Page 18 - Demo

2022 2023
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INVESTMENT STRATEGIES AND OUTCOMES
AEC utilizes a number of investment strategies to achieve our mandate.
1. Create a portfolio that provides multi-sector and multi-stage matching capital to Alberta deal flow
To maximize the value of AEC’s investments, it
is critical that our capital be invested in Funds
that complement the available deal flow in
the province. Our aim is to have VCs actively engaged in Alberta across the core knowledge sectors, including information technology, industrial technology and life sciences, and investment stages represented by Alberta startups. Accordingly, AEC aims to create a portfolio of fund investments that meets the need for capital across all sectors, including meeting the critical demand at the earliest stages.
2. Invest in VCs that establish (or maintain) an Alberta focus and presence and bring key investment skills to Alberta
It is critical that the funds we invest in view
Alberta as a strong opportunity for investment that warrants the fund’s focus, attention and resources. AEC therefore seeks out funds that see strong alignment between their own investment thesis and the deal flow in Alberta. To achieve this, AEC requires that each of our funds maintain a significant local presence in the province.
3. Attract new VCs to Alberta.
A key strategy behind AEC’s fund approach is
to pull VCs from outside Alberta so that we can leverage their industry and network of experts. It is important to attract established fund managers with startup experience, industry connections
and networks – because beyond money, this is what Alberta startups lack. With few tech VC funds headquartered in Alberta, it is also crucial to attract outside funds to fill the immediate need for capital, while we grow Alberta’s local VC fund talent.
4. Reinvest in high performing existing fund managers.
Once a VC fund is operating in Alberta, the expectation is that significant value will be provided to Alberta companies and to the Alberta ecosystem through each funds’ investment activity, mentoring of companies, and activity in the ecosystem. Funds that can demonstrate their value-add to Alberta startups and the Alberta ecosystem are given priority for re-investment when they begin raising subsequent funds.
5. Find and champion fund solutions that address critical gaps.
In certain situations, there may be gaps in meeting the demand for capital in certain sectors or stages. In this situation AEC will seek out or design new and innovative programs to meet those needs.
For example, to date AEC has designed and launched three innovative funds that expand
the available capital for seed-stage and angel- backed start-ups in Alberta (Accelerate funds
I-III). Another example is relaxing the full-time presence requirement in specific areas where there is demand for capital, but we’ve been unable to attract funds to match the demand.
6. Help build local Alberta-based funds and managers.
AEC aims to help create more home-grown technology VC talent, with the end goal of helping to establish more locally headquartered funds in the future. AEC has supported locally-based funds, and we are developing home-grown VC talent through the local representatives of the funds headquartered outside Alberta. We continually meet with new locally-based teams, knowing that it takes time to build a strong Alberta VC fund presence. To achieve this, we developed an Alberta micro fund strategy that provides added flexibility in certain of our investment criteria to expand the pool of Alberta funds.