Concluding Thoughts
It truly has become the Age of the Angel. Angels and Angel groups have grown to become major players in the Canadian early-stage investment ecosystem, now investing in around 25 times more startups than the venture capital industry. As the asset class continues to professionalize and mature, we are now seeing Angels investing in Angel funds and so-called “accessible venture capital funds” as well. Whereas institutional and government investment in Canadian VCs has dwindled, Angels are stepping up to augment or replace these traditional sources of early- stage investment. Governments recognize the importance of entrepreneurship, innovation and a vibrant startup community, and Canada has grown to become one of the most investor- friendly jurisdictions in the world. This guidebook gives practical advice based on the expertise of Canada’s leading Angels, group managers, advisors, and experts in the field. It attempts to capture all of the most important things we know, or think we know, about successful early-stage investment by Angels. It references the latest research into how to structure your portfolio, how to screen deals and manage deal flow, how to conduct due diligence, how to structure deals, how to successfully grow companies, and how to create lucrative exits. More importantly, this book provides a practical guide that you can continue to use as you grow and learn as an Angel investor. It provides a guide to NACO Academy and its extensive set of educational modules. It provides a guide to what’s new in the entrepreneurship literature. It extensively references the common docs, templates, checklists and draft agreements available on the NACO website. Finally, it provides many reasons to get involved in one or more of your local Angel groups. If you do it right, and get a bit lucky, it’s hoped that this guidebook will help you achieve good investment returns. Statistics say that, if you invest with an Angel group and follow these recommendations, you have a solid chance of obtaining above-average market rates of return with your Angel investment portfolio. Plus you will benefit from many of the other rewards of Angel investing – giving back, paying it forward, mentoring the next generation of leaders, helping the economy, and making a difference! I hope to meet you in person some day at a NACO National Angel Summit, attending NACO Academy modules, or networking at co-investment events. If you have any feedback, questions or suggested improvements for future editions, feel free to email me at sgedeon@gmail.com.
How to Achieve Good Returns
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