Invest Toronto -Annual Financial Statements 2013
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THE ROAD TO SUCCESS Invest Toronto 2013 Annual Report 3 Message from the President “Frankly, we were a bit overwhelmed, being Table 5 Invest Toronto’s Business a U.S. firm trying to open a Toronto office. of Investment Lifecycle 27 The End of a Long Road Invest Toronto was incredible in bringing Contents 36 Collaborating for Success 38 Invest Toronto’s Partners all the right people to us. 42 Invest Toronto Board of Directors and Staff From legal and financial services to real estate and employee recruitment support, Invest Toronto 44 Invest Toronto Financial coordinated everything. It was like a business start-up concierge service. I tell anyone that will Statements listen how lucky Toronto is to have a service and great people like this. We’re proud to say our office is open, we’re fully incorporated, and we’re well on our way to growing in Toronto.” DAN GLIATTA, MANAGING DIRECTOR, THE CARGO AGENCY INC. 1 2 Invest Toronto 2013 Annual Report Message from the President MESSAGE FROM THE PRESIDENT Invest Toronto works hard to provide But what makes Toronto such a Throughout the process, we work Why should you expand your it easier for foreign innovators to a comprehensive concierge service to magnet for corporate powerhouses closely with our shareholder, the City business to Toronto? The answer set up their companies in Canada. businesses looking to expand into and entrepreneurial ventures? Why of Toronto, in addition to our partners is simple. Toronto is the number In addition, the federal government Toronto, Canada’s economic heartland. do businesses choose to expand in the provincial and federal one city in the world in which people of Canada, along with the Ontario 2013 was an exciting year for into the North American market governments, and other agencies would like to live and work (The government, have announced the Invest Toronto, as we welcomed new through Toronto? And what makes such as the Greater Toronto Marketing Reputation Institute, 2013). launch of the Northleaf Venture investments into the City of Toronto them choose Toronto over New York, Alliance, and the Toronto Financial It has had the soundest banking Catalyst Fund, a new “fund of funds” and celebrated the city’s many San Francisco, Boston, or Chicago? Services Alliance, to provide system in the world for six consecutive with a target of $300 million that achievements. In 2013, Toronto was These are the questions global customized client services in order years (World Economic Forum, will invest in early and mid-stage recognized by The Financial Times, business leaders grapple with as to make the experience of establishing 2008 - 2013) and the second most technology companies. We know receiving eight fDi American Cities they make a decision to invest in a business in Toronto an easy and business friendly environment in Toronto is the best place for business of the Future 2013/14 awards at a new market. They ask themselves, positive one. the Americas (fDi American Cities today, and in the future. We know an awards ceremony in Philadelphia where is the best place to expand my of the Future, 2013/14). how to help businesses succeed in in October. Invest Toronto was business? How do I choose a location? In 2013, Invest Toronto worked to Toronto. We have our finger on the also acknowledged as the What is the business culture like? perfect our Business Investment Canada’s workforce is the most pulse of this thriving, vibrant city, Toronto is one of the foremost Canadian Economic Development What are the costs of doing business? Lifecycle and continued to build highly educated in the world and we can connect businesses to the cities in the world in which Organization that most effectively And how do I find the right talent on our relationships with our (Organization for Economic opportunity it holds. As the largest people seek to work and live. markets our metropolitan region and resources to make my business clients and partners. We recognize Co-operation and Development, city in Canada and the fourth largest The international business by the Development Counsellors a success? the importance of the Business 2013), and Toronto’s skilled talent in North America, Toronto truly is a community sees potential International (DCI) in December. Investment Lifecycle and the value is the most diverse in the country city of the future, and that future is in in Toronto, and is seizing DCI agrees that one of the best This is where the Invest Toronto Invest Toronto offers to our clients (Statistics Canada, 2013). Toronto our hands. Invest to succeed. opportunities to be part of this methods to engage international team comes in. The answers to all of at each stage of the process. As we is a flourishing hub for start-ups, Invest Toronto. investors is through business-to- these questions are found on our reflect on 2013 and work to build rivaling Silicon Valley for its talent growing, vibrant metropolis business (B2B) meetings. Invest website, in our marketing materials, new relationships in 2014, we will in the technology realm. The City of in the heart of North America. Toronto promotes Toronto to and in the customized information continue to refine this process in Toronto values its entrepreneurs by international businesses primarily packages that we prepare for our order to provide the best customer providing a supportive tax and through in-market B2B meetings clients. We answer these questions service to our international regulatory environment, and fostering during our investment missions to every day, and work one-on-one with clients. It is a process that our team start-up communities through strategic markets. This year, Invest each company that expresses an is committed to, as we assist with incubators and accelerators such as Toronto conducted three missions interest in expanding their business making very difficult decisions, and the Toronto Business Development to China, and one mission each to into Toronto. This process can take a work hard to make the daunting Centre, the Digital Media Zone at Renato Discenza India and Europe to promote couple of months, or a couple of task of establishing a business in Ryerson University, and the MaRS President and CEO awareness of Toronto as an ideal years, as each of our clients is a foreign country a little easier. We Discovery District. The Canadian investment destination for both small unique and has specific needs. This take care of the “how.” Our great government also launched the businesses and large corporations. process is what we refer to as our city itself takes care of the “why.” Start-Up Visa in April 2013 to make Business Investment Lifecycle. 3 4 Invest Toronto 2013 Annual Report INVEST TORONTO’S PROSPECT BUSINESS CLOSE INVESTMENT LIFECYCLE The road to success for Invest and can make a decision to invest general economic conditions of both Toronto is driven by our Business in Toronto and move forward with the their home and international Investment Lifecycle. We work process within a year. However, markets. When the global economy directly with foreign businesses that companies from countries such as is unstable, foreign companies have an interest in expanding into China or India may take several are less likely to venture into a new the North American market and years to make their ultimate decision market. According to the United encourage them to consider Toronto to invest in Toronto. These clients Nations, in 2013, global Foreign QUALIFY as their access point. In order to may wish to meet with officials from Direct Investment (FDI) flows to PROPOSE assist companies from the moment Invest Toronto, the City of Toronto, developed countries remained at they make a decision to expand, to the Province of Ontario, or the a historically low share of global the moment that they open doors Government of Canada several total FDI flows (39 per cent) for the to their new headquarters, subsidiary, times in order to build a business second consecutive year. They manufacturing centre, or office relationship based on trust and increased by 12 per cent to US$576 in Toronto, we follow a Business respect before pursuing a Toronto billion, but only to 44 per cent of Investment Lifecycle that can last location. With companies such their peak value in 2007. FDI to the from several months to several as these, the Business Investment European Union (EU) increased, years. The duration of the Business Lifecycle can take up to several while flows to the United States Investment Lifecycle varies years as the Investment Services team continued their decline. Despite according to each client, the nature meets with them in-market, invites this global trend, FDI inflows to of their business, and the business them to visit Toronto to learn more Canada increased by 49 per cent culture from their home country. about the city’s value proposition in 2013 across a broad range of Services team highlights to our Securing a new foreign investment quality and timely service to our For instance, a company from the first-hand, and works through each industries, and this can be attributed international clients. In large part, is an involved process that clients that is specific to their needs. United States or Europe that is looking stage of the Business Investment to Canada’s economic strength this was due to the strength of the begins with the identification of We work to effectively tell Toronto’s to expand into Canada might move Lifecycle in greater detail as the and stability during the recession. Canadian financial services sector, prospective clients through business story and help shape a through the process rather quickly, company becomes familiar with headquartered in Toronto, and the research and concentrated lead client’s investment decision.