The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announces funding for 4 angel investment networks and 2 organizations representing the angel investment community through Investing in Business Innovation at the National Angel Summit in Ottawa. Source: FedDev Ontario
For immediate release
November 29, 2011
Ottawa, Ontario – Southern Ontario now has a stronger base of angel investment networks that will be able to connect more angel investors with the region's promising new businesses thanks to an investment by the Government of Canada. The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced support for the angel investment community during a keynote address delivered at the 2011 National Angel Summit today.
"Our Government is working to support angels from coast to coast to coast," said Minister Goodyear. "I think it’s clear that support for angel investors is a winning proposition: by unlocking investment capital, angels are helping us keep skilled workers and patents here, and helping to create sustained prosperity for our region and our country. This investment will attract new capital to our region, creating high-value jobs and long-term economic prosperity."
The Government of Canada will be contributing up to $2,016,563 to four angel networks and two organizations representing angel networks across southern Ontario. These investments will allow four angel networks, located in Cambridge, Collingwood, Kingston and Toronto, to expand their membership bases. In addition, the Ontario and national organizations will receive contributions to develop their online resources and perform outreach activities that will help recruit new angel investors from Ontario and outside the province, including foreign investors.
"The angel community has risen to the challenge of funding southern Ontario's most exciting growth-oriented companies during the recent economic turmoil," said Bryan Watson, Executive Director of the National Angel Capital Organization, organizers of the 2011 National Angel Summit. "The investment in southern Ontario's angel community by FedDev Ontario will help our region attract angels, local and foreign, and help them invest their dollars, expertise and networks in our next generation of growth companies."
Investing in Business Innovation is a direct result of feedback from business leaders, academics and community leaders from across southern Ontario, who suggested FedDev Ontario take a leadership role in encouraging entrepreneurs and investors to take the risks necessary to put southern Ontario businesses on the map.
For more information, please refer to the backgrounder.
Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit www.feddevontario.gc.ca or call 1-866-593-5505.
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For more information, contact:
Special Assistant – Communications
Office of the Honourable Gary Goodyear
FedDev Ontario is providing four angel networks and two organizations representing angel networks in southern Ontario with non-repayable contributions totalling up to $2,016,563 through the Investing in Business Innovation initiative.
Angel investors typically provide risk capital for businesses at their start-up and early growth stages, filling the gap between seed financing and venture capital. Since the late 1980s, angels have been forming groups and networks that have the benefit of being able to attract and mobilize greater funds than individual investors, as well as sharing the labour and risk associated with financing early stage companies.
The following provides details on the organizations and networks that will benefit from these contributions:
Contribution: up to $968,800
The National Angel Capital Organization (NACO) is a national not-for-profit organization representing angel networks, located in Toronto, that was established to provide angel investors with a secure environment to network and learn from their peers, as well as to be heard collectively on national issues. This investment will allow NACO to develop online collaborative tools, including an angel directory, co-investment opportunity database, standards and best practices e-learning modules, and a question and answer engine. In addition to increased awareness and education of angel investors and entrepreneurs, this project will help NACO attract greater angel investment from outside southern Ontario to the region. For more information, visit www.angelinvestor.ca.
Contribution: up to $847,763
The National Angel Organization – Ontario (NAO – Ontario) is a provincial not-for-profit organization representing angel networks, located in Toronto, that was established to deliver the Angel Network Program across Ontario. With this investment, NAO-Ontario will develop centralized online resources and services and hold educational and networking events. In addition to creating an increased investment pool, expanding geographic reach and enhancing industry expertise, this project will help NAO-Ontario link angel networks across Ontario with information and capital from other institutions, such as the Community Futures Development Corporations. For more information, visit http://nao-ontario.ca.
Contribution: up to $50,000
The Golden Triangle Angelnet (GTAN) is a not-for-profit angel investor network located in Cambridge that invests in promising, early-stage businesses operating in Kitchener-Waterloo, Guelph, Cambridge and beyond. With this investment, GTAN will be developing an interactive website, best practices training materials, recruiting and training seminars and reporting and monitoring systems. This will help GTAN increase its geographic reach and expand its industry expertise, membership and investment capital. For more information, visit www.goldentriangleangelnet.ca.
Contribution: up to $50,000
The Georgian Angel Network (GAN) is a not-for-profit angel network located in Collingwood that works to connect angel investors in the Georgian Triangle region (Owen Sound, Meaford, Collingwood, Wasaga Beach, Creemore, Midland, Barrie, Orillia, Bracebridge, Parry Sound and Huntsville) with entrepreneurs needing equity capital to commercialize their innovations. With this investment, GAN will continue to develop best practices & procedures and promotional tools, and perform outreach to investors and high-potential innovator-entrepreneurs. This will help GAN increase its presence in the catchment area and develop its industry expertise, membership and investment capital. For more information, visit www.georgianangelnet.ca.
Contribution: up to $50,000
PARTEQ Innovations is a not-for-profit technology transfer office founded by Queen's University. PARTEQ works with university researchers and the business and venture capital communities to bring promising discoveries to market, while returning proceeds to researchers and their institutions. This investment enables PARTEQ to support its angel network by developing an interactive website and promotional tools, and to offer investor information sessions. This will help the PARTEQ Angel Network to expand its membership base and investment pool, as well as expedite financing of spinoff and technology companies in the Kingston area. For more information, visit http://www.parteqinnovations.com/pan/.
Contribution: up to $50,000
York Angel Investors (YAI) is a not-for-profit angel network located in Vaughan that connects local entrepreneurs seeking early and mid-stage capital with local investors. With this investment, YAI will launch an outreach program to initiate a sustained sponsorship drive, which will increase membership and publicity for the network. This will help YAI increase its geographic reach and expand its industry expertise, membership and investment capital. For more information, visit http://yorkangels.com.
Investing in Business Innovation is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market. The Government of Canada is focusing on a portfolio of early-stage businesses that are recognized by the investor community as having the potential for high-growth and a net long-term economic benefit for southern Ontario.
Funding under the initiative is also available for angel investor networks and their associations to attract new investment and support the growth of angel investment funds.
Applications for funding are being accepted and assessed on an ongoing basis. For more information and to apply, please refer to the program guidelines available on the FedDev Ontario website at www.feddevontario.gc.ca.