Angel Funding – The Bridge
Angel funding is often cited as the bridge for start-ups during the intermediate phase of capital requirements (i.e. the post-seed funding gap). During the early stages, investors of limited means can carry the funding requirement but for the next phase, the capital requirements are often not yet significant enough to be of interest to venture capitalists.

TSGI is regularly represented at the Banff Venture Forum, Alberta Venture, and the Life Sciences Conference (Edmonton AB).

Who Provides Angel Capital
You’ve seen the concept in action on Dragon’s Den, the TV show where business ideas are pitched to a panel of wealthy individuals ready to provide angel capital. An angel is typically an individual that invests a significant sum of money in return for a share of the company, often with a medium-term plan to realize his/her investment such as a planned IPO or recapitalization of the company. A formal shareholders' agreement is likely to be required, and most will require frequent updates and significant input on salaries and major decisions. Because angel capital is likely to have a large stake in the company’s success, (s)he may take an interest in assisting with management or otherwise promoting the growth of the company. Angel funding is active and direct, rather than conducted through a managed fund on behalf of passive investors as is more typical with venture capital. The angel market is in constant flux, and is impacted by competing investment arenas such as venture capital and publicly-traded stocks.

As noted in our Private Equity page, angel funding is made with the knowledge that the angel’s funds are at risk for total loss for any given investment in a company. Therefore, the agreed plan for the angel to realize on his/her investment may carry a high implicit cost, but is considered necessary by the angel.

Find Angel Investing Funding Sources
To find angel investing funding sources in Canada, associations of angels that group together to share knowledge and network are a good start. For example, Alberta Deal Generator is a network that represents 140 accredited investors and over $400 million in available capital. Through a formalized process, entrepreneurs are screened for high-growth potential and suitability for matching with the suite of investors on the supply side. Several forums are held annually where presentations can be made and questions & answers can be made. Other associations have similar processes.