2022 Report on Angel Investing in Canada 110822

Annual Report on Angel Investing in Canada

Leading Change

In shining a national spotlight on the incredible leaders featured throughout this report, we aspire to motivate additional widespread change that transforms inertia into action, barriers into opportunities and gaps into indicators of how much more is possible.

Front Cover

Back Cover

Julie Angus Open Ocean Robotics

Laura McGee Diversio

Stephanie Andrew Women's Equity Lab

Mary Long-Irwin National Angel Capital Organization

Franziska Broell Motryx

Claudette McGowan Phoenix Fire Fund

Janet Bannister Investor

Amber Mac Entrepreneur

Ellen Fang Maple Leaf Angels

Heather Payne Juno College

Émilie Boutros TandemLaunch

Jocelyn Mangan Him for Her

Sophie Forest Brightspark

Bobbie Racette Virtual Gurus

Amanda Filipe National Angel Capital Organization

Alison Nankivell BDC Capital

Joelle Foster North Forge

Alice Reimer The51

Kim Furlong Canadian Venture Capital & Private Equity Association

Caroline Pelletier Anges Québec

Jennifer Francis Capital Angel Network

Jana Rieger True Angle Medical Technologies

Navtej Saini National Angel Capital Organization

Astrid Grawehr Kryotek Inc.

Camille Saltman Okanagan Women's Angel Network

Sandi Gilbert InterGen

Alexandra T. Greenhill Careteam

Michelle Scarborough Women in Technology and Thrive Venture Funds at BDC Capital

Marianne Hudson Angel Investor

Amanda Hall Summit Nanotech

Stephanie Sang Granted

Jess Joss Angel Investor

Carol Anne Hilton Indigenonmics Institute

Sonya Shorey Invest Ottawa

Michelle Zatlyn Cloudflare

Lourdes Kletas National Angel Capital Organization

Michelle Simms Genesis

Brea Lake Accelerate Okanagan

Jennelle Sobey Riddl

Jodi Kovitz Investor

Stephany Lapierre TealBook

Geneviève Tanguay Anges Québec

Eva Lau Two Small Fish Ventures

Nicole Verkindt Buggy.ca

Thealzel Lee Vantec Angel Network


Leading Change

This evidence-based report is the 12th annual report conducted by the National Angel Capital Organization and has tracked $1.38 billion of in- vestment. In analyzing year-on-year trends across the angel investment land- scape in 2021, this report provides in-depth insights into the evolution, health and trajectory of Canada’s innovation economy.

2022 Annual Report on Angel Investing in Canada


Lead Author

Report Review Committee

Colin Mason Professor of Entrepreneurship, Adam Smith Business School, University of Glasgow, Glasgow G12 8QQ, Scotland, UK.

Brea Lake CEO at Accelerate Okanagan

Geneviève Tanguay CEO at Anges Québec Jeff White CEO at New Brunswick Innovation Foundation Jennifer Francis Chair at Capital Angel Network Jérôme Nycz Executive Vice President at BDC Capital Joelle Foster CEO at North Forge Technology Exchange Krista Jones Senior Vice President of Venture Services MaRS Discovery District Marc Savoie Executive in Residence at East Valley Ventures Mark Dobbin Founder and President at Killick Capital Mary Moran Former President and CEO at Calgary Economic Development Mike Wessinger Co-Founder and Executive Chair of PointClickCare

Pieter Dorsman Angel Forum and E-Fund

Ray Walia CEO at Launch Venture

Brenda Hogan CIO at Ontario Capital Growth Corporation

He is also the lead author of the 2010, 2011, 2015, 2016, 2017, 2018, 2019, and 2021 reports on Angel Investing in Canada.

We wish to express appreciation to the members of the Report Review Committee for their advice, direction and feedback during the formative drafts of this report.

Sandi Gilbert Managing Partner at InterGen

Catherine Warren CEO at Innovate Edmonton

All views are those of the respective author(s).

Sara Mohajerani Investment Analyst at Bluesky Equities Ltd.

Chris Moyer President at Pelorus Venture Capital Claudette McGowan Co-Founder of The Firehood General Partner of Phoenix Fire Fund

Publication Date: September 2022

Sheila Solby Sr. Marketing Manager at Sillicon Valley Bank Solon Angel Managing Partner at Fresh- Founders.com Stefanie Corbett CEO at Innovation PEI Stephen Stewart Managing Director, M&A at TD Securities Tony Barkett Managing Director at RBCx

Claudia Krywiak President and CEO at Ontario Centre of Innovation

Colin Corcoran Vice President of Finance and Special Projects at Genesis Centre

Derrick Hunter President and CEO at Bluesky Equities Ltd. Frank Leffelaar Investor and Advisor at VANTEC

W. Ian Palm

Partner at Gowling WLG

Dinaro Ly Head of Innovation Partnerships at Interac Corp

Mobilizing Capital for Canada's Entrepreneurs

Incorporated in 2002, National Angel Capital Organization (NACO) is Canada’s professional association for angel investors and the only national platform for both angel collectives and the innovation hubs that support Canada’s entrepreneurs. NACO’s national network includes 4,200 angel investors, 50 incubators and accelerators, and 45 angel groups. NACO members have invested $1.38 billion into 2,000 entrepreneurial companies. By filling critical gaps in the national funding ecosystem and working to advance more equitable access to capital for entre- preneurs from all backgrounds and communities, we enable the emergence of high-growth companies in Canada. In partnership with the Government of Canada, NACO engages in research to inform evidence-based policy development, administers the incubator and angel streams of Canada’s Start-up Visa program, and advances initiatives that promote inclusive economic prosperity in Canada.


Thank You

Our national network includes many inspiring leaders that amplify the impact of our initiatives. We are grateful to the following organizations for their contributions to our work.


BC Tech

Canadian Northern Economic Development Agency (CanNor)

Deloitte Canada

Accelerator Centre

BCF Ventures

Dentons Canada LLP

Canadian Venture Capital and Private Equity Association (CVCA)

Accelerate Okanagan

BizField Angel Network

East Valley Ventures

Afro Caribbean Business Network

Bright Spark

Economic Development Lethbridge

CanNew Innovation Inc.

Alacrity Canada

Brookfield Institute

Edmonton Regional Innovation Network

Capital Angel Network

Alberta Agriculture and Forestry

Brilliant Catalysts

Entrepreneur First

Capital Investment Network

Food and Bio Processing Branch

Business Development Bank of Canada



Alberta Enterprise Corporation

Canada Economic Development for Quebec Regions (CED) / Développement économique Canada pour les régions du Québec (DEC)

Entrepreneurship Hatchery at University of Toronto

City of Grande Prairie

Alberta Innovates


Extreme Venture Partners

Alberta IoT Association


Equation Angels

Canadian International Angel Investors

Angel Forum


Federal Economic Development Agency for Southern Ontario (FedDev) Federal Economic Development Agency for Northern Ontario (FedNor)

Angel One Investment Network

Concrete Ventures

Anges Québec

Creative Destruction Lab

Atlantic Canada Opportunities Agency

Cultivator Power by Conexus

Thank You

Firstline Capital

Innovate Calgary

Launch Academy

North Forge Technology Exchange

Northern Ontario Angels

Frontier Collective

Innovation Cluster Peterborough

LaunchPad PEI

Ontario Tech University


and the Kawarthas

Mariner Partners

Pacific Technology Ventures Ltd.

Foresight Cleantech Accelerator Center

Innovation Factory

Manitoba Technology Accelerator

Pacific Economic Development Canada (PacifiCan)

Him for Her

Innovate Niagara

Maple Leaf Angels


Innovation Park at Queen's University

MaRS Discovery District

Panache Ventures



Matr Ventures

Pelorus Venture Capital

Georgian Angel Network

Innovation XL at Queen's University

Mavan Capital

Peterborough Region Angel Network

GIC Merchant Bank

Innovation, Science and Economic Development Canada (ISED)

Millworks Centre for Entrepreneurship

Planet Hatch

Golden Triangle Angel Network

Mindbridge AI

Platform Calgary

Intrinsic Innovations

Government of Alberta

Mississauga Business Enterprise Centre

Praries Economic Development Canada (PrariesCan)

Invest Ottawa

Government of Yukon


Island Capital Partners

GreenSky President’s Club

MVP Angel Investments Inc


Ivey Business School


National Research Council of Canada Industrial Research Assistance Program (IRAP)


Kingston Economic Development Corporation


Propel ICT

Highline Beta

Pycap Venture Partners

Killick Capital

NEXT Canada

iGan Partners


Keiretsu Forum Central Canada

New Brunswick Innovation Foundation

Ignite Atlantic

Real Ventures


Niagara Angel Network

Ignite Fredericton

Red Leaf Capital

LatAm Startups

North Forge East Incorporated

RIC Centre

Thank You

Roseview Capital

Think8 Global Institute

York Entrepreneurship

Roseview Global Incubator

TIE Toronto

Development Institute

RVC Worldwide

Toronto Business Development Centre

York Angel Investors Inc.

Silicon Valley Bank

Toronto Metropolitan University

YSpace, York University

Spark Angel Network

Tree Frog Accelerator

Yukon First Nation Chamber of Commerce

Spark Commercialization and Innovation Centre

Two Small Fish Ventures

Yukon Venture Angels

University of New Brunswick - J Herbert Smith Center

Zinc Ventures

Spring Activator


University of Windsor

And many more

SquareCircle Ventures

Valhalla Private Capital

Southwestern Ontario Angel Group

ventureLAB Innovation Centre

Startup Zone

Venn Innovation



TechAlliance of Southwestern Ontario


Techstars Toronto


The DMZ at TMU

Waterloo Accelerator Centre

The Narwhal Project

Windsor-Essex Capital Angel Network


Women’s Equity


Accelerate Okanagan Angel One Investor Network AngelForum Anges Québec Brightspark Backbone Angels BDC Capital Women in Technology and Thrive Venture Funds Centech Communitech Fierce Founders Capital Angel Network Co.Labs Capital Investment Network East Valley Ventures Federation of African Canadian Economics Genesis Global Centre of Indigenomics Golden Triangle Angel Network Henry Bernick Entrepreneurship Centre at Georgian College Intergen Innovation Cluster - Women Breaking Barriers Accelerator Program Innovacorp InterGen Island Capital Partners

Le Mouvement des accélérateurs d’innovation Lethbridge Tecconnect (Women in STEM program) MaRS Women in Cleantech Accelerator MindFrame Connect New Brunswick Innovation Foundation North Forge Technology Exchange Northern Ontario Angels Southwestern Ontario Angel Group Spark Angels Sandpiper Ventures SheBoot StandUp Ventures Startup Montreal Tech Alliance The51 The Forum TMU Diversity Institute TMU DMZ Woman Founders program University of Victoria Impact Investing Hub VANTEC Angel Network Windsor Essex Capital Angel Network Western Intellectual Property & Innovation Legal Clinic

In partnership with academic institutions, investor groups and innovation organizations across Canada, NACO is developing a solution to empower Canadian women.

Get involved at nacocanada.com/women

Yukon Venture Angels Women’s Equity Lab

Keiretsu Forum LatAm Startups



We would like to recognize our global and national community partners that supported the release of this report.




Executive Summary


1. Introduction

64 67


The Role of Angel Investors in the Entrepreneurial Ecosystem

1.2 1.3 1.4

Angel Investment Data Sources


Investment Activity of Angel Organizations in 2021: An Overview




2. Angel Organization Characteristics

83 84 87 89 90 91 96

2.1 2.2 2.3 2.4 2.5 2.6 2.7


Organizational Structure

Fee Structures

Age of Organizations

Size of Organizations – Membership Numbers

Gender of Organization Membership Investment Activity by Organization



3. Investment Activity in 2021

103 105 110 117 119 124 155 158

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Demand for Angel Investment

The Financing Funnel


Deal Structures


Investment Characteristics - Industry Sector Investment Characteristics - Firm Size

Investment Characteristics - Region


4. The Investment Environment

181 184

4.1 4.2

The Investment Climate for Angel Investing in 2021 The Impact of COVID-19 on the Investment Process


5. Angel Organization Challenges


6. Policy Recommendations


7. Conclusion

Powered by a national network

Our members are Canada's most prominent individual investors, angel collectives, venture funds, family offices, business incubators & accelerators, and organizations advancing innovation.

Get involved. nacocanada.com/membership

Join our team.

We help Canada's entrepreneurs get access to the capital, mentorship and network they need to build world-class companies. Our members have invested $1.38 billion into 2,000 high growth companies.


Leading Change Preface

MARY LONG-IRWIN Board Chair National Angel Capital Organization

CLAUDIO ROJAS CEO National Angel Capital Organization


PREFACE Leading Change


This year’s report shines a spotlight on changemakers helping to fill gaps and unlock opportunities within our nationally connected innovation economy.

I f investing is hard, building a company is near impossible. These challenges are even more frustrating when forced to break through inertia. Yet, the inspiring women featured in this year’s re- port are doing just that and repre- sent a brighter future for Canada’s innovation economy. For all Canadians, bold action is needed to ensure equitable access to economic prosperity. By har-

nessing the power of our national network, we endeavour to unlock the full potential of our innovation economy at this critical moment in time. But we can’t do it alone. This year‘s report is an in-depth, data-driven analysis that highlights persistent regional inequities. This is not just academic. It is a lived, day-to-day experience for Cana- da’s entrepreneurs, particularly for those that face systemic barriers


Claudio Rojas CEO, Nati onal Angel Capital Organization

PREFACE Leading Change

and limited local pathways to mentorship and funding networks.

Central Canada continues to lead the bulk of invest- ment and entrepreneurial growth. Within Central Cana- da, Northern Ontario is a beacon for how much more is possible.* Even Canada’s dense urban centres are lag- ging behind the extraordinary success of Northern On- tario Angels (NOA) with its $217 million of investment into entrepreneurial companies spread out across a geographically dispersed population of 800,000. On a per capita basis, this means that an additional $8.9 bil- lion of investment dollars could be mobilized to support entrepreneurs from all backgrounds and communities.

In these uncertain times, the economic and social im- perative to take bold action cannot be overstated.

However, change is coming. In communities across the country, innovation leaders are putting in place the building blocks needed to support entrepreneurs within 2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA *Central Canada (ON, QC), Northern Ontario (includes Thunder Bay, North Bay, Sudbury, Timmins, Sault Ste. Marie, Kenora). See also, p. 40.

Jess Joss , Angel Investor Emilie Boutros , Managing Partner, TandemLaunch

PREFACE Leading Change


emerging provincial and territorial ecosystems. Together we are creating a more collaborative, nationally acces- sible entrepreneurial economy. In BC’s Okanagan region, Brea Lake , CEO of Acceler- ate Okanagan, is a driving force behind one of Cana- da’s fastest-growing tech and innovation ecosystems. In Winnipeg, Joelle Foster , CEO of North Forge Tech- nology Exchange, is sharing her passion and drive with local founders building growth-oriented ventures. And in Atlantic Canada, Michelle Simms , President and CEO of Genesis, is helping to turn Newfoundland and Labrador‘s USD $2.75 billion success story with Veraf- in into greater opportunities for an entire generation of founders, while opening up new avenues for innovation and economic growth in the region. This year‘s report also highlights persistent sector in- equities, as evidenced by the bulk of 2021‘s investment being channeled into information and communication

technology companies (ICT). Nonetheless, entrepre- neurs across Canada are building future-fit companies that are poised to solve some of the world’s biggest challenges in areas where Canada is well-positioned to lead. In Cleantech — Julie Angus is deploying a fleet of au- tonomous boats to observe, protect and understand our oceans with Open Ocean Robotics. Amanda Hall ’s di- rect lithium extraction (DLE) processes at Summit Nan- otech are unlocking new lithium resources as we drive toward a more sustainable future. Stephanie Sang is increasing the accessibility of grant funding to support small and medium sized businesses, helping create future jobs and opportunities with Grant- ed, while Bobbie Racette is building flexible work op- portunities for a diverse workforce with Virtual Gurus. Jenelle Sobey , founder of Riddl, and Laura McGee , founder of Diversio, are creating innovative tools and


PREFACE Leading Change


systems to track, measure, and evaluate ESG and diver- sity and inclusion metrics.

transport systems. True Angle Medical Technologies, founded by Dr. Jana Rieger , has developed the Mobi- li-T: a wearable digital health device that could help 500 million people globally to regain their swallowing func- tion. And, Dr. Alexandra Greenhill founded Careteam Technologies, a patient-centered collaboration platform that allows health organizations to share care plans with patients and their families.

As we come to terms with the secondary effects of the COVID-19 pandemic and address the challenges of a healthcare system under mounting pressure, health- care innovators are solving once-impossible problems to build a better future. Dr. Franziska Broell founded Motryx, which helps hospitals improve blood specimen

Peter Misek Framework VC Jennifer Francis SheBoot Bruce Croxon Round 13 Capital

PREFACE Leading Change


This year‘s report also celebrates a major milestone: women now make up 27% of Canada’s angel communi- ty, a 50% increase over past years. Women across Can- ada are stepping up to mobilize their capital, networks and expertise to accelerate the growth of local startups. While we have more work to do, this progress is worthy of celebration. Through the concerted efforts of women angel inves- tors and leaders like Astrid Grawher of Yukon Venture Angels, Camille Saltman of WEL Okanagan Women's Mentoring and Angel Network, Alice Reimer of The51 in Calgary, Geneviève Tanguay of Anges Québec, Thealzel Lee of VANTEC in Vancouver, Ellen Fang of Archangel Network of Funds in Toronto, Jennifer Fran- cis of Capital Angel Network in Ottawa, Sophie Forest of Brightspark Ventures and Eva Lau of Two Small Fish Ventures, change is underway across Canada’s invest- ment community.

Over the past few years, we’ve been tracking an increase in operator-investors entering the ecosystem. This in- cludes successful women founders that are investing and providing support to emerging ventures, while si- multaneously building their own high growth compa- nies. These champions are bringing incredible value to their portfolio companies, applying their highly relevant experience and connections to bolster successful out- comes. Thanks to operator-investors like Heather Payne of Juno College, Stephany Lapierre of Tealbook and Ni- cole Verkindt of Buggy.ca, many young and emerging entrepreneurs are getting the support needed to thrive in a highly competitive global environment. Despite there being more women angels than ever, women and diverse entrepreneurs continue to face significant challenges when it comes to building a suc- cessful business in Canada. Our innovation ecosystem


PREFACE Leading Change


continues to be plagued by systemic biases and barriers. That said, a handful of trailblazers are rolling up their sleeves to tackle these issues head-on. We are inspired by the work of Claudette McGowan , chair of the Coalition of Innovation Leaders Against Rac- ism and founding member of Phoenix Fire, an angel-stage investment fund supporting women entrepreneurs, and by Carol Anne Hilton , who is leading groundbreaking work to strengthen Indigenous economies through re- search, education and engagement at the Global Centre of Indigenomics. And Sonya Shorey at Invest Ottawa, in collaboration with Capital Angel Network, has helped build and grow SheBoot, a national program that engag- es women angels to invest in and mentor tech-enabled, women-led companies.

We are privileged to support and amplify the invalu- able work of these leaders. While many more unsung heroes are leading change, the champions featured throughout this year’s report are representative of an evolving national landscape. As NACO celebrates its 20th anniversary, we strive to build a future that is better than the past. On the ground in local communities across the country, our members are helping us drive progress across Canada’s innovation ecosystem. By leveraging our na- tional platform and network of early-stage investors, along with our country’s most prominent business incu- bators and accelerators, we can push Canada‘s innova- tion ecosystem to the next level.


PREFACE Leading Change

In shining a national spotlight on the incredible leaders featured through- out this report, we aspire to motivate additional widespread change that transforms inertia into action, barriers into opportunities and gaps into indicators of how much more is possible.

MARY LONG-IRWIN Board Chair National Angel Capital Organization

We hope you will join us in leading change.

CLAUDIO ROJAS CEO National Angel Capital Organization


Join us for two interactive days, as we bring together some of the most influential leaders at the intersection of innovation, capital and entrepreneurship.


L'Avance du Changement Préface

MARY LONG-IRWIN Présidente du Conseil National Angel Capital Organization

CLAUDIO ROJAS PDG National Angel Capital Organization


PREFACE L'Avance du Changement PRÉFACE


Le rapport de cette année souligne les efforts des agents de changement qui contribuent à combler les besoins et à créer des opportunités dans notre économie de l'innovation connectée à l’échelle nationale.

Si investir est difficile, alors créer une entreprise est presque im- possible. Ces défis sont encore plus décourageants lorsqu’on doit rompre avec l'inertie. Cepen- dant, c'est exactement ce que font les femmes inspirantes qui sont présentées dans le rap- port de cette année. Ces femmes représentent un avenir promet- teur pour l'économie de l'innova- tion au Canada.

Pour tous les Canadiens, des me- sures audacieuses sont néces- saires pour assurer un accès équi- table à la prospérité économique. En nous appuyant sur la force de notre réseau national, nous œuv- rons pour libérer le plein potentiel de notre économie de l'innovation en ce moment crucial. Mais nous ne pouvons pas y arriver seuls.


Claudio Rojas PDG, Nati onal Angel Capital Organization

PRÉFACE L'Avance du Changement


Le rapport de cette année est une analyse profonde basée sur les données qui met en lumière la persistance d’inégalités régionales. Ceci n’est pas uniquement au niveau académique. C’est une réalité quotidienne pour les entrepreneurs canadiens, plus particulièrement pour ceux qui font face à des barrières systémiques et qui ont de la difficulté à accéder à des réseaux de mentors et de financement au niveau local. Le centre du Canada continue de mener la majeure par- tie des investissements et de la croissance entrepre- neuriale. À l’intérieur de cette région, le nord de l’Ontario est un exemple de ce qui est possible. Même les centres urbains les plus densément peuplés accusent un retard derrière le succès retentissant que connaît la Northern Ontario Angels (NOA) avec ses 217 millions de dollars investis dans des entreprises entrepreneuriales répar- ties sur une population géographiquement dispersée de 800 000 personnes. Au prorata de la population, ceci représente 8,9 milliards de dollars d’investissements

Mary Long-Irwin fmr. Executive Director, Northern Ontario Angels (NOA) Patty Hajdu Minister of Indigenous Services and Minister responsible for the Federal Economic Development Agency for Northern Ontario (FedNor) in Thunder Bay, 2019.


PRÉFACE L'Avance du Changement


au Canada. À Winnipeg, Joelle Foster , PDG de North Forge Technology Exchange, partage sa passion et son dynamisme avec les fondateurs locaux qui créent des entreprises axées sur la croissance. Et dans le Canada atlantique, Michelle Simms , présidente et chef de la direction de Genesis, aide à transformer le succès qu’a connu Terre-Neuve-et-Labrador avec Verafin, évaluée à 2,75 milliards de dollars américains, en de plus vastes opportunités pour toute une génération de fondateurs, tout en ouvrant de nouvelles voies pour l’innovation et la croissance économique dans la région. Le rapport de cette année souligne également la per- sistance d’inégalités sectorielles, comme en témoi- gne le fait que la majeure partie des investissements de l’année 2021 étaient dirigés vers des entreprises de technologies de l'information et des communications (TIC). Néanmoins, des entrepreneurs partout au Cana- da créent des entreprises qui seront adaptées à l’ave- nir et prêtes à résoudre certains des plus grands défis

supplémentaires qui pourraient être mobilisés afin de soutenir des entrepreneurs issus de tous les milieux et de toutes les communautés. En ces temps incertains, on ne saurait trop insister sur l'impératif économique et social de prendre des me- sures audacieuses. Cependant, un changement s’opère. Dans des com- munautés à travers le pays, des leaders de l'innovation mettent en place les bases nécessaires pour soutenir les entrepreneurs au sein d’écosystèmes émergents à l’échelle des provinces et territoires. Ensemble, nous travaillons à créer une économie de l’entrepreneuriat plus collaborative et accessible à l’échelle nationale. Dans la région de l'Okanagan, en Colombie-Britannique, Brea Lake , PDG d'Accelerate Okanagan, est une force motrice derrière l'un des écosystèmes de technologie et d'innovation qui connaît la croissance la plus rapide


PRÉFACE L'Avance du Changement


Quant à Stephanie Sang , elle rend plus accessibles les subventions pour soutenir les petites et moyennes entreprises, contribuant ainsi à la création future d'em- plois et d'opportunités avec Granted Consulting, tandis que Bobbie Racette crée des opportunités de travail flexible pour une main-d'œuvre diversifiée avec Virtu- al Gurus. Jenelle Sobey , fondatrice de Riddl, et Laura McGee , fondatrice de Diversio, créent des outils et des systèmes innovants pour suivre, mesurer et évaluer des paramètres ESG, de diversité et d'inclusion.

mondiaux, dans des domaines où le Canada a le poten- tiel d’être un chef de file.

Dans le domaine des technologies propres, avec Open Ocean Robotics Julie Angus déploie une flotte de ba- teaux autonomes pour observer, protéger et compren- dre nos océans. Les procédés d'extraction directe du lithium (DLE) d' Amanda Hall à Summit Nanotech, ou- vrent la voie à de nouvelles ressources en lithium, alors que nous nous dirigeons vers un avenir plus durable.

Geneviève Morin , PDG, Fondaction; Ancienne PDG, Anges Québec Capital à la réception de la NACO en 2019.

PRÉFACE L'Avance du Changement


Alors que nous prenons conscience des effets secon- daires de la pandémie de COVID-19 et devons relever les défis d'un système de santé soumis à des pressions croissantes, les innovateurs du secteur des soins de santé réussissent maintenant à répondre à des prob- lèmes qui étaient auparavant impossibles à résoudre, permettant ainsi de construire un avenir meilleur. Par exemple, la Dr Franziska Broell a fondé Motryx, qui aide les hôpitaux à améliorer les systèmes de transport des échantillons de sang. True Angle Medical Technol- ogies, fondée par la Dr Jana Rieger , a mis au point le Mobili-T, un dispositif de santé numérique portable qui pourrait aider 500 millions de personnes dans le monde à retrouver leur capacité fonctionnelle de déglutition. Et la Dr Alexandra Greenhill a fondé Careteam Technol- ogies, une plateforme de collaboration axée sur le pa- tient qui permet aux organismes de santé de partager des plans de soins avec les patients et leurs familles.

de la communauté des anges financiers du Canada, soit une augmentation de 50 % par rapport aux années précédentes. Partout au Canada, les femmes intensi- fient leurs efforts afin de mobiliser leurs capitaux, ré- seaux et expertises pour accélérer la croissance des jeunes entreprises locales. Bien qu’il reste encore du travail à faire, ces progrès méritent d'être célébrés. Grâce aux efforts concertés d’anges financiers et de leaders comme Astrid Grawher de Yukon Venture Angels, Camille Saltman de WEL Okanagan Wom- en's Mentoring and Angel Network (WMAN), Alice Re- imerde The51 à Calgary, Geneviève Tanguay de Anges Québec, Thealzel Lee de VANTEC à Vancouver, Ellen Fang du Archangel Network of Funds à Toronto, Jen- nifer Francis du Capital Angel Network à Ottawa, So- phie Forest de Brightspark Ventures et Eva Lau de Two Small Fish Ventures, des changements sont en train de se produire dans la communauté des investisseurs au Canada.

Le rapport de cette année célèbre également une étape importante : les femmes représentent désormais 27 %


PRÉFACE L'Avance du Changement


Ces dernières années, nous avons constaté une aug- mentation du nombre d'opérateurs-investisseurs dans l'écosystème. Ceci inclut des femmes fondatrices qui ont connu du succès, qui investissent et soutiennent des entreprises émergentes tout en créant leurs propres sociétés à forte croissance. Ces champions apportent une valeur incroyable à leurs entreprises en portefeuille, en mettant à profit leur expérience et leurs relations pour soutenir des résultats favorables. C’est grâce à des opérateurs-investisseurs comme Heather Payne de Juno College, Stephany Lapierre de Tealbook et Nicole Verkindt de Buggy.ca, que de nombreux jeunes entrepreneurs émergents obtiennent le soutien dont ils ont besoin pour prospérer dans un environnement international hautement concurrentiel. Bien qu'il y ait plus de femmes anges financiers que ja- mais, les femmes et les entrepreneurs issus de la diver- sité continuent de faire face à des défis importants lor-

squ'il s'agit de créer une entreprise prospère au Canada. Notre écosystème d'innovation continue d'être miné par des préjugés et des obstacles systémiques. Ceci étant dit, une poignée de pionniers retroussent leurs manches pour s'attaquer de front à ces problèmes. Nous sommes inspirés par le travail de Claudette Mc- Gowan , présidente de la Coalition des chefs de file de l'innovation contre le racisme et membre fondatrice de Phoenix Fire, un fonds d'investissement à l'étape de l'in- vestissement providentiel qui soutient les femmes en- trepreneurs, et par Carol Anne Hilton , qui dirige des travaux novateurs visant à renforcer les économies autochtones par la recherche, l'éducation et l'engage- ment au Global Centre of Indigenomics. Sonya Shorey d'Invest Ottawa, en collaboration avec Capital Angel Network, a contribué à la création et à la croissance de SheBoot, un programme national qui incite les femmes anges à investir dans des entreprises technologiques dirigées par des femmes et à les encadrer.


PRÉFACE L'Avance du Changement


Nous sommes privilégiés de pou- voir soutenir et accroître la portée du travail inestimable de ces lead- ers. Bien que de nombreux autres héros méconnus travaillent à ac- célérer le changement, les cham- pions présentés dans ce rapport représentent bien l’évolution qui s’opère à l’échelle nationale. Alors que la NACO célèbre son 20e anniversaire cette année, nous nous efforçons de construire un avenir meilleur que le passé. Sur le terrain, dans les communautés à travers le pays, nos membres nous aident à susciter le changement à travers l’écosystème d’innovation au Canada. En tirant parti de notre plateforme nationale et de notre

réseau d'investisseurs providen- tiels, ainsi que des incubateurs et accélérateurs d'entreprises les plus importants du pays, nous pouvons faire passer l'écosystème d'innova- tion du Canada au niveau supérieur. En braquant un projecteur à l’échelle nationale sur ces incroy- ables leaders présentés tout au long de ce rapport, nous aspirons à susciter davantage un changement à plus grande échelle qui trans- formera l'inertie en action, les ob- stacles en opportunités, et les la- cunes en indicateurs de tout ce qui est possible. Nous espérons que vous vous joindrez à nous pour mener ce changement.

MARY LONG-IRWIN Présidente du Conseil National Angel Capital Organization

CLAUDIO ROJAS PDG National Angel Capital Organization


In celebration of our 20-year anniversary, we announced a new award that celebrates the role of business leaders whose passion and commitment is driving positive change.



Photo Credit: LatAm Startups

"As a first generation-born Canadian of Latin American heritage, it is a privilege to partner with the Government of Canada on the Start-up Visa Program. Newcomer entrepreneurs are critical to unlocking the full potential of Canada's economy."

- Claudio Rojas, CEO, National Angel Capital Organization.


Spotlight on

The following designated organizations support eligible immigrant entrepreneurs on their journey to establishing their businesses in Canada.

NACO administers the business incubator and accelerator stream and angel investor stream of the Immigration, Refugees and Citizenship Canada (IRCC) Start-up Visa Program by des- ignating leading angel groups and incubators/ accelerators from across the country.

Agrivalue Processing Business Incubator Alacrity Foundation Alberta Agriculture and Forestry Alberta IoT Association Biomedical Commercialization Canada Inc. (op- erating as Manitoba Technology Accelerator) Brilliant Catalyst Canadian International Angel Investors Creative Destruction Lab DMZ Ventures Ekagrata Inc. Empowered Startups Ltd. Extreme Innovations Food Processing Development Centre Genesis Centre Golden Triangle Angel Network Highline BETA Inc. Innovacorp Innovation Cluster - Peterborough and the Kawarthas

Innovation Factory Interactive Niagara Media Cluster o/a Innovate Niagara Keiretsu Forum Canada Knowledge Park o/a Planet Hatch L-SPARK LatAm Startups Launch Academy - Vancouver LaunchPad PEI Inc. Millworks Centre for Entrepreneurship NEXT Canada North Forge East Ltd. North Forge Technology Exchange Oak Mason Investments Inc. Pacific Technology Ventures Platform Calgary Pycap Inc (o/a Pycap Venture Partners) Real Investment Fund III L.P. o/a FounderFuel Roseview Global Incubator

Southeastern Ontario Angel Network Spark Commercialization and Innovation Centre Spring Activator TenX Angel Investors Inc. The DMZ at Ryerson University Think8 Global Institute Toronto Business Development Centre (TBDC) Treefrog TSRV Canada Inc. (operating as Techstars Canada) University of Toronto Entrepreneurship Hatchery VANTEC Angel Network Inc. VIATEC Waterloo Accelerator Centre York Angel Investors Inc. York Entrepreneurship Development Institute

To learn more visit nacocanada.com/startupvisa


Leverage the collective knowledge of 4,200 angel investors across our 20 years of experience designing frameworks for investing at the angel, syndicate and fund level across sectors, themes and strategies.



Executive Summary


Professor of Entrepreneurship, Adam Smith Business School University of Glasgow Scotland, UK


Introduction Executive Summary

A ngel investors play a critical role in the entrepre- neurial ecosystem. They are the main source of seed capital, investing relatively small amounts in com- panies at the start-up and early growth stages. As such, angel investors play a complementary role to that of the venture capital industry. Angel investors are often the first investors in businesses that go on to raise larger amounts from venture capital funds to finance their scale-up. Angel investors are difficult to identify. Many angels are independent, individual investors who either invest on their own or may co-invest with others on an ad hoc ba- sis. Their investments largely occur ‘below the radar’ and *Angel organizations include angel networks, family offices and funds that engage in or facilitate angel investment.

are therefore extremely difficult to identify and docu- ment. The analysis of angel investment activity is there- fore generally restricted to investments that are made in what has been termed the visible market — that is, by angel investors who are members of structured angel organizations. This is the 12th Annual Report on Angel Investing in Canada. It is based on information provided by 31 angel organizations on their investment activity in 2021. For the first time this information is supplement- ed with publicly available data on the investments of 10 organizations that did not respond to the request to provide this information.*


Executive Summary

Fueling the Entrepreneurial Pipeline



Overview Executive Summary

A ngel investment activity continued to recover from the effects of the COVID-19 pandemic through- out 2021, with both the number of investments and the amount invested rising in Q1 and Q2, with investment activity falling back marginally in the second half of the year. The 41 angel organizations for which information is available made 635 investments in 2021, with $262.1 million invested.

Angel investment activity was significantly higher in 2021 than in 2020. When the investments that were identified from public sources are included, the number of investments in 2021 was 53% higher than in 2020 and the amount invested was 150% higher. However, if publicly available data is excluded, then 22% more in- vestments were made — with 57% more dollars invest- ed — in 2021 than in 2020.



2010-2021 Cumulative Investment

TOTAL $1,382,052,316

2021: $262.1 million.

Québec 2021: $85,324,801

Western Canada BC, AB, SK, MB Atlantic Canada NS, PEI, NB, NL Central Canada ON, QC Northern Canada YT, NT, NU

Atlantic Canada 2021: $29,423,400





Western Canada 2021: $43,100,715


Northern Ontario 2021: $26,560,000

Southern Ontario 2021: $77,716,939

*For a per capita breakdown of dollars invested per region, see p. 159.



In 2021, we saw an overall recovery and uptake in new investments. Organizations reported an increase in investor appetite as 2021 pro- gressed, which was reflected by the increase in investment activity. The 2021 data paints a more positive picture than 2020, showing a sharp increase in investment activity from Q1 to Q2, a slight drop in Q3 and a slight increase in deal activity in Q4. Towards the end of 2021, organizations reported a halt to the resumption of some in-person activities due to a new wave of the COVID-19 pandemic. This may have in- fluenced the slight decrease in activity in the latter part of the year. Angel organizations include angel groups, fam- ily offices, SPVs and funds that invest in ear- ly-stage companies.

Angel Activity Rebounds in 2021 FIGURE A



In Canada, a majority of the organizations operating in 2021 (54%) were structured as not-for-profit enti- ties. A further 42% were for-profit entities. The pro- portion of for-profit organizations has increased over time, pointing to a significant ongoing shift in the or- ganizational structure of angel investing in Canada. Among angel organizations that charge fees, member- ship dues for individuals. Membership fees for individu- als range from $250 to $2,900 per year, with seven or- ganizations (58% of those that charge membership fees for individuals) charging in excess of $1,000. Two-thirds of organizations extend membership to cor- porate entities. Fees for corporations are typically high- er than those for individuals.


Katie Salem York Angel Investors, Mohammed Ghalayini Maple Leaf Angels



New organizations focused on women investors and underserved groups are on the rise.

Two-thirds of the responding organizations have been established for more than five years and 50% have been operating for 10 years or more. New organizations continue to be founded, with five of the reporting or- ganizations (18%) being three years old or less. This in- cludes organizations focused on women investors and on previously underserved territories.

There is considerable diversity in the size of organiza- tions, with membership ranging from less than 10 to more than 100. The majority of organizations (55%) have more than 50 members. The long-term trend has seen an increase in the proportion of larger organiza- tions and a decrease in the proportion of smaller orga- nizations with 25 or fewer members.




The proportion of women members of angel organiza- tions has been increasing year-on-year, comprising 27% of the members of Canadian Angel organizations in 2021. The proportion of women members ranges from 4% to 100%, with a median of 14.7%. Women composed over 75% of the membership of two organizations. There is considerable variation among organizations in terms of their level of investment activity. In 2021 two organizations (5%) did not make any investments. 20 organizations (51%) made between one and five invest- ments, compared to 14% in 2020. 16 organizations (41%)

each made more than 10 investments, with six of these organizations making more than 25 investments. Not surprisingly, there is a relationship between organization size (number of members) and investment activity, with smaller organizations making fewer investments than larger organizations. The most active organizations in 2021 are located in Ontario and Quebec. There is some consistency over time in the most active organizations.




2017 2018 2019 2020 2021

Highest Recorded Participation from Women Angel Investors To-date FIGURE B


Over the past 5 years, we have re- ported a steady upward trend in the participation of women in the angel investment ecosystem. In 2021, we have tracked a 27% par- ticipation rate from women angel in- vestors. This is a 60% increase from 2019 and 2018 stats. There has been a 50% increase in women angel in- vestors over the past 4-year average (2017: 14%; 2018: 17%; 2019: 17%; 2020: 24%).







Investment Activity Executive Summary

D emand for angel funding increased in 2021. The organizations that reported deal flow information received 7,753 approaches for funding. This is an 18% increase since 2020 — and is higher than in every year since 2015, save for 2017. The usual caveat needs to be added that year-on-year trends are influenced by annual differences in the number of organizations re- porting this information each year. 20% of these busi- nesses were selected for presentation to investors. An-

gels undertook due diligence on 30% of the businesses that were invited to present, ultimately investing in 90% of these businesses once due diligence was complete. This represents 5% of the businesses that initially ap- proached these organizations for funding. The organizations which reported their investment ac- tivity made 600 investments in 2021, investing a total of $212.9 million.


EXECUTIVE SUMMARY Investment Activity in 2021


Funding Success Funnel FIGURE C

Of the 7,753 businesses that ap- proached angel organizations in 2021, 20% were selected for presentation to investors. Angels undertook due diligence on 29% of the businesses that reached the presentation stage. This represents 5% of the businesses that initially approached these groups for funding. Even when they are not funded, en- trepreneurs still receive valuable guid- ance and training throughout the pro- cess. 2021 saw a continued increase in demand for angel capital with 7,753 businesses approaching angel organi- zations in 2021 compared to 6,539 in 2020.

100% (7,753)


20% (1,553)


Due Dilligence

6% (461)

5% (413)



EXECUTIVE SUMMARY Investment Activity in 2021


This represents a significant recovery in investment ac- tivity compared with 2020. The number of investments in 2021 was 39% higher than in 2020 with the amount invested more than double the 2020 figure (+110%). Looked at from a longer-term perspective, both the number of investments and the amount invested is the highest ever recorded. The median size of investment in 2021 was $84,000 which was slightly lower than in 2020 ($100,000). How- ever, the mean size of investment was $346,000 com- pared with $290,000 in 2020. Follow-on investments accounted for 23% of invest- ments and 20% of the total amount invested. This is significantly lower than in 2020. This is likely to reflect a pandemic effect as in 2020 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 appeared less interested in making new investments.

Angels use a variety of investment instruments. The two most commonly used instruments in 2021 were pre- ferred shares (35%), followed by convertible debentures (33%). Simple Agreements for Future Equity (SAFEs) were used in 15% of investments. Debt instruments were uncommon, used in just 1% of cases. The proportion of deals using preferred shares has increased significantly in recent years. There has also been a sharp increase in the use of SAFEs, up from just 7% in 2020.* The median valuation in 2021 was $5 million, lower than in 2020 ($6 million) but the same as in 2019. Just un- der one-quarter (23%) of investments were valued at $4 million or less (with 4% valued at under $1 million), with 55% valued at $6 million or less. Just over one-quarter

*SAFEs help streamline pre-seed and seed financing relative to convertible notes. SAFEs defer the need to arrive at a company valuation.


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