THE INVESTMENT ENVIRONMENT Market Changes in 2022
160
organization in 2022 and those that had left. Two-thirds of respondents did observe changes. New angels join- ing angel organizations in 2022 were, not surprisingly, identified as being younger (under 45), women and from professional occupations rather than current or cashed- out entrepreneurs. They were more likely to focus their investments on businesses that have a social and envi- ronmental impact and take into consideration diversity and inclusion. However, other respondents suggested that the interest in green and CleanTech investments is found across all types of angels. Those angels that left the angel organizations were, unsurprisingly, most often older, long-standing members who were at an age where the angel investment cycle is too long and involved too much of a commitment. Others who left did not have the time or patience to learn how to make angel investments successfully and in many cases had never invested, or simply no longer had the time or in- terest, or wanted to pursue other interests.
investors surrounding inclusive workforce cultures and the diversity of leadership and employees.
Several respondents noted that the economic climate during the second half of the year, and particularly the final quarter, with rising inflation and higher interest rates, had led to investors adopting a more careful and cautious approach. This had slowed investment activi- ty, with investors seeking to minimize risk by looking to invest in more established businesses rather than start- ups and cash-generative businesses, requiring higher metrics and investing smaller amounts at lower valu- ations. Some investors stopped making investments. The deteriorating and unpredictable economy had also resulted in a shift from entrepreneur-friendly to inves- tor-friendly term sheets by the end of the year. Angel organizations were also asked about changes in their membership, specifically whether they observed anything distinctive about the new angels joining their
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
Powered by FlippingBook