Become an Angel

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.

 

Key Considerations		Independent Angel		Angel Group
Time		I have or can make time to be heavily involved with investment opportunities.		I don't have a lot of time to dedicate to investment opportunities. Sharing the work effort such due diligence with other Angel investors is favourable.
Risk Tolerance		I'm highly risk averse and would rather focus on a small number of ventures.		I prefer to pool funds with other Angels, and be spread among several deals to diversify my portfolio and reduce individual risk.
Deal Flow		I only want to review one or two investment opportunities a year.		I'm interested in seeing a number of investment opportunities a year.
Privacy		I want to interact with start-up businesses directly and right from the get-go.		I'd like to remain somewhat anonymous during deal flows.
Structure		I can manage investment opportunities from end-to-end.  It would also allow me to go at my own pace.		I prefer a structured investment process.  Having someone else do administration allows me to focus on decision-making and mentoring.
Decision Making		I prefer to make decisions independently, which provides more control over the investment set of terms		I appreciate input from other Angels when evaluating a venture.  Investing under a single set of terms is not a concern.
Knowledge and Expertise (management and industry)		I'm confident that I could evaluate investment opportunities on my own and/or have sources that I could draw upon if required.		I enjoy working as a collaborative group.   Having the support from Angels with skills and/or expertise that are complementary to mine is an advantage.
Familiarity with Angel Investing		I'm a veteran Angel investor and enjoy operating independently.		I'm new or fairly new to Angel investing.  It would be beneficial to learn from experienced Angels.
Interaction with Other Angels		I prefer to operate independently and can reach out to other Angels as necessary.		I want to be part of a community of investors and have consistent opportunities to network.
Access to Resources		I have sufficient resources or can easily acquire them, such as additional funds, administrative support, etc.		I'd like to have ongoing support from a group manager and other Angels.  Being eligible for government, and co-investment programs is also important.
Attracting Entrepreneurs		I actively find entrepreneurs and prefer to initiate the contact.		I believe the credibility from being part of an investment organization attracts more entrepreneurs and better quality ventures. A website and other online presence make it easier for entrepreneurs to find Angel groups.

 

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

1. 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
2. Attend the group’s meetings and hear from entrepreneurs
3. 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!