Canadian Technology Accelerators spread to 11 locations around the world

Concept pioneered in Silicon Valley

From its humble beginnings in Silicon Valley as a single bootstrapped operation, the Canadian Technology Accelerator (CTA) program has blossomed, expanding to 11 accelerators of varying sizes and business models to assist small- and medium-sized enterprises (SMEs) in penetrating global markets. Funded with $5 million over three years in Budget 2013, the CTA program is the newest in the suite of services offered by the Trade Commissioner Service (TCS) to stimulate business collaboration and investment in Canadian tech firms.

The CTA was launched in 2009 in Silicon Valley, eventually expanding to three branches and stimulating investment in participating Canadian firms. Partnering with a local accelerator (Plug and Play Tech Center), the program features access to expert mentoring, business support services and match making with potential investors. Soon after, the CTA expanded to New York City to test the concept in the world's largest concentration of financial service and marketing expertise.

As the CTA concept grew at the grassroots level, it gained traction within government, leading to the creation of a formal program with dedicated funding flowing through the Trade Commissioner Service (TCS) of the Department of Foreign Affairs, Trade and Development (DFATD)

Interestingly, the decision to formalized CTA was not made by DFATD but by the Finance department. Trade officials consider the program to be welcome recognition even though its official status came with constraints and reporting requirements typical of government programs.

In the past year, several new CTAs have been established, the most recent being London. Locations are determined by their depth of technological, entrepreneurial and business activity and expertise, making Silicon Valley, New York City and Boston the largest CTAs in the network.

Boston CTA

Boston is a case in point. Established by Thierry Weissenburger, a DFATD consul and senior trade commissioner who pioneered the concept in Silicon Valley, the Boston CTA is technology agnostic but geared towards leveraging the area's massive life sciences and information technology knowledge and expertise. The region boasts the world's largest concentration of life sciences and high-tech companies including Google, Amazon, Pfizer and Biogen Idec.

Last year 140 applicants resulted in 30 companies from across Canada completing the four-month residency in the Boston CTA, which is housed in the Cambridge Innovation Centre located at the heart of the Kendall Square campus of the Massachusetts Institute of Technology (MIT).

The CTA's flexible work space and services are free to successful CTA applicants, with firms picking up the cost of accommodation and travel. Three competitions are held annually to participate in what's been described as plug-and-play services. Firms are provided with a coach for making pitches to potential investors, access to the Canadian Mentoring Service and partnering with organizations.

"Flexibility is important but the devil is always in the details. The key is to find Canadian companies that are ready and to connect them with key players in the region," says Dr Jeff Crelinsten, president and CEO of The Impact Group and publisher of RE$EARCH MONEY. "If you can accomplish that, then you have a good chance of seeing the firms succeed."

The Boston CTA also features 48 Hours in the Hub, a short, intension version of the longer program to prep potential accelerator clients and show the CTA in action.

Enhancing the CTA experience is Canadian Entrepreneurs in New England (CENE), a non-profit member-driven organization aimed at assisting tech entrepreneurship by connecting firms to key players within the region's ecosystem.

A firm's success is gauged by its growth in revenue after taking the CTA program, the growth of jobs in Canada and its ability to raise funding. Companies are assessed using a local committee of experts, most of whom are drawn from CENE membership.

"Innovative and high-growth firms can realize significant benefits through connections with venture capitalists and entrepreneurial services abroad. Canada supports such connections through programs such as the Canadian Technology Accelerator initiative, with hubs in New York City, Boston and Silicon Valley. The Government will continue to look for ways to foster these types of opportunities for Canadian innovative, high-growth firms and to promote Canada as a leading jurisdiction for innovation and investment opportunity." — Budget 2013

Indian CTA Virtual

One of the most recently established CTAs is in Dehli, India and while it employs the same general tool kit developed in Silicon Valley, it has introduced unique attributes to assist firms in effectively penetrating the Indian ecosystem.

Unlike other CTAs, the Delhi version is virtual, reducing the cost of program delivery and allowing companies to gain the same benefits without physically relocating. Small Canadian companies are usually willing to participate in large trade missions to India but appear reluctant to relocate for the duration of the CTA program.

So far, the program has conducted roadshows in India's three largest metropolitan areas: Delhi, Mumbai and Bangalore and may also expand into Hyperabad. Six Canadian firms recently completed the initial cohort of CTA participants, undertaking a virtual program that lasted five months.

To enhance the company experience, CTA India has partnered with Global Superangels Forum (an Indian accelerator) and Waterloo ON-based Communitech and the Canadian Digital Media Network, which established ties with GSF earlier this year.

The India market is enhanced by the presence of subsidiaries of major Silicon Valley-based venture funds (Canadian venture capital is still largely absent).

Another innovation being pioneered by the India CTA is a separate program track to entice Indian firms to locate in Canada. The India track is closely affiliated with the recently established Start-Up Visa program.

Described as a world-first, the program targets immigrant entrepreneurs with the potential to build innovative, globally competitive companies that can create jobs.

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