I N V E S TME N T ACT I V I T Y I N 2 0 2 0 I nves tment Cha r ac t e r i s t i cs - F i rm S i ze
118
slightly larger firms – 42% in businesses with 6-10 em- ployees compared with 11% in businesses with one to five employees. Just over one-quarter of follow-on in- vestments were in businesses with more than 25 em- ployees compared with 15% of new businesses. This serves to further emphasize the role of angel investors in financing businesses to scale.
Investments in larger businesses were more likely to be follow-on investments. As Figure 20 shows, nearly half (46%) of all new investments were in businesses with one to five employees, 71% of all new investments were in businesses with ten or fewer employees, and 14% of all new investments were in businesses with more than 25 employees. Follow-on investments are typically in
FIGURE 20
Firm Size at Time of Investment: New vs Follow On Investments
New Deals per Firm Size
Follow-on Deals per Firm Size
50
8
40
6
30
4
20
2
10
0
0
1 to 5
6 to 10
11 to 25
26 to 50
51+
1 to 5
6 to 10
11 to 25
26 to 50
51+
Firm Size
Firm Size
202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape
Powered by FlippingBook