Angel investors who fund start-ups hold a unique win-win-win position. In pursuit of higher returns, Angels subsequently fuel entrepreneurial spirit and propel society forward. It’s a cyclical wonder.
The Cyclical Wonder and Benefits of Angel Investing
Fuel Entrepreneurial Spirit
Keep the passion for entrepreneurship vibrant through Angel investing in start-ups while reinvigorating your own by taking part in a start-up’s journey.
Accept Risk and Pursue Greater Financial Returns
Assume a high risk when seeding a start-up as an Angel investor, in exchange for the possibility of high returns. Although that possibility exists, the associated intrinsic value ultimately entices one to become an Angel investor.
Give Back to the Community
Invest among start-ups in your local community to maintain, if not advance, its economic welfare.
Shape the Future Economy
Assess promising technologies of tomorrow, then mentor and/or sit on the board of a start-up to guide them to economic success, which also can produce investment returns for you.
The drive to help a venture derives from a passion for innovation and entrepreneurship, the opportunity to mentor, the responsibility to give back to his or her community and the desire to shape the future economy. Providing a monetary contribution from personal wealth affords Angels the opportunity “get back in the game” as a board member or observing advisor. If you are looking for another avenue to apply your expertise and share your experiences, while making a positive impact on tomorrow’s economy, contact us today.
Benefits of an Angel Group
The value of an Angel group is increasingly being recognized by Angels, who primarily join an Angel group to mitigate risk, save time, and attract better opportunities. The alternative is to be an independent Angel, which provides contrasting advantages. The Comparison Check List below is provided to illustrate the benefits of joining an Angel group. Simply go through the “Key Considerations” column and check off one of the corresponding statements in the “Independent Angel” column or “Angel Group” column that best match your preference.
If you’re ready to be part of an Angel group, the steps toward joining one is simple. Angels usually join the Angel group in their region but industry-based Angel groups also exist.
General Steps Towards Joining an Angel Group
- Find your region or industry’s Angel investor group
- A fee may be required
- Sign the group’s Accredited Investor Declaration Form
- To determine if an Angel Group exists in your region, refer to the Existing Angel Groups
- Attend the group’s meetings and hear from entrepreneurs
- Decide whether or not to invest, based on your own interest, capacity and research
FYI: It is possible to be a member of more than one Angel group. Some Angels, for instance, belong to a general Angel group and a sector specific one.
The assessment of any opportunity and the decision to invest, individually or alongside others, is made by individuals, not the group. The group’s role is to enable investor knowledge development and convene investors and entrepreneurs.
To help increase investment returns and to take on a bigger role, you also have the opportunity to volunteer to:
- Screen applicants
- Conduct due diligence research
- Participate in negotiations
- Mentor the entrepreneur
Join an Angel Group!
Contact the group directly or contact us to give you a referral.
Start an Angel Group
If an Angel investor group does not exist in your region or their members do not focus on your type of expertise…
You may want to start an Angel Group
Do you have an investment opportunity that may qualify for FedDev Ontario’s Investing in Business Innovation funding?
Then contact us!