NACO says investments across 38 angel organizations increased 27 percent in 2024.<\/p>\n
<\/p>\n
Angel investment activity in Canada in 2024 continued to rebound from post-pandemic lows, according to a report from the National Angel Capital Organization (NACO). However, the organization argues that the government must do more to incentivize early-stage investing.<\/p>\n
The report found that overall angel investment was $146.2 million in 2024, up 27 percent from the year before. Among associations that reported numbers in 2023 and 2024, total investments rose nearly 14 percent across 500 cheques written.<\/p>\n
Overall angel investment was up 27 percent in 2024 compared to the year before<\/p>\n
Colin Mason, emeritus professor of entrepreneurship at the University of Glasgow, authored the report surveying 38 Canadian angel networks. He warns that the numbers are a \u201csignificant underestimate\u201d of angel investment activity in Canada, as they only include investments made by members of official organizations, and other organizations don\u2019t report.\u00a0<\/p>\n
Across all organizations, the average investment per company was $245,237, while the median hovered around $111,000, up from $84,000 in 2023.<\/p>\n
To keep the talent and ambition of Canadian founders in Canada, \u201cwe must strengthen the infrastructure that enables it: the angel networks, pre-seed funds, and ecosystem partners that provide mentorship and capital to help ventures scale,\u201d Mary Long-Irwin, NACO board chair, said in a statement.\u00a0<\/p>\n
RELATED: Tech investor associations urge unified capital strategy ahead of budget<\/a><\/p>\n In NACO\u2019s view, strengthening that infrastructure comes through increased federal support. In its pre-budget submission<\/a>, the organization called for more money for early-stage investment and changes to tax structures.\u00a0<\/p>\n Among its requests are a $450-million early-stage matching fund program complementary to the Venture Capital Catalyst Initiative (VCCI<\/a>), delivered through a public co-investment model, with a focus on national defence and tech. It also recommends $200 million in operational funding for a new program that would support early-stage investment organizations like angel groups and pre-seed funds.\u00a0<\/p>\n On the tax side, NACO is asking for a capital gains reinvestment deferral and a 30-percent refundable National Investment Tax Credit for investments in Canadian-controlled venture capital (VC) funds or private placements.\u00a0<\/p>\n At the NACO Summit earlier this year, NACO CEO Claudio Rojas argued to BetaKit that a tax credit like this would \u201crequire, from a fiduciary perspective, all wealth managers to bring the [innovation] asset class to their clients\u2019 attention.\u201d Rojas encouraged \u201cbold leadership\u201d from investors and builders, while attendees told BetaKit that Canadian risk appetite needed to increase.\u00a0<\/p>\n NACO, founded in 2002, represents more than 4,000 angel investors and over 100 member organizations. According to the report, most association memberships come with a price tag of more than $1,100 per year. Women angels make up about 35 percent of membership, a slight decrease from the year before.\u00a0<\/p>\n According to the report, Canada\u2019s angel investing landscape diverges from its traditional venture investments, which have deflated since the highs reached in 2021<\/a>. In 2024, venture deals in Canada were on par with 2023\u2014a little more than half of what they were in 2021\u2014but the amount invested was propped up by a handful of megadeals<\/a>, per the Canadian Venture Capital & Private Equity Association (CVCA). In particular, pre-seed and seed funding deals have slumped<\/a>.\u00a0<\/p>\n The CVCA and NACO are aligned on certain demands from the federal government. The two associations sent a joint letter to<\/a> finance minister Fran\u00e7ois-Philippe Champagne arguing for a unified strategy to ensure that innovative companies have the funding required to launch and grow in Canada. The CVCA has been pushing for a renewal of the VCCI program to the tune of $1 billion, supported by an advertising campaign<\/a> on LinkedIn.<\/p>\n Feature image courtesy NACO.<\/p>\n","protected":false},"excerpt":{"rendered":"NACO says investments across 38 angel organizations increased 27 percent in 2024.
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