EXECUTIVE SUMMARY Investment Activity in 2021
50
(27%) of investments were made at valuations of $10 million or above, similar to the proportions in 2020 and 2019. New investments had a median valuation of $6 million compared with $10 million for follow-on invest- ments. Angel investors invest in a wide range of sectors in the Canadian economy. However, the Information and Com- munication Technologies (ICT) sector dominates, ac- counting for 31% of investments in 2021. This compares with the period from 2015 to 2019, when ICT accounted for close to half of all investments. Life Sciences’ share of investments increased sharply from 2019 to 2020, when the opportunities created by COVID-19 boosted investment activity in the sector. However, in 2021 Life Sciences’ share of investments dropped back to pre- COVID levels. There has also been significant growth in the share of investment activity accounted for by the
Services sector, rising sharply from 2019 to 2020 (from 14% to 21%) and increasing further in 2021 (28%). The Energy and Cleantech sectors continue to account for a small share of investment activity, although both sec- tors recorded slight increases in 2021. ICT and Life Sci- ences also dominate in terms of the amount invested, accounting for 41% and 19% respectively of total invest- ment by value. However, whereas ICT has attracted a higher proportion of the dollars invested over time, Life Sciences has attracted a diminishing share. Angel organizations predominantly invest in small busi- nesses with growth potential. Businesses with 1–5 em- ployees at the time of the investment accounted for 43% of investments, while businesses with 6–10 em- ployees accounted for 25% of investments. Investments in larger businesses were more likely to be follow-on investments. Over half (46%) of all new investments
2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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