Alberta Technology Deal Flow Study (Alberta Enterprise Corporation)

Summary

• Venture capital invested in Alberta technology companies grew 26% from $561 million in 2021 to $707 million in 2023.p.2
• The study identified 2,378 technology companies in Alberta in 2023, representing a net increase of 62 companies or 3% compared to 2021.p.6
• Calgary accounted for 63% (1,490) of identified companies, Edmonton represented 29% (687), and other Alberta regions accounted for almost 9% (201).p.6
• The Information and Communications Technology sector represents nearly 57% of companies, followed by Health and Life Sciences at 12.4% and CleanTech at 10%.p.6
• Female participation rose to 37% of surveyed companies having one or more female founders, compared to 30% in 2021.p.2
• A total of 32% of survey respondents have achieved profitability, including 17% achieving it in the last two years.p.44

Key insights

1. Alberta recorded a five-year compound average growth rate of 49% for dollars invested, significantly outperforming Canada's overall rate of 13%.p.2
2. Integration of Artificial Intelligence and Machine Learning in company offerings grew from 36% in 2021 to 46% in 2023.p.2
3. Business-to-business models dominate the ecosystem, with 85% of surveyed companies identifying as B2B.p.37
4. A total of 51% of surveyed companies expect to raise $1 million or more in their next round of funding.p.48
5. Equity remains the primary financing type used by 44% of respondents, followed by grants at 20% and hybrid instruments at 19%.p.49
6. Long-term exit expectations show 55% of companies planning an acquisition or IPO within five to ten years.p.51