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:
- National Angel Capital Organization
- Purple Angel
- Capital Connexion
- Angel Forum
- Angel Resource Institute