Page 38 - Demo

During several conversations at ecosystem events, we heard firsthand from many individuals and family offices with deep expertise in non-tech sectors
that they are less familiar with early-stage tech investing. However, they are keen to get exposure into the tech/startup asset class. As a result, we implemented a new ecosystem strategy focused on investor education.
Creating access to capital for some sectors, specifically life sciences, has proven challenging. Our requirement for a full-time senior level investment professional to be located in Alberta has created a gap in our portfolio. Learning from this experience, AEC’s Board of Directors approved an exemption, allowing a part-time presence for a smaller investment amount for funds where there is a specific area of need. We will continuously evaluate if this is a model we want to pursue in the future.
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. 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. However, building a self-sustainable VC industry can take decades
To achieve this outcome, we need to continue to:
1. Create a VC fund portfolio that provides multi-sector and multi-stage capital aligned with Alberta deal flow.
2. Invest in VCs that establish an Alberta focus and presence, and bring key investment skills to Alberta.
3. Attract new VCs to Alberta.
4. Reinvest in existing high performing funds.
5. Find and champion fund solutions that address critical gaps.
6. Help build local Alberta-based funds and managers.
7. Steward capital responsibly by generating returns on our investments and being an engaged Limited Partner.
There are now more Venture Capital funds active in the province than ever before. The investment ecosystem is starting to flourish. Alberta’s Venture Capital performance continues to skyrocket. However, Alberta is still lagging behind other technology hubs. While Alberta’s VC sector has achieved some scale, we are expecting the demand for capital will outpace the supply in the provincial supply.
With the additional capital allocated to AEC
this fiscal year, we are now able to continue the momentum that has been built. Building a Venture Capital industry is a long-term project which requires patience and a continued commitment of capital. We are looking forward to building upon the success that we have already achieved, expanding our efforts and creating further return on investment for Alberta.
Our outlook remains as it has been from day-one.
2022 2023
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