A trio of leading Ottawa tech firms have landed millions of dollars in fresh federal funding to help them expand into new markets and hone their products as they extend their global reach.
The Federal Economic Development Agency of Southern Ontario is providing loans worth a total of $11.2 million to three Kanata-based companies – pricing intelligence software-maker Lytica, which will receive nearly $1.1 million; data security firm Solace, which is eligible for $7 million; and video streaming platform developer You.i TV, which is in line for $3.1 million.
“These companies are leaders in their industries and will not only strengthen our technology cluster, but will create over 140 quality skilled jobs across the Ottawa region,” Kanata-Carleton MP Karen McCrimmon said in a statement.
Founded in 2005, Lytica helps some of the world’s largest manufacturers of electronic devices such as computers and smartphones get better deals when they buy the thousands of components that go into those products.
The 20-person company plans to use the new funding to continue developing its new subscription-based platform pricing tool, called SupplyLens, and plans to hire at least 16 new employees.
“Their support is a great help to Lytica as it enables us to accelerate the transition to a full SaaS business model and address an ever-growing global customer base,” Lytica CEO Martin Sendyk said in a statement.
While Lytica won’t name its customers, Sendyk recently told OBJ they include more than 20 per cent of the electronics manufacturers on the Fortune 500 list. Revenues have been “solid and steady” for years, he says, but Sendyk is certain Lytica is capable of much more.
“Frankly, that’s my No. 1 priority is to show that the value that this company has achieved – this product-market fit – can be scalable through a SaaS model,” he said. “Revenue will be the proof in the pudding for that.”
Solace and You.i
Established in 2001, Solace has become a world leader in software that helps companies quickly, reliably and securely stream data seamlessly between applications, sensors and other equipment.
In a world where invisible streams of data are constantly flowing from one point to another at lightning speed through a series of “events” – say, the swipe of a credit card or a scan of a boarding pass – Solace’s software smooths out bumps along the way, ensuring all that information gets from point A to point B as quickly and securely as possible.
Until a few years ago, Solace’s primary customers were banks and other financial institutions. The company has recently shifted from a traditional enterprise sales model to a subscription-focused platform that now delivers cloud-based software to clients in a wide variety of industries, from aviation and retail to gaming and manufacturing.
Now at about 365 employees, Solace plans to use the new funding to strengthen its foothold in industries such as manufacturing, aviation and health care. The company expects to add nearly 70 employees as it ramps up its global sales and marketing efforts.
“Now, pretty much every industry has a need to be real-time,” said Mychelle Mollot, Solace’s chief marketing officer. “There will be virtually no industry untouched by it.”
You.i TV’s platform helps major media companies stream their content across a variety of platforms. The 12-year-old company plans to hire up to 55 new employees and expects to double its revenue over the next three years as it expands into new markets beyond North America while beefing up its R&D efforts.
“This investment will help fuel our expansion into new markets and verticals that will help our customers reach new viewers and subscribers, wherever they are watching,” You.i co-founder and CEO Jason Flick said in a statement.