Issuu

OVER 160 YEARS OF SALUTING RISK TAKERS 25 Year In Memoriam

Donald (Ben) Webster

Ben Webster was a member of one of Canada’s most prominent families, the Websters of Montreal. He was an outstanding Canadian Angel Investor and early-stage Venture Capitalist, who began his investing career in high-tech (such as it then was) by introducing Velcro, a Swiss invention, to North America. This coup in the 60’s led him to raise $10MM and form the Toronto ﬁrm of Helix Investments in 1968, which invested in a number of predominantly hi-tech start-up companies in return for minority equity positions - a novel concept at that time. The young entrepreneurs Helix supported and invested in, now luminaries such as Dr. Michael Cowpland Ph.D, Sir Terence Matthews OC OBE FREng FIET, Moses Znaimer O.Ont., among others, and the companies they built, eventually became Mitel Corporation (56 locations, 6,400 employees globally at its peak), Newbridge Networks (ultimately acquired by Alcatel in 2000 for $7 BN), Corel Corporation (peak market cap of $2.8 BN), Cast Containers (multi-billion dollar shipping container concern), Hummingbird Communications (acquired by Open Text for $489

1930 - 1997

MM in 2006), GEAC Computers (sold in 2005 for $1 BN) and City Television/CityTV (ultimately acquired by Bell Globemedia in 2006 as part of a larger media portfolio for $1.7 BN), to name a few. He was also eclectic, keenly interested in all aspects of the paranormal and reincarnation - his oﬃce had a Stonehenge room; he co-founded and was a devoted Executive member of the Canadian Schizophrenia Foundation (CSF); he made massive early contributions to what is now commonplace: orthomolecular medicine in which nutrients, especially vitamins and minerals, are used to treat diseases; he received the Dalai Lama and also underwrote the unsuccessful search for buried pirate’s treasure on Oak Island, Nova Scotia - long before the TV show. He is to be remembered for his generosity, his intellectual curiosity, his accomplishments in many important areas over and above angel/venture capital investing and the accumulation of money, and most importantly, the unaﬀected manner by which he carried himself and respectful way he treated others - especially budding entrepreneurs.

He is Canada’s Original Angel Investor & Venture Capitalist.

XV STARTUPS

Breaking New Ground

Ontario Power Generation’s Jason Wight spoke to us about innovation, velocity and success.

XV FEATURE

Fifteen Years in the Making

STARTUPS

Starting From Scratch

Simply the Best

65 14

STARTUPS

Giving the Goods

What do angels look for before they get to the due-diligence stage? Seasoned investors told us what they want to see before investing in a company. INVESTING

Carla Carmichael, of the Canadian Centre for Nuclear Sustainability, says innovators are crucial for a net-zero future. Here’s how startups can help. STARTUPS

FEATURE

Eighteen of the province’s innovative and inspiring founders told us about their companies and their incredible angel journeys.

As Angel Investors Ontario marks a milestone anniversary, it’s time to look back at where angels in the province have been, where we are now and where we’re going.

Planning for a Cleaner Tomorrow

CONTENTS

Doubling Down on EarlyStage Investing

The Canadian Venture Capital and Private Equity Association’s Kim Furlong shares her thoughts on why early-stage investing is so crucial.

There’s plenty of support for founders and entrepreneurs in Ontario’s innovation ecosystem. We’ll help you figure out where to start.

INVESTING

STARTUPS

If you’ve considered becoming an angel investor but don’t really know what it entails, take heart. Here’s what you need to know, from A to Z, about all things angel investing.

Pitch Perfect

On the Side of Angels

Entrepreneurs must refine their stories and asks of investors. Some of the ecosystem’s best experts offer advice on how to formulate your pitch.

ANGEL INVESTORS ONTARIO

Making Collisions Happen The only event series that connects startups, angel investors, and customers Not just another pitch event series. Access IO has been designed to immerse founders with industry experts, potential customers, and angel investors in an evening of feedback, advice, and investments.

Check out all of our upcoming 2022 events and register to attend as an angel investor at AccessIO.ca

Interested in hosting your own Access IO event? Email us at hello@accessio.ca Access IO is a trademark of Kleurvision Inc.

XV INVESTING

Join the Club

Angel groups are so important to the innovation ecosystem. Read about what becoming a member means, and the benefits that await you when you connect with like-minded folks.

CONTENTS

FEATURE

Forward Thinking

106

Angel Investors Ontario chair Mark Lawrence dives into what’s top of mind for angels right now, and shares what will be important to investors in the near future.

FEATURE

Keep Watch

We’re keeping an eye on what’s hot when it comes to the industries angels are keen to invest in. Read about 11 companies that are doing amazing things in cool categories. INVESTING

Group Dynamic

Ready to join an angel group but don’t know where to start? Find the group (or groups!) in your area, and read about what makes each unique. INVESTING

Follow the Leader

We picked six of our favourite influential heavyweights in the ecosystem. Read their books, listen to their podcasts and take their courses if you’re looking for a leg up. INDEX

It Takes a Village

111

It’s never been more important to give back. Folks who’ve mastered the art of paying it forward spoke to us about why it’s so essential and how you can start giving today.

ANGEL INVESTORS ONTARIO

INDEX

Guiding Lights

114

There’s nothing like having a good mentor (and a good mentee can make it all worthwhile). We outline 40 do’s and don’ts to follow to foster a successful mentor-mentee relationship.

INDEX

The Science of Success

116

It takes more than hard work and a little bit of luck to accomplish your goals and achieve victory. We researched what you need to realize your dreams and reach your full potential. INDEX

Get Involved

120

If you’re a founder who’s looking for mentorship, guidance or assistance before you reach out to angel investors, check out our comprehensive list of innovation centres and other resources that can help.

SYNERGYLAB.CA

ISSUE 1, 2022

PUBLISHER

FRANK AUDDINO ASSOCIATE PUBLISHER

KATE TOMEN CHAIR OF THE BOARD, ANGEL INVESTORS ONTARIO

MARK LAWRENCE EDITOR-IN-CHIEF

LISA VAN DE GEYN CREATIVE DIRECTORS

BRIAN WARREN, PATRICK LYVER KLEURVISION INC.

CONTRIBUTORS

CARLA CARMICHAEL, JOCELYN ESCAMILLAN, ELLIOTT FIENBERG, KIM FURLONG, DANIELLE GRAHAM, CATHY HUTCHINSON, TAMAR SATOV, GERI SAVITS-FINE, JEFFREY STEINER, JASON WIGHT CIRCULATION

ROLTEK INTERNATIONAL INC. PRINTER

Mi5 PRINT & DIGITAL

XV is published by Angel Investors Ontario, copyright Angel Investors Ontario, all rights reserved. XV is the province’s only print publication that focuses on angel investing, entrepreneurship and the innovation ecosystem. Any copying or reproduction of this content without the written permission of XV is strictly prohibited. The publication does not assume liability for content. All editorial content is intended for information and entertainment purposes and does not supersede professional advice. XV is proudly printed in Ontario.

For editorial or advertising inquiries, please contact Kate Tomen at kate@angelinvestorsontario.ca.

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More Give Than Take I

’m going to tell you a secret: I never thought about Ontario’s innovation ecosystem until I found myself a part of it. As a journalist for major Canadian magazines for the past two decades, I’ve certainly written about inventive founders, ground-breaking products and cool services, but I’d never put two and two together. I didn’t realize Ontario had such a thriving innovation economy until an old boss and friend, Frank Auddino, contacted me about four years ago pitching a story on women founders in STEM for Canadian Living magazine. I’ve been working on various ecosystem projects since that story was published. Being an outsider has opened my eyes to what this ecosystem is built on: Entrepreneurs are getting smarter and more creative by the second, angel investors are founders’ unsung heroes and volunteering is widespread. In fact, volunteering is so prevalent that it’s one of the major characteristics that makes up the angel-investing landscape. Take Auddino. He is the volunteer publisher of XV, but that’s just one of the volunteer hats he wears. “I feel that if you’re going to be in the ecosystem, whether you get paid or not, you should support it and get involved in it,” he told me over Google Meets just weeks before we put this first issue of XV to bed. Auddino started out in the ecosystem not knowing a thing about angels. He was introduced to Spark Angels and ended up acting as its chair. He then decided to spread his angel wings and joined York Angel Investors, Peterborough Region Angel Network, Angel One, Golden Triangle Angel Network and Georgian Angel Network. His volunteering was soon something that others in the ecosystem took notice of. He and his business partner, Angelo Del Duca, became known as the pair early-stage startups get in touch with when looking for mentorship, help with business development, networking and introductions to angels. Auddino has a long list of volunteer positions, including ones at Spark Centre, Ryerson University, Queen’s University, 1855 Whitby, Innovation

ANGEL INVESTORS ONTARIO

Lisa van de Geyn Editor-in-Chief Photo by Liisa Sefton

Cluster, Brilliant Catalyst and so on — I could fill a page in this magazine listing his volunteer gigs. He’s the cofounder of the Investor Readiness Program with the National Angel Capital Organization; he’s the co-chair of Angel Investor Ontario’s (AIO) marketing and membership committee; he’s the cofounder of ACCESS IO Tech and Innovation Marketplace events; and he’s the chair of the membership and sponsorship committee of York Angel Investors. When I asked him why he does it, he smiled and said it all comes down to mentoring early-stage startups. He can’t pinpoint the number of founders he’s helped — there are too many to count. “I meet with two to three startups every day,” he says. “I volunteer for the startups, but I also do it for my angel brothers and sisters. I care about promoting innovation, driving growth and jobs and supporting my community. I care about being part of the founders’ journeys. One founder invited me to her wedding. It’s about making a difference.” There’s no doubt Auddino and angels like him make a difference. While I have you, I’d also like to congratulate AIO and its members on 15 successful years. Working on this celebratory magazine was special for me — this is an ecosystem that’s filled with passionate, thoughtful and remarkable people, and I was honoured to speak with dozens of investors and entrepreneurs for the stories that make up this publication. I know I can speak for the XV team when I say I hope you’re inspired by the stories in the pages that follow. Whether you’re an angel investor, founder or you’re considering joining this ecosystem, we hope you feel excited, motivated and empowered after reading this issue.

Lisa van de Geyn Editor-in-Chief

• • • • • • • •

• • • • • • •

Cheers to 15 Years

Mark Lawrence Chair of the board, Angel Investors Ontario (volunteer) Photo by Scott Lawrence

e need to celebrate that in Ontario alone, over the past 15 years since Angel Investors Ontario (AIO) was created, we have been a cornerstone of growth of Ontario’s innovation economy. We have nurtured, curated, supported, financed and effectively de-risked much of the initial investment risks of entrepreneurs to the stage where venture capitalist (VC) funds can step in. Teamwork is the best way to describe our success. Angel investors are typically successful entrepreneurs who want to use their acquired expertise and financial success to seed new growth in their local communities. There is, in my opinion, no larger group of accredited investors in the province who not only volunteer their time and mentor entrepreneurs but write early risk-on cheques. In 15 years, investment dens and tanks have become mainstream. They glorify the process but don’t show the real world, where a great deal of due diligence is performed freely by our angels before they agree to part with their capital. When I started investing in startups, pre-AIO, I only had myself to do due diligence and negotiate the deal terms. AIO has since professionalized the process of due diligence and deal syndication so that more startup pitches succeed with Ontario angels, and that technology can stay here to help all our communities. The AIO umbrella now covers 16 not-for-profit angel groups. AIO has pulled its weight in successful angel activity, compared to the U.S. Within the groups, comprising 1,600 accredited investors, we invested about $66 million in 2021 directly into startups. That was about one-tenth what the U.S. angel community invested, according to the Angel Capital Organization (250 groups and 15,000 accredited investors). I would like to thank the federal FedDev program in southern Ontario for its renewed financial support of AIO and the group’s infrastructure to help attract new angels from all age groups, areas of expertise and from a fully diverse and inclusive base, as we assist a similarly diverse group of entrepreneurs. I welcome potentially curious new and existing angel investors to read through our celebratory magazine of the first XV years to see what we have collectively accomplished, and to see how you can approach us according to your comfort level, learn and then participate in your first or fifteenth angel investment. I want to thank everyone in our ecosystem for their contribution to date and going forward. I thank our staff, volunteer directors and staff of XV for their continued excellence and enthusiasm.

A Note From AIO’s President It’s been a great pleasure for me to serve as the president and executive director of AIO for many of the 15 years we are celebrating. Support for innovation, job creation and economic growth continues to be top of mind for our provincial and federal governments, and through the funding that AIO receives, we continue to help our ecosystem grow. That said, it’s truly the angel investors who step up with their knowledge, networks, advice and financial commitments who help entrepreneurs from our communities succeed. The angels who participate in our groups fill the gap with crucial early-stage investment into startups that have game-changing concepts. These startups are literally creating the future for Ontarians, and many can’t make it without the support of angels. So how can you help? I ask that you engage your friends and business associates to consider joining an angel group this year. Bringing new accredited investors into the ecosystem will be rewarding for them and, together, we can help create more investment for companies that might not otherwise receive funding in time to compete and succeed. I’m proud of what our staff and board of directors have accomplished over the past 15 years, and I wish the AIO ecosystem further success in collaboration with our sponsors and government partners.

Mark Lawrence

Jeffrey Steiner

Chair of the board, Angel Investors Ontario (volunteer)

President and executive director

ANGEL INVESTORS ONTARIO

Breaking New Ground As someone who’s made innovation such an essential part of his life and career, Jason Wight knows firsthand how crucial it is to think differently and blaze new trails. Here’s what the chief information officer and senior vice-president of information technology innovation at Ontario Power Generation told us about innovation, velocity and, ultimately, success.

Jason Wight Photo by Tyler Knight

ANGEL INVESTORS ONTARIO

AIO XV

Photo by Kevin Bellrose

“If you are a startup and you’re not thinking differently about your product, you will not succeed.”

’ve always been passionate about innovation and invention. When I was a kid, I would frequently take apart my parents’ old electronics such as cassette players, radios and other pieces of machinery to figure out how they worked and determine if I could “Frankenstein” the pieces back together in a fun way that would impress my brother or make us laugh. My parents fostered my curiosity but casually observed that I was much more talented taking things apart than putting them back together. As I grew older, I turned my fascination with innovation into a career as an engineer, manoeuvering my way through a degree and eventually a job as a nuclear engineer at Ontario Power Generation. Twenty-plus years later, I’m still there — trying to find ways to reinvent the industry and support a technology that can help solve the global climate crisis. Throughout my career, innovation and “thinking differently” has been a significant part of my identity. The more I grew into leadership roles at the company, the more I realized the importance of innovation. I started practicing innovation at different levels and experimenting with new concepts and models. I explored innovation at the startup level, I explored innovation at incubators and labs, I explored innovation at a community level, and I explored innovation at the enterprise level.

ANGEL INVESTORS ONTARIO

The stark reality is this: The only real competitive advantage anyone has is their ability to innovate. Everything else can be replicated. If you’re a business that is not driving and fostering an innovative culture, you will underperform, and your employees will be uninspired. If you are a startup and you’re not thinking differently about your product, you will not succeed. In today’s hyper-social society where information travels at light speed and everyone is an expert, this reality has never been more apparent. But innovation alone will not breed success — the velocity of your innovation efforts needs to be extraordinary. Velocity is the result of both speed and direction. You must move fast, with a purpose, and have the agility to pivot in different directions as the winds change. Expanding your network and building relationships that accelerate “innovation velocity” are essential. Search for mentors, ask for help. You’d be surprised at what you may receive. There are more people in the world who wish for you to succeed than the opposite. Seek them out! And if you happen to have a kid who is curious, go ahead and let them take apart your old computer. x

Planning for a Cleaner Tomorrow Carla Carmichael, vice-president of nuclear decommissioning strategy at Ontario Power Generation’s Canadian Centre for Nuclear Sustainability, says innovators are crucial for a net-zero future. Here’s how startups can help.

Carla Carmichael Photo by David Leyes

ANGEL INVESTORS ONTARIO

AIO XV

Photo by Ali Kazal

“Together, we will find innovative ways to reduce, reuse and recycle, and pave the path forward to a net-zero future.”

limate change is one of the biggest issues facing humanity right now. It’s absolutely clear we need to find innovative ways to reduce carbon emissions. Nuclear power, including new generation, will be key to achieving those crucial net-zero goals. The work we are doing at Ontario Power Generation’s (OPG) Canadian Centre for Nuclear Sustainability (CCNS) will enable that growth, by creating an environment that spurs and nurtures innovators. The CCNS brings together industry, Indigenous communities and other community partners, and homegrown talent to find innovative solutions to ensure nuclear energy always remains a benefit to future generations. Together, we will find innovative ways to reduce, reuse and recycle, and pave the path forward to a net-zero future. A significant part of our role is to stimulate innovation to build additional sustainability into the nuclear life cycle, especially as it relates to the Pickering Nuclear Generating Station end of commercial operations and eventual decommissioning. To that end, CCNS has established an annual innovation fund for new research and development projects that will help prepare for decommissioning and advance solutions for minimizing nuclear materials and recycling clean materials. The ideas, techniques and solutions that come from these projects will help reduce timelines and costs for the decommissioning project, enhance employee safety, minimize nuclear materials, and ensure the safety of the community and environment.

ANGEL INVESTORS ONTARIO

One example of how that funding is being used: We recently entered into a collaboration agreement to study techniques to minimize and reclassify nuclear by-products that would improve safety, schedule and reduce overall decommissioning costs. This study will look at using a portable processing system to process liquid waste, such as used oils and solvents. The modular design would reduce the amount of equipment needed by using a single system in multiple locations. It would also reduce the volume of by-products through the decontamination process by concentrating the materials into fewer packages, resulting in lower environmental impact. This is just one of several leading-edge projects being brought to fruition through CCNS and the innovation fund. It’s the kind of innovative thinking we’re looking for to tackle technical challenges. As owner of the largest CANDU reactor fleet in Canada, OPG has an incredibly unique opportunity to lead our industry in creating safe, sustainable solutions for the end of the nuclear life cycle. In our Climate Change Plan, OPG pledges to achieve net-zero as a company by 2040 and act as a catalyst for efficient economy-wide decarbonization by 2050. Clean, safe, reliable nuclear power plays a central role in that effort. But we know we can’t do it alone, and that innovators and startups will play a key role in bringing fresh ideas and new ways of thinking. Acting as an innovation hub, the CCNS will bring the experts together to ensure the sustainability of nuclear power through its entire life cycle and help pave the path for future clean technology. x

RBC Dominion Securities Inc.

Proud to be a longtime supporter of the startup community

For over 25 years, Wealth Advisor Jay Kilgannon has served the community – helping investors, families and businesses build and preserve their wealth. Jay Kilgannon, BA (Hons), FEA, FCSI, CIM, CIWM Senior Portfolio Manager, Investment & Wealth Advisor 905-434-5399 | jay.kilgannon@rbc.com www.jaykilgannon.com

RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence. ©2022 RBC Dominion Securities Inc. All rights reserved. 22_90522_FPY_001

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Starting From Scratch

Lisa van de Geyn

ANGEL INVESTORS ONTARIO

Photo by Cunaplus_M.Faba

Founders of startups, unite! Whether you’re at the idea stage or looking for next steps to help you scale, we’ve got you. There’s a ton of support in Ontario’s innovation ecosystem and we can point you in the right direction.

“Everything seems to take longer than anticipated. Patience is a must with any startup.” Quincy Emmons

Photo by Pixabay

cofounder, FireRein

ireRein was born a decade ago when a group of firefighters saw an opportunity to create something new: They wanted a firefighting product safe enough for both humans and the environment. The team had discovered that the “green” firefighting products they were using contained harsh, toxic chemicals, despite claims that they were biodegradable and harmless. They made it their mission to come up with a safe solution and partnered with academics and scientists to ultimately discover Eco-Gel. “There are growing concerns regarding the use of firefighting foams, as they’re made of ‘forever chemicals’ that cause cancer and other serious health concerns. This doesn’t just affect firefighters; it impacts the communities where these products are used, as they contaminate drinking water and impact fish and wildlife,” says Quincy Emmons, FireRein’s cofounder. Eco-Gel is a certified 100-percent bio-based concentrate that,

when mixed with water, makes a hydrogel that sticks and stays where it’s applied, making it an impressive firefighting and fire-prevention tool. In those early days, Emmons and his cofounders knew they were onto something, but they didn’t quite understand what they were in for. Emmons now says he wishes he had “a better understanding of the time frame it would take to develop, optimize and validate our product. Eco-Gel is a major disruptive technology and the validation process required finesse to reach our goals. Everything seems to take longer than anticipated. Patience is a must with any startup,” he says. It’s true. You might be an entrepreneur reading this right now who has a brilliant idea — a product or service that could be an absolute game-changer. But do you know where to start? Here are some avenues you can look into, and routes you should take to start your business off on the right foot.

ANGEL INVESTORS ONTARIO

Photo by Dani Hart

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Startup Canada Google “how to start a startup” and you’ll literally find billions of results, from Forbes magazine’s “Complete 35-Step Guide for Entrepreneurs Starting a Business” to blog posts on becoming an entrepreneur — no money or experience required. But you’ll also find Startup Canada, the organization that connects Canada’s entrepreneurs with the support, tools and community across the country they need to start and build their business, says Kayla Isabelle, Startup Canada’s CEO. “We’re truly the entry point for founders and have flagship programs that are about curating experiences and making it easier for

ANGEL INVESTORS ONTARIO

founders to navigate the process and start their business.” (The flagship programs include Startup Women, Startup Communities and Startup Global.) At Startup Canada, the first place a founder should look is the Business Owner’s Toolbox, affectionately dubbed “BOT.” “If your business is in its infancy, BOT is the foundational support entity that can help you understand how you need to build a business. It gives you everything, including explanations about what it means to incorporate, what a domain is, how to understand insurance — those foundational questions are all solved through that platform,” says Isabelle. BOT is comprised of nine modules — starting with pre-launch, sales and marketing, human resources, pitching and shipping, to name a few — each packed with resources to help you on your journey. You can register at startupcanada.ca.

“It’s never too early to connect with an innovation hub,” says Connor Loughlean, the manager of creativity at Ontario Tech University’s Brilliant Catalyst hub in Oshawa, Ont. “Getting started in the world of entrepreneurship can be overwhelming, and it can be difficult to choose between the number of programs and supports that exist within the ecosystem. The positive side to having so much choice is that there is almost certainly an innovation hub in your area that’s ready to support your entrepreneurial journey.” You’ve probably heard about innovation hubs, business incubators (programs that give early-stage companies access to mentorship, investors and support to help them get established) and business accelerators (for startups that are past the early stages of getting established and still need some guidance and peer support), but it can be tough to know where you fit in. At Brilliant Catalyst, founders can expect to join a community of like-minded folks. “Across all our programs, we strive to build an engaging community of entrepreneurs and change-makers to ensure all of our members get the most from their time with us. From our experience, having a community of founders to learn, fail and grow together is one of the best ways to encourage growth and innovative thinking,” he says. Brilliant Catalyst offers specifically designed programs aimed at propelling the next generation of innovators. The Brilliant Incubator Program, for example, is a four-month program designed to provide founders from all stages and industries with the basic fundamentals needed to start and grow their businesses. Spark Centre is also in Oshawa, Ont., and it’s a business incubator and innovation hub that’s stage-agnostic — its team supports entrepreneurs from the idea to scale stages. Michelle Shurland-Jadoo is the director of client services and opera-

tions, and says Spark Centre offers programs that are tailored to companies at various stages, traction and needs. “Our education programs cover fundamentals and action plans in sales, marketing, market intelligence services and finance. These preliminary/refresher master classes are the path to receiving one-on-one advisory, which helps propel traction,” she says. “Advisers are experts in business and provide guidance, market insight and resources toward ultimately scaling the business. Companies are also enhanced through marketing and design, as well as publicity opportunities.” For founders who are in the hardware technology and enterprise software industries, ventureLAB is led by seasoned entrepreneurs and business leaders who have extensive experience in building startups, scale-ups and global multinationals. (It runs the Hardware Catalyst Initiative, Canada’s only lab and incubator for hardware and semiconductor-focused companies.) Based in Markham, Ont., founders must meet certain criteria to be eligible for ventureLAB’s programs and services. “For us, that means they must have some market traction, be incorporated in Canada, have a business number from the Canada Revenue Agency and be coachable,” says Justine Kintanar, the vice-president of external relations and communications. “Each year, ventureLAB selects more than 100 ventures to join our hub of founders. We take no equity in companies accepted into our programs, and founders join small cohorts to receive tailored, dedicated guidance to navigate their unique business challenges. We offer a coveted combination of business and technical expertise, connections to a global network of partners and mentors, access to our 50,000-square-foot facility and a $7-million world-class lab to drive innovations from prototype to product.” Wondering if there’s an innovation hub near you? You’re likely in luck — there are hubs, incubators and accelerators across the province. Flip to page 120 to find a comprehensive list.

ANGEL INVESTORS ONTARIO

Photo by ThisIsEngineering

Innovation Hubs

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Pro Tips

Photo by Kampus Production

Warren Patterson, CEO and cofounder of OrderEase, an end-toend networked B2B order management platform enabling both the demand and supply sides, offers three pieces of good advice to founders.

Reach for Success FireRein was founded by firefighters, who by their own nature, are resilient, hard-working problem-solvers, says Emmons. That said, it won’t surprise you to learn that it takes more than grit and hard work to make it in the startup world. Founders like Emmons often cite perseverance and selfdiscipline, but still, there’s more to it. Spencer Turbitt, CEO and cofounder of iApotheca Healthcare, a pharmacy software company specializing in healthcare technology, says some traits that he feels contribute to success are “the ability to make quick decisions and problem-solving with positive outcomes, motivation to succeed at what you’re doing beyond that of the financial incentive, and time management and prioritization.” “A strong, diverse, coachable team is important,” says Kintanar. “Diversity of thought and perspectives is key to building a globally successful company, along with tenacity and resilience. You won’t always get the answer you’re hoping for but being able to turn those into new opportunities is key to success.” Startup Canada’s Isabelle says clarity of vision is a must. “Understand what you’re trying to accomplish. It doesn’t have to be fully baked, but you need that North Star that you can always come back to,” she says, adding true-rooted confidence is crucial. “When things get shaky, are you going to have the courage to stick with it? Will you navigate the ups and downs and be that champion and leader you need?” Finally, says Loughlean, there is the need for creativity. “It’s at the heart of everything entrepreneurs do. From creating a business model to using creative marketing strategies, the creativity of a startup is what sets them apart from the competition,” he says. “If you look at some of the most successful startups in Canada, it will become apparent that creativity is a common trait found in almost all of them.” x

ANGEL INVESTORS ONTARIO

Surround yourself with the right folks. “There are three types of people: builders, operators and workers. I’m a builder, so I had to make sure I filled in the holes and got operators and workers on my team. It’s key to make sure you have people who aren’t the same as you working with you. Leverage your network — it will elevate you from a startup to a base operating company.”

Have the drive, dedication and devotion to what you’re doing. “Perseverance is everything. If you don’t persevere, you’ll fail. I thrive on risk, uncertainty and challenge. This is so important for a founder.”

Form a strong business base. “It starts with your product. Don’t listen to people when they ask you why you didn’t do this or that faster. Make sure you take the time and ensure what you do is right. At the end of the day, that’s the base of your business.”

Pitch Perfect I

t sounds like a startup founder’s worst nightmare: Right before getting up to pitch a panel of angel investors, another team of entrepreneurs presents essentially the same concept. Even worse, the investors don’t seem too keen on the product, an educational coaching system. And yet, when the panel hears pitch No. 2, the mood shifts and the angels are far more enthusiastic. What did the second pitch have that the first one didn’t? “The first team made the classic mistake of pitching the wrong person,” says Kevin Smith, founder of The Story Architect, which helps startups and tech firms craft their story and the perfect pitch, and then deliver the story to the market. Smith saw both teams present back-to-back at an accelerator event. “They did what I would call a really good product pitch — here’s the problem we’re trying to solve and how we built the product — but that’s how you pitch customers, not investors.”

Tamar Satov

The second team, on the other hand, told a story about a specific customer they helped, then focused on the size of the market, their go-to market strategy, what they had done to build the business and why it was working. In other words, they spoke to the angels’ potential return on investment. “Some founders think it’s all about their idea — if they have a great idea, they’ll get the funding,” says Smith.

“Investors care about the idea to an extent, but what they really want to know is, can you convert this idea into a profitable, sustainable business and turn my bag of money into five bags of money?” Kevin Smith

founder of The Story Architect

ANGEL INVESTORS ONTARIO

Photos by Anton Gvozdikov, RODNAE Productions, vectorfusionart, peopleimages.com

Entrepreneurs, listen up. It’s on you to formulate and refine (then formulate and refine some more) both your story and your ask of investors. We asked experts in the field for advice on your behalf. Here’s what they told us.

STRATEGY

Addressing the interests of the audience is just one key part of a successful pitch. There are many ways founders can hone their pitches to increase their chances of obtaining financing (or moving on to the next round of meetings) instead of being dismissed. “Pitching is a skill you can learn, no different than learning how to ride a bike or skate,” says Marlon Shaw, founder of Speak and Grow Your Business, which helps entrepreneurs learn how to use speaking to increase their credibility, attract more clients and grow their business.

To that end, here are a handful of tips from the experts on what makes an effective pitch that will win over investors.

Capitalize on your first seven seconds. Humans have a shorter attention span than goldfish (theirs is eight seconds), says Smith, so be sure to make a splash with your opening. “The first seven seconds have to be novel, unique, exciting and engaging in order to get your audience to listen,” he says, citing an example from a TechCrunch competition he attended in Toronto where the pitch was for a traffic-ticket-fighting app. “One person came in dressed as Mario in a cardboard cutout Mario Kart, and the other was dressed as a cop who pulled him over. It got everyone to pay attention.”

Remember the three Cs. You need to be clear, concise and compelling, says Shaw. Avoid industry jargon, acronyms or anything too complex, since the investors you’re pitching may not have the same level of expertise in your field as you do. Being concise is prudent because there’s only so much information your audience can absorb at once, plus you don’t want to oversell yourself. “You may say too much and end up killing the deal, where you had it sealed up in the first 20 minutes,” says Shaw.

Tell a riveting story. Our brains are wired for storytelling, which makes it the most compelling form of communication. Indeed, one of the highest-ranked pitches ever received by PitchScore — a service that uses AI analysis, a live-scoring platform and a network of angel investors to evaluate and provide feedback on pitches before entrepreneurs deliver them to investors and during an active pitch — is a case in point: “It was a very understated presentation, with just eight slides and very few words on them, but with key elements covered,” says Scott Robinson, CEO and cofounder of PitchScore. “The startup’s founder was a great storyteller, and with every slide he told a story that was more and more interesting, which really pulled people in.” The company? None other than the one that went on to become the world’s largest platform of communities for gamers and esports fans with 300 million users.

ANGEL INVESTORS ONTARIO

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STRATEGY

Demonstrate the strength of your team. “We look at expertise in key functional areas, but also team experience, coachability, energy and passion, as these are very necessary,” says Robinson. “Overall team strength is often thought to be the most predictive of startup success. However, our data shows that this is only partially true, as once a minimum threshold of team competence is confirmed, the other five factors and a combination of factors become much more predictive of fundraising and venture success.” While you’re at it, be sure to establish your credibility, says Shaw, recalling a pitch from a doctor who failed to do so: “He was introducing a product that was very confusing, and much later into the pitch he said, ‘By the way, I was the doctor who developed children’s aspirin.’ He should have opened with that.”

Do your research. It should go without saying that you need to know your industry, market and competition inside out. This is important not only so you can present your business case and handle questions and answers effectively, but also because one of the angels you’re pitching may be an expert in your field. “The worst thing is when an investor says, ‘No, no, no — you have no idea what you’re talking about,’” says Shaw. Furthermore, if your team is short on credibility, evidence and traction become even more important, says Smith. “If I’m Elon Musk, I’m going to have a much easier time meeting an investor and talking about fundraising compared to a firsttime founder.”

Prepare mentally. While it’s important to spend time perfecting the material in a pitch, founders should also set aside time for mental preparation. “Do what I call a silent presentation: Envision yourself delivering the pitch without speaking it out loud,” says Shaw. “You need more focus to do it silently, so that allows you to internalize your message and be better prepared.” Plus, whatever you can do to keep your mental energy up will serve you well. “If you’re not fully charged and ready to go, your presentation will be flat and your audience will lose interest,” he adds.

Photos by Mediteraneo, Monkey Business, Anton Gvozdikov, Urupong

Understand that pitching is a process. Finally, don’t be discouraged if your first attempt at a pitch isn’t a home run. “Some think of fundraising and pitching to angels as an event, but it’s really a process,” says Robinson. “Each time is an opportunity to get more comfortable, be more concise, get your wording right and put your business fundamentals together — so be encouraged that you have the chance to gather important feedback on your business to improve your pitches as you go. Angels want to help.” x

ANGEL INVESTORS ONTARIO

Giving the Goods Angel investors don’t just offer up bags of cash to every cool founder who walks through the door. There’s a lot that these investors look for before they even get to the due-diligence stage. Read on to find out what some angels across Ontario pay attention to the most when getting pitched.

Lisa van de Geyn

ANGEL INVESTORS ONTARIO

BIG IDEA

he last company Lorna Kane, an angel investor in St. Catharines, Ont., invested in was called TreborRX. The company provides healthcare, frontline and essential workers with new patented personal protective equipment (PPE) — face masks that are more comfortable, cost-efficient and produce less medical waste than others. Their team is all about innovation and safety and their product will last long after the COVID-19 pandemic is a thing of the past. “I liked their pitch. The presentation was well done,” says Kane. “I believed in the product and the team. I was drawn to their story and their vision.” Kane’s company is also in the PPE space, and she’s a member of a buyers’ group for PPE in Canada, so when the opportunity to invest came up, she dove in. “With TreborRX, the follow-up on my interest after the first meeting was well done. The president of the company called me the day after the presentation. I like to align myself with companies that may benefit from some of my personal connections and are happy to take advice,” she says. It makes sense. Kane, who’s been investing for a decade, wrote a cheque because the team and idea appealed to her, she saw the need for the product and it’s in her space. The first woman to join Niagara Angel Network (and a current director on the group’s board), Kane calls herself a “people person.” She likes to look for a personal connection with the owner or pre-

ANGEL INVESTORS ONTARIO

senter of the company pitching. “If I feel a strong connection to the people who are running the company, that’s where my initial interest comes from. Anyone can have a good idea and a great product, but they need to believe in it and be able to sell it. For me, it’s really about my faith in the management team and their ability to execute their vision.” So many angels have said it before: It’s often about betting on the jockey, not betting on the horse. Angel Ellen Fang, who belongs to Maple Leaf Angels in Toronto, is on the same page. She says there’s sometimes not a lot of information for analysis when a company is in that really early stage, so she puts a lot of emphasis on the entrepreneur. “They have to be transparent, trustworthy and disciplined. They must be coachable, quick to learn and execute fast. Those are the qualities I’m looking for in the management team — they must always put the business ahead of themselves.” Mike Janzen, who belongs to the Golden Triangle Angel Network, says the team is always the most important factor (the others being market and product). “Do the cofounders gel well, do they know what they’re talking about, and when they don’t, are they open about that? Can they build a team and are they relentlessly resourceful?” The team is arguably the No. 1 thing an angel goes on when deciding whether to make an investment; that’s why it’s so important to find out as much about the cofounders as

BIG IDEA

possible. What are their hard skills? Soft skills? What’s their tech background and business experience? Do they know how to network? “Are they passionate about the business? Do they listen, are they coachable, are they good to work with, are they trustworthy? In the end, angel investing is people investing in people,” says Jennifer Francis, an Ottawa-based investor and member of Capital Angel Network. “You can get a good sense for the founders during the process from first meeting through to close. If you run into friction Jennifer Francis during this process, it won’t investor get better after the deal. I want to feel good about having helped the founder, even if the business doesn’t work out, because it’s really about the people.” Of course, it certainly goes without saying that a solid business plan is also key. It should outline all plans, especially a clear financial plan, but also product market fit, market research, competition and who’s on the board of directors or advisory boards, etc. “The business plan has to be realistic. We’re often being pitched by relatively young and inexperienced but highly intelligent and energetic folks, which is a combination that will lead to unrealistic goals and timelines if they’re not in touch with more experienced, seasoned people via advisory groups or a good board,” says John Yardley, an active angel investor in Niagara Angel Network. This is where understanding the core business comes into play. “You have to understand what’s being pitched to you or rely on others to do the due diligence that’s required to ensure that the angel business is viable and has the ability to disrupt. Almost always, the concept of their business sounds good and with their intelligence and energy, the ‘pitchers’ can get you really quite excited about what they are projecting. But it requires some clear-headed thinking about how viable the plans are. A key component of that plan is the amount that is being raised, their expenditure plans and how much that’s going to be per month derived from the capital available, because all too often that runway is much shorter than anticipated.”

One of the things Katie Salem, the executive director of York Angel Investors and an angel investor, says she looks for before she invests is a startup that has a strong value proposition to a global problem and its scalability. “I actually invested within a month of joining my group. One of the first pitches I heard was from three founders and I really understood the business — it was centred around several pain points in the financial sector that I felt were a real problem that I witnessed in my career as a financial and management consultant, and I felt the solution was desirable from a customer point of view. They were solving a real problem,” she says. “The founders were incredible — they had the energy, audacity, skills, laser focus, hustle and grit I was looking for, and they identified a problem they had experienced first-hand and knew that their solution would positively impact the end user.” And when it comes down to it, scalability and an eventual exit (sooner rather than later is the hope, of course) are on the minds of every angel investor. Jeff Champagne, an angel at Spark Angels in Durham Region who has done 40 deals in seven years, says he invests in the CEO and team right off the bat, but his investment strategy (which is to put a smaller amount of money into more deals) is based on how scalable a company is and, for him, there must be a reasonable probability of an exit. “It can be a great little business that can just grow organically and make the founder and his or her family a good living, but it doesn’t necessarily make it an angel-investable company. I want to feel like the company will either go public or will be bought out by a large competitor.” He points to the business that everyone in Spark Angels backed — Enthusiast Gaming (now the world’s largest network of communities for gamers). “All 28 of us gave $10,000 each, the company went public and we all made a great return on our money. It had a great founder, it was very scalable and had rapidly accelerating growth and we all benefited. It truly had everything you look for in an angel investment.” x

“In the end, angel investing is people investing in people.”

ANGEL INVESTORS ONTARIO

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AIO XV

Doubling Down on Early-Stage Investing

Kim Furlong Photo by CVCA

What does the innovation ecosystem landscape look like today? We asked Kim Furlong, the chief executive officer of the Canadian Venture Capital and Private Equity Association, to share her thoughts on this and why early-stage investing is so crucial. In March 2022, the Canadian Venture Capital and Private Equity Association (CVCA) released its 2021 year-end findings. It has been a spectacular year for Canadian entrepreneurs. We saw $14 billion invested, a record number of mega-deals and a record number of initial public offerings. Fund sizes are getting bigger, deals are getting bigger and the number of exits is getting bigger. These are all signs of a healthy and maturing innovation ecosystem — one that pushes Canada’s economy forward by challenging our traditional economy, creating jobs and wealth. While watching Canadian innovation come into its own is reason to celebrate, there are other indications that our work has just begun. When I started at the CVCA in 2019, we reported $3.7 billion of venture capital (VC) investment. Early on in my tenure, I told CVCA’s board of directors that we should aspire to be a tenth of the U.S. market because we’re a tenth compared to the U.S. with everything else, such as population. At that time, the U.S. VC market was at $130 billion. And while we passed our 2019 objective this year, we need to reassess and adjust based on where the U.S. is now, at $329 billion. This means there is significant room for growth and our goal has now changed — we need to aim for $30 billion. To ensure a sustainable ecosystem, we need to pay equal attention to developing our early-stage startups to ensure that some will graduate to scale-ups and growth stage. It’s at the early stages when investors roll up their sleeves in partnership with founders to help increase their customer base, articulate their product road map, recruit talent, build the right team and help in raising funds in the future. By supporting our early-stage startups, we are supplying the pipeline of successful innovative companies, contributing to Canada’s economic growth and stability, as well as playing a key role as employers across the country. These investments also advance technology, open new markets and foster competition. Our innovation ecosystem has come a long way in a short time. We need to keep the momentum going. We must be ambitious as a country in our aspiration to build world-leading companies and we must leverage the tools at our disposal to encourage and bolster our entrepreneurs, from that first friends and family round — where angel investors play a critical role — to large rounds of financing at the venture-growth stage. If we ambitiously stay the course, our future is bright. x

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On the Side of Angels We’re willing to bet you’ve heard of angel investors. But we’re also willing to bet you don’t really know who they are or what they do. No worries. If you’ve considered becoming one but you don’t know where to start, you’ve come to the right place. Here’s what you need to know, from A to Z, about all things angel investing — what it is, who they are and where to start if you’re interested in becoming one.

ANGEL INVESTORS ONTARIO

Lisa van de Geyn

ob Douglas says he always had a fascination with startup companies. The Cambridge, Ont.-based investor was trained as a chartered accountant with experience working in the investment industry as a securities adviser, but he says his true desire was to run his own company, which he eventually did — in fact, he ran several small businesses, honing various skills along the way. “As this journey proceeded, I had the good fortune of being approached by an international organization wishing to buy the business I was operating. And the rest is history — I had an offer I couldn’t refuse and an opportunity to receive enough money to satisfy my personal needs and provide sufficient capital to embark on the angel investing journey,” he says. That first investment was 24 years ago in 1998, which means his entry into angel investing predates the era of formal angel investor networks in Ontario by nearly a decade. “I was what was referred to in those days as a lone wolf, relying on a network of lawyers, accountants, bankers and personal friends for deal flow. Introductions to companies seeking investment were made one-onone, no formal presentation in front of groups of angel investors and no one to assist with due diligence. I was on my own, completely dependent on my own experience and intuition about whether or not to invest,” he says. “So, as a chartered accountant by trade, and with a

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successful business exit behind me, I felt I could go it alone and make wise choices about which companies would be winners and which wouldn’t. I was wrong.” He says his first two investments were driven by emerging technologies rather than by whether the entrepreneurs at the top could make a success out of their companies. He was soon joined by a partner to share investing and due-diligence duties, and together they started Roseview Capital, which would also start introducing early-stage companies to other angel investors in Waterloo. “This business thrived from 2000 to 2008, a fact that was noticed by the National Angel Capital Organization (NACO), which was in the process of building a network of angel groups across Ontario. They approached Roseview to start the region’s first not-for-profit angel group, which we did under the name Golden Triangle Angel Network (GTAN).” Douglas was GTAN’s first president, a post he held until July 2020, when he returned to Roseview Global Incubator to help international entrepreneurs bring their businesses to Canada under the government-sponsored Start-Up Visa Program. “Under my stewardship, GTAN members invested in more than 80 companies, investing upwards of $40 million of their own capital and leveraging an equal amount from other sources with a resultant impact of nearly $90 million in the Waterloo Region and beyond.”

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There’s been a thriving ecosystem since Douglas and his fellow founders started angel investing more than 20 years ago and since the inception of Angel Investors Ontario (you can read more about that on page 65). Every year, more angels join the fray. Jay Kilgannon, a senior investment and wealth adviser and portfolio manager for RBC Wealth Management and RBC Dominion Securities, says he didn’t even realize the angel ecosystem existed in Canada up until about seven years ago when he became an angel. “You hear of angels, and you think of television shows such as Dragons’ Den or Shark Tank. You don’t imagine an average person who lives in a community can invest and participate with local entrepreneurs and help them realize their dreams,” he says. He’s right. If you’re not already embedded in this thriving ecosystem, you probably don’t know much about angel investing. It’s one of those terms that you’ve no doubt heard but might not be a concept you fully understand. Take heart — it’s actually pretty straightforward. In its most basic terms, angel investing is defined as an individual or group investing in exchange for equity in a business. But it’s so much more than access to capital — it’s about mentorship, commercializing new technologies, nurturing founders and startups, creating jobs in local communities, networking and volunteering. Kilgannon has been an angel since 2015. “I originally went to a few meetings to check it out because a few of my clients were angel investors. I wanted to be able to advise them intelligently on how much of their wealth they could or should allocate to this type of asset,” he says.

“It turns out that I loved the meetings. The energy. The vibe. The diversity of the experience of the angels themselves. Seeing entrepreneurs realize their dreams. It’s an incredible experience.” Jay Kilgannon investor

Who they are Angels are educated, high-net-worth folks who invest their own funds in early-stage startups. They’re a super-diverse group who are all about taking a leap of faith on the impressive ideas and plans of founders. These are people who have already

enjoyed a successful career in business and want to give back to the younger generation of founders — they’re dedicated to supporting entrepreneurs and care deeply about their communities. (Many are “cashed-out” entrepreneurs themselves who ran their own companies and exited.) Angels often come in at the seed stage, but they’ve been known to come in at other stages in a company’s journey, too. They diversify their investments and join angel groups to mitigate their risk. “You have to have the stomach for taking a risk and investing in a non-liquid asset,” says Karen Grant, the former chief operating officer of Equation Angels and member of Angel One. “If you’re highnet-worth, you’ve put your kids through college, you have your cottage, you travel and you’re not working full time, it’s often very appealing to get in with other successful people and have something to talk about other than golf,” she says. Angels are a courageous bunch, considering they support companies before banks and more traditional venture capital investors are in the picture. Their money, of course, is only one part of the full picture: They use their expertise and networks to help propel these startups and guide founders. They offer business acumen, expertise in specific industries and verticals, business development advice and even introductions to the right people while pursuing an exit or liquidity. Prospective angels must be accredited investors, which, according to the Ontario Securities Commission, means they (alone or jointly with a spouse) must own financial assets having an aggregate realizable value of more than $1 million before taxes. They also must have a net income of more than $200,000 (before taxes) in the past two years, or income that exceeds $300,000 when combined with a spouse. Angels should be able to evaluate merits and risks before getting in on investing.

Why be an angel? Reasons vary, but there are common goals among the groups. Pursuing greater financial reward and portfolio diversification are the obvious ones — investors hope to put some of their hard-earned dollars into companies that will thrive and exit through an acquisition or a public offering. But it’s not all about the bottom line. Angels have an interest in fuelling and mentoring entrepreneurs and watching small businesses grow while actively taking part in their journey. Giving back to the community is also a big one — investing in local companies creates jobs and advances a community’s economy. There’s also a super social aspect of being an angel and joining an angel group — there’s camaraderie with like-minded folks that’s enjoyed.

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After the cheque is written Well, it’s not all about writing cheques, that’s for sure. You need to have the bucks, but you also need to be willing to get involved. Take Niagara Angel Network investor John Yardley. He says there’s plenty that happens after the cheque is written. “Most of the investments I’ve made are not in my area of expertise, but I have tried to provide the CEO mentoring and advisory input where there was an absence of either a good governance setup or where the company was looking for input,” he says. “In some cases, I’ve been able to provide marketing leads or contacts for product development. In a few instances I have contact with the board of directors so I can get more objective feedback about issues and the state of affairs,” he says. This is a way to de-risk the investment. Investor Carol Lee, who’s part of Maple Leaf Angels in Toronto, says she’s in regular dialogue with the founders of half the companies she’s invested in. “It’s ad hoc in terms of what they need, but I really enjoy it,” she says.

“I wouldn’t invest in a company unless I had the opportunity to get involved with the founders. It’s about wanting the company to be a success and being proactive.” Carol Lee investor

ANGEL INVESTORS ONTARIO

Questions to ask yourself before becoming an angel 38

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What do you want from your investments? Is it simply monetary gain or do you want to be involved in a company’s success? Are you willing to bring more to the table than a cheque?

Where to start

Do you enjoy working collaboratively with others?

Look up your nearest angel group and take a leap. “Just come to a meeting or a couple of meetings and try it on for size. It costs nothing but time — there’s no financial commitment — to come and check it out. Have an open mind and listen to other members. Have a sandwich, and be open about the experience,” says Kilgannon, an investor who’s part of Spark Angels and York Angel Investors. “I look at it as a learning experience every time I go. If it’s a good fit, join. And you can even try different groups — each group has a different energy and vibe.” (We sing the praises of angel groups on page 42.) So, says Kilgannon, it’s all about getting out there. If your first investment isn’t a friend or family member who’s asked you to go in on their venture, your first cheque could be written at an angel group, along with other like-minded folks who are there for some of the same reasons as you.

Do you believe it would be helpful to learn from more experienced angels?

Common misconceptions

Do you have time to be involved in your investments?

How risk averse are you?

Do you want to pool funds with other angels and diversify your portfolio? Do you want to see many investment opportunities each year? Do you want to interact with businesses directly? Do you want to make decisions yourself or will you appreciate input from other angels when evaluating ventures?

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One that constantly comes up when you talk to seasoned angels is that many folks think they’ll make it big right away. Not so. In fact, lots of angels have stories like this from one investor who offered to shed a light on his time in angel investing: “I’ve lost $3.88 out of $4 of investments in three bankruptcies and one sell at $0.12 per $1, so I don’t have a particularly stellar history,” he admits. The truth is, it’s a risky proposition with a limited shot of getting your money back. Angel investor Julia Elvidge, part of Ottawa’s Capital Angel Network, says she recommends a “goslow approach” to prospective angels. “It takes a lot of time to understand and calibrate your gut. Listen and learn from other angel investors during your first year. Even if you believe you have all the business knowledge you need, it will take three to five years before you know the results of some of these investment decisions. In general, it’s believed that only one in 10 (some say 20) investments will pay off.” Carmen Gicante is a member of Equation Angels, founder and former managing director of Southwestern Ontario Angels and cofounder of Windsor Essex Capital Angel Network. He says ideally angels should have a good portfolio of 10 to 15 companies. “Studies have shown it is hard to pick the home run. Through investing with like-minded investors in an angel group where there are robust processes in place for sourcing, vetting and assessing investment opportunities, it enhances the likelihood of a solid return on investment. Studies have shown that the average annual return is in the 20 percent range.”

VCs & Angels Venture capitalists (VCs) play a big role in the innovation and investing ecosystem, too. But what are the differences between VCs and angels? It’s a common question with many common misconceptions, says Kim Furlong, the CEO of the Canadian Venture Capital and Private Equity Association (CVCA). “Many people think angels, VCs and private equity investors are the same thing. While they share the fact that they all stimulate the creation and growth of companies, they do so at a different stage and scale. If you had to describe venture capital at a dinner party, Dragons’ Den and Shark Tank are usually the examples you’ll give for a very high-level answer,” she says. VCs provide capital to early-stage innovative, disruptive companies that have the potential to grow quickly and reshape markets. You wouldn’t see one investing in opening a hair salon, for example. “They are problem-solvers and help job creation. From early stage to growth capital, you’ll find VC firms at every point of the spectrum looking to invest. They bring capital and knowledge to entrepreneurs. I always say it’s like a marriage — both parties need to talk about values, what they want out of the relationship, how they see growth, etc.,” says Furlong. Both angels and VCs have the willingness to fund at an early stage, but angels primarily invest earlier than VCs. “Angels are often the earliest investors into a new company and can be family or friends of the company’s founders, where VCs invest once the company is off the ground and there’s a demonstrated growth path,” she says. That said, Furlong adds venture capitalists can’t really exist without angel investing. “Angels are the ones who truly seed companies that VCs will be looking at.” While angels invest their own money, VCs invest other people’s money alongside theirs. VC firms often take a bigger piece of the pie, whereas angels take a smaller stake. x

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Glossary Accredited investor: An individual who (alone or jointly with his or her spouse) owns financial assets having an aggregate realizable value that exceeds $1 million (before taxes). Accredited investors have net incomes of more than $200,000 (before taxes) in the past two years (or whose net income comexceeds $300,000 when combined with a spouse). They also have knowledge and experience in business and finances and can evaluate the merits and risks of investments. Business plan: The document that describes the entrepreneur’s idea, an executive summary, the market problem, solution, business models, technology, marketing strategy, competitors and forecasted financial data. Due diligence: The process angel investors undertake to analyze and assess the value and potential of an investment opportunity. During due diligence

ANGEL INVESTORS ONTARIO

(which typically takes 60 to 90 days), angels are looking to gain insight into how the company works. The goal is to help investors decide whether or not to go in on a company, and it eventually leads to negotiation of investment terms in the term sheet. In an angel group setting, a member is chosen to champion the effort with other members who are interested in the deal. A report is created and shared with interested investors. Elevator pitch: A super-concise presentation of an entrepreneur’s idea and business model, as well as marketing strategy and competition. It shouldn’t be longer than an average elevator ride and is most effective when kept quick and to the point. Equity: Shares that represent an ownership interest in a company. Exit strategy: The company’s plan to liquidate the company’s stock in the

form of an acquisition by a publicly traded company or a public offering. It involves the owner selling some or all of their ownership. Scalability: The capacity for a company’s product or service to grow very big, very quickly. Seed money: A startup’s first round of capital, which is often either a loan or investment in stocks. This money (often provided by angel investors) provides start-ups with the capital they need to really start developing and growing. Startup: A private company in the early stages of business development. Term sheet: This summarizes the terms and conditions for making an investment. It’s used to negotiate with the company and is shared with all members who are interested in investing.

ANGEL INVESTORS ONTARIO

Photos by ronniechua

Join the Club

STRATEGY

There are 16 angel groups in Ontario and if you’re considering becoming an angel investor, those with experience all agree: You need to join one. (Or two.) Not sure if it’s right for you? We get it. We’ll take you through what becoming a member means, and the benefits that await when you connect with like-minded folks looking to make a difference. ANGEL INVESTORS ONTARIO

Lisa van de Geyn

investment activity in Ontario, and southern Ontario is one of the best places for startups in the world, as measured by volume of startups and the dollar volume of angel investment and employment created.” Those who’ve been there know there’s so much value in joining an angel group. The primary reason so many tend to become members is because it mitigates the risk of going in on companies on their own. “The evolution of formal angel networks has proven to provide significant benefits to the traditional solo investor,” says Rob Douglas, the CEO of Roseview Global Incubator and a founder of GTAN. “Such networks provide access to other like-minded, high-networth individuals; enhanced, well-vetted deal flow; as well as providing a bestpractices environment for due diligence, investing and follow-on monitoring.” Angel groups allow for establishing processes and derisking investments. “Of course, we don’t guarantee success, but because of our robust process for vetting investment opportunities including screening, due diligence and co-investing with other angel members, we reduce the risk of investments; we only bring the best investment opportunities vetted by professionals in,” says Carmen Gicante, a member of Equation Angels, founder and former board chair of Southwestern Ontario Angels, as well as the former board chair and cofounder of Windsor Essex Capital Angel Network. Neil Wilkinson, the managing director of Equation Angels, agrees. He says individual angels often get bombarded with pitches and funding requests. “At Equation, staff and a committee screen about 100 applications a month and narrow them down to three to present at our monthly investment meeting. When members show up and watch pitches, they are confident in knowing that the presenting company meets Equation’s criteria,” he says. Karen Grant, who was integral in creating four angel groups, puts it this way: “The group screens company applications and, after some research, they select companies to present, so that as an individual, you don’t have to kiss all the frogs. You get curated deal flow.”

ANGEL INVESTORS ONTARIO

Photo by Valmedia

ooking for a way to help early-stage companies and small businesses, Jason Nagy, an angel investor in Guelph, Ont., was invited to his first investor meeting at Durham Region’s Spark Angels six years ago. The promise? He would see cool companies, get in some good networking and have the opportunity to invest in great entrepreneurs brought in by the group’s leaders. Nagy experienced all of it, and he was hooked faster than he expected. “I joined after that first meeting. Outside of the opportunity to help startups, I could see that this was a fantastic place to learn and experience something new among a group of very interesting people,” he says. “It was clear that members came from a variety of backgrounds and had all achieved a certain level of success, and I’ve always sought out places to learn new things and people to learn from.” Nagy joined Spark Angels and, over time, he noticed how closely the group worked with its colleagues at the neighbouring York Angel Investors (YAI) out of York Region. “We worked very well with YAI to syndicate deals and share deal flow. This led me to participating in several meetings with them. As YAI has a different membership with different experiences and deals, I joined YAI. Everyone in the ecosystem is so very helpful and goes out of their way to answer questions and provide guidance, not only to startups, but to members and guests as well.” Nagy ended up moving to Guelph, so he says it was only natural for him to join Golden Triangle Angel Network (GTAN), making him a member of three angel groups. “There’s a unique system of 16 angel groups that have been funded by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) that are all independent yet work together and collaborate and try to make angel investing more successful in the province. The groups are coordinated and share opportunities through monthly group manager meetings, quarterly pitch screening sessions and a deal-sharing platform,” says Michael Badham, the managing director and president of Georgian Angel Network. “The ecosystem has a significant angel

STRATEGY

“The group screens company applications and, after some research, they select companies to present, so that as an individual, you don’t have to kiss all the frogs. You get curated deal flow.” Karen Grant investor

Access to information and learning from others in the group are key reasons investors decide to join. When you have lots of eyes on a deal, it really helps to have folks with different backgrounds and expertise weighing in. “This shared approach to assessing the quality of a deal can be really helpful in building a quality portfolio, and it means you can more confidently invest in companies that may be outside of your core expertise, which helps with diversifying,” says Jennifer Francis, an investor who’s part of Capital Angel Network. “Our group is very collaborative, and we can identify an expert from within our membership to talk to almost any opportunity that presents itself. As an angel, providing you trust the other angels in the network, you can invest in opportunities that are not within your field of expertise or comfort zone. This diversifies the angel’s portfolio, decreasing their risk,” says Wilkinson. (Investor Jim Henry, who belongs to Niagara Angel Network, puts it succinctly this way: “You look for other people in the room who are smarter than you, and if they show an interest in a company, maybe you do, too.”) Carol Lee, an angel at Toronto’s Maple Leaf Angels, says being part of a network not only lets her learn from others, but it also allows her to contribute her wealth of expertise to the group. “I come from a financialservices background and spent two decades doing due diligence on companies, so that process is very familiar to me. I like that I can bring that experience into the room.” If all that isn’t appealing enough to join an angel group, perhaps this is the one reason that keeps angels coming back: the camaraderie. “Angel groups allow you to meet like-minded people. These are individuals who have the same sense of adventure and risk as you do,” says Grant. “There’s a great camaraderie when you do due diligence and when you get together for investment meetings. That’s where people start to really connect. It’s about coming together and bonding. The friendships I’ve seen form have been truly extraordinary,” she says. “Angels have a fellowship. Members are open and friendly and willing to help you learn, from how to look at a deal, structure a deal, be a good volunteer, etc. There are people who are there to help you and people who care about each other,” says GTAN member Jacky Chen. Katie Salem, the executive director at YAI, says the friendships she’s formed from joining the ecosystem and being part of her group are priceless. “The opportunity to collaborate with like-minded individuals, learn about new technologies, talk about the various aspects of a deal, is truly rewarding.” x

ANGEL INVESTORS ONTARIO

Where to start and what to expect

et in touch with your local angel group and attend a few meetings to try it out. Most groups meet monthly. “Get a feel for the group and see first-hand how welcoming members are. Ask lots of questions. You’re not expected to know about angel investing or the language that’s used but you’ll learn it all,” says Jason Nagy. If you decide to join, there’s an annual fee to be part of the group. Your membership includes monthly meetings, participation in committees (such as due diligence and sometimes deal screening), participation in deep dive sessions (where investments and strategic connections are discussed), special events (including social and networking sessions) and the opportunity to invite guests to meetings. “We provide regularly scheduled workshops led by experienced angels and industry professionals to prepare new angels for their first investment. Many of the deals that come through Equation are syndicated. There is more than one investor; this gives the opportunity for new angels to participate in the syndicate and learn from the more experienced angels along the way,” says Neil Wilkinson. After participating in pitch meetings and asking questions of the founders presenting, you’ll indicate your interest in a company. Interested members are then connected so they can begin the due-diligence process and collaborate on term sheet negotiations.

Group Dynamic Photo byAnna Shvets

Ontario’s 16 angel groups play a key role in the province’s innovation ecosystem. If you’re considering becoming an angel investor, or you’re a founder who’s ready to make your pitch, here’s what you need to know about each group and how to get in touch.

ANGEL INVESTORS ONTARIO

Recent Highlights With its Equation Angels partners, Angel One pivoted from in-person meetings to virtual meetings within five days and never missed delivering an investment meeting.

Burlington, Ont.

Angel One Investor Network

his group launched in 2011 and it attracts investor members from Toronto, Mississauga, Oakville, Burlington and Greater Hamilton. “Angel One is guided and driven by its members. They’re risk-takers and dealmakers who are passionately involved in the startup and early-stage company ecosystem,” says Angel One chapter manager Suvid Ajmera. Angel One is a founding member of Equation Angels, which combines the resources and networks of four angel groups in southwestern Ontario. “Equation Angels offers access to the best deal flow and the benefits of a larger organization,” Ajmera says. “By working together, our members have access to more people with broader experience and different market intelligence, enabling our investors to focus on what matters most — maximizing return on investment.”

Angel One members were invited to peer-to-peer meetings with their investee companies to hear from experts how they could help their companies through COVID-19.

Size of Group

Number of investments made

170

Total dollars invested

35 Million $

Deals of Note Kensington Brewing Co. A craft beer brewery, bar and bottle shop that offers a range of inventive craft beers with a selection of diverse flavours. kensingtonbrewingcompany.com

Funding Innovation

Photo by Cottonbro

This company raises funds through their Art Easel Program for major charitable causes in Canada with a focus on children’s and veterans’ causes.

Contact Details

fundinginnovation.ca

Website angelonenetwork.ca

Underknown (previously Backyard Media)

Email info@angelonenetwork.ca

This digital-first media company’s main product is content: short videos that are designed to be easy for the audience to consume and share quickly. underknown.com

ANGEL INVESTORS ONTARIO

TechPlace 5500 North Service Road Suite 801 Burlington, Ont. L7L 6W6

Recent Highlights

Kanata, Ont.

Capital Angel Network

ince its inception in 2009, 90 percent of the companies Capital Angel Network (CAN) has invested in are based in Canada’s capital city. CAN is a group filled with long-standing industry experts with a commitment to help local business founders. “What’s even more special is the commitment to women-led startups,” says executive director Suzanne Grant. “For example, CAN’s partnership in SheBoot — an Ottawa-based six-week bootcamp and 10-month support program that prepares founders to pitch their business and secure investment — highlights our commitment to uplifting women founders in the Ottawa startup ecosystem. The program is attracting more women entrepreneurs and women investors to CAN.” The group is also actively engaged with incubators and accelerators in the Ottawa area, and they host an annual mashup event that showcases the best of what their area has to offer.

Deals of Note

The investment-readiness bootcamp SheBoot is keeping pace with CAN’s success metrics, doubling up on impact. It includes 19 women tech founders of scaling Ontario startups and 20 women angels from the capital region. Portfolio companies are diversifying and include regenerative medicine, wellness management software, reproductive health, green energy and agriculture technology.

Size of Group

Number of investments made

This company produces all-natural, plant-based biomaterials that have the potential to repair spinal cord injuries and promote healing.

150+

Total dollars invested

The Growcer

57 Million

Winner of SheBoot 2021, The Growcer empowers you to grow local produce anytime and anywhere with its hydroponic container farms.

Contact Details

spiderwortbio.com

thegrowcer.ca

BluWave-ai

Website capitalangels.ca

BluWave-ai aims to bring innovations in artificial intelligence, edge-computing and cloud-based super-computing to the world of distributed renewable energy.

Email info@capitalangels.ca

bluwave-ai.com

340 Legget Drive Kanata, Ont. K2K 1Y6

ANGEL INVESTORS ONTARIO

Photo by Mathias P.R. Reding

Spiderwort Inc.

CAN experienced record growth in 2021 — membership grew by 17 percent and women represented 20 percent of the membership. The group has a hard goal to move this to 25 percent in 2022.

Recent Highlights GAN held its fourth annual Angel Investing Winter Summit as a hybrid event that featured online learning and in-person skiing in January 2022.

Midhurst, Ont.

Georgian Angel Network

stablished in 2012, Georgian Angel Network’s (GAN) role is to serve as a catalyst for economic development, facilitating investment from accredited angel investors to high-quality investment opportunities in South Georgian Bay, Barrie, Muskoka, Orangeville and Collingwood. GAN is focused on funding and supporting entrepreneurs who have applied technology to create and transform products and services that are much needed in the market. The members have a wide range of expertise, especially in technology and manufacturing sectors. Managing director Michael Badham points to the group’s ongoing commitment to the entrepreneurial ecosystem and the supportive approach they take to founders who present to GAN.

GAN made the return to inperson investor meetings in March 2022. GAN’s GXF fund for pre-angelready opportunities made two investments this year: BrainRacer and Opsware.

Size of Group

Number of investments made

75+

Deals of Note

Total dollars invested GreenSky AF IV A great fund to have as a relationship to help with investees as they progress to next level. greenskycapital.com

22 Million $

ColdBlock ColdBlock digestion technology can be used across mining, metals and alloys, environmental, food and agriculture industries where sample digestion is commonly employed.

Photo by Olia Danilevich

coldblock.ca

OrderEase A complete business-to-business wholesale ordermanagement system. orderease.com

Contact Details Website georgianangelnet.ca Email michael@ georgianangelnet.ca 10 Frid Boulevard Midhurst, Ont. L9X 0P5

ANGEL INVESTORS ONTARIO

Recent Highlights Membership grew nearly 30 percent in 2021.

Kitchener, Ont.

Golden Triangle Angel Network

ounded in 2008, Golden Triangle Angel Network, known as GTAN, is based in Waterloo’s high-tech hub situated between four of the province’s biggest post-secondary schools. Waterloo is home to some of the world’s leading innovation and entrepreneurship programs in North America. “We believe angel investing is a team activity,” says executive director Evan Clark. “Come and join our our culture of building together as you expand your network, grow Canada’s future tech leaders and invest with purpose.” GTAN is an active member of Equation Angels — a collaboration that combines the experiences and resources of four southern Ontario angel groups.

Members invested more than $8.3 million into 24 companies last year. Despite COVID-19, GTAN continued to follow its roots as technology builders, found ways to stay connected and collaborated with like-minded folks across the country.

Size of Group

Number of investments made

150+ Deals of Note

Total dollars invested

60+ Million $

Wavy A culture-management platform bringing teams together. joinwavy.com

Nicoya

nicoyalife.com

Hyivy Health Smart pelvic rehab system that provides a device, app and clinician software creating real-time information to give patients a comfortable experience through pelvic health recovery. hyivy.com

Contact Details Website gtan.ca Email info@gtan.ca 200-137 Glasgow Street Kitchener, Ont. N2G 4X8

ANGEL INVESTORS ONTARIO

Photo by Mart Production

Designing and building cutting-edge, user-friendly and affordable technology that’s accessible to scientists.

Recent Highlights Pulse Industrial, a GreenSky Angels (GA) portfolio company that uses IoT and AI to reduce greenhouse gas emissions and improve safety in industrial plants, received $3.5 million in a new round of non-dilutive funding from Sustainable Development Technology Canada.

Toronto

GreenSky Capital Inc.

ased in Toronto, GreenSky Capital Inc. is made up of seasoned entrepreneurs from a variety of backgrounds (including legal, deep IT and finance) who make early-stage investments in high-growth opportunities. GreenSky Angels (GA) is the group’s angel network, and it was designed to provide investors with better-quality deal flow and increased probability of an exit, thanks to the sourcing, vetting and overall management expertly provided by the team at GreenSky Capital Inc. “One of the biggest problems with which most angel groups try to contend is finding the time and resources to properly adjudicate deal flow. GA provides both an institutional due diligence package and a pre-negotiated term sheet to angel investors as soon as they express interest in investment,” says Neil Peet, GreenSky Capital Inc.’s principal.

GA closed its fourth affiliated venture fund (The GreenSky Accelerator Fund IV), with more than $16 million to invest as a lead investor in early-stage deep technology companies in Canada.

In 2020, Arctic Wolf acquired GA’s portfolio company RANK Software Inc. in a cash and share transaction. RANK developed an enterprise grade security analytics platform that provides real-time threat hunting and behavioural analytics powered by AI. Arctic Wolf raised $150 million in new funding, bringing the company’s valuation to US$4.3 billion, and is planning an IPO later in 2022.

Size of Group

124

Number of investments made

114

Deals of Note Wave Accounting Providing financial services and software for small businesses. Wave Accounting exited to H&R Block for $500 million. waveapps.com

Rank Software Rank Software recently exited to Arctic Wolf, one of the fastest-growing U.S. cyber-security companies now valued at more than $4 billion.

Photo by Anna Nekrashevich

arcticwolf.com

Cyclica Rx

Total dollars invested

30.7 Million $

Contact Details Website greenskycapital.com

This company integrates systems biology, medicinal chemistry, biophysics and machine learning to address challenging problems across the drug discovery life cycle.

Email info@greenskycapital.com

cyclicarx.com

6 Adelaide Street East Suite 500 Toronto M5C 1H6

ANGEL INVESTORS ONTARIO

Recent Highlights Keiretsu has the world’s bestperforming blockchain fund-offunds, open for members to participate as LPs.

Toronto

Keiretsu Forum Canada

eiretsu Forum Canada was founded in 2012, and is part of the larger Keiretsu Forum — a global angel investor network that has more than 60 chapters and 3,500 angels in North America, Europe, Asia and Australia. The global network has invested more than $1 billion in more than 1,000 investments since its inception in 2000. Keiretsu Forum Canada now has four chapters in Ontario: London, Waterloo, Toronto and York Region. “It would be naive to think that the best deals only originate in our own backyard. Keiretsu Forum is geography and sector agnostic, which allows our members access to those early-stage deals rising to the top from across the world,” says Ozan Isinak, president of Keiretsu Forum Canada. “One of our mandates in Canada is to help Canadian companies gain capital and sales traction from across the global network. This helps minimize risk and allows companies to grow more quickly as they access larger pools of funding from around the world.”

Deals of Note

Keiretsu Forum Canada members allocated $16.8 million to early-stage companies in 2021. A member of Keiretsu Forum Canada is automatically a member of Keiretsu Forum global. They can participate in all investor activities from around the world. It’s an unparalleled opportunity to gain global best practices and expand personal networks beyond Canada.

Size of Group

100

Number of investments made

350+

Total dollars invested Inkbox Keiretsu Forum members from across the global network were some of the first supporters of this semi-permanent tattoo company that recently exited for US$65 million. inkbox.com

53 Million $

Orion Biotechnology

orionbiotechnology.com

Keiretsu Forum Blockchain Fund A fund open to members that invests in some of the most sought-after institutional blockchain funds across the world. It was rated as the best-performing fund-of-funds in the world in 2021. keiretsucapital.com

Contact Details Website keiretsuforum.ca Email info@ keiretsuforum.ca 77 King Street West Suite 350 Toronto M5X 1C1

ANGEL INVESTORS ONTARIO

Photo by Dominika Roseclay

This life sciences clinical-stage company is unlocking the therapeutic potential of G Protein-Coupled Receptors and has raised >US$8M from Keiretsu Forum global chapters.

Recent Highlights

Toronto

Maple Leaf Angels

oronto-based Maple Leaf Angels (MLA) was established in 2007, making it one of Ontario’s longest-running angel groups. The like-minded investors that make up MLA invest in sector agnostic pre-seed/seed-stage companies. They also invest via the MLA48 Fund, whose thesis is to make investment decisions of $150,000 in earlier stage, high-potential companies within a 48-hour turnaround period. They offer companies mentorship and networking opportunities, with access to follow-on funding from the MLA angels. Vihangi Mehta is passionate about entrepreneurship and serves as the group’s executive director. “What makes us unique is we’re moving toward being much more entrepreneurfocused; they’re truly the bridge to what we do. We want to make sure we have them in mind not only to provide capital, but to support and make connections as well.”

Deals of Note

MLA continues to deliver a unique entrepreneur screening experience, where it focuses on providing constructive feedback to all entrepreneurs in its pipeline. MLA also offers support to new angel investors learning about the ecosystem and investment process via the MLA48 Fund and the larger network. Accommodating a virtual environment has allowed investors to join remotely and access deal flow from across Canada, increasing angel mentorship, engagement, and participation on all aspects of MLA’s investment process.

Size of Group

Number of investments made

Wealthsimple This Canadian online investment management service is aimed at changing the way young people think about money. wealthsimple.com

Top Hat Top Hat is an all-in-one teaching and learning platform designed for teachers and students.

Photo by August de Richelieu

MLA has seen consistent growth year-over-year. Its diverse membership grew by 20 percent where the angels invested in 50 percent more companies and deployed 45 percent more capital than the previous year, making it the group’s most successful year since inception.

Total dollars invested

42 Million $

tophat.com

Contact Details

Ubisoft

Website mapleleafangels.com

The company creates video games and worlds for users around the world, including adventure and building games. ubisoft.com

Email info@mapleleafangels.com 95 King Street East Suite 300 Toronto M5C 1G4

ANGEL INVESTORS ONTARIO

Recent Highlights

Thorold, Ont.

Niagara Angel Network

he Niagara Region is one of the most stunningly scenic areas of Ontario, but it’s more than a tourist mecca filled with vineyards and, of course, the iconic Niagara Falls. For angel investors looking to invest in high-quality opportunities, accredited investors in Niagara’s 12 municipalities flock to the Niagara Angel Network (NAN), established in 2010. The group’s monthly meetings are circulated throughout the Niagara peninsula, including award-winning wineries and hotels — a move that gave NAN more exposure while helping to spread the word about the angel group. “We take great pride in organizing our investor dinners,” says Niagara Angel Network’s executive director Terry Kadwell. “Each dinner is carefully planned and executed to meet our members’ expectations. From fine wine, beautiful venues, and superb food, we go the extra mile to ensure each angel is satisfied with their membership. Our friendliness and camaraderie, however, aren’t just limited to members — we extend every courtesy to our presenting companies.”

NAN attracted 11 new members to the group, helping to fill the gap in sector and domain experience. It also tapped into new geographical areas, including Lincoln and other underserviced areas. Fifty percent of NAN’s new members were women and people of colour. The group’s media presence grew — it was featured in more than six media outlets while also launching an aggressive LinkedIn campaign.

Size of Group

Number of investments made

Deals of Note

Total dollars invested Chickapea Providing pasta made of organic chickpeas, dried seed of peas and other edible beans and lentils. chickapea.com

15.6 Million $

SomaDetect

somadetect.com

Caddle Caddle is an app that lets users earn cash back by responding to surveys, purchasing products and providing reviews. getcaddle.com

Contact Details Website niagaraangels.com Email tkadwell@niagaraangels.com 20 Pine Street North, Studio A Thorold, Ont. L2V 0A1

ANGEL INVESTORS ONTARIO

Photo by Sarah Chai

This company measures all indicators of dairy quality (including fat, protein, progesterone) from cows at every milking.

Recent Highlights Sudbury, Ont.

Northern Ontario Angels

he Northern Ontario Angels (NOA) is the top angel organization in North America for Northern Ontario entrepreneurs who are looking for capital and angels looking for investments. NOA supports Sudbury, North Bay, Thunder Bay, Sault Ste. Marie, Timmins/Kapuskasing and Kenora. The group started in 2005 after FedNor funded public consultations in five cities in the area — it had long been established that Northern Ontario companies that needed equity financing were at a disadvantage to small- and medium-sized enterprises in the southern part of the province. With the inception of the group, issues surrounding this equity gap and the challenge entrepreneurs faced trying to find investors were addressed. Mary Long-Irwin, the director of international development and for a decade the group’s executive director, says NOA is unique because of the support it gets from its investors. “We know what investors want, what they will invest in and how determined they are to grow the economy of the North,” she says.

Deals of Note

NOA reached the $200 million mark with investments made into northern companies. It also reached 5,500 new jobs created and 3,175 jobs maintained. The group has worked very closely with its northern Indigenous communities and has provided investment into 35 Indigenous companies to date. NOA worked to increase its female-led companies and female investors. To date, 30 percent of invested companies are female-led, and 25 percent of its investors are female.

Size of Group

420

Number of investments made

460

Total dollars invested RNA Diagnostics This cancer diagnostics company is building a platform of predictive biomarkers to improve the lives of cancer patients.

205 Million $

rnadiagnostics.com

iRegained iRegained is a digital neurotherapeutics company that has developed an in-home, digital rehabilitation system to rewire the brain, empowering stroke and traumatic brain injury survivors to reclaim unassisted use of their hands. iregained.ca

Contact Details Website northernontarioangels.ca

Photo by Artem Podrez

Email ian@northernontarioangels.ca P.O. Box 2396 Sudbury Station A Sudbury, Ont. P3A 4S8

ANGEL INVESTORS ONTARIO

PRAN Contact Details Peterborough, Ont.

Peterborough Region Angel Network

erving angel investors in Peterborough and throughout rural Eastern Ontario, Peterborough Region Angel Network (PRAN) works closely with the Innovation Cluster, the area’s innovation and technology incubator. Startups that are interested in pitching must do it via the Innovation Cluster.

Website peterboroughangels.ca Email pran@innovationcluster.ca 270 George Street North 3rd Floor Peterborough, Ont. K9J 3H1

HaloHealth Contact Details Toronto

HaloHealth

Website halohealth.ca Email membership@halohealth.ca 100 College Street #150 Toronto M5G 1L5

aloHealth launched in 2020 as an investment group for physicians looking to invest in transformative health technology companies. They provide health-tech founders with speciality matched advisory, healthcare connections and capital.

ANGEL INVESTORS ONTARIO

Recent Highlights Recently added 15 new angels to the roster.

Kingston, Ont.

Invested in four companies in 2020/2021.

Southeastern Ontario Angel Network

he Southeastern Ontario Angel Network, dubbed SOAN, services the Kingston, Cornwall, Brockville and Belleville areas. It’s a fully memberdriven organization and has a close partnership with Launch Lab, a regional innovation centre based in Kingston, Ont. SOAN’s managing director, Mike Amos, points to the group’s informal, hands-on approach to investing and dealing with founders and entrepreneurs that makes the group distinctive. SOAN also has three key goals that members are quick to mention when asked: to help investees build successful businesses, to future-proof the economy in the Eastern Ontario Economic Corridor and to provide its investors with a risk-adjusted return on their investment.

Size of Group

145

Total dollars invested

42 Million $

Deals of Note Wavve Boating Easy-to-use marine navigation and community boating app that provides tide predictions and weather forecasts to help boaters. wavveboating.com

RockMass Technologies RockMass’s mission is to enable mines to operate safely and more efficiently through streamlined and digital data collection.

Contact Details Website soangels.ca 310 Bagot Street Kingston, Ont. K7K 3B4

Photo by Tima Miroshnichenko

rockmasstech.com

Mosaic Manufacturing This digital manufacturing company is disrupting conventional supply chains with enhanced digital manufacturing alternatives. mosaicmfg.com

ANGEL INVESTORS ONTARIO

Recent Highlights Forming Equation Angels alongside three other groups to gain efficiency in SWOAG’s process and use of resources.

London, Ont.

Southwestern Ontario Angel Group

ervicing London, Sarnia and the St. Thomas areas, Southwestern Ontario Angel Group (known as SWOAG) was founded by Carmen Gicante 15 years ago and was one of the first angel groups in the province to apply for funding from the National Angel Organization-Ontario (as AIO was called back then). The group incorporated in March 2008 and has been meeting ever since — in fact, many of its founding members (including Gicante) are still active investors today. “One thing that makes our group so unique is our longevity and the impact it has made locally here in London and the region,” says Jon Mycio, the group’s chapter director. SWOAG is also an active member of Equation Angels, a collaboration that combines the experiences and resources of four southern Ontario angel groups.

The group adapted well to COVID-19 and pivoted to an online experience while still being able to engage members.

Recruiting Jon Mycio to be the group’s new chapter director, which released Carmen Gicante from the role into semiretirement.

Size of Group

20 Deals of Note

Number of investments made

Biopharmaceutical manufacturing experts are creating a new type of aseptic filling system with innovative technologies. Acquired by Cytvia.

Total dollars invested

Renix

59 Million

Renix is all about separating liquids — extracting good from bad and removing bad from good for clients. Acquired by ClonBio Group Ltd.

Contact Details

vanrx.com

renix.ca

Race Roster

Website swoangel.com

This site offers event organizers, timers and fundraising coordinators the tools they need to design their events. Acquired by Asics.

Email info@swoangel.com

raceroster.com

A-333 Dufferin Avenue London, Ont. N6B 1Z3

ANGEL INVESTORS ONTARIO

Photo by Andrea Piacquadio

Vanrx

Recent Highlights

Ajax, Ont.

Spark Angel Network

park Angel Network is Durham Region and Northumberland County’s hub for those who want to invest in local companies. Ideal for angels located in the Durham and Northumberland area, the goal of those in the network is to provide a financial “spark” — these folks have a deep commitment to fostering economic development and entrepreneurial spirit in their region. General manager Kristen Marumoto says it’s all about Spark Angel Network’s approach and the group’s willingness to provide candid feedback to founders. “We’re completely transparent and move quickly to not waste the founders’ time because we understand that raising capital isn’t the most entertaining activity when we know they’d prefer to focus on building their business.” She adds that fostering a culture that focuses on community and a “genuine desire from our investing members to invest in the next generation of leaders” makes the group a success.

“The fact founders in the last couple of years have raised capital without actually meeting investors is quite a feat that can’t go ignored. If you told me this would be a reality in years prior to 2020 I’d have a hard time believing you,” says general manager Kristen Marumoto. CleanSlate UV, a portfolio company, saw exponential growth as hospitals needed a way to quickly and effectively keep their devices clean and germ-free to reduce the spread of COVID.

Size of Group

Number of investments made

Total dollars invested

Deals of Note

12 Million $

Enthusiast Gaming A digital media company that specializes in video-game journalism. enthusiastgaming.com

CleanSlate UV The company provides a simple, fast and effective way to sanitize mobile devices. cleanslateuv.com

Photo by Ron Lach

CHAR Technologies Decarbonizing for a circular economy through advanced design, technology and environmental services. chartechnologies.com

ANGEL INVESTORS ONTARIO

Contact Details Website sparkangels.ca Email info@sparkangels.ca 157 Harwood Avenue North Suite 205 Ajax, Ont. L1Z 0B6

Recent Highlights WECAN is growing its membership with a couple of new angel members joining in 2022. It has expanded its geographic reach and added members from smaller communities of Leamington and Chatham.

Windsor Essex Capital Angel Network

Windsor, Ont.

he Windsor Essex Capital Angel Network (WECAN) is made up of passionate angel investors in the Windsor-Essex and Chatham-Kent areas of the province. Deborah Livneh, WECAN’s executive director, says she’s most excited about the group’s recent growth. “Our angel group has more investor members than ever. WECAN is impacting more early-stage ventures and it is expanding its reach in the region. Our angels love connecting with local startups. Together, we’re building a community of investors and entrepreneurs, and we’re helping the region’s innovation economy grow,” she says. WECAN is also an active member of Equation Angels, a collaboration that combines the experiences and resources of four southern Ontario angel groups. “The partnership with Equation Angels has been a game-changer. We deliver a superb value to our angels with more investors, more expertise and more competitive deal flow of vetted, innovative businesses,” says Livneh.

WECAN is becoming a driving force in building a local community of entrepreneurs and investors. Just in the past few months, WECAN ran two pitch events with WEtech Alliance, and WECAN conducted two workshops with the Small Business and Entrepreneurship Centre for local founders exploring opportunities to fund their startups with angel investors. It also supported The Bridge “Take your Shot” youth entrepreneurs pitch event in Leamington.

Recently, WECAN has increased its visibility by becoming a full partner at Equation Angels. This partnership allows it to deliver to its members exceptional value and access wide-range expertise, excellent deal flow and help in due diligence. Its new board of directors, under the leadership of James Marsh, is actively involved with the Equation Angels board and committees and together they develop plans and strategies that help grow the impact of Windsor region’s angels.

Number of investments made

Deals of Note Foresight Analytics This company is all about safer roads. It helps professional drivers operate safely while saving them on their insurance costs. foresightanalytics.ca

Total dollars invested

5.5 Million $

Soteria’s proven technology when it comes to lithium-ion batteries gives customers peace of mind.

Contact Details

soteriabig.com

Website weangelnetwork.com

Forcen Tech

Email executive.director @weangelnetwork.com

This company is augmenting and surpassing human manipulation with scalable force/torque intelligence. forcen.tech

101-1501 Howard Avenue Windsor, Ont. N8X 3T5

ANGEL INVESTORS ONTARIO

Photo by Etkin Celep

Soteria Battery Innovation Group

Recent Highlights Four exits (Doorr, Pinch Financial, Dapasoft, eScribe) in 2020-2021

Markham, Ont.

York Angel Investors

ork Angel Investors (YAI) is one of the biggest and most active angel investor groups in the country, and services York Region (Markham, Richmond Hill, Vaughan, Aurora and Newmarket). Based out of Markham, Ont., the group, which has been a force since 2008, has members with super-diverse backgrounds in telecommunications, consumer goods, finance and banking, software (SAAS) and technology, healthcare, environment and energy, pharmaceutical industries and more. Executive director Katie Salem joined York Angels in 2019 after doing her own due diligence of groups in the Greater Toronto Area. She says she joined because of the diversity of the members. “We have a great mix of men and women, various ethnicities, entrepreneurs, industry executives and professionals. For me, when I walk into the room, I see a variety of skills and thinking styles often reflected in the feedback and questions the entrepreneurs receive, and it’s a multicoloured experience. I like how the members appreciate each other’s point of view and learn from each other and share a passion for helping the startups,” says Salem.

YAI launched the Women of York Program to attract women angel investors. The group hosted an online and in-person educational and networking lunch for women about angel Investing. YAI has been able to have two successful in-person with live Zoom (hybrid) meetings. “It’s great to see a mix of entrepreneurs and investors in person and on Zoom from across the country,” says Katie Salem.

Size of Group

65+

Number of investments made

345

Total dollars invested

Deals of Note

37.8 Million $

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ANGEL INVESTORS ONTARIO

Contact Details Website yorkangels.com Email ksalem@yorkangels.com 169 Enterprise Boulevard 3rd floor Markham, Ont. L6G 0E7

FOLLOW THE LEADER

JASON CALACANIS

 @jason calacanis  Jason Calacanis Podcast: Courses: Book:

These six innovation ecosystem heavyweights have some of the most influential and informative voices in the investing and entrepreneurship landscape. Read their books, listen to their podcasts and take their courses if you’re looking for a leg up.

This Week in Startups Angel University Online Workshop Angel: How to Invest in Technology Startups — Timeless Advice From an Angel Investor Who Turned $100,000 into $100,000,000

Need-to-know info: Jason Calacanis founded the Open Angel Forum, an event that connects early-stage startups with angel investors. He believes startups shouldn’t have to pay to pitch angel investors. California-based Calacanis is an angel investor in Robinhood, Wealthfront, Uber, Desktop Metal, Datastax, Thumbtack, Superhuman and Trello. He raised a $10-million fund for his own venture investment firm to invest in startups that emerged from the LAUNCH conference. He also invested in Calm, a meditation app that is now valued at more than $1 billion.

Danielle Graham Managing partner, Archangel Network and Phoenix Fire

STEPHEN R. POLAND

 @ArlanWasHere  Arlan Hamilton

 @1x1steve

The Bootstrapped VC Arlan’s Academy It’s About Damn Time: How to Turn Being Underestimated Into Your Greatest Advantage

Need-to-know info: Arlan Hamilton is an investor and the founder and managing partner of Backstage Capital, a fund that invests in “underestimated founders,” defined as women, people of colour and members of the LGBTQ community. To date, Backstage Capital has raised more than $15 million and has invested in more than 160 startups. Hamilton, who lives in Los Angeles, released her first book titled It’s About Damn Time: How to Turn Being Underestimated Into Your Greatest Advantage, which is based on her personal journey into entrepreneurship and venture capital.

Twitter: Courses: Book:

@1x1steve Startup Funding School: Early-Stage Startup Valuation Founder Equity Splits; Startup Valuation; Stock Options & Equity Compensation; Cap Tables; Term Sheets & Preferred Shares; Friends & Family Funding; Raising Angel Capital; Convertible Debt

Need-to-know info: Stephen R. Poland has worked with hundreds of startups and entrepreneurs, mentoring them on startup mechanics, funding plans, pitch decks, financial models and due-diligence documentation for the angel funding process. He brings more than 20 years of experience in startups and entrepreneurship to his career, and has leveraged leadership roles with the Walt Disney Company, MacMillan Publishing and Bertelsmann. North-Carolina-based Poland cofounded startups in the digital music and on-demand media manufacturing sectors, as well as an early anti-virus product.

ANGEL INVESTORS ONTARIO

Photos via LinkedIn, Twitter, Preshdineshkumar

Podcast: Courses: Book:

ARLAN HAMILTON

RESOURCE

Newsletter: Podcast:

PIETER DORSMAN

MICHAEL BADHAM

 @PieterDorsman  Pieter Dorsman

 @Michael_Badham  Michael Badham

pieterdorsman.substack.com Finding Your Champion: Demystifying Founder/ Funder Relationships

Need-to-know info: Pieter Dorsman is a seasoned adviser, investor and mentor who is president and CEO of Redpeaks Management Inc., a consulting firm focused on advising technology companies on capital raising, mergers and acquisitions and restructuring activities. Dorsman is also the director and CFO at E-Fund, a Vancouver-based angel investment fund. He runs two workshops for the National Angel Capital Organization (NACO): Deal Structuring & Term Sheets and The Art of Valuation. The Vancouver resident also helped NACO develop a common standard for term sheets. Current and past deals include Actenum, Agility FX, Choice BV, Chrysalix, ClearVision, Curatio, Embedded Automation, Interpodia, Lambda Solutions, Magnify Digital and many more.

Courses:

International Institute of Business Valuers

Need-to-know info: Michael Badham brings 40 years of experience in large and small advisory partnerships, helping client businesses with their financings, mergers and acquisitions, business growth strategies and designing appropriate finance strategies for both Canadian and international clients. Toronto-based Badham is the executive director and chair of the International Institute of Business Valuers (a global not-for-profit organization supporting international business valuation education courses and initiatives) and the managing director and president of Georgian Angel Network.

More Media Here are three other ecosystem podcasts and publications we simply can’t get enough of.

CLAUDETTE MCGOWAN

 @CMMcgowan  Claudette M. Podcast:

C SUITE

Need-to-know info: Claudette McGowan is the global executive officer for cybersecurity at TD Canada. She has more than 18 years of success leading digital transformations, optimizing infrastructure and designing new approaches that improve service experiences. The Aurora, Ont.-based executive spent years working in the technology industry for several organizations such as Deloitte, Toronto Police Services, North York General Hospital, Bank of Montreal and TD Bank. In 2020, she was nominated chair of the Coalition of Innovation Leaders Against Racism (CILAR), a diverse group of senior business leaders committed to fighting anti-Black and systemic racism and creating pathways for diverse professionals to participate meaningfully in the innovation economy.

ANGEL INVESTORS ONTARIO

By Lisa van de Geyn Startup Canada Podcast Business journalist and entrepreneur Rick Spence offers helpful resources, financial lessons and personal stories from founders who are making a difference in the entrepreneurship community. Download where you get your podcasts. A Practical Guide to Angel Investing: How to Achieve Good Returns Published by the National Angel Capital Organization and written by expert Steve A. Gedeon, this book offers everything you need to know about investing in Canada, from A to Z. digital.builtbyangels.com The Spark This quarterly magazine is dedicated to all things business and innovation happening across Ontario’s eastern corridor. Read about brilliant companies and up-and-coming entrepreneurs making a mark in their industries. thesparkmagazine.ca

Congratulations to AIO on its 15 Year Anniversary! Another year of Excellence! We are proud to be part of your robust network!

Roseview Global Incubator is the culmination of years of experience in the startup ecosystem. Our specialty is international entrepreneurs. We are grateful to be a part of the Ontario Angel Eco-system, using our extensive experience, skills and knowledge to take a business from ideation to launch. We are the global incubator fueling the next generation of Canadian companies.

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Roseview Global Incubator is a designated entity under IRCC Start-up Visa Program

As Angel Investors Ontario marks a milestone anniversary, it’s time to look back at where angels in the province have been, where we are now and where we’re going.

By Kate Tomen Photo by Rick Rieger, Rieger Photography

o much has happened since 2007. It was just 15 years ago, in 2007, when the world was introduced to the iPhone. (Think about it — the iPhone has been in our pockets since 2007.) The following year saw a global recession, with the crash of the stock market and housing prices. Barack Obama was sworn in as the 44th president of the U.S. in 2009, making him the first Black president to take the esteemed office. The hashtag #BlackLivesMatter started popping up in social media feeds as early as 2013, though we know the movement gained much more momentum and power in the years that followed. The NASA spacecraft New Horizons became the

ANGEL INVESTORS ONTARIO

first human-made object to fly past and observe the dwarf planet Pluto in 2015. There was a referendum in 2016 that saw Britain vote to leave the European Union (and just like that, “Brexit” was born). Then, as most of us can’t yet even conceive of forgetting, a novel coronavirus, SARS-CoV-2, was discovered overseas at the end of 2019. The world was ultimately forced into lockdown when the World Health Organization declared COVID-19 a global pandemic in March 2020. (It’s hard to remember what life was like before the word “pivot” entered our everyday lexicon.) But when you look back, there’s been a constant over the past 15 years

when it comes to Ontario’s innovation ecosystem. The mission of Angel Investors Ontario (affectionately dubbed AIO) has been to grow Ontario’s angel investing community to build prosperity, create jobs and strengthen our society. And since its inception, the angel investing community and entrepreneurial ecosystem here in Ontario has grown by leaps and bounds. Since 2007, there have been 16 angel groups created in the province, and these folks have invested more than a whopping $600 million back into Ontario’s economy to support founders and builders at the earliest and riskiest stages of entrepreneurship. Now, in 2022, AIO is coming of age. Over the past decade and a half, the

Sustainability of Ontario’s Angel Groups The government’s support means the world to ensuring the ecosystem thrives.

organization has cultivated and nurtured a strong, highly involved network of investors, but even more importantly, a strong, highly dedicated network of mentors. Angels not only invest in startups, but they provide incomparable knowledge, access to vast networks, industry contacts and so much more. There’s no doubt about it: Angels play an essential role in the entrepreneurial ecosystem. In addition to providing capital, angels are often actively involved in the startups they invest in, making them invaluable to the entrepreneurs they fund. Angels act as mentors and advisers, increasing the chances of startup success. (You can read more about what angels do on page 33.) Our remarkable network of 16 notfor-profit angel groups and investment clubs has made a profound impact on both the angels who have invested their time, money and business acumen, as well as the entrepreneurs who have been on the receiving end of these investments and mentorship contributions. Ontario’s angels have helped to build a plethora of successful companies like Top Hat, Enthusiast Gaming, Wealthsimple and others that you’ll read about throughout this magazine. There is no other provincial umbrella organization that exists as the catalyst for individuals to provide funding directly to startups

and help mentor entrepreneurs to grow and thrive. With the support of angels, new businesses are encouraged to the point where venture capitalists (VC) are interested to invest, funding the next stages of growth. As most founders can attest, without angels, these companies simply wouldn’t be possible. Angels are the dream-makers. Blake Witkin, cofounder of Maple Leaf Angels, puts it this way: “Angel networks are the maternity wards for startups and angels are the midwives — a vital community for raising successful businesses.” AIO has demonstrated its ability to draw out the valuable talents of both angel investors and the entrepreneurs they assist and support, time and time again. So much has occurred in AIO’s 15 years of active service to the angel ecosystem. To celebrate this milestone anniversary, we looked back at where we started and where we are today. Thanks to the incredible angels, founders, volunteers and mentors in our community, we’ve collectively contributed to immense job creation and economic growth and development. We’ve done our part to make the province a prosperous place, where founders can see their innovations bloom and succeed. Here’s our story.

A paper prepared for a workshop organized by the Dutch Ministry of Economic Affairs and the OECD LEED Programme on Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship, written by Colin Mason from the University of Glasgow and Dr. Ross Brown from the University of St. Andrews in the U.K., noted that a holistic approach to policy is needed, and that policy should focus on three elements within the ecosystem: the entrepreneurial actors, the resource providers and the entrepreneurial connectors. AIO can play multiple roles as both the resource provider and the entrepreneurial connector.   There is a role for government in supporting the ecosystem, particularly the funding of angel groups. The funds are allocated toward organizing the meetings to create opportunities for angels to invest their own private money and thus creating jobs in the process. Federal dollars are never used to invest directly into companies, nor do they go to angels themselves. Access to capital at the angel and seed stage has been, and continues to be, critical to the success of the Ontario startup ecosystem. By funding the angel ecosystem, the government is not picking winners or losers, but is enabling access to capital by early-stage companies that are not served by the private banking and brokerage communities.

ANGEL INVESTORS ONTARIO

That Was Then… A

ngel investing in Canada began to gain traction in the early 1990s with the rise of the dot-com craze. The federal and provincial governments created Labour Sponsored Venture Capital Funds, which made venture capital investing somewhat tax-efficient to the retail investing public. David Brown, a lawyer back then (and now a senior partner), remembers following up on an article in the newspaper about interest in a Toronto venture capital club. Brown became involved in what would become the Toronto Venture Group (TVG). This group was a not-for-profit organization with a mandate to “bridge the gap between entrepreneurs and capital” through networking events, education, trade shows, lobbying and communication. Established in 1990, TVG events included monthly breakfast meetings, seminars and led to the founding of Canada’s first formal angel group in 2000 (the Toronto Angel Group), whose DNA now traces through to what is known today as the Maple Leaf Angels and industry trade show Canadian Venture Forum. Brown, a partner at WeirFoulds LLP and a member of AIO’s board of directors, says angel investing was all about giving back in the day. This remains the top driver for angels in Ontario.

ANGEL INVESTORS ONTARIO

Skip ahead a handful of years and in 2006, angel investing looked a whole lot different from what it does now. Most angel investments were made by “lone wolf” investors (or perhaps by just two or three friends) without much support from others. At that time, there was very little educational material available for interested investors, nor was there much for entrepreneurs, who didn’t really know how to go about seeking early-stage funding. Activity by those individual angels was not tracked by any entity, so it was difficult to convince governments to support angel investing. (Without records, how would the government know the significant impact angels were making?) Looking to our neighbours to the south, it was clear that government and public policy had a role to play in commercializing and supporting the striking and robust technology coming out of the universities and colleges. At the time, there was a lot of support for the commercialization of research coming from Ontario’s academic institutions, too. Patricia Lorenz remembers this time well. She originally got involved to help with setting up a method for angel groups to apply for and receive funding and was elected to AIO’s original board in July 2008. The Ministry of Research and Innovation

The Impact of Angels Why do they do it? Here’s what one report recently found.

According to The Impact of Angel Investment & Factors that Contribute to Success report, conducted by Northern Ontario Angels and Suzanne Sterling published in 2016 and updated in 2018 (and which was featured in AIO’s 20182019 annual report), more than 68 percent of angel investors have expressed a desire to enable economic development to improve the economy for their children and grandchildren. Nearly 74 percent have noted that mentoring highly talented and creative people is the main reason they decided to get involved in angel investing. Just as many have an interest in discovering new technologies and taking part in nurturing that. The goal and the metric in economic development is job creation. If new jobs cost too much to create, opportunities dry up and progress stalls. Happily, the average cost to FedNor for each new job created is only $980. Any job costs must also be weighed against the potential returns, namely taxes, that can be collected from those new employees, most of whom may have existing positions in established companies already providing tax revenue. Jobs created through angel investment are high impact at low cost.

would eventually formalize Ontario’s angel networks and fund the creation of Network of Angel OrganizationsOntario (or NAO-O, which later became known as AIO). She had been active in angel investing in the early 1990s and also performed duediligence investigations and subsequent investment oversight for two angel groups while consulting in the biotech industry, among other career highlights. She says that there was a push for the commercialization of biotechnology innovations coming out of universities, and the connection that angels create between the research and investors who take these research projects to market. Looking to a slightly more mature ecosystem in the U.S., there was a clear case for government support for angel networks to work alongside Regional Innovation Centres (RICs). Brown was adamant that there was an important role for government to play in angel investing, supporting operations of

groups or making angel investing “more attractive” to the accredited investor. He was a big believer in the idea that for large companies to grow in Canada, and provide critical well-paying jobs, we needed to nurture them from their

earliest stage — something angels are perfect for. Thanks, in part, to those early players in the ecosystem like Brown and Lorenz, who advocated on behalf of Ontario’s angel communities, in 2007, the Ontario government began the

Angel Network Program (ANP) and the NAO-O, which was incorporated as a not-for-profit coordinating entity. NAO-O received money to distribute to the initial three angel investor groups, and to grow angel groups that would hopefully one day cover the entire province. NAO-O also created resources and tools for angel groups to use and share. In those days, its office was co-located with the folks at the National Angel Capital Organization (NACO) in Toronto, and those early employees and champions who worked for NAO-O had a mandate to help start and support groups across the province. With ANP funding, the great contribution of angel investors began to be tracked and metrics were collected by NAO-O. With this data, governments suddenly began to understand better the crucial role that angel investors play within the knowledge-based economy and local job creation.

FIFTEEN YEARS IN THE MAKING 2007 The Ontario government starts the Angel Network Program (ANP) and AIO, then named the Network of Angel Organizations-Ontario (NAO-O), was incorporated as a not-for-profit coordinating entity; Jeffrey Steiner is NAO-O’s executive director; Maple Leaf Angels forms.

2008 York Angel Investors forms; Southwestern Ontario Angel Group forms; Golden Triangle Angel Network forms; Northern Ontario Angels forms.

2009 302 angels are associated with Angel Network Program (ANP); Capital Angel Network forms.

2010 Niagara Angel Network forms.

ANGEL INVESTORS ONTARIO

In 2007, Ontario’s strategy was to create an “innovation ecosystem” — an efficient and effective commercialization network driven by the Ministry of Research and Innovation with the goal to create strong links at all levels of the ecosystem. These strong links would help to improve the transfer of knowledge and technology to the private sector, help Ontario companies reap the benefits of government investment in research and development and foster a culture of entrepreneurship throughout the process. With growing awareness of the importance of nurturing homegrown companies, there was a shift starting in the mindset of Canadian policy-makers and thought leaders. It was becoming clearer that a small amount of government money could leverage a large amount of private money to create jobs and positive economic impact. Economic development is critical to the success of any community, whether through innovation and entrepreneurship, or investment and growth. As a business grows and hires more employees, it expands its footprint within its community, increasing its contributions to the local economy and through taxes to the government. At the time, there was a drive to

2011 The government of Canada, through the Federal Development Agency of Southern Ontario (FedDev) started its Investing in Business Innovation (IBI) Program, which initiated the IBI matching investment program, granting one-third of the amount funded by angels in certified angel organizations or clubs. Georgian Angel Network forms; Angel One forms.

ANGEL INVESTORS ONTARIO

support research coming out of the universities and colleges, and 17 RICs in Ontario were created. “The RIC network has played a central role in broadening the innovation ecosystem to reach all corners of the province,” says Yvonne Pilon, president and CEO at WEtech Alliance, a RIC in Windsor serving the Windsor-Essex and Chatham-Kent regions. “Over the last decade, we have seen both the RIC network and angel communities work together to ensure that entrepreneurs from Windsor to Sudbury have access to capital, mentoring and a network of support.” There was also a parallel plan in motion to create regional angel groups alongside the RICs so that entrepreneurs could get much-needed mentorship and assistance before pitching to local angels. As angel groups popped up around the province and as new ones were created, their personalities came shining through. Groups were started, bonds were formed, best practices were being shaped and innovators and founders across the province were receiving funds to grow their brilliant ideas. It was the start of a beautiful relationship indeed. These years were filled with a grassroots zeal for growth, progress and development, not only of the econo-

2012 The ANP demonstrated that organizing angel investors generates measurable gains for the innovation economy, with more than 500 non-profit group members reporting they had cumulatively invested more than $37 million into 75 Ontario companies since 2007 (another $67 million was reportedly invested into these companies). Keiretsu Forum forms.

my, but also of the people of Ontario. NACO and NAO-O would team up to host conferences and events for the angel community where angels would hear from a variety of speakers and panelists. By 2011, NAO-O had worked hard advocating for angels and angel groups to the governments. Then, the government of Canada, through the Federal Development Agency of Southern Ontario (FedDev) started its Investing in Business Innovation (IBI) Program, which initiated the IBI matching investment program, granting one-third of the amount funded by angels in certified angel organizations or clubs. This federal IBI program gave NAO-O and NACO $1 million each for a three-year program to 2014. It was funding that would lead to the creation of additional regional groups and help make the ecosystem more efficient in service of the startups that desperately needed early-stage funding from angels. This was a huge win. There were now 13 angel groups across the province being supported by NAO-O. With the coordination of NAO-O as an umbrella organization, angel groups saw the benefits of syndicating investment into deals across several groups. Group members also saw

2013 Jeffrey Steiner brings all angel groups together in one room for the first time; Spark Angel Network forms. GreenSky Capital Inc. forms.

the benefit of specific due diligence talent found in other groups. The groups then attracted the interest of small VC funds that wanted angels to co-invest into deals that involved early-stage companies that they were considering. February 2013 saw a milestone for NAO-O and the angel groups. Jeffrey Steiner, the organization’s executive director, began the first planning session of all angel groups together in one room and started an ongoing series of group manager and chair meetings where best practices were shared and obstacles and opportunities for angel groups were explored in a coordinated fashion. It was the first time the organization had formally brought the groups together — a practice that would evolve over the next decade. Records from that year show federal and provincial funding helped clubs reach 950 members across the province, with $255 million in direct member investment, and co-investment and follow-on investment by non-members. An impressive 169 Ontario companies were funded, with more than 2,275 jobs created. In time for the organization’s 10th anniversary in 2017, NAO-O’s directors and members believed it was time for a

fresh rebrand, which included changing the name to what it’s currently known as: Angel Investors Ontario. With this rebrand, AIO set forth a mission statement still held today. At that 10th anniversary, the cumulative total invested across the network of angel groups in the province was $308,963,114 back into Ontario’s economy. This time also marked a successful operation of a 10-year ANP program (supported by Ontario’s Ministry of Research and Innovation) for the Ontario government totalling approximately $6.5 million. AIO, as the administrator of the program, established a rigorous assessment process for determining how this much-needed government support would go to each group and involved a financial assistance committee to oversee the granting out to all of the Ontario angel groups. In the summer of 2018, AIO joined forces with the Young Presidents Organization (YPO) to co-host a oneday angel investment deal and education event in Toronto. This one-of-akind event brought together investors from across Ontario and the U.S. to watch presentations from Ontario’s high-potential entrepreneurs, attend education seminars and to network with

like-minded professionals and industry leaders. AIO continued to hold highimpact events to bring together the investing community. The Angels and Refugee Entrepreneurs Program was a unique joint pilot program between Jumpstart and AIO aimed at empowering and supporting refugee entrepreneurs with innovative businesses or business ideas. In March 2019, AIO held intensive entrepreneur workshops, which involved having 15 expert and leadership speakers over two days, ending with a networking reception for the founders, supporters and leadership in the startup and investing ecosystems. More than 50 founders attended the workshops. Of the 50 founders, 10 were selected to receive an additional eight weeks of mentorship and coaching. The top entrepreneurs were invited to present their venture to angel investors for a chance of funding and support during a pitch event in May 2019. A selected number of the pitching founders were invited to attend the Ontario Centres of Excellence Discovery Conference to grow their network and connections in the startup and funding communities. It was a time of great progress, purpose and growth for the angel community.

FIFTEEN YEARS IN THE MAKING 2014 There was a network of angel investor groups representing an aggregate of 1,000 accredited investors. The network directly invested and leveraged $466 million in private capital into 235 Ontario companies and created 3,200 jobs with $10 million of federal and provincial funded. Southeastern Ontario Angel Network forms; Windsor Essex Capital Angel Network forms.

2015 Groups included more than 672 members reported by non-profit angel groups across Ontario; ANP members reported they had investeding more than $116 million into 215 Ontario technology companies cumulatively since 2007; another $171-million-plus was reportedly invested into these technology companies by non-ANP Network Angels; more than 2,080 jobs were created or retained by Ontario technology companies receiving angel investment since 2007. Peterborough Region Angel Network forms.

2017 For the 10th anniversary of NAO-O, its directors and members decide to rebrand, which includes changing the name to Angel Investors Ontario. The cumulative total invested across the network of angel groups in the province is $308,963,114 back into Ontario’s economy.

ANGEL INVESTORS ONTARIO

…This is Now O

ntario’s angel ecosystem continues to reach new plateaus each year. And this growth is necessary, of course, to bring new funds to entrepreneurs for their ventures. The consistency and extent of investment activities across the province clearly show that organized angels are a growing force, and they continue to make a difference for entrepreneurs. We’ve collectively made such a difference that angels have invested more than $600 million to

2019 Angels and Refugee Entrepreneur Program initiative; Women’s Angel Initiative with Bereskin & Parr.

ANGEL INVESTORS ONTARIO

date, and they show no signs of slowing down. Despite the pressures of a global pandemic and not-for-profit challenges, Ontario’s angels have a strong future.    Most recently, AIO has focused on three main priorities. The first has been to help grow businesses. AIO has helped small- and medium-sized enterprises grow and expand to compete in international markets. The second has been to create an innovation-driven economy that thrives on the initiative, creativity, education and skills of its

2020 HaloHealth forms.

2022 AIO’s 15th anniversary celebrating with 16 angel groups: Capital Angel Network, Spark Angel Network, Southeastern Ontario Angel Network, Southwestern Ontario Angels, Niagara Angel Network, York Angel Investors, Maple Leaf Angels, Peterborough Regional Angel Network, Keiretsu Forum Canada, GreenSky, HaloHealth, Windsor Essex Capital Angel Network, Golden Triangle Angel Network, Georgian Angel Network, Angel One, Northern Ontario Angels.

Representation Matters Diversity, equity and inclusion are more than buzzwords. It’s time to ensure Ontario’s angel groups are as well-represented as possible.

Angel investor groups have been struggling for some time to see gender diversity in their angel communities. Access to capital is a significant barrier for women looking to launch or scale a business. Women are less likely to seek debt and equity financing, and when they do, they are more likely to be rejected or receive less money (on average) than their male counterparts. To address this funding gap, we must look at those investing in entrepreneurs. Representation on both sides of the table — founder and funder — is imperative in closing the gender gap. It’s well known that investors tend to invest in candidates who mirror themselves. For instance, it was found that venture capital firms with women partners are twice as likely to fund women-led startups. A study by the Angel Capital Association, the governing body for angel groups in the U.S., found that women are more likely than men to consider the founders’ gender as highly important. Having more female angels may impact the extent to which women-led startups are being given the opportunity and platform to receive early-stage financing. The capital, expertise and networks of Canada’s leading women are being underutilized. In Canada, the number of women accredited investors (and therefore potential angels) is multiplying. In the past decade, the total number of women earning at least $250,000 jumped by 49 percent — three times the 16 percent increase in men seen in the same period. In 2015, women accounted for 20 percent of the top earners,

according to Statistics Canada research published in 2019. Increasing the number of women angels has a cyclical effect on the entrepreneurial ecosystem — more female angels will create more funded female entrepreneurs. When female founders exit, many of them will recycle their capital and expertise back into the startup ecosystem. Raising awareness and recruitment to attract women investors is an important step in women’s economic empowerment and supporting women entrepreneurs. Angels provide more than just funding — they are an essential part of the entrepreneurial ecosystem. Angels provide early-stage startups with mentorship and network connections and help to shape the future economy. Diversity in those on the other side of the table, funding early-stage startups, leads to diversity in founders. Women and minorities have untapped industry experience, corporate networks and accredited investor capital that allows them to have a real impact on early-stage companies. Embracing diversity means higher profits, more revenue and better innovation. It’s win-win. Our community is so much more vibrant when we include diverse populations. AIO looks toward a real diverse and inclusive angel community and continually looks for active ways to include women, persons of colour, LGBTQI+, persons with disabilities, refugees, immigrants and Indigenous people on both sides of the table, as founders and funders.

people. Finally, AIO has worked hard to modernize Ontario’s regulatory system. The organization has been key in removing regulatory barriers to growth and establishing new, modern practices. Another thing AIO has worked hard to do has been creating angel mentor networks. With the explosion of accelerators, most startup communities around the country and the world are developing very robust mentor networks for companies. AIO is a conduit to coordinate with other organizations in the startup community such as the Ontario Centre of Innovation (OCI), NACO and Ryerson University’s DMZ, for example, as well as corporations with access to subject matter experts such as OPG (Darlington facility) and Lakeridge Health. “OCI has been de-risking early-stage investment opportunities for investors, helping make high-potential start-ups investor ready for the past three decades,” says Claudia Krywiak, president and CEO of OCI. “Our long-standing relationship with AIO has been a valuable and necessary component of the innovation ecosystem across Ontario.” Early-stage companies and startups are just beginning to grow their partner ecosystems. In this phase, planning is extremely critical. They generally have two high-priority areas of focus. One is to recruit qualified sales partners. The other is to implement a scalable support system that will allow them to manage those partners in an affordable and accessible way. AIO knows that the funnel of angel opportunities needs to be supported so that these startups can have a chance of making it to the stage where VCs will be interested in investing in their companies. There is no other funding for startups except for friends and family rounds to keep them in business long enough to be seen by VCs. Regional innovation centres help startups at a pre-angel stage, sometimes even before entrepreneurs have tapped friends and families. Venture capital and private equity invest only after they have proof of commercialization, while angel investors tend to look for the first sign of the minimum viable product. Angels provide necessary risk capital, so small companies can grow into large corporations. Angels continue to invigorate Ontario’s innovation economy.

ANGEL INVESTORS ONTARIO

And Then There’s Tomorrow A

s the entrepreneurial ecosystem in Ontario continues to evolve, so too must our network of angel investors. AIO is proposing some regulatory reforms as Ontario Securities Commission rules prevent local angel groups, from charging any fees for their services, thus denying what could be an important source of revenue. Additional sources of funding could further reduce the reliance on government. AIO has had significant direct input into the Capital Market Modernization Taskforce, initiated by the Ontario Minister of Finance two years ago. The organization has submitted the following key suggestion: to give angel groups a clear exemption from

ANGEL INVESTORS ONTARIO

being regulated as a market dealer. In addition, AIO has proposed that a small success fee may be charged by angel groups from funds raised for entrepreneurs to help sustain the operations of local angel groups which are non-profit organizations. AIO has also supported the idea that the definition of “accredited investor” be broadened to include those with additional professional certifications. This should create opportunities for more citizens to invest in the startup community and increase the potential pool of angel group members supporting entrepreneurs. Ontario’s angels and entrepreneurs have reaped many rewards over the past

15 years, and the network is as committed as it’s ever been to continue its support and mobilization of its members. When we consider the long-term impact that the ecosystem has had on the province’s ability to commercialize innovation across a diverse range of industries, one thing becomes evident: Our network’s capacity to bring together angels and entrepreneurs, drawing on their talents and expertise, will create a positive ripple effect felt not only by the people of Ontario, but by those living throughout Canada and beyond. x

ANGEL INVESTORS ONTARIO

There are plenty of reasons why angels invest, but it often comes down to helping early-stage companies succeed. The 18 innovative and inspiring founders and companies you’ll read about in the pages that follow have unique stories with something incredible in common: Ontario angel investors got on board and helped them realize their dreams. Compiled by

Lisa van de Geyn

ANGEL INVESTORS ONTARIO

FIIX SOFTWARE SUNCAYR spotmyuv.com

Andrew Martinko

Cofounder, Suncayr; Director of Operations, Dig It Apparel Mississauga, Ont.

The angel journey.

We make one product called Spot My UV, which is a colour-changing indicator that tells you when your sunscreen has worn off. Spot My UV is a sticker that you put on your skin. Once the sticker is on, you put your sunscreen overtop of it. The sunscreen will block the UV light from reaching the skin and the sticker will turn from purple to clear, so you know you’ve put on enough sunscreen. Over time, your sunscreen wears off. It wears off the sticker at the same rate it wears off your skin — that’s the core technology, Dermatrue skinmimicking layer. The sticker will again turn purple when enough UV light is reaching it from the sun, and that indicates it’s time to put on more sunscreen. My cofounders and I are engineers from the University of Waterloo. At the culmination of engineering education in Canada, you do a capstone design project and we had ideas. We wanted to think of an idea that would potentially be a company. We talked about a bunch of different ideas but one that kept coming back to us was skin cancer and sunburn. My grandmother and mother have both had skin cancer and a couple of team members have had family with skin cancer. We know there’s a product that’s been on the market for decades in sunscreen, but we wanted to know why people were still getting burned at the beach. We looked at ways we could potentially solve that problem and eventually landed on the sticker.

Maple Leaf Angels (MLA) was the first group we got funding from in 2017. One of the great parts about JLabs in MaRS is that there were events, and we went to one that was a quick elevator-pitch session. There we met Probal Lala, who was the chairman of MLA at the time. The first pitch was to Probal at the event. There were follow-up conversations, and then we were formally brought on for the pitching component in front of four or five board members of the investment fund who were there. MLA has a good network of companies and we’ve connected with some of them. From a mentorship perspective, Probal joined our board of directors and that provided a lot of help for me as CEO. He helped when it came to governance, guidance, structure. He helped with negotiations and fundraising. He’s the voice in the room who can provide context where we haven’t had that experience before. Our experience has been so positive.

Photo by Valmedia

Company notes.

ANGEL INVESTORS ONTARIO

FIIX SOFTWARE fiixsoftware.com

James Novak CEO Toronto

The angel journey.

Fiix works with equipment-intensive, production-oriented businesses to help them modernize their maintenance departments. Our core offering is a computerized maintenance management system (CMMS), which helps maintenance and operations teams schedule, organize and track equipment maintenance, connect to business systems and make data-driven decisions. We also recognize that it takes way more than software to enable the scale of digital transformation that our customers are going through, which is why we focus on offering super-simple integrations and industry expertise to guide our customers through their digital maintenance journey.

As serial entrepreneurs and angels themselves, Fiix’s founders were incredibly engaged in the early-stage startup community. Marc Castel, Fiix’s cofounder and former CEO, was heavily involved in the startup ecosystem, and so many of his relationships with angels pre-existed Fiix. Those early-stage investors, including those from Niagara Angel Network (NAN), were so critical as Fiix (maintenance assistant at the time) was building our foundation. They brought market, technical and business expertise to the table and acted as a much-needed sounding board for management in those early days as we navigated early-stage business complexities. Angels were also critical in building confidence in our business from the beginning. Our early investors believed in our team, our vision and our belief that we could build a business that transforms the maintenance market while contributing positively to society. This belief eventually grew into our higher purpose and focus on building a triple bottom line business that prioritizes people and planet alongside profit. Many of the angels were directors or advisory board members throughout the years at Fiix. Angels contributed at each stage of Fiix’s growth. While their roles may have changed over the years, their support was unwavering. In the first stages of the company, angels helped set up our governance, foundation for scale and our social mission. Later, as Fiix raised a Series A, B and C totalling almost US$60 million, and grew to more than 200 employees with over 3,000 companies on our platform in more than 90 countries, angels continued to be active participants and guides who supported our growth.

Photo by Lucas Blazek

Company notes.

ANGEL INVESTORS ONTARIO

MOSAIC MANUFACTURING Chris Labelle mosaicmfg.com

Cofounder and COO Toronto

The angel journey.

Mosaic is disrupting conventional supply chains with enhanced digital manufacturing alternatives. Our Array product line automates the 3D printing process, allowing 3D printing to be used in scaled manufacturing applications. Array reduces the cost of a 3D-printed part by up to 95 percent and allows one operator to run the equivalent of 250 3D printers, compared to today’s industry standard of one operator per 15 machines. The concept for Array began after numerous conversations with manufacturing companies who were looking to harness Mosaic’s original technology (Palette) for their industrial applications. We worked with these groups to understand their goals, metrics and what they were looking for out of 3D printing, and together we designed a solution that would allow them to adopt 3D printing at scale.

We were originally introduced to the Southeastern Ontario Angel Network (SOAN) through Launch Lab, the regional innovation centre in Kingston, Ont. We met the SOAN’s executive director at the time, John Molloy, who brought us into their first pitch event. Mosaic ended up being the first angel deal to come out of SOAN — we closed a small round with them a few months after our initial pitch. All our SOAN investors have been supportive, we communicate through monthly newsletters and yearly investor calls to ensure everyone is up to date. When we took on our initial investment, Mosaic was made up of our three cofounders. Since then, our team has grown to more than 50 people, we are operating profitably and we’ve shipped more than 15,000 hardware products across the globe. SOAN was a really crucial player to help us get to where we are today. Photo by ThisIsEngineering

Company notes.

ANGEL INVESTORS ONTARIO

CHICKAPEA chickapea.com

Shelby Taylor Founder and CEO Collingwood, Ont.

The angel journey.

Chickapea pasta is a nutritious, high-protein and organic pasta option made with only chickpeas and lentils. All Chickapea foods are organic, non-GMO, gluten-free, vegan and kosher. We also offer a healthier version of a family favourite — a Vegan Mac with macaroni elbows and a savoury sweet potato, pumpkin and cauliflower sauce. We pride ourselves on offering the highest quality, best-tasting, cleanest and most sustainable meal options possible. Chickapea was created to provide a nutritious, convenient and familiar meal option to families dealing with time constraints, picky eaters, allergies and health issues. As a former health food store owner and new mom, I recognized the challenge of putting a healthy meal on the table that everyone would enjoy, so I turned a family favourite (pasta) into a superfood.

My first encounter with Georgian Angel Network (GAN) was through the Henry Bernick Entrepreneurship Centre in 2015. They were holding their first exCite! Week pitch event. The founder and chair of GAN at the time, Sandy Robertson, was on the panel and lucky for me, he took a great interest in my business. Sandy helped me to get the business started and introduced me to other members of GAN, several of which have invested in Chickapea. Sandy organized for me to pitch to many different angel groups across Ontario. I think GAN was my third or fourth group and they were a very warm group with lots of great questions. I have more investors from GAN than any other angel group, and many of them have continued to invest over the years. I have always been able to reach out to my investors for advice or connections — they are more than happy to share what and who they know. We do a lot of work with one of our GAN investor’s media companies, which has been a great relationship for us. I truly believe the business wouldn’t exist without my angel investors. They are the ones who invested in me before I even had a completed prototype to share. They’ve been willing to invest on a convertible note and many of them have helped bridge the company’s financing between equity raises. My angels invested in me before we had sold a single unit of pasta and this year, we’ll do well over $10 million in sales.

Photo by Pavel Danilyuk

Company notes.

ANGEL INVESTORS ONTARIO

wavveboating.com

Adam Allore Founder and CEO Kingston, Ont.

Company notes.

The angel journey.

Wavve Boating is a marine navigation app to help boaters navigate and explore with ease, while connecting to their boating community. It customizes nautical charts to the draft of the user’s vessel, and real-time water levels, to provide an intuitive and easy-to-read map. Boaters can see their friends on the water, share their favourite spots and discover new routes and other great locations. I grew up boating around the Thousand Islands and regularly saw the challenges everyday boaters faced while working at a marina to pay for my engineering degree. Many boaters of various proclaimed experience levels did not know how to, or did not care to, read nautical charts in their traditional format. Secondly, I was consistently being asked the same questions: Where’s the best beach? Anchoring spot? Fishing hole? After working as an engineer for more than seven years and noting that these problems were still not solved to my satisfaction, I decided to build a new marine-navigation solution.

I became familiar with Southeastern Ontario Angel Network (SOAN) early in Wavve’s journey through connections at the local startup innovation hub (Launch Lab). Raising money for Wavve through family and friends was not an approach I wanted to take, thus I needed to get the company to a position that it would be attractive to angel investors and ultimately achieve our first outside capital. After I felt we had achieved the traction to be of interest to angels, I reached out to Launch Lab to get connected with John Molloy (the executive director at the time) and Capital Angel Network (CAN) through L-Spark. These two angel organizations were where I was introduced to the angels who ultimately invested in Wavve. My experience with SOAN was less formulaic than I was expecting. I had the opportunity to build a relationship with several angels, and most of them ultimately ended up investing in Wavve. I’ve appreciated this experience as the angels who have invested in Wavve feel more part of the team than just being a source for growth capital. The angels who have joined the team have acted as advisers, therapists, sounding boards and sometimes employees. Since our angel round, Wavve’s revenue has grown by 700 percent, our team has tripled, we’ve partnered with the largest manufacturer of personal watercraft and are just getting started.

ANGEL INVESTORS ONTARIO

Photo by Vito Giaccari

WAVVE BOATING

3D CITYSCAPES 3dcityscapes.ca

Raza Jafri

Cofounder and vice-chairman Toronto

The angel journey.

We are an immersive tech company and build experiences and environments that mimic the real world. When we started the company, the initial focus was on urban planning; there was a major need for taking planning principles and visions of cities from pen and paper into the digital world. We want to show 3D environments that can help our cities to build, plan and showcase the future in a more sustainable way. During the pandemic, we had to pivot to proptech for developers so buyers could see what homes would look like inside and out without going to the presentation centres. It saved the business and helped us grow. As a kid, I used to play Sim City a lot and enjoyed planning and developing urban neighbourhoods. I wanted to design sustainable cities and help municipalities grow in a more conscious and efficient way. After studying urban planning, I designed a biofuel recycling facility for the City of Edmonton. They asked for more than AutoCAD drawings (design and drafting software) to show how facilities would fit into the urban environment. I was limited in detailed visualization tools aside from SketchUp and was curious. I thought there must be better technology that can help showcase how an environment comes together in 3D. That’s when the idea took shape.

Sometimes you don’t know what you have in your own backyard and the power of your own network. Living in Durham Region, I’ve always enjoyed the quality of life and proximity to Toronto but with a more tranquil lifestyle. That said, there’s so much happening in Durham with Durham College, Ontario Tech University, Invest Durham, Spark Centre and Spark Angels — there’s a lot of great innovation happening right here. Now that I am in the ecosystem and have a supportive network, I’m realizing this is one of the best places in Ontario to start a business and getting better every day. Being part of Spark Angels has been great — they’ve given us access to their networks, contacts and amazing services. They’ve really helped us spark our business. I remember pitching Spark Angels at Whitby City Hall. We pitched to a room of 50 members. We got such an amazing response; it was so nice because these angel investors have had their own experiences and are now giving back to the next generation. Spark Angels is like a family. It’s heartwarming to see there are people out there who care about helping the next generation of entrepreneurs succeed. With the help of Spark Angels, we are likely to see many more innovative companies take flight soon.

Photo by 3Dcityscapes

Company notes.

ANGEL INVESTORS ONTARIO

SIMPLY THE BEST

thegrowcer.ca

Alida Burke Cofounder and CFO Ottawa

Company notes.

The angel journey.

The Growcer enables you to grow fresh, hyper-local produce yearround with our hydroponic modular farms. What we call a “farm” is essentially a custom-built insulated structure (the size of a shipping container) using hydroponics to grow a variety of leafy vegetables and herbs. Hydroponics is a way of growing that uses nutrient-rich water instead of soil and special plant lights instead of the sun. We also stack the plants vertically so we’re able to grow more plants in a smaller space. By harnessing the power of hydroponics, we unlock growing food for more people using less water, less land, and fewer pest control products. My cofounder, Corey Ellis, and I were both a part of a student club at the University of Ottawa focused on social entrepreneurship. In the second semester of my first year, there was an opportunity to visit Iqaluit, Nunavut. This trip opened our eyes to the challenges faced by northerners around food insecurity. We experienced the common “sticker shock” of food prices when we visited a local grocery store.

Our first encounter with Capital Angel Network (CAN) was as students at the University of Ottawa. CAN had hosted a pitch competition for student entrepreneurs, which we were fortunate to have won with a $10,000 SAFE from CAN investors. This was our first convertible note investment into the company and we have been connected to the network ever since. CAN has been extremely helpful for us as we look to take our company to the next level, whether it is supporting our growth or connecting us to valuable opportunities within their network. We have used the funds for growth investments, like research and development infrastructure and growing the team. Female CAN investors also supported us as part of a $150,000 investment through the SheBoot program. It’s hard to quantify the impact of the angels because they offer so much in terms of mentorship, networking and perspective. We have been fortunate to lean on various CAN members for advice, feedback and suggestions on our growth and investment strategy. This allowed us to think critically on our approach and ensure we had a strong foundation on which to build for scale. We have grown from one farm to more than 35 farms across the country. We’ve grown from one employee to a team of 30. We’ve moved from our space at the Invest Ottawa incubator into our own office. We’ve bootstrapped the company the past five years and we’re at the stage where we’re raising capital to scale further.

ANGEL INVESTORS ONTARIO

Photo by Pragyan Bezbaruah

THE GROWCER

TIPTAP tiptappay.com

Chris Greenfield Founder and CEO Burlington, Ont.

The angel journey.

tiptap is a “tech for good” company focused on helping others by helping charities raise more funds through impulse giving with touchless giving™ and touchless payments™. Our society is becoming increasingly cashless, making it harder for charities to collect loose change donations. We partner with community-based organizations to help them raise money for those in need. tiptap has created a first-of-its-kind NFC-enabled wireless device that allows for the instant acceptance of any contactless payment or donation. Each unit functions as an autonomous point-of-sale system, enabling touchless transactions without additional equipment or complicated backend infrastructure. It started with the idea of helping those who are helping others. Donating to those in need should never be complicated. One day I found myself not able to give as I had no cash on me, and the idea for tiptap was born. I knew there was a need for individuals to be able to give with what’s already in their pockets — debit, credit and mobile wallets.

We first met Spark Angels members at a pitch competition. We were approached by a couple of members and asked if we would present at their next meeting as they enjoyed the presentation and thought the concept had great merit and would fit well with their investment group. From my first meeting working with Spark Angels, we knew it was a great fit. I think first and foremost angels believed in our purpose and what we were trying to achieve as a company for social good. I still remember after our first presentation they told us that they had never seen that many hands go in the air in terms of members wanting to participate in a deal. Together with all members I think we were at close to $150,000 to $200,000 in total investment at an early stage. More valuable than the investment has been the guidance and advice that we have received from some of the key investors. The introductions they have provided have been extraordinary. Their guidance, specifically from Bruce Green as an adviser, has been tremendous. Whether it’s strategy growth opportunities or executive coaching, they’ve helped us through some of the most difficult times. Bruce participates monthly in our executive advisory calls. Often, he will follow up with multi-page notes with his thoughts and ideas, which are tremendous as they spark considerations and insights we may not have considered previously, or they reinforce that what we’re focused on is the right thing. Beyond all, Spark Angels has been a true partner in this journey and we wouldn’t be where we are without their help. With the help of the angels who invested, tiptap has been able to grow our business from a startup to a scale-up and help hundreds of charities along the way.

Photo by Tim Douglas

Company notes.

ANGEL INVESTORS ONTARIO

RNA DIAGNOSTICS INC.

John Connolly

rnadiagnostics.com

Cofounder and CEO Toronto/Sudbury, Ont.

The angel journey.

We’ve developed a diagnostic test that allows doctors and breast cancer patients to understand whether the chemotherapy patients are being treated with is going to help them. The test is performed after two cycles of chemo have been given to the patient. Next, a biopsy is taken from the tumour, and we analyze the ribonucleic acid (RNA) and look at whether the cell machinery is broken down beyond a certain point. If it is, it means that drug is working, and the patient is likely to receive a benefit from that treatment. If we see a low degree of RNA disruption or a breakdown of RNA, it means more cycles of that drug are not likely to benefit the patient and they should consider an alternate treatment. The company has been around for 10 years, and it’s based on a discovery made by Dr. Amadeo Parissenti at Laurentian University during a clinical trial. The lightbulb moment for him was when he thought it might be possible to analyze a patient’s tumour and RNA during treatment to see whether drugs would work or not.

We started at NORCAT in Sudbury and was connected to Northern Ontario Angels (NOA). Our experience with NOA was fantastic; in fact, without the angels, we wouldn’t be here today. We wouldn’t be bringing this very promising technology to market without the angel support we had, especially in Sudbury. I can’t say enough good things about the support we’ve received from them in Northern Ontario. We have about 40 to 50 angel shareholders in the Sudbury area. We have also gotten support in terms of advice. We were a little more sophisticated than some early-stage startups in the sense that I’d been in the venture-capital industry for a long time, so I wasn’t naive about what it meant to raise money. Angels are a very important part of the whole support for early-stage seed-stage companies here in Ontario. There was a lack of venture investment sources 10 years, ago but it’s getting better.

Photo by Gustavo Fring

Company notes.

ANGEL INVESTORS ONTARIO

ESCRIBE escribemeetings.com

Robert Treumann Cofounder, president and CEO Markham, Ont.

The angel journey.

We’re a cloud-based meeting management platform providing end-toend meeting management targeted at public-sector council boards and committees. The idea is to reduce the complexity of meetings — to improve efficiency, transparency and accessibility before, during and after your meetings. eScribe is a pivot from a consulting company that focused on public-sector consulting, primarily business processes and automation, and through that work, working with clerks and clerks’ departments in a number of municipalities, we identified a lot of manual processes and a real automation gap. Essentially this is 10 or 12 years ago now, but there we were, essentially with stone tablets and chisels, managing the meeting process, so we felt there was a real opportunity to improve automation. Bringing all those processes into the digital age, that was really the journey.

I got connected to York Angel Investors (YAI) in 2012 by two mentors from Markham’s ventureLAB. I was inexperienced at promoting the company, I’d never raised capital. They really took a great liking to the business, and they really helped us get ready to shop ourselves around to several organizations, angel groups and venture capitalists, and we developed a pitch. We presented and raised a term sheet with them and worked it through the system. We got buy-in for about $350,000; we were looking to raise $500,000 at the time. But we didn’t proceed with the investment then. It came down to not being ready. We needed to develop the idea more and understand how we could scale it. Later, we ended up getting connected with YAI member Muneer Hirji, who was referred to us. He arrived at the table and took a fresh look at the business. Muneer used the York Angels term sheet and a lawyer from the group to get the deal done. And because he stepped in so firmly, we didn’t have a need to raise outside capital. Muneer ended up sitting on the board and was active with the business, though he continued to let us run and grow it. He offered discipline around the processes we needed to scale and good solid business practices and guidance. With Muneer’s help, we joined forces with OnBoard, a horizonal board-management company. Together with OnBoard and underwritten by JMI Private Equity, we intend to grow more aggressively and we’re now expanding across the U.S. We had a choice of exits and how we wanted to move the business to the next level. I didn’t see it as the end, I saw it as setting the business up for the next stage of growth that it needed.

Photo by Anna Shvets

Company notes.

ANGEL INVESTORS ONTARIO

inkblottherapy.com

Luke Vigeant Cofounder and president Toronto

Company notes.

The angel journey.

Inkblot Therapy exists to provide accessible, affordable and effective mental health care to everyone. The way we make it work is we have a product any Canadian can go to and get matched with a therapist to receive care. The best way to get affordable healthcare is if you’re not paying for it and your employer is, so we focus heavily on shifting employee mental health benefit procurement to purchase the best mental health benefits for employees. In our system, we’re not matching you with a therapist who’s closest with you, we’re matching you with a therapist who has the most improved health outcomes of those who’ve gone through the system like you. Then you can do all your scheduling, payments and bookings on the platform and submit it to your insurance.

We had a super unsuccessful pitch at Maple Leaf Angels (MLA) in 2015. When we first started pitching the business it seemed kind of fringe. There wasn’t the kind of societal understanding that mental health was a big thing. We didn’t even really know what our business model was, we just knew that it sucked. Then we got a lot better at pitching. The first meaningful interaction we had with MLA was when we finally understood that this was more than just a community service but a company that needed to exist. That was in January 2019. It was very hard to get investment because they were looking for a level of sophistication we didn’t have. They beat us up in that meeting. It wasn’t easy capital to get. We were told there were some areas we still needed to refine, and it was valid feedback. We still picked up small cheques, then got our first official MLA investment nine months later once we took some of that feedback from the meeting and getting advice from other investors and we then got a meaningful amount of capital. One member who invested took on an active role in terms of being a subject-matter expert. When they invested, they were very forthright as to how they could help, and what their strengths and expertise were. A few of them did that. So, suddenly you have these people in your corner and you have their baseball card about what they’re good at, and then when problems came up, you know who to turn to. There was another MLA investor who had huge experience in employee-assistance programs, and we were able to leverage them and knock pricing around and how our programs felt related to their 20-year career in the space. It was an informal support system but a helpful one.

ANGEL INVESTORS ONTARIO

Photo by Andrea Piacquadio

INKBLOT THERAPY

RENIX renix.ca

Christine Haas Cofounder and president London, Ont.

The angel journey.

Renix uses proprietary technology and know-how to separate and purify materials such as food ingredients, beverages, water, or metals and minerals.

I was first introduced to Southwestern Ontario Angel Network (SWO Angels) back in 2010 by Hank Vander Laan, who I knew through a personal connection. Hank was one of the founding members of the group, and of course very well-known in the London business community. With his background in water, he perhaps had more understanding of our space than others might have. SWO Angels have been great to work with. We were there very early — the group had only been around for a couple of years at that time. Initially, there were nine individuals who invested just over $100,000, combined with investments from the Ontario Centre of Innovation and Bioindustrial Innovation Canada. The group of nine grew over time and supported subsequent rounds along the way. I’m the first to admit that I was new to entrepreneurship — pitching to a group of angel investors was brand new to me. I came from an industry background — I worked in manufacturing and in a plant automation business; I was an engineer with some hands-on business experience, but no formal business education. I had a lot of great coaching from a few people associated with SWO Angels, TechAlliance and similar organizations, particularly in the area of financing and corporate structure. In those early days, that was very helpful. Beyond investment, several of the angels have been involved in strategic planning, business development or advisory working groups on topics like sales and marketing, intellectual property, financing, etc. Renix has gone from being a concept at lab scale to industrial scale implementation. We recently exited the angels and closed with a new strategic investor headquartered in Ireland.

Photo by Pixabay

Company notes.

ANGEL INVESTORS ONTARIO

surfeasy.com

Chris Houston Founder and CEO London, Ont.

Company notes.

The angel journey.

SurfEasy was built to help anyone take back control over their online privacy. Our solutions encrypt all the data in and out of your device and prevent websites from tracking you online. Our underlying technology is a Virtual Private Network or VPN that has historically been used to protect data for large companies. SurfEasy made this enterprise grade security accessible to the consumer market. Our first product was the SurfEasy USB Private Browser. It was a small USB key that you could plug into any computer, and it would launch a secure web browser, encrypt the internet connection and leave nothing behind on the computer when you removed it. I first came up with this idea when I joined a large Canadian telco company. I was presented with IT documents that explained their policies on monitoring of internet traffic. I didn’t like the idea of my personal internet activity being monitored by the company, so I hacked together a rough version of what became the SurfEasy USB Private Browser.

I was first introduced to the Niagara Angel Network (NAN) through Karen Grant at Angel One. She liked what we were doing and was very helpful in connecting us with other angel networks. NAN was great to work with from the very beginning. Raising money for an early-stage company is challenging and can take a lot of time away from running your company (which at that stage is more than a full-time job). One of the great things about working with NAN is that the investors are most often entrepreneurs themselves. They understand the challenges that come from building an early-stage company in a way that many others can’t. Throughout our process of working with them, the members provided a lot of helpful advice and mentorship. NAN members participated in our funding alongside Angel One. The group appointed Blake Laufer to represent the group as a member of our board and he added a ton of value to our board and provided a great conduit to the knowledge inside the larger network. Without the support of the angels who invested in our last round of funding we would not have achieved the success we did; in fact, we may not have survived at all. About one year after the NAN round, SurfEasy was acquired by Opera Software, providing a great return to our angels. As part of Opera, we started powering a solution for the largest cybersecurity company in the world, Symantec. Under their consumer brand Norton, SurfEasy grew to be one of the company’s top offerings and led to Symantec acquiring SurfEasy from Opera. Today, SurfEasy still operates as a stand-alone brand and the technology powers a key part of Norton’s consumer security solution making it the largest consumer VPN product in the world.

ANGEL INVESTORS ONTARIO

Photo by Cottonbro

SURFEASY

RANK SOFTWARE

Photo by Ketut Subiyanto

arcticwolf.com

Niranjan Mayya

Founder and CEO, RANK Software; chief technical officer, innovation, Arctic Wolf Toronto

Company notes.

The angel journey.

RANK Software is a Toronto-based cybersecurity company. Our flagship product RANK VASA is a next-generation security intelligence and analytics platform. VASA (Virtual Adviser to Security Analysts) helps enterprises identify and analyze cybersecurity threats in real time, allowing organizations to take a proactive security posture in a fast-changing threat landscape. It was acquired by Arctic Wolf in August 2021. Prior to RANK, I spent three years at Blackberry, where I worked on building a real-time analytics platform based on open-source no-SQL technologies. When I exited Blackberry (in 2013), my thesis was that a generic big data platform would be of material value to enterprises. Along with RANK’s first employee, we set about building parts of this platform and leveraging this for services engagements that we executed to keep the lights on. One such engagement ended up being used by Swisscom for a cybersecurity-use case. This ended up being our first and most significant pivot into cybersecurity. We eventually negotiated a three-year enterprise licence with Swisscom for our platform, and this formed the basis for us to get funded and grow the company.

We met with GreenSky in 2012. They were introduced to us by a mutual business acquaintance who was considering an investment in RANK. GreenSky ended up leading that round. My initial impression of GreenSky was that they were tough but fair negotiators. At that time, we had a CEO and COO in place who did the bulk of the negotiating with Mike List, so I was only peripherally involved. Later, I had occasion to interact more closely with both Mike and Greg and have had an excellent working relationship with them. Early in 2013, I advised the board that it was a good idea to try and sell RANK. GreenSky took an active role both at the board level with respect to all aspects of the sale process, and eventually in negotiating the deal with Arctic Wolf. In August 2021, we had a very successful exit by selling to Arctic Wolf. Investors and employees both had a very successful outcome financially; and employees all moved on to meaningful roles in the new company. Mike List was my active partner in the negotiations with Arctic Wolf, and his negotiating prowess certainly helped us secure a significantly better deal than we otherwise would have.

ANGEL INVESTORS ONTARIO

MARINER ENDOSURGERY

President and COO Hamilton, Ont.

Company notes.

The angel journey.

Mariner is a surgical device company focused on commercializing products that improve patient safety for minimally invasive procedures. The company designs, builds and sells software, hardware and robotics systems that work together with existing equipment in the operating room to aid surgeons in delivering new visualization tools to reduce risk to patients. Dr. David Langlois is our chief medical officer and the other cofounder. LaparoGuard, our flagship product cleared by the Food and Drug Administration (FDA), was his idea, which stemmed from his years as a practising surgeon and noting that surgeons of all experience levels would encounter procedures in which unexpected risk items would appear and tools were needed to identify and manage the risk in real time. Dr. Langlois wanted to see if there was a way to draw real-time, virtual reality safety zones overtop a patient’s anatomy on the video screen used for visualization during a procedure to inform the surgeon before the hot stick strays. Several patents, and a great engineering team led by Dr. Tian Zhang, led to the FDA clearing the completed LaparoGuard product, which is now used by surgeons.

We got connected to Angel One through our regional innovation centre, Hamilton’s Innovation Factory. There was an Angel One first-look event. A few of the angels saw the underlying tech, intellectual property and, of course, market need and thought we were worthy of additional consideration. This led to follow-up meetings from November 2015 to eventually closing our round in January 2017. We were never invited to pitch to the whole group. It was a first-look event — most angels did not seem interested in us but the few that did were highly motivated. This was a consistent theme for Mariner in those days. But I stuck with the people I knew and kept educating them about our company and letting them learn more about who I was and how I behaved, as the management is so critical to the success of the startup. Two of the angels who invested remain board members (one remains chairman to this day), another excellent angel became a board member and remains our largest investor. Plenty of coaching has been received. I never pretended that an MBA degree meant I understood corporate finance. But it did help I think in being ready to absorb the knowledge, skill and experience my board dished out to me regularly. I’ve learned that the behind-the-scenes processes that dictate how efficiently a company is run is critical for evolving past the nascent “garage startup” days. And more broadly, I believe by putting these formal accounting processes in place, you’re demonstrating to your shareholder base a respect for their capital. Every dollar an angel investor has put into your company has been earned elsewhere and could be invested elsewhere, so make them count.

ANGEL INVESTORS ONTARIO

Photo by Tima Miroshnichenko

marinerendosurgery.com

Mitch Wilson

BDI HOLDINGS LIMITED bdi.holdings.ltd@gmail.com

Frank D’Addetta Cofounder Sault Ste. Marie, Ont.

The angel journey.

Our most recent project is a school conversion. We converted an old elementary school in Sault Ste. Marie that closed several years ago. The building of 20 units was geared toward seniors or people with disabilities. It has zero-barrier access and it’s built on one level. My cofounder and I came together years ago to start an investment business and we wanted to expand. We reached out to two of our colleagues, who we knew and were all investing separately, but we wanted to do something bigger and better together. In 2018, we started our journey as a partnership of four, buying, repurposing and renovating buildings.

We were connected to Northern Ontario Angels (NOA) when we worked on our initial project, renovating another former school. NOA is one of the largest angel investment organizations in North America. Its mission is to connect angel investors to Northern Ontario entrepreneurs. The local NOA consultant covering Sault Ste. Marie/Algoma heard we were going to do it again and invited us to a couple of NOA pitch events. One pitch event was at our local Quattro Hotel and Conference Centre that NOA had organized. We were put in a room with a number of local Investors and other local developers/community stakeholders. We did a formal presentation with a business case including financials and a slide presentation about the project. Following our presentation, we got into the nitty-gritty and that is how we found the two investors who wanted to invest in our business. We formed such a great relationship over the past few years and these two gentlemen liked our project concept so much that they’ve actually become our business partners. NOA has been very helpful and supportive by connecting us with the right community stakeholders, which has been an integral part of the process. If we were not asked to participate in the NOA pitch event that day with the NOA investors this project partnership probably would never have happened. These same NOA investors have connected us with pretty much everyone we do business with today. We stay in contact and continue to work with our new business partners. As a result, we now associate with approximately 10 local businesses that we have developed a relationship with over the past few years, and they have been awesome and very supportive. We would not have been able to do this project without having our new business partner investors who have become mentors. These same two business investors have helped us with presentations and developing marketing and financial materials and proposals. For example, these same two investors who became our business partners joining our original partnership of four and now our team is six. As of today, we have acquired three additional properties with a total of approximately 60 units valued at an estimated $12 million.

Photo by Mikael Blomkvist

Company notes.

ANGEL INVESTORS ONTARIO

SIMPLY THE BEST

cyclicarx.com

Naheed Kurji

Cofounder, president and CEO Toronto

Company notes.

The angel journey.

It currently takes too long and costs too much to bring new medicines to patients in need. Therefore we believe that the future of the pharmaceutical industry is in the hands of hyper-innovative biotech companies. Cyclica, a neo-biotech, is creating that future with the mission to lead the industry in scale and speed at which programs are progressed into the clinic and to patients. Our platform integrates state-of-the-art internally developed and proprietary AI methods, with other computational and experimental techniques, to streamline the way in which medicines are discovered and advanced to patients in the clinic. By combining our AIaccelerated drug-discovery platform, scalable technology flywheel and a seasoned team of drug hunters, we’re industrializing the discovery of better medicines to create and advance hundreds of drug-discovery programs with an initial focus on CNS, oncology and inflammatory diseases. Ultimately, Cyclica aspires to build and advance the most sustainable pipeline of drug discovery programs in the industry.

GreenSky, through its President’s Club, supported Cyclica with its seed round of financing back in 2013 to 2014. I was formally connected once I joined Cyclica in 2014, but my personal connection with Greg Stewart went back to business school as we both attended Rotman at the University of Toronto. Our relationship has been extremely supportive and collaborative. Mike List is on the Cyclica board of directors and someone with whom we rely on for specific and expert advice. We have always felt as though we’re in very trustworthy hands. Over the years, as GreenSky has grown itself with now multiple active funds, they have continued to support Cyclica’s growth financially and through advisory. I’ve built a strong and enduring relationship with Mike List, who sits on Cyclica’s board, Greg Stewart and the growing team at GreenSky. Cyclica went through challenges during the 2014 to 2017 time frame as we recalibrated our business. I was appointed as CEO in April 2016 when we were an eight-person company, and during a time when we were under financial pressure and our organization was in disarray. It was the relationship with GreenSky, and the collective effort of my board, advisers and management team, that helped us overcome many of the operational issues. During those challenging times and since then, GreenSky has continued to stand by us both as financial partners and advisers. Beyond leading our Series A round in 2017, GreenSky participated in our $23 million Series B round of financing in 2020, which was led by Drive Capital. Today, Cyclica has close to 70 people including FTEs, consultants, advisers and board members with a headquarters in Canada and operations in the U.S., U.K., Europe and Japan.

ANGEL INVESTORS ONTARIO

Photo by Castorly Stock

CYCLICA

ORION BIOTECHNOLOGY

Photo by Chokniti Khongchum

orionbiotechnology.com

Mark Groper President and CEO Ottawa

Company notes.

The angel journey.

Orion is a Canadian clinical stage company that has developed a proprietary technology platform for precision engineering small peptides and proteins. Why is this important? It is allowing us to unlock the therapeutic potential ($150 billion market) of one of the largest groups of drug targets called G-Protein Coupled Receptors (or GPCRs for short), which have been highly sought after by the industry but proven to be undruggable using traditional drug modalities of either small molecules or antibodies. Orion’s proprietary technology platform enables us to precision engineered biologics that are specifically designed to fit the surface area of the receptor like a key in a lock — facilitating the creation of a new class of drugs that can effectively target these complex GPCR receptors. The company is leveraging this proprietary platform to develop a growing pipeline of best-in-class therapeutics for the treatment of cancer and other serious diseases. Orion’s technology platform was born from decades of ground-breaking research coming out of the University of Geneva. This research was conducted by one of world’s foremost authorities in the field and now the company’s vice-president of drug discovery, Dr. Oliver Hartley.

We were connected to Keiretsu through our financial services provider, Consero Global. We have had a very positive experience dealing with Keiretsu. They have a structured process, which provided clarity on what we needed to do to secure funding from the outset of our interaction with them. They also provided very good support through the entire process, which included helping us to fine-tune our messaging in a manner that would be digestible to their membership. Keiretsu assembled a highly qualified due diligence team. Over a period of two months, the Keiretsu due diligence team conducted a thorough review of our company and the investment opportunity and produced an excellent report that assisted our funding efforts. Keiretsu has been a tremendous partner providing not only capital but also strong resources and connections to assist us in a variety of areas. This included syndicating other investment groups and providing industry contacts with other organizations in our ecosystem. x

ANGEL INVESTORS ONTARIO

York Angel Investors is linking Entrepreneurs seeking early-stage funding, Investors committed to supporting the entrepreneurial spirit with capital, connections, and mentorship, and Partners supporting their growth with their expertise. We would like to thank our 100+ members who have collectively invested over $39M into more than 350 startups since our inception in 2008. We also want to take this opportunity to thank our amazing sponsors

Get in touch with us to pitch your startup, become an angel investor, or partner with us! 169 Enterprise Blvd., 3rd ﬂoor Markham, Ontario L6G 0E7 www.yorkangels.com

Email us at admin@yorkangels.com Follow us on Twitter @yorkangels Find us on LinkedIn. Search York Angel Investors

Keep Watch There are certain sectors that are in vogue when it comes to the industries angels are keen to invest in. We all know what’s trending: Edutech, cleantech, health tech, fintech and software are arguably top of mind for most investors. We’re keeping an eye on the landscape and rounded up 11 companies that are doing spectacular things in red-hot categories and asked them to tell us about their angel journeys.

Compiled by

Lisa van de Geyn

ANGEL INVESTORS ONTARIO

A Sign of Things to Come

Duncan Stewart Photo by Nikki Ross

Duncan Stewart, the director of technology, media, entertainment and telecommunications (TMT) research for Deloitte Canada, told us about three industries that are poised to turn heads and demand attention from investors both here and abroad.

ANGEL INVESTORS ONTARIO

I am a co-author of Deloitte’s annual Tech, Media and Telecom Predictions report for 2022. The main purpose of Predictions is to guide our clients across all industries in planning for the future, but it doesn’t stop a lot of the people I talk to in my global road show from using its content as a guide to investing. We covered 19 topics this year. Here’s a list of the three that seem interesting to my investing clients.

RISC-V

Healthcare Wearables

Privacy-Enhancing Technologies

This is an open-source Instruction Set Architecture (ISA) that competes against closed and proprietary ISAs from Intel and Arm. They have a virtual duopoly on the ISAs for processors inside computers, data centres, mobile devices and so on, and a third (and open!) alternative was interesting, and RISC-V already accounted for more than a quarter of new chip designs. But February 2022’s announcement that Intel joined the RISC-V alliance as a premier member and has created a US$1-billion fund to invest in the technology moved it onto the front page. Deloitte predicted that RISC-V will double this year, and we may end up being too low.

Healthcare wearables is a large but fragmented market, with no dominant player owning the space. In terms of the wearables, these are much more than step-counting toys: These are regulator-approved smartwatches and smart-patches for monitoring patients with serious diseases. Blood oxygenation, high blood pressure, atrial fibrillation and blood-glucose monitoring are all done better if done continuously. Deloitte predicted that more than 320 million of these devices will sell in 2022 and will grow at a double-digit rate.

Privacy-enhancing technologies such as homomorphic encryption and federated learning are nascent: We predicted they will only be about $250 million this year. But if you look at which companies have publicly announced they are using either or both technologies, it contains more than half of the largest companies in the world, and a bunch of big ones in Canada, too. Being able to perform machine learning on data while it is still encrypted or distributing the AI computations to edge devices are not privacy panaceas – but can help a lot. One topic that almost every investor is asking me about is the Metaverse. We didn’t write about it in TMT Predictions 2022 but will for the 2023 edition. Stay tuned; you can read it in December. In the meantime, follow me on Twitter @dunstewart.

ANGEL INVESTORS ONTARIO

Vineet Johnson President and CEO Sudbury, Ont.

Company notes. If you know someone who has had a stroke, you’ll know that the hand on the affected half of the body can curl up and, unfortunately, the person can’t use it for the rest of their lives. There are currently no cost-effective rehabilitation device solutions in the marketplace. Occupational and physiotherapists will typically work with the individuals one-on-one using the rudimentary tools (e.g. squeeze balls) currently available. Training must be neurophysiology and neurorehabilitation oriented, targeted and focused, due to the fact that it’s very complex. IRegained came up with a unique solution, which focuses on the brain’s ability to re-learn, scientifically called “neuroplasticity.” Our device, the MyHandTM System, helps these therapists improve hand function so that stroke survivors can regain their functional independence. Our goal is to “reprogram” a stroke survivor’s brains so their hand can, once again, execute basic everyday functions like toileting, eating, writing, etc. It’s about helping them regain their hand function and reclaim their independence once again.

Keep

iregained.com

The angel journey. Most of our investors are members of the Northern Ontario Angels (NOA), and we also have several Equation Angels members. Our investors come from different backgrounds and some provide strategic mentorship. I have one who will call me and ask when the last time I took a break was and invite me over for a beer. Something as fundamental as that, to deep strategic mentorship on various aspects of running the company. We have two or three investors who run companies and they tell us how they run their companies successfully and how to expect problems before they arrive. Quite a few investors are handson. Some act as advisers to our board. In terms of time or a dollar figure, it’s significant. Some of them have dedicated as many as 80 hours each year for the past three years and for this support we are grateful.

ANGEL INVESTORS ONTARIO

Watch ANGEL INVESTORS ONTARIO

foresightanalytics.ca

Nima Ashtari Founder Toronto

Company notes. We’re focused on the mission of safer roads. The way we achieve that is by first measuring the risk that’s on the roads and lowering that risk through interventions that are targeted. Our interventions include providing coaching services directly to drivers by leveraging the data that comes from measuring their driving performance, showing them their own risky moves. We apply Autonomous Vehicle (AV) Artificial Intelligence (AI) to do our measurements and use humans in the loop to coach and be in touch with professional drivers directly. This is the first time AV technology is being used to change professional drivers’ behaviour to encourage safer habits while also doing a much better job of measuring risk for the purpose of insuring it.

The angel journey. We’ve dealt with a few angel groups, including Maple Leaf Angels and Windsor Essex Capital Angel Network (WECAN). Our first encounter was with Equation Angels — that’s how we got connected with WECAN. I think we’ve had a pretty good experience overall. After about a year of internal development, we hit the angel circuit and our first pre-seed investors came out of Equation and WECAN (April 2021). We also leveraged a lot of the connections we made through these groups. The biggest connection to date was through one of the angels and to the most prominent person on our team today. Bob Tisdale, who was the long-time president and COO of Pembridge and Pafco, which was later acquired by All State, sits on our board and leads our partnerships with insurance companies. He’s delivered immense value through his advice and deep network in the insurance industry. We’ve since closed our seed round (December 2021) and are looking at our Series A round now (mid-2022) so the progress has been fast, and we really couldn’t have done it without those early wins.

On Deck Tabassum Pasha, cofounder of WaiveTheWait, talks about what she’s currently working on.

Q A

What is WaiveTheWait? It’s a patient communication company that enables clinics, hospitals and other medical organizations to run at optimal efficiency. Currently, we have two products that can work together or separately. Our Smart Waiting Room allows patients to arrive at the clinic when the staff are ready to see them. Our AI algorithms calculate the delay at the clinic (or if the clinic is running early) and let the patient know when to leave their house, accounting for the situation at the clinic and commute times. They can complete any required forms and inform the clinic about their journey status without downloading an app. Our second solution is the Automated Task System. It automates and completes tasks (such as complex follow-ups) submitted by doctors into their Electronic Medical Records system. This reduces operating costs and saves clinics more than 2 hours every day allowing staff to focus on other responsibilities.

Q A

What’s coming up for the company? The next steps are to grow our team and focus on business development. The feedback on our products from our customers has been excellent, and we are excited to begin scaling. Our solutions work together to create the optimal way to communicate with patients, create efficiencies, and improve patient care. They are dynamic and can be tailored to fit the needs of any type of practice. We also have found new applications for our products in preventative care and roster management, which have proven valuable for clinics, not only to reduce costs but to directly increase revenue. waivethewait.com.

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telebionix.com

Aghiath Chbib Founder and COO California, U.S.

Company notes. We have developed Remosense, which enables the patient to share real-time vital signs during a remote consultation at the same diagnostic level as they would on a face-to-face visit with their healthcare provider. Remosense is the medical device and platform to close the information gap between telehealth and digital health applications by measuring heart rate, heart variability, blood pressure, blood oxygenation, body temperature, eight lead ECG and stethoscope. This device intends to become your household tool for immediate healthcare access from the comfort of your home.

The angel journey. The team at Georgian Angel Network was very meticulous in understanding everything about our mission, go-to-market plan, technology and overall view of the future of healthcare. Yes, it takes time to go over that process. Still, at the same time, it gives peace of mind, knowing our potential investors understand our direction and will be comfortable during the complex process of pushing a startup to success. The angel community was key to our current position and success. Let’s be sincere about it: Angels take a huge risk when investing into a startup. Yes, the dividend is there when successful, but a significant number of startups do not make it to their presented goals. Having angel investors made our company possible, and we owe them our infinite appreciation and the proper return on investment for their risk-taking.

ANGEL INVESTORS ONTARIO

learnexperts.ai

spectraplasmonics.com

Sarah Sedgman

Malcolm Eade

CEO Ottawa

Cofounder and CEO Kingston, Ont.

Company notes.

LearnExperts is passionate about helping clients to quickly build learning content that grows expertise and skills. We have a system called LEAi (LearnExperts Artificial intelligence), which is a learning content-creation tool that allows people and businesses to use the content they already have to create well-structured knowledge-sharing and training programs. With the assistance of AI and human intelligence, LEAi creates content for traditional training, eLearning, microlearning, knowledge base articles, presentations, webinars, videos and more.

Spectra builds technology that enables lab-grade testing in the palm of a person’s hand. Our solution is currently focused on reducing drug overdoses by allowing frontline healthcare groups to test street drugs for harmful contaminants. Our chemical sensing platform is applicable to a wide range of applications that require sensitive, accurate chemical analysis or diagnostics at the point of need. Our cofounding team started the venture while completing our studies at Queen’s University, where a few of us had the opportunity to work hands-on with the sensing technology we have now commercialized. We saw the potential to make a platform that could greatly reduce the time and complexity of chemical analysis while still providing a high-quality result across various healthcare-like applications. Health Canada provided us the initial funding to build a portable drug-checking system that could be used in frontline healthcare settings like safe injection sites. We have been focused on deploying that solution since.

The angel journey. I was connected to Capital Angel Network (CAN) through my network and Invest Ottawa. The executive director at CAN invited me to a meet-and-greet networking event. This was a fantastic way to practice a summary of my pitch, introduce myself to several angel investors and gave me an opportunity to ask them questions, too. I was then invited to pitch to the entire CAN and attended the pitch event. After the pitch, 20-plus CAN angel investors had interest in due diligence and 15 invested, making CAN the top angel investor group to invest in our $1.25-million round. We also had investors from Maple Leaf Angels, where I found my lead investor, Georgian Angel Network, and MaRS IAF, which is usually connected with the angel networks as well. I can reach out to any angel investor for advice, and they are quick to respond. I’m fortunate to have a variety of experience and backgrounds, so when I need help on a particular topic or area, I can usually find an expert. I really appreciate the advice and guidance and it’s helped us make better decisions and track in the right direction over the past nine months.

ANGEL INVESTORS ONTARIO

The angel journey. We initially met and pitched to Capital Angel Network (CAN) by going through the standard process, which, at the time, was submitting a form through Gust. This then led to a showcase pitch in front of the network and subsequent meetings with angels who had interest in our company. Going through CAN’s process was very professional and friendly, and even before investments were made, we received excellent feedback and advice on our venture. Our CAN investors have also been great advisers and mentors, with a focus on sales and business strategy. Most recently, our latest investors from CAN have made key introductions that will be instrumental to our U.S. growth strategy. We would not have made these connections otherwise.

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Charles M. Cuerrier Cofounder and CEO Ottawa

Company notes. Spiderwort Inc. is transforming biotechnology with a platform of cellulose-based biomaterials that will serve as the scaffolds for the regenerative medicine of the future. Our revolutionary cellulose-based biomaterial, called CelluBridge, promotes the repair and regeneration of the spinal cord. CelluBridge is designed to encourage the regrowth of neurons by giving them the structure and healthy environment that promotes tissue regeneration. We are also developing a product called CelluJuve, a cellulose-based dermal filler that can assist with everything from injury recovery to cosmetic enhancement.

The angel journey. Our angels are incredibly generous in offering their help and sound advice. They have also helped create connections with other experts in the field, allowing me to broaden my network. Angels are passionate people and are eager to learn more about new emerging startups. I always enjoy my discussions with them as they understand the process we are going through and believe in giving back to support the startup ecosystem. I hope to be able to pay it forward later in my career.

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Keep

spiderwortbio.com

ANGEL INVESTORS ONTARIO

Watch

realizemed.com

Justin Sutherland Cofounder and CEO Ottawa

Company notes. Realize Medical is the creator of Elucis, a medical virtual reality platform that lets doctors interact with 3D models of their patients’ anatomy in a 3D immersive virtual reality environment. Starting from a patient’s medical image like a CT or MRI, doctors generate virtual 3D models of their anatomy with a wave of their hand in virtual reality. They can then interact with collaborating physicians in a shared immersive world — even from across the globe — as they plan and discuss an upcoming procedure. It’s the medical metaverse. The company originated from the experiments of two medical physicists at the Ottawa Hospital. While working as clinical physicists in radiation oncology, my cofounder Dan La Russa and I began experimenting with using virtual reality to explore new ways of interacting with medical imaging. We came up with the idea of virtual reality being a platform for turning medical images into precision 3D models of anatomy: like a sculptor creating with their hands. Our VR tools make it 10 times faster. It gives doctors superpowers. We built the early version of Elucis at the Ottawa Hospital with frequent physician input and then turned our efforts toward creating a spinout company called Realize Medical with our third cofounder, Morgan Jarvis.

The angel journey. Dealing with Maple Leaf Angels, Capital Angels and York Angel Investors has been very positive. The experience we had in answering their insightful questions during the pitching process helped us to hone our messaging and to articulate our value proposition to a general audience. The angels have always been happy to provide connections or ideas in response to our updates and I enjoy receiving emails offering to connect us with potential partners or customers. An angel from both Maple Leaf Angels and Capital Angels, Murray Neal and Brian Whitestone, joined our board — their guidance, input and support has been invaluable through the past year.

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On the Horizon AIO XV

Othalia Doe-Bruce, founder and CEO of InnovFin Consulting Inc., tells us about the company and the new edtech platform coming soon.

Q A

What is InnovFin and what does it do? InnovFin is a blockchain company providing education, strategy and implementation services to businesses and institutions. I started InnovFin out of a desire to help others learn about blockchain technology, which has revolutionized the way we interact with each other.

Q A

Tell us about your new edtech platform? Innov-Edu, short for innovation education, is our new learning platform on a mission to “augment global education, so no one is left behind by innovation.” Innov-Edu is the realization of my dream to provide practical, accessible, affordable and investable complex emerging tech education, at scale, to those most at risk of losing their jobs due to the rapid adoption of innovation. This platform is important since as innovation technologies such as blockchain, AI, IOT and AR/VR gain rapid recognition and adoption (techceleration), many skills today are at risk of becoming obsolete. The platform provides users with access to emerging technology courses focused on blockchain (including cryptocurrencies), AI, IOT and AR/VR. As a user registers and starts accessing courses and features of the platform, the user is rewarded with points. Some of these points are plain basic points that you are already familiar with, and which can be allocated toward making courses cheaper. Other points are blockchain-based practice tokens that you can use to start interacting with blockchain applications and tools such as the opening and use of a digital wallet, the process of buying and selling in a blockchain-enabled store or marketplace, the process of accessing an NFT (digital collectibles) and seeing how it is reflected in your digital wallet, the process of obtaining a certification on the blockchain and so forth. As the user goes through these processes while at the same time learning from our mini-courses, the user is able to link the concept of the complex blockchain tech to its simple and more practical applications. In the future, we will add similar practical interactions that will make it easier for the user to understand other complex emerging tech such as AI, IOT and AR/VR. innov-edu.ca

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ANGEL INVESTORS ONTARIO

bluwave-ai.com

thelucidproject.ca

Devashish Paul

Zach McMahon

Founder and CEO Ottawa

Cofounder and CEO Toronto

Company notes.

Renewable energy fluctuates — it only happens when it’s windy or sunny — so what we need is a mechanism to know when you’re going to get that fluctuating renewable energy and schedule it into your grid operations and then use the other types of energy more efficiently. Renewable energy is often underutilized, and fossil fuels are used as a fallback. Knowing when you’re getting the right amount of renewable energy and dispatching it into your system requires a lot of smarts and automation and that’s where we come in.

We’re trying to turn music into medicine. We want to leverage advances in AI technology and neuroscience and use music to improve mental health symptoms like anxiety by providing personalized and evidence-based music for mental health. We have this technology we’ve developed with over 100,000 people using it and we watch a human as they listen to music. We obtain data on them before they listen to music, after and in some cases during the experience. We take that data, and we look at the music in a focused way — we look at over 100 musical features to see what features are driving better outcomes for each person. We’re looking at achieving a desired mental state. We have some very specific ways of measuring that and tracking goals. We’re trying to use music to modulate emotion, activation and parasympathetic/sympathetic nervous system balance so that we can have a more accessible, safe alternative in mental and neurological health around lessening anxiety symptoms using music.

The angel journey. We connected with the executive director of Capital Angel Network (CAN), who, at the time, had us pitch at several meetings. One investor saw my video pitch and he wanted to talk to us and within two days, he was ready to invest in us. He brought in another angel investor who invested under the same CAN umbrella. We received about $450,000 from Capital and raised $5.2 million from angel investors from all over the world through our networks. A couple of our angel investors ended up taking board seats. They’ve been instrumental in scaling and organizing the company. They’ve introduced us to others in their networks and that’s helped us. The angels on our board are active in helping and we have others who aren’t on our board who’ve brought in other investors or who I rely on for input.

ANGEL INVESTORS ONTARIO

The angel journey. We started fundraising for our seed fund last fall and got connected to Maple Leaf Angels (MLA) early on. Several investors are considering coming into the round; I think we’ll get four or five. I find when I have angels invested and aligned from the beginning, they really believe in what we’re building — some have family members who suffer from mental health disorders, or they just really want to see this product come to market and be successful. I can go out to my angels and they’re all like mini consultants. I can say, “Hey, I’ve got an issue — does anyone have a contact who can help?” I instantly get one or two who will make an intro. Angels are part of the team and you can be honest with them. They are local people who want to back local talent and invest in the community. When all those interests are aligned, good things happen.

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Forward Thinking The future is brighter with more angels on our side. Angel Investors Ontario chair Mark Lawrence dives into what angels are looking toward in the near future.

Mark Lawrence Chair, Angel Investors Ontario (volunteer) Photo by Scott Lawrence

echnology companies in Canada have benefited over the past few years from tightened work permits for Canadian and other international entrepreneurs to move to the U.S. with their startups, or to move and work with the established juggernauts. No longer are U.S. venture capitalists and public entities buying Canadian startups and demanding they move their offices and their personnel to the States. Ontario has been recognized as a place to establish technology hubs, where office space is obtainable easily and compensation can be net half of the cost of the U.S. Ontario universities have proven themselves to be great training grounds for potential employees, and great breeding grounds for entrepreneurs. Both engineering and business schools have all finally started programs to teach entrepreneurship and promoted the now accepted practice to move right into a small startup versus a larger firm. I started my career in the financial-services sector as a research analyst (buy, hold or sell) for technology, biotech and telecom stocks before the days of a deregulated long-distance telecom market. My potential list of research targets generally only included one to two companies in a particular sector, which meant simultaneously researching a dozen similar firms in the U.S. for comparison. Thank goodness that situation has changed, and we have many solid companies in each seg-

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ment of technology, medtech, cleantech, telecom and advanced manufacturing. Ontario’s angel community works very differently from other social, residential, educational and industry associations. We put our money where our mouth is with the goal of improving our communities and province. For the past 10 years, there has been a marked increase in public apathy about becoming part of the solution, let alone just publicly complaining about the problem. Fewer and fewer individuals stand up and take a proactive approach to achieving positive changes. Ontario’s move to support its innovation economy would not have worked if our angel community had not stepped in to help with their mentorship and their dollars. My early angel investments were largely done as a “lone wolf,” as there were no established angel groups, incubators or accelerators back then. There weren’t people explaining the different intellectual property royalty models used by each of our Ontario universities. My money and my advice were my own, and there was little to no ability to bounce ideas off like-minded investors. I also learned early that I needed to expect to keep drip funding startups for two to three years, just to meet payroll, as the entrepreneurs tended not to be serial success stories with past successes funding current projects. I had to source the companies and train the entrepreneurs in all

ANGEL INVESTORS ONTARIO

aspects of growth, as there were no six-month bootcamps to send them to. The establishment of formal angel groups made a monumental improvement in the risk/reward profile of investments. Community diligence was better, funding runways were greater and networks to help growth were larger, all helping to create a more professional asset class of investing called angel investing. Now that we have not just one angel group in Ontario but a network of 16 in AIO, with new ideas feeding in from numerous innovation centres, we have the ability to exponentially increase the potential combinations of deal syndication, drawing on expertise from more than 1,600 members.

Photo by Anastasia Shuraeva

Looking ahead So, what do we need to do now? For starters, we need to create mechanisms to sustain our infrastructure of not-forprofit angel groups. We have been fortunate to have received federal and provincial funding to offset the costs of organizing monthly angel meetings, and the constant effort to attract new angel investors. Most global angel network organizations rely on some government assistance. However, we have reciprocated that government subsidy by having attracted more than $600,000,000 of direct high-risk investment dollars from our angel group members, and more with concurrent outside investments. We have therefore multiplied the small government spending by a factor of nearly 90 times every government dollar, by investments into startups. We are doing our part. What we need to do now is tell our stories more often — explain that we, the angels, are the only funding that entrepreneurs can tap, between exhausting their friends and families, to enable them to expand to where venture capitalist (VC) money is attracted. VC money is now well-provided by most levels of government. We need to enlighten more people that funds need to go down one level to help sustain the angel ecosystem. Education institutions with annual research budgets of $4-plus billion in Ontario have already seeded government support of incubators and accelerators that feed startups to the angel community to invest in. Angel investors tend to allocate a certain portion of their funds to invest in this riskier category of investments. They tend to like companies where they can understand the technology, understand the demographic and market trends that will drive consumption of the technology and understand the socio-economic trends that will pay for the technology. I believe that angels, like the rest of us, have been so socially isolated during the past two years of the pandemic that their circles of discussion amongst friends and colleagues have contracted by as much as 80 percent. Therefore, the longterm viability of established angel groups is critical to maintain that discussion amongst like-minded individuals, allowing them to curate ideas of what new technology trends will be fundable.

ANGEL INVESTORS ONTARIO

Here’s what’s top of mind for most investors right now.

AgeTech or LongevityTech. We are looking at ways to increase the longevity of individuals while increasing their quality of life. The 50-plus demographic holds more than 80 percent of the wealth in our country. LongevityTech will incorporate products and services from medtech, therapeutics, medical service delivery (including e-health that was finally expanded during COVID), living accommodations, activities and athletics and education. It will also include using AI to better track trends in community health. Better communications and monitoring systems need to be developed to reduce isolation issues, improve health advocacy and enable seniors to contribute their wealth of knowledge back to the community.

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AI and machine learning. Despite objections that robotics takes away jobs, we have found that in most cases, there is a shortage of workers to do highly repetitive and sometimes dangerous tasks. AI and machine learning are at the core of many new of many new potential medical diagnostic tools, to correlate existing manual diagnostics with educated machine diagnostics, looking past considerable detected background noise. We must assume that society will come and go into waves of the pandemic, and that remote diagnostics will be an integral component of our medical delivery, but AI promises potential improvements in its ability.

Edtech. These investments took off in the pandemic as students were sent home to listen to poor video recordings of teachers and professors. We need entrepreneurs to formulate asynchronous and synchronous forms of truly interactive learning, without which many of our children simply don’t absorb a recorded lecture. If our hockey games can be recorded and transmitted in 5G, letting you see the plays again from every angle, why can’t that interactive media exist for our students?

The market is now inundated with more immersive video conferencing and online conference platforms, selling for high prices and piggybacking on the success that ZOOM had during the pandemic. Individuals are now yearning for in-person events, but many of us are not ready for that congestion. Platforms that provide the ability to freely roam an online room and see participants’ live faces, and drop in, are the closest thing to networking that we have online. Advances that make networking more human are where we need more initiatives.

Immigrant Entrepreneur and Angel Support. AIO has plans to enhance the number of programs to assist members from both sides of this equation and help new entrepreneurs attract the attention of our established angel groups. With increased global disruptions and socio-migration, we recognize that newly arrived entrepreneurs and angels are playing an increasingly important part in our economy.

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ANGEL INVESTORS ONTARIO

Photos by ThisIsEngineering, Julia M Cameron, Anna Shvets, Henri Mathieu-Saint-Laurent

Video conferencing.

More co-investments from VCs. Several VCs have now reached down the food chain to coinvest in angel funding or offer angels the ability to co-invest in single VC deals, or an LP (limited partnership) of several VC deals. More VCs should join in this co-investment approach but use the current excuse that the multitude of single angel investors muddies the capitalization table for them. They need to realize that it is basically the angel investors who have managed to shepherd along and de-risk the entrepreneurs to get them to the VCs in the first place.

A better-tuned regulatory environment. Current regulatory provisions try to put organized angel groups into regulated entities with costly overheads and restrictions. Not-for-profit organized angel groups containing only accredited investors should be able to assemble and continue to make their own individual member investments without the group being considered in the furtherance of a trade, for the regulators. As per recommendations AIO made to the recent Ontario Market Modernization Taskforce, redefining the definition of an accredited investor is a good step in not only increasing the potential pool of angel investors for the groups, but it acknowledges that simply the measure of one’s wealth of assets or income is not a measure of one’s investing expertise or risk tolerance. Ontario’s regulators are examining the potential of allowing those who have certain professional qualifications, including accountants, lawyers or chartered financial analysts, to be considered accredited, and some other categories considered accredited with perhaps lower per-investment limits.

Photos by RODNAE Productions, Cytonn Photography

Angel investors will continue to be a critical catalyst for entrepreneurial growth to drive Ontario’s innovation economy. Just like Alberta has its energy sector that has driven its growth, we need full support for angels to keep providing not just risk dollars invested, but their valuable mentorship to Ontario’s burgeoning innovation economy. Our northern Ontario angels have successfully channelled angel investments earned from the resource sector into technology startups. We believe that the government will continue to support the infrastructure and regulatory environment

ANGEL INVESTORS ONTARIO

for our angel groups to attract new angel members, and provide the ecosystem of their existing incubators and accelerators to funnel new opportunities for angels to invest in, so that they can expand to the point where existing well-funded VC funds can assist. I salute all of our angel members, executive directors, volunteer boards of directors, volunteer mentors, our government partners and all the members in the ecosystem who come before

and after the “touch of an angel” that has enabled a marked improvement in the success of our entrepreneurs over the past 15 years of AIO’s existence. We believe that the next five years will show an exponential growth in the positive impact that that we will have made at our twentieth anniversary. We welcome potential new angels to join our groups and encourage new entrepreneurs to reach out to us for assistance. x

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It’s never been more important to give back. Folks who’ve mastered the art of paying it forward spoke to us about why it’s so important, why you should do it and how you can start giving today.

Illustration by Cienpies Design

It Takes a Village By

Lisa van de Geyn

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otarians are synonymous with volunteering. If you’re unfamiliar with the foundation, it’s a global network of 1.4 million folks and problem-solvers who are trying to create positive change in the world. Its mission is to “enable Rotarians to advance world understanding, goodwill and peace through the improvement of health, the support of education and the alleviation of poverty,” and Rotarians across the globe have been at it for more than a century. These are passionate people who use their influence, energy, knowledge and time to take action on a plethora of issues concerning all of us, from clean water to literacy. Rotarians are committed to bettering the world. Barry Mount, an angel investor in Whitby, Ont., is also committed to bettering the world — or, at least, his little piece of it in Durham Region. He’s been a Rotarian for 34 years. He’s so devoted to volunteering that he spends at least six to 10 hours each week on Rotary business and volunteering. “My wife, Kerry, and I have also had the opportunity to travel for humanitarian projects about 10 times and spend each day we’re away volunteering — those have been some of the best weeks we’ve ever had,” he says. Mount spends his time and energy helping others in a whole host of interesting and productive ways — he’s shopped for people who can’t do it themselves; served food to those who only get one proper meal a day; he’s helped build schools; assisted at community events; planted trees; picked up litter; supplied medical equipment for folks who can’t afford to buy them; supported hospitals, libraries, children’s therapy centres; and so much more. The list of his volunteer achievements is endless. “Each of these items and all volunteer activities gives you a feeling of pride and accomplishment. They provide you with purpose and a great sense of making a difference. You constantly learn from those with very little what is the essential things in life,” he says. “It’s important for every person in society to give back the best they can. Helping others or giving back comes from sharing what you have, whatever it is — financial, a skill, etc. But the most valuable asset you can give is your time.” Thankfully, Mount isn’t alone in his quest to give back. Research released in 2021 collected by Statistics Canada found that in 2018, nearly 12.7 million people (41 percent of Canadians aged 15 and older) volunteered for charities,

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non-profits and community organizations. These caring folks devoted about 1.7 billion hours to formal volunteer activities — work equivalent to more than 863,000 full-time year-round jobs. What’s more, almost 22.7 million people (or 74 percent of Canadians 15 and older) volunteered in informal ways the same year. These helpers gave almost 3.4 billion hours of their time, working hours that represent 1.8 million full-time year-round jobs. So why do so many people volunteer anyway? There are as many reasons as there are volunteers. “It makes you feel good,” is a common answer, but there’s so much more. Physical health benefits are just one example. Fundraising by joining walks and runs, tree-planting or coaching a kids’ softball team all provide exercise and helps us reverse our sedentary lifestyles. It also does a world of good for our mental health. Research published in the Journal of Happiness Studies found that compared with people who didn’t volunteer, those who did were more satisfied with their lives and rated their health as better. Those who volunteered at least once a month reported better mental health than those who volunteered less frequently or those who never gave back at all. And you might not even have considered this, but volunteering is good for your career — through helping others, you network, sharpen your skills and develop new ones, boost your performance, associate your brand with positive contributions and build your resumé. For Kevin Oulds and Erin Bury, volunteering and giving back is a core value in their personal lives and their company. As founders of Willful, the platform that lets people create a will in an easy, convenient and affordable way, Oulds and Bury say one of the first things they did when they started the company was to pledge one percent of its equity to the Upside Foundation of Canada, which allows early-stage founders to build social responsibility into their business by giving equity to the charity of their choice. “The best way to do it is from the start. When you lay the foundation of giving back, it’s much easier to continue it. Most initiatives we do don’t even cost us a dime in terms of cash,” says Oulds. “Giving back doesn’t have to mean big cash donations to charity — it can be donating a dollar from every sale, it can be offering volunteer days and allowing employees to give back. It can be giving away your product or service. We’re a tech soft-

ANGEL INVESTORS ONTARIO

MEMBERSHIP

ware platform and giving away free wills to frontline healthcare workers during COVID was a very nominal cost but had a big impact.” Bury says she and Oulds also “baked giving into the DNA of Willful by pledging one percent equity to the Hospital for Sick Children if they have an exit. While she’s the cochair of Tech4SickKids (which Oulds also works with) and sits on the Save the Children Canada board, Oulds is on the University Health Network Impact Collective board. “Creating a culture of giving back helps me sleep at night, but it’s also pretty integral to have a give-back strategy or a larger purpose if you’re trying to attract and retain talent,” she says. Charity is also built into Willful’s platform — users can leave a cash gift to charity or a percentage of their estate. Plus, they give every employee one free volunteer day each year. “We bake it into our lives. You feel good about yourself and your legacy,” Bury adds. Bob Spiers, an angel investor in Pickering, Ont., found a new passion during the pandemic. He attended a board meeting of the Humane Society of Durham Region (HSDR) last year and says he was highly impressed with the people he met and the work they do for such an important cause. He was asked to join, and he quickly accepted. “I am now able to share my time with others and find opportunities in my community that are meaningful to me and provide intellectual stimulation and social engagement. Assisting HSDR to support animals and our community has been a personally satisfying experience; it’s a rewarding giveand-take exchange.” Ajax, Ont.-based Frank Auddino sits alongside Spiers on the HSDR board, but he’s also an active volunteer in Durham Region, spending his time working with Rotary, the Durham Outlook for the Needy core program at St. Vincent’s Pallotti’s Kitchen and he’s a board member of Ignite Durham Learning Foundation. Not only does he do charitable work with those in the community, he’s also an angel investor who gives back to the innovation ecosystem. He’s the cofounder and vice-president of Startup Durham, the Ontario Tech University angel-inresidence and the cofounder of the National Angel Capital Organization’s Investor Readiness Program, among so many others. For him, volunteering is simple and selfless, and speaks to the reasons why so many others are willing to help their communities: “It makes my heart smile,” he says, adding he’s been volunteering since high school. “We grew up without having many resources and as immigrants, my dad worked in cement construction and my mom picked vegetables at a farm. This country has been so very good to me and my family in so many ways. It’s now my turn to show my gratitude and give back. I can’t imagine ever stopping.” x

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Pay it Forward Jack Verdezola and Aayush Bajaj are members of Oshawa-based Ontario Tech University’s Brilliant Catalyst program and founders of Earn It All, a platform that aims to get students and individuals more involved in their communities. Here’s what they have to say about giving back.

Q What is Earn It All? A

The company began in February 2021 to create a marketplace where organizations in need of volunteers can connect with individuals who need volunteering experience. On our platform, individuals can easily find their preferred volunteering opportunities by filtering through our extensive database. Opportunities can vary based on the type of organization, type of work, hourly commitment, etc. In addition, we want to make it easier for students to track and submit their community hours digitally.

can folks gain Q What from volunteering in their communities?

The people we meet, the skills we learn and the satisfaction of knowing that we helped others stay with us for the rest of our lives. Being part of a community is not only being with a group of people but also contributing to help others. This is the lesson we want everyone to learn, and it’s one of the main reasons why Earn It All was created.

want to give back! Q IWhere and how do I start

when it comes to volunteering in the community?

Start with something small. Gather your friends and help out people in your community by mowing lawns or shovelling snow. You don’t have to be a part of an organization to make a difference in the community. If you are not sure what to do, spend time discovering what matters to you the most and what skills and experiences you want to learn. Then you can search through different opportunities that align with your wants and needs. An easier way to find opportunities is going through the Earn It All platform and filter through the different requirements that best fit your needs. You can do this at earnitall.ca.

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Take it from us: There’s nothing quite like having a good mentor. (And for mentors, great mentees make it all worthwhile.) There are do’s and don’ts to follow (we outline 40) when it comes to fostering a successful mentor-mentee relationship. Read on to learn how to navigate yours productively. By

ngel investor Jacky Chen has a long history in enterprise software and cloud computing. When he listens to companies pitch at angel group meetings (he belongs to Golden Triangle Angel Network in Waterloo, Ont.), he perks up when he knows there’s an opportunity for him to get involved. “I always ask myself once I believe the startup has great potential if there’s a way I can help the founder to be more successful. If it’s in my domain and I can leverage my business expertise and networks, I get even more excited,” he says. He recalls one such company: It was an enterprise software startup and Chen realized it was in the enterprise software and ICT industry where he had worked as an executive of global leader providers for more than a decade. “I spoke to the founder immediately and we had a common language. We were like old friends. We shared our views and he asked me to sit on his board. I helped him with market positioning and other things. The company was acquired during Series A, so a group of angel

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investors, including me, made more than 10 times our return in less than two years. But I also played a key role, and that mentorship made a difference.” Oprah had Maya Angelou to guide her; Plato had Socrates (and Aristotle had Plato); Steve Jobs mentored Mark Zuckerberg; Christian Dior mentored Yves Saint-Laurent; and Bill Gates benefited from Warren Buffet’s knowledge. Mentorship does make a huge difference, of course, to protégés who are looking for knowledge, advice and resources from admired folks who’ve been there. And mentors are in a unique position to offer mentees assistance when it comes to goal-setting and problem-solving, developing contacts, strategizing career moves and acting as a confidant. Before you engage in a mentor-mentee relationship, it’s wise to ensure you set yourself up for success. Here’s what you need to know about the do’s and don’ts of participating as both a mentor and a protégé.

ANGEL INVESTORS ONTARIO

Photo by Angkana

Lisa van de Geyn

COMMUNITY

Mentor Do’s

Mentor Don’ts

DO listen. Act as a sounding board for ideas.

DON’T offer mentorship in an area outside of your expertise.

DO ensure you’re accessible and show interest in protégés. DO give mentees enough time. Meet at times that are convenient for both parties and maximize your time together.

DON’T take on more protégés than you can realistically handle. DON’T micromanage.

DO set the bar high.

DON’T expect your mentees to be your clones — to each their own.

DO establish a rhythm for communication. How often do you expect to hear from your protégés?

DON’T take credit for your mentees work or usurp their ideas.

DO be a role model. Practise what you preach.

DON’T slow their progress by being slow to reply.

DO set expectations and maintain boundaries.

DON’T discourage mentees from seeking other subject-matter experts or mentors.

DO expect your protégés to make the best decisions for themselves. DO establish clear rules to improve efficiency. DO give clear guidelines when assigning tasks.

DON’T treat protégés as free labour. DON’T accept mentees without ensuring you can make the commitment. DON’T be too sympathetic. It’s your job to challenge your mentees.

Mentee Do’s

Mentee Don’ts

DO know what you want from your relationship with your mentor and communicate those goals.

DON’T ask for advice on everything — be selective.

DO be proactive with your mentor and take initiative. DO keep appointments you’ve scheduled with your mentor and respect his or her time. DO remember to stay positive, be ambitious and enthusiastic. Be coachable. DO ask questions and learn as much as possible. DO show up prepared prior to meetings, calls, networking events, etc. DO be open to constructive feedback. DO practise self-reflection.

DON’T expect decisions to be made for you. Instead, look to your mentor to act as a guide. DON’T complain or speak poorly of colleagues or managers. Remain professional. DON’T cancel scheduled meetings (virtual or face-to-face) without ample notice. DON’T be a passive listener or learner. DON’T break your mentor’s trust. DON’T become overly dependent on your mentor. DON’T stay in your comfort zone. Don’t be afraid to branch out.

DO earn your mentor’s trust.

DON’T expect your mentor to take the lead. Take the reins.

DO show gratitude and give your mentor feedback.

DON’T stay in the mentor-mentee relationship when it’s no longer helping you.

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What does it take to ultimately accomplish your goals and achieve victory? More than hard work and a little bit of luck on your side, it turns out. Read on to find out what you need to realize your dreams and reach your full potential.

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Tamar Satov

ANGEL INVESTORS ONTARIO

Illustration by Hurca!

The Science T of Success

here’s an anecdote about Bill Gates’s early years. He was in eighth grade in 1968, the year when his Seattle private school provided students with access to a General Electric computer, an educational perk that was still quite novel at the time. It was on that device that the eventual Microsoft founder wrote his very first program — a version of tic-tac-toe. And while the benefit of having this computer — any computer — available to Gates at the impressionable age of 13 surely transformed the trajectory of his life, there’s obviously more than these “special circumstances” that propelled the visionary we all know to remarkable heights of success.

MOTIVATION

“What about those students who were in Gates’s high school, who had access to the personal computer, and who did not achieve greatness in the computer business?” asks Robert Vallerand, professor of psychology at the Université du Québec à Montréal (UQAM), in his 2015 book The Psychology of Passion. “Clearly, something important seems to be missing from the contribution of special circumstances to high-level performance.” That something, as Vallerand — who holds a Canada Research Chair in Motivational Processes and Optimal Functioning and is director of the Research Laboratory on Social Behaviour at UQAM — has shown in his research, is passion. “It was a passion for com-

ANGEL INVESTORS ONTARIO

puters that led Gates to sneak out from home at night to work on the high school computer, and that has him still involved in computers some 40 years later,” he notes. “Such a passion may not have been present in other students at his high school who, although they had access to the personal computer, did not feel the urge to work on it, and did not achieve excellence in this field.” Passion has long been considered an important ingredient for success but, up until about 20 years ago, not much scientific research had been conducted on passion with a focus on activities. In the late 1990s, Vallerand and his research team at UQAM began to delve into the subject, examining the motivational aspect of passion when undertak-

ing an activity, and looking at passion’s effect on performance. Others have expanded on the science of passion, including how it plays into entrepreneurial success. A study by the University of Maryland’s J. Robert Baum and Edwin A. Locke found that entrepreneurs’ passion and tenacity positively affect venture growth through a variety of factors, including improved “communicated vision, goals and self-efficacy.” A 2019 Australian review of international research on entrepreneurial passion shows “strong evidence that passion for inventing and developing fosters venture survival and growth,” particularly by indirectly enhancing entrepreneurs’ grit — or perseverance and passion for long-term goals.

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AIO Links Connecting Angel Investors Through an Afternoon of Golf at The Country Club in Vaughan

Sept. 29/2022

links.angelinvestorsontario.ca

MOTIVATION

According to Rebecca Franklin, an associate professor of entrepreneurship in the faculty of business administration at Memorial University of Newfoundland, grit, especially the perseverance of effort, is one of many factors that scientific research has shown can contribute to success. “In terms of the ‘recipe for success,’ some of the things I would include are psychological capital (a combination of hope, optimism, resilience, and self-efficacy), grit and self-regulation,” she says. “People need to be able to self-regulate enough to pursue the right goals, and delay gratification if necessary.” Another potential ingredient for success is, surprisingly, happiness. “There was a really interesting study that was a meta-analysis of all the articles about success and happiness and subjective well-being,” says Franklin. “The results showed that not only does being successful make you happier, but the happier you are the more successful you’ll be.” Yet another factor, which she is currently studying with the help of a Social Sciences and Humanities Research Council (SSHRC) federal research funding grant, is differentiation of self — or the ability to balance calm, logical reasoning with high emotions so that one can think and act logically in the midst of high stress, combined with the ability to balance a solid sense of self and relational autonomy while maintaining close interpersonal relationships with others. Differentiation of self is significant for entrepreneurs as it helps them respond to stress more effectively and is crucial to relationship building. “It’s especially important to be able to build a good team, communicate effectively, and work together — not break up the band because you couldn’t come to agreements,” she says. Although differentiation of self is an innate ability that develops naturally through childhood, it can be honed as an adult. “If you’ve developed it, you’re ahead of the game, but it is something you can work and improve upon,” she says. “Consultants who are specially trained in Bowen Systems theory can train people to become more differentiated and to gain increased ability to work with others.” Finally, while science shows that all these factors may contribute to a founder’s success, you’re not doomed to fail without them. “I would never say you have to have all these things to succeed,” says Franklin. “They give you an edge and really help increase the chances of success.”

ANGEL INVESTORS ONTARIO

Selected research findings on the science of success Happiness The paper: The Benefits of Frequent Positive Affect: Does Happiness Lead to Success? Sonja Lyubomirsky, Laura King, Ed Diener; Psychological Bulletin, Vol. 131, No. 6, 2005. The findings: A meta-analysis of relevant studies and evidence was conducted to determine if the happiness-success link runs both ways: meaning success not only makes people happy, but happiness also leads to success. In a 1994 study of working adults, for example, employees who were happier later received greater pay increases than those who were less happy; and a study of 62 CEOs and their top managers published in 2000 showed that happier teams were less likely to experience conflict and more likely to cooperate. The conclusion: “Although many researchers presuppose that happiness follows from successes and accomplishments in life, our review provides strong, albeit not conclusive, evidence that happiness may, in many cases, lead to successful outcomes, rather than merely following from them.”

Grit/Passion The paper: Why grit requires perseverance and passion to positively predict performance, Jon M. Jachimowicz, Andreas Wihler, Erica R. Bailey, Adam D. Galinsky; PNAS, Oct. 2018. The findings: A survey of 422 employees that measured their grit and passion against their supervisor-rated job performance found the combination of perseverance and passion predicted higher performance. In another study of 248 students, perseverance and passion were linked to higher grade-point averages, in part through increased immersion. The conclusion: “Perseverance without passion attainment is mere drudgery, but perseverance with passion attainment propels individuals forward.”

Psychological capital The paper: Why Entrepreneurs Often Experience Low, Not High, Levels of Stress: The Joint Effects of Selection and Psychological Capital, Robert A. Baron, Rebecca J. Franklin, Keith M. Hmieleski; Journal of Management Vol. 42 No. 3, March 2016. The findings: In a survey, 160 U.S. business founders reported lower levels of stress compared to the national average. The entrepreneurs’ relatively low levels of stress could be attributed, at least in part, to high levels of psychological capital (a combination of self-efficacy, optimism, hope and resilience), and this effect was stronger for older compared to younger founders. The conclusion: “Psychological capital appears to be a valuable personal asset for entrepreneurs. Thus, steps to help them develop or build psychological capital may also prove valuable.”

Self-regulation The paper: Self-efficacy and entrepreneurs’ adoption of unattainable goals: The restraining effects of self-control, Robert A. Baron, Brandon A. Mueller, Marcus T. Wolfe; Journal of Business Venturing 31, 2016. The findings: A study of 167 U.S. entrepreneurs measured their self-efficacy (their belief in their ability to successfully complete various entrepreneurial tasks) and their self-control against company performance. The results indicated that entrepreneurs with high levels of self-control were able to refrain from the tendency — promoted by their high levels of self-efficacy — to choose goals that are, in fact, beyond their reach. Avoiding such tendencies and choosing, instead, goals that can be attained, may be positively related to firm performance. The conclusion: “Self-control may help entrepreneurs to protect against (the) prevailing tendency in setting difficult, but achievable goals.”

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Get Involved Are you a founder who’s looking for mentorship, guidance or assistance before reaching out to angel investors? Look no further. We put together this comprehensive list you can use to help you get going. Good luck on your journey!

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ACTION ITEM

Regional Innovation Centres (RICs)

HalTech Innovation Centre

TechAlliance of Southwestern Ontario

Burlington

London

NORCAT Innovation

ventureLAB

Northwestern Ontario Innovation Centre

Sudbury

Markham

Thunder Bay

Innovation Guelph

Altitude Accelerator

Guelph

Mississauga

MaRS Discovery District

Innovation Factory

Spark Centre

Hamilton

Oshawa

Launch Lab

Innovation Ottawa

Kingston

Ottawa

Communitech

Sault Ste. Marie Innovation Centre

Kitchener

Innovate Niagara St. Catharines

Toronto

WETech Alliance Windsor

Research Innovation Commercialization Centre Mississauga

Sault Ste. Marie

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Accelerators, incubators, entrepreneur centres The Accelerator Centre

L-Spark

Toronto Fashion Incubator

Waterloo

Kanata

Toronto

York Entrepreneurship Development Institute

Innovation Cluster

jLabs

Peterborough

Toronto

RH Accelerator Inc.

Community Innovation Lab

Toronto

Treefrog Accelerator Newmarket

Toronto Business Development Centre Toronto

Next Canada Toronto

Techstars Toronto Toronto

Mississauga Business Enterprise Centre Mississauga

Millworks Centre for Entrepreneurship Sault Ste. Marie

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London

Nourish Guelph

Bioenterprise Guelph

Canada’s Music Incubator Toronto

Canadian Film Centre Media Lab

Durham

1855 Whitby Whitby

Innovation Village Ajax

One Eleven Toronto

Synergy Labs

Toronto

Oshawa

Highline Beta

Creative Destruction Lab

Toronto

SheEO Toronto

ANGEL INVESTORS ONTARIO

ACTION ITEM

Industry partners Startup Canada Toronto

Ontario Centre of Innovation Toronto

National Angel Capital Organization Toronto

Futurpreneur Canada Toronto

Federal Economic Development Agency for Southern Ontario Toronto

ANGEL INVESTORS ONTARIO

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Your industry is our specialty

As a business leader in today’s hyper-competitive technology environment, you need advisors who understand your industry, with all its unique opportunities and risks. At MNP, our top-tier professionals provide you with innovative solutions at every stage of your business lifecycle, from financing your startup to preparing your exit strategy. Niko Anastassakis, CPA, CA | 905.579.4926 | niko.anastassakis@mnp.ca MNP.ca

ACTION ITEM

Academia University of Toronto

McMaster University

University of Windsor

Banting & Best Centre for Innovation and Entrepreneurship; Creative Destruction Lab (CDL); Dept. of Computer Science Innovation Lab; The Hatchery; UTEST; StartUTIAS; Health 2 Innovation; iCube; The Hub

The Forge; The Clinic

EPICentre

Brock University

University of Guelph

KickStart; Brock Linc

John F. Wood Centre for Business and Student Enterprise

Queen’s University

Durham College

Queen’s Innovation Connector; Dunin-Deshpande Queen’s Innovation Centre

360 Insights Entrepreneur Centre

Toronto Metropolitan University (formerly Ryerson University) DMZ Ventures; Fashion Zone; Transmedia Zone; Innovation Boost Zone; Legal Innovation Zone; Centre for Urban Energy; Design and Fabrication Zone; Sandbox; SocialVentures Zone; Biomedical Zone; Science Discovery Zone; Catalyst Cyber Accelerator

University of Ottawa Capital Entrepreneurs; StartUp Garage

York University

Carleton University

YSpace Technology Accelerator; ELLA; YEDI

Lead to Win

OCAD University

Western University

Imagination Catalyst

Propel

Ontario Tech University

University of Waterloo

OntarioTech FastStart; Brilliant Catalyst

Velocity; St. Paul’s Greenhouse; Conrad Business Entrepreneurship; Accelerator Centre

Trent University FastStart

ANGEL INVESTORS ONTARIO

Humber College Centre for Entrepreneurship

Seneca College Helix

George Brown College startGBC

Wilfrid Laurier University Launch Pad

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THE LAST WORD

Parting Thoughts These investors were the first to pipe up when it came to relaying good advice to incoming angels. Read their words, then act and join a group near you.

“Come in with the intention of investing; there is an expectation that you are there to find investments and not just rub elbows with accredited investors. That said, you should take your time and attend as many meetings as possible, sit back and learn from those who have been around and get comfortable before diving into an investment.” –Eddie Gobran, Leva Capital

“Understand your time frame. We are sometimes led to believe exits are in the two- to four-year time frame, but that’s not the case — very few companies exit that quickly. Have companies in your portfolio that you’re confident will be short exits and you can balance those with the longer exits.” –Jeff Champagne

“Tap into your network. I’ve tapped into mine to better understand an industry or opportunity, whether it’s understanding an industry altogether or a client segment. Sometimes you don’t know how expansive your network is until you need to start looking.” – Carol Lee

“Don’t invest unless you do your own proper due diligence, or you can rely on good information from your own or another angel investment group. I didn’t do this very well in the beginning and it’s telling that of my first five investments, three went bankrupt and one paid back $0.12 on $1 invested.” –John Yardley

“Be aware of your age. I started angel investing when I was in my mid-50s. If you invest in a company today, it could be really successful, but that might not be until 10 years from now. Are you prepared to wait that long?” –Jim Henry

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The Fish That Got Away Don’t forget: Angels are humans, and humans aren’t perfect. Sometimes they get it wrong. Two brave angels shared their stories of the ones that they missed. “This company was part of TechStars and I went to watch demo day. It really resonated with me and checked off everything on my list — amazing founders, I understood the value proposition and they were doing something that was really needed. The companyis a video-counselling platform for mental health support. I know so many people who struggle with mental health and the fact that this company provided a service in an accessible and affordable format was incredible. I tried to reach out and get in on the deal but because it wasn’t through our framework and I was too late, I didn’t get a chance to invest before closing. I wish I had been more persistent. That company? Inkblot Therapy.” –Katie Salem “There have been lots of missed opportunities, mostly in my first year as an investor. If I don’t fully understand the company, passing is the easiest decision to make. In this case, the company had a device that you put your phone in, and it sanitizes it quickly and effectively. It was created for hospitals, but I thought, how is this entrepreneur going to scale through the hospital buying system? I over-analyzed versus looking at the bigger opportunity and founder, and said no. Of course, COVID-19 hit, and now CleanSlate UV is a leading biosafety company creating the next generation of intelligent sanitization solutions. Since then, I have been careful not to let the big fish get away, but I am certain many have and will continue to.” –Frank Auddino

ANGEL INVESTORS ONTARIO