Waterloo student startups impact the economy

The Waterloo students and young alumni who are currently running startups in the VeloCity Residence and VeloCity Garage have raised nearly $2.2 million in venture capital. Both entrepreneurship incubators, the Residence and Garage bring bright students with ideas together to create startups in Waterloo Region, which then create jobs for students and recent graduates.

Living together 24/7, students in the Velocity Residence innovate through collaboration with each other, and the support from mentors to move their ideas into startups. Since its inception in 2008, more than 700 students balanced school and a startup in residence, and each term the demand for space grows.

The newer VeloCity Garage housed in 6,500 square feet of downtown Kitchener’s Communitech Hub, currently holds 25 student and alumni team startups. Ninety-three people are kickstarting their companies in this free space with tech-industry mentors.

In the last four years, VeloCity has helped create 34 companies. Nine of those outgrew the startup space and became independent companies, collectively raising more than $16.2 million in venture capital, including Maluuba, Pair, Vidyard, BufferBox, and Kik. Allerta, the maker of the e-paper watch Pebble, raised more than $10 million in one month alone.

Attracting venture capital to the region not only positively impacts our economy, it also provides a steady stream of employment for Waterloo students and recent graduates. "One of my favourite aspects of VeloCity is that you have students creating jobs for students,” says Mike Kirkup, Director, VeloCity and Student Innovation. The most entrepreneurial students establish the company and then hire the best talent at Waterloo to increase their chances for success. It creates an incredible culture both in the company and our space in the VeloCity Garage."