Survey highlights early stage success for TEC Edmonton
From News Release
Edmonton - TEC Edmonton’s clients - early stage technology companies - are doing great!
That's according to a recent survey . Wanting performance metrics to judge its impact on the early-stage companies it serves, TEC Edmonton sent out a survey to 85 clients it had worked closely with from April 1, 2010 to March 31, 2012.
The results are a cause for celebration at Edmonton’s not-for-profit business incubator/accelerator.
The 74 companies who completed the survey (out of 85) earned $73.4 million in annual gross revenues in the 2011/2012 fiscal year. And they raised another $27.5 million in investment capital. Further, they increased employment from 600 jobs to 750, a 25% increase.
Of the $73.4 million in annual gross revenues, 80% came from companies with gross revenues of $500,000 or less.
Smaller, younger companies fared best. Of those 150 new jobs, 139 were created in companies less than five years old, and in companies of 10 employees or less.
“The fact that small, young companies created most of the new jobs is consistent with evidence from the United States regarding entrepreneurship in the US economy,” says TEC Edmonton CEO Chris Lumb.
“We had no Alberta evidence before this survey. Now we know broad-based innovation is happening across many TEC Edmonton client companies, contributing to large and stable growth overall.”
The survey suggests that public investment to grow young, knowledge-based Edmonton companies creates outstanding economic returns.
“TEC clients do better. Industry Canada statistics say the average Canadian young company growth rate is 10%: TEC Edmonton’s clients grew 25%.
And generalizing this, the survey shows that companies accessing networks, support systems and the broader community out-perform the average early-stage company.”
Lumb points to other significant indicators of success for TEC Edmonton’s clients.
In the last six months, four of TEC Edmonton’s Executives-In-Residence – successful business leaders who had joined TEC Edmonton to work with its clients – have transitioned to head up TEC Edmonton client companies.
“We consider that kind of departure as a grand success,” says Lumb. “To bring such expertise and experience to leadership positions in our client companies can only increase their chances of success.”
Innovation spurs innovation. Six years ago, young startup company Yardstick Software won the 2006 TEC Edmonton-produced VenturePrize new technology competition. Just recently, Yardstick Software, with 25 employees and $6.5 million in global sales last year, announced a major corporate investment in another new Edmonton startup company, the 2012 VenturePrize winner Innovative Trauma Care.
TEC Edmonton recently restructured its Alberta Deal Generator funding program, drawing upon its own networks and expertise to encourage investment in startup companies. In the last four months, this approach has facilitated the raising of $7 million of investment capital for six TEC Edmonton client startup companies.
“It’s tremendous to see our clients doing so well,” says Lumb.
For more information, visit www.tecedmonton.com <http://www.tecedmonton.com> or contact:
CEO, TEC Edmonton
Phone: 780 492 8318
About TEC Edmonton
TEC Edmonton helps transform high-tech discoveries into viable business opportunities. Through our business services, TEC Edmonton helps navigate the commercialization process by providing assistance with technology evaluation, intellectual property protection, business plan development, marketing research, corporate management and funding preparation – as well as provides a home for startups in the TEC Centre incubation facility. A unique not-for-profit enterprise, TEC Edmonton is a joint venture between Edmonton Economic Development Corporation (EEDC) and the University of Alberta.
For more information, visit www.TECedmonton.com <http://www.TECedmonton.com> .