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April 24, 2008
New Act sets next generation economy in motion
Alberta Enterprise Corporation Act introduced to spur venture capital investment in knowledge-based economy
Edmonton ... Alberta has sent a signal to global investors by announcing the Alberta Enterprise Corporation Act, a cornerstone of Alberta's plan to diversify and sustain the provincial economy.
Bill 4 will establish the Alberta Enterprise Corporation, which will be independently managed, and mandated to develop a locally managed venture capital industry specifically supporting knowledge-based companies in Alberta, while improving access to early stage venture capital.
"Welcome to Alberta's next century," said Premier Ed Stelmach. "This $100-million investment is one of many steps we are taking to build on our strengths and to steer Alberta's economy in a new direction as a demonstrated leader in the next generation global economy. Alberta’s plan includes a future where our children will fully participate in tomorrow’s global industries.”
"Nowhere else in the world are conditions better for a corporation like this to be successful," added Alberta Advanced Education and Technology Minister Doug Horner. "Our starting point is a robust economy, a competitive tax environment, a burgeoning science and technology sector and an unparalleled entrepreneurial hub."
$100 million has been allocated to the fund through Budget 2008 to co-invest in a number of early stage capital funds focused on areas including information and communications technology, life sciences, green technology and nanotechnology.
The Alberta Enterprise Corporation will be one of the pillars of Alberta's plan to attract global expertise and resources in order to bring technology to the market faster and more economically. Alberta's technology commercialization action plan, to be unveiled later this year, will also be supported by an innovative science and research tax credit as well as targeted new entrepreneurial supports and awareness programs that benefit value-added and technology-based businesses. The Alberta Enterprise Corporation will invest in several different investment funds as one of a number of limited liability partners in these investment funds. The Alberta Enterprise Corporation is expected to begin operations later this year.
For more information on the Ministry of Advanced Education and Technology's priorities on technology in Alberta, visit www.advancededandtech.gov.ab.ca.
Attachments: Backgrounder attached
Media inquiries may be directed to:
| Donna Babchishin Alberta Advanced Education and Technology 780-422-1562 |
To call toll free within Alberta dial 310-0000.
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Alberta Enterprise Corporation Act
What is the new Alberta Enterprise Corporation?
The Alberta Enterprise Corporation will be managed independently by its own expert Board, selected for their expertise in targeted areas, allowing them to choose investment funds wisely. The Alberta Enterprise Corporation will be mandated to develop a locally managed venture capital industry supporting knowledge-based companies in Alberta and providing improved access to early stage venture capital opportunities.
When will the Alberta Enterprise Corporation be up and running?
The Alberta Enterprise Corporation will be operational later this year.
How will the Corporation work?
With the mandate of managing investment funds locally and targeting investments in priority, under-served sectors including life sciences, information and communications technology, environmental technologies and nanotechnology, the Corporation will make investments across a number of funds under the management of General Partners.
Does Alberta need more venture capital?
Studies show many knowledge-based companies in Alberta face challenges in raising investment capital, in spite of the large amounts of capital available in the province. This is primarily due to the absence of a community of experienced technology investors. Measures to begin moving capital into these under-served areas of the market are necessary. With improved access to capital, companies can spend less time raising capital and more time developing the technology, product and market plans. Companies will be better able to meet cash flow requirements and increase their ability to implement effective marketing and business plans, improved product development, and increased speed to market.
Who is the Minister Responsible for the Alberta Enterprise Corporation?
The Alberta Enterprise Corporation is accountable to the Minister of Advanced Education and Technology.
Media inquiries may be directed to:
| Donna Babchishin Director Communications Alberta Advanced Education and Technology 780-422-1562 |
To call toll free within Alberta dial 310-0000.
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