2020 Report on Angel Investing In Canada

Investments in larger businesses were more likely to be follow-on investments. As Figure 21 shows, over half (52%) of all new investments were in businesses with 1-5 employees (and 74% with 10 or fewer employees), with just a handful of invest- ments in businesses with more than 25 employees. This compared with just 9% of follow-on invest-

ments in businesses with 1-5 employees (31%with 10or feweremployees). Follow-on investmentswere concentrated in larger companies, with 43% of such investments in businesses with more than 50 em- ployees. This serves to further emphasize the role of angel investors in financing companies that scale.

FIGURE 21 Firm Size at Time of Investment: New vs Follow On investments

11%

15%

43%

Number of Employees

22%

1 to 5 6 to 10 11 to 25 26 to 50 51+

26%

52%

22%

9% 0%

0%

New

Follow On

50

ANNUAL REPORT ON ANGEL INVESTING IN CANADA

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