2023 Report on Angel Investing in Canada 121923W6

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Investment Activity of Angel Organizations in 2022: An Overview 1.3

A s last year’s report showed, angel investment ac- tivity grew strongly in 2021 as the economy re- covered from the COVID-19 pandemic. Angel invest- ment activity continued to grow in 2022, but as Figure 1 shows, investments declined in the second half of the year as the economy slowed in response to the uncer- tain macroeconomic environment, a tightening mone- tary climate, rising inflation, higher interest rates and geopolitical uncertainty. The number of deals declined in each quarter, with Q4 deals 28% lower than in Q1. The total amount invested exhibited a more complicat- ed pattern, rising from Q1 to Q2, falling sharply from Q2

to Q3 (by 43%) and recovering slightly in Q4, with the amount invested in Q4 12% lower than in Q1 and 27% lower than in Q3. Looking at the year as a whole, the 37 angel organizations that provided information on their investment activity in 2022 (full details from 26 organizations; summary infor- mation from an additional eleven organizations) made 653 investments, investing a total of $166.2 million. The median number of investments facilitated by organ- ziations was 9; the median amount invested was $1.9 million; the mean number of investments facilitated by

2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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