NACO World Angel Investment Summit in Toronto, Ontario. September 2018.
Second, were concerns about the quality of deal flow. Third, several groups raised the broader concern about their lack of resources – and hence personnel – which hindered their ability to recruit new angel investors, provide services to members and support their due diligence process and the post-investment management of their portfolios. The point was made that there are costs associated with running a professionally managed angel group; however, most angel groups are not financially self-sufficient in their current structure and therefore have to rely on volunteers who only have a limited amount of bandwidth to deliver many of the services. Some groups had experienced difficulties as a result of cuts in provincial government programs. The lack of resources to provide formal support for the due diligence process was a particular concern of several groups. Angel group leaders suggested that in view of the critical role that angel investment plays in supporting early-stage high risk ventures, that governments should increase their financial support for not-for- profit angel groups. Beyond providing funding to contribute to support- ing incremental project costs, participants also commonly supported the idea of tax incentives to stimulate more angel investment in recognition of its illiquid and high-risk nature. Respondents in Atlan- tic Canada emphasized that any tax incentives should be regional rather than provincial, with a view to encouraging investment into communities across the region.
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ANNUAL REPORT ON ANGEL INVESTING IN CANADA
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