Angel Investment Up Dramatically, Report Finds

2016 was a big year for angel investing in Canada, new data shows.

According to the National Angel Capital Organization, more than 400 investments were made in 2016, up from fewer than 300 in 2015 and 2014, and fewer than 200 in 2013.

“This latest report is very encouraging, as the data supports the developments we have been observing over the past several years, which shows a trend towards greater collaboration between Angels and other partners in the funding continuum including Venture Capital, IPOs, and commercial banks,” said Yuri Navarro, CEO of NACO.

The size of each investment was also up: $1.7 million , up from around $1.2 million the year before and less than $1 million in 2013.

“Increasingly, the Angel network is filling the seed to growth stage in the investment scale stepping in to provide critically needed bridge capital to startups as they mature into scalable ventures,” added Navarro. “This growing Angel funding bridge will not only generate more positive investment outcomes, it also helps to build stronger late stage innovation companies that strategic investors can support.”

The total amount invested by angels was $157 million. This is an increase from $133 million in 2015 and $90 million in 2014.

“Small businesses are the growth engine of the Canadian economy—when these companies grow, they create more jobs for middle-class Canadians,” stated the Honourable Bardish Chagger, Minister of Small Business and Tourism, in response of the report. “The Government of Canada is committed to supporting our entrepreneurs and small businesses grow and scale up, and angel groups across the country are doing great work to invest in, and work with startups and small business entrepreneurs.”

Since 2010, NACO’s annual report has captured 1,413 investments in 773 companies totaling $560 million.