Ontario’s Startups Are at Risk – We Need Your Support
Ontario’s entrepreneurs and early-stage companies are the backbone of innovation in our province, yet the infrastructure that supports them is in jeopardy. Angel Investors Ontario (AIO) represents 18 not-for-profit angel groups, with 1,800 individual investors who collectively invested over $800 million into Ontario startups in just the first 10 years of our 18-year operation. These investments fuel job creation, innovation, and economic growth—but without critical infrastructure funding, this ecosystem faces collapse.
For a decade, Ontario’s government provided modest support to organized angel groups, leveraging an extraordinary $90 in private investment for every $1 of public funding. However, provincial support ended in 2019, and with FedDev Ontario’s recent funding now diminished, the angel investment network is at a crisis point. Without support, Ontario risks losing its next generation of high-growth startups to the U.S. and other markets.
We are not asking the government to pick winners and losers—that’s the job of our experienced angel investors. What we do need is infrastructure support to sustain the ecosystem that connects investors with promising entrepreneurs emerging from Ontario’s incubators, accelerators, and research institutions.
Why This Matters?
- Ontario’s Competitive Advantage is at Risk: Our angel investors take the first, most critical steps in funding high-risk startups before venture capital (VC) firms step in. Without them, the pipeline of promising startups will shrink.
- Economic Growth and Job Creation: Over the past 18 years, angel investments have helped create and retain 15,000+ jobs in Ontario. A thriving startup ecosystem attracts global investment and talent.
- Bridging the “Valley of Death”: Startups struggle to secure funding after their initial rounds from friends and family. Angel investors fill this crucial gap, ensuring startups don’t fail before reaching the VC stage.
- Leverage for Private Investment: AIO’s past funding model proved that every dollar in government support generated $90 in private investment—an unmatched return on investment compared to other economic development programs.
- Support for Government Priorities: Angel investment supports multiple government portfolios—economic development, job creation, small business, rural affairs, women’s entrepreneurship, immigration, and education. Without support, these ministries lose a vital partner in commercializing research and growing Ontario’s economy.
Our Ask
We are calling on the Ontario government to invest in our province’s economic future by supporting angel investment infrastructure through:
- $6 million over two years to sustain Angel Investors Ontario and provide sub-grants to regional angel groups.
- An Ontario Small Business and Innovation Equity Tax Credit—modeled after BC’s successful program—to incentivize early-stage investments in targeted sectors.
- An Ontario Angel Co-Investment Fund—seeded with $30 million—to attract global capital and de-risk investments in high-potential Ontario startups.
How You Can Help
We need Ontario’s angel investors, entrepreneurs, and ecosystem supporters to act. Reach out to your local MPPs and government ministers to advocate for angel investor infrastructure funding in the upcoming April Budget. Let them know that supporting AIO means supporting Ontario’s entrepreneurs, job creation, and economic growth.
Premier Ford and Finance Minister Bethlen Falvy must recognize that just as Ontario invests in roads and bridges, we must also invest in the financial infrastructure that fuels innovation. Without immediate action, our province risks losing its competitive edge and the talent we’ve worked so hard to develop.
The time to act is now. Stand with us and ensure Ontario remains a leader in innovation and entrepreneurship.
#BuildOntario #InvestInInnovation #AngelInvesting #OntarioStartups #CouncilofCanadianInnovators #CVCA
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