2020 Report on Angel Investing In Canada

3.5 Valuations INVESTMENT ACTIVITY IN 2019

There is considerable variation in valuations (Figure 16A). Just over half (53%) of all investments were valued at between $2m and $6m, while al- most two-thirds (64%) were valued at $6m or less. One-quarter of investments were made at valu- ations of $10m and above. The median valuation was $5m. As might be expected new investments had a lower valuation than follow-on investments (Figures 16B and 16C). The median value of a new investment was $5m with 76% valued at $6m or less (42% at $4m or less). This compares with a

median valuation of $9m for follow-on investment. There are also variations in valuation across sec- tors. Because of the sectoral distribution of invest- ments it is only possible to compare investments in Information and Communication Technologies (ICT) with all other sectors (Figure 16D). The median valuation for ICT businesses was $500,000 com- pared with $1.6m for other sectors. This reflects the smaller proportion of ICT investments valued at $8m and above.

FIGURE 16-A Valuations - Total

10 12 14 16

17

14

12

0 2 4 6 8

6

4

2

Up to $2m $2m - $4m $4m - $6m $6m - $8m $8m - $10m $10m +

Valuations (millions of $)

FIGURE 16-B Valuations - New Investments

11

10

9

8

6

5

4

4

3

2

1

0

Up to $2m $2m - $4m $4m - $6m $6m - $8m $8m - $10m $10m +

Valuations (millions of $)

44

ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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