2022 Report on Angel Investing in Canada 110822

INTRODUCTION Summary

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Section 3 analyzes angel invest- ments made in 2021, with a compar- ison to prior-year activity. It starts with an analysis of the demand for angel finance and the financing fun- nel that tracks the number of busi- nesses which originally approach the organizations seeking finance that are selected to present to an- gels, and from this group those that are successful in raising finance. It then provides information on the sectoral and geographical charac- teristics of investments, new vs. fol- low-on investments, size of investee businesses, deal structures, valua- tion, sector, firm size and geograph- ical location of investee businesses.

Section 4 assesses the current environment for angel investing in Canada based on a numerical rating of the investment climate and views of angel organization managers. It also reports on the ongoing impact of COVID-19 on the investment pro- cess and the changes that organiza- tions have introduced to the way in which they operate and engage with their investors and entrepreneurs. Section 5 considers the broader challenges that angel organizations report they are currently facing.

Section 6 concludes the report. A discussion of key themes emerging from the analysis is followed by a consideration of COVID-19’s long- term impact on angel investing. An investigation of government support for angel investing, as a means of strengthening Canada’s entrepre- neurial ecosystem, is also included.

BY PROFESSOR COLIN MASON

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