Pioneer in mobile VoIP solutions, and CEO of RingCredible, Hans Osnabrugge, was kind enough to take the time to answer a few questions about his company and why he chose Canada as the location for the company start-up. He also shared some thoughts about current and future opportunities for technology based start-up companies basing themselves in Canada.
Thanks to Hans Osnabrugge for his time, and for the very informative and comprehensive responses. They are greatly appreciated.
What was the background to forming your start-up company RingCredible?
Hans Osnabrugge: We saw a need for a VoIP application that was practical, affordable, secure and reliable. There was no good way to make high quality, reliable and inexpensive calls while at the same time having the same user experience when making a regular phone call – that is, all other applications (our competition) force you and the person you’re calling to download an app and go through a process. We wanted something that was simpler, and that you could just start using without having to bother the other person.
Also we saw so many business folks using our competitor’s apps for business calls, but we felt that sometimes it looked unprofessional not using a regular phone or a conference line. We wanted to give users the opportunity to not have to announce to the world that they were using some online app to make calls – so when you call another person or into a meeting, it shows as though you’re calling from a regular phone.
Excellent
What need in the marketplace does RingCredible fill?
Hans Osnabrugge: RingCredible closes the gap between mobile providers and closed user group apps by offering everyone an opportunity to make high quality, reliable, and cheap calls, while at the same time offering the same user experience one gets when making regular phone calls. No one was out there offering this same combination of benefits, or hides some parts of it in a larger process which does not make it streamlined or user friendly (like Skype-Out, not user friendly and unnecessary expensive).
You chose to establish RingCredible as a start-up in Canada. Why did you choose Canada?
Hans Osnabrugge: There’s a huge opportunity for disruption in the telecom market. The current Telecom climate in Canada is one of the worst in the world. There are not many countries left where both caller and receiver have to pay for a call. Also, calling rates are extremely high, specifically when you look at domestic short- and long distance rates. For this reason, we feel that Canada is ripe for disruption of the telecom space by start-ups, and we wanted to start here first because there’s a huge need for this. There’s also fantastic access to internet and free WiFi with 3G/4G and impressive smartphone/tablet penetration. These are a few of the things that really impressed us about Canada.
Why is Canada looking so attractive as a high tech alternative location to Silicon Valley?
Hans Osnabrugge: A few different points, all focusing on the fact that Canada culture is laid back, collaborative and inclusionary. It’s easier to become part of the tech community. There’s a big team building mindset here, and I feel that Canadians have the same work ethic and culture as folks in the Netherlands (Western Europe). Canadians champion innovation and collaboration and like to work together, with partners, and a team. I felt that it’s more inclusionary here - There is not that “not invented here so you don’t belong here” syndrome, that you sometimes see in SF – It’s also so much more laid back. There is so much competition in SF and a push to be first, all the time, to always be innovating, and always be top dog.
Mainly, the overcrowded market in SF makes it hard to build a team. Building a team is easier because there’s more available talent in Canada. In SF, the top talent is snatched up quickly
The US market is overcrowded with start-ups and entrepreneurs.
In Canada you also have the right atmosphere and more companies are open to revenue share deals if your product is new and good.
Hans Osnabrugge, CEO RingCredible (photo left)
You also chose to launch RingCredible at the Canada 3.0 conference in Toronto, Ontario. Why did you select this venue to unveil RingCredible rather than the usual North American wide announcement?
Hans Osnabrugge: Because we joined the Dutch Trade mission with the Vice Minister of Foreign affairs and want to make more impact in the market than just another App. We can disrupt the market by not only our own marketing visibility, but also by partnering with already well-known Canadian brands. The Canada 3.0 and the trade-mission offered that great combination.
Your company RingCredible is one start-up tech launch in Canada. Are there other start-ups that have chosen Canada as their launch location as well?
Hans Osnabrugge: We know several Dutch startups that have chosen to launch in Canada instead of the U.S. SoSocio, which just closed a $600K funding round is next headed to Canada (they’re one of our startups as well). Layar, an Augmented Reality start-up that's already made great strides by launching in the Canadian market. They launched in Canada.
Other Dutch startups that visited and set things in motion at Canada 3.0 include imgZine, Appsolute Value and Spotzi. They were all really excited to be here and to be entering this market.
What does the future look like, from your perspective, for continued high tech start-up growth and opportunities in Canada?
Hans Osnabrugge: Excellent. The government really supports start-ups with lots of excellent incubator programs together with the larger Canadian companies. For the next rounds VC’s in Canada have become more critical and there is only 1/10 VC budget if you compare it with 10 years ago.
I think it remains important that Canada becomes more self-confident about their own possibilities in combination with their open mindness to new and innovative partnerships.
Canada has great possibilities and should not compare itself to the US. We really think it’s a powerhouse on its own.
What advice would you give to an entrepreneur seeking to establish a start-up tech company in Canada?
Hans Osnabrugge: Start talking to government groups like the TechTriangle and set up partnerships and key arrangements.
What is next for Hans Osnabrugge and RingCredible?
Hans Osnabrugge: Worldwide expansion with the main focus on countries in which the Telecom market is in need of disruption. We have a proven tool which can help bringing the telecom expenses down up to 90%.
Really looking forward to that battle the coming 2 years.
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