2023 Report on Angel Investing in Canada 121923W6

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Valuations 3.5

V aluations were lower than in 2021, reflecting the decline in investor sentiment in 2022, particularly in the second half of the year, compared with the eu- phoric level of sentiment in 2021 as economic activi- ty bounced back following the easing, and subsequent removal of the restrictions introduced in 2020 in re- sponse to the COVID-19 pandemic. The median valua- tion in 2022 was $4.5 million which is lower than in both 2021 ($5 million) and 2020 ($6 million). However, there is considerable variation in valuations (Figure 14A): 38% of investments were valued at $4 million or less (with

21% valued at $2 million or less), with 54% valued at $6 million or less, while just over one-third (35%) of invest- ments were made at valuations of $10 million or above. In comparison with 2021, in 2022 there was both a high- er proportion of investments at $4 million or less and at $10 million and above, and fewer in the $4 million to $10 million range.

2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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