Report to: Economic Development Committee                         Date of Meeting: March 6, 2007

 

 

SUBJECT:                          Markham Space Race 2006 Final Report

PREPARED BY:               Darren Ciastko, Sr. Business Development Officer x 2655

 

 

RECOMMENDATION:

 

That the report titled “Markham Space Race 2006 Final Report” be received for information,

 

And that Staff bring forward the cost of the 2007 Space Race program in its forthcoming 2007 marketing plan report,

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

 

In 2006 the Town of Markham Economic Development Department, Colliers International, GWL Realty Advisors, FIT by Design, and the Innovation Synergy Centre in Markham (ISCM) collectively created and launched the first annual “Markham Space Race”, an innovative contest open to up-and-coming technology and export oriented companies across Ontario.  Participating companies were asked to demonstrate how their business plans position them for rapid growth, and the winner of the competition was awarded a fully-furnished, 1,000-square-foot “Class A” GWL office suite at 60 Columbia Way for one year ($50,000 value). The competition was open to small high tech businesses that have a minimum of three full-time employees, in operation for at least two years, with a focus on supplying products with a view to export.

 

Second and third-place winners were awarded the equivalent of $25,000 of in-kind business consulting and professional services from contest sponsors.  These services are designed to help accelerate the growth of the winning small technology businesses.  Winners of the competition were announced and profiled at the Markham Space Race awards dinner event at Angus Glen on November 23, 2006.

 

Due to the success of the 2006 Markham Space, as a founding organization the Town is making provisions to incorporate the Markham Space Race as a core marketing initiative for 2007.  The costs of this program will be included in the forthcoming 2007 marketing plan report.

 

FINANCIAL CONSIDERATIONS:

 

The Markham Space Race program is designed to be run on a cost recovery basis through corporate sponsorships and revenues collected from ticket sales at the awards dinner. As a result, beyond the essential contribution of staff time to organize and promote the event, the Town financial contribution is limited to sponsorship ($5,000) and the purchase of tables at the awards gala ($2,000).  These items will be funded through the Markham Space Race account 032 224 0016, which was set up in 2006 to receive funds from corporate sponsors, and to finance expenditures for the Markham Space Race program.

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

 

The purpose of this report is to provide Council with the final results of the 2006 Markham Space Race program and outline the action plan for the 2007 Markham Space Race program.

 

BACKGROUND:

 

In May of 2006 Economic Development staff made a presentation to Economic Development Committee outlining the concept of a new competition designed to support and help small technology companies grow in Markham by offering free office space as an incentive.  The competition was originally called CompTech 1000.  The competition was inspired by Jim Brown of Colliers International and collectively founded by GWL, FIT by Design, The Town of Markham, and the ISCM.  On June 20, 2006 the competition newly branded the “Markham Space Race”, was officially launched at the York Technology Association luncheon by then Mayor, Don Cousens.

 

A new website, www.markhamspacerace.ca was created to promote the competition, profile the founding organizations and sponsors and to make available the contest rules and applications for submission.  On September 30, 2006 the competition closed and submissions were graded by a panel of 3 judges established by the Innovation Synergy Centre.  On Ocotber 10, 2006, Economic Development staff presented a Markham Space Race update report to Economic Development Committee detailing the Gold, In-Kind and supporting organizations, the agenda for the awards dinner and to create a special account to act as the conduit to receive sponsorship funds and to pay Space Race costs.

 

OPTIONS/ DISCUSSION:

There are currently over 900 “High-Tech” companies in Markham of which approximately 80% have less than 5 employees.  This demographic represents companies that have the greatest potential for growth and are in most need of assistance and direction.  The Markham Space Race was designed as an innovative way for the founding sponsors to encourage companies in Markham as well as across the GTA and the Province to prepare a growth plan they can implement to ensure future success. Companies whose submissions don’t win still gain valuable experience by preparing a plan for growth. 

In addition to providing businesses with a very direct, unique and innovative way to accelerate their growth, the Markham Space Race is a vehicle to generate awareness, brand recognition and market Markham to growth companies throughout the province to potentially attract new investment and to support the retention of existing small and medium size business within Markham.

Marketing, Media and Promotion

An aggressive marketing and media campaign was launched to promote the Markham Space Race, generate recognition of Markham as Canada’s High-Tech Capital and to enhance the Town’s reputation as a community that is supportive of innovation and competitiveness in business.  Collectively the Town, Markham Board of Trade, ISCM, York Technology Association, National Research Council, Colliers International and GWL Realty Advisors conducted a direct marketing initiative consisting of emails, direct mail and newsletter distribution to their respective databases and contacts.  In addition to the direct marketing, Gail Bergman PR was hired to coordinate a media campaign intended to build awareness of the competition, encourage companies to participate, promote the sponsors, promote the awards dinner and follow the success of the winning companies.  A summary of the media exposure achieved in 2006 is summarized in the sponsor brochure (attachment 4).

 

Sponsorship and Supporting Partners

 

Two levels of sponsorship were established to cover the costs associated with the operations of the Markham Space Race program, to fund the awards dinner and to provide in-kind consulting services for the second and third place winners.  In-Kind sponsors were Wilson Vukolich LLP Barristers and Solicitors, The Insurers Financial Group, BDO Dunwoody LLP Chartered Accountants and Advisors, Burns Hubley LLP Chartered Accountants, PiVotal Integrated HR Solutions and Q1 Capital Partners. Cash/Gold sponsors were Staples Business Depot, Creechurch Insurance and Sands Commercial Floor Coverings.  The York Technology Association and National Research Council supported the competition through marketing assistance and promotion.

  

Gala Awards Event

 

A Gala awards dinner was held on November 23, 2006 at the Angus Glen Golf Club and was attended by over 160 community and business leaders.  The purpose of the gala was to announce the winners of the Markham Space Race competition and to recognize the founding organizations and sponsors.  In addition to the awards ceremony, the winning finalists were video profiled and a panel of successful entrepreneurs debated numerous issues associated with growing a business.  Attachment 1 provides a summary of media exposure resulting from the dinner press release followed by the awards dinner program (Attachement 2).

 

Markham Space Race Award Winners

1st Prize - Flatline Solutions Inc.
Flatline Solutions Inc. develops smart meter data acquisition and management systems
and provides services to property managers, utilities and consumers in Ontario to allow
them to view, manage, and proactively reduce their energy consumption.
 

2nd Prize - Rescue 7 Inc.
Rescue 7 provides first aid, health and safety equipment, supplies, training and consulting
to corporate, government, retail and emergency medical services (EMS) on an international level.  Products include the Automated External Defibrillator (AED), photoluminescent products (including exit signs) and bandages.  The R7 STEP (Safety Training and Emergency Preparedness) Program assesses organizations for compliancy and introduces unique products.
 

 

3rd Prize - Valt.X Technologies Inc.
Valt.X develops manufactures and markets Semiconductor Hardware based Computer Security Chips and Products to protect and ensure with absolute certainty that computers can recover instantly from any attack with zero downtime. VALTx hardware products, unlike software solutions, are not susceptible to attacks. VALTx licenses technologies and markets products to major computer manufacturers and distributors worldwide.

 

 

2007 Markham Space Race

 

The Town is again teaming up with founding organizations GWL Realty Advisors, Colliers International, FIT by Design and the ISCM to program and implement the 2007 Markham Space Race.  The 2007 program is scheduled to be launched by Mayor Frank Scarpitti on February 26, 2007 in conjunction with the grand opening and ribbon cutting ceremony for last year’s winner, Flatline Solutions.   The format of the 2007 competition will be very similar to the 2006 competition however we hope to grow the scope and scale of the program to increase it’s exposure to companies across the province.  Attachment 3 is the current list of target dates and objectives that have been established for the 2007 competition.

 

Currently, the organizing committee is in the process of recruiting Gold sponsors by February 19, 2007.  It is our intention to grow the competition this year however our ability to accomplish this goal is directly dependant on the level of participation from sponsors.  As a result, the scope of the 2007 Markham Space race will be scaled according to the commitment of sponsors who choose to participate.  

 

FINANCIAL TEMPLATE:

None                         


 

 

ENVIRONMENTAL CONSIDERATIONS:

None                         

 

ACCESSIBILITY CONSIDERATIONS:

None                         

 

ENGAGE 21ST CONSIDERATIONS:

The purpose of the Markham Space Race was designed to promote the Town’s Economic Development goal to establish, promote and support Markham as the best location for diverse high-tech and other leading businesses.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The Legal Department, Corporate Communications, and the Finance Department have been consulted to help frame the program.

 

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Stephen Chait, Director                      Jim Baird, Commissioner

                                      Economic Development                      Development Services

 

ATTACHMENTS:
  1. Markham Space Race awards dinner media coverage
  2. Awards dinner program
  3. 2007 Markham Space Race Target dates
  4. 2007 Space Race sponsor brochure