Venture Capital (VC) Funds – A Proven Investment Model for the Tech Sector
Alberta Enterprise Corporation (AEC) was established to develop a Venture Capital (VC) Industry in Alberta. It is a proven model that is well suited to the technology sector, where the high degree of risk requires a different approach to investment.
VC funds invest in technology companies that align with their strategic focus, sector expertise, growth targets and which have the greatest ability to provide ROI for investors. Investors evaluate potential investments based on several key criteria:
- Sector Fit: Is the company operating in the technology and innovation space?
- Stage of Development: What is the age and maturity of the venture?
- Scalability: Can the venture scale quickly into a large business?
- Differentiation: Does the company possess unique intellectual property or a defensible competitive advantage?
- Exit Potential: Is there a clear path to a successful exit, typically within 3 to 7 years, that can deliver strong returns?
Understanding how venture capital works is just the beginning. To help you explore potential funding opportunities, we’ve compiled a list of active VC funds and investors that operate in Alberta, across Canada, and beyond. These include:
- VC Funds AEC has invested in
- Active VC investors in Alberta
- Active Venture Capital (VC) and private equity (PE) investors in Canada
- Active VCs in the US
Other Sources of Capital
Angel Syndicates
- Startup TNT is an angel investment group that hosts multiple investment summits per year and believes having fun together is the starting point for a resilient, innovation-driven economy.
- Valhalla Private Capital is a full-service corporate finance firm that started with a single city angel investor group, Valhalla Angels, in 2003 and has grown organically to meet the entire lifecycle needs of both businesses and investors across the globe.
- HaloHealth is a physician exclusive angel investment group that advises, connects, and invests in disruptive healthcare ventures.
Non-Dilutive Funding in Alberta
Non-dilutive funding, such as grants, tax credits, and government programs, can be a valuable part of your capital strategy. These sources provide financial support without requiring you to give up equity, making them especially useful in early-stage growth.
- Alberta Innovates: A provincially funded agency supporting innovation in health, energy, environment, and emerging tech through grants and programs. Both AEC and Alberta Innovates report to the Ministry of Jobs, Economy and Innovation.
- Innovation Catalyst Grant (ICG): Supports recent STEM graduates with funding to pursue entrepreneurial ventures and contribute to Alberta’s innovation economy.
- Alberta Small Business Resources: A Government of Alberta portal offering financial support, startup guidance, and HR tools for small businesses.
- The Scientific Research and Experimental Development (SR&ED): The largest federal tax incentive program that encourages Canadian businesses to conduct R&D by offering credits on eligible expenditures.
- MITACS: A national not-for-profit organization that has designed and delivered research and training programs in Canada for over 20 years, working with 70 universities, thousands of companies, and federal and provincial governments to build partnerships that support industrial and social innovation in Canada.
- Prairies Economic Development Canada (PrairiesCan): A federal department promoting business growth and economic diversification across Alberta, Saskatchewan, and Manitoba. They work with businesses, communities, not-for-profits, entrepreneurs, and innovators to diversify local economies and improve quality of life for all residents.
- The Industrial Research Assistance Program (IRAP) is a federal funding program designed to accelerate the research and development projects of Canadian innovators. It provides advisory services, funding, networking and linkages, and youth employment programs to SMEs across Canada.
- Emissions Reduction Alberta (ERA): Invests in clean technology solutions that reduce greenhouse gases (GHGs), lower costs, attract investment, and create jobs in Alberta.
Debt Financing
Debt financing provides operational capital through many forms such as SR&ED financing, mezzanine debt, operating lines of credit, etc. Most major Canadian banks (e.g., RBCx, Scotiabank Roynat, National Bank, ATB, BDC, TDIP) offer divisions focused on technology and knowledge-based businesses. Specialized firms like Boast Capital, Espresso Capital, and Venbridge also serve startups and scale-ups with products including venture and SR&ED financing.