New programs will help plug the gaps in early-stage funding says National Angel Capital Organization
Canadian entrepreneurs should benefit from new programs designed to inform potential angel investors about providing early-stage capital for startups.
The National Angel Capital Organization (NACO) is expanding its investor education program in Atlantic Canada and providing extra support to grow the emerging trend within the private capital market of syndicated angel investing. By investing as part of a syndicate, investors spread their monetary risk and gain from the experience of others.
In 2018, total investments from syndicate deals was $262.7 million. This trend is expected to continue and is directly related to the evolution and increased sophistication of the angel investment asset-class in Canada over the past 10 years.
“A smooth funding continuum reduces frictions in the capital raising process, which allows entrepreneurs to better focus on building their businesses and avoid early exits,” said Claudio Rojas, CEO of NACO. “NACO remains focused on supporting early-stage capital for Canadian entrepreneurs. In activating more angel activity across both urban centres and emerging regional ecosystems, NACO’s programming has expanded to address the scale-up funding gap between angel and venture capital,” commented Rojas.
NACO is also opening a new regional headquarters in Calgary as part of its support for the western region, which its research shows has untapped pools of capital.
“Expanding angel activity will allow emerging ecosystems, including Western Canada, to successfully diversify their economies, promote inclusive economic prosperity, and benefit from growth in the innovation sector” added Rojas. “Enhancing national connectivity benefits entrepreneurs in all communities and regions across the country. Urban centres have an important role to play in flowing investment into non-urban communities.”
As well as increased interest in angel investing, Canada is also seeing strong venture capital investments.
Ontario success
Northern Ontario has successfully tapped its regional pool of angel capital and is home to the most successful angel investment group in North America, Northern Ontario Angels.
This leading group of investors have invested over $132M into entrepreneurial Canadian companies, the equivalent to unlocking $821 million in Alberta and $6.9 billion in angel capital across the country.
Ontario has cut back assistance for early-stage firms, so NACO is working to ensure a sustainable pool of capital in the region.
One of the most recently launched syndicates in Ontario is HaloHealth, a group of Toronto physicians, who invested in Vancouver-based CareTeam by providing funding to help build an AI‑enabled digital health platform allowing patient‑centered care collaboration for individuals suffering from chronic illnesses.
“We are pleased to support a newly formed angel group of Canadian physicians, HaloHealth. Recently accepted into NACO’s national network, the founding MDs behind this initiative are sharing their accumulated healthcare expertise to shape the future of our healthcare system,” said Rojas.
“We are pleased to support a newly formed angel group of Canadian physicians, #HaloHealth. Recently accepted into NACO’s national network, the founding MDs are sharing their accumulated healthcare expertise to shape the future of our healthcare system” comments @claudio__rojas 🇨🇦 pic.twitter.com/lQa9VRY7Re
— NACO Canada (@NACOCanada) February 1, 2020
