Page 24 - Demo

Ultimate Outcomes
A thriving and self-sustaining VC industry in Alberta
Results and Discussion
Key Performance Indicator: Total direct Alberta jobs created in AEC’s portfolio companies
Target: Increase 150 annually to 2,564 AB employees at end of 2022/23
In addition to measures discussed previously, to assess this outcome, AEC reviews a number of factors. This includes total number of employees in AEC’s portfolio companies and Alberta-based investment professionals.
As of March 31, 2023, AEC’s portfolio companies have 2,898 direct employees, compared to 2,419 in March 2022. This is an increase of well over 400 employees and meets our target of increasing the number of employees. The increase is both a function of new companies in our portfolio, as well as an increase in the number of employees in existing companies.
To build a sustainable VC industry in Alberta will require patience and ongoing investments from AEC. We have been investing in VC funds since 2010. A typical VC fund has a life of 10 to 13 years (sometimes longer). As such, it is still too early to predict the full impact of AEC’s activities, but as detailed above, over our investment history we have achieved excellent results. That said, building a self-sustainable VC industry can take decades.
Key Performance Indicator: Total Value to Paid In capital (TVPI) of AEC’s investment portfolio
Target: ≥1
The investment capital from the Government of Alberta is a financial investment, not a cost. We expect to return the Province’s investment capital in a timeframe consistent with the life of a VC fund (approximately 10-13 years per each individual fund).
To measure this outcome AEC reviews a number of factors, including Total Value to Paid In capital (TVPI). TVPI is an important measure for assessing our ability to deliver financial results compared to the cost of the investments. A TVPI of >1 means the value of the investments plus distributions exceed the combined cost of the investments and associated fees.
As of March 31, 2023, every $1 invested by AEC is worth $1.35 (a TVPI of 1.35), which is a decrease from the March 2022 TVPI of 1.45. The decrease reflects the overall downturn in market conditions over the year, but is still significantly above our target of achieving a TVPI of ≥1. Our early investments are now maturing and are providing a higher return of capital and realized gains.
Return to the Province its initial investment capital
2022 2023
22