Naco 2012-report-on-angel-investment-activity

The 2012 Report on Angel Investing Activity in Canada

This report was made possible with the financial contribution from:

With Support from:
Industry Canada
National Sciences and Engineering Research Council of Canada (NSERC)
FedDev Ontario
BDC Venture Capital

Copyright © 2013 National Angel Capital Organization
This report is produced by the National Angel Capital Organization.
National Angel Capital Organization
101 College Street, MaRS Centre, Suite HL30B
Toronto, Ontario
M5G 1L7
Permission to Reproduce
Except as otherwise specifically noted, the information in this publication may be reproduced, in part or in
whole and by any means, without charge or further permission from the National Angel Capital
Organization, provided that due diligence is exercised in ensuring the accuracy of the information
reproduced; that the National Angel Capital Organization is identified as the source institution; and that
the reproduction is not represented as an official version of the information reproduced, nor as having
been made in affiliation with, or with the endorsement of, the National Angel Capital Organization.

Page 2


Acknowledgements

The heart of the report is the survey and interview results. This was conducted by Global Advantage
Consulting Group led by David B. Watters and Sarah K. Chappell. Special thanks to all the Angel group
managers who provided data and their time - without them there would be no Angel activity to report.
This report was made possible with financial contributions from Industry Canada, NSERC and BDC
Venture Capital.
We wish to thank the following members of the Steering Committee for their expert advice and
recommendations:
Karen Wilson, OECD
Steven Gedeon, Ryerson University
Joe Irvine, University of Ottawa
Thomas Hellmann, UBC - Sauder School of Business
Jean-Marc Suret, University of Laval
Mike Volker, Simon Fraser University
Paul Schure, University of Victoria
Marc Duhamel, Université de Moncton
Jim Valerio, Industry Canada
Michael Scholz, Industry Canada
France Vaillancourt, NSERC
Michael Cain, Angel Resource Institute
David B. Watters, Global Advantage Consulting Group
Sarah Chappell, Global Advantage Consulting Group
Yuri Navarro, National Angel Capital Organization
Melissa Dodaro, National Angel Capital Organization

Special thanks to Doug Fyfe, Senior Project Manager at Manitoba Entrepreneurship, Training and Trade
for providing information on Manitoba's Small Business Venture Capital Tax Credit Program, and to Clint
Megaffin, Administrator of the Venture Capital Program in B.C. for providing summary statistics on B.C.'s
Angel activity.

Page 3


Message from the Chair
As the only national Angel organization in Canada, NACO strives to be the champion of Canada’s Angel
asset-class, accelerating a thriving early-stage investing ecosystem that is critical to innovation and
economic growth. In order to accomplish this, NACO works with individuals, groups and other partners to:
•
•
•
•

Provide trusted intelligence on Angel investing in Canada,
Connect investors, networks and industry partners,
Support industry best practices and Angel investor professional development, and
Inform policy in support of the early-stage funding ecosystem.

This is the third study compiled by NACO that examines the activity levels of the visible Angel community
across Canada. Each year, our report becomes more detailed, and we are proud to be able to provide
primary data about Angel investing in the country. For the first time, this year’s report includes information
on valuations, includes data on accelerators, and we have started to identify the groups that are leading
the pack in Canada. Our goal for this report is to continually improve the availability of data on Angel
investing in Canada and through our findings, to provide valuable information to all of our stakeholders.
We are pleased with the findings of this report and look forward to working with our supporters to further
develop this asset and analyze trends over the coming years.
This year’s report surveyed 20 of 24 (83%) Angel groups in Canada that are NACO members. The
survey shows that there were 139 investments in 2012, a 96% increase from 2011, and that they totaled
$40.5M, a 13% increase over 2011. The conclusions and analysis of this report will lead to the sharing of
best practices among NACO members, increased returns for Angels, and increased benefits for Canada.
Finally, I would like to acknowledge the efforts of all of those who contributed to this report, including the
Global Advantage team, the Research Steering Committee and the Angel group managers, without whom
this report would not be possible.

Michelle Scarborough, Chair
National Angel Capital Organization
.

Page 4


Table of Contents
EXECUTIVE SUMMARY

7

1

INTRODUCTION

10

2

CANADIAN ANGEL GROUP ACTIVITY 2012

11

Survey Methodology

11

2.1

Angel Group Characteristics

11

2.1.1

Age of Angel Groups

11

2.1.2

Entrepreneurial Background of Angels

12

2.1.3

Method of Operation

12

2.1.4

Total number and Size of Angel Groups

13

2.1.5

Activity Level in 2012

13

2.1.6

Demand for Funding and Investment Activity

14

2.1.7

Targeted Location of Investment

15

2.2

Investments in 2012

16

2.2.1

Number and Value of New and Follow-on Investments

16

2.2.2

Top 5 Angel Groups in Canada for 2012

19

2.2.3

Co-Investment Activity

19

2.2.4

Number and Value of Investments by Region

20

2.2.5

Equity Shares and Valuations of Investments

22

2.2.6

Comparison of Investment Activity by Sector

22

2.2.7

Types of Government Programs Involved in the Investment

24

2.2.8

Number of Full-Time Equivalent Employees at Investment

25

2.3

Exits in 2012

25

2.3.1

Length of Investment before Exit

25

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2.3.2

Return on Investment (ROI)

26

2.3.3

Method of Exit

26

2.3.4

Number of Full-Time Equivalent Employees at Exit

27

3

BEST PRACTICES AND CHALLENGES

28

4

ACCELERATORS

29

4.1.1

Access to Capital

29

4.1.2

Supply and Demand

29

4.1.3

Company Investment Details

30

5

CONCLUSIONS

31

6

ANNEX I: The Survey Instrument

32

Page 6


Executive Summary
The 2012 Angel Activity Report identifies key trends in Angel investment across Canada. NACO gathered
survey and interview responses from Angel group managers to determine Canadian business Angel
investments and exits in 2012. These responses were then compared with similar studies conducted in
2010 and 2011 to establish trends and to create a longitudinal database of Angel investments in Canada
with the status of each deal tracked.
Progressively, these annual surveys will help to determine how effectively Canadian Angel groups are
meeting the need for seed and early-stage risk capital in Canada. The anticipated impact of this study will
be to highlight the activities of Canadian Angels as a key
stakeholder in the entrepreneurial ecosystem. This year we
have begun to examine the performance of another key
This Report provides a window
into the activity level of “visible”
member of this ecosystem, namely accelerators (see chapter
Angels - namely Angel groups in
4). Over the past three years, this report has captured 270
Canada
Angel investments, totalling $91.16M, a significant contribution
to the Canadian entrepreneurial ecosystem.
This report focuses on the activities of the most "visible"
portion of the Angel market, Angel groups. It does not examine investments by individual Angels whose
preference is to remain anonymous and thus "invisible". This Report surveyed 20 of the 24 Angel groups
in Canada who are members of NACO. Of these, 15 groups were interviewed to ensure that the data
provided by the group managers in the online survey was well understood and complete.
Key points from the 2012 survey are summarized below:

1. Angel Groups in Canada
•
•

•

•

•
•

75% of Angel groups have been established
• 83% NACO members responded
within the last five years (since 2007).
• 75% Angel Groups < 5 years old
The majority of groups operate on the basis of
individual members making their own investment
• 70% Angel Groups saw > 50
decisions, as was the case in both 2011 and
business plans in 2012
2010.
• The size of Angel groups is
The number of Angel groups in Canada
increasing
continues to fluctuate with two groups
disbanding in 2012.
The size of Angel groups is increasing:
o 45% of Angel groups have fewer than 50 members (compared to 70% in 2011).
o 30% of Angel groups had between one and 10 members making investments in 2012
(compared to 60% in 2011).
o 20% of Angel groups had between 51 and 100 active members (a 16%
increase compared to 4% in 2011).
70% of Angel groups indicated that they received more than 50 business plans in 2012.
Percentage of business plans selected for detailed review increased from 14.9% (2011) to
15.3% (2012).

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•
•
•

Percentage of business plans funded (of vetted plans) increased from 43.9% (2011) to 47.4%
(2012).
Percentage of business plans funded of all received increased from 6.5% (2011) to 7.3%
(2012).
Angel groups tended to invest in local companies in 2012, a trend that is consistent with prior
years.

2. Angel Group Investments in 2012
•

•

•

•
•
•
•

•

In 2012, there were 139 investments reported
(102 new, 30 follow-on, and 7 unreported)
totalling $40.5M ($28.9M new, $7.3M follow-on
• 139 reported investments ($40.5M)
and another $4.3M aggregated).
in 2012 vs. 71 reported
1
1
In 2011 , there were 71 investments reported
investments ($35.7M) in 2011
(52 new and 19 follow-on) totalling $35.7M
• 96% increase in deals
($20.8M new and $14.9M follow-on).
• 13% increase investment value
This represents a 96% increase in the number
of investments and a 13% increase in the total
value of investments from 2011 to 2012.
For the deals that were reported, the mean
2
company valuation was $2.063M and the median company valuation was $1.550M .
The highest level of reported activity was done by Angel groups based in Central Canada,
which were responsible for $33.4M or 82% of total investments.
Information and Communications Technology ($17.9M), Life Sciences ($7.5M), and Clean
Technology ($3.2M) continue to be the top three sectors by investment value in Canada.
55% of recorded investments involved a coinvestor (15% less than in 2011), with 72% of
co-investors in the form a syndicated
• 82% Angel investment in 2012
investment of Angel investors (either
($33.4M) was in Central Canada.
independent Angels or those associated with
• ICT ($17.9M; 54%), Life Sciences
different Angel group).
($7.5M; 23%) and Clean
The majority of the reported investments
Technology ($3.2M; 10%) remained
leveraged government support. The top three
as the top three sectors for Angel
government programs leveraged by Angels
investment in 2012.
were FedDev Ontario's Investing in Business
Innovation (IBI) program (33%), the Northern
Ontario Heritage Fund Corporation (21%), and
The National Research Council’s Industrial
Research Program (NRC- IRAP) (17%). A number of investments took advantage of more
than one government program.

1

One Angel group that had over-reported its investment activity in previous years revised its methodology in 2012 to correct this
problem. In this report, this correction was applied to the 2011 and 2010 data as well.

2
Note that these numbers are based on the 25% of investments that invested equity and reported valuations in 2012.

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•

The majority of investments (54%) were made to small companies with less than 5
employees (FTEs). The amount invested into these small companies was $11.042M.

3. Angel Group Exits in 2012
•
•

•
•
•
•

3

Eight exits were captured in 2012.
The exits can be divided into four different types:
o Two firms ceased operations (one generated a negative return, and in the other the
investor was able to recover the equipment and sell it to another company);
o Two firms were sold to / merged with another firm;
o Two firms were sold to a new shareholder; and
o Two firms were sold to other existing shareholders
Original Angel investments in the four recorded exits was $1.87M.
Most of the exits took three years or less from investment to exit.
Of the four exits with complete data reported - two were successful, one generated a
negative return, and one was neutral – A total of $2.35M was returned to investors.
Of the six exits reporting employment data at exit, one had 5 FTE or less; three had between
6-10 FTE and two had between 11-25 Full Time Equivalent employees (FTEs).

4. Accelerators
For the first time, this Report also surveyed business
accelerators. Highlights of the aggregated findings from
• Average capital investment by
six accelerators include:
accelerators
was
$50K
per
• The median of the average capital
company
investment by the five accelerators was
• Firms in accelerators received a
$50,000 per company.
total of $13.65M in investment
• The investee companies were
predominantly in ICT (59%), with new
• ICT (54%), New Media (19%) and
Clean Technology (10%) were the
media following well behind at 19% and
top three sectors for accelerators
clean technology at 10%.
• Companies embedded in the accelerators
surveyed have received a total of $13.65M
in investment from Angels, VC, BDC’s
convertible debenture, and other government funding both post and prior to graduation.

3

This data set is limited with 4 of the 8 reported exits having complete data. The incomplete data set is partially a result of
confidentiality issues and data gathering issues by the group managers from the group members. During the phone interviews with
15 out of the 20 Angel groups, Angel group managers were asked whether they had an exit to report in 2012, be it successful or
unsuccessful. This then confirmed that all exits were captured in this year's report. It must be noted that the Angel community in
Canada is young, and that these data sets are expected to improve over time.

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1 Introduction
Angel investors are often experienced, well-educated, high-net-worth individuals who invest personal
funds in the businesses of unrelated individuals. Angel investors are frequently former entrepreneurs or
business professionals who have much to offer to new businesses in terms of financing, networks and
mentorship. In this year’s Report, the definition of an Angel investor has been slightly changed from the
term “business Angel” used in the 2011 Report. However, this change from “business Angel" to “Angel
investor” did not affect the survey results and reflects the term more widely used in the industry across
North America.
It is well known that Angel investors – both as individuals and in networks – play an important role in the
Canadian entrepreneurship ecosystem. In Canada, there are approximately 500,000 accredited
4
investors , but only a fraction of these investors choose to actively invest in early-stage companies. Angel
investors often invest alone, but increasingly investors are joining Angel groups where they can find
investment opportunities and leverage the knowledge and experience of other Angels in that network.
There are currently more than 30 identifiable Angel groups/networks in Canada that come in a range of
structures that reflect their local investment environment. These groups represent approximately 1000
5
Angel investors . Angel group/network investing is a relatively new phenomenon in Canada, one that is
making a significant contribution to support the Canadian
entrepreneurship ecosystem. Typically, Angel organizations
can be grouped into four categories: formal non-profit Angel
• There are over 30 identifiable
investor networks; informal Angel investor clubs; Angel investor
Angel groups/networks in
Canada.
funds; and family offices. All four types of Angel group
structures were approached in the 2012 Report. These
organizations differ significantly in terms of legal structure,
management structure, membership policies, services provided
and level of involvement in the investment process. However, it is important to note that only accredited
investors are accepted into these organizations.
Another emerging phenomenon in early stage financing are business accelerators. Accelerators provide
start-up companies with the services and training they need to successfully grow in national or global
markets. Since Angel investing is one of the main forms of accessible investment to growth-oriented
companies to finance their operations, accelerators play an integral role in bridging the relationship
between entrepreneurs and Angel investors. Angels looking to invest in a company can begin to cultivate
relationships with start-ups and can mentor the entrepreneurs from a very early stage.

4

As defined by the National Instrument 45-106.
The Ontario Securities Commission. (2012). OSC Exempt Market Review: OSC Staff Consultation Report Paper 45-710,
Considerations for New Capital Raising Prospectus Exemptions. Toronto: OSC
5
Throughout this report, when referring to Angel groups/networks, we are referring to a forum with some membership of several
individuals that meet regularly to review investment opportunities and make Angel-stage investments.

Page 10


2 Canadian Angel Group Activity 2012
Survey Methodology
This is the third annual survey of Canadian Angel groups. The online survey was distributed through
FluidSurveys in January 2013 to 24 Angel groups who are members of NACO. As previously stated,
NACO is continuously seeking to expand participation in this study. The response rate for 2012 remained
high with 83% (or 20 Angel groups) providing data.
Following survey completion, telephone interviews were conducted with 15 of the respondents in order to
clarify some of the information provided.
Note that while some Angel groups are working towards improved record keeping, the lack of
administrative support has sometimes resulted in incomplete survey responses. In addition, some groups
were only able to report aggregated data and not data on individual investments. Also, survey collection
for two groups from Ontario was collected through the Network of Angel Organizations-Ontario (NAO-O)
with the permission of the Angel group managers. Please see Annex I for the survey instrument.
The survey data results make it possible to compare the Angel market and investment trends in 2012 with
previous years. The following new questions were added to this year’s survey:
•
•
•
•
•
•

Where does your Angel group generally make investments?
What key industry sectors does your Angel group target for investment?
How many meetings does your Angel group hold per year?
How many companies are generally discussed per meeting?
Number of full-time employees at investment.
Number of full-time employees at exit.

As indicated in the 2011 Report, NACO has taken initial steps to gather additional data from super-Angels
and self-identified individual Angels visible to NACO. Further, NACO has also taken steps to gather
additional data from accelerators/incubators in the ecosystem.
The remainder of this section provides a description of the 2012 survey results, with the discussion
grouped into the following three themes:
1. Angel Group Characteristics
2. Angel Group Investments in 2012, and
3. Angel Group Exits in 2012

2.1

Angel Group Characteristics

2.1.1

Age of Angel Groups

Although there are a couple of long-established groups in Canada, the oldest was established in 1997.
Canadian Angel groups are young. The majority (75%) of Angel groups in Canada have been in operation
for less than five years (Figure 1). In 2011, 63% of Angel groups were less than four years old. The
median age of Angel groups has remained constant at three years (while the average age increased
slightly from 3.7 to 4.4 years in 2012).

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There were some changes in the composition of the survey responders from 2011 to 2012. First, three
Angel groups which had not previously participated in the survey participated in the 2012 iteration, while
three other groups that had participated in the 2011 survey did not participate in 2012 survey including
two groups which had disbanded in 2012 (in Ontario and in Western Canada). While the 2011 iteration of
the survey noted five new Angel groups having been formed over the year, there were no new groups
formed in 2012.

Number of Groups

F1: Years in Operation
6!
4!
2!
0!
1 Yr 2 Yrs 3 Yrs 4 Yrs 5 Yrs 6 Yrs 7 Yrs 8 Yrs 9 Yrs 10 Yrs 11 Yrs 12 Yrs 13 Yrs 14 Yrs 15 Yrs
Number of Years in Operation

F2: Percentage of Angel
Group Members with
Entrepreneurial Background

5%
40%

1 to 25%

30%

26 to 50%
51 to 75%

25%
2.1.3

2.1.2

Total: 20 Groups

Entrepreneurial Background of Angels

Consistent with the literature and almost identical to 2011
findings, a majority of Angel groups (65%) indicated that over
half of their members are either current or former
entrepreneurs (Figure 2). This is important as Angel investors
often provide investees with advice, mentorship and access to
networks that support the development of the investee
companies.

76 to 100%

Method of Operation

Angels tend to share the responsibility of due diligence
with other Angel group members while also
maintaining a degree of independence. 55% of the
Angel groups made investments as individuals with
due diligence performed collectively by the group
investors, while 25% of Angel groups made
investments as individuals with due diligence
performed by individual Angels (Figure 3). This is
consistent with findings in both 2010 and 2011 where
the majority of groups operate on the basis of
individual members investing autonomously.

F3: How Angel Groups Make
Investments

Both as a
group and
as
individual
s
20%

Mostly as
individual
s: Based
on
individual
due
diligence
25%

Mostly as
individual
s: Based
on group
due
diligence
55%

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2.1.4

Total number and Size of Angel Groups

Nine of the 20 Angel groups had less than 50 Angel members (Figure 4). According to the Angel
Resource Institute, the optimal size for an Angel group is between 26 and 50 members. This size permits
the group to raise a sufficient amount of capital, but not experience a heavy administrative overhead. In
this regard, 25% of Angel groups in 2012 had a group size of between 26 and 50 members.

F4: Angel Group Membership Size Distribution, 2012
Number of Groups

6
5
4
3
2
1
0
1 to 10

11 to 25

26 to 50

51 to 75

76 to 100

Over 100

Range of Members in Angel Groups

In 2011, the vast majority of groups (about 70%) had fewer than 50 members, indicative of an overall
increase in Angel group size from 2011 to 2012 (see Figure 5).

Number of Groups

F5: Comparison of Angel Group Size Ranges 2010-2012
10
5
0
1 to 10

11 to 25

26 to 50

51 to 100

Over 100

Range of Members in the Angel Group (at end of year)
2010

2.1.5

2011

2012

Activity Level in 2012

An Angel group with a large number of members does not necessarily result in a large number of active
members (Table 1). In 2012, 30% of Angel groups indicated that fewer than 10 members invested in 2012
(Figure 6), compared to 57% in 2011. In 2012, 20% of Angel groups indicated that between 51 and 100
Angel group members made investments, an increase in Angel group member investment activity over
2011. Of the 20 Angel groups that provided data, approximately 500 members made investments in 2012.

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Number of Groups

F6: Activity Level of Angel Groups, 2012
10
5
0
0

1 to 10

11 to 25

26 to 50

51 to 100

Over 100

Size Range (# of Active Members/Angel Group)

40% of respondents indicated that they hold seven to ten meetings per year to discuss about three firms
per meeting. This is slightly less frequent than that reported by the US Angel Resource Institute 2011
data indicating that a majority of US groups hold 11-12 meetings a year to discuss two firms per meeting.
Table 1: Size of Angel Group (Y) versus Number of Active Members in 2012 (X)

Size of
Angel
Group
2.1.6

Ranges
1 to 10
11 to 25
26 to 50
51 to 100
Over 100

Number of Active Members in Group
1 to 10
11 to 25
26 to 50
51 to 100

0
1

2
4

Over 100

1
3

1
1
2

2
2

1

Demand for Funding and Investment Activity

The number of business plans received and the number selected for due diligence varies considerably for
each Angel group (Table 2). The majority (70%) of Angel groups received more than 50 business plans in
2012 - with 35% receiving over 100 plans. In 2012, 15.3% of the submitted business plans were selected
for further due diligence by Angel investors, an increase from 14.9% in 2011. There was also an increase
in both the number of business plans funded as a proportion of those selected for due diligence (47% vs.
44%) and in the number of business plans funded as a proportion of those received (7.3% vs. 6.5%), see
Table 3.
Table 2: Business Plans Received (Y) vs. Those Selected for Due Diligence (X) in 2012
Business Plans Selected for Due Diligence

Business
Plans
Received

Ranges
0
1 to 5
6 to 10
11 to 25
26 to 50
51 to 100
100+

0

1 to 5

6 to 10

11 to 25

26 to 50

4
1

1
1
1
5

51+

1

1
1
2
2

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Table 3: Yield Rates

6

Yield Rates
'Presentation Rate': business plans selected for review as a proportion of
those received
'Success Rate': business plans funded as a proportion of those selected
'Funding Rate': business plans funded as a proportion of those received.

All three indicators (Presentation Rate; Success Rate
and Funding Rate) have increased slightly each year of
the survey suggestive of improved quality of business
plans and investment opportunities.
2.1.7

2010
13.9%

2011
14.9%

2012
15.3%

32.2%
4.5%

43.9%
6.5%

47.4%
7.3%

F7: Location of Investments
2012
Same
Province
(different
City)
27%

Unknown
34%

Targeted Location of Investment

As shown in Figure 7, the majority (95% in 2012) of
Angel groups generally invest in local companies whether
it is within their city (35%) or within their province (60%).
This is a trend that is consistent with prior years.
Proximity allows for more rigorous and active monitoring
of portfolio companies for Angels.

Rest of
Canada
2%

Same City
37%

Number of Investments (total = 139)

F8: Location of Angel Group Versus Location of Company HQ, 2012
50

43
36

40

31
30

16

20
10

7
2

1

1

2

0
Eastern Canada

Central Canada

Western Canada

Region
In City

In Province

In Region

Out of Region

Unknown

6

Angel group managers provided all info by selecting a range of numbers. Yield rates were calculated by using the middle number
in the range.

Page 15


2.2
2.2.1

Investments in 2012
Number and Value of New and Follow-on Investments

A total of 19 groups provided full, partial or aggregated information on their investments in 2012. One
group had no deals to report. One Angel group that had over-reported its investment activity in previous
years revised its methodology in 2012 to correct this problem. In this report, this correction was applied to
the 2011 and 2010 data as well.
This study has captured a total of 139 investments (102 new, 30 follow-on and seven unknown) for a total
value of $40.5M ($28.9M new, $7.3M follow-on and note that three groups have aggregated data totalling
$4.3M) invested by Canadian Angel group members. In 2011 there were 71 investments (52 new and 19
follow-on) with a total value of $35.7M (see Figures 9 and 10).

F9: Three year Comparison of New and Follow-on Investments in Canada
Number of Investments

120

102

100
80
60

55

52
30

40
20

19

11

0
2010
New

2011
Year
Follow-on
Not Specified

2012

Again this year, Angel groups were primarily making new investments, with 77% of the investment value
7
in 2012, up from 73% new investments in 2011 .

7

Company valuation is difficult to calculate and only roughly 25% of investments reported valuations. The valuation was calculated
by multiplying the amount invested by the percentage of equity received for that amount.

Page 16


Investment Value (millions)

F10: Three year Comparison of the Total Value of Angel Group
Investments in Canada
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$-

$28.90 M
$20.80 M
$14.90 M

$13.82 M

$7.30 M
$4.30 M

$1.14 M
2010

2011
New

2012

Year
Follow-on
Not Specified

Average Investment
Amount

2011 saw 71 investments totalling $35.7M and 2012 had 139 investments totalling $40.5M (Figure 10).
This is a 96% increase in the number of deals reported from 2011 to 2012 and a 13% increase in the
value of the investments reported, indicating that Canadian Angels are making more investments, but at
smaller amounts. The average investment size in 2012 was $313,935, which is 38% lower than in 2011,
but remained 15% higher than that seen in 2010 (Figure 11).

F11: Three Year Comparison of Average Investment Size
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-

$506,679
$313,935

$271,992

2010

2011

2012

Year

Finally, a corollary of the increased size of Angel groups and number of investments is the fact that the
number of groups which made between 0 and 5 investments decreased from 70% in 2011 to 53% in 2012
(Figure 12). Meanwhile the percentage of groups making over 10 investments grew from 8% to 25% in
2012. Together, these trends appear to suggest that the visible Angel market in Canada is becoming
increasingly active.

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F12: Number of Investments Made by Groups in 2012

5 Groups (25%)
made between 11 to
25
investments

1 Group
(5%) made no
investments

9 Groups (45%)
made between 1 to 5
investments
5 Groups (25%)
made between 6 to
10 investments

F13: Number of Investments Made by Groups in 2011
3 Groups (13%)
made no investments
1 Group (4%) made
between 26 to 50
investments
1 Group (4%) made
between 11 to 25
investments

13 Groups (57%)
made between 1 to 5
investments

5 Groups (22%)
made between 6 to
10 investments

Page 18


2.2.2 Top 5 Angel Groups in Canada for 2012
The Top 5 Angel Groups in 2012 by dollar amount invested:
1.
2.
3.
4.
5.

Golden Triangle Angel Network
Angel One Network
Northern Ontario Angels
Capital Angel Network
VANTEC

The Top 5 Angel group in 2012 by number of investments made (T1 indicates that the first 3 groups are
tied with an equal number of investments):
T1
T1
T1
4.
5.
2.2.3

Angel One Network
Northern Ontario Angels
Capital Angel Network
Golden Triangle Angel Network
WUTIF Capital

Co-Investment Activity

Angels often co-invest alongside other investors. 27% of the investments captured in 2012 involved a coinvestor, 20% of the investments had no co-investors and 53% of the investments reported did not
indicate whether co-investors were involved.
The total amount invested by co-investors alongside Angel groups in 2012 was $29.7M, 7% lower than
8
the $31.8M co-invested reported in 2011 . In addition, average co-investment in 2012 was just over half
of the level seen in 2011 ($757,226 in 2011 compared to $385,604 in 2012). When co-investors
participated, the majority of deals (54%) had fewer than 10 co-investors involved. The types of coinvestors included individual Angel investors (37%), Angel investors associated with other groups (i.e.
syndicated investment) (35%), venture capital (17%), and institutional Angel investors (9%) (Figure 14).
Note that 'other' represents a combination of ‘family and friends’ and Angel groups outside of Canada.

8

In 2011, 54% of investments reported did not indicate whether co-investment was involved. This is comparable to 53% of
investments in 2012.

Page 19


F14: Types of Co-investors, 2012
Institutional Angel
Investor
9%

Other
2%

Venture Capital
(general)
17%

Individual Angel
Investors
37%

Angel Investors
associated with other
groups
35%

2.2.4

Number and Value of Investments by Region

Similar to 2011, the vast majority (82%) of Angel group activity that has been captured occurred in
Central Canada – where the groups making the investments are based in Ontario and Quebec, totalling
$33.4M in 115 investments. The remaining investments captured originated in Western Canada (16%)
9
totalling $6.5M and in Eastern Canada (2%) for a total of $670K (see Figures 15 and 16) .
The average value invested in Western Canada almost tripled, from $118K in 2011 to $449K in 2012.
Conversely, the average value invested in Central Canada in 2012 was half of that in 2011 ($617K in
2011; $309K in 2012). In Eastern Canada the average investment also decreased from $286K in 2011 to
$223K in 2012.
The average co-investment value by region revealed identical trends as co-investment in Western
Canada rose by 120% (from $222K in 2011 to $491K), decreased in Central Canada by 46% (from
$724K to $388K) and fell in Eastern Canada by 38% (from $357K in 2011 to $220K in 2012).

9

Note: Figures 15, 16, and 17 represent where the Angel group that provided the investment is located, not the location of the
company that received the investment.

Page 20


F15: Number of
Investments by Region,
2012

F16: Total Value of Investments by
Region, 2012

140

$40,000,000

115
Value of Investment


120
100
80
60
40

21

$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000

20

$33,364,200

$35,000,000

$6,516,331

3

$670,400

$5,000,000

0
Western
Canada

Central
Canada

Eastern
Canada

$-

Western

Region

Central

Eastern

Region

Average Amount invested (thousands)

F17: Three Year Comparison of Average Value of Investments
by Region
$700

$617

$600

$524

$500

$449

$400
$300
$200

$309
$212

$286
$202

$223

$118

$100
$Western Canada

Central Canada

Eastern Canada

Year
2010

2011

2012

Page 21


F18: Average Value of Co-investment by Region, 2012

Average Investment Value

$600,000
$500,000

$490,714
$387,825

$400,000
$300,000

$220,000
$200,000
$100,000
$0
Western Canada

Central Canada

Eastern Canada

Region

2.2.5

Equity Shares and Valuations of Investments

The percentage of equity received from investments remains challenging for Angel group managers to
track as only 36 deals (covering 25% of total investments) were able to report information on equity. This
is due to the fact that the information was not available to the Angel group managers as some
investments take the form of convertible debentures and liens on equipment. However, the average
10
percentage equity received for 2012 for those able to report was 19%, up from 17% received in 2011 .
Using the information reported on equity, valuations of the companies receiving investment were
calculated. The median value was $1.55M and the mean value was $2.06M. These averages serve to
provide insight into the typical value of the investments made.
2.2.6

11

Comparison of Investment Activity by Sector

Angel groups invested in the following top three industry sectors in 2012: ICT (57 investments), life
sciences (20 investments), and clean technology as well as diversified industries each representing nine
investments (see Figure 19). Notably, there has been an increase in the number of investments for both
the communications and media sector from 0 in 2011 to two investments in 2012 and the new media
sector from two investments in 2011 to six investments in 2012.

10

The exit data received is thin, however, this report is new (third year) and we anticipate exit data will improve over time.
The ICT sector includes: software, communications & networking, wireless & mobile, E&M commerce, internet focus/web2.0,
electronics & computers, and semiconductors. The new media sector includes game development and social media platforms. The
Communications & Media sector includes telecommunications and film. The Clean technology sector includes: alternate/clean
energy, hardware, energy infrastructure, energy informatics, smart grid, and environmental technology. Diversified industries
include: automotive, defence, fisheries and aquatics, tourism, business products, consumer products, and retail. The Life sciences
sector includes: biopharmaceuticals/drugs, medical/biotechnology software, medical devices & equipment, healthcare, and
bioagriculture. The traditional industries sector includes: financial services, mining, oil & gas, real estate, and utilities & pipelines.

11

Page 22


When examining the total dollar amount invested by Angel groups per sector ICT ranks first having
attracted 54% of total investment value (or $17.9M), life sciences second having attracted 23% (or $7.5M)
and clean technology third having attracted 10% of total investment (or $3.2M), see Figure 20. (Also note
that Angel groups could not identify a sector for $7.5M worth of investments). These are the same top
three sectors as found in 2011: ICT, life sciences, and clean technology.


F19: Comparison of Number of Investments by Sector
60
50
40
30
20
10
0
ICT

Clean
Technology

Life
Sciences

Diversified
Industries

Traditional
Industries

New Media

Communica
tions and
Media

2010

28

7

4

9

4

4

1

2011

32

6

18

7

3

2

0

2012

57

9

20

9

0

6

2

Diversified
Industries
3%

F20: Value of Investments by Sector, 2012

Communications
& Media
7%

New Media Other
2%
1%

Clean
Technology
10%

ICT
54%

Life Sciences
23%

Page 23


2.2.7

Types of Government Programs Involved in the Investment

A large portion (53 or 38%) of investments leveraged government programs. The top three government
programs leveraged by Angel groups were: FedDev Ontario's Investing in Business Innovation program
(33%), Northern Ontario Heritage Fund Corporation (21%), and the National Research Council’s
Industrial Research Assistance Program (NRC-IRAP) (17%) see Figure 21.
Note that several investments leveraged more than one government program. Other government
programs used to support Angel group investments in 2012 include: BC's Investment Tax Credit (6%),
Ontario Centres of Excellence (4%), Sustainable Development Technology Canada (2%), Regional
Economic Intervention Fund (Quebec's FIER, 1%), and ACOA’s Business Development Program (1%).
This is the first year for the collection of this data, meaning that it is too early to determine trends.
However, this data provides useful insights into program leverage and will continue to be tracked in
12
future.

F21: Government Programs Involved, 2012
Sustainable
Development
Technology Canada
(SDTC)
2%
Ontario Centres of
Excellence (OCE)
4%

Regional Economic
Intervention Fund
(Quebec - FIER)
1%

British Columbia
Investment Tax Credit
6%
None
15%

Industrial Research
Assistance Program
(IRAP) at the NRC
17%

ACOA's Business
Developent Program
1%

Investing in Business
Innovation (IBI) at
FedDev Ontario
33%

Northern Ontario
Heritage Fund
Corporation
(NOHFC) at the
Ontario Government
21%

12

If more than one government program was used per investment, each program was recorded as utilized. The results were then
summed and represented as a form of an average.

Page 24


2.2.8

Number of Full-Time Equivalent Employees at Investment

In another new question in the survey, Angel groups indicated that 44% of their investments included
access to the number of FTEs at the time of investment. These responses are expected to improve over
time. Ultimately, we intend to track individual investments from start to exit to assess job growth due in
part to the injection of capital from Angel groups. The majority of investments (54%) were made to small
companies with between one to five full-time equivalent employees (see Figure 22).

F22: Number of FTEs at Investment Stage
26 to 50
3%

51 to 99
3%

11 to 25
24%

1 to 5
54%

6 to 10
16%

2.3

Exits in 2012

There were a total of eight exits reported in 2012 by Angel groups in Canada (the same number as
captured in 2011). Three exits were in consumer products, two in ICT, one in marketing and
communications, and the last two sectors are unspecified. For seven of these exits the total initial Angel
investment was $1.87M (one was unspecified).
2.3.1

Length of Investment before Exit

Note that 87% of Angel group investments took three years or less to mature before exit (see Figure 23);
whereas more than four years to exit was reported in 2011. The time needed to exit will be examined in
future surveys to assess the factors in determining this length.

Page 25


F23: Length of Time to Exit
6 Yrs
13%

1 Yr
25%

3 Yrs
25%

2 Yrs
37%

2.3.2

Return on Investment (ROI)

With such a small data set (seven disclosed exit events) for which we do have complete comparable
information, it is not possible to form a conclusive analysis on investor ROI. However, the total amount
invested in the four recorded exits was $1.87M. These same companies returned a total of $2.35M to
their Angel Group investors. One of these companies returned almost seven-fold the Angel members’
original investment (i.e. a home run). Two of these investments generated a positive return, one
generated a negative return and the last investment was neutral.
2.3.3

Method of Exit

Two companies ceased operations with one generating a negative return and the other recovering the
investment capital through the sale of equipment to another company. The remaining six exits were
equally split three ways between sale to/merger with another company (25%), sale to new shareholder
(25%) and sale to other existing shareholders (25%), see Figure 24.

F24: Method of Exit in Canada, 2012
Company ceased
operations
25%

Sale to new
shareholders
25%

Sale to/merger with
another company
25%

Sale to other existing
shareholders
25%

Page 26


2.3.4

Number of Full-Time Equivalent Employees at Exit

Employment data was captured for six of the eight exits. One firm which had exited had less than six
employees, three of the firms which had exited had less than 10 employees, and two of the firms which
had exited reported between 11 and 25 employees (see Figure 25). Our eventual goal is to track
investments from initial investment to exit to demonstrate job growth attributable to and associated with
Angel investments.

Number of Exits

F25: Number of FTEs at Exit
4

3

2

1

0

1 to 5

6 to 10

11 to 25

26 to 50

51 to 99

Number of FTEs Emloyed by the Company at Exit

Page 27


3 Best Practices and Challenges
During the interviews conducted with Angel group managers, they identified the following best practices
which contributed to their success in 2012:
ü

Good record keeping: To monitor the success and/or failures of investments (to measure return
on investment (ROI) and improve the Angel groups’ track record).

ü

Regularly scheduled meetings: To help increase the activity level of the Angel group and its
members. One Angel group indicated informal meetings were viewed as positive.

ü

Syndication: To diversify the risk associated with a single deal, an increase in the number of
Angels involved in the investment and the number of deals in a portfolio.

ü

Clarity of investment processes: To minimize lengthy, ad hoc investment processes that can
lead to complications when multiple investors are involved.

ü

Disciplined processes: As a means to improve deal flow and as a screening mechanism,
members use disciplined processes (including a sneak preview, after which the entrepreneur
must find a sponsor to give a full presentation to Angel investors).

ü

Collaborating with experts: To improve the due diligence process, Angel groups are exploring
options including working with experts at local universities or serial entrepreneurs in order to
ensure that the proper expertise is involved in vetting deals.

ü

Collaborating with other partners in the ecosystem for screening purposes: To save time
and complement existing resources, some Angel groups have partners who screen presentations
and weed out those that are not yet ready.

Angel group managers also identified the following challenges facing their groups:
ü

Lack of support funding: Many groups rely on membership fees to support operations, while
some are fortunate to receive funding support from regional development agencies and corporate
sponsors. A number of groups indicated that they rely on the work of volunteer members, which
can lead to member fatigue. As such, group managers indicated that increased government
funding is needed to support the group’s efforts to organize investment meetings, recruitment
events and administrate the group.

ü

Investor fatigue: A main challenge for a number of Angel groups is the length of time to exit.
Long investment time horizons restrict the Angels' ability to re-invest in new companies. The lack
of re-circulation of funds means groups must recruit new membership in order to remain active.
Much of the Angel group managers’ time is spent seeking new membership in an attempt to
address investor fatigue.

ü

Quality of supply: Finding a well-managed company with a high potential for growth and can get
to an exit faster is an ongoing challenge for investors. Some groups are addressing this by
setting up strategic partnerships with local organizations that support entrepreneurs.

Page 28


4 Accelerators
Accelerators are organizations that provide selected entrepreneurs with seed-investment and intense
structured mentorship, business education and access to business networks for a finite period of time,
usually in exchange for equity in the entrepreneur’s
venture. Angels often look to accelerators to identify
F26: Investee Companies Industry
Sectors
investment opportunities and for an opportunity to
Diversified
Life
participate in subsequent seed financing opportunities in
Industries
Sciences
3%
portfolio companies.
9%
For the first time, this Report surveyed six accelerators
across Canada all of which use a cohort model to
screen and select entrepreneurs (the medium intake per
accelerator is two cohorts per year). The median
number of companies typically accepted into a cohort is
five. In 2012, approximately 52 companies were
accepted into five of the accelerators (note that the
number of companies in the cohort for one accelerator
was not provided). The investee companies were
predominantly in ICT (59%), with new media following
well behind at 19% and clean technology at 10% (Figure
26).
4.1.1

Clean
Technology
10%

New Media
19%

ICT
59%

Access to Capital

All of the surveyed accelerators indicated that they provided capital to companies in exchange for equity.
Four of the six surveyed accelerators were located in Ontario, one in Quebec and one in British
Columbia. Note that one of the accelerators stated that they took a mixture of company equity and debt.
The median investment amount by the five accelerators that disclosed this information was $50K per
company with investments ranging between $20K and $80K. The source of this funding comes primarily
from VC investors with minor amounts from Angel investors and government and in one case from the
Canadian Youth Business Foundation (CYBF). For one accelerator funding came exclusively from
government sources.
4.1.2

Supply and Demand

Since their inception, the surveyed accelerators have accepted a total of 102 companies to use their
services (median of 16.5 companies per accelerator). Note that most of the accelerators surveyed are
young and have only been established for a few years. The accelerators reported receiving a total 3,370
applications in 2012 (a median of 500 applications per accelerator). From these, the accelerators then
accepted a total of 83 applicants (an average of 13 companies per accelerator). Thus, demand is high
from entrepreneurs for the services provided by accelerators. Looking forward to 2013, five out of the six
accelerators intend to accept a total of 66 companies (a median of 10 companies per accelerator).

Page 29


4.1.3

Company Investment
Details

F27: Total Amount of Investment $13.65M

Of the six accelerators, four
Angels before
provided further details on
Nongrad
investments into each company
Government
3%
after grad
that was accepted into their
3%
program in 2012, covering a total
of 40 companies. Investments
Nonprior to graduation and after
Government
before grad
graduation reached a combined
5%
$13.65M and came from the
Business Development Bank of
Angels after
grad
Canada (BDC), Angels, VCs,
13%
government and non-government
sources. Note that all of the
VCs after
grad
accelerators surveyed are linked
18%
closely to BDC, which provides
follow-on convertible debenture
funding to select graduate firms of accelerators.

BDC
Convertible
before grad
1%

Government
after grad
1%

BDC
Convertible
after grad
31%

VCs before
grad
25%

The largest share of investment in accelerator-backed firms came from VC funds before and after
graduation, accounting for a total of 43% or $5.8M, followed by BDC convertible note investments after
graduation at 31% or $4.2M, and angel investments before and after graduation at 16% or $2.2M (Figure
27). The largest average investments came from VC funds after graduation at $612K, followed by angel
investments after graduation at $153K and BDC convertible notes after graduation at $145K.

Amount Invested (CDN)

F28: Average Amount Invested by Investee
700000
600000
500000
400000
300000
200000
100000
0

612,500

153,179

145,345

107,375

90,500

63,182

Investee Type

Page 30


5 Conclusions
It is important to stress again that this is not a survey of the entire Angel marketplace. Rather, the Report
provides a window into the activity level of 'visible' Angels, namely Angel groups. Nevertheless, the
following points have emerged from the survey:
1. The market of Canadian Angel groups is very young with 75% of Angel groups having been
established within the previous five years (since 2007).
2. 2012 saw a total of 139 investments totalling $40.5M compared to a total of 71 investments
totalling $35.7M in 2011. From 2011 to 2012, there was a 96% increase in the number of Angel
deals with a 13% increase in the value of these investments.
3. The highest level of activity was in Central Canada which was responsible for $33.4M of the
investments or 82% of the deals.
4. Angel investments are concentrated in three sectors: ICT ($17.9M), life sciences ($7.5M), and
clean technology ($3.2M).
5. Exits continue to emerge with a total of 8 captured in 2012: one with a negative return, two with
successful returns (with one categorized as a 'home run'), and one that was neutral.
6. Accelerators are also relatively new in Canada, and have invested a total of $13.65M in 40
companies both prior and post-graduation in 2012.

While this is the third year in which Angel groups in Canada have been surveyed to capture information
on their investment and exit activity, both the report and the community it surveys are young. There
continues to be significant scope to improve both the coverage and accuracy of data on Angel group
investment activity in future years and thereby enhance the value of this Report.

Page 31


6 Annex I: The Survey Instrument

Overview
Thank you for participating in the NACO Annual Angel Investment Activity Report.
The Survey is structured into 3 parts as follows:
Angel Group Profile
Investment Profile
Exit Profile
Your contribution will be added to those of Angel groups and co-investors from across Canada to provide
the third comprehensive yearly report on Angel investing.
Please note that all responses will be kept strictly confidential and will be analysed only in aggregate. No
individual information will be released about investors or your investments.

Survey Respondent Name
Email
Angel Group Name
City
Province
British Columbia

Ontario

Prince Edward Island

Alberta

Quebec

Saskatchewan

Nova Scotia

Newfoundland and
Labrador

Manitoba

New Brunswick

Postal Code or Address

Page 32


Part 1: Angel Group Profile
1.1. In what year was {{ Name }} established?
2012

2004

1994

2011

2003

1993

2010

... 3 additional choices
hidden ...

1992

2009
2008
2007
2006
2005

1998
1997

1991
1990
Prior to 1990

1996
1995

1.2. How many members were in {{ Name }} at the end of 2012?
0

26 to 50

1 to 10

51 to 75

11 to 25

Over 100

76 to 100

1.3. How many members made investments through the {{ Name }} during 2012?
0

26 to 50

1 to 10

51 to 75

11 to 25

Over 100

76 to 100

1.4. What percentage of {{ Name }} members are current or former entrepreneurs?
0%

26 to 50%

1 to 25%

76 to 100%

51 to 75%

1.5. Where does {{ Name }} generally make investments?

Page 33


Same City

Rest of Canada

Same Province (different
City)

World

USA

1.6. What key industry sectors does {{ Name }} generally target for investment? Please
select all that apply (hold the Ctrl key).
ICT: Software

Life Sciences:
Med/Biotech Software

Traditional Industries:
Financial Services

Life Sciences: Medical
Devices & Equip

Mining

ICT: E&M Commerce

Life Sciences:
Healthcare

Traditional Industries: Oil
& Gas

ICT: Internet
Focus/Web2.0

Life Sciences:
Bioagricultrue

Real Estate

ICT: Electronics &
Computers

Diversified Industries:
Automotive

Utilities and Pipelines

ICT: Semiconductors

Defence

New Media: Game
Development

Fisheries & Aqua

New Media: Social Media
Platforms

Tourism

Communications and
Media: Telcos

Business Products

Communications and
Media: Film

Consumer Products

Other (please specify)

ICT: Comms &
Networking
ICT: Wireless & Mobile

Clean Technology:
Alternate/Clean Energy
Clean Technology:
Hardware
Clean Technology:
Energy Infrastructure
Clean Technology:
Energy Informatics
Clean Technology: Smart
Grid
Clean Technology:
Environmental Tech
Life Sciences:
Biopharma/Drugs

Retail
Forestry Products:
Silvaculture

Page 34


1.7. How many meetings does the {{ Name }} hold per year?
0

4 to 6

11 to 12

1 to 3

7 to 10

13+

1.8. How many firms are generally discussed per meeting?
0

3

1

4

2

N/A

5+

1.9. How many business plans did the {{ Name }} receive from firms seeking financing in
2012?
0

11 to 25

1 to 5

26 to 50

6 to 10

100+

51 to 100

1.10. How many investment opportunities were selected for formal due diligence in 2012?
0

11 to 25

1 to 5

26 to 50

6 to 10

100+

51 to 100

1.11. How do you/your Angel group make investments? What is your approach to
investing?
Mostly as individuals: Based on group due diligence
Mostly as individuals: Based on individual due diligence
Mostly as a group: Members pledge funds to be invested through group decisions
Mostly as a group: Members' capital is pooled in a single fund
Both as a group and as individuals:

1.12. How many investments (new and/or follow-on) did your group make in 2012?

Page 35


0

6 to 10

1 to 5

26 to 50

11 to 25

1.13. What was the total value of investments (new and/or follow-on) made in 2012?
$0

$501K to 750K

$5.1M to 10M

$1 to 150K

$751K to 1M

$10.1M to 20M

$151K to 250K

$1.1M to 2M

$20.1M to 50M

$251K to 500K

$2.1M to 5M

Over $50M

1.14. How many active firms, for which {{ Name }} members retain an equity stake, remain
in your group's portfolio at the end of 2012?
0

26 to 50

1 to 10

51 to 75

11 to 25

100+

76 to 100

1.15. What was the total value of your group's investments in active firms at the end of
2012?
$0

$1.1M to 2M

$51.1M to 100M

$1 to 150K

$2.1M to 5M

$101M to 200M

$151K to 250K

$5.1M to 10M

$200M +

$251K to 500K

$10.1M to 20M

$501K to 1M

$20.1M to 50M

1.16. How many exits did your group make in 2012?
0

4

8

1

5

9

2

6

10

3

7

10+

Page 36


1.17. What was the total value to your group (CDN received by members) from exits made
in 2012?
$0

$1.1M to 2M

$51.1M to 100M

$1 to 150K

$2.1M to 5M

$101M to 200M

$151K to 250K

$5.1M to 10M

$200M +

$251K to 500K

$10.1M to 20M

$501K to 1M

$20.1M to 50M

Page 37


Part 2: Investment Profiles in 2012
Please provide the following information for each investment made through your group in 2012.
***NOTE: THIS SECTION WILL LOOP (REPEAT UP TO 20) FOR HOWEVER MANY INDIVIDUAL
INVESTMENTS YOU HAVE TO REPORT.

2.1. Was the investment made:
New
Follow-on

2.2. Amount invested by members of {{ Name }} (CDN):

2.3. Number of {{ Name }} members who invested:

2.4. Percent of equity received by your investors (%):

2.5. Number of co-investors who also invested (syndicated investments between your
group and other Angels, Angel groups, venture groups, etc.)?
0

6 to 10

26 to 50

1 to 5

11 to 25

51+

2.6. Type of co-investor involved in the investment. Please select all that apply:
Individual Angel Investors
Angel Investors associated with other Angel groups

Page 38


Institutional Angel Investor
Venture Capital (general)
Labour Sponsored Venture Capital Cooperation
BDC Venture Capital
Other, please specify... ______________________
None

2.7. Amount invested by co-investors (CDN)

2.8. Type of Government programs involved in the investment (select all that apply):
Investing in Business Innovation (IBI) at FedDev Ontario
Ontario Centres of Excellence (OCE)
Health Technology Exchange (HTX)
Regional Economic Intervention Fund (Quebec - FIER)
Sustainable Development Technology Canada (SDTC)
Industrial Research Assistance Program (IRAP) at the NRC
Northern Ontario Heritage Fund Corporation (NOHFC) at the Ontario Government
NSERC
British Columbia Investment Tax Credit
Other (please specify) ______________________
None

2.9. Did the company your group invested in have sales revenue in 2012?
Yes
No

2.11. Please provide the city of the company's HQ
Page 39


2.10. What industry sector does the company represent?
ICT: Software

Life Sciences:
Biopharma/Drugs

Forestry Products:
Silvaculture

Life Sciences:

Financial Services

Devices & Equip

Mining

Life Sciences:
Healthcare

& Gas

Life Sciences:
Bioagricultrue

Real Estate

ICT: Semiconductors

Automotive


Clean Technology:

Defence

New Media: Game
Development

Clean Technology:
Hardware

Fisheries & Aqua

Platforms

Clean Technology:

Tourism

Communications and
Media: Telcos

Clean Technology:
Energy Informatics

Business Products

Communications and
Media: Film

Grid

Consumer Products

Clean Technology:
Environmental Tech

Retail

ICT: Comms &
Networking
ICT: E&M Commerce
ICT: Internet
Focus/Web2.0
ICT: Electronics &
Computers

2.12. Number of Full Time Employees (FTEs) at investment stage:
1 to 5

26 to 50

251 to 499

6 to 10

51 to 99

500+

11 to 25

100 to 250

Page 40


Part 3: 2012 Detailed Exit Profiles
Please provide the following information for each new exit made by your group in 2012.
***NOTE: THIS SECTION WILL LOOP (REPEAT UP TO 10) FOR HOWEVER MANY INDIVIDUAL
INVESTMENTS YOU HAVE TO REPORT.

3.1. In what year was the original investment made by {{ Name }} members?
2012

2004

1995

2011

2003

1994

2010

... 2 additional choices
hidden ...

1993

2009
2008
2007
2006
2005

1999
1998

1992
1991
1990

1997
1996

3.2. How many rounds of investment were made by {{ Name }} members?
1

5

9

2

6

10

3

7

10+

4

8

3.3. Total amount invested by {{ Name }} members ($CDN):

3.4. Total amount of cash received by {{ Name }} members prior to exit ($CDN):

Page 41


3.5. Percent of company equity sold by {{ Name }} members (%):

3.6. Total amount of cash received by {{ Name }} members at exit ($CDN):

3.7. Method of Exit:
Sale to/merger with
another company
Sale to other existing
shareholders

Sale to new shareholders

Others

Initial Public Offering
Company ceased
operations

3.8. What industry sector does the company represent?
ICT: Software

Clean Technology:
Energy Informatics

Defence

Grid

Fisheries & Aqua

ICT: E&M Commerce

Clean Technology:
Environmental Tech

Tourism

ICT: Internet
Focus/Web2.0

Life Sciences:
Biopharma/Drugs

Business Products

ICT: Electronics &
Computers

Life Sciences:

Consumer Products

ICT: Semiconductors

Devices & Equip

Retail

Life Sciences:
Healthcare

Forestry Products:
Silvaculture

Life Sciences:
Bioagricultrue

Financial Services

Automotive

Mining

ICT: Comms &
Networking

Clean Technology:
Clean Technology:
Hardware
Clean Technology:

Page 42


& Gas

New Media: Game
Development

Real Estate

Platforms


Communications and
Media: Film

Communications and
Media: Telcos

3.9. Total valuation of the company on exit ($CDN):

3.10. Please provide the city of the company's HQ:

3.11. Number of Full Time Employees (FTEs) at exit stage:
1 to 5
6 to 10
11 to 25
26 to 50
51 to 99
100 to 250
251 to 499
500+

Page 43

Naco 2012-report-on-angel-investment-activity

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