Angel groups – Canada has numerous Angel groups across the country that provide a wide range of activities for their members, including: • Providing a public face to attract deal flow while enabling individual members to maintain their privacy • Marketing actively to solicit and manage deal flow • Meeting with entrepreneurs and screening potential opportunities • Providing standardized information sheets that allow Angels to quickly assess interest • Organizing investment presentations by prospective investee companies • Organizing, collaborating and tracking due diligence and successful deal closing • Providing software systems to manage deal flow and co-investment • Organizing regular meetings that provide a social network to facilitate camaraderie and sharing of common goals • Networking to find additional Angel investors • Arranging for professional management • Obtaining matching funding from government sources • Collective investing that results in companies raising more money, providing more economic power to the Angels, and increasing the likelihood of success for the investee companies (See the member directory at www.nacocanada.com for a list of Angel groups in Canada.)
An Example of How Angel Groups Can Work Productively Angel One Investor Network , based in Burlington, Ontario, has helped close over $18 million in 72 deals with an additional $27 million in government matching funds. Active participation is expected of Angel One members, with an annual minimum investment of $25,000 required.
The US Angel Capital Association (ACA) ranked the quality of these and other sources of deal flow as follows: 1. Referrals from other Angels in the group 2. Referrals from other Angel groups 3. University competitions and demo days at incubators/accelerators 4. Service providers 5. Syndication calls and events 6. Random submissions
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36 A Practical Guide to Angel Investing
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