The Southwestern Ontario Angel Group (SWOAG) and the Angel One Investor Network each received $500,000 from the federal government last week to help expand their membership, increase their pools of investment funds, and provide mentoring support for early-stage companies in Southern Ontario.
Both organizations will receive funding in the form of non-repayable contributions from FedDev Ontario’s Investing in Business Innovation Initiative.
Based in Burlington, the Angel One Investor Network will use the funding to double its membership. Over the next five years, the Network’s members are expected to invest $15 million in private capital to about 50 companies. The funding will also be used to help companies prepare for investments, complete due diligence, and to develop tools and strategies that improve the process of angel investing.
Angel One Investor Network has previously received an additional $150,000 grant from FedDev, which allowed it to grow its membership from 12 to 110 registered accredited investors. To date, these members have invested more than $12 million in 43 companies. This increased activity has propelled the Angel One Investor Network to the position of leading angel group in terms of number of investments in 2013, according to the National Angel Capital Organization’s (NACO) Report on Angel Investing Activity in Canada.
Based in London, SWOAG also received funding to increase its membership from 65 to 115 members. This is expected to help an additional 40 companies secure more than $10 million in angel investment over the next five years. To date, SWOAG has made 28 investments in 13 companies for a total of $9.3 million invested.
The organization will also use the grant to support its outreach activities, develop educational tools and seminars, and improve reporting and monitoring systems.
According to NACO’s 2013 Report on Angel Investing Activity in Canada, 29 angel groups representing more than 2,100 accredited investors made 199 investments in 2013, resulting in a total investment of $89 million. The top three sectors to receive funding were information and communication technology ($28.8 million), life sciences ($20.5 million), and cleantech ($7.5 million).
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