At the same time, clients were hearing about Industry Corporation through word of mouth, and hiring the firm to develop their own games and platforms, Matlock says.
Finding global potential in digital signage
That’s how the company first heard about a project to build software to run touch-screen game kiosks in restaurants. Industry Corporation went on to develop technology that powers screens in more than 1,000 quick-serve restaurant outlets throughout North America.
It was through that deal that Matlock and Nosal, the firm’s Chief Technical Officer, discovered the worldwide potential in developing software for public display screens. Consider all the places and diverse sectors that use screens: restaurants, hospitals, airports, shopping malls, transit stations, and much more.
“Every year, worldwide, there are over four million pieces of public display hardware sold into the global marketplace—devices like kiosks, video walls, TVs, and digital signage panels,” Matlock says. “We realized there was a huge lack of consolidation in both the hardware and software marketplace. It’s incredibly fragmented for a multi-billion dollar industry.”
Matlock and Nosal had the skill and savvy to identify a market gap and fill it with sophisticated software. What they wanted was the funding to grow their business and expand internationally, specifically into Asia-Pacific—the centre of the public screen industry.
Typically, a tech firm in this situation would look for an injection of equity financing from one or more investors. But Industry Corporation took another route during Spark’s development and market research, financing their international expansion with a series of development and market expansion loans from the Business Development Bank of Canada (BDC). Matlock expanded, “this was preferential to us, to maintain our cap table and take advantage of our access to credit. Ultimately this led to a successful platform launch in Hong Kong, and was followed by an Asia-led equity round that allowed us to achieve fantastic terms, given the early market penetration.”
We’re realizing a massive opportunity. It’s very exciting.
Securing financial footing for future growth
Andrew Verlaan, BDC Account Manager, says it’s common for tech companies to need financial support to get their products to global markets swiftly and efficiently.
“Typically when the product is ready to be sold, they want to attack the market quickly and investors are demanding they grow revenues quickly,” Verlaan says. “And when you’re selling into Asia, there are a lot of costs around attending trade shows, doing marketing, and spending time over there to understand clients. It’s not cheap.”
Verlaan said a business loan is often an ideal option for these kinds of needs—one that doesn’t require a dilution of entrepreneurs’ ownership stakes.
And while financing is a major area of concern for tech entrepreneurs, he also noted BDC can assist firms with advice on key business challenges, such as international expansion, sales and marketing, financial management, strategic planning, and HR management.
Industry Corporation now has a team of ten in Kitchener and has been hiring new sales staff members, who are focused on Asia.
Matlock and Nosal have come a long way since launching Industry Corporation as friends fresh out of university, and they see much more growth ahead.
“We’re realizing a massive opportunity with Spark,” Matlock says. “It’s very exciting.”