2022 Report on Angel Investing in Canada 110822

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ANGEL ORGANIZATION CHALLENGES

capacity to undertake these tasks as effectively as they needed to. Some organizations reported that there was increasing competition for deals, particularly as angel in- vestors shift their investment focus to larger deals. There was also in- creased competition from accelera- tors and early-stage venture capital funds in the traditional angel invest- ment space. Some organizations re- ported that they are encountering difficulties in recruiting new mem- bers. The costs involved in organiz- ing and hosting events were also highlighted by some. Technology has enabled some efficiency gains to be made. However, organizations report difficulties raising additional

income through increased member- ship fees and sponsorship. The shift to online events during the past two years has reduced the opportuni- ty for the engagement of sponsors with members, making it harder for them to demonstrate a return on their investment. Some organiza- tions reported that they are reliant on volunteer contributions by board and committee members. These fi- nancially-induced constraints ex- perienced by angel organizations — particularly smaller organizations located outside of major cities — has the potential to undermine Can- ada’s entrepreneurial ecosystem

Two other problems were highlight- ed in the responses. First, some an- gel organizations reported difficulty in finding members who were willing to take on a lead investor role, with the consequence that they were un- able to pursue an interest in poten- tial investment opportunities. Sec- ond is the lack of exits, especially in the past two years, which are nec- essary to maintain investor enthusi- asm and provide capital that can be recycled into new investments.

BY PROFESSOR COLIN MASON

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