204
Mobilizing Angel Capital in Southern Ontario
BY NATIONAL ANGEL CAPITAL ORGANIZATION
W hile Canada’s small and medium enterprise (SME) ecosystem may appear robust, American technology firms have access to over triple the growth capital Canadian technology firms do, when measured on a percentage basis against each dollar of early-stage capital these firms receive. In fact, 71% of Canada’s high-growth SMEs face headwinds in their ability to scale owing to a lack of growth capital availability: ham- pering Canadian SMEs’ ability to scale into large firms. 27
The widespread channeling of venture capital (VC) investments into later-stage, scale-up companies has created a funding gap in earlier-stage companies. One which angel groups are best suited to fill. With generous support from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), NACO is working closely with not-for-profit organizations across southern Ontario to remove barriers for local entrepreneurs and provide them with access to the capital, mentorship and growth networks that drive job creation and inclusive economic prosperity.
The COVID-19 pandemic revealed significant shortcomings in Canada’s startup funding landscape.
27 Innovation, Science and Economic Development Canada: The Innovation and Competitiveness Imperative: Seizing Opportunities for Growth, A Report from Canada’s Economic Strategy Tables
Powered by FlippingBook