2020 Report on Angel Investing In Canada

FIGURE 10 Group Presentation, Funding and Application Success Rates

Application Success Rate

Funding Rate

Presentation Rate

100

80

60

40

20

0

3.3 Investments INVESTMENT ACTIVITY IN 2019 2 4

6

8

10

12

14

Angel Group

resulted from a decline in the average (mean) size of investment per company compared with 2017. Activity in 2019, however, illustrates a significantly lower number of investments than in the previous three years (Table 6). This may be attributable to variation in the composition of groups reporting this information or an emerging trend of fewer transactions with a focus on larger companies. Fewer startups receiving funding would reduce the pipeline of companies that “scale-up” in future years.

Canadian angel activity in aggregate over the past 10 years has crossed over $1 billion in total amount invested with a total of 2757 investments. In 2019, angel groups made 299 investments in 2019, in- vesting a total of $163.9 million (Table 6, Figure 11). This is the highest annual amount invested, up 14.8% on the 2018 figure and marginally exceeding the previous record amount in 2017. In comparison, the number of investments increased in 2018, while the dollar amount of investments decreased, which

TABLE 6 Angel Investment Trends

Total Number of Groups Reporting

Number of Groups Reporting Investments

Number of Investments

Amount Invested ($M)

2010

24

14

88

35.3

2011

24

20

71

35.7

2012

20

19

139

40.5

2013

29

25

134

88.7

2014

30

25

237

90.5

2015

32

31

283

133.6

2016

35

34

418

157.2

2017

43

35

505

162.2

2018

32

28

583

142.8

2019

30

25

299

163.9

40

ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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