In recognition of the importance that the Angel community plays in the economy, the Government of Ontario has established a program to assist Angel investor networks in Ontario, the Angel Network Program (ANP). In addition, the Government of Canada, via the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), has funded the Investing in Business Innovation (IBI) program.
Angel Network Program (ANP)
The ANP serves to create new Angel Groups in Ontario where none existed, and foster their success with initiatives and information to transfer best practices from successful Angels.The program has six (6) main components, as follows:
1. Follow-on Funding Events
Follow-on funding events & activities are held to present follow-on investment opportunities, brought forward by Angel Groups, in collaboration with MaRS Investment Accelerator Fund (IAF), the Regional Innovation Centres (RICs), and the Sectoral Innovation Centres (SICs). The events usually arise from Co-Investment Summits, supported by Angel Investors Ontario, and showcase the ANP and/or supported Angel Groups in a particular region to independent Angel Investors or small Angel investing clubs.
2. Educational Workshops and Materials
Angel Investors Ontario develops educational workshops and materials based on topics that Angel Group managers have identified as of interest to them, their members, and/or their investee companies. Topics have or will include:
- Boosting group sustainability
- Using Gust, an online platform where entrepreneurs and investors can connect and collaborate on investment opportunities, for more efficient administration and investment activities
- New term sheet examples arising from investment experiences
- Assessing the intangible assets of a company
- Managing Angel Group due diligence processes more effectively
Angel Group managers, focused on operational issues such as membership development, look to ANP for resources that support additional operational success. The types of resources available include a directory of Angel Groups, textbooks of best practices, and an Angel Group start-up package.
New resources are developed on an ongoing basis, as required. Examples include:
- A directory of alternative or complementary funding sources for early-stage companies (Angel funds, FedDev Ontario, IRAP, etc.)
- More group start-up package elements, such as ‘how to grow and manage volunteer resources’
- Online resources to assess sector-specific interests and abilities among Angel Groups’ members, allowing sector-based referrals of opportunities and technical expertise (i.e. from SICs), among them
- An online form to self-qualify entrepreneurs for investment or other assistance
- Case studies of instructive Angel investment deals
4. Referrals of Qualified Opportunities & Investors
Angel Investors Ontario management and Angel Group managers take an active role integrating Angel Groups and activities with the Business Acceleration Program (BAP), which includes ONE Members and other stakeholders in the emerging-growth company community. Qualified opportunities and investors are:
- Companies that are not investment-ready, including but not limited to those that have applied to Angel Groups, are referred to BAP resources to increase their readiness;
- Investment-ready companies fostered by BAP to Angel Groups, on a sectoral or regional basis, for presentation opportunities, or to MaRS’ Investment Accelerator Fund (IAF);
- Successful entrepreneurs to Angel Groups as prospective members, or to BAP as prospective mentors or volunteers; and
- Accredited Investors that are not yet investment-ready to Angel Groups for orientation and development.
5. Referrals for Speakers
A number of Angels are available to speak at various events. If you would like an Angel to speak at your event, please contact us for a referral.
Sustaining Grants are available. Angel Groups that qualify are encouraged to apply. Grant recipients are selected by the Funding Assistance Committee.
Purpose: To assist qualified Angel Groups with educating and serving their growing membership more effectively, until they can reach self-sustainability.
Assistance Amount (Per Year): $25,000 to $50,000 (Annual application is required for reconsideration), call prior to fiscal year
Eligibility: Angel groups that have been operational for at least one year, incorporated as a non-profit, and comprising a critical mass of Angel investors. Preference will be given to community-based organizations that do not have other sources of provincial or federal funding (excluding FedDev or IRAP funding).
Criteria for Award:
- Investor-led decision-making and due diligence
- At least one year in operation
- Size of overall and active membership
- Investment record
- Movement toward sustainability
- Association with a RIC
- Affiliation of one or more Angel champions
To apply for a grant:
- Request an ANP Funding Application (FA) form from Angel Investors Ontario, after call for applications is announced;
- Complete, sign, and mail the FA form; and
- Receive confirmation from Angel Investors Ontario that your FA form is being reviewed by the Funding Assistance Committee (FAC).
To receive a grant:
- Your submitted FA form must be approved by the FAC; and
- Upon approval, you will be provided a Funding Agreement.
Do you have a question about the ANP grants that weren’t answered here? Contact Us!
Investing in Business Innovation (IBI)
Investing in Business Innovation (IBI) is a program run by FedDev Ontario to “foster a more competitive Southern Ontario economy by focusing on providing business support to new entrepreneurs, helping them transform their ideas into globally-competitive products and services, and increasing their access to private sector investment and advice.” The program provides two (2) types of funding that you, as an Angel investor, may qualify for:
- To assist early-stage businesses in Southern Ontario to accelerate the commercialization of new innovative products and services within three to five years (via a non-interest-bearing loan totalling 50% of eligible private investment); and
- To leverage Angel or Venture Capital investment in Southern Ontario (via support for non-profit Angel investor groups and networks).
Funds for Angel-Invested Businesses
The IBI program supports eligible early-stage businesses by matching qualified Angel investments for a repayable contribution to a maximum of $1 million per project, for up to one-third (33.3 percent) of eligible costs. Members of all ANP groups in Southern Ontario are considered to be qualified for this program.
Steps to be eligible to apply for matching funds:
- Determine your investment’s Eligibility for FedDev Ontario IBI Funding;
- Ensure that the early-stage business to be invested in falls within Early-stage Businesses that Qualify for FedDev Ontario IBI Funding;
- Fill out the Application Form and provide the required information. Please note that all Angel Groups must also be members of the National Angel Capital Organization (NACO) to be eligible to apply for matching funds;
- Receive confirmation from Angel Investors Ontario that your Angel Group members’ eligibility is active; and
- Send Angel Investors Ontario and NACO updates on a quarterly basis. The group representative must attest to the size (minimum of four) of the group, the processes, the intent to remit statistics to Angel Investors Ontario, the qualifications of the members, and any contact information changes while the group remains invested or interested in deals with FedDev Ontario matching funds.
Your group does not need to be incorporated for its members to apply and qualify for investment matching funds.
Only close the investment (signing the term sheet, etc.) after your application has been submitted to FedDev Ontario, and an application number has been received. You may close the investment before FedDev Ontario has approved the application for matching funds, but expenses incurred before FedDev approval are incurred at your own risk, in the event funding is not approved.
For more information, consult:
- FAQs about FedDev Ontario’s Investing in Business Innovation (IBI) program.
- FedDev Ontario’s website for the complete IBI Guidelines.
Do you have an investment opportunity that qualifies for Matching Funds? Visit this link.
Disclaimer: Angel Investors Ontario has no role in the acceptance of applications for matching funds, and this is provided for informational purposes only.
Funding for Incorporated Not-for-Profit Angel Investor Networks Located in Southern Ontario
FedDev Ontario also offers a grant to groups that are incorporated non-profits, and have been active for at least six months. The grant was developed to support outreach and promotion activities to attract investment.
Consult the FedDev Ontario website for details.
Disclaimer: Angel Investors Ontario has no role in the awarding of these grants, and this is provided for informational purposes only.