EXECUTIVE SUMMARY Investment Activity in 2022
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Angel investment activity continues to be distributed unevenly across Canada. Central Canada (Ontario and Quebec) accounted for 78% of the total amount invested in 2022, with the West accounting for 18% of the amount invested and Atlantic Canada accounting for 4%. Central Canada also dominates in the share of investments, but not to the same extent, accounting for 59% of invest- ments in 2022 compared with 37% in Western Canada, and 3% in Atlantic Canada. The mean size of investment in Central Canada in 2022 was $285,161 compared with $220,274 for Canada as a whole. However, as was the case in 2021, Atlantic Canada had the highest mean size of investment in 2022 ($294,274). Western Canada’s mean size of investment was much lower ($80,760). In both Atlantic Canada and Western Canada new invest- ments dominate, accounting for 94% and 82% respec- tively of the amounts invested. Follow-on investments were much more common in Central Canada account- ing for 39% of the amount invested compared with 61%
tal investments. Angel organizations predominantly in- vest in small businesses with growth potential, mostly those with one to four or five to nine employees at the time of the investment, accounting for 49% and 22% re- spectively of investments in 2022. This concentration of investments in small companies is consistent over time. However, some angel investments are in larger companies (with over 25 employees) (13%). Investments in larger businesses are more likely to be follow-on in- vestments. However, this distinction was not as great in 2022 as in previous years. Over half (54%) of all new investments were in businesses with 1-4 employees and 71% had between one and nine employees, with rela- tively new investments in businesses with more than 20 employees (15%). Half of all follow-on investments were in businesses with five to nine employees com- pared with 21% in businesses with one to four employ- ees. However, just 7% of follow-on investments were in businesses with more than 20 employees.
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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