The pitch had seven figures written all over it.
It would put Calgary-based InnerSell into the major leagues, meriting attention from the same U.S. venture capitalists who helped transform Hotmail into a success story.
But InnerSell founder Craig Elias almost gave up on his proposition of taking his fledgling Internet-based service to the next level via a competition launched by Silicon Valley’s Tim Draper, whose goal was to find the next billion-dollar idea.
Elias refined his proposal – an online selling network that brings vendors and sales agents together to solve customer needs – with the help of Calgary Technologies Inc.’s Concept to Capital program, a 12-week program to help early-stage technology companies develop effective investor presentations.
But after pitching the idea to California-based venture capitalists Draper Fisher Jurvetson (DFJ) last fall through a live videoconference staged by CTI, it momentarily appeared as if Elias had struck out.
He had heard nothing by the time the winner was supposed to have been announced, and was ready to destroy all hard and soft copies of his submission. The response, when it finally did arrive, was not what he expected.
“The comment back was that it’s a fascinating business and that he (Draper) would like to see it succeed,” said Elias. “I was ecstatic.”
For the first-time entrepreneur, the sense of validation was incredible. “For a year and a half, I put my life on hold to grow this business. I leveraged every relationship and financial resource and it was all worth it.”
Ironically, after finding out that InnerSell was a winner, Elias was low on cash and had to scramble to get down to San Francisco. He ended up using a friend’s points to fly down.
Now, however, with substantial financial backing from (DFJ) – which boasts approximately $3 billion in capital commitments and offices in major technology centres around the world – InnerSell is headquartered in San Francisco and has a call centre and development team operating out of Calgary.
The funding will allow for a product relaunch and rollout.
“We are in the midst of upgrading the application itself and putting in place the infrastructure necessary to scale the business across North America,” said Elias.
The company also plans to expand its hiring and intends to focus on building its network of sales agents and vendors.
Elias founded InnerSell on the principle that sales are more effective with a strong referral. With 15 years experience in sales and marketing, he felt there had to be a better way of making a connection.
“The best way to sell is to distinguish yourself from the competition,” said Elias. “Helping customers solve problems unrelated to what you sell is the best way to differentiate yourself and build the connection. Now sales professionals across North America have a resource to make that happen.”
CTI vice-president Rob Beamish is also pleased.
“CTI builds Calgary technology companies and it is gratifying to see our programs were so beneficial to InnerSell’s funding success,” he said.
