The firm developed a software-as-a-service product that gives clients the ability to launch a "crowdsourcing" or "crowdfunding" campaign hosted by Ideavibes and integrated into the client's website. Social media tools such as Facebook and Twitter drive traffic by spreading awareness and engaging more target groups.
Ideavibes' revenues are generated from $900 per-month subscriptions. Founder and CEO Paul Dombowsky says he projects revenues of about $250,000 in 2012, and hopes to eventually generate $2 million annually.
Crowdfunding allows the public to provide funds to startups or charitable organizations that are looking for donors to fund its projects, says Anastasia Valentine, CEO and chief strategist of Ottawa-based Sandbox PM, a reseller of Ideavibes' product.
She says small and medium-sized businesses are beginning to embrace crowdsourcing "to leverage the wisdom of the crowds," so they can refine products and business strategies, and receive feedback from their target markets.
Whether it's a shoe manufacturer getting opinions on its footwear, or a municipality engaging residents on issues, organizations can go directly to the source
Calling the crowdsourcing model a "niche" market, Mercury Grove CEO Scott Annan, who has experience in the crowdsourcing space, says large corporations represent a tougher market.
With established brands, large companies tend to be closed to outside input and instead hire consultants and specialists to develop business strategies.
Ideavibes was born while Mr. Dombowsky was working for Telus's marketing department, where he sought to engage input from federal government experts through a crowdsourcing project.
"There were lots of tools that were very expensive, from $5,000 to $7,000 a month, but there wasn't anything for that entry- or mid-level," he says. "I realized there was an opportunity to build something."
Mr. Dombowsky raised $30,000 during a friends and family round to get the company off the ground and received $5,000 from the Regional Innovation Centre to develop a demonstration product that could be used as a free trial over a 45-day period.
With a background in marketing, Mr. Dombowsky lacked the technical experience to build the platform, and decided to outsource development to Ottawa-based Lixar to ensure the product was commercialized quickly.
It was at that point that the company he left, Telus, became Ideavibes' first client.
Its community affairs department was searching for a innovative way to provide funds to charitable causes, and had heard about what Mr. Dombowsky was working on.
Telus worked with Ideavibes to launch Fundchange, a crowdfunding campaign in which the public can donate to non-profitable organizations for specific projects, says Shannon Gorman, Telus's national director for community affairs. The public raised more than $53,000 for charities across the country, with Telus matching the funds donated.
With the growing number of consumers basing purchasing decisions on issues around social responsibility, Ms. Gorman says giving back to the community makes good business sense.
"Years ago, (giving) was a nice thing to do, now it's a must-do," she says. "More and more we are finding that consumers want to do business with companies that really make an impact in the communities where they live."
Netting the large telecom firm as its first client demonstrates acceptance of the startup's technology, Mr. Dombowsky says. Telus is also a valuable reference account that was key to landing a contract with the City of Ottawa, which used the platform to engage residents on sustainability, he adds.
Ideavibes has also used partners such as Sandbox PM and other firms in Calgary and Toronto to act as resellers, building channels that will accelerate its growth.
"We see (business) opportunities growing because people are realizing that instead of hiring experts, sometimes their best answers can come from their customers and prospects as a way to come up with new features for their products," he says.
