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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