Blog

• Northern Ontario Enterprise Gateway tells their story

  
  

  Our colleagues at Northern Ontario Enterprise Gateway recently issued a news release to regional media describing how they have achieved success in linking angel investors and northern entrepreneurs - companies they have worked with, agencies that have supported their work (including NAO-Ontario), and more.

  We’re very pleased to be working with NOEG, and look forward to many more such narratives as Northern Ontario’s innovation economy develops further! <!– /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:”"; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”; mso-fareast-font-family:”Times New Roman”; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –>
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  August 25th, 2008 · No comments
• November Co-investment Summit Announced!

  
  

  From 8 am to 5 p.m. on Wednesday, November 19th, 2008, the National Angel Organization is pleased to host the 2008 Co-investment Summit in Toronto, Canada, at the University of Toronto Faculty Club.

  Members of the Angel community from every country and region are invited to join us for a complimentary full-day session that will present Ontario’s, and Canada’s, fastest-growing, high-potential, Angel-invested companies. All presenting companies are seeking follow-on financing and have received at least $200,000 in Angel investment already.

  Individual Angels, Angel groups, and Angel-invested companies referred by Angels can participate.

  Companies may submit their opportunity online, indicating in their submission their referring Angel investor or group.

  Angels may register online, or contact the National Angel Organization (416-581-0009, pconnor@angelinvestor.ca)

  Finalist companies will be determined by NAO’s Co-investment Task Force.

  Breakfast, lunch and refreshments will be served.

  For further details please visit coinsummit.eventbrite.com, or view our invitation online.

  We look forward to seeing you there!

  

  August 25th, 2008 · No comments
• The 2008 National Angel Summit gets a plug!

  
  

  Frank Peters, the podcasting host of The Frank Peters Show, today interviewed National Angel Organization director Cathy Favre, who is Executive Director of the Newfoundland and Labrador Angel Network.  The topic was Fast Pitches, and a plug was included for our National Angel Summit, which they will both be participating in.  Thank you, Frank and Cathy!

  

  August 19th, 2008 · No comments
• ISCM MONEY CHASE 2008

  
  

  ISCM SUMMER CAMP FOR ENTREPRENEURS AIMS TO PUT THE “FUN” INTO “FUNDRAISING”

  The word “fun” isn’t usually associated with a company’s efforts to find cash to grow a business, but the Innovation Synergy Centre in Markham (ISCM) is out to change that experience with the unique ISCM Summer Training Camp for Entrepreneurs.

  The camp fills a much-needed gap by helping companies to:

  • Identify and find the best investors and partners for their business;
  • Present effectively to potential investors;
  • Prepare for investor meetings;
  • Create realistic and actionable strategies for fast revenue and company growth.

  This service is being offered free of charge to qualified companies up until mid-September. Register now to take full advantage of this opportunity.

  The summer camp is a lead up to the ISCM Money Chase 2008: Investment Forum, which takes place October 23rd, 2008. The Investment Forum is a unique event in which 24 young businesses – selected from a pool of applicants – looking for growth funds will have the opportunity to present their case to a roomful of investors.

  Details are available at www.iscm.ca/moneychase, or to start the application process, “Register as a Client” at www.iscm.ca. Indicate that you would like to participate in the Investment Forum or give us a call at (905) 248-2721.

  Any other questions may be forwarded to the Investment Network.

  The Money Chase Series is presented by the Investment Network of ISCM, a leader in helping small- and medium-sized companies deal with their growth opportunities.

  

  August 19th, 2008 · No comments
• NAO Director named one of the Forty Under 40

  
  

  

  

  Michelle Scarborough

  Michelle Scarborough, vice-president for investment and commercialization at the Ottawa Centre for Research and Innovation, and a director of the National Angel Organization, has just been named one of the Forty Under 40 for 2008 by the Ottawa Business Journal.

  The Forty Under 40, according to the Journal, represent the region’s most dynamic, successful and community-minded businesspeople.  We’re proud to count her as one of the National Angel Organization’s directors and strong supporters!

  

  August 19th, 2008 · No comments
• Nominate an innovator, entrepreneur or company in Ontario for the Premier’s Catalyst Awards

  
  

  Ontario Premier’s Catalyst Awards

  Recognizing Excellence and Leadership in Innovation

  Do you know of a leading-edge innovator, entrepreneur or company in Ontario that deserves recognition? Is there a person or company whose vision and goals symbolize the province’s growing culture of innovation and entrepreneurship?

  If you know of such a person, group or company, the Ministry of Research and Innovation wants you to nominate them for the Premier’s Catalyst Awards.

  Recognizing excellence and leadership, the Premier’s Catalyst Awards celebrate the leading-edge industries, ideas and people that will shape Ontario’s future and create the next generation of exciting new jobs and industry sectors.

  The winner of each of the five Catalyst Awards will receive $200,000 to support the development of a commercially successful new, or significantly improved, product or service based on a breakthrough technology.

  Nominations close October 9th, 2008.
  

  For more information about the Premier’s Catalyst Awards, click here.

  
  

  

  August 15th, 2008 · No comments
• New fund available for getting to market faster!

  
  

  The Precarn Industrial T-GAP
  Precarn has just released a call for applications to its reinvigorated T-GAP Program. Like its predecessor, the program focuses on the gap between technology innovation and commercialization. The program is designed for very small and start-up companies. This is an open competition with no specific deadline date. Applications are accepted on a first-come first-served basis.

  Precarn is seeking immediate applications to this program. $500,000 has been allocated for projects costing up to a maximum $60,000 in Precarn contribution. Precarn funding will be up to 75% of the total eligible project costs. The average Precarn contribution is expected to be about $40,000. Once a project is approved, 75% of the Precarn funds will be made available upon contract signing and the remaining 25% will be paid upon project completion and delivery of a final report.

  Full details can be found on Precarn’s web site at:
  http://www.precarn.ca/ProgramsFunding/COREFundingPrograms/TGAP/index.html

  

  July 31st, 2008 · No comments
• First Angel Network’s Wild Hog Ride

  
  

  Though Angel investors are often serial entrepreneurs, mentors, and shrewd business people, they also can let their hair down and have a good time.  The Wild Hog Ride of the First Angel Network on July 18th was proof positive of this as these photos illustrate!

  
  Members came from as far away as Fredericton, the Annapolis Valley and Musquodoboit to meet in Amherst, Nova Scotia, and then travel the back roads to Parrsboro, lunching at the Glooscap restaurant before completing their journey along the Minas Basin shoreline through Five Islands and Bass River; ending up in Masstown.  It was a great ride and a beautiful day, and these leather-clad Hog Riders looked way cool -after all, nobody ever rode a bike to disco music!

  

  July 31st, 2008 · No comments
• Revised submission to the House of Commons Industry Committee

  
  

  As previously mentioned in this blog, our Chairman, Andrew Wilkes, and our President, Dan Mothersill, were called to testify before the House of Commons Standing Committee on Industry, Science and Technology in mid-May, making several crucial points to Canada’s parliamentarians (illustrated on the evidence page) and receiving perceptive questioning in return.

  As part of that process, a written submission was placed before the members of that committee.  And now, we are pleased to provide the members (as per many a request), and our loyal readership here, a revised and updated version of that submission!  Learn how our governments can help close the capital availability gap and increase the success rate of Canada’s greatest employer - small and medium size enterprises!

  

  July 31st, 2008 · No comments
• Seven Steps for Precluding Profitable Exits (aka “Worst Practices”)

  
  

  John Huston of the Ohio TechAngels recently published the following short article about the worst things Angels and Angel groups can do that can preclude them receiving a good return on their investments upon exit. This irreverent article, written quite tongue in cheek, really highlights some of the common mistakes first-time (and even veteran) Angels make and should avoid at all costs. Thank you, John, for this great article. I am sure we will add to this list in the future.

  1. Acquiesce to the entrepreneur’s requested stratospheric valuation in the first round (because you can’t build a partnership if you start by being disagreeable).
  2. Don’t bother to estimate how much additional dilutive capital will be needed to orchestrate a lucrative exit (because crafting a Capital Access Plan involves too much imprecision to be worth the effort).
  3. Base your potential return calculations on an IPO exit versus a company sale (because the enterprise is less likely to re-locate post-IPO, so let’s assume that’s our exit vehicle).
  4. Disregard the historic data about M & A exit proceeds for VC-backed enterprises in the same industry (because today’s market is obviously in flux, so historic evidence is not applicable right now.)
  5. Base your investment decision solely on who has already invested in the deal (because you can conveniently avoid wasting time on boring due diligence which they’ve probably already performed).
  6. After making your initial investment move to the “mute money mode” (because by spurning opportunities to assist the entrepreneur you can be sure to retain your objectivity).
  7. Only participate in the first round (because by being “Willie One Check” you not only invest all your money at the lowest valuation, but also need not haggle over contentious term sheet provisions like Pay to Play and Pre-emptive Rights).

  Note: The efficacy of these seven steps can be vastly enhanced if angels will simply make the following trifling assumptions when reviewing business plans:

  1. The founder/inventor deserves to remain CEO until the exit (besides, this horse is such a winner any jockey can ride it to the finish line).
  2. It is unlikely this enterprise will encounter any challenges not covered in the business plan (since it is so lengthy and thorough).
  3. If new investors are needed they will surely appreciate the value angels have provided the company to date (so they will gladly respect our existing terms).
  4. The level of detail in financial forecasts is highly correlated with accuracy (so the more complex the financial model, the higher the likelihood the forecasts will be achieved).
  5. There are still some transformational ideas which truly do “sell themselves” once they are made available to the marketplace (and fortunately this is one of them because “great science can always trump any sales and marketing wisdom or strategy”).
  6. If cash flow break-even can be achieved with just a tiny market capture percentage, then sales success will not be a daunting task (especially if the conservative forecasts haven’t even considered penetrating international markets, which could be gargantuan).
  7. And, for medical devices: So long as a device improves patient outcomes the medical community will eagerly embrace it (since physicians are solely concerned about enhancing patient experience, even if they do not personally benefit).

  For more information on some of the BEST practices for Angels and Angel groups, both entrepreners and Angels can refer to the National Angel Organization’s Best Practices Guide for Angel Groups and Investors.

  

  July 30th, 2008 · No comments