AEC invests $7.5M to help Alberta tech startups access US capital and markets

Alberta Enterprise Corporation’s (AEC) latest investment is expanding access to US capital for local startups.

AEC, which invests in venture capital funds that finance Alberta technology companies, has invested USD $7.5 million into Alpaca VC to provide early-stage capital to companies in the province that are focused on proptech, construction tech, fintech, foodtech, agtech, supply chains, and marketplaces.

"A large portion of the startups in Alberta fit within Alpaca's investment focus, and an investment from Alpaca into these companies opens up access to US capital and markets," said Kristina Williams, CEO of Alberta Enterprise Corporation, in a statement. "Connecting local startups with the experience, connections and capital of the Alpaca team provides a real growth advantage."

Alpaca, a New York-based venture capital firm, is targeting USD $75 million for its third fund.

Since its founding in 2013, Alpaca said it has invested in more than 80 startups, including Alberta-based Placeholder, a marketplace for warehouse space. After evaluating dozens of the province’s technology companies, Alpaca said it sought investment from Alberta Enterprise to participate in the promise and investment returns of the local startup community.

"Our assessment of local technology companies in areas like PropTech, Supply Chain and FinTech has shown the promise of Alberta startup founders and their growth plans," said Alex Morley, senior associate of Alpaca VC, in a statement. "We look forward to being a catalyst in many Alberta success stories."

Alpaca's team is led by US-based partners Ryan Freedman, Aubrie Pagano, David Goldberg, and Daniel Fetner. Alpaca recently hired Calgary-based Alex Morley as senior associate to support the discovery of Alberta startups. Morley has venture capital investment experience from BDC and District Ventures.

"Our goal is to equip Alberta businesses to stay local but expand global," said Nate Glubish, Alberta minister of technology and innovation, in a news release. "One way to do that is to tap into capital and investment talent from beyond our borders. With Alpaca's investment, more Alberta businesses can build larger businesses here, hire more people here, and reach new markets, right from Alberta."

Since AEC was created by the government of Alberta in 2008, it has connected provincial inventors, innovators, and entrepreneurs to money, markets, and mentors by fostering a thriving venture capital industry in the province. It manages a fund which, through venture capital partners, invests into technology and innovation companies.

AEC said it has invested $1.05 billion into Alberta technology companies, created 2,800 direct jobs in the province, and supported 72 companies.

According to AEC, Alberta is home to 1,373 technology companies and it has the most high-growth companies in Canada—five percent of companies in the province are classified as high-growth, in terms of employment.