What is an Angel Investor? Angels are high net-worth, accredited investors who use a portion of their investment portfolios to provide emerging companies with seed and start-up capital through direct, private investments. Their goal is to achieve higher returns than the typical public markets provide. Most angels are active investors – who contribute their time and experience, as well as offer introductions to valuable contacts essential to the company’s success – because they enjoy helping entrepreneurs grow their businesses. Most angels specialize in industries or technologies they understand, and invest only in companies within close geographic proximity. Angels may invest on their own, or with their peers, through an organized Angel Group.
Who qualifies as an “accredited investor”? (As defined by the Ontario Securities Commission – OSC)
– An individual who, alone or together with a spouse, owns financial assets worth more than $1 million before taxes but net of related liabilities
– An individual, who alone or together with a spouse, has net assets of at least $5,000,000.
– An individual whose net income before taxes exceeded $200,000 in both of the last two years and who expects to maintain at least the same level of income this year;
– An individual whose net income before taxes, combined with that of a spouse, exceeded $300,000 in both of the last two years and who expects to maintain at least the same level of income this year
– An individual who currently is, or once was, a registered adviser or dealer, other than a limited market dealer
– Financial institutions
– Governments and governmental agencies
– Insurance companies
– Pension funds
– Registered charities
– Certain mutual funds, pooled funds and managed accounts
– Companies with net assets of at least $5 million
– Persons or companies recognized by the OSC as an accredited investor
What is an Angel Group? Angel Groups are members-based not-for-profit organizations for accredited investors who live, work or have strong interests in a particular geographic area. These organizations provide investors with scheduled opportunities to assess quality, pre-screened, early-stage companies seeking capital; while at the same time expanding their network of fellow investors.
Does it cost anything to join an Angel Group? Yes, there is a nominal annual membership fee. Please email us for a copy of GTAN’s membership package (email@example.com); or call us with any questions. (519) 740 8500.