News Release Article from  Federal Economic Development Agency for Southern Ontario

Archived - FedDev Ontario Invests in Angel Organizations across Southern Ontario

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November 20, 2014Kitchener, OntarioFederal Economic Development Agency for Southern Ontario (FedDev Ontario)

Angel investors and businesses in southern Ontario will benefit from an investment of up to $3.35 million announced today by FedDev Ontario Minister of State Gary Goodyear on the occasion of the first-ever Global Business Angels Day.

Angel investors play a significant role in providing early-stage businesses with access to capital and coaching. This helps businesses to grow, create jobs and bring innovations to domestic and international markets.

Funding for the National Angel Capital Organization and the Network of Angel Organizations – Ontario will help to improve resources and share best practices for angel investing. In addition, funding for eight regional angel networks will help to improve services and tools for existing members and attract new ones. All of these activities will increase the pool of investment and mentoring support available for companies in southern Ontario.

Today's announcement builds on recent announcements of up to $1.725 million for four other angel networks in southern Ontario. This brings the total announced funding for angel associations and networks, through the second intake of FedDev Ontario's Investing in Business Innovation initiative, to up to $5.075 million.

Global Business Angels Day is part of Global Entrepreneurship Week, which is being recognized in 150 countries with roughly seven million people participating in events, activities and competitions that are building one global economic ecosystem.

Quick Facts

  • In total, the 12 angel networks receiving funding through the second intake of the Investing in Business Innovation initiative expect to attract more than 575 new members and invest up to $116.7 million in up to 366 companies. To date, these networks have invested more than $70 million in more than 180 companies.
  • Through the first intake of the Investing in Business Innovation initiative launched in October 2010, FedDev Ontario invested more than $3 million in 13 angel networks and associations. These networks have reported they were able to grow the number of registered investors from 283 to more than 1,000.
  • The National Angel Capital Organization 2013 Report on Angel Investing Activity in Canada shows that $89 million was invested in 199 deals by 29 Canadian Angel groups last year alone.
  • The Network of Angel Organizations – Ontario reports that between April 1, 2011, and March 31, 2014, more than $100 million in angel and co-investment into early-stage companies has been organized, and at least 1,600 jobs have been created or retained.

Quotes

"Through strategic investments in building the angel investor community, our Government is giving early-stage businesses the tools they need to create jobs, and bring growth and long-term prosperity to the region. FedDev Ontario has programming to support new entrepreneurs with great ideas who want to start a company; programs for existing businesses that want to expand, train their staff or enter a global supply chain; and initiatives for businesses looking to partner with post-secondary institutions. We are proud to be a key partner with angel investors in helping innovative businesses to grow."

– Gary Goodyear, Minister of State for FedDev Ontario

"Investing in Business Innovation has been a game-changer in the world of early-stage financing. It has incented angel investors to become more engaged with innovative start-ups and has allowed our organizations to build critical mass and momentum."

– Michelle Scarborough, Board Chair, National Angel Capital Organization

"In addition to helping build up Ontario's network of angel groups who are dedicated to investing their 'smart capital' into early-stage companies, the team at FedDev Ontario has also made a considerable effort to truly understand what entrepreneurs need to succeed. It's a privilege to work in concert with FedDev Ontario and to help enable new job creation."

– Blake Witkin, Chairperson, Network of Angel Organizations – Ontario

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Contacts

Erica Furtado
Director of Communications
Office of the Honourable Gary Goodyear
613-943-7599

Media Relations
FedDev Ontario
416-954-6652
FedDevMedia@FedDevOntario.gc.ca

Toll Free: 1-866-593-5505
Website: www.FedDevOntario.gc.ca
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