2022 Report on Angel Investing in Canada 110822

INVESTMENT ACTIVITY IN 2021 The Financing Funnel

106

Of the 7,753 businesses who ap- proached the 26 organizations that re- ported funding outcomes, 20% were selected for presentation to investors, a figure that has fluctuated over time. Angels undertook due diligence on 30% of the businesses that were in- vited to present. This represents 6% of the businesses that approached organizations to seek funding. Angels invested in 90% of these businesses once due diligence was complete. This represents 5% of the businesses that initially approached these organiza- tions for funding, the same proportion as in 2020, but a slightly lower propor- tion than in previous years (apart from 2019) (Figure 9; Table 5). The challenge for entrepreneurs is therefore to avoid

Funding Success Funnel FIGURE 9

100% (7,753)

Application

20% (1,553)

Presentation

Due Dilligence

6% (461)

5% (413)

Funded

BY PROFESSOR COLIN MASON

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