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Angel Organizations in the Entrepreneurial Ecosystem 4.4
A ngel organizations are embedded in their ecosys- tems and play a critical role in their functioning and effectiveness. They work collaboratively with ac- celerators and incubators and other organizations (e.g. business plan and pitch competitions) which are very often a significant source of deal flow, investing in their graduating and alumni companies. Members of angel organizations may also provide mentoring and other support to their client companies. Some angel organi- zations — those that focus on larger and later-stage investments — provide follow-on investments in com- panies that other investors in the ecosystem, such as
other angel organizations, have made. Many angels also co-invest alongside other investors, interacting with them at the selection stage, in some cases leading the investment and in other cases following the lead of others. And, as noted earlier, businesses in which an- gels have invested provide deal flow for venture capital funds. Angel organizations typically also work with ven- ture capital funds – both those in the local ecosystem and those in other locations. Several respondents noted that most — although not all — venture capital funds see angel-backed businesses as attractive investment opportunities.
2023 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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