TEC Edmonton delivers economic results
(Edmonton) The University of Alberta’s business accelerator is helping entrepreneurs get an edge in their industry, according to a new survey.
TEC Edmonton, a joint venture between the U of A and the Edmonton Economic Development Corporation, announced the results from its 2012 Economic Outcomes Survey on Aug. 15. The results suggest entrepreneurs using the business services of organizations like TEC Edmonton achieve far better results than those who do not.
Chris Lumb, CEO of TEC Edmonton, said, “These survey results show our unique, made-in-Alberta technology incubator and accelerator is delivering as promised for spinoff companies from the University of Alberta and other academic institutions, and for startup companies in the community at large. These results also speak to our recent number-one ranking in Canada as a business incubator.”
The international University Business Incubator Index ranked TEC Edmonton as the top Canadian university business incubator and 17th best university business incubator in the world in 2012.
Beating the industry odds
In 2012, TEC Edmonton’s 106 client companies generated $103 million in revenue—a 25% growth in revenue from the previous year. In comparison, an Industry Canada national study showed an average 10% growth for early-stage entrepreneurial ventures. TEC client companies also had a 95% one-year survival rate, versus Industry Canada’s benchmark 80% to 85% survival rate.
“The success of TEC Edmonton and these innovation-driven companies demonstrates our province can compete globally by transforming research into products and services people need,” said the Honourable Thomas Lukaszuk, deputy premier and minister of enterprise and advanced education. “Alberta has created a supportive climate for innovation, and we are proud to bring ideas and people together in ways that create jobs and economic activity.”
- TEC Edmonton’s client companies raised $55 million in financing and funding last year.
- TEC client companies employed 1,100 people last year, up 28% from 2011.
- Another $30 million was reinvested by the client companies in research and development, leading to faster future growth.
- Of the 60 companies surveyed in both year 1 and year 2, 38 of those companies added jobs in both years. Those 38 were responsible for 90% of the total job growth in both years.
The 2012 survey is the second annual report in a planned five-year study.