What Is So Special About Canadian Angel Investors?

Canadian Angel investors are many in number; thus, if youre an entrepreneur, based in Canada, starting out a new business venture, than you can get funding for your business quite easily. Why is that so? The scale of the Canadian angel investment market is a really big one. According to a recent survey, there are over 200,000 potential angel investors in Canada! Some of these considerable number, are people who are active investors, some, of course are potential investors who have the resources, interest and means to invest in startup businesses, but have not really done so yet.

The Canadian Take

So what, if any, is the difference between Canadian angel investors and angel investors based in USA? There isnt any. Both types of angel investors are looking to invest in companies or firms which have the potential to make it big in future.

In Canada, this network of angel investors is particularly well connected because, there are several services and networks available for the sole purpose of matching angel investors in Canada with companies that they should invest in. Many of these organizations are even nonprofit organizations, whose sole purpose is to match investors with potential companies.

These groups provide a great way to make alliances between angel investors and underfunded companies. Some of these networks in Canada require you to have an invitation to join them, others, of course have more lenient membership policies. Joining of these networks can prove to be very useful, both for an entrepreneur and an angel investor.

Angel Investors What They Want

There are niche angel groups. What do I mean by niche angel groups? Groups which have a specific target and focus, for example, you can present business plans or initial contracts even, to angels who invest in geographical area or the initial start up phase of a company. Dont try and woo other angels if you dont want to waste your time.

Angel investors will, no doubt have a say in the working of your company since a considerable amount of their money will go in to setting it up. How much of control they will have on your day to day operations will depend on the terms of the contract signed and the amount of money they pay. A key fact to remember is that angel investors want to see profit and your business to succeed as much as you do.

Because of this reason, you, as an entrepreneur should always be fully prepared to answer questions as to the allocation of funds. The bottom line is, angel investors expect you to use their funding to make the company a profit making organization in a relative short period of time.

But, Im not trying to scare you, just cautioning you that you must be extra careful with someone elses money. Angel investors are extremely active in Canada and on a yearly basis, about $ 3 billion are pumped into small Canadian businesses, so do take advantage of that fact and start soliciting a Canadian angel investor today.