Different provinces and different Angel groups will have different preferred deal structures. In some cases, these are strongly influenced by government incentive programs or co-investment requirements. For example, in New Brunswick and Nova Scotia, the government will provide an investment tax credit as long as the investment is for common shares. As a result, many Angel financings in those provinces use common share structures.
Provincial Angel Investor Tax Credits
British Columbia Manitoba
New Brunswick Nova Scotia
Program Name Investment
Small Business Venture Capital Tax Credit Program
Small Business Investor Tax Credit
Equity Tax Credit
Capital Program
Amount of Credit
Refundable 30% 45%
30%
35%
Credit Limits
$60K per year
$67.5K per year Max $202.5K
Max $75K
$17.5K per year
Top Angel Group Canada’s top Angel group for number of investments the last four years is Northern Ontario Angels, run by Mary Long-Irwin. Mary says her members have never lost a dime from a business in Northern Ontario and have had their money at least returned 100% of the time. She achieves this because her deal structures often include secured loans, guaranteed dividends and significant government grants of up to $250,000 only available in the Northern Ontario region. Mary prides herself on being the exact opposite of the momentum investor – she performs extensive due diligence and reference checks before she forwards the potential deal to the investor. She also uses some of the toughest deal terms in Canada. The group does not hold meetings and Angels do not vote on which opportunities they like – Mary crafts each agreement herself and then invites Angels to join or pass on these pre-selected deals.
Top 5 Canadian Angel Groups by Number of Investments Made in 2016
2015 Rank
1
Northern Ontario Angels – Ontario
1
NEW
Open Angel Canada – BC
2
3
VA Angels – TEC Edmonton
3
2
Anges Québec – Quebec
4
4
York Angel Investors Inc. – Ontario
5
Source: Mason and Tjahjakartana , 2016 Report on Angel Investing Activity in Canada
How to Achieve Good Returns
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