The troubles at BlackBerry Ltd, which fired more than half its staff and lost more than 90 percent of its market value as consumers shunned its smart phones, might have spelled disaster for the company's hometown of Waterloo, Ontario. Instead, there are hot sports cars in the streets and new companies filling the refurbished office buildings.
More than 450 start-ups opened for business in the twin cities of Waterloo and Kitchener last year, more than four times the number begun in 2009, according to Communitech, a local company that advises them. Often, the new companies are being founded by former BlackBerry employees chasing their entrepreneurial ambitions in a community that's Canada's answer to technology hubs in California and elsewhere.
"For those who are trying to get a new tech business off the ground, get it funded, and not get lost in the shadow of Silicon Valley, Waterloo can be the best place to get your company on the map," said Sean McCabe, vice-president of engineering at drone manufacturer Aeryon Labs Inc in Waterloo.
Take Adam Belsher, 39, who left BlackBerry in 2011 after 13 years at the company because he wanted to run his own business and felt the impact he was having at BlackBerry, which was formerly known as Research in Motion (RIM), was eroding as the company got bigger.
Today, Belsher is chief executive of Waterloo-based Magnet Forensics, a company that makes software used by police to recover deleted information from computers such as e-mails, financial records and photographs.
"I saw RIM go through so many stages of growth and I take lessons from every one of those experiences," said Belsher, who managed BlackBerry's business with the biggest U.S. wireless carrier, Verizon. "There are very few companies that disrupt a mature market like wireless and create an entirely new multi-billion dollar category, so I believe I have more than a few good nuggets that I can apply to Magnet."
Belsher is one of many former BlackBerry employees who chose to stay in Kitchener-Waterloo, rather than move to the Canadian financial hub of Toronto, or to California's Silicon Valley.
BlackBerry became Canada's most valuable company in 2007, just before Apple Inc released the first version of its iPhone. At its peak in 2008, the company was valued at more than $80 billion, compared with about $4 billion now.
"BlackBerry actually made many, many millionaires who still live locally, who started investing in tech companies," said Michael Litt,