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Investment Characteristics - FirmSize 3.7
nies (with over 25 employees). This highlights the role that angel investors play in investing early in the financ- ing life cycle of entrepreneurial businesses, providing not only the first round of external finance, but also fol- low-on investments in businesses that are in the early stages of scaling-up.
Angel organizations predominantly invest in small busi- nesses with growth potential, primarily those with one to five or six to ten employees at the time of the in- vestment, accounting for 40% and 28% respectively of investments in 2020 (Figure 19). This concentration of investments in small companies is consistent over time. However, some angel investments are in larger compa-
202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape
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