INVESTMENT ACTIVITY IN 2022 Investments
113
meant that follow-on investments accounted for a high- er proportion of investments. In 2021, many companies that had deferred their fundraising in 2020 because of the economic uncertainty came to the market in 2021. And angels were much more interested in making new investments in 2021. As a result, new investments ac- counted for a higher-than-normal share of total invest- ment activity.
One of the significant attributes of angel organizations is that, unlike most solo angels, they have the financial capacity to make follow-on investments. This is critical in providing their investee businesses with the finance to scale up. The proportion of follow-on investments was higher in 2022 than in 2021, accounting for 32% of investments compared with 26% in 2021. However, this was still below the level in previous years (Figure 11). Follow-on investment as a share of the total amount in- vested was also higher in 2022 than in 2021, accounting for 36% of the amount invested, compared with 21% in 2021. This is similar to 2018, 2019 and 2020 (Figure 12). It is, of course, important to recognise the particu- lar investment circumstances of the past two years. In 2020 during the pandemic angels focused more on supporting their existing investee companies to ensure that they had sufficient financial resources to survive the economic downturn caused by the pandemic and were less interested in making new investments. This
Mean and Median Deal Sizes FIGURE 10B
Median
Mean
$5M
$4M
$3M
$2M
$1M
2015 2016 2017 2018 2019 2020 2021
2022
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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