INVESTMENT ACTIVITY IN 2022 The Financing Funnel
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make a pitch will not attract interest from angels. Of those that do attract initial interest, some will be reject- ed following a more detailed assessment. As a result, the majority of entrepreneurs who approach angel or- ganizations are unsuccessful in raising funding. Of the nearly 8,000 businesses who approached the 26 organizations that reported funding outcomes, 20% were selected for presentation to investors, a figure that has fluctuated over time but was identical to 2021. An- gels undertook due diligence on 40% of the businesses that were invited to present, ultimately investing in 88% of these businesses once due diligence was complete. Angels invested in 35% of the businesses that success- fully passed the initial screening, slightly up from 2021. This represents 7% of the businesses that initially ap- proached these organizations for funding, slightly high- er than in both 2020 and 2021 and fairly consistent with earlier years (Table 6). The biggest challenge for entre-
Funding Success Funnel FIGURE 9
100% (7,982)
Application
20% (1,584)
Presentation
8% (632)
Due Dilligence
7% (554)
Funded
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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