Alberta technology sector sees 48% increase in companies headquartered in the province

Alberta Enterprise Corporation 2016 Deal Flow Study data shows significant growth and ongoing maturation of the provincial technology market

EDMONTON, Sept. 28, 2016 /CNW/ - Alberta Enterprise Corporation released the findings from the 2016 Deal Flow Study, which showed significant growth for the technology sector in Alberta. The data revealed that the sector has experienced a 48% increase in technology companies with headquarters in Alberta, growing from 927 to 1,373 over the past four years. Both the major cities have benefited from this growth. Calgary saw a 55% increase in technology companies located in the city, and Edmonton had a similar upsurge with a 39% increase.

The 2016 Study demonstrates that not only has the industry expanded, but so have company revenues. Today, one in five Alberta technology companies reported having over $1 million in annual revenue. Fundraising has also matured. One third of the companies surveyed have raised over $1 million, and ten percent have secured a Series A funding round. In addition, the knowledge base of tech entrepreneurs in Alberta continues to evolve, seven out of every ten technology companies surveyed for the study include at least one founder with previous startup experience.

"These are very positive findings for the sector and Alberta," commented Kristina Williams, CEO of Alberta Enterprise Corporation. "The gains indicate that our technology industry is growing at a steady pace, and that it is helping to drive diversification within the provincial economy. In these difficult economic times, diversification is crucial to stimulating business growth."

Along with the overall growth of the technology industry in Alberta, the data shows that there is a good mix of sectors represented. Clean and Energy tech, industrial hardware & materials, and software all experienced significant growth from 2012 to 2016. The software sector made the most gains, growing 61% from 456 companies in 2012 to 735 today.

This latest study comes at an encouraging time for the provincial technology industry as the Government of Alberta has announced a number of initiatives to support the ongoing expansion and support of the sector. These include $1.5 billion allocated to ATB Financial to stimulate small business growth, $500 million dedicated to AIMCo for investment in growth companies, an increased commitment to Alberta Enterprise Corporation of $75 million, a 30% investor tax credit, and the small business tax rate cut from 3% to 2%.

For more information and to read the 2016 Deal Flow Study visit www.alberta-enterprise.ca.

About Alberta Enterprise: www.alberta-enterprise.ca 

Alberta Enterprise promotes the development of Alberta' venture capital industry on behalf of the Government of Alberta by investing in Venture Capital funds that finance early stage technology companies. Alberta Enterprise focuses on funds that have a strong commitment to Alberta – including a full-time presence in the province. The organization also supports Alberta's technology ecosystem by connecting investors, entrepreneurs, and experienced technology executives who share our passion for building a bright, innovative Alberta.

Since its inception, Alberta Enterprise has committed $105 million of the $175 million Alberta Enterprise Fund for investment to nine venture capital funds and the Accelerate Fund, covering a diverse range of forward-looking industries including clean and energy technologies, information and communications technologies, life sciences, and agriculture and food.

Alberta Enterprise's funds and their syndicate partners have invested over $315 million in 29 Alberta tech ventures. The corporation's investments in funds have generated almost four times the capital back into Alberta companies, and the investment value continues to grow incrementally. The Alberta Enterprise Fund is a strategic investment that continues to foster the growth of the technology sector and a diversified economy in the province of Alberta.

About the 2016 Deal Flow Study: http://www.alberta-enterprise.ca/?page_id=1150 

Alberta Enterprise commissioned the 2012, and 2016 Alberta Deal Flow Studies to address a critical knowledge gap identified in the technology sector. The 2016 Alberta Deal Flow Study is a collaborative effort, including data from over 50 stakeholders who promoted the survey.

SOURCE Alberta Enterprise Corporation

For further information: Editorial Contact:+1 780 392 3901, info@alberta-enterprise.ca

RELATED LINKS
www.alberta-enterprise.ca

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890