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Ottawa’s top tech anchors

(Photo illustration) Tanya Connolly-Holmes

(Photo illustration)

Peter Kovessy
Published on March 7, 2013
Published on February 21, 2013
Peter Kovessy  RSS Feed

What local companies help startups get started?

Matt Whitteker says some of the best business advice he ever received came while training inside a boxing ring.

Topics :
Fortune Magazine , MSNBC , Huawei , Ottawa , Kanata , China

As one of the organizers of Fight for the Cure, he says he was helping DNA11 co-founder Adrian Salamunovic prepare for the popular charity boxing event.

The conversation turned to business, and Mr. Whitteker told him about his transcription and translation company, NoNotes. Mr. Salamunovic asked about his public relations strategy, and later gave Mr. Whitteker access to a database of journalists’ contact information and helped him refine a pitch that was sent to thousands of reporters.

The strategy resulted in several newspaper and radio interviews, as well as features in Fortune Magazine and on MSNBC.

“It was one of the first big PR campaigns we ever did,” Mr. Whitteker recalls.

“That conversation (with Mr. Salamunovic) made me $20,000. I need more conversations like that,” he jokes.

Mr. Whitteker says providing tactical business advice – suggestions such as specific marketing channels – are among the most valuable contributions established companies can give to startups.

Another Ottawa entrepreneur, Jason Flick, adds that mature firms can help mentor an early stage company as it attempts to validate its ideas, develops a commercial product and makes an initial sale.

“No one wants to be your first customer,” says Mr. Flick, the co-founder and president of YOU i Labs and Flick Software.

It was with that in mind that OBJ set out to find the most important technology anchors in the city. In an unscientific survey, dozens of entrepreneurs were asked which Ottawa companies help startups get started.

The most commonly cited responses were fellow startups and companies less than a decade old. Many respondents also highlighted the contributions of incubators such as Mercury Grove, Exploriem, TheCodeFactory as well as the city-funded economic development agency Invest Ottawa.

With a few exceptions, major multinationals and large locally headquartered companies were absent.

Depending on one’s definition, the sheer size of such companies’ employee headcount could qualify them as anchor firms.

However, Mr. Flick is adamant that established companies have an active role to play in nurturing startups, and says it makes good business sense for big companies to incubate early stage firms.

Large organizations will see a better return by supporting a startup than spending the same money on R&D, he argues. Mr. Flick says a team of entrepreneurs, armed with funding and a degree of autonomy, offers a superior method for established enterprises to develop and bring new technology to market.

Startups can generally move faster and are free from the entrenched culture, biases and assumptions that can hinder innovation inside large, established companies, he says.

The Terry Matthews-backed Wesley Clover incubator in Kanata is one variation of this model. Its companies frequently fill the gaps in the product portfolios of established firms founded by Mr. Matthews, such as Mitel and March Networks.

Nevertheless, Mr. Flick says companies with an Ottawa presence can still do more.

As an example, he notes that YOU i Labs and Flick Software are located in the same Terry Fox Drive office building as Chinese networking and telecom gear firm Huawei.

Mr. Flick – who has founded half a dozen companies in the past 19 years – was working on a video conferencing app and had to travel all the way to China to make his pitch, which he said was positively received.

However, back home – where he could have perfected his app by using the video conferencing technology contained in Huawei’s Kanata offices – Mr. Flick says he was met with resistance.

“The (Huawei) people in China want our stuff, and the people here are actually hindering us,” he says.

One local hurdle is Ottawa’s relative lack of corporate head offices. This means decision-making authority to purchase new technology, for example, is often located outside the nation’s capital.

While Mr. Flick acknowledges the challenge, he says it is no excuse. There are enough senior managers in Ottawa who can send suggestions up the corporate ladder to take a chance on promising local technology.

“They could make a difference, but choose not to. That’s what we need to change,” he says.

WHO'S HELPING?

OBJ conducted an unscientific survey of local startups and received roughly two dozen responses from entrepreneurs who named the firms that have aided their development. Companies in bold received multiple mentions in that respective category.

 

What organizations have...

 

Introduced you to a customer, suppliers or other key contact?

AGP Marketing

CMI Inc

Conceptshare

Invest Ottawa

Koneka

LaBarge Weinstein

Lead to Win

Mercury Grove

MSH Financial Inc.

OCLF

Research in Motion

Shopify

TheCodeFactory

University of Ottawa

Welch

 

Purchased your goods or services?

Alcatel-Lucent

Apption

Ciena

Conceptshare

CoralCEA

General Dynamics

Magmic

Research in Motion

TheCodeFactory

 

Provided priority access to labs or pre-release products?

Invest Ottawa

Mercury Grove

Research in Motion

SourceMetrics

 

Offered advice?

360pi

AGP Marketing Inc.

CMI Inc.

Conceptshare

Exploriem

Invest Ottawa

IRAP

LaBarge Weinstein

Lead to Win

Mercury Grove

Protus (now j2)

Shopify

Sourcemetrics

 

Previously employed one of your employees or contractors?

Adobe

Cisco

Entrust

IBM

Federal government

JetForm

Nortel

Momentus

Mxi Technologies

OnPath

Oracle

Patientway

Protus (now j2)

Research in Motion

 

Provided funding?

BDC

Capital Angel Network

CoralCEA

IRAP

Magmic

Startup Garage

 

Became a reference account and evangelist for you?

Alcatel-Lucent

Ciena

Conceptshare

Freshii Grounded Kitchen & Coffeehouse

Lead to Win

Orbis Partners

Shopify

TheCodeFactory

The Flour Shoppe

Welch

 

Offered work space?

Exploriem

Invest Ottawa

Lead to Win

Lytica

Openera

Magmic

Mercury Grove

Shopify

TheCodeFactory

Wedding Republic

 

Teamed with you to make a joint services/product sales effort?

Fidus

JaccPOS

MONLMenu

Research in Motion

Smoke Labs

Comments

  • Username
    Sarah Meharg
    - March 8, 2013 at 08:14:58

    Hi Peter, This is a great resource, I would love to develop into an info-graphic and dynamic business investment exchange system software. My experience has been consulting and developing start-up business systems and incubators/accelerators models since the 1990’s. Mostly in post-war reconstruction regions where culture shifts and new thinking are required. Ottawa also requires a Culture shift, and it can only happen quickly if our current leadership (who are locked in the current culture) hand over a much larger portion of the leadership and funding available to people like Jason Flick (among others) who understand the new Ottawa Culture shift required to create a Start-up success eco-system in Ottawa. I’ve known Jason Flick in the role of community business leader for many years, and can state that this article and his experience is unfortunately all too common. It’s a Government town mind set. Few people know this as well as Terry Mathews who has a history of building his partnerships and investor relations with my hometown of Markham Ontario. A town with a “Culture of Success” which my own families community and business leadership helped shape and develop. In my professional opinion, the Ottawa Star-up community needs to follow Terry Mathews example. We need to build an investor lead (3p) private sector- public sector funded eco-system, (1 mil CDN) which then offers its services, systems, and investment opportunities to outside Ottawa interests and investors on a publicly traded exchange. Ottawa Large-business will learn quickly, the importance of regaining home field advantage. Or risk loosing all. Dr. Sarah Jane Meharg Professor of Politics and Economics Natural disaster/post war-reconstruction Expert Start-up Entrepreneur

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