Varcoe: 'Bucking the trend': Despite Canadian tech sector downturn, Alberta sets another record for venture capital funding
Canada
Calgary
MEMBERS:
Platform Calgary
Calgary Innovation Coalition
Calgary Economic Development
With access to a community passionate about the environment and incredible resource extraction talent, starting and growing Summit Nanotech in Calgary was an obvious choice. We’re proud to be part of an ecosystem leading in clean technology.
Highlights
2022 was another strong year for Calgary’s innovation ecosystem. The city ranked fourth in investment attraction across Canada with 64 deals totalling $647 million, according to the Canadian Venture Capital & Private Equity Association, and increased its total VC investment 13% from 2021 to 2022. Several Calgary-based tech companies have achieved unicorn status, including Neo Financial, Benevity, and Shareworks by MorganStanley, and the CBRE’s Scoring Tech Talent Report found 40,600 people were employed in tech in Calgary in 2021. Calgary is also home to the highest number of corporate head offices per capita compared to other major cities in Canada.
The Platform Innovation Centre opened in June 2022, the first purpose-built hub for tech and innovation in the province. The new center brings together more than 100 partners offering startup support services and event space. In 2022, the Opportunity Calgary Investment Fund (OCIF), a $100 million fund to catalyze investment and drive innovation and transformative economic development, supported key ecosystem players including Combine Venture Builders, Avatar Innovations, Thin Air Labs, The51, and anchor companies IBM and Mphasis.
Ecosystem by the Numbers
NUMBER OF UNICORNS
(H2 2020 - 2022)
Sub-Sector Strengths
Cleantech
The Government of Alberta has committed CA$58 million ($42.2 million) in 10 Alberta-based companies to reduce greenhouse gas emissions by 4 million tons by 2050. Two Calgary-based Cleantech companies made the 2023 Global Cleantech 100 list — Carbon Upcycling Technologies and Eavor — and 15 local companies made the Foresight 50, a list of Canada’s most investable Cleantech companies. The Energy Transition Centre opened in November 2022, to support the development and commercialization of new energy technologies.
Fintech
Neo Financial broke the Canadian record for time to unicorn status after raising a $145 million Series C in May 2022, and was the top Canadian Startup on LinkedIn’s List of Top Canadian Startups 2022. EY announced Calgary as the location of its Finance Centre of Excellence. Symend has raised $151 million over 10 rounds, and alongside Helcim is cementing Calgary’s place as one of Canada’s hottest Fintech ecosystems. Digital Bank Calgary launched the Calgary Fintech awards in 2022 and continues to offer opportunities for Fintech startups.
Agtech & New Food
In 2022, Agriplay set up a showcase urban farm in downtown Calgary, and SVG Ventures THRIVE and Platform Calgary created the THRIVE Agrifood Innovation Digital Hub for Canada. The THRIVE Academy has also launched an Agtech pre-accelerator program. The51 created the $50 million women-led Food and Agtech Fund. Olds College is home to the Olds College Smart Farm, the Smart Ag Innovation Centre, and the Werklund Agriculture and Technology Centre. In April 2022, Verge Ag raised a $7.5 million Series A.
Reasons to Move Your Startup to Calgary
Low Cost of Doing Business
Albertans pay no provincial sales tax, no payroll tax or health premium, and have the lowest provincial corporate income tax rate in Canada. Calgary is the second most affordable major city in Canada, with incredibly affordable real estate compared to Vancouver and Toronto. In 2022, the Government of Alberta streamlined processes and reduced unnecessary duplication. The City of Calgary also has a department mandated to support local business.
Global Talent
Calgary has the fastest tech workforce growth in North America, according to 2022 LinkedIn Talent Insights. It ranked #28 in the Top 50 North American markets for the second consecutive year in CBRE’s 2022 Scoring Tech Talent report. Calgary is the second youngest and third most diverse city in Canada, with 41% of Calgarians identifying as a visible minority. The Alberta Advantage Immigration Program provides an entry pathway for immigrants.
Quality of Life
Calgary is a welcoming, inclusive, and vibrant city less than an hour from the Canadian Rocky Mountains. The Economist Intelligence Unit ranked it the third most livable city in the world, and #1 in North America in 2022. No doubt this has something to do with its access to large urban parks and the most extensive outdoor pathway and bikeway network in North America.
Selected Startup Organizations
Startup Genome Members
Key Ecosystem Players
A100
Alberta Enterprise Corporation
Alberta Innovates
Applied Research and Innovation Services - Southern Alberta Institute of Technology
Chiu School of Business - Bow Valley College
Innovate Calgary
Institute for Innovation and Entrepreneurship - Mount Royal University
Rainforest Alberta
Start Alberta
The Hunter Hub for Entrepreneurial Thinking - University of Calgary
Venture Capital Association of Alberta
Venture Mentoring Service of Alberta
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