Mobilizing Angel Activity in Yukon and Emerging Ecosystems

PREFACE

that entrepreneurs need to grow and succeed, specifically in times of uncertainty. By developing an engaged and active angel investor community, we can equip Yukon entrepreneurs with the resources they need to thrive, positioning the territory for future prosperity and economic success. Dedicated and ongoing efforts will be needed to ensure that this community continues to grow and thrive. Entrepreneurs are the job creation engines of our local communities, bringing diversity to our economy, creating new solutions and commercializing big ideas. NACO is committed to supporting the development of a domestic supply chain of capital to fuel the growth and scale of Canada’s entrepreneurs. TOTAL This report brings together the insights and knowledge of stakeholders from across the innovation ecosystem with key action items outlined, providing a foundation to build upon. We are confident that Yukon is ready for a coordinated angel community and look forward to supporting this important work.

This report is being published at a time when Canada’s economy is under extreme pressure due to the impacts of the COVID-19 pandemic. Early- stage entrepreneurs are particularly vulnerable in times of economic uncertainty as they often take on more risk and may not have a well-established customer base when compared to more mature companies. In addition, the majority of funding options are not easily accessible to early-stage companies, particularly those that are pre-revenue. As the primary source of funding for early-stage entrepreneurs, angel investorswill play a critical role in supporting our economic recovery by ensuring that these entrepreneurs receive the support they need to create jobs in our communities and maintain momentum in our innovation ecosystem. Angel investors have not been spared the impact of the pandemic and early data collected by NACO supports the concern that financial constraints and market uncertainty may lead angel investors to make more conservative investment decisions or opt-out of the ecosystem completely. For example, 86% of NACO survey respondents expect that entrepreneurs will experience significant obstacles accessing capital over the next 18 months and more than half of the survey respondents reported an intention to decrease their total amount of funds invested in entrepreneurs. Among them, 67% intend to invest 26%-75% less than usual. Worse still, 10% of respondents report no intention to make new investments for the rest of the year. Although Canada’s northern communities have benefited from relatively low COVID-19 case numbers, instability of global markets and uncertainties may impact efforts to develop an angel investor community in Yukon. However, this challenge comes at a time when the importance of angel investors is more critical than ever before. Angel investors provide more than capital - they provide the network connections and mentorship 2010-2019 CUMULATIVE INVESTMENT

Sandi Gilbert Chair, NACO Board of Directors

Claudio Rojas CEO, NACO

5

MOBILIZING ANGEL ACTIVITY IN YUKON

Powered by