172
GOVERNMENT SUPPORT FOR ANGEL INVESTING
A second way in which governments support angel in- vesting is by enhancing the quality of the investment opportunities available to angels. Clearly, initiatives to increase the supply of investment will be ineffective if there are insufficient investable and investment-ready businesses. Angel organizations variously reported that ‘some’, ‘most’ or in one case ‘all’ of the businesses that attracted investment from their members had received government support, notably in the form of non-dilu- tive funding. This largely comprised grants, loans and tax credits, notably the Scientific Research and Exper- imental Development (SR&ED) tax incentive, Industrial Research Assistance Program (IRAP), Input Tax Credit (ITC), and Ontario Centre of Innovation (OCI) funding. Atlantic Canada Opportunities Agency (ACOA) funding, Business Development Bank of Canada (BDC) loans, and Export Development Canada support were also mentioned. Firms typically raise this funding before ap-
their team, creating more capacity to undertake due diligence on businesses seeking funding, educational programs and growing their membership and thereby increasing investment. For many angel organizations, this funding was critical, enabling them to operate by covering day-to-day operations. Some angel organi- zations would cease to operate if government fund- ing ended as reflected in the following comments: • “Without the funding we would be unable to cover our operating costs and we would not exist.” • “Without these dollars we would not have been able to operate.” • “Without the funding our organization could not ex- ist.” • “Without government funding [we] would not sur- vive.” • “The grant allowed [us] to operate – minimally.”
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
Powered by FlippingBook