C HAPTER 7: C REATING I NVESTMENT O PPORTUNITIES T HROUGH T HE SDTC
OPPORTUNITY FOR ANGEL INVESTORS Angel investors are often independent entrepreneurs with a tremendous amount of expertise that can help companies improve financial performance and protect their investments. They typically operate in the pre-VC stage, where there is a moderate level of investment risk. Although they have tended to operate as individuals, these investors are now beginning to create networks as a means of harnessing their collective talents and financial resources. Efforts to coalesce this pool of investment talent has recently culminated in the creation of the National Angel Organization (NAO) which seeks to maximize the value of this group - and of Canada - by bringing entrepreneurs together. There is an opportunity for SDTC and the angel investor community to work together for their mutual benefit. Angel investors need qualified deal flow; SDTC needs sound industry and financial expertise in the pre-VC area; and both work with the same groups of entrepreneurs. Each project that goes through the SDTC process is thoroughly screened for its technical, financial and market merit, resulting in a short-list of highly qualified projects. This pre-screening means that individual investors are in a better position to be aware of promising new technologies, which helps them make more financially sound and potentially more lucrative investment choices. Angel investors do not have the resources to assess the opportunities and conduct due diligence with the same rigour as SDTC, making this a significant value-add provided by SDTC. Further, because of its national scope and process for attracting entrepreneurs, SDTC has a “cross-country snapshot” of the multiple opportunities in Canada, enabling comparisons in and between technology groups. This is unique to SDTC and provides a particularly well-balanced and diversified set of opportunities for angel investors to consider. Although the exact means of collaboration have not been fully quantified, NAO and SDTC are clearly working together as agents of change to share risks and increase returns in the sustainable development technology arena. By combining their efforts and expertise, angel investors and SDTC will be able to enhance the likelihood of successful technology commercialization. This will go a long way to helping secure a strong economic future for Canada, while meeting environmental imperatives through sustainable development. SD technology is the emerging “best opportunity” for investors looking for new frontiers.
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