EXECUTIVE SUMMARY Introduction
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Headline Findings • Demand for angel funding was higher in 2022 than in each of the previous three years. 7% of the busi- nesses that approached angel organizations were successful in raising finance, the highest proportion in the past four years. • Angel organizations report an increase in CleanTech and ClimateTech businesses seeking finance. • The number of investments increased by 3% and is the highest ever reported. • However, the amount invested through angel orga- nizations in 2022 dropped sharply, declining by 37% compared with 2021. Nevertheless, this is the sec- ond-highest on record. • The median size of investment in 2022 was $82,500, marginally lower than in 2021 ($85,000) and much lower than in earlier years. The mean size of investment in 2022 was also lower than in 2021 ($220,275 compared with $385,483).
• There was a decline in the median valuation ($4.5 million compared with $5 million in 2021). • There was a big drop in the rating of the investment climate (in early 2023), with a median rating of 5 compared with 6 in previous years and a mean rating of 5.2 compared with 6 and 7 in previous years (on a scale from 1-10). • Angel investments continue to be concentrated in Central Canada (Ontario and Quebec), accounting for 78% of the amount invested — the highest on a per capita basis — but just 59% of investments. • Women now account for 37% of members of angel organizations, more than doubling since 2019. This increase has been driven by the formation of several angel organizations with a higher proportion of wom- en members or exclusively for women.
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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