Presentation to Oshawa City Council March 20, 2017 Dennis Croft - - PDF document

Dennis Croft Spark Centre 21 Simcoe Street, South Oshawa, Ontario, L1H 4G1 August 8, 2016 City of Oshawa Attention: Kyle Benham 50 Centre Street South Oshawa, Ontario L1H 3Z7 RE: Report on Use of Funds for Spark Centre’s Facility in Oshawa (January 2016 to July 2016) We are pleased to submit a report on Spark Centre’s performance against the expectations of the City of Oshawa as it relates to the five-year funding contract, for a downtown location. We highly value the partnership between the City of Oshawa and Spark Centre. The partnership reflects the mutual vision of building a thriving, entrepreneurial community in downtown Oshawa. We believe you will be very happy with the results of our locational presence in downtown Oshawa; a presence which would not have been possible without the City’s support and funding. I would be pleased to provide additional commentary or answer any questions. Sincerely, Dennis Croft CEO & President, Spark Commercialization and Innovation Centre Enclosure: 2016 Annual Report 2016 Audited Financial Statements Spark Centre Invoice: August 01, 2016 to July 31, 2017

Presentation to Oshawa City Council March 20, 2017

Use of Funds for Spark Centre’s Facility in Downtown Oshawa The following summary outlines key metrics used by Spark Centre to communicate performance criteria of the City

• f Oshawa funding agreement:

Summary of Key Results: Current Period: January 1 to July 31, 2016 Contract to Date: August 1, 2014 to July 31, 2016

Commentary of Key Activities: Thrive Program: Spark Centre’s Thrive program provides high potential clients above average access to free office space, advisory services, assistance sourcing funding, and preferred access to service providers. The program is run in four-month cycles, and can see as many as 10 companies included. Each company must have its head office located at The Loft, in Oshawa. During the current period, Spark Centre had eleven (11) companies in the Thrive Program, four (4) of which were past Durham Ignite winners. The full list includes: IFTech Inventing Future Technology Inc. National PRO Staff Sound Options Tinnitus Treatments Tiko 3D Zambah CrossPlatform Cloud Technologies Inc. Henlen Watches Panda Insights UConekt (graduated out of program) Seriously Fun Games (graduated out of program) YoSpotMe (graduated out of program) Several of these clients have experienced significant success: Tiko3D raised $3.5M on Kickstarter in 4 weeks during March 2015, which marked one of the top Kickstarter successes of all time. The company has created a proprietary 3D desktop printer with a retail price of $179 USD. For this current period Tiko created 11 additional paid jobs, bringing the total jobs to 20. Tiko has started shipping 18,000 units worldwide and has opened a manufacturing facility in China. National Pro Staff has become the North America online community leader for angling and

• fishing. The company provides a free online community to users and provides team

management software and advertising to companies such as GoPro, Shimano, and Pure

• Fishing. Over the past six months, NPS has seen incredible growth. The team has grown to more than 12 full time-

since inception, has added more than 400 brands to their platform, and has increased to 80,000+ active users. Additionally, they have released an entirely new web platform and are within weeks of launching a new mobile app.

Youth Incubator Program To date the student-focused incubators have contributed to 46 companies, supported 82 students, provided over 53 events, and over $80,000 in fundraising towards these companies has occurred. The program offers students ages 18 to 29 the opportunity to spend time with Spark Centre at The Loft and have the same level support offered to our Thrive Program clients. This program is held in partnership with UOIT and Durham College. Youth Incubator Program Video: https://www.youtube.com/watch?v=ObA--zhGWQ0 Spark Centre’s Cohort 4 Summer Youth Incubator launched on May 2nd, 2016. The program is held for the best and brightest Durham Region student entrepreneurs to come together and learn what it takes to be an entrepreneur. Working out of The Loft, students learn many of the key skills necessary to build a successful business venture while networking with Spark Centre staff, clients and partners. 12 student companies were accepted into the Summer 2016 program from Durham College and University of Ontario Institute of Technology. 25 workshops were held on topics such as Marketing and Branding, Lean Business Model Introduction, Startup Sales, Startup Law and many more. In January 2016 Spark launched the winter incubator by working closely with Durham College and UOIT, saw 6 companies and 10 students. UOIT’s Brilliant Program @ The Loft: Spark Centre continues to subcontract with UOIT to facilitate and manage their Brilliant Entrepreneurship incubator at our Loft location. This 16-seat incubator sees UOIT-based student companies, entrepreneurship events, and formal entrepreneurship curriculum teachings. This is a major step in joining post-secondary, entrepreneurship-focus with Spark Centre in downtown

• Oshawa. In fact, during this recent summer, the UOIT Entrepreneurship credit course used

this space for its curriculum delivery. International Soft Landing Program: In January 2016 Spark Centre in partnership with Durham Region launched an international Soft Landing program. The program was primarily targeted to Chinese and Brazilian companies seeking expansion to Canada. The first program was delivered in May 2016 and saw five Brazilian companies attend Spark Centre’s Oshawa location for

• ne week. The program was a significant success and resulted in an impressive follow on demand by Brazilian

companies. Spark Centre has hosted three tours from Brazilian organizations - including the Brazilian Chamber of Commerce, and is gearing up for another one-week program in September 2016. We continue to get international interest including visit from companies in China, The Netherlands, United States, and Brazil.

Spark Headquarter Usage: Spark Centre’s corporate address is The Loft location in Oshawa. With a mandate to cover Durham Region, Northumberland County, as well as South Lake areas, Kawartha Lake area, Peterborough area and Haliburton area, this office location is central to all we do. Currently we maintain almost 20 full and part-time staff in location, including executive management, marketing, client services, operations, and human resources. We also see over 200 clients each year, most of which are met and advised through our Loft location. Our Board of Directors, Industry Advisory Board, and many of our key events occur at our Loft location. We continue to have partner interactions in Oshawa and are now seeing regular usage of the facility by Ontario Centres of Excellence (OCE), National Research Council (NRC), BDO Canada, 360 Insights, and Meridian Bank. We have hosted a large number of tours including: international governments, provincial and federal governments, industry partners, and various academic organizations. The impact of all of headquarter activity has a significant impact on downtown economics in the area of parking revenues, retail purchases, event space, and student concentration. City Acknowledgement: Spark Centre is completely transparent with regards to the City of Oshawa’s partnership and funding leverage. Spark Centre ensures that the City is front and center when it conducts tours, media events, interviews, partners’ sessions and other key activities. Spark Centre is proud to display the City of Oshawa’s logo in The Loft. We ensure the logo appears on any activities we do in Oshawa, and for the most part in Durham Region. Three recent videos produced by Spark Centre feature Oshawa and our incubation location, The Loft. http://www.sparkcentre.org/news/spark-centre-inspiring-innovation/ Further, the Mayor of Oshawa is a main stage presence at any event we host in Oshawa. Spark Centre is excited to be part of Oshawa’s downtown development strategy, BIA, smart city strategy, and an integral part of Durham College and UOIT Oshawa growth plans.

CITY OF OSHAWA FUNDING REPORT

AUGUST 2016-DECEMBER 2016 An explanation of the use of funds by Spark Commercialization and Innovation Centre and summary of key program features

Contents

CEO’s Summary __________________________________________________________________________________________ 1 Use of Funds: Spark Centre – The Loft (Downtown Oshawa) ________________________________________ 2 Commentary of Activities _______________________________________________________________________________ 3 Featuring Thrive Program clients_______________________________________________________________________ 4 Youth Incubator Program _______________________________________________________________________________ 5 International Soft Landing Program ____________________________________________________________________ 6 Spark Headquarter Usage _______________________________________________________________________________ 6 City Acknowledgement __________________________________________________________________________________ 7

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CEO’s Summary Report on Use of Funds for Spark Centre’s Facility in Oshawa (August 2016 to December 2016) We are pleased to submit a report on Spark Centre’s performance against the expectations of the City of Oshawa as it relates to the five-year funding contract, for a downtown location. We highly value the partnership between the City of Oshawa and Spark Centre. The partnership reflects the mutual vision of building a thriving, entrepreneurial community in downtown Oshawa. We believe you will be very happy with the results of our locational presence in downtown Oshawa; a presence which would not have been possible without the City’s support and funding. I would be pleased to provide additional commentary or answer any questions. Sincerely, Sherry Colbourne CEO & President Spark Commercialization and Innovation Centre February 6, 2017

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Use of Funds: Spark Centre – The Loft (Downtown Oshawa) The following summary outlines key metrics used by Spark Centre to communicate performance criteria of the City of Oshawa funding agreement: Summary of Key Results: Current Period: August 1 to December 31, 2016

This Period: Outcomes Seats Deployed 81 Client Companies on premise or accessing premises 125 Full-time Spark Staff on premise as at December 31, 2016 7 Part-time Spark staff using premise as at December 31, 2016 6 Funding raised for clients on premise $ 1,685,000 Paid jobs by Client Companies on premise 21 Clients visiting 251 Rent paid to Core21 $ 49,890 Facility Improvements Events Held at The Loft 7 Events Held in Downtown Oshawa 9 Partners visiting 20 Tours of The Loft 16 Payroll for Spark staff and advisors on premise $ 227,272

Contract to Date: August 1, 2014 to December 31, 2016

Contract to Date: Outcomes Paid jobs by Client Companies on premise >75 Funding raised by clients on premise $ 6,485,000 Clients visiting >400 Rent paid to Core21 >$249,000 Facility Improvements $ 6,400 Events Held at The Loft >70 Events Held in Downtown Oshawa >90 Tours of The Loft >75 Payroll for Spark staff and advisors on premise $ 1,516,000

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Commentary of Activities Thrive Program: Spark Centre’s Thrive program provides high potential clients above average access to free office space, advisory services, assistance sourcing funding, and preferred access to service providers. The program is run in four-month cycles, and can see as many as 10

• companies. Each company must have its head office located at The

Loft, in Oshawa. During the current period, Spark Centre had ten (10) companies in the Thrive Program, six (6) of which were past Durham Ignite winners. The full list includes: IFTech Inventing Future Technology Inc. National PRO Staff Sound Options Tinnitus Treatments Tiko 3D Zambah CrossPlatform Cloud Technologies Inc. Henlen Watches Dash MD Hexyoo Scientific Panda Insights (graduated out of program)

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Featuring Thrive Program clients is developing a mobile app that helps patients track, manage, and find the care they need once they’ve left the hospital. The app is a one-stop shop for everything a patient needs for their aftercare and can be tweaked to individual needs with medication schedules, resources for community care and slotting in doctor visits. Hospitals can also use the app in sync with patients to ensure they are getting the proper care when they leave the building. Caregivers who manage the care of children or senior citizens can also use the app. DashMD is assessing interest from health networks across the country. In the near term, the focus is on closing a round of financing (approx. $500k) to support future growth. They were the Young Entrepreneur award winner at Ignite 2016. Hexyoo Scientific has developed an OpusGel compression wrap for safer, faster recovery which is currently in the market. A proprietary gel-based pressure ulcer pad for use in hospitals is currently being developed. The gel pad is placed over a mattress and has embedded sensors to help with the treatment and prevention of pressure ulcers. Currently two patents are in process. Hexyoo Scientific received the General Entrepreneur award at Ignite 2016.

iApotheca's suite of pharmacy tools provides Canadian retail

pharmacists with a single platform to streamline and manage multiple aspects of their pharmacy operations. The web-based tools focus on ensuring regulatory compliance, operational efficiency, and streamlined communication within the pharmacy. The tools within the suite currently include: Narcotic Reconciliation Module, Smart Fridge Temperature Monitoring Module, Pharmacy Delivery Module, Policies and Procedures Module, Pharmacy Task Management Module, among others. Sales have grown from 600 pharmacies using the product last summer to over 1,400. iApotheca are in the enviable position of not requiring funding as sales are now supporting the company. iApotheca is in discussions with large pharmaceutical companies that want to brand label their product and provide to pharmacies. Three new employees were hired in the Fall and one person is scheduled to start Feb 2017.

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Youth Incubator Program To date the student-focused incubators have contributed to 46 companies, supported 82 students, provided over 53 events, and over $80,000 in fundraising towards these companies has occurred. The program offers students ages 18 to 29 the opportunity to spend time with Spark Centre at The Loft and enjoy the same level of support offered to

• ur Thrive Program clients. This program is held in partnership with UOIT and Durham

College. Youth Incubator Program Video: https://www.youtube.com/watch?v=zRrlbGwXiwY Spark Centre’s Cohort 4 Summer Youth Incubator launched on May 2nd,

• 2016. The program is held for the best and brightest Durham Region

student entrepreneurs to come together and learn what it takes to be an

• entrepreneur. Working out of The Loft, students learn many of the key skills necessary to

build a successful business venture while networking with Spark Centre staff, clients and partners. 12 student companies were accepted into the Summer 2016 program from Durham College and University of Ontario Institute of Technology. 25 workshops were held on topics such as Marketing and Branding, Lean Business Model Introduction, Startup Sales, Startup Law and many more. In January 2016 Spark launched the winter incubator by working closely with Durham College and UOIT, and saw 6 companies and 10 students. UOIT’s Brilliant Program @ The Loft: Spark Centre continues to subcontract with UOIT to facilitate and manage their Brilliant Entrepreneurship incubator at our Loft location. This 16-seat incubator sees UOIT-based student companies, entrepreneurship events, and formal entrepreneurship curriculum

• teachings. This is a major step in joining post-secondary, entrepreneurship-focus with

Spark Centre in downtown Oshawa. In fact, during this recent summer, the UOIT Entrepreneurship credit course used this space for its curriculum delivery.

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Idea Engine A collaboration between Durham College, Spark Centre and UOIT Brilliant Entrepreneurship. This accelerated program is designed to help student entrepreneurs focus solely on business idea generation and development and consists of a series of weekly, 2-hour workshops and activities. The engine takes student entrepreneurs from developing their business idea to pitching it - in just one semester – at UOIT. The program delivers a combination of workshops, mentoring (both from advisors and peer-to-peer), and social events. International Soft Landing Program In January 2016 Spark Centre, in partnership with Durham Region, launched an international Soft Landing program. The program is targeted to International companies seeking expansion to Canada. The first program was delivered in May 2016 and saw five Brazilian companies attend Spark Centre’s Oshawa location for one week. The program was a significant success and resulted in an impressive follow-on demand by Brazilian companies. Spark Centre and Durham Region plan to run another one-week program in May 2017 and will openly market the program to all International tech companies interested in participating. Spark Headquarter Usage Spark Centre’s corporate address is The Loft location in Oshawa. With a mandate to cover Durham Region, Northumberland County, as well as South Lake areas, Kawartha Lake area, Peterborough area and Haliburton area, this office location is central to all we do. Currently we maintain almost 15 full and part-time staff on location, including executive management, marketing, client services, operations, and human resources. We also see

• ver 200 clients each year, most of which are met and advised through our Loft location.

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Our Board of Directors, Industry Advisory Board, and many of our key events occur at

• ur Loft location. We continue to have partner interactions and visits at The Loft and host

tours. The impact of these headquarter activities has a significant impact on downtown economics in parking revenues, retail purchases, event space, and student concentration. City Acknowledgement Spark Centre is completely transparent with regards to the City of Oshawa’s partnership and funding leverage. Spark Centre ensures that the City is front and center when it conducts tours, media events, interviews, partners’ sessions and other key activities. Spark Centre is proud to display the City of Oshawa’s logo at The Loft. We ensure the logo appears on any activities we do in Oshawa, and for the most part in Durham Region. Further, the Mayor of Oshawa is a main stage presence at any event we host in Oshawa. Spark Centre is excited to be part of Oshawa’s downtown development strategy, BIA, smart city strategy, as well as an integral part of Durham College and UOIT Oshawa growth plans.