2020 Report on Angel Investing In Canada

3.6 Investment Characteristics – Industry Sector INVESTMENT ACTIVITY IN 2019

Investment activity measured in terms of number of investments is dominated by the Information and Communication Technologies (ICT) sector (48%) followed, some way behind, by the Life Sciences and Healthcare sector (20%) (Figure 17).

This dominance of ICT and Life Sciences and Healthcare has been a constant feature over time. Also notable is the limited proportion of invest- ments in energy and cleantech sectors.

FIGURE 17 Valuations - Percentage of Investments by Industry (Number of Investments)

100%

3%

5.1%

5.4%

6.1%

7.3%

7.5%

6.1%

90%

12%

13.8%

6.8%

7.9%

18.8%

80%

5.8%

6.8%

13.5%

9.3%

5%

6.1%

7.8%

70%

6.1%

Energy ICT

17.9%

60%

24.7%

19.5%

20.3%

Services Manufacturing Others Cleantech Life Sciences and Healthcare

16.1%

50%

40%

30%

52.3%

48.1%

46.7%

45.1%

44.4%

20%

10%

2019 1.5%

2017 1.2%

2018 1.1%

0%

2015 0.4%

2016 0.4%

Year

Since the size of investments varies among sectors, it follows that the distribution of investments by amount is somewhat different (Figure 18). In particular, the ICT sector accounts for only 35% of the amount invested compared with 48% of

investments. The ‘Other’ sector accounts for 27% of the amount invested. The decline in the signifi- cance of Life Sciences and Healthcare in the past three years is also evident in terms of its share of the amount invested.

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ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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