Is it worth cooperating with partners or investors?

The decision to bring in partners or investors is one of the most critical moments in the life of any entrepreneur. In Calgary's dynamic business environment, where the technology sector is booming and growing at over 30% annually, this issue is particularly relevant. On the one hand, a partnership can provide quick access to the capital, expertise, and networks needed to scale a business. On the other hand, it carries the risks of losing control of the company, having to share profits, and potential conflicts of interest. In this detailed article, we will look at all aspects of cooperation with partners and investors in the context of the Calgary business ecosystem, analyze the advantages and disadvantages of each approach, and provide practical recommendations for entrepreneurs facing this difficult choice.

Current state of the Calgary investment environment

Calgary is currently experiencing a real renaissance as a technology hub. According to the Global Startup Ecosystem Report 2025, the city ranks third among Canadian cities in terms of venture capital and number of deals, with $346 million in investments through 33 deals in the first half of 2024 alone. This represents an increase of $118 million and three additional deals compared to the same period last year. For the first time, Calgary has surpassed Vancouver in these metrics, demonstrating the dynamic development of the city's investment ecosystem.

The value of Calgary's startup ecosystem is $6.7 billion, reflecting 13% growth since 2023. The city ranks among the top 30 ecosystems in North America and the top 50 growing ecosystems in the world, receiving high marks for talent availability and return on investment for startups. Calgary ranks in the top 10 in North America for talent availability and is among the top 15 ecosystems in the world for value for money, meaning that startups here achieve more growth for every dollar spent.

Achievements in key sectors such as cleantech, fintech, and agtech are particularly noteworthy. For example, the largest deal in Alberta in 2024 belongs to Calgary-based ClearSky Global, which raised $230 million from undisclosed investors. Such successes demonstrate the maturity of the local ecosystem and its ability to attract the attention of large investors.

Benefits of working with partners

Access to capital and resources

The most obvious advantage of partnership is access to financial resources. Calgary is home to numerous investment funds, such as Metiquity Ventures, which specializes in pre-seed investments and has already supported WaitWell, Cashew Research, and Quack with investments ranging from $300,000 to $450,000. Local Investing YYC has raised $2.32 million to invest in Calgary businesses that create a positive social and environmental impact.

Partners can provide not only cash, but also access to equipment, technology, office space, and other material resources. This is especially relevant for startups in capital-intensive industries such as biotechnology or clean technology.

Expertise and experience

Experienced partners bring accumulated knowledge, industry expertise, and an understanding of market trends to the company. Calgary is home to organizations such as Platform Calgary, Calgary Innovation Coalition, and Calgary Economic Development, which connect entrepreneurs with experienced mentors and investors. Such partners can help avoid common mistakes, speed up strategic decision-making, and provide access to industry best practices.

Network

Partners typically have extensive professional networks that can be invaluable for business development. The Calgary Chamber of Commerce brings together more than 2,000 member companies and offers more than 60 networking events each year. Partners can provide access to potential customers, suppliers, distributors, and even future investors.

Risk sharing

A partnership allows financial and operational risks to be shared among several parties. This is especially important for startups, where the risk of failure is high. If problems arise, partners can provide additional support or resources to overcome difficulties.

Complementary skills

The ideal partnership brings together people with different but complementary skills. For example, a technical founder may collaborate with a partner who has experience in marketing or sales. Such synergy can significantly increase the company's efficiency.

Risks and disadvantages of partnerships

Loss of control and autonomy

The most serious disadvantage of a partnership is the potential loss of control over your own company. Partners, especially investors, often demand a say in strategic decisions. In venture capital, this may include appointing representatives to the board of directors, vetoing certain transactions, or even replacing management.

Dilution of ownership

Each round of financing leads to dilution—a reduction in the founder's share in the company. At the pre-A stage, 70–80% dilution should be expected, and at the Series A and later stages, 50% dilution. Although dilution can be offset by an increase in the value of the company, founders should be prepared for a gradual reduction in their stake.

Conflicts of interest

Partners may have different visions for the company's development, which can lead to conflicts. This may relate to growth strategy, profit distribution, hiring, or even exiting the business. Without a clear partnership agreement, such conflicts can paralyze the company's operations.

Personal liability

In traditional partnership structures, each partner has unlimited personal liability for the debts and obligations of the partnership. This means that the partners' personal assets may be at risk in the event of financial difficulties for the company.

Complexity of management

Managing a company with multiple partners can be significantly more complex than running a business alone. It is necessary to coordinate decisions, hold regular meetings, report on results, and adhere to agreements between partners.

Difficulties with exit

Changing the composition of partners or exiting a partnership can be a complex and costly process. Valuing a share, negotiating exit terms, and restructuring the company can take months and result in significant expenses.

Alternatives to traditional partnerships

  1. Debt financing Instead of bringing in partners, companies may consider debt financing. The Business Development Bank of Canada (BDC) has an office in Calgary and offers loans to startups and small businesses. The advantages of debt financing are: retention of control, no dilution, and clearly defined repayment terms.

  2. Strategic alliances Enter into joint projects with other organizations without a formal partnership.

  3. Consultants and mentors Bring in outside experts instead of full partners. Organizations such as A100 Alberta and C100 offer access to experienced technology leaders.

  4. Grant funding Calgary Economic Development, Innovate Calgary, and government programs provide grants without requiring repayment or dilution of ownership.

Features of the investment process in Calgary

Due Diligence

The due diligence process includes:

  • Financial statements for the last 3–5 years
  • Company legal documents
  • Intellectual property information
  • Market and competition analysis
  • Business plan and financial projections

Typical deal structures

  • Seed: $50,000–$500,000
  • Series A: $1–5 million
  • Series B+: $5+ million

Legal environment

Alberta positions itself as the “Canadian Delaware” thanks to its flexible corporate legislation and favorable conditions for investors.

Sectors attractive for investment

  • Cleantech: carbon footprint management solutions.
  • Fintech: innovation in the financial sector.
  • Agtech: combining agricultural expertise with technology.
  • Aerospace: development of startups in the aerospace industry.

Practical recommendations

For founders

  • Clearly define your expectations from a partner.
  • Evaluate alternative financing options.
  • Conduct your own due diligence on partners.
  • Prepare professional documentation.
  • Take advantage of the resources of Platform Calgary, Calgary Chamber, and Calgary Economic Development.

For investors

  • Learn about the Calgary market.
  • Be prepared for long-term investments.
  • Collaborate with local organizations to better understand the ecosystem.

Future trends

The Calgary Innovation Strategy plans to create over 30,000 jobs in 3,000 new startups by 2031. Special attention will be paid to ESG criteria and sustainable development.

Conclusion

Collaborating with partners or investors in Calgary opens up great opportunities for growth but requires careful preparation. Founders must weigh the benefits of access to capital and expertise against the risks of loss of control and dilution. The right decision is based on a thorough analysis of business needs, risks, and long-term goals.