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A ngel organizations offer a variety of advantages for angels compared with investing independent- ly: gaining access to deal flow; increasing the ability for investment diversification; pooling the diverse set of skills, expertise, and experiences of members to en- able better due diligence and more effective support of investee companies; the ability to make more sizable and meaningful investments; and greater control over the businesses they invest in. Many organizations also provide their members with education and networking opportunities. Organizational Structure 2.2
Angel organizations take various forms. The most com- mon form is the member-based, managed angel or- ganizations in which the manager undertakes the ex- ternal-facing functions and coordinates the internal workings of the group. In some angel organizations, the manager is one of the group’s founding angels. In oth- er cases, the group hires a professional manager. One of their key roles is to undertake the initial screening of investment opportunities that the angel organization receives and deciding which of them have sufficient merit to be of potential interest to members of the or- ganization. Second, those opportunities that pass the
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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