LVNMC prepares for self-sustaining future after Ontario MEST seed funding expires

Toronto’s Liberty Village New Media Centre (LVNMC) says it’s developed a plan for staying in business without having to compete with the private sector. The centre – which last year received $1 million from the Ontario government to help fast-track new media startups to commercial success – will rely on multiple bundles of professional development sessions, consulting, referrals, IT services and facility rentals to sustain itself when the government money runs out in April 2003. Kathrine Brown, executive director of the centre, told Canadian NEW MEDIA that it will likely release its business plan in late October. The group’s board of directors and committees are currently studying the plan and finalizing its details. After five business months dealing with about 100 client transactions, Brown says the board recognizes that a market exists for the centre’s offerings. To date, the centre has secured a sponsorship from Redline Solutions Inc (a startup run by former Call-Net Enterprises Inc executives Juri Koor and Andy Krupski) for their detailed billing software and started a community portal. The group has also developed proprietary supporting software, run a series of professional development sessions on financing and operating a new media enterprise, and greatly expanded its network of contacts through sponsorship of events such as the Canadian New Media Awards. In-kind sponsorships received from a variety of companies within the new media cluster (excluding the founding partner contributions) now total close to $150,000. Over the course of that time, the centre has also made considerable in-roads toward achieving one of its primary goals of greater networking in Toronto and across Ontario. More than 130 registrants are using the LVNMC Virtual Business Gateway collaboration software provided through a sponsorship from Venngo Inc (Venngo was a recent winner of a $1.5 million CANARIE Inc investment. CNM, March 22/01). The centre’s offerings will include in-house consulting on foundation building and best practices for business. Where client needs exceed the resources or expertise of LVNMC, the centre will refer clients to third-party consultants or companies whose services could be provided at a discount. Consulting services will be bolstered with hosting services combined with the centre’s portal software, as well as with the offer of physical meeting space. None of these services, insists Brown, are intended to draw business away from for-profit companies. "If we do facilities rental, can we be perceived of as a competitor to a facilities rental company downtown? Our view is no because none of the services we offer represent a core business nor are we trying to offer the premium level services," she explains. "What we offer is responsive, entry level services to get you out of the gate fast. We are, in fact, pursuing strategic alliances at the premium level for all of our services. When these (startups) are ready – and we fully expect them to outgrow what we have here – when these companies are ready we want to push them out to (strategic partners)." The same, says Brown, holds true for its Internet services. She says the centre would prefer to move clients to a commercial ISP when startups grow to a certain size. "We’re trying to create companies that weren’t there before, and that’s where we draw the distinction. We are actually creating a client base for others." To maintain viability when weaned from public funds, LVNMC will offer tiered pricing that bundles selected services geared toward companies at different stages of growth. "If this model is successful, what we can ultimately do is approach other cities and say, ‘with this initial and finite investment, we can show you how to set up a self-sustaining centre that can stimulate economic growth in your new media sector without being a drain on your municipal and your provincial and your federal governments,’" Brown says.

LVNMC prepares for self-sustaining future after Ontario MEST seed funding expires

Broadcast | October 3, 2001

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