Dr. Earl Azimov, a man with many talents: ranking tennis player, optometrist, serial entrepreneur, investor and the list goes on. Since 2003, we are lucky to have him as an advisor and board member on the PME committee. He has successfully started multiple companies one of them being Mamma.com. One of the very first search engines made available even before Google. Currently he is the co-founder of Global Clean Energy, where they transform waste into energy with hopes of obtaining a sustainable future. Earl has 20 years of experience in private equity, focusing on seed spatial investments in early stage companies. We had the opportunity to have a chat with Earl where he gave us some insight on what he’s learned over the years as a successful entrepreneur but also what he’s noticed about the Montreal entrepreneurial eco-system.

Q: You’ve had a very long relationship with PME. What are some of the changes you’ve noticed in the program then and now?

My answer to that is that the criteria for the access of capital from the PME fund has evolved over the years.  As the fund matured and new fund managers were selected, the quality of the start-up companies have improved as a result of the deep vetting from the fund managers. The understanding of what areas are best suited for PME have better developed. This has allowed for overall better structure and has boosted the quality of the services we provide to start-ups.

Q: How has PME contributed to the Montreal start-up eco-system then and now?

PME has been able to give young entrepreneurs access to capital that they would not so easily be able to get elsewhere. Not only do we give start-ups the early financing, we offer  mentoring throughout their entire process. In today’s entrepreneurial eco-system, it’s hard to find a place where they will give you this kind of financing and advice all at once. We really invest in the people that come because we really want to see them succeed. We give them the early seed capital they need and it’s not based on how much revenue they have. PME is the difference between success and failure. In addition, I myself am a mentor at PME and sometimes I’m given a business model where I help them pivot it entirely. I really like to invest in the person rather than the business. It allows me to see their skills and try to work with their model. However, if they don’t fit I help them pivot it and I’ve been successful in doing that almost every time.

Q: you are an accomplished serial entrepreneur.  What surprised you most about Quebec’s entrepreneurial environment?

As an entrepreneur starting out in Quebec, I found it very difficult. Many people will disagree but this is based off my own personal experience in trying to gain capital when starting my businesses. I’ve started many businesses here, and each time I’ve had to raise capital elsewhere in the world. This is most likely due to the lack of capital resources that Quebec has but also they are very shy in taking risks. I own one of the biggest search engines in the world and I could not even get a cent out of Quebec’s capital. I eventually looked elsewhere and was able raise about $25 Million out of Monaco.

 Q: As a board member and investor, you have seen many entrepreneurs pitch their ideas. What are some of the biggest mistakes people make when pitching?

Over the years, the biggest thing I’ve noticed is that entrepreneurs tend to exaggerate their financials projections and tend to under deliver. I understand that financial projections are just an assumption however, they need to be somewhat realistic and you need to be able to deliver. The dream is sometimes bigger than the reality. Business plans that are not realistic do not go well with the board. I understand you need to pitch the dream but we like to hear what the earliest revenue is and they need to be realistic.

Q: How do you recommend people prepare for a pitch? Any advice?

My advice is, the best way to prepare is to research who your competition is and what differentiates your company from theirs. Show the investors why your company is better than the rest and show them why. Also demonstrate strategic execution of how you’re going to accomplish this through your business plan. Having a good, thought out business plan is key in demonstrating how serious your business is.

Q: Looking back, you’ve seen many entrepreneurs succeed and others not so well. If you can give one piece of advice or a golden rule for an entrepreneur starting out what would it be?

If there is one thing I’ve realized over the years, the difference between success and failure of an entrepreneur is the passion they have. You need to have real passion for the business as this will keep you fighting through any obstacles that you will encounter. You need to believe in the business, yourself and believe that you will succeed. Having this faith in yourself is crucial at times when people might put you down and turn your ideas away. As long as you believe in yourself then you will be able to make it through anything. I’ve seen this a lot when people try to pivot their business. They don’t really believe they can do it or believe in what they’re doing which causes them to fail. What keeps you in the game is the pure passion. Passion and skill are the two key variables for success and the rest will follow.

I do not come from a wealthy family, I worked hard for everything that I have. Believe me when I say, I have had a lot of failures but I never gave up and that’s key as an entrepreneur. No matter what has thrown your way, you keep pushing through until you make it and you will eventually.  I’m used to fighting and I like to win, and that’s what it’s all about.

At each stage of its life cycle, a startup needs funding. No matter how great the idea is, its implementation requires certain resources, both financial and material. Thus, each startup gets to thinking how and where they can attract such resources. So, let’s see what startups need and what they can do to get it.

Angel Investors and Venture capitalists are often mentioned together when talking about gaining capital for your company however, they are very different. An angel investor is a individual who uses their own funds to invest in a business. Usually they are successful business people. Venture capitalists funds a business with a pool of money from a professionally managed fund. Angel investors are  individuals who contribute their personal money to support startups they find promising. Their primary interest is not only in receiving the return on their investments but also in wanting to keep the pace with the current trends and to share their expertise with younger entrepreneurs.

Venture capitalists, on the contrary, are companies and funds whose financial assets belong to other corporations or funds. In other words, they are responsible to their partners for the money they are prepared to invest into an idea, and this fact influences the approach they take to startup financing.

1. Finding connections

The best way to get the attention of an investor is through a mutual connection. Investors don’t want to meet you, they want to be introduced to you. They come by many start-ups just like yours bombarding their emails and voicemails. In order to get ahead of everyone else, the best way to attract an investor is by finding a mutual connection between the two of you and use that as your in. Being introduced to an investor through this mutual connection will give you a much better chance at getting a meeting with them or even to have them answer your email. Out of the many start-ups that come their way, the one that will peak their interests is the one that was referred to by someone they know and trust

2. Use your Network

Surrounding yourself with the right people will become useful to you and your start-up. Creating a network filled with credible people and other entrepreneurs will be advantageous because you can turn to them for help, or they can point you in the right direction. This will serve as an extremely beneficial tool. You can create a network of people by attending workshops, start-up events (ie Startupfest), accelerators or really any networking events. There are so many different events you can attend to that are made specifically for networking. So get out there and make as many connections as you can because you will not regret it.

3.      Find an investor that is also a partner, not just a check

It’s important to do research on the investors you want. You don’t want to reach out to an investor who has no experience in the industry your start-up is in. Firstly, you will be wasting your time reaching out to these investors because chances are they are going to turn you down. Second, it will become of more value to your start-up if you chose an investor who has a background that correlates with your start-ups industry. An investor who can help make your business stronger whether through advice or industry connections and knowledge will ultimately serve you better than an investor who has money to offer and nothing more. Look into each investor and research what other start ups they have invested in.

4. Have co-founders

When you approach investors, you’re not just selling them on your product or service; you’re selling them on your team. Having a good team in place will increase the chances at gaining the attention of an angel investor. It gives your company a bit more credibility knowing that it isn’t backed by just you. Not to mention, having a good team is more attractive as each member brings a different background that can contribute to the success of the company. An investor will be ore inclined to invest in a company that is able to deliver in every aspect.

5. Email

Once you’ve found your connectors, reaching out to them needs to be a sprint not a marathon. You need to set up the email in a way where you can get a quick yes or no response. Follow up within 4-7 days and if you get no response then you move on to the next person. Every email you send needs to be very clear and straight to the point. Everyone gets hundreds of emails a day so you need to be efficient with it. You need to have a clear killer subject line, make it short, forwardable. Give them an easy out therefore you get a quick yes or no response.

PME co-founder Stephen Bronfman, CEO of Claridge, weighs in on what we’re learning from this pandemic, and the mindset needed to get us through:

We’re gonna have to bounce back, like a lot of people have. I’m a glass-half-full kind of guy; I believe in people. I believe in resiliency and strength. I know we’re gonna get through this, and we’re all gonna have learned a lot. A lot about the basics of life, about ourselves, about our environment, about health, about family, about unity, about teamwork. And about pride. And I think we Canadians, Quebecers, Montrealers, deep down have a lot of pride.

Entrepreneurs are constantly searching for the big idea that is going to make them successful. There is a misconception that in order to start a business you initially need a great idea to start with. Rather than looking for ideas, you should be looking for problems and coming up with solutions. Stop brainstorming for weeks for an idea and start identifying problems that already exists. Brainstorming for solutions is so much more valuable and an efficient way to get a startup going. What is even more valuable is if you have a personal connection to this problem. Is this a problem that you, your family, your peers or even your community faces? Having this personal connection to the problem will be extremely advantageous to you. It will give you that drive and motivation that every entrepreneur needs to get a startup going and you’re more likely to offer a unique perspective. By having a personal connection, you will be able to identify if the solution you propose something that is somewhat viable.

Brainstorming

Brainstorming with friends is the perfect opportunity for you to start thinking about cofounders you might want to bring on. Finding people you can effectively trade and build ideas off is the perfect step to finding a cofounder. You will be able to identify how you work with them and if you get along well right away. Ideally, your cofounder should be someone you get along with and share the same values and goals. Brainstorming together will give you a taste of how you can work and build with them. Sharing ideas with friends is not just a good way to find cofounders but also an efficient way to find a problem, hear their thoughts, and get some validation.

Research

Once you have found a problem, try to think what kind of unique perspective you can bring to the table. It is helpful to research what other solutions exists and compare them to any ideas you might have had.  Identify the failures in the solutions that already exist by competitors. Evaluating what possible competitors are out there and determining how their solution can differ from yours can allow you to bring new ideas to the table that nobody else has done. How can you offer a unique perspective from the solutions that are already out there.

If a solution to your problem does not exist, then you should ask yourself why there is not already a solution. It might mean that your problem is not something that affects a big enough market meaning you will have to go back to brainstorming.  This is where having a personal connection can give you another advantage because it might help you look at the problem in a way that nobody else has seen it. What can you bring to the table that somebody else has not tried?

Don’t get Attached

It is important to remember the first solution you come up with or prototype you build is only the first step. Never become attached to your first idea as changes and adjustments are bound to be made, it’s part of the process. Never fall in love with the idea but fall in love with problem and the customers. Know that there is always room for improvement and do not treat your solution as the final product.

Hello,

Are you looking to kick-start your startup? PME wants to ensure you are equipped for the startup life. We have compiled the ultimate guide for you and all of your ambitious friends this holiday season.

We all have that friend who is anxiously planning for the future and foresees his startup making millions of dollars. In order to get the ball rolling, check out Ted Talks and partake in all of their wisdom. With enough information, you will surely conquer all the VC’s in Montreal. However, when you are at that big meeting, ensure that your pitch makes the cut by reading our guide to creating a perfect pitch deck beforehand. For all you data junkie out there, ensure you understand your metrics and watch your e-commerce soar!

We will be taking a holiday break at ProMontreal Entrepreneurs and will return with more exciting events and news in January. Wishing you a relaxing and restful holiday.

P.S. Please refrain from using plastic straws in your eggnog

If you have ever been on vacation, you will notice that most souvenirs available are all the exact same generic product. Not something you would want to bring home to your friends and family. A PME funded business, Main and Local put a stop to these awful souvenirs and created souvenirs that do not suck. Literally, their tagline is “souvenirs that don’t suck”. These souvenirs are made from a local perspective and offer a good laugh by incorporating the culture of the city into their products. Now the company has expanded outside of Montreal and has started selling in popular cities across the country.  Co-founder David Prince shares with us some advice on what he has learnt along the way. He also shares with us how he and his co-founders pivoted their company into Main and local.

1. What inspired you and your co-founder to start main and local? Why souvenirs?

The idea came when we worked on cruise ships and wanted to bring back souvenirs for friends and family. We realized there really was not much option and we did not want to bring back souvenirs that sucked for our loved ones.

2. How does main and local differentiate from any other souvenirs?

We like to make fun, clever and unexpected products. Our tagline is “souvenirs that don’t suck” and we stand by that. We try to come up with creative ideas for each product we make. Its not only for tourists, it is actually mainly for locals. We make souvenirs but from a local perspective. For example, for Montreal we make things about construction, poutine, smoke meat etc. Tourists understand as well.

3. Did your company go through any major changes/Pivot?

We went through so many major changes and pivots. It actually took us about a year of brainstorming until we came up with the perfect business idea. We came up with so many different things and finally we settled on licensing for local businesses. Basically the idea was  we would make a product for a local business, they would sell it in their restaurants, and we would sell it in our stores. We pursued that for about 6-9months until finally we realized there were too many issues around it. It did not seem like a real scalable model. Once we realized that, we decided to pivot. So, instead of creating a product about la banquise why not just do poutine and sell it around Canada. Pivoting was a hard decision to make but we were surrounded by the right people who pointed us in the right direction.

4. What were some of the biggest challenges you faced as a founder and how did you overcome them?

At first, I was very hesitant to quit my steady job and I had many responsibilities at the time. The biggest challenge was leaving that comfort zone and jumping into something completely new. From a financial perspective its hard to just make that kind of jump so make sure you have some sort of savings before you do take the risk because it will drain your bank account. It is definitely a risk worth taking. Being a founder is the coolest thing in the world. You’re not on the sidelines, your future is in your hands and it’s an unreal experience. It is an experience I would never be able to get working for somebody else. You call the shots and the risk is worth it.

5. What is the number one advice you would give to other entrepreneurs like yourself?

Everyday is a roller coaster. It is filled with many highs and a lot of lows. What is important is that you don’t get overly excited when your business does hit a high point because things can quickly change and hit a low point. It’s also important to not let the low points get to you either. Be ready for anything. Its mentally exhausting but you need to adapt and expect it to come. Not a lot of people are able to handle this kind of uncertainty, its really tough. However, as long as you stay focused and persevere, you will be able to make through anything.

6. What do you think is the most important thing every founder should be aware of?

Expect that it’s going to be really hard. I think most founders might underestimate how much work and dedication that goes into creating a business but it’s really tough. You wont get very far if you expect being your own boss means you can be doing 10 hour weeks and relaxing at home. By being a founder, I’ve learnt so much its insane. I learn more in a week than I would have normally in a steady job. Not only that but you learn so much about yourself and your capabilities. It allows you to push yourself to limits you did not even know you had. Stop procrastinating taking the leap because the longer you wait the more responsibilities pile up. You just need to go for it.

7. How has PME had an impact on your business?

PME is the best thing we have done in the business easily. I do not say this lightly, we really mean it they have been a tremendous help. From a financial perspective but they also gave us the validation that we were on the right path. I can’t say this enough, the mentors who have been helping us the past 4-5 years have been incredible. They would meet with us every week and help us make really big business decisions. These are entrepreneurs that have built multi million dollar companies and getting their feedback was crucial to our business.

Nothing ever goes as planned when starting your own business. There will be bumps in the road and you need to be ready for them. Your ability to deal with the high and the lows is what will allow you to make it to the finish line. The founders of Main and Local never gave up on starting their own business even if it meant they had to pivot. They had the right determination which lead them to creating the successful business they run today.

 

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Whatever your business choice, #PME can help make it a reality! Application window for fall cohort is now open. Deadline: October 23rd,2019 Link in bio 👆👆 * * ——————- **—————— #entrepreneurlife #entrepreneur #entrepreneurship #technology #accelarator #whypme #montreal #startup #startups #business #jewish #jewishmontreal #hussle #smallbusiness #funding #founder #entrepreneurs #PMEFundedBusiness #startupmtl #mtlstartup #jewishMTL #founder #VentureCapital #VC #womenfounders #founders

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