Angels: the "Secret Sauce" behind Ontario’s High-Growth Start-Ups
Our friends at the Network of Angel Organizations – Ontario (NAO-Ontario) in Toronto have just unveiled their “Angel Network Activity” report for 2012-13.
Download the 2012 Report on Angel Investing Activity in Canada in full here.
This 2012 report indicates a 41% increase in direct member investment into 77 new Ontario-based early stage companies.
An angel investor or angel is an affluent individual who provides capital for a business start-up, usually in exchange for equity – an ownership stake. Sometimes angel investors organize themselves into angel groups to share research and pool their investment capital, as well as to provide advice to their portfolio companies. Angel groups bring together their members for educational seminars and networking events, and conduct community outreach, bridging the information gap between investors and entrepreneurs. The organized Angel investors in these groups have significantly helped many early-stage companies fill their initial round of financing.
In fact, since 2007 members of the network have invested and leveraged $255 million of private direct investment into 169 Ontario companies, creating and sustaining more than 2,200 jobs. This $255 million is composed of $91.6 million in direct member investment and $163.3 million in co-investment and follow-on investment by other investors.
According to Jeffrey Steiner, Executive Director of NAO-Ontario: “Entrepreneurs still need the private sector for the capital and expertise needed to commercialize. By supporting the [Angel] network, the government provides entrepreneurs an opportunity to attract growth capital from private investors province-wide.”
“Angel-backed companies illustrate small business job creation at its finest and catalyze significant economic development throughout Ontario,” NAO-O board Chair, Dr.Patricia Lorenz told us.
Because Angel investors are indispensable catalysts of economic growth by helping early-stage companies fill their initial round of financing, the findings of the report will be of particular value to the Cluster’s start-up clients and Members, many of which rely on Angel investors for early-stage investments.
This is the main reason that the Innovation Cluster has formalized a strong strategic partnership with PRAN, the Peterborough Region Angel Network (PRAN is supported by NAO-Ontario).
Today, the Cluster and PRAN are actively collaborating to help raise investment for innovative Peterborough-based start-ups and early-stage entrepreneurial companies.
If you have a pitch you want to make to the Angels, start here: https://gust.com/r/signup.
If you are interested in learning more about The Cube: Peterborough’s first best-practice technology business incubator for high-growth, high-potential technology start-ups, click HERE.
About NAO – Ontario
NAO – Ontario, a member of the Ontario Network of Entrepreneurs, is the Administrator of Ontario’s Angel Network Program, on behalf of the Government of Ontario. Since 2007 its mission has been to create and grow non-profit Angel investor groups for all the regions of Ontario. Building the membership and best practices of these groups builds a more potent combination of mentorship and capital for innovative start-up companies in the province. Angels are accredited investors who directly contribute both their money and their expertise into early-stage companies seeking growth in Ontario, leading to job creation and an expanding economy.
About PRAN
The Peterborough Region Angel Network is a privately driven initiative that brings together individual investors from the area. Peterborough Angels combine their wealth of knowledge and experience to collaborate and invest in early stage growth companies. Particular areas of focus for investment are green technology and life-science. Members are seeking involvement in challenging business situations and truly assisting client and community success. If you are an entrepreneur looking for funding, or an individual interested in joining the Peterborough Angels, please click HERE.
About the Greater Peterborough Innovation Cluster
The Innovation Cluster is a not-for-profit organization that exists to bridge the gap between scientific research and business by bringing together talent, knowledge, and investment to drive innovation-based economic growth and high-tech job creation in the Peterborough region.
We support our clients with partnership development; intellectual property protection; publicity; and access to public and private investment.
We also partner with academia and industry and provide support to start-up technology companies and entrepreneurs to help take innovative ideas and processes to market and to foster an environment fueled by innovation.
About The Cube: “incubating innovation, developing entrepreneurs”
The Cube is Peterborough’s first best-practice technology business incubator for high-growth, high-potential technology start-ups. With a mission to drive entrepreneurship, The Cube is Peterborough’s only incubation facility offering full residential and value-added business support services exclusively for early stage-stage and start-up technology companies. Helping new companies to get established, become sustainable, and then accelerate their growth, The Cube incubator program is aimed specifically at helping Peterborough’s entrepreneurs take the first step towards start-up success in the innovation and technology sector. To help these companies in their journey, the incubator provides access to office accommodation in a full-service suite; while also providing the tools, connections, training, education, coaching, mentorship, and professional expertise and services needed to be successful.
Interested in becoming part of this exciting new initiative?
Please contact the Innovation Cluster’s Commercialisation Officer, Joseph Miller at: jmiller@innovationcluster.ca or direct on tel. no.: (705) 748-1011 x 7081, for a confidential discussion and to request an Application Form.
