INTRODUCTION Investment Activity of Angel Organizations in 2022: An Overview
65
capital industry as reported by The Canadian Venture Capital Association (CVCA). In 2022 venture capital firms invested $10 billion — which is lower than in 2021, when it recorded a record-breaking level of annual ven- ture capital investment, but the second-highest annual amount recorded. Toronto, Montreal and Vancouver ac- counted for three-quarters of the amount invested and 57% of the transactions. Some 61% of this $10 billion was concentrated in 45 ‘mega deals’ of $50 million or more. Venture capital firms made only 319 investments at the early-stages, with a further 256 investments made in companies at stages typically focused on by angel organizations. This compares with 618 investments re- ported by Canadian angel organizations. In making this comparison three points need to be emphasized. First, not every angel organization reported their investment activity. Second, as already noted, the angel invest- ments reported here only include the visible segment of the angel market; it does not cover all angel investors or investments made by angels investing on their own
organziations was 17.7, with a mean of $4.5 million. The median amount invested per company was $100,000; the mean amount was $251,094 (Table 2). However, in many cases, angels invest alongside other investors as part of a larger syndicate, so the overall deal size is of- ten much larger than angel investments alone would in- dicate. Syndication is defined as deals where multiple investors (typically angels but also including early-stage focused venture capital firms) are involved in the same round as the angel investors. However, access to in- formation surrounding the specific amounts invested by other investors in syndicated deals is challenging to source as it is not commonly shared among all parties involved in the deal. The significance of angel investors in the Canadian en- trepreneurial ecosystem is underlined when their in- vestment activity is compared with that of the venture
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
Powered by FlippingBook