Report finds Waterloo, Ont., outperforms almost every major technology centre in Canada and U.S.
Toronto, ON -- Exponential growth in market-driven technologies, compelling deal flow and great valuations -- are w...
Toronto, ON — Exponential growth in market-driven technologies, compelling deal flow and great valuations — are what is attracting prominent venture capital firms and institutional investors to the Waterloo, Ont., region, according to a report from PricewaterhouseCoopers (PwC)/Communitech.
The report, titled ‘Making Magic in Waterloo Region: A Report on the Exceptional Investment and Entrepreneurial Potential of Canada’s Hottest High-Tech Location’ (September 2005), found that investors in local technology firms received a more than seven-fold increase in shareholder value at the time of exit. These firms have also out-performed almost every major technology region in Canada and the U.S.
“The Waterloo region is rich in high-growth, high-tech companies and is internationally renowned for innovation in both technology research and entrepreneurship,” says Paul Hendrikse, south western Ontario technology practice leader for PwC. “Companies in other parts of the world should take notice of what Waterloo has done by way of business and educational infrastructure and seize the opportunities that are available here.”
The report also found that in the past decade more than $1.8 billion has been spent to acquire 19 successful, privately-held technology companies in the region. Furthermore the Waterloo region is responsible for an impressive 10% of all IPOs completed by technology companies on the TSX over the past eight years. The report points out that a portfolio of Waterloo region public technology companies generated an internal rate of return of 26% since 1994, out-performing both the Nasdaq Computer Index and the S&P/TSX Capped Info Tech Index.
Local universities have also played a significant role in the development of the community by establishing business management and entrepreneurship programs to foster leadership, research and innovation.
“The Waterloo region has the expertise and the well-developed infrastructure required to successfully develop technologies and it is an appealing market for investors,” says Iain Klugman, president, Communitech. “Innovations that began at the University of Waterloo are linked to hundreds of start-ups in the region and many world-leading firms have a strong R&D presence in the region.”