Why A Chinese Tech Company Chose Halifax Over Silicon Valley
Skyline: Smart Business in a Paperless World
“The startup environment here is awesome, and I think it’s going to be an amazing journey starting from here” — Hai Hu, co-founder of Skyline
Who are they?
Hai Hu and Changhai Jiang, co-founders of Skyline have found a new home as Residents at Volta Labs. After going through the Innovacorp Start-up Visa Program, the pair has decided to stay in Halifax and take advantage of everything it has to offer.
For 17 years, these innovative minds have worked side-by-side. From freshman year in college, to graduating with PhDs, to then embarking on a startup venture with Skyline, they have worked together. The duo believe their revolutionary smart technology will change the way the world approaches retail shopping.
With big-name clients in China like Lenovo to boast from, they have nothing but high hopes for their North American expansion plan.
What is “Smart Retail”?
The term “smart retail” is an encapsulating term that means to optimize and digitize the exchange that happens during a retail transaction. Simply put, it makes buying stuff easier. With many companies looking to make the shift from brick & mortar to digital, Skyline’s technology can often be the perfect solution. Skyline deals with interesting approaches of optimization, using Internet of Things, RFID and facial recognition software.
One thing they are working to establish is a more efficient in-store shopping experience using Skyline technologies. Their technology already has successfully powered Amazon Go in a store in Shanghai, which allows customers to walk into a store, grab what they need, and just go. The items you take off of a shelf are instantly added into your digital “cart”, then charged to your account as you leave the store.
Working with Lenovo, they have also developed a system to streamline customer repairs and part sales. This has helped transactions happen much more efficiently within about 200 repair shops in China.
It’s location, location, location. Or is it?
With tech companies, location doesn’t matter as much as it may seem. You could operate a successful tech startup out of your mom’s basement if you really wanted to. There is still a notion that successful startups belong at the flashiest, loudest, fastest hub you can find. For many, this means joining an accelerator program out of Silicon Valley.
Skyline recognized, that as a B2B, they should go where it made the most sense for them to grow as a company. As sexy as Silicon Valley can seem from the outside, it just wasn’t best business move for the small company. For now, they will be making the most of their residency at Volta and taking advantage of the resources that come along with it.
Silicon Valley vs. Halifax
It seems like an optimistic comparison to make. With Silicon Valley pumping out A-List companies like Facebook, Apple and Google, how can quaint little Halifax compare with that?
Well, the glamorous Silicon Valley isn’t all it’s cracked up to be, at least for these co-founders. Having spent 6 months going through the Alchemist Accelerator, the pair recognized a lot of downfalls that it has for young startups.
“Although it’s (Silicon Valley) been a holy land for entrepreneurs and tech startups, we didn’t find it very attractive for starting a company”
Silicon Valley
“It’s over-expensive, in terms of everything” — Hai Hu
For Skyline, the normalized fast-paced and overly expensive way of life that comes with Silicon Valley wasn’t very attractive. They found that this approach makes it easy for early stage companies to burnout. The limited available resources dry up quickly and the expectancy to produce is pretty much a necessity in order to survive.
Halifax
“Such a vibrant and active entrepreneur society.” — Hai Hu
Halifax is quickly becoming a hotspot for startups, with Volta at the centre of it all. Hu, highlights the many aspects of being a startup in Halifax that helped finalize their decision to move his company to the East Coast.
He goes on to praise the fact that “Halifax has a unique advantage, in terms of its pool of talent.” Making note of the fact that Halifax can brag having:
- 10 Universities nearby
- Lower employee salaries
- Lower rent for office space
- Vibrant startup community & network
- Government support
- Funding opportunities
- Salary subsidies
- Research grants
Is Halifax the Right Starting Place for You?
Volta offers a ton of resources for companies looking to grow or simply get off the ground. Find out how you could be eligible for $50,000 in resources, or join our community through our Network Program.
Originally published on The Volta Blog.
