Canadian startups have seen slower VC funding in 2022-2023 thus far — but Alberta is a different animal. The Sunshine Province was one of the few to see a year-over-year increase, with a record $729 million in VC capital invested in 85 deals in 2022.
This won’t come as a surprise to the Albertan business owner. After all, the country’s lowest corporate income tax and nonexistent provincial sales tax attract entrepreneurs every year — over 4,000 just in February 2023. Plus, the province offers attractive incentives for immigrants to start businesses, with programs like the Foreign Graduate Entrepreneur Stream and Rural Entrepreneur Stream.
2023 is a confusing year in the tech world, with simultaneous tech skill shortages and layoffs. Despite those realities, Alberta tech companies have attracted more and more investments each year. Calgary is a fresh face on the latest roundup of cities that have become tech hubs, with a 400% increase in tech investment in certain neighbourhoods over the last few years.
Of course, the dollars invested in Alberta projects still don’t come close to tech powerhouses Ontario, British Columbia, and Quebec, who made up 88% of VC investments. These three provinces saw a wild $4.7 billion (Ontario), $2.5 billion (Quebec), and $1.6 billion (B.C.) in VC investments. Still, Alberta’s proportion of growth is staggering, as the province broke records for VC investments for five years straight.
Additionally, some of Alberta’s tech companies have brought in impressive funding this past year. Neo Financial secured a whopping $185 million in VC funding in early 2022. On top of that, Edmonton saw the biggest VC investment in the city’s history: $100 million for software company Jobber, an operations management software for small home-service businesses.
Learn more about Jobber’s latest VC investment, the biggest in Edmonton’s history.
