Canadian Angel Investors What You Need To Know

Before I tell you about Canadian angel investors, it is important that you fully understand the concept of an angel investor. Who or what is an angel investor? What do they do? How can they help you? If you are looking for answers to these and more questions, then here is a quick overview of angel investors.

Characteristic of an Angel Investor

An angel investor is someone who is a very wealthy, generally well educated person who is willing to invest their personal wealth or funds in startup businesses and firms.

The angel investor does not help the entrepreneur only in terms of monetary investment. They also have various contacts and connections which they place at the entrepreneurs disposal so that their business can grow fast.

Sometimes, the angel investor has had experience in setting up a business or industrial experience and they bring these to the table as well.

Angel investors fund your company in return for an equity share of your company. Many times, angel investors become a part of the Management of your company and they take an active hand in guiding the progress of your company. They also have a say in the day to day activities of your company (whether you like it or not!).

Before an angel investor decides to put in his money into your business, you have to draw up a really good business plan that will convince them of your business worth. That is a very important part of the plan. They will not invest in something they do not deem worthy.

Canadian Angel Investors

The Angel investment scene in Canada is very active. The National Angel Capital Organization is a mother body which has under its wing all thirty two organized angel groups in Canada. This body plays an active role in providing support for angel groups and determining the best practices to be followed for angel investors. They also help to establish international relations with angel investors all over the world.

However, unlike the organization it represents, NACO does not actively invest in any startup businesses. Canadian Angel investors like to invest in businesses that are closer home, like all other angel investors. Typically, angel investors invest in businesses located in a 150 mile radius from their centre of operation so that the entrepreneur in question can make good use of their connections.

Canadian angel investors have the benefit of the services of several angel investment groups which do a great job of matching the angel investor with a prospective startup company. They dont have to go out actively looking for business ventures to invest in. Perhaps these angel investment networks were set up to overcome the problem of inadequate networking between angel investors in Canada, in the past and boy, has that problem been overcome!

Angel investors in Canada are no different than angel investors anywhere else in the world. They just have the advantage of really good networking, so approach a Canadian Angel investor today and watch your business grow.