Financing Solutions for Startups: Part 1 – The Personal Route
Financing Solutions for Startups: Part 2 – Get a Loan
Financing Solutions for Startups: Part 3 – Federal Financing for Technology Businesses
Financing Solutions for Startups: Part 4 – Saskatchewan Agri-Business Tech Research & Development
Financing Solutions for Startups: Part 5 – For Indigenous Businesses
Financing Solutions for Startups: Part 6 – Grants
Financing Solutions for Startups: Part 7 – Angel Investors
This article covers what angel investors are and 3 great sources for angel investor financing for your business.
If you think you have used every opportunity available to build financing for your business, there is still a great opportunity with Angel Investors and Private Financiers that are ready and willing to invest in businesses at all levels. So, what exactly is an angel investor? They are an accredited investor who uses their own money to invest in a business. Think ‘Shark Tank’ and ‘Dragon’s Den’ as you pitch them your business and trade investment for partial ownership. There is fantastic value in these arrangements as you can be allowed buying power and mentorship that can really help your business succeed. Once an investor has “skin in the game” they are more likely to continue to help make sure it is successful. This is especially valuable with businesses that must maintain inventory and may need a line of credit in the future to protect cashflow. These are not a last resort resource but an opportunity that you should still seriously consider, as partial ownership and shares can be part of the deal.
Valhalla Private Capital, a full-service corporate finance firm, started with a single city angel investor group, Valhalla Angels, in 2003 and has grown organically to meet the entire lifecycle needs of both businesses and investors across the globe.
Today, the Valhalla Angels membership continues to grow, bringing a diverse group of investors together, from a variety of backgrounds and experiences who are looking to diversify their investment portfolio while supporting the start-up ecosystem.
Valhalla Angels have chapters in Calgary, Edmonton, Kelowna, Vancouver, Regina and Saskatoon.
National Angel Capital Organization (NACO)
Over the past 20 years, the National Angel Capital Organization, NACO, has emerged as an important part of Canada’s entrepreneurial and innovation economy. Through these endeavors, NACO’s membership of over 4200 angel investors, 45 incubators and accelerators, and 44 angel groups have increased access to capital for Canadian entrepreneurs changing the landscape of business. Over the past decade, NACO members have made investments in over 1500 companies totaling more than $1 billion, resulting in the creation of thousands of Canadian jobs.
Over the past decade the National Angel Capital Organization (NACO) members have made investments in over 1500 companies totaling more than $1 billion, resulting in the creation of thousands of Canadian jobs.
Angel Investment Network
The Angel Investment Network is an online network where you can connect with investors and get funded. They have over 273,874 angel investors using a platform that is for both Investors and Entrepreneurs.
The process is:
- Create a pitch: Add a pitch for your business using their online template. The on-screen instructions will guide you through the steps.
- Publish your pitch: When your pitch has been approved, it will be listed on the website for prospective investors to browse and evaluate. You can have your pitch emailed to investors and even send personalized messages to individuals.
- Connect with interested investors: If an investor likes your pitch, you will receive an email asking to connect. You’ll then gain access to their contact information to continue discussions, schedule calls, fix meetings and close the investment.
- Complete your fundraise: You can accept funds from investors at any time and you do not have to reach any funding target. Investors will transfer to you directly.
If you are considering contacting an Angel Investor, make sure you have created a solid business plan to present, along with a well-rehearsed presentation to help them believe in your great business. Be sure to check in on Part 8 when we discuss Venture Capitalists as another financing source for your business.