The Edmonton Region’s tech sector is experiencing unprecedented growth, solidifying its position as a thriving hub for technology. Despite a decline in global and national investment, Alberta’s tech market has remained strong and continued to demonstrate leadership. According to the 2023 Canadian Venture Capital Private Equity Association fourth-quarter report, at the end of 2023, Alberta’s five-year growth rate for venture capital dollars invested reached an impressive 48.5 percent, which was more than triple Canada’s compounded average growth rate of 13 percent.
The growth rate of the province has resulted in Alberta investing $707 million across 86 deals, which is consistent with the province’s record-breaking year of 2022. In contrast, Canada saw a 31 percent decrease in investments in 2023. Over the past five years, technology companies based in Alberta have been able to secure more than $2.7 billion in venture capital funding, which has led to the creation of thousands of job opportunities for Albertans.
In 2023, the Edmonton Region secured the fifth position nationally for the number of deals. The Edmonton Region attracted investments worth $188 million in 21 deals, marking a 324% increase from the previous year’s investments of $58 million.
Overall, Alberta received 10.3 percent of the total investment dollars invested in 2023 and 13 percent of the venture capital deals that took place in Canada.
The Edmonton Region’s technology and innovation sector continues to grow and make steady contributions to the province’s economy. In the fourth quarter of 2023, venture capital investments in the province increased by 35% for dollars invested and 19% for deals closed compared to the previous quarter. In the last quarter of 2023, 25 deals were closed, valued at a total of $173 million. This upward trend in venture capital investments reflects the confidence that investors have in Alberta’s tech sector and its potential for future growth.
Quotes
“With a thriving ecosystem that fosters innovation and attracts top talent, the Edmonton Region was ranked as North America’s fastest-growing tech ecosystem – and we’re just getting started. The Edmonton Region is leading in clean technologies and is a global leader in artificial intelligence and machine learning, which is helping to further fuel this growth. The Edmonton Region is where startups, scaleups and larger companies come to thrive.”
“While Canada as a whole experienced significant declines, Alberta remained strong. We are a key player in Canada’s venture capital landscape, driving growth across all sectors.”
“(The Edmonton Region) tripling of venture capital investment in 2023 highlights our city’s position as a dynamic tech hub within Alberta’s thriving innovation ecosystem, reaffirming our role in driving technological advancement and economic growth across sectors. It is the relentless pursuit of solutions by local innovators, supported by the Government of Alberta, that not only attracts significant investment but also propels our city to the forefront of Alberta’s tech revolution and fosters job creation.”
