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By rdnewsNOW Staff

Comments On Annual Report

Minister Schweitzer highlights venture capital investment in Alberta

Mar 2, 2022 | 1:42 PM

Minister of Jobs, Economy and Innovation, Doug Schweitzer, issued the following statement Tuesday in response to the Canadian Venture Capital and Private Equity Association annual report:

“Venture capital investment in Alberta continues to break records. Our province’s venture capital industry has had three straight years of incredible growth, with 2021 far outpacing 2019 and 2020 with a total of $561 million in deals. Compared with last year, overall venture capital investment into Alberta was up by 15.7 per cent and the number of deals increased by 64.2 per cent.

“We’re seeing increasing investment not only in our information and technology sector but also in our life sciences sector. Investments in these industries help strengthen Alberta’s position as a hub for innovation, helping to create jobs, boost diversification and drive further investment to the province.

“Every investment in Alberta-based tech companies also brings more jobs. Homegrown tech companies like Jobber, Benevity and Symend are hiring, as are the larger companies that are expanding into our province, like Infosys, HCL Technologies and Mphasis. This job growth is apparent, as Edmonton is cited as a top-three city in the country for VC-supported employment. The city has been named the fastest-growing city for tech in North America and these numbers from the Canadian Venture Capital and Private Equity Association (CVCA) reinforce that reality.

“Alberta is becoming a major player on the global tech stage. Both Edmonton and Calgary’s tech sectors are seeing significant growth, with Calgary ranked the fourth-highest city in the country for VC investment in 2021. From Amazon Web Services’ multibillion-dollar investment in a new cloud computing operation in Calgary to tech giant Infosys, our province is attracting major investments from major companies.

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“Importantly, Alberta Enterprise Corporation (AEC) played a critical role in more than 40 per cent of the venture capital investments made in 2021. AEC helped secure deals such as funding for Calgary-based fintech startup PayShepard and StellarAlgo, a customer cloud platform for the sports and live audience industry. These investments show the significant impact that AEC’s equity financing has had on Alberta’s tech ecosystem.

“With the recapitalization of AEC and new policies that encourage innovation and investment, Alberta’s government is promoting a business-friendly environment that will continue to build on this success.

“In fact, earlier this year we announced a $31.2-million investment from the AEC to invest in venture capital funds to ensure more startups and entrepreneurs have access to the funds they need to grow their business.

“Alberta’s Recovery Plan has helped put our province back on a path to growth. I’m confident that we will continue to see even more private investment coming into the province this year.”

NDP Economic Development and Innovation Critic Deron Bilous issued this statement in response to the Canadian Venture Capital and Private Equity Association annual report:

“While we see venture capital investment increase across the country, it’s concerning to see the province continue to lose ground to other jurisdictions in Canada.

“Last year, there was $14.2 billion in investment across the country. Ontario, British Columbia, and Quebec led the way with $7.4 billion, $2.9 billion, and $2.8 billion in investment respectively.

“These investments represent a 222 per cent increase across the country. Ontario had the largest increase at 270 per cent, while British Columbia saw a 224 per cent increase, and Quebec was close behind with 180 per cent.

“Meanwhile, Alberta attracted $561 million in venture capital investment – a 23 per cent year-over-year increase and four per cent of overall investment in the country.

“The UCP promised to make Alberta a leader in this sector, but other Canadian provinces are accelerating ahead of us. In order to make up for this lost ground, we need to restore competitiveness by reinstating tax credits cancelled by the UCP. More importantly, we need to create a venture fund to invite Albertans to invest directly in our tech sector that will attract investment, diversify our economy, and create jobs.”