2021 Report on Angel Investing in Canada

I N T ROD UCT I ON I nves tment Ac t i v i t y o f Ange l Organ i za t i ons i n 2020 : An Ove r v i ew

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The significance of angel investors in the Cana- dian entrepreneurial ecosystem is underlined when their investment activity is compared with that of the venture capital industry. In 2020 venture capital firms invested $4.4 billion – the second-highest level of VC investment on record. However, this investment is skewed to a small number of mega-deals: 21 investments of over $50 million accounted for 39% of the total amount invested. Venture capital funds made just 124 investments of $1 million or less - the typical investment focus of angel orga- nizations – involving a total investment of just $48 million, just 1% of the total amount invest- ed. There were 153 seed-stage investments in- volving a total investment of $304 million, 7% of the total. 8

Investment Activity in 2020 by Quarter FIGURE 1

$ Size of Deals

# of Deals

300

200

100

0

Q1

Q2

Q3

Q4

Deal Quarter

8 CVCA (2021) Year in Review: Venture Capital Canadian Market Overview. https://www.cvca.ca/research-insight/market-reports/

202 1 ANNUAL REPORT ON ANGEL I NVEST I NG I N CANADA The Chang i ng Landscape

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