Smaller cities, bigger wins: Tech founders find success in Markham and beyond

Yorkregion.com
July 24, 2023

For startup entrepreneurs like Erich Ko and Boyd Reid, it proved a smart move to relocate from jam-packed Toronto incubators to smaller communities such as Markham.

“You feel like you get lost in the crowd sometimes in all the noise with all the startups in Toronto,” said Ko.

After living in Toronto and graduating from Toronto Metropolitan University, Ko moved to Markham and contacted YSpace, a York University-affiliated innovation hub that serves York Region.

With the help from the tech accelerator, Ko and Reid co-founded Hop In, an award-winning web service that helps companies hire and retain employees by paying for their commutes. They are currently serving over 20 clients, including Maple Lodge Farms and Canadian Tire.

Ko and Reid chose Markham because it has the highest concentration of tech companies in Canada, making it easier to network. But Markham and YSpace still exceed their expectations.

“Markham has so much more to offer,” said Ko. “They can really help startups grow with a very particular focus. You did feel like there was almost a personalization towards you.”

“Before we even had a client, before we had validation; they were willing to put their name behind what we were trying to do,” said Reid. “That makes all the difference for a young company, to get that confidence and that momentum.”

YSpace kicked off in Markham Centre in 2018 and has supported 784 companies to date. Markham Centre, the city’s vibrant new downtown, seems packed with the world’s most recognizable tech brands, such as IBM.

The City of Markham has recently launched a new website, MarkhamBusiness.ca, for those looking for information on starting or growing their business in Markham.

“There are many incredible reasons why the City of Markham is and remains a top choice for entrepreneurs wanting to start, grow or locate their businesses,” said Mayor Frank Scarpitti. "Our new Economic Development website will provide a central location to showcase the benefits of doing business in Markham, including highlighting different services provided by the city, as well as unique programs offered by partners in our ecosystem.”

“When a business needs help or is looking to grow in your community, they need to access information quickly and easily,” said Chris Rickett, Markham’s director of economic growth, culture and entrepreneurship. “With this in mind, we built the website to make it easy for local entrepreneurs to connect with us and the information they need.”

The new website also shares the history of Markham’s evolution from a sleepy suburb into one of North America's largest technology clusters. From tech giant IBM locating their Canadian headquarters in Markham, to becoming home to Canada’s largest concentration of semiconductor companies, the story of Markham’s innovation community is one of rapid development and groundbreaking impact.

In fact, the notion that thriving innovation ecosystems are exclusive to major cities is a thing of the past. In 2020, the CBRE reported that tech talent in smaller markets was outpacing that of bigger cities.

Since the pandemic, there has been a significant boost in tech founders using the support from innovation hubs in Windsor, Oshawa, Guelph and London to launch their businesses in smaller markets.

In 2020, DMZ, Toronto Metropolitan University’s tech hub, opened a satellite office in Innisfil, Ont. DMZ Innisfil has already supported 35 companies, resulting in 128 new jobs; raised more than $10 million in funding; and generated over $1 million in revenue.

Spark Centre opened in Oshawa in 2010 to cater to tech startups in Durham Region and Northumberland County. It has since expanded with another office in Whitby. The innovation hub has helped more than 1,141 clients since its inception.

All three of these hubs have seen a significant increase of new tech companies migrating to smaller markets and tapping into their resources since the pandemic.

Since relocating to Markham, Ko and Reid intend to stay put. They say Markham has the best food in the GTA, and they especially enjoy its festivals.