Canada's Economic Action Plan

Canada's Economic Action Plan

November 01, 2013 10:00 ET

FedDev Ontario Helping Angel Investment Thrive in Southern Ontario: Study

KITCHENER, ONTARIO--(Marketwired - Nov. 1, 2013) - A new study by the National Angel Capital Organization (NACO) shows southern Ontario's angel investment sector is booming, thanks in large part to the efforts of the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and its Investing in Business Innovation initiative.

Investing in Business Innovation (IBI) is designed to help angel investor networks and their associations attract new investment and support the growth of angel investment funds, and boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market.

"This study shows that the Investing in Business Innovation initiative is having a measurable and positive impact for businesses in southern Ontario," said the Honourable Gary Goodyear, Minister of State for FedDev Ontario. "By encouraging greater investment in the innovations and ideas of entrepreneurs in southern Ontario, we are strengthening relationships between start-up companies, investors and our Government, and equipping businesses with the tools they need to succeed. This is creating jobs, growth and long-term prosperity for our region."

The NACO's 2012 Angel Activity Report identified several key trends in angel investments across Canada. The study noted FedDev Ontario has invested $1.375 million in 11 southern Ontario angel networks and $1.8 million in two organizations representing angel networks (the NACO and the Network of Angel Organizations-Ontario).

Of the 11 networks supported, three (the Golden Triangle Angel Network, Angel One Network and the Capital Angel Network) were in the top five in Canada in terms of number of investments and size of investments.

In January 2011, southern Ontario Angel Networks reported total investor membership of 270. Today these organizations have more than doubled their membership to over 600 registered investors.

These members have invested $65.9 million in small- and medium-sized businesses in southern Ontario, leveraging an additional $120.2 million in private sector and government funding. FedDev Ontario's IBI initiative was the top government leveraging program, according to the study.

"Angel investment has filled a larger role in both seed stage investment and growth stage investment and it has become increasingly more important in the investment capital eco-system," said Yuri Navarro, Executive Director, NACO. "FedDev Ontario's support through the Investing in Business Innovation initiative has played an integral role in expanding both the number of angel investors in southern Ontario and the amount of investment available for businesses in the region."

Investing in Business Innovation is one of FedDev Ontario's Southern Ontario Advantage initiatives. To date, over $450 million in funding has been committed to over 250 projects under the Southern Ontario Advantage initiatives, resulting in partnerships with more than 5,300 organizations, and over $1.2 billion in additional leveraged investments from almost exclusively non-government sources.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. In Budget 2013, the Government of Canada demonstrated its continued commitment to workers, families and communities in southern Ontario with the renewal of FedDev Ontario. Economic Action Plan 2013 provides $920 million over five years for the Agency, starting on April 1, 2014. As part of the renewal, FedDev Ontario will be allocating $200 million over five years for a new Advanced Manufacturing Fund in Ontario. To learn more, please visit or call 1-866-593-5505.

As outlined by the Prime Minister, the Government of Canada remains focused on what Canadians care most about: their families, the safety of their streets and communities, their pride in being citizens of this country, and their personal financial security.


This news release is available online at:

Contact Information

  • Stephanie Thomas
    Director of Communications
    Office of the Honourable Gary Goodyear

    Media Relations
    FedDev Ontario