Learn More about Becoming an Angel Investor
Angel investors are typically formally educated, high-net-worth individuals, who invest personal funds at arm’s length in businesses owned and operated by unrelated individuals.
Personal funds are invested on a long-term basis in exchange for repayable or convertible debt or equity in the company.
Profile of a typical Angel Investor in Ontario:
- Formally educated
- High net worth
- Former entrepreneur or business professional who can provide new firms with financing, contacts and business acumen
- Recognized by the Ontario Securities Commission as an “accredited investor”, as defined by the Ontario Securities Commission’s Rule 45-802, such as:
- An individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;
- An individual whose net income, before taxes, exceeded $200,000 in each of the two most recent calendar years, or whose net income, before taxes, combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years, and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
- An individual who, either alone or with a spouse, has net assets of at least $5,000,000; and
- A person, other than an individual or investment fund, who has net assets of at least $5,000,000, as shown on their most recently prepared financial statements.
For the complete list of definitions and other relevant information, please refer to the Ontario Securities Commission’s Rule 45-802 (National Instrument 45-106).
There is also an unofficial consolidation of National Instrument 45-106, effective October 5, 2016.