of BC. What a way to reduce the risk of an investment in a startup!

We are lucky to live in a province with such supportive venture capital investment policies…

I’ve heard there is a recession but I’ve decided not to participate

Daryl has set up a Facebook Group on a hot topic. Here is the description:

Bright Spot

Apparently the economists and other experts who, as a group, failed to predict the biggest recession in decades now feel qualified to predict it will last a long time.

They were wrong before and they are probably wrong again.

We need to avoid the trap of believing them, holding back our businesses and our lives and causing the recession to deepen and lengthen.

We can control what will happen if we play “our game”, not “theirs”.

Let’s ignore all the negative news, maintain our optimism and continue to run our businesses and live our lives with gusto.

Tell everyone you know that you’ve heard there is a recession but you’ve decided not to participate.

Share your stories of positive, anti-recessionary things happening in your business and in your life on these pages.

Invite your friends to do the same.

“Only Thing We Have to Fear Is Fear Itself” – FDR’s First Inaugural Address

Fear is contagious but so is optimism when helped along with enthusiasm.

Let’s make some good things happen


Come join us on Facebook by clicking here.

Facebook continues its stellar growth

The stats are out for last month and Facebook has continued its explosive growth. The global audience of people accessing the Internet has also grown and is now estimated to be over 1 BILLION strong. Of this gigantic audience, roughly 200 MILLION of them or 1 in every 5 people online visited Facebook last month. Another astounding fact hidden in here is Facebook grew over 10% MONTH TO MONTH in December.

This is huge. At this size, Facebook is the de facto standard in social networking. Given that many people visit Facebook daily or even multiple times a day, I think it confirms a trend that social networking is becoming a part of our daily lives, just like email did in the last decade.

For further commentary on this and references to the original statistics sources, read Michael Arrington’s column on TechCrunch.