Getting angel investment for your small business in Canada

Do you need to raise more funds than you can get through “love money” from family or friends, but don’t need as much as venture capitalists invest? Your small business may be ready for an angel. Angel investors are well-to-do people who invest money, usually their own, in start-up ventures. For that investment, they often get a portion of the ownership of the business.

So what do angel investors like?

  • A patentable technology or process
  • High-growth potential
  • A product or service with a distinct competitive advantage or very unique selling proposition
  • A strong team — preferably with experience

How to find angel investment in Canada

The secret to finding individual investors is through networking. Communicate regularly with business community members who are in touch with angel investors like lawyers, accountants, bankers and other business owners.

You may also want to investigate one of the angel networks that operate across Canada. Here are a few:

Happy pitching!

Share this post:

Thoughts on venture capitalists vs. angel investors

Our good friend Jim Estill, founder of Synnex Canada, wrote a great blog post weighing in on the differences between venture capitalists and angel investors. We agree – the lines between the two categories of equity (taking a piece of your business) funding are blurry.

However, to me the main difference between the two not mentioned by Jim is the “patience” factor. Angel money is patient money. Well, at least more patient than VC money. VCs want the big return – fast. VCs want the elusive five or ten time original investment return on their money. On the other hand, angels are satisfied with a longer payout and lower rate of return.

Great post, Jim, and good food for thought when it comes the different motivations behind angel vs venture capitalist investment! Check out Jim’s post here.

Share this post: