OneEleven is a proven model for growth
Any entrepreneur will tell you that starting a company is one thing, but scaling it is entirely different. Scaling represents a unique set of challenges including growing, managing and motivating a team, designing and building a culture, handling the increasing demands of customers, putting in place the relevant systems and processes to handle the larger size, expanding into new markets, attracting the right investors and managing their needs, among other things. To make matters worse, entrepreneurs are faced with a tightening real estate market, intense competition for talent against companies that pay more, scarce sources of capital, and long sales cycles.
It isn’t surprising then, that the failure rate of companies for scaleups is more than 50 percent, according to a recent CB Insights study, resulting in a long-term problem for the innovation economy. Generating and funding a large number of startups that then go on to fail during scaling has the potential to erode confidence of customers, investors, and talent. Several studies have been published recently pointing to a need for a shift from startups to scaleups.
It doesn’t help that few support mechanisms exist to help companies navigate the stage between Seed and Series A funding. While there are a huge assortment of incubators and accelerators targeted toward the startup phase, few are dedicated exclusively to the unique needs of scaling.
Over the past five years, OneEleven has been working closely with many of the highest potential scaleups in the Toronto ecosystem, such as Borrowell, Statflo, Tulip Retail, and Big Viking Games, developing a unique formula that is tailored to their needs. By building an exclusive peer-to-peer community of experienced founders in scaling mode, providing them with a suite of services and turnkey infrastructure, OneEleven now serves 35 scaleups in their 50,000 sq. ft. office in downtown Toronto. There is so much demand that OneEleven is expanding to 100,000 sq. ft so that they can provide support to even more companies. They’re also opening an office in Ottawa in July 2018 that will accommodate 15 of the fastest-growing startups in our nation’s capital.
Perhaps more interesting, OneEleven is on a mission to establish scaleup hubs in cities around the world. The goal, says Hopkins, Chief Growth Officer at OneEleven, is to establish OneEleven as a global scaleup brand. Based on the latest Startup Genome’s Global Startup Ecosystem Report 2018, OneEleven is investigating the opportunities in the following tech ecosystems:
London is ranked as the #1 European ecosystem by Startup Genome and #3 in the world behind Silicon Valley and NYC, with over 7,500 startups. London has a tremendous startup culture with 65+ incubators & accelerators providing support. Despite the active startup ecosystem, resources that support companies as they scale are scarce.
Geographically, London is very decentralized with multiple centres serving technology companies. The most prevalent of these remain centered around Shoreditch and The City, with areas like Kings Cross and Paddington emerging for AI. These areas are now prohibitively expensive and the community gradually continues to move further out to more affordable areas.
OneEleven’s value proposition is a unique one for London and complimentary to many of the ecosystem players, operating as continued support for startups that have been through accelerators and incubators and continue on their journey, as well as a conduit for scaleups and VCs.
Ranked #7 in the Startup Genome’s global rankings, Berlin is a top destination for startups, large tech companies, and corporates alike and is home to several of Europe’s largest tech champions including N26, Zalando, and GoEuro. Recently, Berlin has become an important hub of international tech companies such as Google, Facebook, and Amazon. With approximately 2,000 tech companies in the city and highly active sectors in FinTech, AI, Mobility, Food Tech, and Cyber Security, Berlin is an important branch of the European and global technology ecosystem. In fact, last year, tech companies raised over €4bn ($6.1B CDN) of capital.
Berlin’s appeal stems from the city’s affordability, world-class education institutions, well-connected transit, and unique and inspired culture, food, and nightlife, all of which have led to a boom in technology companies over the last 5 years.
As the market matures there is an increasing need in the city to have supportive infrastructure and locations for scaling technology companies. OneEleven’s unique local community and scaling service concept combined with international connectedness can further support the evolution of the ecosystem as the city grows from being a hub for German and European tech companies to global champions.
Vancouver was ranked as Canada’s top startup hub by Startup Genome. It’s a diverse, fast-growing, inclusive ecosystem innovating across AI, Quantum Physics, AR/VR, Blockchain, FinTech, Gaming, and more. While Canada’s gaming studios contribute $3.7B to the country’s GDP, one-third of this is Vancouver-based. There were 331 new startups in 2016, a number that’s increased every year. Total high-tech companies in the province are well over 10,200, generating around $15B in GDP, seven percent of its total economy.
With proximity to Seattle, Portland, Silicon Valley, and Los Angeles, as well as close ties to Asia Pacific, India, and the Middle East, Vancouver founders are uniquely positioned to access venture capital, talent, and expertise not only from the Cascadia region, but from markets like China and Iran. Attractive immigration policies and Startup Visa Programs facilitate international recruitment, especially technical, and lure founders to a city consistently ranked one of the most liveable cities in the world. Major global players like Samsung, Microsoft, Facebook, and Amazon are contributing to Vancouver’s tech community.
While a small number of local startups have successfully crossed the chasm into billion dollar companies, such as Slack, Avigilon, and Hootsuite, the young fleet of new ventures will need significantly more support if they aim to increase their rate of growth. This means providing high impact, hands-on help at the Series A+ level with attracting top executive talent, greater access to growth capital, and accessible office space. And it cannot occur in a Vancouver bubble. True scale will only come with direct connectivity to the world’s leading tech hubs, investors, and customers. Enter OneEleven.