E X ECU T I V E S UMMA RY I nves tment Ac t i v i t y i n 2020
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Angel investors predominantly in- vest in small businesses with growth potential, mostly those with one to five or six to ten employees at the time of the investment, account- ing for 40% and 28% respectively of investments in 2020. This con- centration of investments in small companies is consistent over time. However, some angel investments are in larger companies (with over 25 employees), accounting for 16% of investments in 2020.
Investment activity measured in terms of the number of investments is dominated by the Information and Communication Technologies (ICT) sector (35%), followed by the Life Sciences sector (27%). The domi- nance of ICT and Life Sciences has been a constant theme over time. Also notable is the limited propor- tion of investments in energy and cleantech sectors. ICT and Life Sci- ences also dominate in terms of the amount invested, accounting for 39% and 20% respectively of total investment by value.
Valuations in 2020 were higher than in 2019. The median valuation was $6 million compared with $5 million in 2019. However, there is consider- able variation in valuations. Just over one-third (36%) of all investments were valued at between $2 million and $6 million, and just under half (47%) were valued at $6 million or less. Just over one-quarter (26%) of investments were made at valua- tions of $10 million and above (sim- ilar to the proportion in 2019). New investments had a median valuation of $5 million compared with $8 mil- lion for follow-on investments.
202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape
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