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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