Profit Magazine: Hostopia - Canada's 6th Hottest Startup

Toronto, August 26, 2002 – With growth at 2,811% Hostopia enthusiastically received the title of Canada’s 6th Hottest Startup Company from Profit Magazine.
Hostopia rose to the top in a contest that featured thousands of entries based upon its impressive revenue growth. An online nomination drive at PROFITguide.com was promoted through PROFIT's e-mail newsletters and online publications of numerous business organizations. Direct-mail campaigns also targeted previous winners, venture groups, VCs PR firms and pre-qualified companies. Entries were ranked by two-year sales growth; numbers were checked against company statements.
Profit Magazine reiterates that Hostopia’s value proposition is one that “...lets companies offer Internet services without having to invest huge dollars in building the infrastructure, the people, and the technology”. They also recognize and have confidence in the pedigree of talent which comprises Hostopia’s founding partners.
President of Hostopia, Franc Nemanic states that, "The key to our success as a hypergrowth company: building a solid team that can adapt to the changing environment".

Entrepreneurs John Nemanic, Bill Campbell, and Colin Campbell, noted for their success in two other startups Tucows Interactive, one of the most popular sites on the internet, and Internet Direct, the 4th largest ISP in Canada, teamed up with Franc Nemanic to build a world class email and web hosting solution for Canadian and American service providers. In 1999, Franc Nemanic launched Hostopia and shortly after the entire Internet industry imploded, but instead ofrolling over and dying like numerous other dot-coms, Nemanic and his team changed track to take advantage of the terrible market conditions. "The companies that were potentially our customers could no longer risk millions to develop a hosting solution in-house. They realized it now made absolute sense to outsource," says Nemanic.

Hostopia's staff has grown to 75 and has a presence in every continent except Antarctica, and hosts more than 150,000 users worldwide on behalf of its customers.
Telus, one of Canada's leading telcos recently became a shareholder in Hostopia with an investment of $2 million U.S. After Telus acquired the Canadian assets of PSINet last year, it sought out Hostopia's expertise to help move these newly acquired Web hosting accounts onto the Telus network.

Hostopia’s growth doesn't stop here. With the U.S. hosting market estimated to grow from $1.4 billion U.S. in 1999 to $19.8 billion U.S. by 2004, Nemanic and partners see significant growth prospects ahead.