Learn More About Angel investing

Angel investing goes beyond providing funds to start-up businesses.  It is an opportunity to give back to the community and shape the future economy.  Unlike venture capitalists, Angels are involved in the start-up businesses that they invest in.  This difference is what makes Angel investing more rewarding.
 

Angel Investors

Angel investors are typically well-educated, high-net-worth persons, who invest personal funds at arm’s length in businesses owned and operated by unrelated individuals.  The personal funds are invested on a long-term basis in exchange for repayable or convertible debt or equity in the company.

Profile of a typical Angel investor in Ontario

  • Well-educated
  • Has a high-net-worth
  • Former entrepreneur or business professional who can provide new firms with financing, contacts and business experience
  • Recognized by the Ontario Securities Commission as an “accredited investor” as defined by the Ontario Securities Commission’s Rule 45-802, such as:
    • an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1 000 000
    • an individual whose net income before taxes exceeded $200 000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300 000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year,
    • an individual who, either alone or with a spouse, has net assets of at least $5 000 000,
    • a person, other than an individual or investment fund, that has net assets of at least $5 000 000 as shown on its most recently prepared financial statements,

For the complete list of definition and other relevant information, please refer to the Ontario Securities Commission’s Rule 45-802 (National Instrument 45-106).  There is also an unofficial consolidation of National Instrument 45-106 incorporating changes through January 31, 2012.

 

The merit of Angel investing

  • Greater prospects for higher returns
  • Passion for innovation and entrepreneurship
  • Opportunity to mentor
  • Giving back to the community
  • Shaping the future economy