Angel Network Program (ANP)

The ANP serves to create new Angel Groups in Ontario where none existed, and foster their success with initiatives and information to transfer best practices from successful Angels.The program has six main components:

 

Follow-on Funding Events

Follow-on funding events or activities are held to present follow-on investment opportunities, which are brought forward by Angel Group managers, in collaboration with MaRS Investment Accelerator Fund (IAF), the Regional Innovation Centres (RICs)  and the Sectoral Innovation Centres (SICs). The events usually arise from Co-investment Summits supported by NAO-Ontario and showcase the ANP and/or supported Angel Groups in a particular region to independent Angel Investors or small Angel investing clubs.

 

Educational Workshops and Materials

NAO-Ontario develops educational workshops and materials based on topics that Angel Group managers have identified as of interest to them, their members, and/or their investee companies. Topics have or will include:

  • Boosting group sustainability
  • Using Gust to for more efficient administration and investment activities
  • New term sheet examples arising from investment experiences 2008-2011
  • Assessing the intangible assets of a company
  • Managing Angel group due diligence processes more effectively

 

Resources

Angel Group managers, focused on operational issues such as membership development, look to ANP for resources that support additional operational success.  The types of resources available include a directory of Angel investor groups, textbooks of best practices, and an Angel Group start-up package.

New resources are developed on an ongoing basis as required.  Examples include:

  • A directory of alternative or complementary funding sources for early-stage companies (Angel funds, FedDev Ontario, IRAP, etc.)
  • More group start-up package elements, such as how to grow and manage volunteer resources
  • Online resources to assess sector-specific interests and abilities among Angel groups’ members, allowing sector-based referrals of opportunities and technical expertise (i.e. from SICs) among them
  • An online form to self-qualify entrepreneurs for investment or other assistance
  • Case studies of instructive Angel investment deals

View Resources for Angel Investors and Groups in detail

 

Referrals of Qualified Opportunities & Investors

NAO-Ontario management and Angel Group managers take an active role integrating Angel Groups and activities with the Business Acceleration Program (BAP), which includes ONE Members and other stakeholders in the emerging-growth company community.  Qualified opportunities and investors are:

  • Companies that are not investment-ready, including but not limited to those that have applied to Angel Groups, are referred to BAP resources to increase their readiness
  • Investment-ready companies fostered by BAP to Angel Groups, on a sectoral or regional basis, for presentation opportunities; or to MaRS’ Investment Accelerator Fund (IAF)
  • Successful entrepreneurs to Angel Groups as prospective members, or to the BAP as prospective mentors or volunteers
  • Accredited Investors that are not yet investment-ready to Angel Groups for orientation and development

 

Referrals for Speakers

A number of Angels are available to speak at various events.  If you would like an Angel to speak at your event, please contact us for a referral.

 

Grants

Three types of grants are possible: Sustaining Grants, Start-up Grants, and Due Diligence Cost Coverage.  Angel groups that qualify are encouraged to apply.  Grant recipients are selected by the Funding Assistance Committee.

  Start-up Grants Sustaining Grant
Purpose To assist new Angel groups with initial establishment and development of the group To assist qualified Angel groups educate and serve their growing membership more effectively, until they can reach self-sustainability
Assistance Amount
(per year)
$5,000 on average
(one-time grant), annual application accepted once per year
$25,000 to $50,000
(an annual application is required for reconsideration), call prior to fiscal year
Eligibility New Angel groups.Funds must be used for operational costs associated with the initial establishment and development of new Angel Groups, such as insurance, a website, incorporation, a launch event, creation of by-laws and of financial records. Angel groups that have been operational for at least one year, incorporated as a non-profit, and comprise a critical mass of Angel investors.Preference will be given to community based organizations that do not have other sources of provincial or federal funding (excluding FedDev or IRAP funding).
Criteria for Award
  • Investor led decision-making and due diligence
  •  Minimum of ten members to start
  • Realistic goals for an initial activity and investment level that is sustainable by volunteers,
  • Plans for sustainability in the medium term
  • Prospective association with a RIC
  • Affiliation of one or more Angel champions
  •  Investor-led decision-making and due diligence
  • Track record of at least one year in operation
  • Size of overall and active membership
  • Investment record
  • Movement toward sustainability
  • Association with a RIC
  • Affiliation of one or more Angel champions

 

Due Diligence Administrator Support Program

Angel groups that are awarded a Start-up Grant or Sustaining Grant are also qualified to access the Due Diligence Administrator Support Program.

 

  Due Diligence Cost Coverage
Purpose To assist Angel Groups and lead-angels with some of the onerous aspects of due diligence.

Administrators will be present during the due diligence process to assist with the following:

  • Record due diligence meeting commentary and then distribute notes to all angels involved in a timely manner.
  • Ensure recorded information is stored within a safe and secure database (standards to be determined by NAO-Ontario).
  • Provide follow-up research regarding topics related to company under due diligence.
  • Provide assistance in development of a “company binder” for use by participating Angels.
Program Cost Due Diligence Administrators will be paid a fee of $300-500 per fully completed sessions with NAO-Ontario covering 3/4 of the total cost while the remaining 1/4 will be covered by the participating Angel Group.
Guidelines
  1. All participating Angel Groups will be provided with a digital information package that outlines the criteria of this program and that can be distributed to Lead Angels.
  1. NAO-Ontario must authorize the Administrator’s participation in a due diligence session. Any companies not authorized by NAO-Ontario via email will not be compensated by NAO-Ontario.
  1. It is the responsibility of the Angel Group to inform the Administrator directly of any changes made to due diligence meetings within 48 hours of scheduled meeting date. Failure to inform the Administrator may result in a financial penalty of $125.
  1. Each participating Angel Group must have a designated contact (i.e. Group Manager, Co-ordinator) to liaise with both the Administrator and NAO-Ontario.
  1. Administrators are required to submit weekly reports to NAO-Ontario regarding their activities.
  1. Administrators do not provide any opinions or advice with respect to the company subject to due diligence.

 

Apply for a Grant

Groups that have been operational for at least one year, incorporated as a non-profit, and comprise a critical mass of Angel investors, may apply for an ANP Sustaining Grant.  This type of grant is intended to assist qualified Angel groups educate and serve their growing membership more effectively, until they can reach self-sustainability.

To apply for a grant:

  1. Request an ANP Funding Application (FA) form from NAO-Ontario after call for applications is announced 
  2. Complete, sign and mail the FA form
  3. Receive confirmation from NAO-Ontario that your FA form is being reviewed by the Funding Assistance Committee (FAC)

To receive a grant:

  1. Your submitted FA form must be approved by the Funding Assistance Committee
  2. You will be provided a Funding Agreement

Do you have questions or concerns about ANP grants? Simply Contact Us!