Where can I find angel investors in Canada?

1. In Canada, several networks exist for the purpose of matching angel investors with entrepreneurs.  Angel Investors Canada is a nonprofit organization active in Ontario.  It exists for the benefit of both angel investors and entrepreneurs.  
2. The Vancouver Angel Technology Network is a small group of experienced executives that funds technology companies in British Columbia.  To become an investor, one must be invited or be referred. 
   
3. The Canadian Angel Investment Network is a web portal connecting angel investors with undercapitalized entrepreneurs. 
   
4. Finally, InvestAngel Network provides a way of creating alliances between investors and those with ideas from startups to marketing.  Some of these angel investor networks in Canada require an invitation to join, while others have broader membership policies.

In addition, many angel groups have a specific investment focus.  Business plans or initial contacts should be made to angels that invest in the geographical area and business sector of a startup company.  Soliciting other angels is a waste of time and energy.

At least $3 billion is invested in Canadian small business each year.  Entrepreneurs clearly can take advantage of the activity angel investors in Canada.

When is angel funding typically used?

Many times an entrepreneur cannot obtain traditional financing from banks in the necessary amounts.  They may even have good credit and income, but banks can be reluctant to provide the large amounts of funding to an individual starting a business.  On the other hand, individuals that could become angel investors may decide to invest in small businesses if their other investments like the stock market are not performing to expectations.  When these conditions occur simultaneously, they combine to provide a breeding ground for angel-financed deals.  Typically this occurs in the early stages of a company, though this is not always the case.

Where else can I find funding?

For home business owners, angel investing may be the only option for larger amounts of funding unless family and friends are able and willing to help.  However, relationships can be strained if money from family and friends is accepted and the business takes a turn for the worse.

How much will an angel participate in daily operations?

An entrepreneur seeking funding from an angel investor should realize that angels usually want to be directly involved in the business.  They may tend to behave as a business partner.  Most business angels have the knowledge and experience to help on a day to day basis if they so desire.  They simply want to see the business be successful quickly.  Because of the concern for profit, an entrepreneur should be prepared for any questions about use of funds.  The funding is expected to be used to allow the company to make big returns over a relatively short time period.  If a larger amount of funding is needed, then an angel network may be ideal.

Angel assets are an up-and-coming part of the financial order, similar in significance to venture capital in the Seventies, according to experts in the field. Angel groups are starting to be viewed with importance by the present financial companies.

An important angel investor group is the Band of Angels, a formal assemblage of 100 current and former high-tech executives who put in their time and money into fresh, progressive startup companies. Band members have established reputed companies like Symantec, Logitech, and National Semiconductor.

Angels are characteristically high-net-worth persons or "cashed out" entrepreneurs who are involved in nurturing other entrepreneurs and are vigorously associated with the ventures they support, both pre-funding and post-funding. Recently, a growing number of angels have come together to develop angel groups, with a view toward putting together capital and investment proficiency. There are an estimated 200 such angel investor organizations in the United States.

Angel investor groups have emerged as important participants in offering equity capital to early-stage ventures. Angels have developed from investing as individuals and at times fashioning informal groups for particular investments, to forming official groups with vigorous venture-capital-like procedures.

With the venture capital society becoming more complicated, angel investor groups have also changed according to the needs of the new situation. A majority of present day angel investors are highly enlightened about investments, due to the presence of experienced angel groups who have common performances.

Any individual angel investor can obtain an immense advantage from the group's expertise if he decides to become a part of a considerate group of angel investors.”

Sources:

www.angelinvestmentnetwork.ca

http://www.canadait.com/cfm/index.cfm?It=901&Id=1&Se=524,525&Lo=2