Successful Angels often syndicate deals and co-invest with everyone across this investment ecosystem, including internationally, with venture capitalists, Angel funds, founders and government programs.
The Canadian Early-Stage Investment Ecosystem We in Canada have perhaps the most stimulative government incentive programs in the world. The Scientific Research and Experimental Development (SR&ED Tax Incentive Program) tax credit pays back 65 cents on each dollar invested in research, and the Industrial Research Assistance Program (IRAP), the Ontario Centres of Excellence (OCE), and many other programs provide grants to develop new technologies. All together, these programs can add up to a stacking limit of 75% of all the costs of running a technology-based early-stage company. Some provinces also give the Angel investor direct tax credits. Our Investment Ecosystem Canada is one of the best jurisdictions in the world to invest in a new company. It is a great place to live, with safety and human rights. With a low rate of corporate taxation, solid intellectual property (IP) protection, low-cost currency, and great human capital, this is also a great choice of location to start a company. The Canadian Angel investment ecosystem is one of the most advanced in the world, with a wide array of players from which you and your investee companies can benefit. We not only have experienced Angels and Super Angels, but Angel group managers, Angel funds, Angel sidecar funds, government co-investment funds, and VC funds, as well as sophisticated banking and financial institutions. We have extensive government-supported and private-sector innovation centres, incubators, accelerators and business plan competitions. Canada has experienced serial entrepreneurs who have done multi-million dollar deals and lived in Silicon Valley. We have senior consultants, lawyers, accountants, limited market dealers and technology-commercialization experts. We have great human capital available with a world-class education system. We have an extensive system of tax incentives and government-support programs for early-stage companies. We do many cross-border deals with sophisticated US and global investors. And we have good access to public exit vehicles, such as capital pools, reverse take-overs (RTOs) and initial public offerings (IPOs). The current economic climate of low interest rates and stimulative government policies has boosted the Angel investment asset class. The Canadian ecosystem provides tremendous support for you and your investee companies, and this book will try to help you navigate this ecosystem.
18 A Practical Guide to Angel Investing
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