Not every question or topic listed here will be relevant to all companies. But angels must quickly assess a founder’s stage of development and clarity of thought to determine whether to proceed to deeper engagement. This guide provides 15 themes—each with subpoints—that founders should be ready to discuss.
We also strongly recommend that angel investors and founders review the “Securities for Entrepreneurs” guide on the Angel Investors Ontario website.
The Founding Story & Motivation
Why did you start this venture?
What problem were you personally motivated to solve?
What industry insights or domain expertise do you bring?
What personal sacrifices or “skin in the game” have you made?
The Problem You’re Solving
What is the specific problem or pain point?
Who experiences this problem and how frequently?
Why is this problem urgent or valuable to solve?
What existing solutions do customers currently use?
Your Proposed Solution
What is your product or service?
How is it different or better than alternatives?
Is it a 10x improvement, or just incrementally better?
What traction, testing, or evidence do you have that it works?
Market Size and Opportunity
What is your Total Addressable Market (TAM), realistically?
What Serviceable Obtainable Market (SOM) are you targeting first?
Are there growing tailwinds or new trends (e.g., AI, reshoring, green tech)?
What initial niche can you dominate before scaling?
Business Model & Revenue Strategy
How do you make money?
What is your pricing structure?
What are your early revenue projections and assumptions?
Have you validated willingness to pay?
Current Traction
Revenue to date, if any—actual vs. projected.
Customer acquisition: paid vs. organic.
Pilot results, testimonials, or case studies.
User growth, engagement, or churn metrics.
Go-To-Market Strategy
How will you reach your early customers?
What partnerships, distributors, or channels are key?
What is your sales cycle, especially for B2B?
Are there unique or unfair advantages in your outreach?
Competitive Landscape
Who are your direct and indirect competitors?
What are your differentiators—price, speed, IP, brand, UX?
What barriers to entry exist in your market?
How do you expect competitors to respond?
Team Composition & Gaps
Who are the core founders? Backgrounds and roles?
Do you have tech, sales, and ops skills in-house?
What roles are missing, and when will you fill them?
How do you work together and resolve conflict?
Technology Stack & IP
What core technology do you use or own?
Is any of your solution patentable or protected?
Is there freedom to operate (FTO), or IP conflicts?
Are there key risks related to tech scalability or security?
Regulatory, Legal & Compliance Considerations
Are there licensing, safety, or regulatory approvals required?
Have you incorporated properly and assigned all IP?
Have you reviewed securities law with legal counsel?
Are you using exemptions appropriately when raising capital?
Use of Funds & Financial Projections
How much are you raising now, and for what milestones?
What is your runway with this capital?
What major assumptions underlie your projections?
When do you expect to be revenue-positive or break even?
Exit Strategy or Long-Term Vision
Is this a lifestyle business, or a venture-scale company?
Who are potential acquirers or exit partners?
Do you intend to raise venture capital, or remain bootstrapped?
What is the realistic timeline to a liquidity event?
Fit with Angel Investors
Why are you seeking angel funding vs. other types of capital?
What value beyond money do you hope angels will provide?
Are you aware of how angel groups screen, mentor, and co-invest?
Are you open to feedback and collaborative growth?
Ethics, Mindset, and Coachability
How do you handle failure or criticism?
Are you transparent about unknowns or pivots?
Can you show integrity in early partnerships?
Are you clear on your “why,” but flexible on the “how”?
A Note to Angels: Triaging with Empathy and Insight
When founders first approach an angel—whether at a networking event, pitch session, or through a referral—the goal is not to get every question perfectly answered. Rather, it’s to reveal the founder’s level of thinking, awareness of gaps, and openness to feedback.
Angels should also be informed:
- Most NFP angel groups operate under exemptions that require member investors to be accredited and follow strict securities compliance. Be mindful of for-profit “pay-to-pitch” models that may not adhere to Ontario Securities Commission (OSC) guidance.
- Many founders still don’t know that they cannot legally offer securities to friends, advisors, or investors unless done under proper exemptions. Encourage them to read the OSC and AIO guidance.
- Volunteer screeners and mentors need tools to assess startups quickly but compassionately, guiding founders toward other supports when they are not yet fundable.
Additional Resources for Founders and Angels:
- AIO: Securities for Entrepreneurs Guide
- NACO Academy: Investment Readiness Modules
- MaRS Startup Toolkit
- BDC and Futurpreneur: Financial Planning Templates
- BC Angel Tax Credit Program (Model of Interest)
Frequently Asked Questions (FAQ)
What should a founder do if they’re too early for angel investment?
Many early-stage founders approach angels before they have traction, a team, or a clear product. That’s okay—but they need to be honest about where they are. We recommend:
Joining an incubator or accelerator to refine your pitch, business model, and MVP.
Exploring non-dilutive funding like grants (IRAP, OCE, MITACS) to de-risk your idea.
Building a small network of advisors or informal mentors, including past founders and domain experts.
Attending angel group events (where allowed) to learn how presentations are structured.
How do angel groups in Ontario accept startups into their pipeline?
Each not-for-profit (NFP) angel group operates under a legal and structured intake process. Generally:
Entrepreneurs apply through a portal or submit a pitch deck to a program manager.
A screening committee, usually made up of investor volunteers, reviews the submission.
Promising startups are invited to a screening presentation, and if successful, may be invited to pitch to the full group.
Due diligence follows only if angels self-organize interest—it is not automatic.There is no “guaranteed” funding from pitching. Angels make individual decisions, sometimes co-investing as a syndicate.
Why can’t a startup just email pitch decks to dozens of people or use social media to attract investors?
In Ontario, the sale of securities is heavily regulated. Founders must rely on exemptions (e.g., Accredited Investor, Friends and Family, Offering Memorandum) under National Instrument 45-106.
A social media post offering shares or convertible notes is illegal unless it’s done under a prospectus or exemption.
The OSC’s “Finfluencer” publication outlines the risks and limitations of investment solicitation via social channels. Startups and angels should familiarize themselves with these rules to avoid enforcement issues.
How can an angel tell if a startup is operating inside securities law?
Key things to check:
Has the company incorporated and assigned all IP to the company?
Are they offering securities under a specific exemption, such as through angel groups where all members are accredited?
Are they collecting investor suitability forms or risk acknowledgments?
Is there a clear, signed subscription agreement and cap table?
When in doubt, refer the entrepreneur to a startup lawyer with securities experience. Angel Investors Ontario (AIO) also offers guidance and templates in the “Securities for Entrepreneurs” document.
What makes for a strong angel/startup relationship?
Trust, transparency, and clear communication. Good founders:
Are coachable but decisive.
Don’t hide bad news.
Follow through on introductions and advice.
Keep angels updated even when they’re not investing.
Good angels:
Respect the founder’s time and autonomy.
Provide warm intros and subject matter support.
Set expectations clearly—especially about when they are passing.
How do angels evaluate startups without revenue or customers yet?
Investors look for:
A compelling, clearly articulated problem.
Founders who are credible, committed, and ideally domain experts.
Signs of validation—customer interviews, prototypes, letters of intent.
Thoughtful, realistic go-to-market plans and milestones.
Even pre-revenue companies can be fundable if they show learning velocity, traction in user engagement, or partner interest.
What happens after a successful pitch to an angel group?
Interested angels will self-organize into a due diligence team.
The team may ask for more detailed documents: financial models, cap table, legal structure, contracts, and IP status.
Some groups use standard diligence templates (AIO and NACO provide examples).
If enough investors decide to proceed, a term sheet may be issued, and the investment is closed via a subscription agreement.
Can an angel invest individually without the group’s consensus?
Yes. Each angel is free to invest personally. However:
Investing outside of the group structure removes the shared due diligence and legal compliance protections offered by formal groups.
It may also impact follow-on capital if the startup needs to syndicate a larger round in future.
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