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
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Investor Attitudes
cleantech and biotech. It was also reported that there has been grow- ing interest amongst angels to invest in businesses that have previously raised finance. There was greater interest in businesses at both ends of the funding spectrum – more ma- ture companies with valuations of $10 million and above and compa- nies at the very early stage with val- uations less than $4 million.
ed this to the shift of venture cap- ital funds to larger and later stage deals (with larger average company valuations of $7-10 million), creating new opportunities for angels in the early-stage investment landscape. But some organizations commented that opportunities were generally of a lower standard than pre-COVID. One organization suggested this was because startups were being advised to halt their fundraising ac- tivities until COVID passed and to focus on their cash flow and staying afloat for the time being. There was widespread concern that valuations had increased. This was attributed to various developments.
Angel organizations report that fol- lowing the initial shock of COVID-19, the number of startups pitching to their members has increased, and as a consequence, they are active- ly viewing more deals. Organiza- tions report that their members are now interested in a more diversified range of investment opportunities. Many investors are attracted to tech, particularly in health and fin- tech, on account of how well it has performed during the pandemic. Several organizations also reported increased interest in investing in im- pact-oriented businesses, such as
Investment Opportunities
A number of organizations com- mented that the quality and quantity of investment opportunities had in- creased. One organization attribut-
202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape
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