Introduction to Angel Investing

However, since 1 in 10 investments will create 90% of total returns, successful Angel investors take a portfolio approach. So to have a good chance of achieving those 27% returns, most Angels plan to invest in multiple companies and multiple rounds within companies. It’s better to invest $15k in 20 companies than to invest $100k in 3 companies. Who can be an Angel Investor? Many Angels are retired executives or “cashed-out” former entrepreneurs. They want to continue doing what they love without the daily stress of running a company. So they invest less than 20% of their assets in companies with whom they can have a long term relationship, add value and generate superior rates of returns. Getting Involved in a local Angel Group List of Resources Most Angels in Canada invest alongside other Angels and Angel Groups. The Canadian Angel investment eco-system is one of the most advanced in the world with Angel groups across the country that provide a wide range of activities for their members, including: • Providing a public face to attract deal flow while enabling individual members to maintain their privacy • Marketing actively to solicit and manage deal flow • Meeting with entrepreneurs and screening potential opportunities • Providing standardized information sheets that allow Angels to quickly assess interest • Organizing investment presentations by prospective investee companies • Organizing, collaborating and tracking due diligence and successful deal closing • Providing software systems to manage deal flow and co-investment • Organizing regular meetings that provide a social network to facilitate camaraderie and sharing of common goals • Obtaining matching funding from government sources

An Example of How Angel Groups Can Work Productively Angel One Investor Network , based in Burlington, Ontario, has helped close over $28 million in 72 deals with an additional $27 million in government matching funds. Active participation is expected of Angel One members, with average investments of over $200,000.

| Introduction to Angel Investing: How to Start