5 Trends Indicate Rosy Outlook for Montana’s Tech Sector in 2019

By Christina Henderson and Katy Spence

2018 held a lot of exciting news for Montana tech and manufacturing companies. From record investments to acquisitions to new support for startups, Montana is poised for even more development in 2019.

Our 2018 High Tech Industries survey found that Montana companies generated nearly $1.7 billion in revenues in 2017 and reported growth at rates up to nine times faster than the statewide economy, according to the study conducted by the University of Montana Bureau of Business and Economic Research.

The study found that Alliance members continue to grow, employing just under 6,000 Montanans and paying a median annual salary of $63,000, a five percent increase over 2016. According to the study, high-tech pays more than twice the median earning per Montana worker and represents the third highest-paying industry in Montana

Major Acquisitions Point to Future Job Growth

In September, global IT provider Cognizant acquired Advanced Technology Group (ATG) in Missoula. ATG, a Cognizant company, currently has more than 130 employees, but Tom Stergios, senior vice president strategy and corporate development for ATG in Missoula, said Montana can expect to see the company continue to add jobs in the state. Cognizant has committed to adding 25,000 employees in the US over the next 5 years and has been impressed by the strong pipeline of workforce entering ATG from the University of Montana in Missoula.

In October, digital consulting firm Perficient acquired Elixiter, a marketing technology company based in Bozeman. Elixiter’s team of about 40 employees brings expertise in the Marketo marketing automation software and will become one of more than 20 Perficient locations around the world. Elixiter founder Andrew Hull has said Perficient is dedicated to growth in Montana and the acquisition will expand opportunities for clients and employees.

Record Investments Fuel Montana’s Fastest-growing Tech Companies

Not only has venture capital investment in Montana increased significantly ($83 million in venture capital in 2017 - 10 times the amount available in 2015 - according to financial data company PitchBook), but 2018 brought a quick succession of high-profile investments for Montana high-tech firms, suggesting significant growth ahead in 2019.

In March, Next Frontier Capital in Bozeman closed its second round of funding, pooling a total of $38 million to inject into companies. The firm also opened a Missoula office in April 2018 and is looking at opportunities in Billings, Kalispell, and other Montana cities as well.

In February, Missoula-based outdoor technology company onX closed a $20.3 million funding round led by Summit Partners, a growth equity firm in California. onX opened a second office in Bozeman and now has nearly 70 employees with plans to add a few dozen more. Pitchbook named onX Montana’s most valuable venture backed company in 2018 with an estimated post-valuation of $120 million.

In April, Livingston-based marketing technology company PFL secured a $25 million growth equity investment from Goldman Sachs. PFL opened its second headquarters in Indianapolis in March and also has teams in Bozeman and Billings. The company is building a new 55,000 square foot facility in Livingston for digital production and fulfillment. PFL has 300 employees and plans to add another 200 jobs, mostly in Montana, over the next three to five years.

Beyond investment, Montana companies received millions in grant money in 2018. Inimmune, a Missoula-based public-private partnership between the University of Montana and former GlaxoSmithKline employees, received $22.4 million in grants from the National Institute of Health this summer, most recently for researching and developing a more robust flu vaccine. Among other sources, the Big Sky Trust Fund and SBIR programs also continue to be an important fonts of funding for tech companies in Montana.

Member News:

Next Frontier Capital invests in outdoor and hunting media company in Bozeman

Dec. 14 -- Governor Steve Bullock welcomed outdoor media and lifestyle company, MeatEater, Inc. to Montana, following the company’s recent relocation to Bozeman.

Next Frontier Capital, whose mission is to aid the development of Montana technology companies, is an investor in MeatEater, Inc. MeatEater was also the recipient of a recent $40,000 film grant from the Montana Department of Commerce to feature Montana locations in their video series. This will be the first Netflix series to be shot in Montana supported by the Big Sky Film Grant.