Page 23 - Demo

A blend of capital from managers internal and external to Alberta
Key Performance Indicator: Number of funds with headquarters in AB in AEC’s portfolio Target: 3 by end of 2022/23
Alberta Startups and Alberta’s technology ecosystem benefit from a mix of VC funds that are headquartered and operate across different regions. To measure this outcome Alberta Enterprise reviews a number of factors, including the number of Venture Capital funds with their headquarters in Alberta. Alberta Enterprise’s portfolio now has 5 Venture Capital funds with their headquarters in Alberta, surpassing the 2022/23 target of 3 and increasing by 2 since March 2022 (the new AB-based funds were PillarFour II and Sprout II). Alberta resident funds bring value by understanding and focusing on local investment sectors and maintaining a sustained presence with a local workforce. On the other hand, funds located in other jurisdictions provide benefits such as access
to new markets, syndicate investors, limited partners, and other resources such as a technology talent.
In addition, it is beneficial to add a mix of new managers to the portfolio, who bring new perspectives and fill gaps in the portfolio, while also continuing to support existing high-performing managers – who bring stability to the portfolio through their prior experience and networks in AB. Over 2022/23, of the six closed funds, four new managers were added and two existing managers were supported. In contrast, over 2021/22, two new managers were added, and two existing managers were supported.
Key Performance Indicator: Total Alberta portfolio companies in AEC’s portfolio that have received capital
Target: 70 companies by end of 2022/23
Key Performance Indicator: Total dollars invested by AEC funds and syndicate
partners into Alberta companies
Target: $856 million by end of 2022/23
Key Performance Indicator: Ratio of total invested by AEC’s funds and syndicate partners
Target: 1:4 at end of 2022/23
To measure this outcome AEC reviews a number of factors, including the total number of Alberta companies that have received investments from our funds, dollars invested into Alberta companies, and the ratio of investments into Alberta companies compared to capital invested by AEC into funds.
As of March 31, 2023, our funds and their syndicate partners have invested $1.13 billion into 76 Alberta technology companies. This can be compared to $1.0 billion into 65 companies as of March 2022. That represents an increase of 11 companies and $128 million over the year. We exceeded the 2022/23 target of $856 million set by the Ministry of Jobs, Economy and Innovation15, doubling the target of 5 additional companies. Contributing factors to the increases include a larger number of funds in our portfolio actively investing, an increasing pool of startup Alberta investment opportunities, and the maturation of our portfolio companies: resulting in larger follow-on financing rounds.
Every $1 invested by AEC in funds (including fees) has generated more than $5.43 of investments into Alberta companies. This significantly exceeds the 2022/23 target of $4 for every $1 invested and is also slightly up from 2021/22 when the corresponding investment into Alberta companies was $5.41. The increase reflects both investments in new companies and significant capital invested in follow-on rounds into Alberta companies. This indicates that AEC has achieved a higher efficiency with our capital compared to last year.
2022 2023
Stimulated investment in Alberta knowledge- based industries
15 Ministry Business Plan 2022-25 page 72.
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