1.5 Summary INTRODUCTION
Canadian angel groups increased the amount that they invested in 2019 by 14.7% compared with 2018, but the number of investments was significantly lower. This is because of a substantial increase in the average size of investment. The increase in the aggregate amount invested by angel groups is likely to be associated with an increase in their average size of group membership. The remainder of this report looks in more detail at angel groups and their investments in 2019 and trends in investment activity over time. It is structured as follows: Section 2 presents angel group characteristics. It covers their organizational structure, age, fee structure, number of members, gender composition of their membership, number of investments and amount invested in 2019. Section 3 presents an analysis of the investments made by angel groups in 2019 and compares this with previous years. It starts with an analysis of the financing funnel that tracks how the number of businesses that originally approach the groups diminishes at each stage in the investment process. It then provides information on the sectoral and geographical characteristics of investments, size of investee businesses, details on co-investments and syndicated deals, follow-on investing, deal structures and company. Section 4 assesses the current environment for angel investing in Canada. It provides information on the views of group managers on the investment climate in Canada, the challenges that they currently face and where government support should be focused. Section 5 concludes the report by highlighting the key themes that emerge from the analysis, discusses the early evidence of the impact of the COVID-19 crisis on angel groups in Canada and proposes ways in which governments could further support angel investing at this critical time.
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ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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