Doug Schweitzer, Minister of Jobs, Economy and Innovation. (Government of Alberta)

By rdnewsNOW Staff

$31.2 Million Investment

Alberta’s venture capital industry gets a boost

Jan 26, 2022 | 9:37 AM

The provincial government has announced a $31.2-million investment from the Alberta Enterprise Corporation (AEC) aimed to help Alberta technology and health innovation companies grow.

Officials say investing in venture capital funds means that Alberta’s early-stage tech startups and entrepreneurs will have access to the funding they need to help with the operational and administrative costs of growing their business.

As Alberta’s technology and innovation sector continues to grow in size and reputation, officials say this investment by AEC into three venture capital funds – Builders VC Fund II, Yaletown Partners’ Innovation Growth Fund II and Amplitude Venture Capital – will ensure the sector plays a strong role in a diversified economy.

“Alberta continues to see exponential growth in venture capital investment, helping to solidify our province as a hub for technology and innovation. We are building on this momentum by ensuring Alberta startups, including those with expertise in artificial intelligence, machine learning and other technologies, have access to the capital they need to grow. This investment will help our economy rebound and diversify while creating jobs for Albertans,” announced Doug Schweitzer, Minister of Jobs, Economy and Innovation.

“Our investment into these three funds provides access to capital for Alberta tech companies to develop solutions that will modernize traditional industries as well as shape emerging ones. The funds have well-connected teams in San Francisco, Vancouver and Montreal, meaning an investment from them brings Alberta founders money, as well as access to markets and mentors,” added Kristina Williams, CEO, Alberta Enterprise Corporation.

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AEC is investing approximately $12.5 million (USD $10 million) in Builders VC Fund II to support the growth of Alberta technology businesses focused on modernizing industries, including energy, real estate and construction, agriculture, health care and manufacturing.

AEC is also investing $13.7 million in Yaletown Partners’ Innovation Growth Fund II to help Alberta industry-focused software, data and device technology companies scale up their business and attract future investment.

An additional $5 million is being invested in Amplitude Venture Capital’s precision medicine venture fund to support the growth of life science, biopharma and digital health companies in Alberta.

The investments are said to be part of the government’s $175-million recapitalization of the AEC as a key priority of Alberta’s Recovery Plan to support Alberta’s technology companies and provide access to capital for early-stage companies.

Alberta government Quick facts

• Alberta’s government has invested a total of $350 million in the AEC since 2008.
• For every $1 Alberta Enterprise Corporation invests, more than $4.50 is invested back into Alberta companies.
• As of September 2021, Alberta had already surpassed 2020’s record year for venture capital investment by 5.5 per cent for dollars invested and 20 per cent for deals.
• Alberta ranks as Canada’s fourth-largest tech hub for invested dollars and deal volume, according to the Canadian Venture Capital Association Venture Capital Canadian Market Overview for Q3 2021, published in September 2021.

NDP Economic Development and Innovation Critic Deron Bilous issued the following statement regarding Alberta Enterprise Corporation investing in three venture capital funds:

“Attracting capital for startups is essential to growing our tech ecosystem, diversifying our economy, and creating jobs.

“While this can come from public funding through crown corporations like Alberta Enterprise Corporation, we need to do more to attract private capital to Alberta in order to keep pace with our competitors.

“Unfortunately, the UCP cut two programs vital to attracting this investment – the Alberta Investor Tax Credit (AITC) and the Interactive Digital Media Tax Credit (IDMTC). As a result, we are losing ground to other jurisdictions in Canada for tech investment.

“While reinstating these programs will level the playing field, more needs to be done to attract tech investment.

“We need to create an Alberta Venture Fund that would invite all Albertans to invest directly in the growth of our tech sector. This will ensure that Alberta is once again a competitive destination for investment and create the best possible innovation environment to attract new businesses and grow the industry here at home.”