JF Gauthier (Founder and CEO, Startup Genome)

1. Building a Disruptive
Startup Ecosystem
JF Gauthier
Founder and CEO, Startup Genome
startupgenome.com

2. 2019: An Era of Disruptive Business Models
Rank Company Mkt Cap (USD)1
1 Microsoft 1,050 B
2 Amazon 943 B
3 Apple 920 B
4 Alphabet 778 B
5 Facebook 546 B
6 Berkshire Hathaway 507 B
7 Alibaba 435 B
8 Tencent 431 B
9 Visa 379 B
10 Johnson-Johnson 376 B
We are at the beginning of one of the biggest economic
discontinuities in history
1. Market Capitalization as of June 21 2019 2. Top 10 based on revenue
• 5 of world’s top-10 companies from
the Tech startup ecosystems
• At their peak, these industries had in
the top-10
Telecom 3
Computers 3
Automotive 3
Semiconductors 2

3. None of these 5 companies were based on tangible innovation
All startups produced by the Global Startup Revolution
All Business Model Innovations
Amazon
Alphabet
Facebook
Alibaba
Tencent

4. $ 200B
$ 150B
$ 100B
$ 50B
Concentration of
Exit Value in Tech
TOP 100 CITIES
EXIT
VALUE
(USD)
San Francisco
New York
London & Beijing
Boston
Tel Aviv
Montreal
Tech ecosystems are the #1 engine of job creation and
in 20 years will be the #1 component of global GDP
Montreal is ranked #32-34 globally
~0.17% of global Exit Value
How many semiconductor jobs did
the 30th largest semiconductor city
capture?

5. Investing in R&D and patent
production is good
● Canada’s Supercluster Strategy
is a great initiative
● Leading participants:
universities, corporations
● Tangible innovation
○ Job Creation: 50,000 over 10 years
● Investment of CAD 950M in
superclusters
But not the solution to building
a Startup Ecosystem
● Leading participants:
Entrepreneurs
● Business Model Innovation
○ Facebook 30,000 jobs
○ Amazon 650,000 jobs

6. We are building the engine of economic
growth and job creation for our community,
our children and grand children
How much did we invest in James Bay?
~$20B
How similar is the value proposition?

7. How much are we investing in the
Montreal startup ecosystem?
All USD
● Seoul committed $1.6B into its startup ecosystem by 2022
● Melbourne: $10M / year
● Barcelona: $75M / year + Barcelona Activa ~$5M / year
● Ontario: $117M / year

8. There’s a lot
of work to
be done
• Correctly fund & support
ecosystem Keystone Team
• Fix angel funding: create 2
competing angel groups
• Grow Global Connectedness
and Global Market Reach

9. © 2019
Montreal has an acute Seed Funding Gap
0%
2%
4%
6%
8%
10%
12%
14%
2014 2015 2016 2017 2018
Toronto-Waterloo Vancouver Houston Montreal Barcelona Tel Aviv
9
Proportion of Startups Receiving Seed Funding
2017 & 2018 is partial due to lag
in capture by databases

10. © 2019
Local Founders are not connected enough to Founders in Top
Ecosystems
10
Founder Global Connectedness
0
2
4
6
8
10
12
14
Toronto-…
Vancouver
Ottawa
M
ontreal
M
elbourne
Barcelona
TelAviv
#ofConnectionstoTopEcosystems
Globalization Average

11. © 2018 11
Global Market Reach
% of Foreign Customer Sales
And do not Go-Global early enough, which is exacerbated by a
lack of Experienced Growth Hackers
Canadian
Ecosystem Average
0%
20%
40%
60%
80%
Toronto-W
aterloo
Vancouver
QuebecCity
M
ontreal
Edm
onton
Calgary
Ottaw
a
Globalization
Average
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Toronto-W
aterloo
Vancouver
Ottawa
M
ontreal
M
elbourne
Barcelona
TelAviv
Access to Growth Talent
Experienced Growth Employees