Annual Report - TEC Edmonton · and to other angel investors and venture capital funds. TEC Venture...

Annual Report2015 - 2016

discoveryinnovationtrustincubationcollaborationgrowth

successaccelerate

entrepreneurs for entrepreneurs

MESSAGE FROM THE

CEO

Chris Lumb CEO TEC Edmonton

This past year, the Edmonton region has made tremendous strides in further establishing itself as a leader in entrepreneurship, technology, research and most recently as an ecosystem of healthcare innovation.

TEC Edmonton enables this growth by supporting emerging startups across a diverse array of sectors. Thanks to the collective expertise of business development, technology management and entrepreneur development specialists who make up our team, TEC provides well-rounded and advanced services to our clients that enable them to perform better than Canadian benchmarks, as evidenced by our annual client survey results.

Our strategic partnerships with the University of Alberta, all three levels of government, investors, and corporate sponsors enable us to provide an even greater quality of resources, training and support to our region's entrepreneurs. This past year we developed several significant new corporate partnerships for TEC in the telecommunications and health sectors, which will provide our entrepreneurial clients with better access to global markets.

I invite you to share in our clients' success through the pages of this annual report. These are only a fraction of the many exciting businesses our clients have built. We know it will provide you a glimpse of how strong the entrepreneurial spirit is in the Edmonton region, and why we can confidently say that "TEC Edmonton clients do better."

IndexIt Starts With YouClient Survey ResultsOur ServicesHealth MomentumClient StoriesLicensing StoriesWhere Are They NowSignature EventsVenturePrizeMessage from Board ExecutivesFinancialsLeadership

020304081015161718202122

01

VolunteersSponsorship

2324

#4 in North America#1 Incubator of the Year #16 in the World

It starts with you and your technology-based products, services or processes. You may have a startup company that needs to go to the next level. Or your early-stage company is ready to ramp up but you need assistance and guidance.

Whatever your next step,we help you get there.

It starts with you

• Our Executives-in-Residence (EIRs) are all experienced executive-level entrepreneurs who have grown and run technology-based companies. You won’t find better business advisors than our EIRs and TEC Business Development Associates.

• Our technology management professionals are among the best in Canada. When it comes to commercializing and protecting your intellectual property, you are in the best hands possible.

• We measure our outcomes. We continually monitor, measure, review and improve our services and programs to make sure they are the best for you.

• Our innovation network is all-encompassing. As our client, it’s your network too.

we are distinctInventors, entrepreneurs,& companies who work with us are moresuccessful. It’s a fact.

who we are &what we doWe are a community partnership: a joint venture between the Edmonton Economic Development Corporation (EEDC) and theUniversity of Alberta. Our purpose is toaccelerate the growth of emerging technology-based companies in Greater Edmonton and Northern Alberta.

We are a bridge between the university and our community and we work with both community entrepreneurs and university-based researchers. Through our people, networks, and facilities, we develop our region’s innovation reputation worldwide by helping build successful companies and promoting innovation.

02

our do clients betterTEC Edmonton Client Economic Outcomes Summary

03

5 yeartotal

680 million5 year

client revenue

22 Spin-offsUniversity of Alberta

companies created in thepast 5 years

597organizations

surveyed

354 millionfinancing/fundingraised by clients

(vs 1-5% Canadian Benchmark) 1,530 FTEs

25% compoundannual growth rate

employment createdby clients

year over year survival rateof clients (versus 83%Canada benchmark)

204 millionR & D investment

by clients

161organizations surveyed

$207.7 millionannual revenue of clients

21% growth(404 new FTEs in 95 orgs)employment created by clients

$121.2 millionfinancing/funding raised by clients

$62.1 millionR & D investment by clients

2015-2016






98%1 year survival rate of clients






99%1 year survival rate of clients 2014-

2015

2013-2014

2012-2013

2011-2012






99% (vs 85% IndustryCanada benchmark)1 year survival rate of clients





$17 millionR & D investment by clients

Business Development helpsyour early-stage companygrow by assisting inareas o f bus inessranging from marketresearch tobusiness planning to product development.

04

BUSINESSDEVELOPMENT

ExecutiveContracting

2 T Accelerator

Health Accelerator

programs

UA Solve

Matching companies needing industrial solutions to relevant University ofAlberta researchers and facilities.

Promoting, facilitating andaccelerating Alberta’s health-relatedbusiness innovation.

TEC & TELUS partnership to promote innovativetechnology solutions.

Branding&

MarketingBusinessPlanning

&Modeling

CorporateStructure

&Governance

MarketResearch

Mentoring&

Coaching

ProductDevelopment

RegulatoryCompliance

Providing interim short-term management, when needed, for your company.

Helping you determine the commercial viability of your idea or product.

Through TEC partners, your product can be enhancedand tested for quality assurance and safety.

Assisting and guiding you every step of the way.

Guiding and helping youmeet the requirements ofgovernment regulatoryagencies.

Helping you set up your company’s internal organization and governancemodel.

Developing with you a realistic, multi-year business plan.

services

Effectively positioning yourcompany in the market andcommunicating your valuewith focused content andcreative designs.

services 05

ENTREPRENEUR

AcceleratorSpace

programs

TEC Source

If your company qualifies, a panel of volunteer business service experts put together by TEC will sit down with you for a two-hour session to advise you on your early-stage business challenges.

This service is free of charge.

Lunch & LearnsA series of lunch-time seminars at TEC presented by our in-house experts

and our partners, on various business topics of interest to early-stage companies.

TEC VenturePrizeAn annual business plan competition produced by us to showcase Alberta’s top new companies

with over $200,000 in prizes.

DEVELOPMENT

TEC Centre Incubator

global connectorprogram

Using the spirit of an“entrepreneurs for entrepreneurs”approach, we provide you witha diversity of services, programs

& partnerships to help you grow asan entrepreneur.

In June 2016, TEC Edmonton announced the launch of new accelerator space at Enterprise Square, where we will host industry-sponsored startup companies in specific accelerator programs.

Additionally, the accelerator space will be community space for local technology-based entrepreneurs to access services to accelerate their progress at the different stages of their company growth.

The new accelerator space is a prime example of industry, government and economic development agencies collaborating to nurture companies that will diversify Alberta's economy.

The TEC Centre, located on the 4th floor of Enterprise Square, provides office, laboratory and small-scale manufacturing space to early-stage

clients, along with access to TEC experts and services.

The Global Connector program helps companies develop export markets. TEC Edmonton clients that export outside the US grow 50% faster than those that don't, and invest three times as much in R&D in Alberta. We connect companies with multi-lingual professionals to develop and execute on plans for exporting to new markets.

06

FUNDING& FINANCING

services

FinancialAssessment

GrantFunding

InvestorPresentation

programs

We introduce you, and give you the opportunityto present your company to both TEC Edmonton’sin-house investor group, the TEC Venture Angels,and to other angel investors and venture capitalfunds.

TEC Venture AngelsThe TEC Venture Angels is an angel investor group, a joint ventureof the Edmonton Chapter of the national VA Angels Investor Groupand TEC Edmonton. If your company is considered investment-ready,we assist you in making your pitch to the TEC Venture Angels.

We assist you in becominginvestment-ready, thenhelp you find fundingand financing.

Industry DaysThroughout the year, TEC Edmonton provides a platform to bring researchersand company representatives together with multinational industry partners to createcollaboration and mentorship opportunities on promising technologies.

We help you find, then apply for government/institutionalfunding. We assist you in ensuring you meet the criteria forsuch funding.

We help you determine if you are investment-ready, either from government/institutionalfunding or the investment community. If so,we help you prepare financing applicationsand/or presentations.

2 programsadd circle for innovation

Innovation Makes SenseInnovation Makes Sense is a TEC Edmonton event that celebratesthe translation of local research and innovation into valuabletechnologies and products.

The event highlights the collaboration, coordination and partnershipbetween researchers, funding agencies, business entities, the Universityof Alberta and TEC Edmonton as the University's technology transfer agent, recognizing those who have been issued patents and themost recent spin-offs created out of the University of Alberta.

events

07

TECHNOLOGYMANAGEMENT

We help you determine if your invention has commercial potential and can be copy-

right or patent protected.Once protected, TEC can help you determine the bestroute to commercializationas the exclusive providerof intellectual property andcommercialization services

to researchers at theUniversity of Alberta.

services

Intellectual

Property

Strategy &

Protection

We will collaborate with you and our network ofprofessional patent law firms to determine the beststrategies for you to protect your intellectual property.

Patent,

Trademark

& Copyright

Evaluation

We will assess your technology and workclosely with you to understand yourtechnology and determine how it fits in theexisting landscape.

Licensing &

Commercialization

We will help you engage industry and pursue options forsuccessful commercialization. We can help you draft and negotiateIP and business agreements.

TEC Edmonton/Mitacs

AOIP

programs

Throughout 2015, TEC Edmonton partneredwith the Alberta-Ontario Innovation Program (AOIP)

to promote funding for collaborations between Alberta and Ontario researchers and industry.

A joint partnership with TEC Edmonton to facilitate collaborativeresearch and development internships between University of

Alberta students and local industry partners.

08

Health Momentum

Working with the City of Edmonton, the University of Alberta, Alberta, Canada and many others, TEC Edmonton has created a regional health-products ecosystem in which new health product companies, born of innovation, are flourishing.

Since its formation as a city/university joint venture in 2006, TEC Edmonton has worked closely with medical researchers from the University of Alberta and in the community to commercialize laboratory discoveries.

In 2014 TEC Edmonton founded the TEC Health Accelerator with funding from the federal Canada Accelerator and Incubator Program, addit ional support from municipal

municipal and provincial governments, and extensive support from corporate partners.

The initial goal of the Health Accelerator was to establish 50 new health products companies in Edmonton within five years.

Within two years, that goal has already been reached, with a total of 90 companies helped to the spring of 2016. The Health Accelerator program will help establish Edmonton and Alberta as Canada's leading centre for health innovation and commercialization.

“The Alberta health innovation environment is strong and getting stronger," says TEC Edmonton CEO Chris Lumb. "While TEC Edmonton is one player, our unique connections between many different communities are leading to new partnerships, projects and better outcomes."

09

Proving success is as much about perspiration as inspiration. After eight years Exciton's proprietary exsalt® silver-based wound care products are finding a world market, thanks to a global distribution deal with Crawford Healthcare. Revenue in 2015 more than doubled from 2014, to $3 million. Production has jumped from 4,000 wound dressings in 2014 to more than 20,000 wound dressings per month in 2015.

Metabolomic Technologies Inc. (MTI) has signed a multi-million dollar licensing and distribution agreement with Pennsylvania-based Atlantic Diagnostic Laboratories (ADL) to sell its PolypDx™ urine diagnostic test to detect pre-cancerous polyps in the colon - before they become cancerous. PolypDx is the result of world-leading metabolomics research at the University of Alberta. TEC Edmonton has closely advised MTI through every step of its evolving business affairs.

With TEC Edmonton's assistance, renowned University of Alberta prostate cancer researcher Dr. John Lewis is incorporating Entos Pharmaceuticals, a company to commercialize promising cancer-fighting drugs now in preclinical trials in Alberta. Entos will combine those drugs with a unique drug delivery platform on which such drugs can more efficiently target cancer cells.

Nanospeed Diagnost ics reached a milestone in June of 2016, selling one million of its Test4D™ kits world-wide. Test 4D™ is a unique point-of-care test for Vitamin D deficiency/sufficiency. TEC Edmonton continues to assist Nanospeed in setting up international distribution systems.

In June 2016, Aquila Diagnostic Services Inc. received $1.75 million in financing from Chilean venture capital firm Benslie International Ltd. to develop Accutas™, a patented point-of-care molecular diagnostic testing system. Accutas™ is being field-tested for malaria detection in humans and for on-site diagnostics of animal diseases by ve te r inar ians . Aqu i la u t i l i zes TEC Edmonton's business and intellectual property services, and was a finalist in the 2012 TEC VenturePrize NanoVenturePrize category.

Originally invented by University of Alberta heart surgeon Darren Freed, Tevosol's EVOSS™ (Ex-Vivo Organ Support System) is a potentially revolutionary portable device to transport, treat and evaluate living human organs for transplant purposes, thus greatly improving the odds on a successful match. TEC Edmonton worked closely with Tevosol, providing a market opportunity assessment, business planning and initial technology management. Originally assigned to work with Tevosol, former TEC Executive-in-Residence Kevin Ens is now the company's CEO.

Here is a sampling of accomplishments from the accelerator's health company clients:

Life-savingdata applications

TEC Services:

10

DarkhorseAnalyticsUniversity of Alberta spinoff company

CLIENT STORIES

Sectors:

The team at Darkhorse Analytics is giving new life to the field of data and analytics. A University of Alberta spinoff company since 2008 and VenturePrize Finalist for Fast Growth (2010), Darkhorse uses a novel combination of analytics and data visualization to help users make better decisions.

"Analytics is about finding the right answer, and visualization is about engaging and convincing," explains Dan Haight, President of Darkhorse Analytics.

The company has just completed a record year, with the launch of its first software as a service (SaaS) product and the addition of clients outside of Alberta, most notably Proctor & Gamble and the Toronto Fire Service, spurring the formation of Darkhorse Emergency Services.

The emergency services software uses research derived from University of Alberta labs to help emergency service providers make data-driven decisions. The team developed a number of models to identify the best possible changes to fire station locations and staff schedules. This helps identify cost-free or cost-neutral changes that have a significant impact on response performance.

TEC Edmonton's Business Development team assisted Darkhorse Analytics in market assessments and market entry strategy to help develop a go-to-market strategy for the software. The company also received support from Executives-in-Residence for marketing strategy development. An information transfer agreement was led by TEC Edmonton's Technology Management team, as well as intellectual property and licensing negotiations.

Darkhorse Analytics remains self-sustaining on sales as well as support from TECTERRA, the federal Industrial Research Assistance Program (IRAP), and Scientific Research and Experimental Development (SR&ED) assistance.

In the future, Dan says he would like to see the company continue to grow overall, specifically with the SaaS business. He also sees Darkhorse Analytics entering the U.S. market in the future. Darkhorse has also started cultivating a local analytics community through a "Lunchalytics" program, in which it hosts speakers once a month to talk about data and analytics issues.

Technology andreal estate theperfect match

11

TruHomeFormerly HomeTribe

CLIENT STORIES

TEC Services:Sectors:

What if the same principles used by a matchmaking service could be applied to the real estate industry? This is a question that Elisse & Roberto Moreno explored prior to the launch of TruHome, an online tool that uses big data and analytics to match homes with potential buyers based on a customer's needs and lifestyle.

A successful entrepreneur with 14 years of experience in the real estate industry, Elisse founded the real estate focused sof tware company Redman Technologies in 2002. Following the success of the venture and with partner Roberto, TruHome was launched as a division of Redman Technologies in October 2015. The goal of TruHome as a customer-facing tool is to improve the process of buying and selling homes without compromising quality.

TruHome hit the ground running with help from TEC Edmonton's Business Development team and an Executive-in-Residence to obtain funding from the Business Innovation Access Program (BIAP) as well as assistance with market research, competitive analysis and business strategy.

Elisse initially received funding from the Industrial Research Assistance Program (IRAP) to build TruHome and do a beta launch. After this, Elisse, with her husband and business partner, realized they needed assistance with business and marketing direction as well as competitive analysis. Insights gained from TEC Edmonton's Business Development team assisted Elisse & Roberto in getting the necessary know-how to launch TruHome, and to explore new potential for Redman Technologies. This has laid the groundwork for a second round of Industrial Research Assistance (IRAP) funding from National Research Council Canada.

Thanks to the market research, TruHome is finishing up its rebranding stage. “Now we have a game plan for the next five years,” says Elisse. “Thanks to TEC, we are in the test phase for new products that will help us continue to increase revenue and grow.”

Alberta has proven to be an ideal breeding ground for both Redman Technologies and TruHome, and Elisse has observed the positive impacts of innovation in her home province. “Alberta is very open to new ideas and new change,” she says.

In spite of its short existence, TruHome is already on track to double its revenue in 2016. So what's next? It's already been a busy year for Elisse and her husband, with the addition of a new business and a new baby. However, she is always looking ahead to expand technology to improve efficiency in the home buying process without compromising quality. “By improving data, we improve our communication. Transparency and openness are key,” explains Elisse.

Affordable, sustainablebiofuel technology

12

CLIENT STORIES

Sectors:

TEC Services:

The team at Forge Hydrocarbons has had a record year in growth and funding. After existing as a company only since 2013, Forge Hydrocarbons is already courting oil and gas companies interested in buying its product, and looking into a commercial-scale expansion.

Dr. David Bressler, University of Alberta researcher and Lead Scientific Advisor of Forge Hydrocarbons, developed a biomass refining process that converts animal fats and cooking oils into gasoline and diesel, or "drop-in" fuels. Unlike other companies creating a similar product, the cost of Bressler's process is kept low due to his plant's ability to use dirtier, cheaper oils in the process, and a more efficient means of creating the fuel.

The end product is chemically identical to petroleum-based fuel. "We're getting the yields that we hope to get," says Tim Haig, President and CEO of Forge Hydrocarbons.

The Forge Hydrocarbons team has worked with TEC Edmonton since its early stages in 2005 on the commercialization process, licensing and negotiating with investors. “They've done a great job," says David Bressler. "There is a long, strong partnership between the University of Alberta and the company."

Currently, the company is working with the City of Edmonton and EPCOR to use biosolids as a water source for the process. This will allow it to make use of a waste stream, resulting in an even more cost-effective process.

Forge Hydrocarbons has achieved a number of wins in the past year, most notably a $4.2 million grant awarded by Sustainable Technology Canada in Spring 2016. After bringing a pilot plant online in 2014 at the Edmonton Waste Management Centre, the new funding will allow the team to move forward with a production plant. Negotiations are in the works for an additional facility - to be finalized in Fall 2016.

With increased production capabilities, the team hopes to sell the biofuel to oil and gas companies. "We've got a very handsome business model of drop-in fuel that the oil and gas [companies] want at a more sustainable price and lower carbon footprint than other sources," explains Tim. "Our return is high because capital is low."

In the future, the team is looking to move forward with a commercial-scale plant in the next 12-18 months. "We're at the end of the beginning; we're in really good shape now," says Tim. "It's not inconceivable to think that we could have five to ten plants in the next ten years."

ForgeHydrocarbons

Activity monitoringfor wheelchairusers

13

TMRedliner

CLIENT STORIES

Sectors: TEC Services:

Researchers from the University of Alberta's Faculty of Rehabilitation Medicine and the Department of Computing Science, along with TEC Edmonton's Technology Management team have joined forces to improve technology for people with disabilities.

TMRedliner takes the concepts used in wearable technologies and applies them to wheelchair users: a wheelchair "wears" the device to monitor a user's propulsion parameters, with the goal of preventing persistent overuse that can lead to shoulder injuries.

TMDr. Martin Ferguson-Pell, one of the Redliner inventors and University of Alberta researcher in the Faculty of Rehabilitation Medicine, found in a UK study that 66 per cent of wheelchair users with a spinal cord injury experience shoulder pain and injury caused by wear and tear during wheelchair use. "Just as in your car you don't over-rev the engine, so too should wheelchair users try to avoid 'redlining' their shoulder joints," Dr. Ferguson-Pell explains.

In order to license the technology and make the device available to users, the research team worked closely with TEC Edmonton's Technology Management team. " [The Technology Management Team] was instrumental in making and facilitating connections, and became the glue holding the venture together," Dr. Ferguson-Pell stated. As a result of combined efforts, a licensing agreement was recently signed with the Alberta-based company Redliner Inc.

The device has the same accessible characteristics of a typical wearable: it is anticipated to cost close to $100, has a battery life of approximately four days, communicates with a smartphone and has the capability to send data to a web dashboard.

The web dashboard will be able to contribute data TMfrom Redliner users to an anonymized repository that

will help researchers understand the root causes of shoulder pain and injury. In the future, the team hopes to use this data to create open-access information in Google Maps, allowing wheelchair users to plan routes around their physical capabilities. "Our number one goal is to make advances in technology available for the benefit of people with disabilities," says Dr. Ferguson-Pell.

On working with TEC Edmonton and the University of Alberta research team, David Evans, Redliner Inc. President states, "It's a nice partnership, when you can combine what the market needs and the academics who can make it happen - it's a marriage made in heaven."

Best of all, the entire process from start to finish was accomplished locally in Alberta. "[Technology Management] has been a cohesive force for the whole process. It could not have happened without [it]," says David Evans.

The possibilitiesof metabolomics

Sectors: TEC Services:

14

The Metabolomics Innovation Centre

CLIENT STORIES

The Metabolomics Innovation Centre (TMIC) is putting the University of Alberta on the map by leading the world in metabolomics research and technology development. Metabolomics has the potential to change how diseases are diagnosed through technology that previously only existed in the realm of science fiction.

Led by Dr. David Wishart, a recognized global leader in his field, the centre is a nationally-funded core facility at the University of Alberta that develops tools, technologies and methods of studying the metabolome. One of the priorities of TMIC is improved diagnostic capabilities for metabolic diseases such as Alzheimer's Disease, arthritis, heart disease and certain cancers. "It's something that we're very proud of, and that all Canadians can be proud of," says Dr. Wishart.

TMIC is one of only ten world-class initiatives, or "nodes" supported by Genome Canada's Genomics Innovation Network (GIN) and is the only GIN node in Alberta. TEC Edmonton contributed to TMIC's GIN proposal to suppor t i t s development and commercialization activities.

The centre also provides services to the research and industrial sectors through metabolomic profiling and identification, as well as the sale of analysis kits. The applications of TMIC's tools are utilized in a vast number of markets, from health to agriculture to energy.

TEC Edmonton's Business Development team worked with TMIC to operationalize the business, and help with commercialization strategy of the newly-established Metabolomics Technology Demonstration Cent re (MTDC), an in i t ia t i ve of TMIC to commercialize its discoveries and tools. Dr. Wishart explains that "with new funding and new technology we've received, we're trying to make metabolomics more accessible to the scientific community."

TMIC also received support from TEC Edmonton's Technology Management team during the patenting process and l icensing negot iat ions for i ts metabolomics devices. In the future, TMIC hopes to democratize the application of metabolomics by developing diagnostic tools anyone can use. As David explains, "We're trying to push the envelope to create portable metabolomics devices."

C Quest Partners

CANTERRA SEEDS

15

LICENSING STORIES

The new line caught the attention of CANTERRA SEEDS, a Western Canadian seed company focused on sourcing genetically superior cereals, pulses and oilseeds. TEC Edmonton's Technology Management team negotiated the license between CANTERRA SEEDS and the University of Alberta, making it the first wheat license for the University of Alberta in more than 15 years.

This worldwide license is the culmination of over a decade of work, allowing CANTERRA SEEDS to help Canadian wheat growers grow healthier, higher yielding crops.

David Mitlin was a professor and leading researcher in the Department of Chemical & Materials Engineering at the University of Alberta for 10 years. In 2014 he left Alberta to be the GE Chair in Energy Systems at Clarkson University, Potsdam, NY. Here in Edmonton, his team developed carbon nanosheets (graphene-like material) made from waste material like hemp, peanut and egg white membranes.

Graphene is a super-material: a two-dimensional, atomic-scale, honey-comb lattice that excites both the scientific and business worlds due to its extraordinary properties and potential applications in various industries including energy storage and photovoltaics.However, current methods for producing graphene are very expensive. Made from waste materials, Dr. Mitlin's graphene is a promising, inexpensive way to manufacture large quantities of carbon nanosheets with the added bonus of being environmentally sound.

David Mitlin worked closely with TEC's Technology Management team to pursue patent protection of the process. Dr. Mitlin and TEC Edmonton decided to seek potential licensees, rather than form a spin-off company.

In collaboration with Dr. Mitlin, US-based CQuest Partners secured the license to Mitlin's graphene portfolio from the University of Alberta in 2015, potentially becoming one of the most financially valuable licensing deals TEC Edmonton has ever done. Shortly afterward, Dr. Mitlin joined CQuest as its CTO.

According to CQuest Partners' Founder, Gary Charboneau, the commercial applications for CQuest's organic carbon nanosheets (CNS) are enormous. Energy storage is increasingly crucial to industries such as electronics, utilities, transit, military, automotive, aerospace, oil & gas, medicine, real estate and more. With applications for batteries, supercapacitors, fuel cells and hybrid devices of all sizes, CNS are perfectly suited to satisfy the demands of an industry that is aggressively pursuing designs and materials that improve performance, safety, and cost-effectiveness to meet the needs of a rapidly expanding market.

Dean Spaner is a researcher in the Department of Agricultural, Food and Nutritional Science at the University of Alberta. He has been actively involved with the University of Alberta wheat breeding program, designed to develop and select germplasm that will result in higher yielding varieties that mature earlier and have increased straw strength with no loss in quality.

Spaner's team developed a new wheat variety, a breakthrough for the University of Alberta wheat breeding - the first to be developed in Alberta and approved for release since 1997. The new variety has higher resistance to disease and matures faster, making it well suited for the prairie provinces, especially for northern Alberta where the growing season is shorter.

16

Ceapro

WHERE ARE THEY NOW?

proprietary technology to extract natural ingredients from oats and other plants for use in cosmetics, nutraceuticals and other therapeutics. Their process incorporates Pressurized Gas Expanded (PGX) Technology developed at the University of Alberta. 2016 was a successful year for Ceapro - signing an agreement for up to $900,000 in commercial financing, securing a renewed distribution agreement and posting its highest quarterly revenues in the company's history.

Sectors:

Incorporated in 1997, Ceapro is a biotechnology company using its

Sectors:

Yardstick

2006 TEC VenturePrize and has since grown to become a $22 million dollar company with 80 employees. Still headquartered in Edmonton, Yardstick now has additional offices in Calgary and Toronto and is the largest Canadian institution to deliver world-class expertise in computerized exam administration, psychometrics and eLearning. Yardstick provides online testing and training to millions of users across dozens of industries.

Having started as a hobby with only two employees, Yardstick won the

Sectors:

Sensassure

VenturePrize Fast Growth winner. After spending 12 months living in three nursing homes across North America to immerse themselves in the market needs, Sensassure was selected by Highway1 (a leading hardware accelerator out of San Francisco) for a four-month incubation program. Since VenturePrize, Sensassure signed their first major customer agreement with Revera, a leading owner, operator and investor in the senior living sector. Their technology addresses the ever-present needs of senior care and provides an innovative new technology to improve quality of care for incontinence.

Sectors:Sectors:

Sensassure began as a two-person company and was the 2015 TEC

Micralyne

owned by the University of Alberta. After spinning out from the University of Alberta, TEC Edmonton helped the new company grow to become one of the world's best known manufacturers of microfabricated and micro-electromechanical systems (MEMS) products for communications, energy, life sciences and transportation markets. Micralyne's work significantly contributed to the University of Alberta's reputation as a nanotech leader, and helped create the region's nanotech community, including the establishment of such organizations as the National Institute for Nanotechnology (NINT) and the Alberta Centre for Advanced MNT Products (ACAMP).

Sectors:Sectors:

Micralyne began as a not-for-profit semi-conductor research facility

Signature Events17

18

a celebrationof evolving ideas

2016

2016 Winners

19

WinnerTELUS ICT Category

Based in Edmonton, C o v e t ’ s s m a r t T V s o l u t i o n s a l l ow t h e c o n s u m e r t o instantaneously buy a fashion product displayed on television, directly off the TV screen. Covet also offers interactive means for shoppers to purchase fashion accessories and c l o t h i n g w o r n b y celebrities in TV shows and films.

WinnerStudent Category

Ceres Solutions recycles the spent grain used by Alberta brewers. The grain is pasteurized, then i n o c u l a t e d w i t h mushroom mycelium to break down leftover fibre, thus producing enough nutritional biomass to produce prote in-r ich mushroom crops. This biological enhancement is producing value from what was previously a waste by-product from beer brewing.

WinnerFast Growth Category

Dakota Supplies Inc. l o o k s t o b e c o m e a l ead ing p rov ide r o f disposable and sanitizing cleaning products for the commercial transporta-tion industry. Its patented c l e a n i n g p r o d u c t MOPPITT™ is an all-in-o n e c l e a n i n g u n i t specifically designed to meet the cleaning and sanitizing challenges of commercial transporta-tion, including airlines and buses.

WinnerDynaLIFE D Health Categoryx

MagnetTx is commercializing ground-breaking technology in cancer radiotherapy (RT). Its new Linac-MR device, the Aurora-RT, tracks the movement of tumours and organs while radiotherapy is taking place. The combined knowledge enables radiation oncologists to zero in more precisely on the tumour itself, even as it shifts around, reducing unneeded radiation and thus improving cancer treatment outcomes.

TEC VenturePrize2016 marked the 14th year of TEC VenturePrize: a program that provides business training, mentorship, resources and funding opportunities to Alberta-based early

stage technology startups. VenturePrize culminates in an annual business plan competition open to new and future

For more information aboutTEC VenturePrize, visit :www.ventureprize.com

entrepreneurs from across Alberta.

BOARDCHAIR

MESSAGE FROM THE

BOARDVICE CHAIR

Lorne Babiuk TEC Edmonton Board Chair

Vice President Research, University of Alberta

Brad Ferguson TEC Edmonton Board Vice Chair

President and CEO, Edmonton Economic

Development Corporation

20

Edmonton's entrepreneurial community is evolving rapidly and it's been incredible to see the new technologies and innovative solutions being produced at such a high calibre. TEC Edmonton has been a vital part of this entrepreneurial ecosystem, and thanks to the dedicated and skilled team of industry experts, and with the support of community and business partners, TEC Edmonton has been able to catalyze entrepreneurs to push to new heights and has positioned itself as a leading business incubator and accelerator in Canada.

As part of the EEDC family, we continue to support TEC Edmonton. The growth of Alberta-based companies is critical to strengthening and diversifying our regional economy. With new incubator space underway and the TEC Health Accelerator generating results, I'm confident TEC will have the ability to increase its capacity for commercializing innovations from the University of Alberta.

I congratulate TEC Edmonton on its success this year and I look forward to seeing what comes next.

University of Alberta research and knowledge has helped enhance Alberta society and its economy since the University's inception, including helping blaze the trail of Alberta's biotech industry in the 1960s with the launch of some of the province's first biotech companies.

In 2006, TEC Edmonton was created as a not-for-profit joint venture between University of Alberta and the City of Edmonton through its Edmonton Economic Development Corporation. At that time, no other North American business accelerator was merging university intellectual property with civic and university-based services for entrepreneurs.

Since its creation, TEC Edmonton has helped commercialize many University of Alberta-based technologies. But TEC Edmonton doesn't just facilitate commercialization, it's also instrumental in helping those new companies succeed and grow. Evidence of this is the University's 88 spin-offs that are still operational.

This past year, TEC Edmonton helped create 4 new University of Alberta spin-offs, licensed and optioned 36 technologies, and added 107 inventions and 43 patent applications to the University's technology portfolio.

The University recognizes the resulting contributions and impacts on society and Alberta's economy, and I look forward to continued partnership and success.

MESSAGE FROM THE

Assets

Current Assets

Other Assets

Liabilities and Net Assets

Current Liabilities

Net Assets

Statement of Operationsfor the year ended March 31, 2016

Revenues

Expenses

FINANCIAL SUMMARY

% of

total

revenue

Revenue from

Joint Venture

Partners

Grants Sponsorship

& Program Fees

License Fees

& Past Patent

Recoveries

Other

Revenue By Source 2016 2015 Cumulative

90%

100%

80%

70%

60%

50%

40%

30%

20%

10%

0%

3,3

18

,49

2

30

9,0

66

31

0,3

41

3,1

26

,57

9

2,1

78

,31

5

2,1

49

,15

8

2,3

76

,08

3

21

2015$

2,931,342

179,077

3,110,419

2015$

1,603,075

1,507,344

3,110,419

2015$

7,793,565

7,718,624

74,941

2016$

3,761,570

173,224

3,934,794

2016$

2,387,539

1,547,255

3,934,794

2016$

8,769,487

8,729,576

39,9112

4,7

12

30

,44

7

Statement of Financial Position as of March 31, 2016

2,7

39

,85

9

Our Leadership Team

ChairLorne BabiukVice President Research, University of Alberta

Vice ChairBrad FergusonPresident & CEO, EdmontonEconomic DevelopmentCorporation (EEDC)

Board MemberRobert Teskey Q.C., former ManagingPartner, Field LLP

Board MemberWayne Karpoff President, WillowglenSystems Inc.

Board MemberDave HancockLegal Counsel, Q.C.,Dentons (Edmonton)

Board MemberMichelle BorduzakPresident, FlatlanderEnvironmental Services Ltd.

Board MemberKristina WilliamsPresident and CEO, Alberta EnterpriseCorporation

Board of Directors

22

Board MemberCorey Smith

Board MemberMona Hale

Board MemberAlan Fair

Board MemberOleh Hnatiuk

Advisor to the BoardAllan Scott

Outgoing Board Members TEC Edmonton thanks all of our outgoing board members for their outstanding contributions. It is thanks to their generous support, leadership and expertise that TEC Edmonton is able to continue delivering quality services to its clients. We wish each of them continued success in their future endeavours.

StephanieGillis-PaulgaardDirector, Communications& Marketing

Chris DiaperDirector,Strategic Partnerships

Bobbi ElliottDirector, Finance

Laine WoollardSenior Legal Counsel, Technology Commercialization

Chris LumbCEO

Jayant KumarVice President,TechnologyManagement

Randy YatscoffExecutive Vice President,Business Development

Karen WichukVice President, Public Sector & GovernmentRelations

TEC Senior Management

Lan TanDirector,EntrepreneurDevelopment

23

VolunteersMBA - University of Alberta

Duncan & Craig

CastlePoint Consulting Inc.

BMO Bank of Montreal

National Research Council -Industrial Research Assistance Program

Nation9

Bennett Jones LLP

Royal Bank of Canada

AVAC

TELUS Innovation Centre

Microquest Inc.


Fort McKay Industrial

Incite Marketing

National Research Council-Industrial Research Assistance Program

Entrepreneur Organization

MBA - University of Alberta


Signa Venture Development

Mackintosh Consulting

Paulson Cormier & Associates

Paulson Cormier & Associates

Fernanda Badano

Jason Banak

Alex Beharry

Warren Bergen

Alan Bezaire

Brandon Blanck

Kimberly Cameron

Robb Campre

Marc Carnes

Rajeev Chadha

Scott Candler

Lele Chen

Denny Chew

Colin Christensen

Bill Cogan

Pierre Cormier

Keleigh Cormier

Kanwar Abhishek

Matt Anderson

Chris Astle

Brian Bachmann

George Bacioiu

National Research Council -Industrial Research Assistance Program

DynaLIFE Dx

PwC

TEC Edmonton

Innovate Calgary

Duncan & Craig

Craig d’Entremont

Christine deMontigny

Kristine Dewar

Jason Ding

Madeline Dowhaniuk

Brittany Earl

Usukuma Ekuere Alpha Global Experts

Craig EliasInnerSell

Kevin Ens

Wes Fairbanks

Tim Fell

Rogelio Ferreira

Shauna Feth

Robert Fong

Lorena Forster

Daniel Freiji

Andy Gill

Paul Girgulis

Brian Goheen

Norm Greenwood

John Greer

Sunny Grewal

Paul Grossman

Amine Hajji

Jane Halford

Cory Harsch

Michele Hecken

Ted Heidrick

Ryan Heit

Navid Hemmati

Shaheel Hooda

Doran Ingalls

Peter Inglis

Rainer Iraschko

Cory Janssen

Sam Jenkins

Tevosol

Dentons

TELUS

TELUS

University of Alberta

TSX Venture Exchange

Kinetica

TELUS

Odyssey Chartered Accountant

Field Law

Chiro Foods Ltd

Greenwood 2 Management


Royal Bank of Canada

PricewaterhouseCoopers LLP

Ernst & Young

Halford Consulting


Alpha Global Experts

University of Alberta

TEC Edmonton

Ernst & Young

TEC Edmonton

Parlee McLaws

Bennett Jones LLP

TELUS


Wellnext Inc.

Bruce Johnson

Reg Joseph Alberta InnovatesHealth Solutions

Edmund Jung

Peter Kacala

James Keirstead

Ryan Keith

Cameron Kerr

Stephen Kligman

Van Konrad

Kyle Araki

Ray Lai

Richard Leblanc

Mao-Cheng Lee

Chris Lerohl

Albert Leung

James Levy

Eric Loo

Andrew Maghee

Roland Maier

Adam Mallon

Raj Manek

Dana Marsh

Rick Martens

Dale McCormick

Craig McDougall

Steve McIlvenna

Monique McKay

Warren Mediuk

Jordan Melzer

Glynis Middleton

Mison Consulting & Associates

DynaLIFE Dx Lab

Western ManagementConsultants


Canadian Western Bank

Parlee McLaws LLP

MBA Associates

TSX Venture Exchange

DynaLIFE Dx

Innovate Calgary

Evolve Business Group Inc.

TEC Edmonton


Business Solutions Marketing,Calgary

MITACS

Bank of Montreal

DynaLIFE Dx

Ernst & Young

Odyssey Chartered Accountant& Advisor


Grant Thornton

TELUS

Dentons

Innovate Calgary

NAIT

Bank of Montreal

TELUS

G. Whiz Business Services Inc.

Kristina Milke

Greg Miskie VA Angels

Duncan & Craig

Nathan Mison

Paula Mitchell

David Muddle

Robin Mwesigye

Carolyn Nalder

Mike Nickel

Kevin O’Sullivan

Grecia Pacheco

Norma Page

Marty Park

Mison Consulting & Associates

DynaLIFE Dx Lab

Western ManagementConsultants

MBA University of Alberta

TEC Edmonton

City of Edmonton

TELUS


DynaLIFE Dx

Evolve Business Group Inc.

Darrell Petras

Jason Pincock

John Pitchko

Hussein Poonjani

Joanna Preston

Jose Raez

Shelley Rawlake

Dean Reid

Amir Reshef

Ed Rudzitis

Daniel Salamon

Mark Salopek

Svetlana Sapelnikova

David Saxby

Tracey Scarlett

Launa Schey

TEC Edmonton

DynaLIFE Dx

Innovate Calgary

Grant Thornton

TEC Edmonton

National Research Council

Alberta Health Services

TELUS

Dentons

Ernst & Young

Alberta Cancer Foundation

UBC

KMT Hepatech Inc.

Spark Communications Inc.

Alberta Women Entrepreneurs

Parlee McLaws

Jigna Shah

Nav Sharma Ernst & Young

Alberta EconomicDevelopment & Trade

Michael Sharp

Diana ShawParlee McLaws

Independent

Craig Sherburne

Barinder Shergill

Bob Sinclair

Jim Slevinsky

Greg Snaith

Sam Soliman

Sandra Spencer

Lisa Spinks

Massimo Spoletini

Cidnee Stephen

Kent Stewart

Tamara Stock

Matt Storey

Ross Swanson

Lan Tan

Brittany Tetz

Kurian Tharakan

Randy Thompson

Ryan Walker

Michael Walters

Peter Wong

Peter Yeung

Henry Yip

David Yiptong

Ted Yoo

Will Zaichkowski

Frank Zhao

Jeffrey Zimmer

Craig K SherburneProfessional Corp.


TELUS

TELUS

National Research Council-Industrial Research Assistance Program

310-DUMP

Duncan McNeill Centre, NAIT

Alberta Innovates-Energy& Environment


Strategies for Success

Western Management

DynaLIFE Dx

Dentons

Duncan & Craig

TEC Edmonton

Field Law

TEC Edmonton

VA Angels

Technology Strategy, Calgary

City of Edmonton

Bennett Jones LLP


Nirix Technology

Innovate Calgary

Bennett Jones LLP

Tantus Solutions Group


MBA - University of AlbertaAlberta Innovates Centrefor Machine Learning

24

Partners

Sponsors

Gold sponsors

Silver sponsors

Platinum sponsors

Contributor

25

This repor .t has been printed responsibly

4000 TEC Centre,10230 Jasper Avenue,Edmonton, AlbertaCanada T5J 4P6

TEC EDMONTON

Tel: (780) 492 8977Tel: (780) 492 7876

www.tecedmonton.com

Photography Credits: Dale MacMillan Richard Siemens

Annual Report - TEC Edmonton · and to other angel investors and venture capital funds. TEC Venture...

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