Further design issues concern: the maximum size of investment under the initiative; whether it only applies to businesses raising their first round of equity finance; and whether follow-on investments are permitted. The co-investment initiative should be designed with as few exceptions as possible and give businesses as much financial runway as possible, suggesting that the maximum matched funding should be no lower than $5m (i.e. total investment of $10m) and that follow-on investments should be permitted. Evaluations of co-investment initiatives have generally been favourable, concluding that they are effective in leveraging investment capital from existing investors. They enable more and larger deals. And they do so in a manner that minimizes the cost to the public purse and the risk to public funds. Moreover, the limited evidence suggests that co- investment initiatives generate a positive return to the government and public over the longer term. The effectiveness of co-investment initiatives is likely to be reduced during the current pandemic because of constraints on the ability of angels and other early- stage investors to invest. Hence, these initiatives need to be complemented by other support initiatives.
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MOBILIZING ANGEL ACTIVITY IN YUKON
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