The National Angel Capital Organization has released highlights from its forthcoming edition of the Angel Investing in Canada report.
The annual report highlight’s metrics and trends from investments across Canada—data the organization has been tracking for well over a decade now.
“This year’s report shows record levels of early-stage investment made by Canadian angel investors,” writes report author scholar Colin Mason, Professor of Entrepreneurship at the University of Glasgow.
In 2021 there was an overall recovery and uptake in new investments. The year saw angel groups facilitate more than 600 investments, up from just 400 in 2020.
According to NACO Board Chair Mary Long-Irwin, 2021 was “a phenomenal year for investment in Canadian startups.”
More than $250 million was invested through the year, bringing the grand total (since NACO started tracking 12 years ago) to nearly $1.4 billion.
“Our priority at NACO is to sustain this momentum in the face of mounting pressures and volatility in the broader economy,” she says. “We see tremendous opportunity 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.”
According to the report, “the data indicate increased angel activity in Western Canada.”
Rolling BC and Alberta together, the two provinces account for more than one quarter of all angel investment in Canada. Over $40 million was invested by angel groups in Western Canada in 2021.
Overall, startup valuations were slightly lower. The median valuation in 2021 was $5 million, a decrease from $6 million in 2020.
In 2021, Information Technology, Healthcare, and Consumer Discretionary were the top sectors for angel investment in Canada. This was unchanged from 2020.
“In 2021, we saw a wide-ranging shift from traditional modes of angel investing, with SPVs and early-stage funds contributing to a vibrant ecosystem,” said NACO CEO Claudio Rojas. “It’s a year that reflects in many ways how our community is leading change in the broader economy.”
“Angel investment is a critical part of Canada’s entrepreneurial and innovation ecosystem,” said the Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development. “It supports start-ups in all sectors of the economy across the country.”