The United States is home to essentially every major business vertical there is. With a population of 313.9 million, it is a logical step for Canadians, with a home base of 34.88 million, to look south for their global expansion efforts. For many, starting in the Big Apple is the goal. Nevertheless, breaking into the New York City arena can be an arduous feat for any international startup. There is office space to find, talent to identify, regulations to follow and networks for which access to can take years. Indeed, the barriers to entry can be intimidating, but for a select group of Canadian companies the process is proving to be a little easier.Founded in 2012, each year the Canadian Accelerator accepts two cohorts of six digital startup companies, providing a three-day orientation program, in-house advisors and mentorship, and office space at Grind—a modern co-working community in midtown. The competitive program lasts for four months and a visa is not required. At least one representative from each company must be in New York for the entire program.
Sponsored by the Canadian Consulate General in New York, and now hosting its 8th cohort, the program is part of the Canadian government’s effort to facilitate cross-border trade and investment.”A lot of investors know CTA, and being at Grind is great exposure,” said Charles Brun, CEO and co-founder of Now In Store, one of the members of the current cohort. The company has many clients in the US and hopes to continue growing in this region. Launched in April 2012, Now In Store helps primarily fashion and design companies to quickly create digital catalogs and marketing content.As the US is the country’s largest trading partner, it is critical to the Canadian economy that promising companies are well positioned for commercial success there. As part of the format of the CTA, the program provides contacts and oversight to help expedite expansion or integration into the US market.
PROVIDING RESOURCES AND A RELAXED VIBE
One of the companies which is currently part of the CTA is I Think Security, a data protection company which works to prevent cyber attacks and corporate espionage. Based in Kitchener, Ontario, its CEO, Cedric Jeannot, has brought the company to NYC via the CTA. “We can do things here in four months that would normally take six to eight months,” said Jeannot.Jeannot first heard about the CTA through the Canadian Digital Media Network, a Canadian federal program to enhance the information and communications technology sector in the country. He said that he is grateful to be in a program that offers a unique opportunity for knowledge sharing and mentorship, and that also values autonomy. “It’s pretty laid back; there’s no micro-managing.”The relaxed vibe personifies the work environment at the accelerator, which is intentionally curated to bring in a diverse mix of companies. By putting these companies together, the accelerator hopes to spark unintended collisions and partnerships. CTA sponsors events for the group that foster this mantra.On a recent Monday evening, the CTA participants converged over Lebanese food and beer while discussing their businesses and experience in New York City. “It’s a great surprise to learn about all of these companies from Canada competing for space in America,” said Jesus Mascias, a pre-sales engineer at Nexalogy Environics, a social media analytics company. Mascias said that he appreciated the synergies created among the group, and the government’s support as well. “That’s how you get global,” he said.Volunteer mentors are a big part of the program and help to make internationalization efforts a reality. Sanjay Gopal, a sales director at Sprint, has been involved with the program for the past year. With over 18-years of experience in sales, his one-on-one mentoring is valuable to companies in need of marketing, growth, and business development guidance. “The people are very young and tech savvy, but don’t know how to take [their product] to market,” he said. As a native of Halifax, Nova Scotia, Gopal said that the program is close to his heart.Besides the mentoring, CTA organizes pitch and friendly fire sessions with media companies and industry experts. Erica Gruen, Principal of Quantum Media, a New York based consulting firm, led one of their recent friendly fire dinners. “These roundtable sessions help the entrepreneurs not only to improve their product, they also build a network of potential clients and valuable contacts in this city,” she said.
SUCCESSES
The program has a number of success stories; some of the highlights include Frank & Oak, a Montreal based online menswear retailer that raised $5 million in series A funding. Since its launch in February 2012, the company has presented at New York Fashion Week and received acclaim in both regions for its moderate price point, community engagement, and quality wears.BusBud is another success story: Also based in Montreal, the company makes it easier to book bus travel in over 80 countries. Last year the company raised over $1 million in funding for its expansion efforts. BusBud’s CEO, LP Maurice, was recently named as a 2014 NYC Venture Fellow. Sponsored by the 92nd Street Y and the New York City Economic Development Corporation (the NYCEDC is a partner of New York International for the World to NYC program), the program is “a world-class, year-long fellowship program designed to help high-potential entrepreneurs scale their ventures in New York City.”Once graduating from the four-month program members go on to be part of an alumni group in which most companies have continued to do business in New York City. “When you are in New York you get a lot more respect from people all around the world,” said Charles Brun. “People listen to you differently; they pay attention.”