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Organizational Structure 2.2 A ngel organizations take various forms. The most common form is a member-based, managed group in which individual angels pool their resources to col- lectively evaluate and invest in deals. One or more man- agers — either a member of the organization or a hired professional — undertake the initial screening of the businesses that approach the organization for funding and coordinate the group’s activities. These organiza-
tions operate on a not-for-profit basis. Costs are cov- ered by membership fees and, in some cases, success or application fees from businesses that raise invest- ment from the organizations. In addition, service provid- ers acting as sponsors can serve as a source of income for angel groups. However, there is considerable diversi- ty among angel organizations’ practices. They typically focus on specific geographical regions.
2022 ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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