Derivative
Derivative is a Toronto-based private software company that develops TouchDesigner, a GPU-accelerated visual development platform for real-time interactive audiovisual content, serving media artists, live event producers, and installation studios globally through tiered licensing and subscription support.
- Company typePrivate
- Founded2000
- HeadquartersToronto, Canada
- Headcount11–50
- GTM typeB2B and B2C
- OfferingSoftware
What Derivative does
Derivative is a privately held Canadian software company founded in 2000 and headquartered in Toronto, Ontario. It develops and commercializes TouchDesigner, a node-based visual development platform for creating real-time interactive audiovisual content. The platform uses a procedural GPU-accelerated architecture organized into operator families (TOPs, CHOPs, SOPs, DATs, COMPs) and, with the 2025 release, a new POPs (Point Operators) family designed for real-time 3D geometry processing at scale. TouchDesigner integrates with a broad device and protocol stack including NVIDIA GPUs, BlackMagic, AJA, Bluefish444, Ableton Live, DMX/Art-Net lighting protocols, ST2110 IP video, ZED cameras, and VR systems.
The company monetizes through tiered perpetual software licenses: Non-Commercial (free, resolution-limited), Educational ($300+), Commercial ($600+), and Pro ($2,200+), supplemented by annual update subscriptions, a Pro Support program ($250/hour beyond the included 6 hours), USB hardware dongles, and a recently introduced Floating Cloud subscription tier for team deployments. The product portfolio also includes TouchEngine (embedded runtime) and TouchPlayer (standalone playback), enabling deployment beyond the authoring environment. Distribution is exclusively direct-to-consumer via the company website.
Derivative serves a horizontal set of creative professional segments — media artists and VJs, live performance and concert production companies, installation and experience design studios, educational institutions, VR developers, and enterprise production companies. Customers include ARTECHOUSE, Volvox Labs, Sila Sveta, Quayola, and Moment Factory. The company maintains an active global community across YouTube, Instagram, Facebook, X, a dedicated forum, community-written books in multiple languages, and local meetups in cities including London, Berlin, Bangkok, NYC, Dublin, Vancouver, and Tokyo. Founders Greg Hermanovic, Rob Bairos, and Jarrett Smith remain in leadership, with no disclosed institutional investment.
Derivative firmographics
Firmographics- Name
- Derivative
- Legal name
- Derivative Inc.
- Website
- https://derivative.ca
- Company type
- Private
- Founded year
- 2000
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Derivative is a Toronto-based private software company that develops TouchDesigner, a GPU-accelerated visual development platform for real-time interactive audiovisual content, serving media artists, live event producers, and installation studios globally through tiered licensing and subscription support.
- Ownership category
- akta.pro rank
Derivative industry classification
Industry- Product category
- Real-time Visual Development Software
- NAICS
- Audio and Video Equipment Manufacturing (33431), Computer Systems Design Services (541512)
- SIC
- Services-Computer Programming Services (7371), Services-Motion Picture & Video Tape Production (7812)
- akta.pro primary industry
- Video Creation, Editing & Publishing Tools (Creator Software) (MPACABAD)
- akta.pro secondary industries
- Live Audio Q&A, Coaching & Mentorship Platforms (MPACAEAI), Mobile Music Creation Apps (Beatmaking, Songwriting, Practice) (MPAIAIAC), Workshops, Webinars & Live Masterclasses (MPACALAD), Microlearning & Short-Form Lesson Platforms (MPACALAE), Creator-Centric Short-Form Video Platforms (MPACAHAB), Maker / DIY Electronics & Physical Computing Platforms (EDAFANAC), Short-Form Video Creation, Editing & Templates Apps (MPACAHAE)
Keywords
Where Derivative is headquartered
LocationHeadquarters
- HQ city
- Toronto
- HQ country
- Canada
- HQ region
- North America
Offices1 record
Markets served
Derivative business model
Business model- GTM type
- B2B and B2C
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure, Others
Revenue model
- Software Licenses: Tiered perpetual software licenses (Non-Commercial free, Educational from $300, Commercial from $600, Pro from $2,200) with optional floating cloud versions at higher price points. Revenue from initial license sales with optional update subscriptions.
- Update Subscriptions: Annual and multi-year update packages for maintaining access to latest builds. Pro updates $400/year or $680 for 2 years; Commercial updates $300/year or $510 for 2 years. Requires valid update date on license key.
- Pro Support Services: Priority support services for Pro license holders including bug fixes, production assistance, consulting, and custom SDK/protocol development. Includes 6 hours of support time with Pro license; additional hours available at $250/hour.
- Hardware Dongles: USB hardware dongles (micro-sized and regular-sized at $180 each) and CodeMeter dongle setup ($50) for license management and portability.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Freemium | Others | Free tier for non-commercial use |
| Subscription | Annual | Academic pricing for educational institutions |
| One time/ perpetual license | Multi-year contract | Standard commercial license for paying projects |
| One time/ perpetual license | Multi-year contract | Full-featured license with priority support |
| Subscription | Monthly | Cloud-based floating license option |
| Unit Pricing | One time/ perpetual license | Hardware license management devices |
| Subscription | Annual | License update extensions |
Go-to-market motion3 records
Distribution channels3 records
Marketing channels11 records
Derivative product offering
Product offeringCore offering
Derivative develops and sells TouchDesigner, a GPU-accelerated visual development platform that uses a node-based procedural architecture (operators organized in families such as TOPs, CHOPs, SOPs, DATs, COMPs, and POPs) for creating real-time interactive audiovisual content. The platform enables media artists, designers, and production studios to build multimedia installations, projection mapping, live performance visuals, VR experiences, and interactive applications with deep integration to video, audio, 3D, lighting control, and computer vision systems. Companion products include TouchEngine (embeddable runtime engine) and TouchPlayer (standalone content playback).
Product overview
Derivative offers TouchDesigner as a comprehensive visual development platform for creating real-time interactive audiovisual content. The product portfolio consists of TouchDesigner (the core visual programming environment), TouchEngine (runtime engine for embedding in other applications), and TouchPlayer (standalone playback solution). TouchDesigner is available in four licensing tiers: Non-Commercial (free for personal/educational use), Educational ($300+ for institutions), Commercial ($600+ for professional projects), and Pro ($2200+ for full features including Pro Support). The platform also offers TouchPlayer in Commercial and Pro versions, USB dongles for hardware-based licensing, update packages, and additional Pro Support hours. TouchDesigner Pro includes advanced features such as multi-machine sync, hardware frame-lock, tracking system integrations (BlackTrax, WrnchAI, Stype), and projection mapping support (Vioso, Scalable Display).
Differentiator
Problem solved
Functional benefit
Products and services
- TouchDesigner (Core Visual Development Platform) GPU-accelerated visual development platform for creating real-time interactive audiovisual content, multimedia installations, live music visuals, projection mapping, VR experiences, and rapid prototyping. Uses a node-based architecture with operators organized in families (TOPs, CHOPs, SOPs, DATs, COMPs, POPs). Targets media artists, designers, and production studios.
- TouchDesigner Non-Commercial License Free license tier of TouchDesigner for personal use, learning, or evaluation. Resolution is limited to 1280x1280 with basic operations. Not licensed for use in paying projects. All accounts start with 10 Non-Commercial keys.
- TouchDesigner Educational License Educational license for schools, faculty, and students priced from $300 USD. Includes max resolution of GPU, H.264/H.265 movie export, video streaming to web, TouchEngine in other apps, Leuze LIDAR scanner support, shared memory and DirectX operators, HD Notch Block playback x2, and forum support. Not for paying projects.
- TouchDesigner Commercial License Fully featured TouchDesigner license for use in paying projects, priced from $600 USD. Enables professional commercial work with all core features.
- TouchDesigner Pro License Top-tier TouchDesigner license priced from $2,200 USD. Includes every feature in TouchDesigner plus access to Pro Support (6 hours included). Features include multi-machine sync, hardware frame-lock, Stype camera tracking, BlackTrax and WrnchAI tracking, Vioso and Scalable Display support, Notch Block playback, and privacy features.
- TouchEngine Runtime engine for embedding TouchDesigner capabilities within other applications. Enables TouchDesigner-based functionality to run inside third-party software via TouchEngine integration.
- TouchPlayer Standalone playback solution for playing TouchDesigner-created content. Available in Commercial and Pro versions for different deployment scenarios. Enables distribution of TouchDesigner projects without requiring the full authoring environment.
- TouchDesigner Pro Support Services Priority support program for Pro license holders including bug fixes with ASAP resolution, production assistance and consulting, new features and SDK additions, customized builds, and 24-hour response time during business hours. Includes 6 hours of support with Pro license; additional hours available at $250/hour.
- TouchDesigner Floating Cloud License Cloud-based floating license for team deployments. TouchDesigner Pro Floating Cloud available for $3,300, Commercial Floating Cloud for $900. Enables license sharing across team members via monthly subscription model.
- USB Hardware Dongles Hardware-based licensing solution for license portability. Available in Micro-sized and Regular-sized USB Dongle variants ($180 each), plus CodeMeter Dongle Setup ($50).
Quantifiable outcome
- GPU-accelerated 3D processing with millions of points in real-time (POPs family)
- +4 more outcomes
Companies that use Derivative
Customer profileNamed customers10 records
Segments6 records
Ideal customer profiles5 records
Derivative technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration32 records
AI capability11 records
Feature9 records
Derivative partnerships and signals
Strategic signalPartnerships
Eight partnerships are on record, tiered core and major.
- NVIDIAcoreNVIDIA is listed as a technology partner. TouchDesigner leverages NVIDIA GPUs for high-performance video playback and rendering, with specific optimizations for Geforce, Quadro, and RTX series. The 2025 release adds support for NVIDIA's new 50-series GPUs (Blackwell architecture) with updated Maxine SDK for background processing, denoise, upscaler, and body/face tracking.
- Moment FactorycoreMoment Factory is listed as a partner. As one of the leading immersive experience studios globally, their partnership with Derivative represents a key strategic relationship for the TouchDesigner ecosystem in the live entertainment and installation space.
- MUTEKmajorMUTEK is a partner organization - a prominent digital art and electronic music festival/forum. The partnership supports the creative technology community that TouchDesigner serves.
- TEA CommunitymajorTEA Community is listed as a partner, representing the Technology, Entertainment, Art community connection that TouchDesigner serves.
- Bluefish444coreBluefish444 provides HD-SDI capture and playback solutions. TouchDesigner has native SDK support for Bluefish444 devices, enabling high-performance HD and 4K video input and output. The partnership enables professional broadcast-quality video workflows.
- Substance (Adobe)majorSubstance by Adobe provides materials and texture tools. TouchDesigner integration allows use of Substance materials in real-time visualization and rendering workflows.
- NotchcoreNotch provides real-time graphics capabilities. TouchDesigner Pro includes Notch Block playback support, enabling integration with Notch-created content in TouchDesigner projects.
- LaserAnimation SollingermajorLaserAnimation Sollinger partnered with Derivative to redesign the Laser CHOP in TouchDesigner 2025. They guided the specification and implementation of parameters to improve laser behavior and performance, including blanking calculations, image sharpness, and point generation.
Scale indicators8 records
Recent moves7 records
Expansion highlights6 records
Derivative competitors and assessment
Company assessmentDirect peers
- Notch: Notch is a real-time graphics engine purpose-built for live events, concerts, and interactive installations. It directly competes with TouchDesigner in live performance and immersive experience markets with similar real-time rendering capabilities for VJs and installation artists.
- Isadora: Isadora is a media control software designed for live performance and interactive installations. It serves theater, VJ, and installation artists with similar real-time media manipulation capabilities, competing directly for the live performance segment.
- Resolume: Resolume is VJ software for live video mixing and effects. It directly competes with TouchDesigner in the VJ and live event visual market, offering more accessible tools for live video performance focused on ease of use.
- HeavyM: HeavyM is a projection mapping software designed for live events and installations. It directly competes with TouchDesigner in projection mapping with a more streamlined, accessible interface for non-programmers.
- MadMapper: MadMapper is a projection mapping and LED mapping software. It directly competes in the projection mapping and installation design segment, offering specialized tools for mapping visuals onto irregular surfaces.
- vvvv: vvvv is a visual programming environment for creative coding and real-time interactive media. It serves a similar audience of media artists, VJs, and installation designers, with comparable node-based workflows for prototyping interactive experiences.
Broad incumbents
- Unreal Engine (Epic Games): Unreal Engine is a broader real-time 3D platform used for games, film, virtual production, and increasingly live events and installations. It offers overlapping capabilities for interactive installations with vastly greater resources and a broader scope.
- SideFX (Houdini): Houdini is the parent technology from which Derivative was spun off in 2000. While Houdini focuses on VFX and procedural content creation for film/broadcast, it overlaps with TouchDesigner for procedural 3D workflows and is integrated as a geometry source.
- Unity Technologies: Unity is a real-time 3D development platform used across games, architecture, automotive, and increasingly live events. While focused on game development, Unity overlaps with TouchDesigner in real-time rendering and interactive media use cases.
- Maxon (Cinema 4D): Maxon's Cinema 4D is a 3D modeling, animation, and rendering software used by motion graphics artists and broadcasters. It overlaps with TouchDesigner in motion graphics workflows but focuses on rendering rather than real-time interaction.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
Derivative social profiles
Digital presenceDerivative financial estimates
Financial estimateRevenue estimate
Valuation estimate
Derivative leadership team
Management profileNumber of profiles
Profiles5 records
Derivative funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Derivative M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Derivative
What does Derivative do?
Derivative develops and sells TouchDesigner, a GPU-accelerated visual development platform that uses a node-based procedural architecture (operators organized in families such as TOPs, CHOPs, SOPs, DATs, COMPs, and POPs) for creating real-time interactive audiovisual content. The platform enables media artists, designers, and production studios to build multimedia installations, projection mapping, live performance visuals, VR experiences, and interactive applications with deep integration to video, audio, 3D, lighting control, and computer vision systems. Companion products include TouchEngine (embeddable runtime engine) and TouchPlayer (standalone content playback).
Is Derivative a public or private company?
Derivative is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Derivative founded?
Derivative was founded in 2000. It employs 11 to 50 people.
Where is Derivative based?
Derivative is headquartered in Toronto, Canada, in the North America region.
How does Derivative make money?
Four revenue lines are on record. Software Licenses are the primary driver. The others are update Subscriptions, pro Support Services and hardware Dongles.
Who are Derivative's main competitors?
Direct peers on record are Notch, Isadora, Resolume, HeavyM, MadMapper and vvvv. Broad incumbents are Unreal Engine (Epic Games), SideFX (Houdini), Unity Technologies and Maxon (Cinema 4D).
Does Derivative have an API?
Yes. TouchDesigner offers Python scripting capabilities through its extensive Python API. The TDI Library is a tool for Microsoft Visual Studio Code (VS Code) which enables popup help and code-completion when working with Python. It contains the help documentation and Python descriptions of all built-in TouchDesigner objects, classes and functions. TouchDesigner's core python version has been updated to 3.11.10. The Python Environment Manager (tdPyEnvManager) allows users to sideload and manage python virtual environments, conda environments, and third-party packages and libraries.
What industry is Derivative in?
Derivative's product category is Real-time Visual Development Software. Its primary akta.pro industry code is MPACABAD, Video Creation, Editing & Publishing Tools (Creator Software), with a secondary code of MPACAEAI, Live Audio Q&A, Coaching & Mentorship Platforms. Its NAICS code is 33431 and its SIC code is 7371.