Last week, MaRS’ Data Catalyst team released the results from its survey of Toronto region startups. In addition to demographic information of startup founders, which pointed to ethnic diversity marred by a lack of female leadership positions, the study reveals key information on startup funding in Toronto.
Surveying 597 companies supported by MaRS’ venture services, the study indicates that almost half of all startups are in information and communication tech (ICT), with cleantech and health each comprising a quarter of Toronto’s startups.
The predominance of ICT startups in Toronto means that the sector comprises 41% of invested capital. However, the median raised capital for ICT startups ($163,000) is significantly smaller than in health ($345,000) and cleantech ($523,000). Significantly, 71% of startups surveyed indicated they were successful in securing funding, with the money most likely to come from private sources, and least likely via government grants.
Data Catalyst report also sheds some light on which startup segments are generating revenue, stating that 50% of ICT companies are producing income, with 47% in cleantech, and 40% in health saying the same. Of those companies, 7% of ICT startups surveyed, and 10% of cleantech are reporting over $1 million in annual revenue.
Those interested in reading MaRS Data Catalyst study, which was independently administered by KPMG, can do so via the link below.