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Market Changes Executive Summary
I n 2022, the most frequent change observed by an- gel organizations in the types of businesses that had approached them seeking finance was an increase in the number of businesses in the Green Tech, CleanTech and Climate Change space seeking investment. An in- creased demand for HealthTech and AI was also noted. The only consistent theme regarding angel investment preferences was an increasing emphasis on social and environmental impact. Specifically, decarbonisation op- portunities and CleanTech businesses were attracting increased interest among investors.
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. The deteriorating economy had also resulted in a shift from entrepreneur-friendly to inves- tor-friendly term sheets by the end of the year. The VC community has seen a similar downward trajectory of investment activity that started in mid-2022 and has continued into 2023.
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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