Alberta Enterprise Corporation invests $15 million into its fourth Accelerate Fund for tech startups
AEC expands early-stage funding to improve the success rate of Alberta startups, launching Accelerate Fund IV under the continuing management of Yaletown Partners
EDMONTON, AB, Dec. 10, 2024 /CNW/ - Alberta Enterprise Corporation (AEC) announced today that it has launched a fourth early-stage angel co-investment fund, Accelerate Fund IV, with a $15 million anchor investment. Building on the success of the Accelerate Fund program started in 2012, Accelerate Fund IV will provide Alberta technology entrepreneurs focused in life sciences, digital transformation, and artificial intelligence and other emerging opportunities with a continued source of startup capital. Accelerate Fund IV will be managed by Yaletown Partners, the same investment team that oversaw Fund II and Fund III.
"As an anchor investor in the Accelerate Fund since 2012, AEC has supported investment in 46 Alberta-based technology companies, helping those teams to grow their business from the pre-seed or seed stage to the next critical milestone or stage of investment," commented Kristina Williams, CEO Alberta Enterprise Corporation. "The Accelerate Fund has been fundamentally important to the Alberta tech ecosystem, increasing the odds of startup success, fostering job creation and helping to mature the venture capital landscape in our province."
Speaking about the Fund IV launch, Minister of Technology and Innovation, Nate Glubish added, "We are making Alberta a top destination for technology investment and talent. Many of North America's leading venture capital funds now have representatives in Alberta, and we're welcoming record numbers of founders, software engineers, and other talent from across Canada and internationally to build technology businesses here. With this latest deployment of capital, we invite early stage tech companies to stay and grow here, and to expand Alberta's technology jobs and innovation."
The Accelerate Fund series was established by AEC to encourage more private capital investment into Alberta's emerging technology sector. For startups to access Accelerate Fund investment, private angel investors need to be willing to invest equal or greater amounts into the investment round. This co-investment approach has had a significant impact. For every dollar invested by Accelerate Fund, 10 times that amount has been invested by angels, family offices and institutional investors. That cumulative investment into Alberta technology startups, at an early and critical stage of their growth, helps companies to expand their revenues and expand their teams beyond having a product in market and some early customers.
Accelerate Fund investments, including into SamDesk, StellarAlgo, DrugBank, PayShepherd, Userful, Virtual Gurus and Helcim, are helping Alberta tech companies to scale and graduate to the next rounds of funding. Successful exits from the Accelerate Fund portfolio include Passportal and Decisive Farming.
"As we managed Fund II and Fund III we discovered, life sciences, digital transformation, and artificial intelligence are areas where Alberta has standout strengths in technology innovation," said Arden Tse, Investment Manager Accelerate Fund II, III and IV, Yaletown Partners. "We're excited to attract the next critical mass of investors needed to join us in backing the most promising companies that will shape the future of health and modern industry."
Accelerate Fund IV will be supported by four members of Yaletown Partners: Arden Tse, Yasmine Al-Hussein, Brad Johns and industry-advisor, Neil Frizzell. Managing Fund II and Fund III, the team has continued to actively participate in Alberta's technology community by speaking at or attending hundreds of events, key North American conferences, and maintaining active mentorships with entrepreneurs including through Alberta Female Founders, Fortifiers, and Funders which strives to foster a more diverse and inclusive technology industry.
About Alberta Enterprise Corporation (AEC): www.alberta-enterprise.ca
Alberta Enterprise Corporation (AEC) promotes the development of Alberta's venture capital industry by investing in venture capital funds that finance technology companies. AEC focuses on funds that have a strong commitment to Alberta – including a full-time presence in the province. In addition to financial capital, AEC supports Alberta's venture capital ecosystem by connecting investors, entrepreneurs, and experienced technology executives who share our passion for building a bright, innovative Alberta. As of December 2024, AEC has committed C$415 million for investment to thirty-nine venture capital funds, covering a diverse range of forward-looking industries including information technology, energy and industrial technology, and life sciences.
About Accelerate Fund IV: www.acceleratefund.ca
Accelerate Fund IV is an early-stage co-investment fund that invests in Alberta-based pre-series A companies that are focused on life sciences, digital transformation and artificial intelligence and other emerging opportunities. We co-invest in financing rounds alongside angel investors, family funds and foundations and will typically invest up to $500,000 on the same terms and conditions as private investors. If you are a private Alberta company with proprietary technology, some customer traction and revenue, and more than half of your employees based here, consider us as a potential investor. For more information please contact [email protected].
About Yaletown Partners: www.yaletown.com
Yaletown Partners is a leading Canadian venture capital fund manager that invests in the technologies digitally transforming traditional industries by prioritizing climate-resilient growth. Backed by leading institutional investors, including pension funds, and a network of successful technology entrepreneurs, Yaletown has offices in Vancouver, Calgary, Edmonton, Toronto, Montréal, and San Francisco.
SOURCE Alberta Enterprise Corporation
Media Contact: Alberta Enterprise Corporation +1 587-402-6601, [email protected]; Media Contact: Accelerate Fund IV, Claudia Moore, Claudia @ materialinsight.com
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