The National Angel Capital Organization (NACO) is pleased to announce the release of the Investment Activity by Canadian Angel Groups: 2010 Report. This report, the first of its kind, was completed in partnership with the Government of Canada and authored by Professor Colin Mason. It highlights the importance of Angel capital to the growth of Canada’s high-potential companies.
Significant findings of this report include that:
- 90% of companies funded by Angel groups in 2010 were new not follow-on.
- Angel groups collectively received around 1,850 business plans. 14% were considered in detail. Roughly 32% received investment.
- Angels groups invested CAN$35.3 million in the 88 deals for which we have information; an under-estimate as some groups did not report the amount invested. Co-investors were involved in 58% of investments and invested at least a further CAN$29.4 million. It should be noted that these statistics are for Angel groups only and do not include individual Angel investments.
- Angels invested in a wide range of industries but with a strong technology focus including: ICT sector (43%), followed by life sciences (18%) and clean tech (16%).
- 74% of investee businesses had sales revenue in 2010.
“This landmark study confirms the strong activity level of organized Angel investors across all of Canada,” said Bryan Watson, Executive Director of NACO. “We encourage the Angel community that NACO represents to keep investing, through the Year of the Entrepreneur, to support the businesses best positioned to drive the economy forward.”
“Angel investors invest experience and mentorship along with capital, and continue to invest in new companies even as other investors consolidate around their previous investments,” said Michelle Scarborough, Co-Chair of NACO. “This makes Angels an increasingly vital part of the innovation ecosystem as they support their investments to exit.”
NACO would like to acknowledge Industry Canada and the Federal Economic Development Agency for Southern Ontario for their support of this research.