2022 Report on Angel Investing in Canada 110822

INVESTMENT ACTIVITY IN 2021 Investment Characteristics - Firm Size

157

Investments in larger businesses were more likely to be follow-on investments. As Figure 19 shows, over half (46%) of all new investments were in businesses with 1-5 employees (and 71% with 10 or fewer employees), with relatively few investments in businesses with more than 25 employees. Follow-on investments are typically in slightly larger firms – 42% in businesses with 6-10

employees compared with 11% in businesses with 1-5 employees. Just over one-quarter of follow-on invest- ments were in businesses with more than 25 employees compared with 15% of new businesses. This serves to further emphasize the role of angel investors in financ- ing businesses to scale.

FIGURE 19

Firm Size at Time of Investment: Follow-On vs New Investments

A: Follow-On Deals per Firm Size

B: New Deals per Firm Size

8

30

6

20

4

10

2

0

0

1 to 5

6 to 10

11 to 25

26 to 50

51+

1 to 5

6 to 10

11 to 25

26 to 50

51+

Firm Size

Firm Size

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