This report is being published at a time when the Canadian economy, along with the rest of the global economy, is starting to emerge from months of lockdown in response to the COVID-19 pandemic. Once again, this highl ights the critical role of angels in financing activity at the star t of the entrepreneurial pipeline. Entrepreneurs who start and scale-up innovative companies will play a key role in Canada’s economic recovery. It is entrepreneurs who will develop solutions to the problems that COVID-19 has created for government, businesses, and Canadians in all communities, to enable them to adjust to the ‘new normal’. It is therefore vital that angel investors continue to invest. However, responses from angel groups suggested that there was evidence of a decline in angel investing, angel investors were focusing on supporting their existing portfolios and scaling back on new investments and focusing any new invest- ments on COVID-19 related opportunities. There was also a concern by some groups that they may not have the resources to continue. These developments are expected to have a significant impact on Canada’s entrepreneurial ecosystem. To support entrepreneurs, government actions could include an increase in financial resources to support the incremental project costs of mobilizing angel activ- ity; matching funds for companies supported by angel investors; tax incentives to encourage community-based investing; a secu- rities regime exemption to increase participation in the economic recovery; enhanced access to emergency programs and measures, and; fast-tracked approval of funding for government business support programs.
Conclusion EXECUTIVE SUMMARY
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ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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