New Ventures BC Impact Study Reveals Major Economic Results for Tech SectorTuesday, November 28, 2017
Vancouver, BC, November 28, 2017--(T-Net)--New Ventures BC (NVBC), a not-for-profit organization that runs the annual BCIC-New Ventures Competition, is announcing today the results of its Direct Economic Impact study.
“The results of the study demonstrate that New Ventures BC is enabling significant impact in BC's growing tech ecosystem. The competition's mandate is to recognize startups but also to help them succeed,” comments Mike Volker, Chair, New Ventures BC.
“Over the last 17 years, past winners of the annual BCIC-New Ventures Competition have gone on to hire thousands of full time employees, raise millions of dollars, and create innovate technologies that help put BC on the map as a leader in technology.”
According to the impact study, New Ventures BC's top placing startups in the 2010-2014 cohorts have generated:
$249 million in annual revenue
$149 million in provincial GDP
$80 million in payrolls
In addition, the ventures generate an estimated $18 million in annual employee income taxes, with the Province receiving $6 million of these funds.
The data shows that the return on investment for the province is significant: for every dollar of public funding spent to support New Ventures BC, the province of BC receives nearly five dollars back in tax revenue.
Among the ventures reaching the Top 25 from 2010-2014 in the competition, 79% have survived (as of 2016). This is significantly higher than the average 30-50% survival rate for startups after four or five years.
Among the 90 surviving ventures (from 27 of 90 reporting):
930 full time jobs were created, with an average of 10 full time positions per venture
$92 million was raised in financing, enabling companies expand operations
Overall, competing startups rate the impact that NVBC had on their businesses as significant, assigning the non-profit an average rating of 8.2/10.
“The [New Ventures BC] Competition was a turning point for the company. It forced us to think critically about our business model, and helped us build our network,” comments John Carter, Co-Founder, Vonigo, 2013 first prize winner. “The Competition helped us gain credibility and helped validate the business for investors, which was key to raising capital.”
British Columbia's tech industry is strong and growing and continues to be a significant contributor to BC's growing economy. Organizations such as New Ventures BC are contributing to the millions being generated and reinvested into the province each year. Since 2008, the BC Innovation Council, a Crown corporation has supported the Competition as its title sponsor.
According to Profile of the British Columbia Technology Sector: 2016 Edition (BC Stats, 2017), in 2015, the tech sector:
Supported 100,000 jobs, comprising 4.9% of BC's workforce
Contributed approximately 7% of BC's GDP
Provided wages 75% higher than average, with greater annual increases than BC's traditional sectors (25% vs. 10% from 2010-2015)
Contributed $18 million in annual employee income taxes
Tech workers also benefit from continuous growth: employment has been steadily rising in this industry in BC for the past five years.
Study analysis is provided by Angus Management,a specialized strategy, finance and corporate development consultancy practice, with statistical data collected by New Ventures BC, and analysis conducted by RocketBuilders, a management consulting firm providing sales and marketing services to help technology companies grow and prosper.
View the report results here: http://www.newventuresbc.com/impact/
About the BCIC-New Ventures Competition
New Ventures BC (NVBC) is a not-for-profit that promotes entrepreneurship through innovation. NVBC runs the annual BCIC-New Ventures Competition, offering education, coaching, and $300,000+ in prizes to B.C. startups. The NVBC Venture Acceleration programs also provide training and mentorship for early-stage tech companies. Over the past 17 years NVBC competition winners have gone on to create 2700 jobs and raise $300+ million in financing. Learn more: newventuresbc.com or find us on social: @nvbc
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