Nicoya Lifesciences, whose OpenSPR product reduces costs for scientists developing drugs from proteins, captured the $50,000 first prize at the Rev Centre Stage pitching event at Communitech on Friday night.
Two companies tied for second place and left with $25,000 each: Bridgit, which has developed an app that aids communications on construction sites; and Piinpoint, a data analytics outfit that helps companies find the optimal locations for their outlets.
The event marked the graduation for eight companies from the first Rev cohort. (Six pitched on Friday and two were unable to attend.) Communitech established Rev as an accelerator for growth-stage companies, and the mission was to teach the participants to effectively scale their businesses.
“We need to think about building big companies here in Kitchener-Waterloo,” Sam Legge, the Communitech program manager who oversaw the cohort, told the packed house. “That doesn’t mean $10 million in sales a year. It doesn’t mean $25 million. It means $100 million or more.”
Related: Rev Focuses on Growth Stage
So all six of the pitching companies were charged with explaining how they would achieve sales of at least $25 million by 2020 – or $100 million if possible. The judges were given a prize pot of $100,000 and told it to divide it among six pitchers as they saw fit.
The pitching companies told how they planned to hit $25 million, or at the very least detailed their growth metrics:
Nicoya Lifesciences – Proteins offer huge potential in battling diseases, but scientists conducting research on proteins need a piece of equipment called surface plasmon resonance, or SPR. These devices cost about $250,000 and have additional expenses to use. Nicoya has developed a cheaper alternative called OpenSPR, which is cheaper to use than existing options. The machine, which uses nano-technology, is already being used by 20 of the world’s leading scientists. CEO Ryan Denomme said the company has a plan to increase sales to 2,500 units a year in four years, which would produce revenues of more than $25 million.
PiinPoint – This company helps corporations find the best locations for their outlets, based on car and pedestrian traffic, zoning, complementary businesses and the like. The company now has 30 clients and its revenues are growing 20 percent month on month. It projects sales of $25 million with just a few hundred clients in a few years. “How do we hit $100 million in revenue?” asked CEO Jim Robeson. “We believe the next chapter of PiinPoint will be to help small businesses with loan applications and financial companies with risk mitigation.”
Bridgit – Since it entered rev, Bridgit’s monthly recurring revenue, or MRR, has tripled to $36,000. The company now offers a single product that helps general contractors and sub-contractors communicate with one another about problems on construction sites. CEO Mallorie Brodie said the company can accelerate sales with additional product, such as one that lets managers communicate with labourers, and an integrated product that would aid with such tasks as ordering materials. “One-hundred million dollars in annual recurring revenue is a credible goal for Bridgit,” said Brodie.
Set Scouter – This company, whose app helps film producers find residential locations, has been built entirely on revenue – mainly by clients in Toronto. CEO Alex Kolodkin said the company earns $300 to $550 each time a producer uses the product, and there are 8,900 film shoots in Toronto alone each year. Film producers spend about $4 million a year finding locations in North America alone, and 85 percent of the work is done in just eight cities.
Aterlo Networks – There are about 160 million homes in the world with too weak an internet connection to handle streaming services like Netflix. Aterlo allows their occupants to see the programing they want regardless of the strength of signal. With Aterlo, they can preload the content at night when the network isn’t busy, allowing them to watch the show the next day. The team has been selling the product to individual homes and have just landed their first deal with an internet service provider in New Zealand. “We believe everyone should be able to see a high-quality service no matter where they live,” said CEO Dan Seimon. “We’ve proven the demand, and we’ve proven it works.”
Blitzen – Rated as the No. 3 under-the-radar startup in the world by Business Insider, Blitzen has developed sales lead generation software for small and medium-sized enterprises. Once someone submits an email to an SME, Blitzen develops a profile of that person based on his or her social media sites and employer. Backed by about $2 million in venture capital, the company is now doing private beta tests and plans to launch in two weeks. CEO Jesse Guild said 1,000 potential clients have signed up to use the product.
Legge said Communitech is now accepting applications for the second cohort of Rev. Applications close Oct. 9.
Read our previous articles on the Rev cohort.
