THE INVESTMENT ENVIRONMENT The Impact of COVID-19 on the Investment Process
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tors to invest as 2021 progressed, which was reflected in an increase in investment activity. The interest of in- vestors in businesses with a COVID-angle is no longer evident — they have reverted to investing in compa- nies with strong fundamentals and market opportuni- ties. Several organizations reported that investors are now showing more interest in later-stage, revenue-gen- erating companies. These companies have higher val- uations but are less risky because they have revenue. Some organizations are therefore reducing the num- ber of pre-revenue companies that they are selecting to pitch to their investors. However, the rise in invest- ment activity stalled at year-end, likely as a result of the sharp rise in cases related to the Omicron virus and the reintroduction of restrictions on in-person meetings. Many angel organizations transitioned their activities online, building innovative online engagement strategies with investors and entrepreneurs to replace in-person
2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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