Sprout nets $2.5M investment from AEC

Alberta Enterprise Corporation (AEC) is investing $2.5 million into Alberta-based Sprout's nearly $14 million second fund, providing a new source of seed capital to Western Canadian B2B software startups.

"As the first institutional investor in Sprout, we are committed to supporting Alberta-based fund managers and building local venture capital talent right here at home," Kristina Williams, CEO of Alberta Enterprise Corporation, said in a statement. "Sprout's team of accomplished founders and operators are highly engaged in Alberta's startup ecosystem, and it's great to see them anchor their venture capital platform here in Edmonton, Alberta."

Sprout, which was founded in 2018, is an early-stage venture and mentor capital firm.

"Closing an investment and getting support from Alberta Enterprise is a testament to the strength of our team and the potential of our portfolio companies," Kristina Milke, general partner at Sprout, said in a statement. "Already we have invested in seven more promising businesses with our second fund. We are excited to work together with AEC as we continue providing essential mentoring and early-stage investment to the next generation of innovative startups."

The company is led by Milke, Mark Benning, and Shaheel Hooda.

The company said it has provided seed capital from its two funds to 17 diverse startups in industries ranging from proptech to energytech across Western Canada.

Among those companies is Alberta startup Truffle, a restaurant management platform that equips food providers to easily and affordably add delivery and pick-up services without more staff. There’s also EZ Ops, which provides workforce optimization technology to improve productivity and profitability for oil and gas operations teams.

AEC promotes the development of Alberta's venture capital industry by investing in venture capital funds that finance technology companies. It focuses on funds that have a strong commitment to Alberta – including a full-time presence in the province.

AEC has so far committed $332 million for investment to 31 venture capital funds. "As we look to build sustained growth for our technology sector, we need to stand up local Alberta-headquartered funds even as we work to attract international investment to help our startups to scale," Nate Glubish, the province’s minister of technology and innovation, said in a news release. "We need a strong homegrown foundation to equip Alberta businesses to start here, grow here, and continue hiring here."