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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