Fewer Canadian tech companies growing quickly: Deloitte
Last Updated: Wednesday, November 12, 2008 | 11:53 AM ET
CBC News
Waterloo, Ont.-based Research in Motion Ltd., maker of the BlackBerry, has made Deloitte's Fast 500 list more than any other company, with the exception of life-science firms. Forty-three Canadian companies are among this year's 500 fastest-growing technology companies in North America, down significantly from five years ago because of the country's "crisis in venture capital," according to Deloitte.
The highest-scoring Canadian firm on Deloitte's list was Markham, Ont.-based Nightingale Informatrix Corp., a health-care service and software company. Nightingale ranked No. 10 for posting revenue growth of almost 23,000 per cent over the past five years.
Deloitte's annual Fast 500 tracks growth in technology, media and telecommunications companies over a period of five years. The professional services firm released its Canadian results last month and announced North America-wide results on Wednesday.
The other top five-ranked Canadian firms to make the North American list include:
- Toronto-based PlateSpin, which develops data-centre automation software, which came in just behind Nightingale at 11th spot. The company posted five-year revenue growth of 22,353 per cent.
- Toronto-based MyThum Interactive Inc. recorded 6,820 per cent growth to rank 44th. The company is a mobile interactive media technology provider.
- Vancouver-based Vision Critical, which makes software for interactive research, placed 54th with revenue growth of 5,291 per cent.
- Corinex Communications Corp., also based in Vancouver, placed 70th with 3,598 per cent growth. The company makes equipment for providing high-speed internet access.
Canadian companies' showing in this year's list was down by almost half from the 68 firms that ranked in Deloitte's Fast 500 in 2003.
The growth rate for Canadian firms was also down considerably. While the average revenue increase of all 500 companies was 3,043 per cent, Canadian companies in Deloitte's rankings last month managed only 2,457 per cent.
Deloitte blamed the poorer showing on diminishing venture capital money to fund smaller Canadian technology companies.
“While we have our share of Canadian success stories, led by companies like Research In Motion and Nightingale, Canada’s decreasing overall representation in this year’s Technology Fast 500 ranking spotlights our country’s ongoing venture capital funding crisis,” said John Ruffolo, national leader of Deloitte's technology, media and telecommunications industry group, in a statement.
"This growth-rate decline suggests that in future years, Canadian representation could decline even further unless we begin to remedy Canada’s venture capital crisis.”
Ont., Quebec, B.C., Alta. in rankings
The fastest-growing company on Deloitte's North American list was Germantown, Md.-based Hughes Communications Inc., which builds broadband networks and services. It had a growth rate of more than 138,000 per cent, with revenue going from $699,000 US in 2003 to more than $970 million US last year.
More than half of Canada's 43 ranking companies were based in Ontario, while Quebec, British Columbia and Alberta contributed 10 firms.
Waterloo, Ont.-based Research In Motion Ltd., maker of the BlackBerry, made the list for the ninth year in a row.
RIM came in at the 141st spot and has been on the list more than any other company, save for life-science firms.
