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Angel One focuses on early stage companies based in Ontario with valuations of less than $3,000,000. Our members are looking for quality investments in which there is a clear and reasonable expectation of an appropriate return on investment.

Before applying, please consider the fact that the definition of ‘clear’, ‘reasonable’ and ‘appropriate’ is entirely up to them. You are asking them to invest their own money in your business. The only thing that will compel them to invest in your company is a clear, concise and well supported business case that can lead to growth in the business and a return to the investors. It is entirely their decision.

Sector / $ Invested in 2015

SaaS 35% $6,481,672
ICT 46% $8,518,769
Healthcare 4% $740,000
Clean Tech 13% $2,407,478
Industrial 2% $370,000
If you believe you have an investment value proposition the Angel One members should consider, please fill out an application form by clicking on this link to our ONLINE APPLICATION. No company will be considered unless the application form has been fully and accurately completed. All applications will be reviewed by Angel One staff within one business week of their submission. At that time an Angel One representative will contact you to discuss investment readiness and access to capital. This is a no cost service.

Vetted companies will then be put in front of an “Affinity Group”, a subset of Angel One members that have experience related to the industry of the applying company. It is this group that will make the final decision about whether the company in question is a good fit for Angel One and if they should be introduced to the entire membership. During this time the founders of the company will also be asked to provide background and credit checks to ensure that the quality of applicants remains high.

HOW IT WORKS

Companies that have been approved by the Affinity Group will move into due diligence with a lead investor. The company will also be given a date where it may present to the full membership of Angel One.

The goal is to have the due diligence almost complete and to have capital committed from the Affinity Group by the time a company presents to the full membership. This level of support helps close the round faster and will encourage members that are not experts in this domain to invest alongside the Affinity Group.

Angel One will track results with the subscribing company and investing members. These results will be submitted to the National Angel Capital Organization and the National Angel Organization-Ontario free of specific investor details.

If you are a growth company and are thinking about seeking outside investment, please feel free to begin the process by filling out our online application form.

Eight Things Angels Look For

 

Management Team

Angel investors look for teams of high-quality entrepreneurs with a track record of leadership and performance – either in the company’s specific industry or in prior entrepreneurial ventures. We also look at your team’s passion for and commitment to the new business idea, and your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As the investors will be working with you as partners, your team’s credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by angel investors.

Market Opportunity

Angel investors typically invest in solutions that address major problems for significantly large target markets (i.e. a $100+ million market). Your company must demonstrate a strategy to claim significant share of this market (i.e. 20%+). There are plenty of great business ideas – but not all businesses will generate returns that justify angel investor financing. Therefore, providing a solution to a problem with a large potential market is essential.

Use of Proceeds

Funds must be used to accelerate your company’s achievement of key milestones that increase the company’s value. Angel investors will fund activities that include research and product development, building a sales and marketing infrastructure and hiring key executives.

Growth Potential

Angel investors look for companies that can grow quickly and manage the scale necessary to succeed. Your company must demonstrate a plan to generate significant profits beyond the initial product idea. Do you have a strategy to achieve multiple sources of revenue? Investors also require well-conceived financial projections, based on sound assumptions, demonstrating consistent profits and cash flow growth.

Competitive advantage

Your company must have some proprietary features that distinguish you from potential competitors or provide barriers to entry that prevent other companies from capturing your customers with a similar offering. Attributes that convey competitive advantage include intellectual property protection, exclusive licenses, exclusive marketing and distribution relationships, strong brands, scarce human resources (i.e. knowledge and skills), and access to scarce raw materials.

Fit

Our group members – all accredited individual investors – have significant executive experience in a variety of fields. One of the benefits of working with angel investors is the active coaching and contact network that such investors can provide. As such, there must be a fit between members of our group members and your idea.

Technology

Angel investors typically prefer to invest in first-of-a-kind new ideas, rather than incremental enhancements to common products and services. Is this a nice-to-have, or a need-to-have product or service? However, we approach highly complex, esoteric technologies with caution. The concept behind the technology must be proven and verifiable. Few investors support science projects therefore your project needs to demonstrate a clear path to commercialization. Any breakthrough innovation must be accompanied by a strong business plan.

Exit Strategy

Our members typically seek returns of at least ten times their initial investment within eight years. This level of return on investment is essential due to the high risk and likelihood of failure among early stage ventures. Thus, a clearly articulated exit strategy – how angel investors will extract such returns – is essential. For example, do you plan to sell the company to an established corporation in your industry? Or will your exit be through subsequent rounds of financing – venture capital or the public markets? Angel investors are not just interested in the strategy you select, but more importantly in the how you will achieve your stated goal and some realistic indications in your business of how you will achieve the exit.