T H E I N V E S TME N T E N V I RONME N T COV ID-19 Cha l l enges
This negatively impacted the number of active investors, investment activity, round size and syndication and the amount of money available to invest. It was also sug- gested by some respondents that the initial enthusiasm of angels to shift to online investing has waned as the year progressed and ‘Zoom-fatigue’ set in. One organization commented that the shift to remote fundraising, related to the shift to online pitching and negotiations over Zoom, has resulted in an increase in foreign investors who are “opportunistically investing with little or no insight and driving up valuations.” In the short term, this may be positive for startups, but it was suggested that in the longer term, this does not provide them with sustainable valuations or valuable early-stage partners to help them grow.
202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape
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