Which sectors are Canadian tech startups flourishing in?
The average two-year revenue growth for startups in Profit Magazine's Profit Hot 50 was over 1,000%. Many of these companies were technology startups, an industry renowned for hypergrowth. But which sectors within tech truly shone?
According to Profit's data, information technology services simply killed it. Not only were there more IT services startups in the Hot 50 list than any other tech sector, it was the most popular sector overall, beating out HR services and marketing services.
8 of the 50 companies were IT services companies, averaging a two-year revenue growth of more than 700%. The fastest growing IT services company placed 5th—Source 44 Consulting grew its revenue by well over 3,000%.
The second hottest tech sector was software development, with 10% of companies in the Hot 50 list categorized there. The average revenue growth for software development startups greatly exceeded that of IT services, clocking in at a remarkable 1,855%—the second-highest sector average in the list and the highest for technology sectors. The top software dev was Morega Systems, which grew revenue by a startling 7,900% to place second in the Hot 50.
Arnold Leung was dubbed "The Whiz Kid" for being the youngest CEO on the list at just 25. His company, Appnovation Technologies, squeaked onto the list at #48 with revenue growth of 121%.
