Growth in BC’s Tech Companies Driven by Investment and Increased Revenue
Rocket Builders Mid Year
Review of the 2013 Ready to Rocket List.
VANCOUVER, BC -
November 4, 2013
Rocket Builders has just
completed a mid year review of the 2013 Ready to Rocket List and found that
companies on the list are attracting investment and increasing revenue,
resulting in job creation and economic benefit for the province.
Ready to Rocket
is an annual list of the companies in Information Communications and Technology
(ICT), Cleantech and Life Sciences that Rocket Builders believes are most
likely to show break out growth in the coming year. The mid-year review involves
contacting all companies on the lists and arranging interviews to gather
insights and metrics regarding company growth. The median growth rates are over
30% compared with the previous year's base revenue.
"Our mid-year review of the Ready-to-Rocket companies
confirmed that this set of companies is growing and attracting investment. And
it is good to see that revenue is growing faster than job creation so the
average revenue per employee is going up.” Said Steven Forth, Partner at Rocket
Builders.
Six ICT Companies have closed
a total of $14,700,000 in investment, most of which was equity. Revenue per employee in Cleantech is
forecasted to grow to an average $171,000 in 2013 from $103,000 in 2012. Cleantech companies are demonstrating
strong, stable growth and this signifies advancement beyond simply early
adopters for this sector's technology innovation.
The fastest growing companies
are those that are focusing on a more precise target market. There is also a relation between simplicity
of business model and ability to grow: the simpler the business model the
easier it is to focus, execute and grow.
Complex business models can generate very valuable companies, but
generally take more time and capital to execute. The best performers on the Ready to
Rocket list have in common a valuable management technique – they have managed
their business decision making with analysis of business metrics, and benefit
most from a single key business metric specific to their business model.
Reg Nordman, co-author, Managing Partner at Rocket
Builders states, "These Ready to Rocket companies remain fast
growing and attract significant investment. Having a tight focus on their
markets with simple business models appears to be part of a winning
strategy."
Virtually all of the
companies in Ready-to-Rocket are focused on the US market for their revenue
growth.
