With an organization that is investing taxpayer money into Venture Capital funds that are investing in forward-thinking Alberta tech startups – there are many ways to evaluate the Return On Innovation.
Alberta Enterprise is steadily helping to foster a dynamic and sustainable environment necessary to support a modern technology industry. All indicators point to the fact this proven model is working here in Alberta, and is generating results beyond the bottom line.
Our investment model sets us apart, and allow us to achieve multiple objectives. The capital provided is invested, and as such, we expect to return our capital back to the Government of Alberta – in a timeframe consistent with the life of a VC fund. As a result, the Province benefits not only from the potential return on our VC fund investments, but also in the creation of a local VC industry with resident professionals who support the creation of a diversified economy.
In compliance with our governing legislation and agreement with the Ministry of Economic Development and Trade (EDT), we are working to fulfill our mission and mandate through investment as a Limited Partner (LP) in Venture Capital funds that meet the criteria outlined in our investment policy, and through targeted initiatives to support, grow and nurture the local VC industry. We do not invest directly in Alberta companies, but in VC funds that have a track record of success, strong global networks and a demonstrated commitment to the Province of Alberta.
What makes Alberta Enterprise unique is our investment model. The capital provided is invested, and as such, we expect to return our capital back to the Government of Alberta – in a timeframe consistent with the life of a VC fund. As a result, the Province benefits not only from the potential return on our VC fund investments, but also in the creation of a local VC industry with resident professionals who support the creation of a diversified economy.
in 32 Degrees II, the Accelerate Fund I and II, Avrio II and III, Azure III, Chrysalix III, EnerTech IV, iNovia III, McRock iNFund, Panache 2018, Relay III, Yaletown II and Yaletown Growth Fund.
invested by Alberta Enterprise has resulted in almost $4 of investments back into Alberta companies.
35 ALBERTA COMPANIES SUPPORTED
OVER 1,300 DIRECT JOBS CREATED
Alberta Enterprise has committed $150 million1 for investment in 32 Degrees II, the Accelerate Fund I and II, Avrio II and III, Azure III, Chrysalix III, EnerTech IV, iNovia III, McRock iNFund, Panache 2018, Relay III, Yaletown II and Yaletown Growth Fund. In turn, these funds contribute to our economy – and most importantly – provide the essential capital Alberta companies require to successfully bring their products and ideas to market.
Our investments have resulted in seven new and five expanded VC offices in the province. This is greatly increasing the number of VC professionals actively at work in Alberta.
Alberta has long been reliant on the fortunes of our resource-based economy. Economic diversification helps shield the province from the familiar boom and bust cycles, opening the door to new industries and employment opportunities. Our funds invest in technologies which diversify the Alberta economy. This includes Internet and Communication Technology, Clean Technology, Energy Technology, and Life Sciences (including value added agriculture and food technology).
By investing strategically we have leveraged our $150 million1 capital commitments into >$1.2 billion (8.7:1 leverage). These investments have also extended our ecosystem by forging connections to >200 other Limited Partners, >480 portfolio companies, and >400 VC firms. We have co-invested with companies such as Dell, Citrix, Cisco, Shell, Total, Fortum, SABIC, and Newalta to mention a few.
Our VCs and their partners have already invested over $400 million in 35 Alberta technology companies, creating more than 1,300 direct jobs in Alberta. Every $1 invested by Alberta Enterprise has resulted in almost $4 of investments back into Alberta companies. The amount of investment in Alberta companies has increased by more than five times in the last five years, and is expected to grow significantly over the 10-year life of these funds.
Our VCs have already had 13 profitable exits, resulting in distributions of more than $18 million to Alberta Enterprise. The value of the investments plus distributions received to date exceeds the capital called for investments and management fees, which indicates a positive return on the portfolio.
Already, the results of our efforts are being realized. In the years since Alberta Enterprise Corporation was created in 2008 a renaissance in Alberta’s tech ecosystem has begun. Alberta Enterprise has been instrumental in providing advice, guidance and strategic support to the ecosystem, and our efforts are seen as critical to the VC industry’s success.
The value of our investments is expected to grow significantly over the years to come, while also generating more investments in Alberta companies as well as creating more knowledge based jobs in the province.
(1) Including $50 million of commitments payable in US dollars and $90 million payable in Canadian dollars.