Introduction to Angel Investing

1 How to Start

Introduction to Angel Investing 1 How to Start 2 Set Goals 3 Pick Good Companies 4 Make Good Deals 5 Grow Good Companies 6 Get Your Investment Back

Introduction to Angel Investing How to Start

What is Angel Investing? Once an individual has financial independence through sufficient income, real estate, mutual funds, publicly- traded stocks, bonds, T-bills and other public financial investments, they are called “Accredited Investors” and are eligible to make direct investments into Private Companies OUTSIDE of the normal Public Stock Market (such as Private Equity and other financial instruments open to High Net Worth Individuals making significant investments). Angel Investors are Accredited Investors that make their own direct investments (usually in a group) into a private company (usually a “startup”) in exchange for equity (common shares or preference shares), debt or other terms.

Why be an Angel Investor? Job Creation from Startups

537 currently active companies invested in since 2010 created 6,856 jobs as of 2016

$490 million in investment from Angel Groups resulted in $1.7 billion in revenues

Angel investing creates jobs and builds the economy. 98.2% of all businesses have fewer than 100 employees. When you add in medium-sized businesses (100 to 499 employees), the percentage rises to 99.8%. They are the engine of the economy and their success is vital to Canada’s prosperity (Government of Canada, nd). Angels invest in 27 times more startups than VC investors (NACOAcademy Module 101). The total size of the Angel asset class is now as large as the entire VC industry in Canada.

| Introduction to Angel Investing: How to Start