companies tech alberta technology study albertas sector

techsuch May 9, 2021 0 Comments

Study of Alberta’s tech sector reveals surprising resultsThe emergence of new tech companies in the province of Alberta are making animpact on the provincial ecosystem, according to a recent study conducted byCalgary-based Alberta Enterprise Corporation (AEC).The study found that 432 new Alberta tech startups were established since2016, bringing the total number of technology companies with headquarters inour province to 1,238. These new companies make up 35% of the total number ofAlberta-owned and operated technology companies. It was also revealed thatfemale participation in the technology sector in Alberta is over twice thenational average1. In fact, 30% of tech companies in Alberta have a femalefounder or co-founder.According to Kristina Williams, President and CEO of Alberta Enterprise, thisis one of several insightful findings uncovered in the 2018 Deal Flow study.While Alberta’s tech sector is still considered in its early stages ofdevelopment, Williams noted the data shows it is maturing at a rapid pace. Infact, 70% of all Alberta tech companies surveyed are generating annual revenue(almost a 32% increase since 2016). Nearly one in four companies are earningmore than $1 million annually. The proportion of companies with 10 employeesor more has also increased by 38% since 2016.“The objective of this study is to provide stakeholders with a sharedunderstanding of the strength and make-up of technology companies acrosssectors, stages and regions in Alberta. I think the takeaway is that creatinga viable Alberta tech sector is a slow and steady process, but one that ispaying dividends,” Williams said.The 2018 Deal Flow Study reveals some interesting facts about the makeup,evolution and distribution of technology in the province, maintaining positivetrends from AEC’s last Deal Flow Study in 2016.Among other key findings: * 34% of Alberta technology firms are integrating Artificial Intelligence (AI) into their offering. * 23% of firms report over $1M in annual revenue. * 81% of capital funding raised by Alberta tech firms is from Calgary or Edmonton sources. * 27% is raised from other parts of Canada; 24% is from the US. * Alberta’s technology sector is largely concentrated in Calgary (767 companies) and Edmonton (394 companies), with 94% of companies operating in Alberta’s two largest cities. * There has been a 38% increase in companies with 10+ employees. * 63% of companies surveyed in 2018 report they have launched products. (Compared to 50% in 2016). * Among technology companies operating in Alberta, the most common are software companies (40%), followed by life sciences (13%), clean tech (11%), energy tech (10%), and industrial hardware and materials (9%) companies. * The average age of Alberta’s startup founders is 43. * 71% of founders have previous startup experience; 84% have a technical background.#### Smaller survey subset analyzes investment opportunityAs part of the broader study involving 1,238 participants, a smaller subset of208 respondents were surveyed on investment opportunities in Alberta’stechnology sector. Findings revealed Alberta offers significant early stageopportunity for tech investors, with 54% of companies surveyed at the Pre-Series A stage. 70% of Alberta tech companies surveyed are currently seekingfunding and 58% are intending to raise more than USD $500K in their next roundof financing.Williams noted that the 2018 Deal Flow study was made possible due to thecollective support from Alberta’s tech firms and numerous organizations thatmake up the Alberta ecosystem.“Our growing tech sector is creating a more sustainable, diversifiedtechnology industry in Alberta: one where home-grown innovation is encouraged,and technology entrepreneurs have greater access to capital. As a result,we’re seeing more and more Alberta tech firms ready to take on the world.”

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