Bridging the Investment Gap Conference
June 13-14, 2001 Montréal, Canada
Conférence « Un pont entre investisseurs et PME »
13-14 juin 2001 Montréal, Canada
Angel’s Touch !!!
An Entrepreneur’s Guide
to Informal Investment
Angel’s Touch !!!
An Entrepreneur’s Guide to Informal Investment
Many great business successes like Bell, Bombardier and Nortel have one crucial thing in
common: They began with a good idea and a handful of people with the cash and the
confidence to get them started.
For as long as there has been commercial enterprise, there have been private investors
willing to inject their own money into promising new ventures. Long before a business
captures the attention of professional capital providers, it is the private, informal sources
of risk capital that plant the seeds of success.
This document aims at providing background information on "angel investors”, these
elusive individuals who are wealthy, have good business acumen and many business
contacts. They are an important source of equity financing for small businesses but they
are difficult to get at. Who are they? Where are they? How can they be identified? How
can you get them to invest in your business? In this paper, we will demystify these
Indeed, given the high level of financial risk inherent in small and medium-sized
enterprises (SMEs) in their early stages, informal investors, also called business angels,
are very often the only source of seed and start-up equity capital.
In Canada, there is no shortage of angel
investment funds. The challenge lies in
readying SMEs to approach investors, and
linking willing investors with able
entrepreneurs. And, with the importance of
SMEs to the Canadian economy, the
Government of Canada has an intense
interest in promoting that relationship.
That is why, under the Canada Community
Investment Plan (CCIP), Industry Canada
supported 22 demonstration projects that explored how communities could pull together
to facilitate access by entrepreneurs to informal early-stage investment in sma