Federal Economic Development Agency for Southern Ontario

Federal Economic Development Agency for Southern Ontario

November 20, 2014 12:49 ET

FedDev Ontario Invests in Angel Organizations Across Southern Ontario

KITCHENER, ONTARIO--(Marketwired - Nov. 20, 2014) - Federal Economic Development Agency for Southern Ontario (FedDev Ontario)

Angel investors and businesses in southern Ontario will benefit from an investment of up to $3.35 million announced today by FedDev Ontario Minister of State Gary Goodyear on the occasion of the first-ever Global Business Angels Day.

Angel investors play a significant role in providing early-stage businesses with access to capital and coaching. This helps businesses to grow, create jobs and bring innovations to domestic and international markets.

Funding for the National Angel Capital Organization and the Network of Angel Organizations - Ontario will help to improve resources and share best practices for angel investing. In addition, funding for eight regional angel networks will help to improve services and tools for existing members and attract new ones. All of these activities will increase the pool of investment and mentoring support available for companies in southern Ontario.

Today's announcement builds on recent announcements of up to $1.725 million for four other angel networks in southern Ontario. This brings the total announced funding for angel associations and networks, through the second intake of FedDev Ontario's Investing in Business Innovation initiative, to up to $5.075 million.

Global Business Angels Day is part of Global Entrepreneurship Week, which is being recognized in 150 countries with roughly seven million people participating in events, activities and competitions that are building one global economic ecosystem.

Quick facts

  • In total, the 12 angel networks receiving funding through the second intake of the Investing in Business Innovation initiative expect to attract more than 575 new members and invest up to $116.7 million in up to
    366 companies. To date, these networks have invested more than $70 million in more than 180 companies.
  • Through the first intake of the Investing in Business Innovation initiative launched in October 2010, FedDev Ontario invested more than $3 million in 12 angel networks and associations. These networks have reported they were able to grow the number of registered investors from 283 to more than 1,000.
  • The National Angel Capital Organization 2013 Report on Angel Investing Activity in Canada shows that
    $89 million was invested in 199 deals by 29 Canadian Angel groups last year alone.
  • The Network of Angel Organizations - Ontario reports that between April 1, 2011, and March 31, 2014, more than $100 million in angel and co-investment into early-stage companies has been organized, and at least 1,600 jobs have been created or retained.

Quotes

"Through strategic investments in building the angel investor community, our Government is giving early-stage businesses the tools they need to create jobs, and bring growth and long-term prosperity to the region. FedDev Ontario has programming to support new entrepreneurs with great ideas who want to start a company; programs for existing businesses that want to expand, train their staff or enter a global supply chain; and initiatives for businesses looking to partner with post-secondary institutions. We are proud to be a key partner with angel investors in helping innovative businesses to grow."

- Gary Goodyear, Minister of State for FedDev Ontario

"Investing in Business Innovation has been a game-changer in the world of early-stage financing. It has incented angel investors to become more engaged with innovative start-ups and has allowed our organizations to build critical mass and momentum."

- Michelle Scarborough, Board Chair, National Angel Capital Organization

"In addition to helping build up Ontario's network of angel groups who are dedicated to investing their 'smart capital' into early-stage companies, the team at FedDev Ontario has also made a considerable effort to truly understand what entrepreneurs need to succeed. It's a privilege to work in concert with FedDev Ontario and to help enable new job creation."

- Blake Witkin, Chairperson, Network of Angel Organizations - Ontario

Related Products

Backgrounder: FedDev Ontario's Investments in Angel Networks and Associations

Associated Links

Investing in Business Innovation initiative

NACO's 2013 Report on Angel Investing Activity in Canada

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Backgrounder

FedDev Ontario's Investments in Angel Associations and Networks

To date, FedDev Ontario has invested up to $5.075 million in two angel associations and 12 angel networks through the Investing in Business Innovation initiative. This initiative is aimed at strengthening the innovation ecosystem in southern Ontario by supporting new entrepreneurs, early-stage businesses and angel investors.

Through these investments, the angel organizations will be able to grow the angel investor community in southern Ontario through outreach and capacity-building activities, as well as expanding the tools, services and best practices available for angel investing. Increasing the efficiency and effectiveness of angel investment in the region will support innovative businesses in the region looking for investment capital and mentoring support.

Angel Associations

Recipient Project Description FedDev Ontario Contribution (up to)
National Angel Capital Organization (NACO) is a national organization representing angel networks that was established in 2002. NACO accelerates a thriving, early-stage investing ecosystem in Canada by connecting individuals, groups, and other partners that support Angel-stage investing. NACO provides intelligence, tools and resources for its members; facilitates key connections across networks, borders and industries; and helps to inform policy affecting the Angel asset-class. Consult with experts and key stakeholders on practices and standards of angel investors, develop educational and promotional materials and deliver these practices and standards to members online and through local events in southern Ontario. This will lead to a more consistent quality and structure of angel investments, including terms, ownership, percentages, due diligence and company governance. $500,000
Network of Angel Organizations - Ontario (NAO - Ontario) is a province-wide organization supporting angel networks that was established in 2007 to deliver the Angel Network Program across Ontario. The organization helps attract private angel investors to fund early-stage companies which otherwise face challenges raising institutional capital. Improve membership recruitment and engagement practices of smaller and newer southern Ontario Angel networks. These angel networks are typically located in more rural regionals and have limited capacity to use social media and other engagement methods to attract experienced angel investors. $500,000
Total: $1,000,000

Angel Networks

Recipient Project Description FedDev Ontario Contribution (up to) Quote
*Angel One Investment Network was established in September 2011 and is located in Burlington. Its members have to date invested more than $15 million in 32 companies.

*Announced on October 14, 2014
Increase membership from 110 to an anticipated 210 members, resulting in up to 50 companies receiving $15 million over a five-year project period. $500,000 "This is an exciting time for Angel One. We are very pleased with this significant support as we grow our network and find innovative ways for our members, who are successful business people in their own right, to help young companies find the same success."
- Colin Wyatt, Chairman of the Board of Directors
Capital Angel Network was established in 2010 and is located in Ottawa. Its members have to date invested more than $9 million in 23 companies and have leveraged an additional $13 million. Increase membership from 60 to an anticipated 110 members, resulting in up to 40 companies receiving more than $20 million in new investments over a five-year project period. $500,000 "The Ottawa Angel community continues to invest in high-growth, early-stage companies, providing them with much needed growth capital which allows them to create jobs and grow their businesses locally, and abroad. This support from Fed Dev Ontario will help to broaden our impact, support the entrepreneurial eco-system, and further encourage investment in the Ottawa area."
- Parm Gill, Executive Director
Georgian Angel Network (GAN) was established in 2010 and is located in Collingwood. Its members have to date invested $3.3 million in 13companies and have helped leverage an additional $14.6 million. Increase membership from 16 to an anticipated 40 members, resulting in up to 20 companies receiving more than $2.5 million in new investments over a two-year project period. $200,000 "FedDev Ontario's support is crucial to the operation of Georgian Angel Network and we view FedDev Ontario as a core partner of GAN. We thank FedDev Ontario for contributing significantly to the growth of the start-up ecosystem in southern Ontario".
- Sandy Robertson, Managing Director
*Golden Triangle Angel Network was established in 2009 and is located in Cambridge. Its members have to date invested more than $19 million in 37 companies and have leveraged an additional $23 million.

*Announced on November 12, 2014
Increase membership from 100 to an anticipated 200, resulting in up to 100 companies receiving more than $40 million in new investments over a five-year project period. $500,000 "With FedDev Ontario's support, the Golden Triangle Angel Network (GTAN) has experienced unprecedented success in its first five years. GTAN thanks FedDev Ontario for the financial support it provides to our angel network, and commits to providing expanded services and funding to the early-stage ecosystem over the next five years and helps to bring renewed prosperity to communities in southern Ontario."
- Robert Douglas, President
Greensky President's Club (GPC) was established in 2013 and is located in Toronto. Its members have to date invested more than $2 million in 12 companies. Increase membership from 27 to an anticipated 70 members, resulting in up to 15 companies receiving more than $4.5 million in new investments over a three-year project period. $300,000 "The GreenSky President's Club is very pleased to receive funding support from FedDev Ontario over a multi-year period. We built the GPC to provide an innovative alternative to the standard Angel group model, providing serious early-stage investors with better quality deal flow and the increased probability of a successful exit through experienced, professional management. FedDev Ontario's support will allow the GPC to both increase the number of active angels who participate in the group as well as allow the GPC to connect with more high-quality early-stage companies in the Clean Tech and IT spaces."
- Michael T. R. List, Director
Maple Leaf Angels Corporation was established in 2007 and is located in Toronto. Its members have to date invested more than $10 million in 26 companies and facilitated more than $21.5 million in follow-on funding. Increase membership from 35 to an anticipated 75 members, resulting in up to 10 companies receiving more than $4 million in new investments over two-year project period.

$200,000 "Fostering innovation in Ontario and Canada is a responsibility shared by many that include Investors, Angel Groups and Government. MLA is leveraging FedDev Ontario funding to provide mentoring, education and many events that assist entrepreneurs to grow their businesses."
- Gerard Buckley, Chairperson
Niagara Angel Network was established in 2011 and is located in St. Catharines. Its members have to date invested more than $6.3 million in 14 companies, which has leveraged more than $30 million in additional equity and funding to those companies.
Increase membership from 52 to an anticipated 100 members, resulting in up to 42 companies receiving more than $10.5 million in new investments over a five-year period. $500,000 "Our members are a catalyst for economic development and investing in the growth of our Region. Thanks to the Government of Canada, the Niagara Angel Network can now expand its membership and support the growth of early stage companies. This provides us with an opportunity to develop not only new technologies and economic development, but the best young minds we have here in Niagara."
- Fred Davies, Chair
Peterborough Region Angel Network was established in 2008 and is located in Peterborough. Its members have to date invested $350,000 in two companies, leveraging an additional $500,000 in the Peterborough area. Increase membership from 18 to an anticipated 35 members, resulting in up to 6 companies receiving $500,000 in new investments over a two-year project period. $200,000 "This exciting announcement of funding will enable the 'Peterborough Angels,' along with our strategic partner the Greater Peterborough Innovation Cluster, to provide enhanced support for entrepreneurship and economic development in the region."
- Yves LaFortune, Executive Director
Southeastern Ontario Angel Network was established in 2014 and is located in Kingston. Increase membership from 10 to an anticipated 65 members, resulting in up to 21 companies receiving $4.2 million in new investments over a three-year project period. $225,000 "We have to capitalize on the many potential investors in this region who can contribute investment and experience to help build and grow new companies in this region. The Southeastern Ontario Angel Network (SOAN) will provide a vehicle and support to bring individual investors together and to leverage that investment and maximize its impact on growth in this region."
- John Molloy, Director
*Southwestern Ontario Angel Group was established in 2008 and is located in London. Its members have to date invested more than $4 million in 15 companies and have leveraged an additional $8 million.

*Announced on October 15, 2014
Increase membership from 65 to an anticipated 115 members, resulting in up to 40 companies receiving more than $10 million in new investments over a five-year project period. $500,000 "The FedDev Ontario Investing in Business Innovation initiative has been instrumental in increasing and accelerating the start-up and growth of early-stage technology-based companies. The support of FedDev Ontario has allowed SWOAG to increase membership, increase private sector investment in business growth and enhance our abilities to guide, mentor and advise entrepreneurs."
- Carmen S. Gicante, Managing Director
Spark Angel Network was established in 2012 and is located in Ajax. Increase membership from 16 to an anticipated 46 members, resulting in up to 12 companies receiving more than $3 million in new investments over a three-year project period. $225,000 "With this financial support and multi-year commitment from FedDev Ontario, the Spark Angels Investment Network will be able to accelerate its efforts in building an entrepreneurial culture within the Durham and Northumberland regions. We focus on providing start-up and growth capital to businesses built on innovation and sustainable growth technologies, businesses that can create high-value, knowledge-based jobs and opportunities for current and future generations of entrepreneurs within our community."
- Malcolm MacTaggart, Executive Director
*Windsor Essex Capital Angel Network was established in 2013 and is located in Windsor. Its members have to date invested more than $1.72 million in 12 companies.

*Announced on November 13, 2014
Increase membership from 11 to an anticipated 30 members, resulting in up to 10 companies receiving more than $2.5 million in new investments over a three-year project period. $225,000 "The Windsor Essex Angel Capital Network (WECAN) is extremely grateful for the funding being provided by FedDev Ontario. This funding will help WECAN meet its objectives to: disseminate information to angel members and community stakeholders; assist in fostering stronger relationships between entrepreneur and investor; and promote growth for seed and start up investment opportunities in Windsor and across southern Ontario."
- Omer L. Hageniers, Windsor Essex Capital Angel Network
Total: 12 Angel networks with 520 members, who have invested more than $70.67 million in 186 companies Up to 576 new members, who are anticipated to invest up to $116.7 million in up to 366 companies $4,075,000

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News Release: FedDev Ontario Invests in Angel Organizations across southern Ontario

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