Waterloo's Communitech to focus on company scale-up with $9.7 million in CAIP funding

The federal government has completed the lengthy roll-out of its Canada Accelerator and Incubator Program (CAIP) with the announcement of $9.7 million over five years to Waterloo ON-based Communitech and its partners. The $100- million program was announced in two tranches in the 2013 and 2014 budgets (R$, February 24/14).

Managed by the National Research Council's Industrial Research Assistance Program, CAIP is providing existing business incubation and acceleration organizations a much-needed boost, allowing them to enhance and expand services from start-ups to established companies with high-growth potential seeking to expand globally.

For Communitech — one of Canada's most successful and high-profile business assistance organizations devoted to growing regional tech-based companies and clusters — the CAIP funding (to be matched with money from other sources) will underwrite the launch of new programs designed to assist start-ups to grow and scale.

"We want to help high-growth companies move to the next stage of $50 million to $100 million in revenue. It's extremely difficult for late-stage start-ups with up to 200 employees to get to that stage," says Steve Currie, Communitech's VP Strategy. "We will have a big focus on these gazelles to scale up and accelerate their growth. The more companies growing at the same time the better."

The CAIP supported program will focus on providing assistance in revenue generation, going global, talent recruitment, asset-to-growth capital and operational efficiencies.

"Emerging and growing companies are the forgotten generation. We are great at starting companies but not growing them," says Currie. "CAIP is unique around the world as it provides opportunities to add value ... It can really make a difference. It's all about revenue generation and getting more customers."

CAIP-supported programs already launched include Strong Leaders (training for mid-level managers and management teams for growth) and Growth Coach (mentorship by successful entrepreneurs, many of whom have grown companies beyond $1 billion in revenue). Currie points to mentors like Jim Estill who grew revenues at SYNNEX Canada and SYNNEX US to $2 billion. Estill's areas of expertise include time management, goal setting, mentoring, leadership, social media, blogging, marketing, writing, IPOs, venture capital, angel investing, directorship and branding.

CAIP will also help Communitech drive companies to Canadian Technology Accelerators operating in 12 cities globally by the Department of Foreign Affairs, Trade and Development.

Communitech will share its CAIP funding with its partners — the Univ of Waterloo, Wilfrid Laurier Univ and the Waterloo Accelerator Centre. Currie says they will take responsibility for specific programs within the CAIP funding envelope.

"Waterloo has a strong ecosystem and partnerships, both public and private," says Currie. "CAIP funding allows us to address gaps that have gone wanting for a number of years."

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