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Regional Spotlights // Page 2 The tech sector in BC is as diverse as the province itself. From resource industry-inspired innovations in the North to the burgeoning gaming industry on Vancouver Island to the many vibrant startup communities, the growing tech sector is transforming our economy and our lives. The BC Innovation Council (BCIC) created this series of regional spotlights in partnership with the 13 members of the BC Acceleration Network (BCAN). These partners offer entrepreneurs support and resources, helping transform ideas into sustainable businesses. With this network of guidance and aid, technology and entrepreneurship throughout BC is able to flourish. Fraser Valley
SRCTec
3
Kamloops
Kamloops Innovation
7
Kootenays
Kootenay Association for Science and Technology
11
Nanaimo
Innovation Island
15
Okanagan
Accelerate Okanagan
18
Prince George
Innovation Central Society
22
Smithers
Bulkley Valley Economic Development Association
25
Vancouver
Foresight
28
Vancouver
Venture Labs
31
Vancouver
Wavefront
34
Victoria
VIATEC
37
November 2015 www.bcic.ca
Regional Spotlights // Page 3
Cultivating tech and innovation in the Fraser Valley >> A spotlight on SRCTec in the Fraser Valley
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way Surrey has in the last 15 years,” says Peter Briscoe, an Executive in Residence with SRCTec. Based in Mission, SRCTec has been working to foster a positive climate for tech business in the region, which has included the deployment of an Agri-Tech Venture Acceleration Program (VAP), corporate services for tech
business and valuable membership resources. BCIC spoke with Peter (PB) and SRCTec founder, interim CEO and Board Chair Raymond Szabada (RS) about the advantages of running a tech business in the region, who’s doing cutting edge work and what the future looks like in the Fraser Valley.
Photo courtesy of SRCTec.
ntrepreneurs and innovators, both new and experienced, gathered at the Sumas Regional Consortium for High Tech (SRCTec) for an Open House and showcase of the growing local tech sector. “This whole area between Maple Ridge and Mission will experience huge economic growth in the same
What did the Mission and Fraser Valley technology scene look like five years ago versus today? RS: Technology has always existed here. But if we’re talking about support for the technology sector—in terms of incubation, accelerators and other support for commercialization—that was pretty much non-existent. Yes, tech is integrated in many businesses across the region; however, the infrastructure that we’re putting behind the sector now is relatively new.
Regional Spotlights // Page 4 I came to the Fraser Valley in 2006, and I saw tremendous potential for the region to leverage. Peter and I feel the same way on this: We have a quality of life out here that invites tech entrepreneurs, so we’ve both wanted to get behind the sector as a whole. We want to promote clean industrialization especially, as opposed to just factories and mills. This is what led us to chart a vision in 2007 to leverage tech in local industries like manufacturing, agriculture and potentially aerospace, which are prominent here. What has spurred some of the evolution of this change? RS: A lot of this development has been initiated by the fact that more and more people are moving here. As the cost of doing business in the core of Vancouver gets to a point where many people can’t afford it, entrepreneurs are setting up shop outside of the city. Entrepreneurs are typically between the ages of 28 and 45. These are folks who want to have families and a house. It’s just not feasible in the core anymore. Another significant driver is the Abbotsford International Airport. We’re plugged into international markets from that access point. Our close proximity to the border is another big advantage. If you think about it, you can service the entire northwest and southwest of the United States, down the coast and all the way to San Diego. All of those things have been contributing factors in the changes—tech and business related—that we’re seeing.
What are some of the challenges? RS: We want to secure a truly local pool of investment dollars for new ventures, but obtaining funding is still a challenge. Another challenge is a need for skilled technical training and education in the area. We need this to ensure that if we attract significant tech based investment that there is enough fuel in the tank—people and resources, in other words—to drive the region forward. Those are the primary challenges on our radar, and we’re putting strategies in place to mitigate them. We are launching a tech jobs portal for the Fraser Valley that will attract qualified candidates. We are also working with SFU to build IT industry prep programs for kids as young as Grade 9 and 10 to motivate them to pursue a career in technology.
Photo courtesy of SRCTec.
Can you mention some additional advantages of doing business in your region? PB: Beyond lower costs, we have the new University of the Fraser Valley, which was formerly Fraser Valley College. In addition, the Surrey campus of Simon Fraser University is a great access point for talent and a potential industry driver for commercialization.
Regional Spotlights // Page 5 Who are some of your biggest and most cutting edge companies? RS: Stream Global Services, now owned by Convergys, at one point employed up to 1,200 tech workers. Their focus is business process outsourcing, and while I wouldn’t call them very high tech, they provide a great platform for people to get in tune to the idea of having a tech career. i-Open Technologies is developing speciality applications in the area of asset management, work management and mobile applications. i-Open currently services the municipal, oil and gas, and commercial real-estate sectors. Domain 7, based in Abbotsford, is doing amazing work in web development. And as I go through the lay of the land, I come across all kinds of entrepreneurs and companies that have a lot of potential and who are doing great things including: • New World Technologies, a leading edge supplier to the aerospace industry based in Abbotsford. • Cascade Aerospace, who are also doing significant work in engineering and materials management in aerospace. • Lumex Instruments, based in Mission, develops analytical procedures and instruments for industries ranging from agriculture to pharmaceuticals. • ATD Waste Management Systems designs processes that convert waste products into new uses.
“The idea they have has
to be sound.
SRCTec Program Manager, Mike Manion. Photo courtesy of SRCTec.
What are the factors that contribute to the success of your Venture Acceleration Program companies? PB: The idea they have has to be sound. And secondly, the entrepreneurs have to be the type of people who are coachable and will consider what their Executive in Residence is telling them. There are entrepreneurs that have a good idea and they’re executing, but they don’t accept advice. They must understand that they don’t know what they don’t know. They must listen to people that have diverse experiences to draw from and can provide insights to help take their business in the right direction.
Photo courtesy of SRCTec.
Regional Spotlights // Page 6
Where do tech companies go for resources and support in the community? RS: At this point, this part of the community is young, but we’re lucky that our Board is formed entirely of technology entrepreneurs. That’s a starting point. Outside of SRCTec, through our Board there are many contacts to leverage and a network to draw from. In addition, we’re working on initiatives to attract both government investment and private equity. But we must still recognize that we are very young as a burgeoning tech community. Tell me something unique about the region that most people outside don’t know. PB: One of the things we point to is our massive agriculture sector. The applied technology within that industry has tremendous potential. I think it’s becoming more apparent as we gain more momentum, but it’s definitely something that not nearly enough attention has been paid to in the Valley. What will the region’s tech sector look like in five years? RS: One of the things we’re already starting to discuss with BCIC is this pain-to-solution type environment where we’re not only going to look at ideas that come into the VAP, but we’re going to proactively target pain points that technology can alleviate. Then we’re going to encourage and promote entrepreneurism and problem solving, and we’ll leverage existing companies already out here to develop solutions to address that pain—and these solutions can be commercialized and then taken nationally and internationally. Part of our vision at SRCTec is to have a 15 to 20 acre technology park that not only drives innovation and incubation, but also drives research, technology transfer, skilled technical training and education at a much grander level.
Regional Spotlights // Page 7
Building a vibrant Startup Community in Kamloops
Photo courtesy of Kamloops Innovation.
>> A spotlight on Kamloops Innovation
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amloops Innovation was front-and-centre at the Startup Canada Awards ceremony in Vancouver. The BC Acceleration Network partner took home the 2015 Entrepreneur Support award. The accolade does more than bring greater awareness to the growing support
structure for tech firms in Kamloops. It helps showcase the depth and diversity of the innovation in the region, according to Dr. Lincoln Smith, Executive Director of Kamloops Innovation. “People from outside our region are often surprised at the level of sophistication and
size of the tech sector that’s being developed here,” he says. BCIC spoke with Dr. Smith about the region’s entrepreneurial evolution, leading innovators and common attributes of the top tech companies.
How has the Kamloops tech scene changed over the past five years? There’s always been a tech sector in our region, but in the past it was more fragmented. The successful tech companies in Kamloops weren’t necessarily working with or aware of the other successful firms. Today there’s a much stronger awareness of where we’re headed and a shared vision for tech development in our region. There’s a Startup Community being cultivated, and it’s clear that Kamloops is headed in a positive direction.
The strong partnership between Thompson Rivers University and Kamloops Innovation has also been a development that is producing great results. Students are starting companies, graduating, and hiring fellow students into exciting jobs in our region. Our¬ growth is such that we’re attracting technology professionals and founders to the interior from other regions in Canada. What is spurring this growth and evolution? Kamloops has always been an entrepreneurial city. There is a long history of the self-employed and entrepreneurs running companies here. I am seeing a surge in tech startups as technology becomes more ingrained in everything we do. What may have been traditional resource industries in the past, now have a great deal of technology woven through them. Resource firms, many of them in the interior, are the companies that built the province— and we have ready access to them here. Manufacturers are here. Head offices are here. Kamloops tech firms are taking advantage of that proximity. Startups serving these companies have a real advantage in being situated in Kamloops. What are some of the other advantages of building a tech firm in Kamloops? Beyond access to BC’s resource sector customers, we have a great asset in Thompson Rivers University. TRU is a research university that graduates 2,500 highly trained students every year in the region. That’s an extremely valuable supply of talent and ideas for someone looking to start or grow a company in our region. The university also provides research and development support. Another advantage of starting a tech company in Kamloops is the lower cost. Startups need to keep an eye on their burn rate, which is their negative cash flow. If their burn rate can be lowered, their runway is extended. We’re only a four-hour drive and half-hour flight from Vancouver. We can access what we need from the larger city centre, but we can do it in a place where it’s less expensive to have your day-to-day operation. It is important to realize that lowering your expenses does not come at the cost of reduced startup support or community – if anything both are intensified in a smaller tech centre. Can you talk about the challenges of growing a tech firm in Kamloops? A challenge for Kamloops and other smaller centres in the province is awareness of what is being achieved here. I have a lot of confidence that any company can be started and managed from Kamloops, but the key is ensuring everyone knows what’s possible. You don’t need to be in the largest metropolis; you can be entrepreneurial and access the right resources no matter where you are. There are resources and advantages that exist only
Photo courtesy of Kamloops Innovation. Brianne Sheppard Photography.
Regional Spotlights // Page 8
Regional Spotlights // Page 9 here and are not available in larger centres. Getting this knowledge out is a challenge, but as our companies grow and succeed, more attention will be given to these advantages. Tell me about some of your leading innovators. HummingBird Drones is a great story of two students taking advantage of entrepreneurial resources in the province. They participated in the TRU Generator, undertook the New Ventures BC online Market Validation Training and enrolled in the Venture Acceleration Program (VAP) at Kamloops Innovation. From there, they rapidly grew their company and product, and over the course of the summer did nearly $50,000 in contracts with the province. There are many other exciting companies including: • Lightship, a VAP company that produces an advanced productivity and safety application for worksites. • Truvian Labs helps municipalities track and visualize infrastructure, streamline data collection, simplify asset management and increase public engagement. • Sewllkwe Tracking Solutions uses technology to help communities manage and understand their water and waste water systems through improved data collection and analysis. iTel Networks, a firm that provides data, voice and cloud services to businesses, is an anchor tenant in our building that has been growing rapidly. It’s the kind of story that proves you can build great companies in Kamloops.
“It’s the kind of story that
proves you can build great companies in Kamloops.
Photo courtesy of Kamloops Innovation.
Beyond Kamloops Innovation, where else do companies go for resources or support? Kamloops Innovation is a hub for entrepreneurial support. If somebody doesn’t quite fit in our programs, we connect them with other municipal, provincial or federal support bodies. Futurpreneur is one example of another organization that we work with to help young people in Canada start a business. We also leverage the BC Acceleration Network that gives us access to many seasoned
Photo courtesy of Kamloops Innovation.
Regional Spotlights // Page 10
entrepreneurs and experts. We never hesitate to reach out to that network if we need specific expertise that we don’t have here. What are the common attributes of successful VAP companies? There are many attributes that entrepreneurs can benefit from, but in my opinion, there are three that they must have to be successful. The first is domain knowledge. An entrepreneur must be extremely familiar with the industry they are selling into and the problem or pain they are solving. Some individuals can pick this knowledge up fast, but it is a requirement for success. The next attribute is the ability to be coached and mentored. If you think you know it all, then you obviously don’t. Success is found through listening to other people’s experiences, avoiding their mistakes and welcoming discussion on your own business ideas. Last, they must be driven. Entrepreneurship is not easy; it’s extremely difficult. The people who aren’t passionate about what they are doing will quickly find themselves looking for something easier to do. What’s your vision for the future of tech in Kamloops? We see Kamloops becoming a globally recognized Startup Community. In the last three years, we’ve seen the community grow rapidly, companies helping and learning from one another and knowledge being funnelled back in to the community. In the next five years, you will see more of those activities, but at an increasing pace. Soon, technology companies selling into BC’s resource industries will be looking to Kamloops to set up operations or access programs and our networks in this sector. Companies looking for innovation in these industries will be looking to Kamloops as we export our products globally.
Regional Spotlights // Page 11
Lifestyle and innovation intersect in the Kootenays >> A spotlight on KAST in the Kootenays he Kootenay Association for Science and Technology (KAST) recently received $750,000 to build a new centre for Metallurgical Industrial Development Acceleration and Studies (MIDAS). The centre will provide technical training in metallurgical science, assistance for SMEs and formal support for the research and development of commercial applications.
Tell us what’s changed in the region in the last five years. EH: Before BCIC brought the Venture Acceleration Program to KAST, we were running a similar program for the National Research Council’s Industrial Research Assistance Program, which provided business coaching for technology companies and startups. We moved most of those clients into the VAP program and continued with the good work. We need to remember that growing a business is slow work. Our more viable companies have been at it for five to 10 years. They’re doing well now and it’s because they put in a lot of grunt work up front. I don’t
The community has been enthusiastic about the project, according to Erin Handy, Executive Director at KAST. “We have gotten a fair amount of interest from the general community, and that makes me very happy,” she says. “We had a walk-in EIT [engineer in training] who wanted to get involved with the centre the other day since he had read about it in the
newspaper. That’s the kind of thing that makes me feel really good about the potential for the centre.” BCIC spoke with Erin (EH) and Don Freschi (DF), an Executive in Residence at KAST, about their region’s unique technology community, the largest and most cutting-edge firms in the area and what the future holds for the metallurgical industry in BC.
KAST Executive in Residence, Don Freschi. Photo courtesy of KAST.
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Regional Spotlights // Page 12 think there’s a whole lot of overnight success anywhere. It’s a growth process, so we’ve just been carrying on. We’ve been fortunate that there have been some really impressive founders who have made a really impressive showing. Why would someone want to run a business in your region? EH: The West Kootenays attracts a really interesting type of person—people who are not risk-averse. They’re willing to leave a job in the city that pays a lot more money and move somewhere they’ll make less initially; that often entails inventing a job for yourself. There’s a pioneer spirit that pervades the type of person that chooses to move to a small community. They tend to be oriented towards a different type of work-life balance than people who live in an urban environment. These are people who really, really prioritize quality of life, particularly their ability to access outdoor experiences and maybe work a little less so they can enjoy their life more. Those are the people who tend to move here. They’re choosing the lifestyle. It’s a conscious decision. There are also lots of entrepreneurs who grew up here. There are lots of This place is in their heart. They know what an amazing entrepreneurs who grew up thing it is to raise your family in a small and helpful comhere. This place is in their munity and they build their businesses here because of heart. that.
“
Photo courtesy of KAST.
Can you share a couple of examples? EH: There’s D-Pace run by the Dehnel brothers in Nelson, BC. They make particle accelerator components. They’re local boys. They could work anywhere in the world, but choose to be here. There’s also Drop Designs that manufactures industrial components. They’ve developed a niche for engineering and advanced manufacturing for heavy industries like mining, forestry and power generation. They have a reputation for being able to creatively solve problems using componentry. Their founder is another local boy. He chose to make a life here. His brother runs Traction, a very successful CRM development company.
Regional Spotlights // Page 13 Are there any challenges for technology businesses? DF: You know, I don’t think there are any. A lot people say that finding skilled labour is a challenge. To get it can be tough, but with the right incentives—flexibility to raise your family and the ability to enjoy the lifestyle—it is enough to attract top engineers from other companies. In tech, as long as companies understand the new management thinking—that people and flexibility are number one—any tech company can be here. Who are the cutting edge and top companies? DF: The large local companies that really impact the region are many, and they include: • Teck Resources, which is Canada’s largest diversified resource company, focused on mining and mineral development. • Zellstoff Celgar in Castlegar, one of the largest single line kraft pulp mills in North America. • Interfor, one of the world’s largest lumber companies, has a Castlegar division. • AMEC Foster Wheeler, a major engineering firm that has an office in Trail. Those are the big players. I might call them the old school companies. But now you’ve got the up and comers like Drop Designs and other growing firms including: • Austin Engineering Ltd., an innovative, Trail-based engineering firm. • AquaDiversities, which provides water purification consulting services and equipment for small municipal systems. • Fenix Advanced Materials Inc., a new pure metals manufacturer. • Rossland Binding Company creates tech products for the ski industry, like wirelessly initiated remote release bindings.
When looking at your Venture Acceleration Program companies, what are the most common ingredients for success? EH: What we really want in a VAP company is somebody who is ambitious, but also eager to learn and eager to try things; they take out the nuggets of success from those actions, and then iterate until they get the right product. I think the companies that don’t do well are the ones that kind of come in married to an idea and when it’s not working, they stubbornly cling to their original vision.
Photo courtesy of KAST.
Nelson in particular is full of budding entrepreneurs. They have the right ideas; they just need somewhere to go and practice, and that’s where MIDAS will come in.
Photo courtesy of KAST.
Regional Spotlights // Page 14
Beyond KAST, where do companies go for resources in the community? EH: I’m personally a gigantic fan of the Community Futures network. That’s a group of business support non-profits primarily funded by the federal government through Western Economic Diversification. In our region, they do financing, which is really important for companies. The local CFDC network also houses the Basin Business Advisors (BBA) program, which is funded by the Columbian Basin Trust. It’s a business coaching and support program for small businesses, which make up a huge portion of BC’s economy. What is something really unique that people don’t know about the West Kootenays? EH: I think people would be surprised by how many unique companies we have here. We recently surveyed all the manufacturing and tech businesses across the region. Not only did we discover that there are 177 of them, but we also found that many business owners are not individually aware of the size of the technology community. We now have this brand and podcast, You Can Do That Here, which we use to showcase entrepreneurs who are using tech and innovating to make a living here. What do you see happening in the region’s tech over the next five years? EH: I hope for an ever-expanding definition of technology. I hope traditional industries seize on technology as a way of improving productivity, research and development, and spinning out new products and ideas. I would like to move away from this concept that technology is focused on the Internet. Technology is everywhere. It transcends industries. It’s in the mining industry; it’s in the forestry industry; it’s everywhere. What I would love to see for the Kootenays is everybody feeling like they could be a technology company. And how do you see MIDAS factoring in? DF: What I see in the next five years with MIDAS growing is lots of little companies spawning out from the centre. What I see is “Metal Valley.” I want to call Trail Metal Valley because of the amount of metallurgical industry work happening. I think we should brand it, similar to like Silicon Valley. When you come here, you do metals work, and you can live wherever. We want Trail to be a good little incubator and working town, spawning out all these little high-tech companies.
Regional Spotlights // Page 15
Innovation Island nurtures hidden talent >> A spotlight on Innovation Island in Nanaimo
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ntrepreneurs and tech leaders from Central/ Northern Island, Gulf Islands and the Sunshine Coast celebrated the region’s growing entrepreneurial achievements at Innovation Island’s Summer Tech Party. In its third year,
the event attracted over 80 guests to the German Hall in downtown Nanaimo, home to an impressive 350 tech sector businesses. “You create an environment for people to connect and network and amazing things happen,” says Paris Gaudet,
Executive Director of Innovation Island. BCIC spoke with Paris about the region’s growing technology ecosystem, the leading innovators and what’s next for the region’s expanding entrepreneurial scene.
Innovation Island Executive Director, Paris Gaudet . Photo courtesy of Innovation Island.
What did the tech sector in your region look like five years ago? The sector was isolated and disconnected. Entrepreneurs were doing great stuff, but in terms of education and awareness, the Mid Island Science, Technology and Innovation Council (MISTIC)—an earlier incarnation of our organization—wasn’t really meeting their needs. We had to focus on entrepreneurial learning and development. When you ask your communities and your entrepreneurs to give you feedback, you need to be able to do something with it—which is what we did. We made it a priority to be authentically regional in our work by catering to the 400,000 people who live in the 79 municipalities and eight regional districts that we consider our stakeholders.
In 2012, our organization restructured and refocused. We rebranded to Innovation Island Technology Association, and we launched our Venture Acceleration Program (VAP), which I really believe is what helped moved the dial. Engagement with entrepreneurs and community organizations really started, and all the work we had done to build relationships was bearing fruit. What are the advantages of running a tech company in the region? This may sound strange but for the most part, it’s that no one is watching us all that closely! We have some amazing hidden talent. While work-life-balance is hard for any startup, our region offers people the chance to enjoy what the area has to offer while not being overly distracted by the hustle and bustle of city life. It’s quite interesting to see who’s moved here and engaging with us. It’s super exciting because it really validates that the work we’re doing to support our entrepreneurs is having positive results. And what are the challenges? We have a big geography but a small overall population. Connecting people to resources is a work in progress. We all know that we're living in a time where successful technology entrepreneurship can happen anywhere. However, we must recognize that anywhere isn't exactly a level playing field. We coach our clients to do more with less, then to hit it over the fence when no one is watching! Who are your leading innovators? Are they catering to any industries? We have some amazing talent in robotics, hardware systems, agri-tech and the marine sector. Due to the success of VAP companies like VR-focused Cloudhead Games and SkookumScript, which specializes in gaming programming language, we’re also starting to get a name for video game development. There are many other companies making an impact, including: • Inuktun, a Nanaimo-based robotics company that is world-class. • VMAC, a manufacturer of underhood air compressors and engine throttle controls for light and medium duty North American built trucks. • Seamor Marine manufactures underwater robots and is working with NASA! • TradeTec provides software solutions for the forestry industry. • Resonance Software provides resource planning, tracking and compensation solutions through their WorkSight platform for some of the world's largest manufacturing companies. We’re really re-defining ourselves as a region. Here’s what I mean: I’m an island girl. I was born in Campbell River, and both my dad and grandpa worked in forestry. The legacy
Photo courtesy of Innovation Island.
Regional Spotlights // Page 16
Regional Spotlights // Page 17 of those industries is important, but in order for us to create sustainable jobs, for us to be able to diversify our economy, we need to focus on tech—because it’s the most important sector at the most important time. We have to ask, “How can we utilize innovation as a means to increase efficiencies within the core sectors that have been the fabric of our region?” We don’t want to get rid of them; we want to reinvent them. That’s what’s going to drive our economy. Innovation Island has had 17 companies accepted in your VAP with over $2 million in investment and nearly 40 news jobs created. What are the ingredients for this type of success? We work very hard to meet clients where they’re at and to provide insight or resources for what’s needed. We have a unique client profile. This is in part due to our geography, but also because many of our businesses have been built through bootstrapping. When the fit is right, and various accomplishments or milestones are achieved, we’ve then seen growth in a more typical sense, with investment and jobs. What do you think your tech sector will look like in five years? We’ve paid a lot of attention to the history and evolution of our counterparts in Victoria, Kelowna and Vancouver. To some extent we’re on the same path and trajectory; however, we’re pretty sure that we’ll have a unique flavour to what happens over the next few years and that in five years the secret will be out. I’ve always wanted technology to be the number one I’ve always wanted techeconomic driver in our region. I would love for people to have Nanaimo or the Comox Valley just as top of mind as nology to be the number Victoria, Kelowna or Vancouver. That’s my BHAG—my Big one economic driver in our Hairy Audacious Goal. But we also know that it’s going to be region. entrepreneurs that are going to be driving that.
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Honourable Andrew Wilkinson, Minister of Advanced Education. Photo courtesy of Innovation Island.
Your #1 piece of advice for tech startups in your region. Not sure I can put this into a #1 category, but for the most part we challenge our clients to do more with less. The North Island was built on grit (blood, sweat and tears) so we try to help startups turn weaknesses into strengths and to simply make stuff happen!
Regional Spotlights // Page 18
metabridge 2015, a gateway to the Okanagan’s growing tech sector >> A spotlight on metabridge and Accelerate Okanagan
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again a proud sponsor. In tech circles, the Okanagan is a hot destination. Entrepreneurs yearning for an easygoing life in a supportive tech community are increasingly looking to the
Okanagan for that uniquely Canadian tech-life balance. BCIC spoke with CEO of Accelerate Okanagan, Pilar Portela, about the region’s technology community and future opportunities.
metabridge 2015. Photo courtesy of Accelerate Okanagan.
C’s most promising startups packed their bags for the Okanagan Valley for Canada’s iconic 2-day startup retreat, metabridge, June 11-12. This is its 7th year running, and BCIC was once
The Okanagan Valley tech sector today is a billion dollar industry. What did it look like five years ago? The Okanagan tech community has been growing steadily over the last few years. Today, the region has over 600 tech companies and the sector is gaining momentum. But it existed in a very different way 5 years ago; companies like Kelowna Flightcraft and QHR Technologies were the region’s “sleeping giants,” large and quiet employers. When high-profile acquisitions like Disney Interactive and Vineyard Networks started to happen, it began to reach the world that something important was happening here. Suddenly, people saw that it was possible to run a great tech business in a work-life balance environment that you have in very few places. This became a driver of incoming talent and business opportunities and made today’s tech community much more tangible.
metabridge 2015. Photo courtesy of Accelerate Okanagan.
Regional Spotlights // Page 19
Who are some of Okanagan’s leading tech innovators? Animation studios like Bardel Entertainment and Yeti Farm Creative are hitting the headlines most frequently but also alumni of the BC Venture Acceleration Program likeWTFast, Kinematic Soup, Mathtoons, Just Be Friends and Karoleena Homes have been emerging in the news. In fact, it was the first employees of the early tech giants, like the innovators behindVadim Software, RackForce, Catalyst Healthcare and SRB Education Solutions that are spinning off new companies right now! Most recently, Festfeed has emerged as a strong contender in the events space, andSoilMate received the Small Business BC’s Best Concept 2015 Award. What are the advantages of building a tech startup in the Okanagan region? Economics. Silicon Valley is extremely expensive and Vancouver is not far from that; it is a very expensive city to live in and the costs are higher for talent. The Okanagan has a great infrastructure, and there is good access to talent and services. It’s a small community but has great international connections like metabridge and an academia that works very closely with industry. There are many reasons people set up shop in the region, not the least for the wonderful weather and wineries. Being a small community leads to less competitiveness and more collaboration. And what are the challenges? Being a small community also leads to inevitable poaching from other groups when talent is a scarcity. Like most places, there is an issue of talent, and the Okanagan has strug-
Regional Spotlights // Page 20 gled to compete with places where the salaries are higher. Yet with significantly higher basic living expenses in the big cities, you end up with about the same amount of pocket money. Often, people just see the salary price tag and don’t think about the real math behind it. With over 600 tech companies, where industry-relevant career growth was a challenge before, now there are plenty of options across the board. Where do new startups go for resources in the community? Accelerate Okanagan (AO) has the programs and support systems to ensure that our startups grow to maturity. There is also a strong network of alliances between AO and Okanagan Community College, the Chamber of Commerce and similar organizations. For programming skills, the Okanagan Community College offers a number of courses and works closely with AO on the types of programs they should be delivering. The future Okanagan Centre for Innovation will also strengthen and amplify Kelowna’s entrepreneurial culture.
Honourable Amrik Virk, Minister of Technology, Innovation and Citizens’ Services. . Photo courtesy of Accelerate Okanagan.
Tell me one thing people don’t know about Accelerate Okanagan. Accelerate Okanagan operates like a startup. We are innovators and disruptors of our own business model so by raising the bar on AO, we are raising the bar on all tech-related matters. That makes a huge difference for the tech community. Are the region’s startups catering to any specific industry? It greatly varies because we are the whole huge Okanagan region. Great agritech solutions are coming out of Summerland via the Pacific Agri-Food Research Centre (PARC) while in Kelowna, there is a greater focus on Aerospace & Defence and traditional ICT. We are seeing excellent healthtech R&D coming out of Kelowna’s newUBC Faculty of Medicine. And of course, the gaming and animation industry has been here for a while. What early-stage funding support is available to Okanagan’s tech startups? There’s not a lot venture capital, but there is a small network of private angels
Regional Spotlights // Page 21 with seed-capital available. VA Angels has a chapter here as well. But failing faster will get startups to funding faster, so market validation through programs like the BC Venture Acceleration Program is more important than chasing capital before the company is ready. What will the Okanagan tech sector look like in five years? Tech is the most diverse force available! It crosses horizontally every industry vertical there is. So as new generations emerge a lot more tech savvy, there will be a lot more demand for tech-related innovations. metabridge, BC’s iconic annual startup retreat is taking place this week. What makes it unique? At metabridge, BC’s top startups get to forge vital financing and partnership deals with Silicon Valley’s leading venture capitalist but in a very Canadian way – much softer and more natural with a great environment, wonderful weather and wineries. The metabridge environment facilitates meaningful network connections but often not immediately. Most successes of metabridge are 3-4 years later when the companies are ready for this level of investment or are preparing for acquisition. How you maintain and nurture these connections over the next few years makes all the difference to successful Canadian funding stories.
metabridge 2015. Photo courtesy of Accelerate Okanagan.
What is your #1 advice for tech startups in the Okanagan? Validate your product before you spend all your money in development. That goes for here and anywhere else! Once you’ve validated the product, go for it fully. The world is absorbing technology! You may not become the next $300 million acquisition but who cares, you could become a really strong and important company making $2-3M a year.
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Technology is a catalyst for growth in North Central BC >> A spotlight on Innovation Central Society in Prince George
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city once dominated by forestry, Prince George is reinventing itself as a community known for its economic diversity and creativity. The announcement that Prince George will receive one of Startup Canada’s first Women Entrepreneurship Fund (WEF) investments is evidence that the Northern
BC city is not only raising the bar for startup communities, but expanding its economic focus and ambitions. Robert Quibell, Executive Director of Innovation Central Society (ICS), a BC Acceleration Network partner, senses an entrepreneurial culture in the midst
of a transformation. “I don’t know how to describe it,” he says, “but there’s just a different feel here than there was a decade ago.” BCIC spoke with Robert about Prince George’s technological revolution, its focus on collaboration and the community’s resilience.
Photo courtesy of Startup Prince George.
How has the technology sector in Prince George changed over the past five years? Technology has always been here but it has been hidden in the past. It’s always been embedded in our core industries. In some ways, industry hasn’t shared the details of their innovations. It was rare to hear leaders say, “Here we are, and this is what we’re working on.” That’s now changing in part because of the outreach we’re doing. We’re explaining to industry that technology is a horizontal catalyst and that it will improve growth in our region, and that is good for everyone. What is spurring some of this evolution? Industry has looked around and said, “We can’t just do forestry anymore.” Twenty years ago or even 30 years ago, you could say I’m a forestry technician and people would pour money through your door. Now that doesn’t happen. The crash of 2008 brought in this change in thought and the desire to explore new industries. We’re much more diversified
Photo courtesy of Startup Prince George.
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now. We have no choice, to be frank. We’ve lost probably three mills that have shut down because of economics. What do the companies who do business here value about the community? We have the best people. Entrepreneurs come here and presume that they’ll live in the area for two years. But then something changes. The first thing they notice is that if you’re up here in the shopping line, you can talk to the person in front of you; you can talk to the person behind you too; and if you do, the person behind them will start talking and the next thing you know everyone in line is talking to each other. If you need to find information to help your business, you can make a few calls, and no doubt, someone will put you in contact with the person who’s going to help you. That’s just the character of the community. Our economy is also really diversified. You’d be hard pressed to find a place that’s as diversified as we are with the number of people we have. Our resilience comes in to play here. We’ve approximately 74,000 people in Prince George now, and we had 74,000 people in 1983. We haven’t grown much, so we’ve had to be resilient and creative in growing our economy. Lastly, we’ve got some of the most phenomenal cross-country skiing in the province. In other words, you can have a quality lifestyle up here. If you take part in winter sports or are an outdoors person you will love it here. What are the challenges for running a tech company in the region? The challenges are finding good technology people that we can train, that can work with mobile apps and that can work with a variety of software types and applications. We’re like everybody: we need programmers. We are also collaborating with Emily Carr University on a program because we need design people up here too. Who are some of the leading tech innovators in the region? Industrial Forestry Services is a technology and consulting firm that’s 60 years old in Prince George. Most of the forest companies in Canada use their system for mapping forests. There’s also SparkGeo that builds next generation web mapping applications.
Regional Spotlights // Page 24 There are many more, including: • JR Can Map provides resource companies and government agencies with mapping services, 3D spatial products and other aerial photography. • Business2Mobile develops innovative data management and software solutions for small-medium size enterprise. • Applied Informatics has developed the Medical Office Information System (MOIS), an electronic medical record that’s improving patient care. Beyond ICS, where else do businesses go for support? We’ve got IRAP and some of our firms have gotten support from MITACS. We have the Omineca Beetle Action Coalition that’s dedicated to economic diversification and sustainable development. Other assistance comes from University of Northern BC (UNBC) and the College of New Caledonia that both have business outreach programs. UNBC will actually do research for firms and are actively going out and looking for companies to engage with. Lastly, the Northern Development Income Trust (NDIT) administers multiple funding programs focused on economic development priorities in central and northern BC. Can you tell me something unique about your tech sector that most people won’t know? Noratek Solutions Inc. has created a product called CityReporter, and it’s growing like crazy. It’s a system for fire departments or building inspectors to manage all of their data collection for safety inspections. Their solution has been deployed over 400 times in the United States, so they’re a great example technology being exported.
Photo courtesy of Startup Prince George. Berg Media Photography.
What do you think the region will look like in five to 10 years? My vision is really simple. I want to see the region’s tech industry and growth supporting the post-secondary institutions, and vice versa. What I also would like to see is greater collaboration between the university, the college and the city. I think everyone’s excited about our current trajectory, and there’s a strengthening spirit. It took a long time to recover from our forest industry being beaten up, but I think technology is bringing us all together again.
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From egg cartons to educational software, innovation is alive in Smithers >> A spotlight on Bulkley Valley Economic Development Agency in Smithers
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hen the Bulkley Valley Economic Development Agency (BVEDA) joined BCIC’s Venture Acceleration Program (VAP) in 2014, Executive Director Allan Stroet was confident in the region’s prospects for tech sector growth. “There are huge opportunities for tech-related businesses to scale up their operations or introduce new ideas to the market with
all of the industrial activity taking place around us,” he said. A year and a half later, he’s now certain of the area’s potential. “With so much activity in resource development in the region, Smithers is a great place to launch a new venture,” he says. “Creative individuals call Smithers home because of the high number of amenities both
natural and man-made, and they contribute to the strong sense of community and economic potential.” BCIC spoke with Allan about the growth of tech entrepreneurs in the region, where startups find support in the area and how innovation has been part of the community’s fabric for over a hundred years.
What are some of the advantages for growing a tech business in your region? Apart from the ability for entrepreneurs to set up shop for a cost that’s more reasonable than in the Greater Vancouver area, the community here is very connected. The degree of separation between people is often two or less. This makes it easy for companies to connect with industry
Local business owners at a Startup Smithers event. Photo courtesy of Startup Smithers.
What has changed within the Smithers tech ecosystem over the past five years? Five years ago it was much more fragmented. Everyone had his or her own little pockets of work, and it was segmented. I don’t want to say that tech entrepreneurs were reduced to the status of basement inventors, but they were often seen as outliers in the community. There’s more recognition now. The Venture Acceleration Program has certainly helped in that effort, and it has supported the belief that building a successful tech firm is possible. There were and always will be people starting companies, with some failing and many succeeding; however, the belief is much stronger now that success is possible here.
Photo courtesy of Net Zero Structures, a BVEDA comapny.
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prospects and partners. There’s a good chance that industry contacts and customers who tech firms want to connect with have kids in sports together or a connection through another activity. There isn’t an ivory tower that entrepreneurs or tech businesses must scale to get to decision makers. Another advantage is the current wave of resource and mining projects. They open up a lot of doors because these large companies like TransCanada want to purchase social license, so they shop local. Local firms benefit greatly from larger companies operating here and leveraging their products or services to complete projects. What are the challenges of growing a tech firm in Smithers? When you’ve got a large geography and a small population, you’re stuck with a limited amount of human resources and capital resources. Access to talent and financing is certainly tougher than in other parts of the province. If we think globally, we’re basically a microcosm of Canada. Who are some of the companies doing really exciting work? Hy-Tech Drilling designs, manufactures and operates diamond drills around the world. Diamond drills are the lightest, most modular and robust drills in the whole industry. We also have Road 2 Math Learning, an educational software company. They’re in the VAP, and their founder is actually a teacher who has been beta-testing his product on his own students with good results. In addition, other innovative local companies include: • Coast Mountain Wireless, based in Terrace, manufactures mobile cell towers for remote projects in mountainous regions. • BV Energy Managers, based in Bulkley Valley, helps businesses manage energy use with products like solar-powered defrost systems and thermal/electric generators. • Helix Electronics, based in Smithers, specializes in high-end remote communications for the logging and mining industries. Are these and other firms catering to any specific industries? They’re working mostly with mineral exploration and large industrial projects. When
Regional Spotlights // Page 27 you’re in a town like ours, you can speak to the general manager of the sawmill quite easily; you can talk to the operations manager at Huckleberry Mine with relative ease. The accessibility is matched with more focus. What is spurring growth and new business in the area? I think a lot of credit has to go to our Executive in Residence (EIR) Carl Anderson. His knowledge and expertise is second to none. He’s been so helpful with many founders who are often technicians but don’t have the business side down. Carl can speak their language while at the same time conveying a message of customer discovery and market discovery. We also have a local organization called Startup Smithers. It is one of the pilot communities established through Startup Canada. Through it, we were able to gather a bunch of experienced entrepreneurs to offer free advice over coffee to “wantrepreneurs,” people seeking to become entrepreneurs. We try to make sure that anyone who’s thinking of starting a business really understands what’s entailed. The best way for them to learn this is through actual conversations and interactions with people who live it every single day.
“ Innovation has been
part of this region for over 100 years.
What do you think Smithers’ tech sector will look like in five years? I think that tech companies will help alleviate the “drawers of water and hewers of wood” label put on rural populations. That means that tech is helping us to open up economic opportunities beyond merely the extraction of our natural resources. This is something Canada has experienced nationally. I also hope tech can change the region so your typical worker isn’t necessarily saying, “I work at the mill,” but it’s instead, “I design a product that makes the mill run more efficiently.” This is the type of innovation that will lead to economic growth here.
Photo courtesy of Net Zero Structures, a BVEDA comapny.
What’s something unique about innovation in Smithers that people likely don’t know? Innovation has been part of this region for over a hundred years. Joseph Coyle, a newspaper publisher, developed the egg carton in Smithers in 1911. The global communications and information company MacDonald, Dettwiler and Associations, better known as MDA, also has roots in Northern BC. John MacDonald is from Prince Rupert and Werner Dettwiler lived in Smithers.
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Tapping the potential of cleantech >> A spotlight on Foresight Cleantech Accelerator Centre in Surrey
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lean technology (cleantech) is one of the fastest growing sectors in our economy. Increasingly, BC is recognized as a leader in cleantech, thanks in part to Foresight Cleantech Accelerator Centre. Already distinct among Vancouver-area accelerators, Fore-
sight recently introduced a new partnership with Startup Canada that further increases the organization’s reach and influence. Foresight is now one of four accelerators providing co-working space to Startup Canada members living in and travelling to British
Columbia. BCIC spoke with Foresight’s Managing Director Neil Huff about the cleantech sector’s rise, why the Lower Mainland is an ideal location for cleantech and what makes a great value proposition.
Photo courtesy of Saltworks, a Foresight company.
What has changed about the cleantech sector in BC in the past five years? Cleantech got a pretty bad rap over the past few years. Here’s what happened. People made the assumption that if you had a technology that was going to clean things up and save the world, everybody would rush out to buy it. That’s certainly not the case. You absolutely have to have a strong value proposition. You need to either save your customer money or help them grow their revenues. Many cleantech entrepreneurs missed that memo, so there were a lot of early failures in this space. The focus on adding strong value is part of what has changed. That’s certainly one of the areas that we focus strongly on at Foresight, and we’re starting to see a lot more success and credibility with young cleantech companies. What makes the Lower Mainland a great location for you and your companies? We have 6,000 square feet in Surrey, and the reason we started here with our entrepreneurs is a practical one. Property in Surrey comes at a very reasonable cost. We’re all about value to our customers, so if we’re going to offer lab space to our customers, the lower the cost we can offer, the better. Having said that, we are in
Photo courtesy of Bionic Power, a Foresight company.
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serious discussions with respect to a Vancouver location as well. We need to be on both sides of the river, because we have many clients from Vancouver and the North Shore, and we need to create easier access for them. In terms of management and growth, what are the issues for cleantech firms in BC? Startups need two things: they need dollars and they need talent. Here in BC, startups are lucky to have a significant amount of resources in the early stages of development. There’s NRC-IRAP, SR&ED tax credits and support from Sustainable Development Technology Canada (SDTC)—all good news for our sector. The bad news is that when you need talent, it’s a short list you can draw from. Many of our companies need talent right up to the CEO level. To assist, we’re putting together an inventory of local cleantech experienced CEOs and C-level executives that have the potential to help our company clients. This list may be short compared to Silicon Valley’s or Boston’s, for example, but fortunately it is getting longer as our talent pool grows from within and as more senior level executives come to BC and want to stay here. The addition of key talent can also be the catalyst required to generate financing opportunities. Who are some of the most exciting companies right now in the cleantech space? I’d say the most recent one generating some buzz is Carbon Engineering. Their new pilot facility in Squamish removes carbon dioxide from the air and will eventually convert it to liquid biofuels. There are many other great success stories: • SaltWorks Technologies Inc. has a desalination technology that converts salt water or brackish waste to fresh water. • Axine has developed a low-cost, breakthrough solution for treating toxic organic pollutants in wastewater. • SunPump produces solar heating and cooling systems for homes and businesses.
Regional Spotlights // Page 30 • BionicPower is generating revenue from a knee brace that harvests power. • DarkVision Technologies, winners of BCIC-New Ventures Competition 2014, has developed very innovative downhole imaging technologies for the oil and gas industry. • Ecoation has a game-changing wireless crop health sensing, monitoring and management system. • Hydra Energy is making serious headway developing hydrogen conversion and fueling systems for fleet vehicles. In your experience, what are the ingredients for success? To me, there has to be a very strong value proposition and a large market. But there also needs to be a strong and high level of passion and perseverance at the CEO level. If the CEO isn’t passionate about what they’re doing, the venture won’t be successful. Tell me something unique people probably don’t know about cleantech. I think a lot people don’t know that it’s one of the fastest growing sectors in the country. It grew at 9% in 2013 in Canada. If it keeps growing at this rate, it’ll employ 70,000 people in Western Canada by 2022, according to an annual study by Analytica Advisors. What’s your vision for Foresight and cleantech over the next five to 10 years? We plan to have 30 companies in our portfolio. We want at least 10% of them to be $100 million companies in five years. So our goal is to have at least three $100 million companies that come out of Foresight in the next five years.
Photo courtesy of Foresight.
Beyond your programming, what’s going to help make that happen? We need to become much more focused on value and much more focused in general. Foresight has an Advanced Resource Clean Technology Innovation Centre (ARCTIC), which is trying to focus on the resource sector where there are huge opportunities. It can be difficult to innovate in this area, and the ARCTIC model is helping to create opportunity and build companies that are solving big issues by connecting resource industry problems with innovative solutions.
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VentureLabs® sparks global startup growth and engagement >> A spotlight on VentureLabs® in Vancouver
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ntrepreneurship and academics are coming together in the new VentureLabs® facility in downtown Vancouver. A member of BCIC’s BC Acceleration Network, VentureLabs® is a technology business accelerator supporting startups from Simon Fraser University, University of Victoria, British Columbia Institute of Technology and the Emily Carr University or Art +
Design, and from our community. The new entrepreneurial hub positions VentureLabs® well to achieve its commitment to creating world-class, sustainable and scalable growth companies, according to Ian Hand, Executive Director. “Since we partnered with BCIC and started delivering the Venture Acceleration Program, we’ve been able to create a
lot of impact for the companies we’ve worked with,” he says. “With the new space, we are looking forward to doing more of that and in an internationally connected way.” BCIC spoke with Ian about noteworthy Vancouver innovators, avenues for entrepreneurial support and how institutional partnerships are powering new ventures.
Photo courtesy of VentureLabs®.
How has your tech community changed over the past five to 10 years? The BC startup scene has become stronger, with more startups and more programs. It’s evident that passion for entrepreneurship in the local ecosystem has really never been higher. We are living in a highly entrepreneurial era, where technology innovations enable venture creation and government has created a value system and policy framework that supports and values innovation and entrepreneurship. Can you talk about some of the challenges of growing a firm here? Access to capital is one item that frequently comes up. Fortunately, the federal government is helping to address the issue through the Venture Capital Action Plan and support like funding for investor education initiatives of the National Angel Capital Organization and it’s member angel networks. There’s also a perceived challenge in finding senior
Regional Spotlights // Page 32 talent such as deeply experienced executives in senior marketing or management roles for high-growth companies. However, until startups have a validated opportunity and significant resources in the form of financing, they’re usually not in a position to recruit a highly experienced industry CEO or other executive. Founders must first build value and then the judgement can be made as to whether continued growth requires enrichment of the management team or not. Investors often help inform that decision, and founders need to be open-minded regarding further de-risking the business and accelerating growth. Do the companies you work with cater to any industry? VentureLabs® is a multi-sector technology accelerator. But a lot of our companies are based in science and are intellectual property-based. They are different than many Internet ventures that are based on rapid web-based iteration; many firms are based around physical products and lab-developed processes.
Photo courtesy of VentureLabs®.
Tell me about some of your leading innovators. All of our entrepreneurs are amazing for different reasons. A few that come to mind right now are: • VeloMetro, founded by Kody Baker and John Stonier, is working to build a sustainable, cost-effective and environmentally friendly transportation system. • Optigo Networks, lead by Ping Yao, is bringing security to IoT technologies in smart buildings. • PHEMI Health, recently named one of Canada’s “Companies-to-Watch” by Deloitte, provides privacy, security, governance and enterprise-grade management for company data. • LungPacer is developing a therapeutic solution for preserving diaphragm muscle strength in critically ill ICU mechanically ventilated patients.
VentureLabs® company, PHEMI, at Strata + Hadoop World Conference 2015. Photo courtesy of Strata + Hadoop Conference.
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What have you seen to be the common attributes of successful VAP companies? Key among these attributes is a shared vision, persistence and a team who works well together to deliver a product that customers want. A successful company needs to become an effective ‘decision-making machine’ to solve thousands of small and large problems rapidly on the road to success. Can you tell me something unique about your tech community that most people won’t know? VentureLabs® is partnered with Ryerson University (Digital Media Zone) and University of Ontario Institute of Technology in a Pan-Canadian NRC Canada Accelerator and Incubator Program (CAIP) partnership and with Zone Startups India and Hanhai Zhiye internationally. This means that BC startups can now access business development resources and investment sources across Canada and around the world. Beyond your organization, where do your companies typically go for support? NRC IRAP, NSERC Engage and MITACS internship programs, as well as co-op programs and the BCIC Innovator Skills Initiative are all excellent programs that growing BC tech companies can access to accelerate their success. What is in your vision for the future VentureLabs® and tech in Vancouver? VentureLabs® is working to to make Vancouver the best place on the planet to launch and grow a technology startup. We’re also working to make it easier to collaborate with BC university research expertise, talent and international business development partners.
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A new wave of wireless in Vancouver >> A spotlight on Wavefront in Vancouver
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ancouver was recently named one of the top cities to launch a startup in the world. September’s Vancouver Startup Week (VSW) demonstrated why. Through over 80 events, ranging from keynotes, workshops, presentations and parties, the best of Vancouver’s startups and talent were on display and ready to engage as part
of VSW 2015. An initiative of this scale is to be expected, according to Brad Lowe, Vice President, National Accelerator Operations, at Wavefront, Canada’s Centre of Excellence for Wireless Commercialization and Research. “We’re more collaborative as a community than other ecosystems,” he says. “It’s kind of like there’s room
for everyone. The thinking is, ‘Let’s all just help the community.’” BCIC spoke with Brad about the city’s evolving tech scene, the advantages and disadvantages of growing a business in the Greater Vancouver area and what the future looks like for wireless tech and innovation in the region.
Photo courtesy of Wavefront.
What has changed in the last five years in the Vancouver tech scene? Between five and 10 years ago things really started to change here. Traditionally, the tech ecosystem in the Vancouver area was focused on a few anchor companies like Nokia, Motorola and Creo. Then other companies came out of MDA Corporation. There wasn’t a lot of ancillary and small tech going on. That started to change when large companies like Nokia and Motorola closed up or downsized. That left a lot of tech talent on the market to go start and grow new things. Something else that spurred Vancouver’s current upward trend is this broad embrace of entrepreneurs. Entrepreneurship is now something supported and promoted. What would you say are some of the advantages of running a tech company here? Firstly, it’s a great place to do research and development (R&D). When I was head of R&D for Canada for Nokia, I gave many presentations in Finland about why we should keep our facilities in Canada. Reasons include Canada-wide grants like SR&ED, IRAP, NSERC and many others that help to support technology development. Locally in the community, we’ve got great universities that are starting points for high-powered talent. I think the quality of the tech talent here is on par with anywhere else in the world. I don’t think Silicon Valley has anything that’s any better than what we’ve got here. But what’s more, we’ve got many organizations simply supporting startups. I think
Wavefront President and CEO, James Maynard (right). Photo courtesy of Wavefront.
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that BCIC has done a great job of figuring out where they need to be in the community and where they don’t need to create redundant capacity. There are also a number of accelerators and organizations helping small tech firms in the area including Launch Academy, Highline, VentureLabs, Spring, BCTIA’s Centre4Growth and Foresight Cleantech Accelerator. The people and organizations available to help are bringing real value. What about some of the challenges here? Funding is always a challenge. Although I think if you You need to prove that have what it takes, you can find the funding. Many startups think, “I’m a startup, I deserve to be invested in.” But no, there’s a case for investyou don’t. You need to prove that there’s a case for investment. ment. We see it with our companies at Wavefront. The ones that have a great business will find the investment. Still, there’s room for growth in access to and availability of investment here. We’re also lacking in been-there-done-that business talent; the people who’ve been through three startups, worked for large companies, have seen how you grow a big business and understand how global markets work. A lot of people are doing this for their first time. They’re building that competence themselves as opposed to being able to hire people with certain business acumen.
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Who are some of your favourite companies making an impact? You’ve got companies like Mobify that started here and are a great home build story. I’ve got a longer backstory with those guys because I funded their research when they were at SFU and when I was at Nokia back in about 2006. I’ve known those guys forever. I supplied them with smartphones before anyone knew what smartphones were.
Regional Spotlights // Page 36 I love Awesense too. They graduated from entrepreneurship@Wavefront, a former BCIC-sponsored program. They provide business intelligence services and electrical grid analytics tools to companies. There are many other neat companies to get excited about, including: • Curatio, an award-winning health app that provides users with a virtual support group and allows direct interaction with healthcare professionals. • MetaOptima develops MoleScope that allows users and healthcare professionals the ability to track and monitor moles over time for cancer warning signs. • CommandWear develops cloud-based, real-time situational awareness tools to help business monitor personnel safety and communicate with staff. • Vandrico Solutions works with organizations (most recently Whistler Resort) to enhance productivity and the safety of their operations. They’re all starting to get attention and they’re great examples of what’s happening in wireless, mobile, and information and communications technology (ICT). Can you talk more about how the wireless industry has changed over time? Back in the day, wireless meant cell towers and the video Back in the day, wireless game Snake on your Nokia phone. Everything was a wireless vertical solution and primarily through the ecosystem meant cell towers and the of the big telecommunications carriers. video game Snake on your Then wireless became a horizontal enabler to everyone’s Nokia phone. business, not just cell-phone services. This expansion is what needs to keep happening. Canadian industry needs to understand that if we’re going to overcome our productivity hurdles and the fact there’s a productivity gap between us and other members of the OECD, we need to embrace wireless on a bigger scale. Over 70 companies have entered the Wavefront Venture Acceleration Program. What have been the most common ingredients for success? It’s pretty much the same for any business. Have you identified a real pain with a large enough market to give you a business opportunity? It’s rarely about the technology. When we do the Market Validation Training, it’s great to see people’s eyes as they start to realize, “Oh, no one cares about my technology. They care about me giving them a solution to their problem.”
Wavefront Vice President, National Accelerator Operations, Brad Lowe. Photo courtesy of Wavefront.
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Regional Spotlights // Page 37 The second ingredient is just the energy and enthusiasm of the team. If someone comes in and they’re passionate, they’re going be a lot more successful than someone who’s just looking to work on a hobby-company. But that’s fine too. I have no problem with that. If you can keep five people employed in your small company, that’s great. This is, by the way, something that’s different in our thinking than a private accelerator. We don’t make money from our companies’ exits or growth. But we’re happy if five jobs are created, whereas no VC is going to be satisfied with that. Tell us something unique that most people probably don’t know. Sierra Wireless is basically a secret. We’ve got the largest company in the world for sales of modules for IoT [Internet of Things] and M2M [machine-to-machine] solutions. They’ve got the largest market share of any company in the world. They’re right here, headquartered in Richmond, and I think if you asked someone on the street, “Who is Sierra Wireless and what do they do?” they wouldn’t have any idea.
Pinshape’s 3D printing designs. Photo courtesy of Wavefront.
What do you think the next five years will look like? I think the technology that’s really going to change things is the Internet of Things. When everything can and will be connected, the technological opportunities will be enormous. There are many use cases for this tech already, but I don’t think we’ve scratched the surface of what reality will be like once everything is connected and communicating, and we can utilize the data from machines talking to one another. I think people are going to realize that yes, the app economy is big, but there are far more opportunities and problems to be solved by the IoT technologies. I think that’s going to change things, and hopefully we’ll change things.
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The VIATEC Awards and beyond: the burgeoning tech scene in Victoria
VIATEC’s Tectoria extravaganza. Photo courtesy of VIATEC.
>> A spotlight on VIATEC in Victoria
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he very best of Victoria’s tech community were celebrated at the annual VIATEC awards. This year’s theme, ‘Victoria’s NEW Tea Party’, recognized the evolution of Victoria from a sleeping ‘tea and garden’ town to the thriving urban hub it is today. Over 750 people attended the ‘Tim Burton,
Alice in Wonderland’ themed tech festival full of music, creativity and art on June 26th. “Victoria has award-winning breweries, cafes and restaurants, scenic bike paths and a relaxed lifestyle. And we also have amazing jobs with great tech companies that are chang-
ing the world,” says Dan Gunn, the CEO of the Victoria Innovation, Advanced Technology and Entrepreneurship Council (VIATEC). BCIC spoke with Dan about the city’s tech sector, the impact of the BC Venture Acceleration Program and how the local technology economy got started.
Regional Spotlights // Page 39 What did Victoria’s tech sector look like five years ago? Many people don’t know that the tech industry is Victoria’s #1 industry by quite a large margin. It generates $3.1 billion annually in revenues and over $4 billion a year in economic impact, so it’s been the largest industry in Victoria for almost 10 years. Over the last years, our tech sector has finally become more recognised for its impact. Victoria is also BC’s second largest tech cluster. It took a while to recognize this, because most of our tech companies don’t sell a lot here so, as a result, they don’t market a lot here.
Photo courtesy of VIATEC.
What are the advantages of running a tech company in Victoria? Tech companies are not here for the customer; they are here for other reasons. We have two universities, a college and really excellent R&D facilities giving us a lot of talent and entrepreneurial people. Victoria has been voted Canada’s ‘smartest city’. Ten percent of our population are full time post-secondary university students so we are graduating a lot of talent. And people are starting to recognise how vibrant the city is! Ten years ago, this place was a quiet ‘garden and tea’ place. Now, it has one of the better music scenes in Canada, fantastic beer and coffee and more restaurants per capita than anywhere also in the country! The city got a lot younger. The real big advantage for tech entrepreneurs is that Victoria’s tech community is very supportive of each other. It is very easy to meet with another CEO and ask for advice or an introduction to get some doors open. I’ve been working with the tech community for 15 years and the willingness of CEOs to help people not make the same mistakes is amazing.
Regional Spotlights // Page 40 How did Victoria’s tech industry evolve? The Greater Victoria technology industry itself is employing about 18,000 people directly and another 5,000 indirectly in tech-related jobs in our local economy. It’s about 23,000 people in total working in 884 technology companies. The region has seen different waves of tech companies. • One of our oldest companies, Daniels Electronics, started in the 1950s and was recently acquired Codan. They are one of the best in the world at high-frequency radio repeaters. • Another technology wave came from Ocean Sciences in the 1970s. Victoria has the Institute of Ocean Sciences so many companies, like ASL Environmental Sciences, Axys Technologies, were born out of that connection. There are now about 25 Ocean Sciences companies here. • From the 2000s, we saw a lot more digital companies - from gaming to software and everything in between. Victoria now has a large digital marketing space, with companies like Neverblue andRevenueWire.
Fort Tectoria. Photo courtesy of VIATEC.
Since the 2012, we’ve been running the BC Venture Acceleration Program and it has exceeded our expectations. From 250 companies that applied, we accepted 80, and 40 of them are going strong today, which is a good batting average. SendtoNews’s content generated 430 million views in 2014 and the company is currently negotiating a large financing deal. Crowd Content were only two people when they came in the door and 12 people when they got their own office space.Accio and SendwithUs have made some interesting pivots. The program’s companies have so far raised over $20 million in investment, increased revenues by over $10 million and created 135 jobs. We now have a series of companies run by 20-somethings and 30-somethings that are definitely going to be our more dominant and successful companies in the near future. MetaLab and MediaCore are good examples, having world-class results with customer centres around the world and work with the biggest tech brands in the world. What about Victoria’s gaming industry? We have 20 game studios employing 240 people. Gaming is a small percentage but may possibly one day be our dominant industry. It all started in the 1990s, when the gaming and design company Sanctuary Woods was acquired and became Disney Interactive. It operated in Victoria for many years before Disney decided to move it to its home base. Employees who weren’t happy about moving started
Regional Spotlights // Page 41 their own companies in Victoria, like InLight Entertainment, which today makes many of the popular Pixar games. In the mid-2000s, Backstage Technologies timed Facebook perfectly and built social games. The company grew rapidly from two people to 20+ people and was eventually acquired by Gamehouse Canada but still operates in Victoria with a staff of over 50. Around the same time, Codename Entertainment formed when two students from UVic coincidentally built a game that started making money. They have a staff of over 15 now. A recent spin-off from Gamehouse Canada staff turned into TinyMob Games, which launched a year and a half ago. How do startups raise funds in Victoria? The founders from Victoria frequently invest the proceeds from their sales into new startups and spend a lot of time offering advice and mentorship and connections. We have a strong network of angel investors who have made money selling companies or being successful on their own so there is the ability to raise locally if you have a great team and product or idea and the timing is right. More than 90% of Tiny Mob Games’ recent $2 million round came from Victoria. MediaCore raised $4 million out of Vancouver, Carmanah raised funding out of London and Power Measurement raised its money out of LA, so we see money come from everywhere. We have two direct flights per day to San Francisco so a lot of companies also fly south to raise investment.
VIATEC CEO, Dan Gunn. Photo courtesy of VIATEC.
What is your advice for someone looking to work in the tech sector? Victoria is a great place for getting informational interviews and the Tectoria Social Cluboffers lots of networking opportunities. My advice is to go and meet people, find out what they are looking for. Talk to us at VIATeC!
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