The majority (73%) of angel groups are organized in not-for-profit structures, while 23% are for-profit entities. Most groups (71%) charge for membership, with fees ranging from $250 to over $1,000 per year. Most of the groups that of- fer free membership are emerging groups (three years old or less). The proportion of groups that charge a membership fee has risen year-on-year. Just over half of the groups (53%) extend membership to corporate entities (typically professional service firms). More than half of the responding groups (61%) have been established for more than five years of which 32% have been operating for ten years or more. However, new groups continue to be founded, albeit at a lower rate than in previous years. There is considerable diversity in the size of groups, with member- ship ranging from 25 or less to more than 100. The vast majority of groups have more than 50 members: 20% have over 100 members. The significance of larger groups has been increasing over time. Historically angel investors are predominantly men. Women comprised just 17% of the members of Canadian angel groups in 2019, the same proportion as in 2018 and a slight increase on the proportion in 2017, which was 14%. This is a similar proportion to other countries. There is considerable variation among groups in terms of their level of investment activity. Seven groups (36%) made between 1 and 5 investments. At the other extreme, a further 7 groups (36%) each made more than 10 investments (active), with just two of these groups making more than 25 investments (very active). There were fewer very active groups in 2019 than in 2018. Not surprisingly, there is a relationship between group size (number of members) and invest- ment activity, with the largest groups making the most investments.
Angel Group Characteristics EXECUTIVE SUMMARY
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ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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