225
CONCLUSION
funding is not tied to revenue generation. But if venture capital funds are pulling back from investing at the seed stage and at the same time making larger investments then at least three potential implications follow. First, it will reduce the competition for deals that angel organizations have reported that they are experiencing in some local markets. Second, angel organizations will need to invest their scale of investing to prevent the emergence of a funding gap. Third, angel organizations may find it harder to raise follow-on funding from venture capital funds for their investee businesses, requiring them to commit more of their funds to follow-on investments at the expense of making new investments. It is therefore essential that investment trends are closely monitored.
Colin Mason Professor of Entrepreneurship Adam Smith Business School University of Glasgow Scotland, UK
2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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