{"id":7855,"date":"2018-12-06T17:45:44","date_gmt":"2018-12-06T22:45:44","guid":{"rendered":"https:\/\/blog.brainstation.io\/?p=7855"},"modified":"2020-06-02T10:31:02","modified_gmt":"2020-06-02T14:31:02","slug":"2018-a-big-year-for-vancouvers-tech-industry","status":"publish","type":"post","link":"https:\/\/brainstation.io\/blog\/2018-a-big-year-for-vancouvers-tech-industry","title":{"rendered":"2018: A Big Year for Vancouver’s Tech Industry"},"content":{"rendered":"

We\u2019ve written about <\/span>Vancouver\u2019s continued rise as a tech giant<\/span><\/a> to be reckoned with, and 2018 proved to be a big year for the city\u2019s digital sector. <\/span><\/p>\n

As we start to wind down for the holidays, we decided to take a look back at the year that was. <\/span><\/p>\n

Here are some of the most important Vancouver tech industry stories from 2018.<\/span><\/p>\n

Governments Continue to Support Growth<\/span><\/h2>\n

In February, the Canadian government announced that the British Columbia-led <\/span>Digital Technology Supercluster<\/span> was one of the funding recipients for its Innovation Supercluster Initiative. The Supercluster is expected to create 50,000 new jobs and pump $15 billion in GDP into B.C.\u2019s economy over the next decade.<\/span><\/p>\n

There was also a cash influx from the province, which <\/span>announced more than $100 million in funding<\/span> for 75 research projects. It\u2019s one of the reasons more than 80,000 tech-related job openings are expected in the region by 2027.<\/span><\/p>\n

And despite a less than friendly relationship between Justin Trudeau and Donald Trump, 2018 also signaled stronger ties between the Vancouver region and its neighboring US states. In October, B.C. premier John Horgan and Washington governor Jay Inslee <\/span>met as part of the <\/span>Cascadia Innova<\/span>tion Corridor Conference<\/span>, an annual event that brings government and business leaders together from both countries.<\/span><\/p>\n

\"B.C.

Credit: Alaska Highway News<\/em><\/p><\/div>\n

\u201cGovernor Inslee and I are working together to make life better for people across the region, and the Cascadia Innovation Corridor is critically important to that work,\u201d Horgan said in a press statement. \u201cThis forward-thinking initiative brings together governments with the tech sector to grow the innovation economy. Our government will continue to work collaboratively to advance these shared goals and create good jobs for people on both sides of the border.\u201d\u00a0<\/span><\/p>\n


This is not just lip service. Over the past two years, a s<\/span>eaplane service<\/span> has been established between Seattle and Vancouver, and a feasibility study (backed by Microsoft) on an <\/span>ultra-high-speed rail line<\/span> between Oregon and B.C. is expected to conclude in 2019.<\/span><\/p>\n

\"WeChat

WeChat City App | Credit: Tourism Vancouver<\/em><\/p><\/div>\n

In July, <\/span>Tourism Vancouver announced a partnership with Tencen<\/span>t, an investment holding conglomerate (and one of the largest companies in the world), that will promote Vancouver as a tourist destination to Chinese travelers. Tencent owns WeChat, a communication app for Chinese citizens with over one billion active users. The partnership will create Canada\u2019s first-ever WeChat city app, which will act as a mobile guide for tourists, with information on hotels, restaurants, shops, attractions, and more.<\/span><\/p>\n

The B.C. government, however, was also thinking locally, <\/span>providing $100,000 to support Futurpreneur Canada\u2019s Rock My Business Plan<\/span> initiative. Futurpreneur Canada is a national non-profit organization that offers financing and mentorship to aspiring business owners aged 18 to 39. <\/span><\/p>\n

The money will go toward workshops in six communities across the province, covering how to manage cash flow, financing, market research, and operations.<\/span><\/p>\n

\u201cWe realize that it can be difficult for young people to gain the skills, knowledge, and financing needed to start a successful business,\u201d said Bruce Ralston, Minister of Jobs, Trade, and Technology. \u201cThe free Rock My Business Plan workshops provide mentoring and tools that can help young entrepreneurs overcome business challenges and start the journey of launching a successful business.\u201d<\/span><\/p>\n

Tech Giants Play a Role<\/span><\/h2>\n

Major players also made their mark in Vancouver in 2018. <\/span>It started with PCI Developments and Low Tide Properties <\/span>announcing a new, seven-story office development<\/span>, which will be designed for \u201cthe emerging digital media and creative sectors.\u201d <\/span><\/p>\n

The development will offer 160,000 square feet of office space, which is the equivalent of adding a tenth of Vancouver\u2019s current office space to the False Creek area.<\/span><\/p>\n

\"PCI
Credit: \u00a0PCI Developments Corp.<\/i><\/p>\n

\u201cThis adds significant supply to an emerging neighborhood that has been endorsed by the global and local creative and tech companies, including the first tenants into this new building,\u201d said <\/span>Blair Quinn, Executive Vice President at CBRE Canada<\/span><\/a>. <\/span><\/p>\n

In April, <\/span>Amazon announced plans to expand its Vancouver Tech Hub<\/span>, creating 3,000 jobs over the next few years in e-commerce, cloud computing, and machine learning.<\/span><\/p>\n

Not to be outdone, Facebook will be opening a new office in the city, taking over two floors (and approximately 36,000 square feet) in Cadillac Fairview\u2019s Waterfront Centre.<\/span><\/p>\n

\"\"

Kirsten Sutton, SAP | Credit: Science World <\/em><\/p><\/div>\n

This year also marked the public unveiling of SAP\u2019s expanded office. A global market leader in enterprise application software, the company\u2019s Vancouver labs have added more than 300 jobs since 2016, and this expansion completed the second phase of a $22-million investment.<\/span><\/p>\n

\u201cWe are proudly the largest software employer in British Columbia, committed to this province and to developing local talent,” <\/span>said Kirsten Sutton, Managing Director at SAP<\/span><\/a>. “We stand side by side with Premier Horgan and his government with common goals to solidify B.C. as a high-tech powerhouse.”<\/span><\/p>\n

Funding is on the Rise <\/span><\/h2>\n

It\u2019s been a <\/span>banner year on the funding side as well<\/span>, with companies in Vancouver accounting for $264M in funding in the first half of 2018 alone.<\/span><\/p>\n

On the lower end of the spectrum, Alavida Health, <\/span>a science-based remote treatment program for Alcohol Use Disorder (AUD) announced it had raised $2 million, with Nimbus Synergies Inc. leading the round. <\/span><\/p>\n

Startup Dooly.ai, which helps simplify administrative tasks for sales professionals, also raised $2 million, in a round led by ScaleUP Ventures, with participation from Panache Ventures, Pallasite Ventures, and New Avenue Capital. <\/span><\/p>\n

Elsewhere, Cozystay Holdings Inc., a vacation rental platform targeting Chinese vacationers, completed $4M in seed funding in 2018. While Eventbase Technology, a leading mobile event technology platform for global brands, raised $6.5 million. Madrona Venture Group participated in this financing along with BC Tech Fund (managed by Kensington Capital). Eventbase also recently received additional financing from Silicon Valley Bank and Espresso Capital.<\/span><\/p>\n

One of the largest funding rounds was generated by startup LoginRaduius, which helps companies centralize customer data and then build an integrated consumer experience. LoginRaduius raised $17 million in Series A Funding, led by ForgePoint Capital and Microsoft\u2019s venture fund, M12. The company intends to use the funding to accelerate product innovation, customer acquisition, and global expansion.<\/span><\/p>\n

\"Elastic

Credit: Elastic Path<\/em><\/p><\/div>\n

At the top end of the funding spectrum, though, is leader Elastic Path, a provider of enterprise headless commerce solutions, which announced $43 million in Series B growth investment. Funding for this round was led by Sageview Capital, with participation from current investors, Yaletown Partners, and BDC Venture Capital.<\/span><\/p>\n

Not to be outdone, though, Vancouver-based biopharmaceutical company Zymeworks signed a <\/span>licensing and collaboration deal<\/span> with BeiGene, worth a potential $1 billion. The two companies will now collaborate on the development and commercialization of molecularly-targeted and immuno-oncology drugs for the treatment of cancer. <\/span><\/p>\n

Motorola, meanwhile, agreed to buy Vancouver-based <\/span>Avigilon<\/span> for approximately $1 billion in cold, hard cash. Avigilon products include surveillance cameras and video analytics software, which are used in airports, government facilities, retail, and more. <\/span><\/p>\n

Local Heavyweights Make Their Presence Felt <\/span><\/h2>\n

In March, the city\u2019s HIVE Blockchain Technologies, one of Canada\u2019s largest cryptocurrency mining companies, acquired Kolos Norway AS, a Norway-based data center. <\/span><\/p>\n

One of the reasons for the acquisition was the center\u2019s potential to provide more than 1,000 megawatts of renewable, hydroelectricity energy. HIVE\u2019s current operations consume only 44.2 megawatts of energy. <\/span><\/p>\n

\u201cThis is another major milestone in our continuing global expansion as a leading blockchain and cryptocurrency infrastructure company,\u201d Harry Pokrandt, CEO and director of HIVE, <\/span>told Techvibes<\/span><\/a>. <\/span><\/p>\n

That same month, <\/span>The International Dota 2 Championships, <\/span>t<\/span>he biggest esports tournament in the world, announced that it was coming to Vancouver \u2013 the first time it would be held in Canada.<\/span><\/p>\n

This wasn\u2019t the only thing shining a spotlight on Vancouver, though. <\/span>12 companies from the area made it onto Deloitte\u2019s 2018 <\/span>Technology Fast 500 list<\/span>, which recognizes the fastest growing technology, media, telecoms, life science, and energy tech companies in North America.<\/span><\/p>\n

Bench Accounting, an accounting service for small businesses, came in at the top of local companies, at number 28. The company has increased revenue by 4,373 percent over the past four years and announced plans this year to hire 100 more people. <\/span><\/p>\n

The next local company to make the list was Left, a multinational media and technology company focusing on using personal devices to amplify wifi signals. Left came in at number 101. <\/span><\/p>\n

Here is the full list of <\/span>Vancouver companies<\/span> recognized by Deloitte\u2019s Technology Fast 500 list:<\/span><\/p>\n