Nate Glubish, Minister of Technology and Innovation. (Government of Alberta)

By rdnewsNOW Staff

Alberta

Province says Alberta continues to smash investment records

Feb 23, 2023 | 2:33 PM

The Alberta government says the province’s technology and innovation sector broke records for a fourth straight year, attracting $729 million in investments in 2022, a 30 per cent increase over 2021.

Government officials say the Canadian Venture Capital and Private Equity Association has released its 2022 annual report showing that Alberta has broken another venture capital investment attraction record. Officials note Alberta continues to see sustained growth in venture capital investment, solidifying the province as a hub for technology and innovation.

The government says Alberta had its best fourth quarter on record with $220 million invested into tech companies across 85 deals. The 30 per cent increase in year-over-year values is described as being in stark contrast to Canada as a whole, which saw a decline in venture capital dollars invested of nearly 30 per cent. Due to the rapid year-over-year growth, the government says Alberta is now capturing 12 per cent of the venture capital invested in Canada.

“Alberta’s tech sector is on fire. We are seeing record levels of investment leading to more jobs and a more diversified economy. We are building on this momentum by ensuring Alberta startups have access to the right supports they need to grow,” says Nate Glubish, Minister of Technology and Innovation.

Provincial officials say Alberta’s technology and innovation sector continues to grow in size and reputation, attracting investment dollars and tech professionals from across Canada and around the world.

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Alberta Enterprise Corporation

The Alberta Enterprise Corporation (AEC) is said to play a valuable role in growing the technology and innovation sector. Officials say AEC grows Alberta’s venture capital industry by investing in venture capital funds that finance early-stage technology companies. AEC is said to support Alberta’s venture capital ecosystem by connecting investors, entrepreneurs and experienced technology executives who share a passion for building a bright and innovative Alberta.

Currently, every $1 invested by Alberta Enterprise Corporation results in more than $5 of venture capital investment into Alberta technology companies, creating more than 2,800 direct jobs and an estimated 13,400 indirect jobs, say government officials. Since its launch in 2008, officials say AEC has provided $330 million in investment, which has been leveraged to create access to more than $4.5 billion in capital for Alberta knowledge-based companies.

“Alberta’s tech sector has become a force to reckon with in Canada and beyond. For the fifth year in a row, we are seeing increased investments into Alberta technology companies. Alberta is capturing a larger proportion of the venture capital deals made in Canada compared to our population basis. This is a testament to the great businesses our entrepreneurs are building, combined with support from Alberta’s government,” comments Kristina Williams, president and CEO, Alberta Enterprise Corporation.

If passed, provincial officials say Budget 2023 would build on this economic momentum by increasing AEC’s operating spending target by $687,000 to expand its internal operations and further support the growing number of new fund investments.

Alberta government quick facts

• Alberta continues to rank as Canada’s fourth-largest tech hub, with Calgary being the fourth most active city for number of deals (64) and deal amount ($647 million), while Edmonton came in seventh for number of deals (18) and 10th for invested dollars ($58 million).
• Some key examples of recent tech investment in Alberta include:
  • Jobber’s US$100 million Series D
  • Summit NanoTech’s US$50 million Series A-2
  • Symend’s US$40 million Series B
  • Attabotics US$71.7 million Series C
  • Mphasis is setting up its Canadian headquarters in Calgary, bringing at least 1,000 tech jobs to the city
  • Infosys, a tech giant that specializes in digital services and consulting, is bringing 500 jobs to Calgary over the next three years
  • Amazon Web Services is expanding its global infrastructure with a Data Center Region in Calgary, estimated to create more than 950 new jobs.
  • mCloud Technologies Corp is relocating its corporate headquarters to Calgary
  • Applexus Technologies is expected to create 125 jobs when its headquarters opens in Calgary

NDP Economic Development and Innovation Critic Deron Bilous issued the following statement in response:

“In their first budget, the UCP declared economic diversification a ‘luxury’ and cancelled several programs designed to support Alberta’s tech sector. In addition, they cut tech training spaces and cut the province’s AI strategy.

“The UCP’s cuts to our tech sector led to instability, and companies either moved out of the province or invested elsewhere. Recently, we have seen layoffs in the province’s tech sector, including the closure of Google’s DeepMind in Edmonton and the relocation of those world-class jobs to Montreal and Toronto.

“Despite an increase in investment, Alberta fails to keep pace with the rest of the country on a per capita basis. While Ontario attracted 47 per cent of the country’s investment, Alberta only attracted seven per cent. It’s frustrating to think how much further ahead we would be if the UCP had not cut support for the sector.

“As our tech sector faces headwinds, we need to ensure we are competitive in order to attract investment to Alberta. An Alberta NDP government will restore our competitiveness by reinstating tax credits to support the tech sector and reinvesting in post-secondary institutions to build up the talent pipeline.”