3.7 Investment Characteristics – Company Size INVESTMENT ACTIVITY IN 2019
Angel groups predominantly invest in small busi- nesses with growth potential, mostly those with 1–5 or 6–10 employees at the time of the invest- ment, accounting for 42% and 18% respectively of investments in 2019 (Figure 20). This concen- tration of investments in small companies is con- sistent over time. However, in contrast to previous
years almost one-quarter of the investments made in 2019 were in large businesses with more than 50 employees. This highlights the role that angels play in investing early in the financing life cycle of entrepreneurial businesses, often providing the first round of external finance, as well as in businesses that are in the early stages of scaling-up.
FIGURE 20 Firm Size at Time of Investment
5% 1%
3%
4%
5% 4%
3%
9%
13%
24%
22%
17%
24%
15%
28%
16%
Number of Employees
22%
1 to 5 6 to 10 11 to 25 26 to 50 51+
28%
32%
25%
18%
24%
52%
45%
44%
42%
42%
32%
0%
0%
2014
2015
2016
2017
2018
2019
Year
49
ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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