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Canadian angel investments jumped 50 per cent in 2011: study

More angels are coming to the aid of Canadian startups these days.

Angel investors made 134investments totaling $82.4 million in 2011, up from 90investments worth a combined $35.3 million in 2010, according to astudy released Wednesday by the National Angel Capital Organization(NACO) inToronto.

“Angel investor groups invested significantly more capital in 2011 thanin 2010,” said NACO chair Michelle Scarborough in a news release.

“The 2011 data indicates a large growth in both the number ofinvestments (a 50 per cent increase) and value of investments (134 percent increase) from the previous year,” the study’s executive summarystates.

The average angel investment deal was worth $614,000 in 2011, up from$442,000 in 2010. The number of business plans funded as a proportionof those selected for detailed review jumped by 12 per cent. The numberof business plans funded as a proportion of those received overall roseby two per cent.

Information and communication technology (ICT) startups received 51 percent of all angel funding last year, followed by cleantech (21 percent) and life sciences (17 per cent). The average startup thatreceived angel funding inked an exit deal after an average of fouryears in existence.

The report, only the second detailed study of Canadian angel investmentever released, was funded by BDC Venture Capital and Industry Canada.

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