TORONTO – (COMMERCIAL THREAD) – New programs and increased support for connectivity between urban and emerging ecosystems are driving the growth of the National Angel Capital Organization (NACO) across Canada. This spring, the NACO will open a Western Canada regional headquarters in Calgary, Alberta. In addition, the Canadian Industry Association for Angel Investors is expanding its investor education programs in Atlantic Canada and collaborating on new programs with over 40 regional angel groups and over 45 NACO Network Innovation Centers. to support the emerging trend of syndicated angel investing.
New programs expand the activity of Canadian angels
NACO’s expansion to Calgary recognizes Alberta as an emerging source of seed capital for Canadian entrepreneurs. NACO data results indicate that Western Canada has significant pools of untapped capital. In global rankings, the 2019 Startup Genome report ranked Calgary and Edmonton as ecosystems that are in the early stages of emergence. Additionally, Vancouver is listed as one of the top 30 startup ecosystems in the world, despite the need to close the gap in seed funding.
“The expansion of angel investor activity will enable emerging ecosystems, including Western Canada, to successfully diversify their economies, promote inclusive economic prosperity and benefit from the growth of the innovation sector,” said Claudio Rojas, CEO of NACO. âImproving national connectivity benefits entrepreneurs in all communities and regions across the country. Urban centers have an important role to play in investing in non-urban communities.
In Atlantic Canada, NACO has a new program that includes the delivery of the NACO Academy throughout the region. A series of roundtable discussions with key stakeholders is planned to help establish a regional network of angel investors, which is essential to support entrepreneurs in Atlantic Canada.
Other regions that have successfully activated significant pools of angel capital include Northern Ontario, home to the most successful group of angel investors in North America. Northern Ontario Angels, the region’s leading investor group, has invested more than $ 132 million in entrepreneurial Canadian companies. This equates to unlocking $ 821 million in Alberta and $ 6.9 billion in angel capital across the country.
Watch the story of the Angels of Northern Ontario here.
Connectivity between urban centers and emerging ecosystems
Indigenous economic development is vital not only for rural and emerging centers across Canada for the sustainability of communities, it is also important both from a moral standpoint and for economic opportunity. Young, dynamic entrepreneurs from Indigenous communities have significant contributions to make to Canada’s growing innovation ecosystem. Increasing access to capital and connecting these entrepreneurs with investors will enable them to develop businesses that have a positive impact on their communities. This will create a stronger, more inclusive and vibrant economic landscape.
Canada’s leading innovation hubs also play a critical role in building links between angel investors and entrepreneurs. NACO piloted a new investment readiness program with Ryerson University. This education and mentoring platform will provide entrepreneurs from Canada’s main innovation hubs with access to angel investors.
As a national platform, NACO develops programs to support its more than 40 angel investor groups by ensuring that angel investor networks have the operational tools and educational resources they need to advance business. inclusive access to capital. Most importantly, NACO works with its members to ensure that its regional programming is responsive to the needs of entrepreneurs in their local communities.
New Trends Emerge with Nationally Focused Angel Investor Groups
In Ontario, NACO is working with regional angel investor groups to ensure the sustainability of angel investor activity following provincial cuts to early-stage innovation. This is important because angel groups attract and channel investments into businesses that will have a positive impact on Canadians from coast to coast to coast.
âWe are delighted to support a new angel group of Canadian physicians, HaloHealth. Recently accepted into the national NACO network, the founding physicians of this initiative are sharing their accumulated healthcare expertise to shape the future of our healthcare system, âsaid Rojas.
Toronto’s HaloHealth physicians have invested in Vancouver’s CareTeam. Co-founded by CEO Dr. Alexandra Greenhill, HaloHealth Physicians, alongside fellow NACO member, Montreal-based BCF Ventures, provided funding to help CareTeam create a digital health platform based on the AI enabling collaborative patient-centered care for people with chronic illnesses.
Angel investors in urban centers and across Canada have an important role to play in ensuring the continuity of the funding continuum. Entrepreneurs in all regions of the country benefit from national connectivity between angel investors from other regions, as this attracts greater levels of investment in high potential entrepreneurs.
New Trend in Angel Investor Syndication Fills Funding Gaps
A new trend is emerging around syndicated deals. National data indicates that these types of transactions have more than doubled since 2015. In 2018, total investments from syndication transactions stood at $ 262.7 million. This trend is expected to continue and is directly related to the evolution and increased sophistication of the angel investment asset class in Canada over the past 10 years.
Larger syndicated deals and follow-on investments between $ 500,000 and $ 3 million in funding serve as a necessary gateway to later stage capital for large-scale businesses. This trend highlights the critical role angel capital plays in filling funding gaps in the innovation ecosystem.
âA fluid financing continuum reduces friction in the capital raising process, allowing entrepreneurs to better focus on growing their business and avoiding early exits. NACO remains focused on supporting seed capital for Canadian entrepreneurs. By activating more angel activities in urban centers and emerging regional ecosystems, NACO’s programming has expanded to close the funding gap between angel investors and venture capital, âcommented Rojas.
NACO’s expanded programming, which includes the recently launched Built By Angels events, aligns with NACO’s mission to support the dynamism of angel activity in Canada by ensuring that Canadian entrepreneurs have access to capital throughout. the funding continuum.
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high resolution photo, available for download here.
– Photo caption: Claudio Rojas, CEO of NACO and Mary Long-Irwin, CEO of Northern Ontario Angels.
High resolution video, available for download here. Broadcast resolution version available upon request.
– Video caption: Interview between Mary Long-Irwin, CEO of Northern Ontario Angels and Claudio Rojas, CEO of NACO
In nearly 20 years, the National Angel Capital Organization (âNACOâ) has become the foundation of Canada’s entrepreneurial and innovation economy, as Canada’s national platform for regional collaboration and national connectivity. . NACO represents a growing membership of over 4,000 angel investors, incubators and accelerators as they help Canadian entrepreneurs access capital and mentorship to grow their businesses. Over the past nine years, NACO members have invested in more than 1,400 companies totaling more than $ 850 million in direct investment, resulting in the creation of 7,700 jobs in Canada. As a national platform, NACO enables national connectivity, regional collaboration and faster access to Canada’s innovation ecosystem. NACOCanada.com