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By rdnewsNOW staff

Tech Sector Growth

Provincial officials say Edmonton tripled venture capital investment in 2023

Feb 23, 2024 | 3:20 PM

The provincial government says Alberta’s tech sector continues its strong momentum, with Edmonton seeing its strongest growth ever, proof that Alberta remains a hot tech market.

As global and national investment have declined, provincial officials say Alberta has remained a strong tech market and is showing continued leadership, as shown by Pitchbook ranking Calgary as the 12th fastest-growing tech ecosystem in the world and LinkedIn ranking Calgary as one of the best places to hire and recruit tech workers.

At the end of 2023, the provincial government says Alberta’s five-year growth rate for venture capital dollars invested reached an impressive 48.5 per cent, more than triple Canada’s compounded average growth rate of 13 per cent, according to the 2023 Canadian Venture Capital Private Equity Association fourth-quarter report.

Officials say the province’s growth rate means Alberta finished 2023 with $707 million invested over 86 deals, in line with Alberta’s 2022 record-breaking year. In contrast, Canada ended the year with a 31 per cent decline in investments. Over the past five years, the government says Alberta technology companies have secured more than $2.7 billion in venture capital funding across 350 deals, creating thousands of jobs for Albertans.

“While Canada as a whole saw massive declines, Alberta has held steady. We are a major venture capital player in Canada, as technology drives growth across all sectors,” says Nate Glubish, Minister of Technology and Innovation.

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According to provincial officials, Alberta’s two largest cities continued to attract investment dollars in 2023, with Calgary and Edmonton coming in fourth and fifth respectively for number of deals, with $501 million invested in 64 deals in Calgary and $188 million invested in 21 deals in Edmonton. The government says Edmonton saw a 324 per cent increase from $58 million in 2022 to $188 million in 2023. In total, the government says Alberta captured 10.3 per cent of dollars invested in 2023 and 13 per cent of venture capital deals in Canada.

“Edmonton’s tripling of venture capital investment in 2023 underscores our city’s position as a dynamic tech capital within Alberta’s thriving innovation ecosystem, reaffirming our role as a powerhouse driving technological advancement and economic prosperity across diverse sectors,” says Launa Aspeslet, interim chief executive officer, Edmonton Unlimited. “It is the local innovators’ relentless pursuit of solutions to real-world problems, with the continuing support of the Government of Alberta, which not only attracts significant investment but also propels our city to the forefront of Alberta’s tech revolution and fosters job creation for our community.”

“At Platform Calgary we are working with our partners to continue this momentum by linking up high potential tech startups with the investors that can help them take their businesses to the next level,” adds Terry Rock, president and chief executive officer, Platform Calgary. “The evidence is clear, Alberta is emerging as one of the most exciting and resilient tech ecosystems in the world. Together with our growing tech community, we can secure Alberta’s position as the best place in the world for anyone to launch and grow a tech business.”

Alberta’s government says the province remains a growing market for the technology and innovation sector, and the government celebrates its steady contribution to the Alberta economy, including in the fourth quarter of 2023.

According to provincial officials, the end of last year saw venture capital investments in the province increase by 35 per cent for dollars invested and 19 per cent for deals closed compared with the third quarter. There were said to be 25 deals closed valued at a combined $173 million in the fourth quarter of 2023.

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