TORONTO, July 18, 2012 /CNW/ - The National Angel Capital Organization (NACO) is pleased to announce the release of the Investment Activity by Canadian Angel Groups: 2011 Report. This report, the second of its kind, examines 2011 activity levels
and highlights trends such as a significant increase in levels of Angel
activity. The report also presents an initial analysis of the mode of
exit and the returns generated by Angel-backed companies.
Significant findings of this report include:
~12% increase in the number of business plans funded as a proportion of
those selected for detailed review.
2% increase in the number of business plans funded as a proportion of
134 investments in 2011 (103 new and 31 follow-on) totalling $82.4
million ($60.5 million new and $21.9 follow-on), 90 investments (80 new
and 10 follow-on) were made in 2010 totalling $35.3 million ($34.2 new
and $1.1 follow-on).
$172K increase in average investment, from $442K in 2010 to $614K in
ICT (51%), clean technology (21%), and life sciences (17%) received the
largest proportion of investments.
ICT ($33.3M), life sciences ($26.6M), and clean technology ($17.5M)
received the most investment.
70% of recorded investments involved a co-investor, with 74% of these
being either independent Angel investors or investors associated with
an Angel Group.
49% of investments indicated government support in the form of a
regional economic development agency program.
72% of investment exits were from a 'sale to/merger with another
4 years or more was the length of time investments took to mature before
an exit took place.
"The impact, importance and growth of the Angel community in Canada is
clear, with more Angels investing more capital in more companies across
the country in 2011," said Bryan Watson, Executive Director of NACO.
"To continue to support this trend of investment into Canada's emerging
companies, the Government of Canada must develop national programs
that reduce the substantial risk Angel investors face and leverage
additional capital into the market through co-investment programs, tax
credits and direct support to the Angel community."
"Angel investor groups invested significantly more capital in 2011 than
in 2010," said Michelle Scarborough, Chair of NACO. "For 2011, NACO
estimates that Angel investors in Canada invested just under $1 billion
into high-growth, early-stage companies across all industries and
geographies. As such, Angels continue to fill an important financing
gap at the early and growth stage of company development, putting our
own capital to work along with our expertise, helping to mentor
entrepreneurs during critical stages of company development and helping
accelerate company growth."
This study was funded by Industry Canada and BDC Venture Capital.
BDC VC is working with a number of angel groups across the country,
including NACO, to help them thrive. "Angels are playing a considerable
part in starting to fill the financing gap that Canadian startups
continue to face in their early stage," said Michael Mahon, Director,
Strategic Initiatives and Investments at BDC VC. "Canada needs strong
angel networks capable of providing not only early-stage funding, but
also mentorship to entrepreneurs. It is important to get a better
understanding of the Canadian angel capital market so that we can more
effectively support it."
To download a copy of the full report, please visit: http://www.nacocanada.com/NACO/What-We-Do/Investment-Activity-by-Canadian-Angel-Groups-2011
SOURCE National Angel Capital Organization
For further information:
Bryan J. Watson
Executive Director, NACO