Case Study: Northern Ontario Angels
Canada has an extraordinary success story in Northern Ontario, with the local angel group there mobilizing over $130million in capital in a population of 780,000. We can learn from this success story and replicate it in ecosystems around the country. The following case study examines theapproachand results generated by the Northern Ontario Angels (NOA). Northern Ontario Angels hold the top spot in Canada for the number of investments made and the dollar value of those investments. In May 2019, USA based Angel Capital Association (ACA) 2018 Angel Funders Report named the Northern Ontario Angels as the number one Angel Organization in North America. Based on performance indicators, locations across Canada and around the world want to know how to replicate this underdog success story. Yukon territory was one of the first areas to actively pursue the development of an angel group based on the Northern Ontario model. Simultaneously, Yukon territory is exploring angel fund development and outside investor opportunities. Their efforts provide a road map for others to consider when adapting the NOA model in different geographic regions. Results produced by NOA have attracted interest from countries around the world. Support for both the NOA would not have been possible without the support from various levels of government. Supporting small- and medium- sized enterprises is a key strategy of regional economic development. Success across Canada will
require partnerships “with provincial, territorial and municipal governments and Indigenous partners, communities and governments”(9) . Angel investors, whether individually or as part of a network or fund, deliver real results and have proven their ability to exponentially increase the impact of financial support provided by the government. NOA launched in November 2005 and over the last 15 years, the not for profit corporation has delivered on it’s “goal is to stimulate increased investment capital into Northern Ontario companies to help them succeed…by improving the flow of investment capital, investment education, and management expertise into high-growth potential northern companies”(10). Since its inception, NOA has been instrumental in 344 deals being completed as of March 2020 with 48% in the technology sector. The companies received investments from NOA members valued at over 155 million dollars. The jobs protected in these investments include over 4,000 full-time and part-time jobs.
Northern Ontario Angels 800-1200 applications per year or 200-300 per quarter.
Early attempts to launch an Angel Group in Northern Ontario produced minimal results. Approaches used in densely populated, large urban centres simply did not work in Northern Ontario’s economic, demographic, and geographic setting. Several key changes were made to the “Bay Street” model.
(9) Minister of Economic Development and Official Languages Mandate Letter https://pm.gc.ca/en/mandate-letters/2019/12/13/ minister-economic-development-and-official-languages-mandate-letter (10). Northern Ontario Angels (2020). Organization. Retrieved on April 22, 2019 from http://www.northernontarioangels.ca/en/about/ organization/
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MOBILIZING ANGEL ACTIVITY IN YUKON
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