New report shows that the angel investing ecosystem is shifting to include more underrepresented participants
Canada’s angel investing community are increasingly active, with women participating more.
A new report from the National Angel Capital Organization (NACO) shows that Canadian angels invested a record $262 million in 2021, up from $103 million in 2020 and $164 million in 2019.
Angel investors have invested a cumulative $1.38 billion over the past 12 years.
Women made up 27% of the members of Canadian angel organizations in 2021, up 13% from a year earlier and around 60% above the level in 2018 and 2019. There was a 50% increase in women angel investors over a four-year average.
Claudio Rojas, CEO of the National Angel Capital Organization, says there has been a shift from traditional modes of angel investing including SPVs and early-stage funds contributing to a vibrant ecosystem.
“We also saw a conscious approach to breaking down systemic barriers for women and underrepresented entrepreneurs,” he said. “It’s a year that reflects in many ways how our community is leading change in the broader economy. What happens in the angel community of today, affects the venture-capital community and the broader economy of tomorrow.”
There was a 53% increase in the number of investments with angel organizations facilitating 635 investments, compared with 416 in 2020, a 38% increase in the number of investments over the past four-year average.
The average amount invested per company was $346,043.
Where angels invest
Canadian angel investors are backing local emerging ventures along with some across regional borders, with thematic lines becoming more evident.
Most activity was seen in Central Canada with Ontario and Quebec accounting for 67% of investments in 2021, compared to 5% from Atlantic Canada, 27% from Western Canada, and 1% from Yukon.
“2021 was a phenomenal year for Canadian startups with the angel investor community making 635 investments, compared with 416 in 2020. These investments help create jobs and drive economic prosperity and innovation,” said Mary Long-Irwin, Chair of the National Angel Capital Organization. “We can look to successful programs like the Venture Capital Catalyst Initiative or the BDC Capital Bridge Financing Program for inspiration as we work to develop new mechanisms to drive investment at the critical early stages of company growth, creating a strong pipeline of VC-ready, high-growth companies.”
