Another 26 Canadian tech companies are on their way towards reaching $1 billion in annual revenue, according to a data-based initiative from Kitchener-Waterloo’s Communitech.
Combined with the 35 startups named to Communitech’s initial list, which was published in June, the tech hub has now identified a total of 61 privately-held Canadian tech firms on the path to hitting $1 billion in annual revenue, based on each company’s current annual revenue and growth rate.
The analysis is based on current annual revenue and growth rate.
The latest additions to the list include companies like Montréal-based edtech firm Paper, Kitchener-Waterloo-based smart city company Miovision, and Calgary FinTech firm Neo Financial.
This 61-firm list was assembled by Communitech using data gathered by Silicon Valley Bank, analysis by New York data science firm Two Sigma, and a model it developed to assess company potential. With these new additions, the companies named to the list generated $8.1 billion in combined annual revenue last year with average annual revenue of $132 million, and average year-over-year revenue growth of 198 percent. Collectively, they employ over 37,000 people and have more than 2,500 open roles.
This analysis comes as public and private tech company valuations have fallen in recent months amid the broader tech stock rout, which has been fuelled by rising inflation, interest rates, and geopolitical tensions. Amid these conditions, some companies on this list, including Hootsuite, Article, and AlayaCare, have been forced to cut costs and lay off staff, and investors like Bessemer Venture Partners have called for more attention to be placed on revenue as a stronger sign of business strength.
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The full list of new additions also includes Montréal job search platform Talent.com, Toronto FinTech company Brim Financial, and Vancouver-based blockchain startup Dapper Labs, among others.
Each company on the list falls into one of four categories: $20 million to $39 million in annual revenue with a 60 percent or greater growth rate; $40 to $79 million in annual revenue with a 40 percent or greater growth rate; $80 to $99 million in annual revenue with at least a 20 percent growth rate; or more than $100 million in annual revenue with at least a 15 percent growth rate.
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Communitech did not identify which firm falls into which category, nor share each company’s respective annual revenue or growth rate.
Of the new additions, geographically speaking, Ontario led the way once more as 12 of the 26 new additions are based in the province. Next up was British Columbia with five. Again, no Saskatchewan, Manitoba, New Brunswick, Newfoundland and Labrador, or Nova Scotia-based companies have been identified by Communitech as on track to $1 billion. From a city standpoint, Toronto had six new additions, followed by Montréal with five, Vancouver with four, and Calgary and Ottawa with three apiece.
Here are the 26 new additions:
- Absorb Software (Calgary, AB)
- AlayaCare (Montréal, QC)
- Article (Vancouver, BC)
- Bench (Vancouver, BC)
- Borrowell (Toronto, ON)
- Brim Financial (Toronto, ON)
- Certn (Victoria, BC)
- Clearpath Robotics / Otto Motors (Kitchener, ON)
- Cority (Toronto, ON)
- Dapper Labs (Vancouver, BC)
- Geotab (Oakville, ON)
- Hootsuite (Vancouver, BC)
- Hopper (Montréal, QC)
- Info-Tech Research Group (London, ON)
- Koho Financial (Toronto, ON)
- Miovision (Kitchener, ON)
- Neo Financial (Calgary, AB)
- Paper (Montréal, QC)
- PurposeMed (Calgary, AB)
- Ross Video (Ottawa, ON)
- RVezy (Ottawa, ON)
- Solace (Ottawa, ON)
- Talent.com (Montréal, QC)
- Vena Solutions (Toronto, ON)
- Versapay (Toronto, ON)
- WorkJam (Montréal, QC)
You can find the full 61-company list here. Communitech plans to update the roster of firms on this list annually as new data is received and verified.
Feature image courtesy Neo Financial.