Benefits of an Angel Group
Angel investing goes beyond providing funds to start-up businesses. It is an opportunity to give back to the community and shape the future economy. Unlike venture capitalists, Angels sometimes become involved in the start-up businesses that they invest in. This difference is what makes Angel investing more rewarding.
By joining an Angel group you are able to leverage the knowledge and experience of other like-minded professionals when making an investment. The Spark Angel Network organization takes a systematic approach to screening the investee companies in order to mitigate risk when investing.
Collectively, they are able to supply many early stage and growth companies with sufficient capital and expertise to launch their businesses or growth them to the next stage of development. Angel investments can also qualify for a government match of up to 50% with non-dilutive debt financing.
Company needs $150k
Spark Angels invests $100k in equity
Government invests $50k in debt
The primary values of joining an Angel group is to mitigate risk, save time, and attract better opportunities, however there are many other benefits.
- Access to qualified deal flow both quantity and quality and through its member network.
- Systematic screening using a proven and robust process allowing members to focus on only the best opportunities.
- Privacy is maintained while the group has a public profile.
- Increased knowledge base to identify better opportunities with an increased knowledge and expertize from the group.
- Individual knowledge and skills can be leveraged to mitigate risk.
- Collaboration on due diligence to leverage the network’s experience and industry knowledge.
- Individual knowledge and skills can be leveraged to complete due diligence in specialized areas (i.e. intellectual property or deal structure).
- Greater control over the investment process.
- Ability to negotiate better terms (strength in numbers).
- Can individually invest less, but as a group invest more.
- Greater potential to diversify your Angel portfolio and reducing risk of investment losses.
- Collaboration and syndication with other Angel groups in Canada and Internationally.
- Oversight for deal structure, closings, and other legal requirements.
- Opportunity to grow network and contacts with a peer group of successful entrepreneurs and executives.
- Network organized to be eligible for Provincial and Federal grants to defray operational costs.
- Leverage your investment with non-dilutive Government funding