EXECUTIVE SUMMARY Conclusion
If venture capital funds are pulling back from investing at the seed stage and at the same time are making larger investments, this might be expected to reduce the com- petition for deals that some angel organizations have reported that they are experiencing. But there are also two potentially negative consequences. First, angel orga- nizations will need to increase their scale of investing to prevent the emergence of a funding gap. Second, 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 which might be at the expense of making new investments. This underlines the importance of closely monitoring investment trends.
2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
Randall Howard Founder and General Partner, Verdexus
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