3 Pick Good Companies
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
Step 2: Pick Good Companies Venture Capital firms (VCs) look at well over 100 companies before they pick one to invest in. That’s their job. But Angel investing is not a job. In most cases, an Angel will piggy-back on someone else’s deal flow who spends a lot of time working in the startup eco-system. Hence the role of Angel Groups. In 2017, 43 Canadian Angel Groups pro-actively received and reviewed 8,529 formal applications of which 1,200 were selected to make a presentation to the Angel Group Members.
The Funding Success Funnel
8,529
1,200
482
Presentations Funded
Applications Due Diligence
448
Source: Mason & Tjahjakartana , 2016 Report on Angel Investing Activity in Canada
After each presentation, Angels in the room are asked if they are interested in working together to potentially invest in that company. In 2017, at least 482 of these pre-screened companies moved forward into the Due Diligence phase.
6
| Introduction to Angel Investing: How to Start
www.nacocanada.com
Powered by FlippingBook