Our Model

Over the past 50 years, governments around the world have used various approaches to increase the access to Venture Capital and to build a Venture Capital industry in their region. Policy makers have learned that rather than direct investment programs, a government sponsored fund which invests as a Limited Partner in VC Funds is the most efficient and effective model. Alberta Enterprise has been following this model since 2008.

An Investment in Alberta’s Prosperity

What makes Alberta Enterprise Corporation (AEC) unique is our investment model. Since our capital is invested, the province benefits not only from the creation of a local VC industry with resident professionals who support the creation of a diversified economy, but also in the future financial return on our VC fund investments. This future return on investment will come back to the Government of Alberta and will remain within the province.

Benefits to the VC Model

  • Provides financial capital, experience, contacts and mentorship to help Alberta entrepreneurs bring their ideas and innovations to market
  • Companies get direction and advice on long-term goals and risk management
  • Startups and early-stage technology companies access capital for growth which can’t be accessed via traditional sources such as bank loans and public markets
  • Creates high-tech jobs in Alberta
VC-backed firms outperform their non-VC backed peers:
  • VC-supported businesses show a compound annual employment growth rate that is 2.4% higher than non-VC businesses
  • VC support is associated with as much as 3.4X higher average annual revenue growth 
  • Companies supported by VC represent a disproportionate share of stock market capitalization and R&D spending

Our Investment Strategy

  1. Create a portfolio that provides multi-sector and multi-stage matching capital to Alberta deal flow.
  2. Invest in VCs that establish (or maintain) an Alberta focus/ presence and bring key investment skills to Alberta.
  3. Attract new VCs to Alberta.
  4. Help build local Alberta-based funds and manager.
  5. Reinvest in existing high-performance funds.
  6. Find and champion fund solutions that address critical gaps.