Alberta Technology posted about the recently formed Alberta Enterprise Corporation( AEC) February of this year; see “What to do with $100 Million?”
One of the questions we posed in February was;
How much of the money actually winds up in Alberta deals or companies?
AEC announced investments of $15 million USD and $14 million CAN to two Vancouver based venture capital funds in press releases on the AEC website May 18 of this year . One of the conditions is that the funds open an office in Alberta. According to a quote in one of the press releases the recipient will be doing that and references a single employee:
The opening of our new office in Calgary and recruitment of a full-time, Alberta-based investment professional, demonstrate our desire to leverage Alberta’s tremendous energy industry expertise and our confidence in the growth opportunities in the sector,” said Michael Walkinshaw, Managing Director and CFO, Chrysalix.
Also according to information provided by AEC;
AEC does not require the venture capital partners receiving matching funds to invest in Alberta based deals.
So, correct me on this if I have it wrong; to support economic diversification in Alberta, we’re sending $30 million in Alberta taxpayers money to two venture capital funds in Vancouver. The BC venture capitalists will open offices with at least an employee in Alberta. There is no requirement to invest in Alberta based deals.