What Do Angel Investors Do? And What Does Angel Investors Ontario Do?
Angel investors play a critical role in fueling the growth of startup businesses, offering seed funding in exchange for equity or convertible debt. Unlike venture capitalists who manage pooled funds, angels invest their own money, typically in amounts ranging from $10,000 to $1 million, with an average cheque size of $25,000. Many angel investors are retired entrepreneurs or executives who bring not only capital but also their industry expertise, mentorship, and strategic guidance to the companies they invest in. This dual support makes angel money “smart money” and a vital component of the startup ecosystem.
Becoming an angel investor in Ontario requires meeting the accredited investor criteria set by the Ontario Securities Commission (OSC). These thresholds ensure investors are financially prepared for the risks associated with this asset class, where substantial returns are possible but losses are equally probable. For those who meet the requirements and choose to engage, the rewards often go beyond financial gains—investors can support regional economic growth, engage in socially responsible investing, and provide invaluable mentorship to the next generation of entrepreneurs.
Why Angel Investing Matters
Angel investors are key players in the innovation ecosystem, offering startups not only critical funding but also the mentorship needed to navigate early challenges. Angels often invest in ventures for several reasons: diversification of their investment portfolios, potential high returns, favorable valuation terms compared to venture capital, or the satisfaction of giving back to their communities by fostering economic growth. Supporting startups also means contributing to job creation and innovation within local economies, making angel investing a unique blend of financial and societal impact.
About Angel Investors Ontario
For more than 17 years, Angel Investors Ontario (AIO) has been at the forefront of Ontario’s angel investment ecosystem, helping to build prosperity, create jobs, and strengthen communities. AIO connects and supports the 18 not-for-profit angel groups in Ontario, which collectively represent 60% of organized angel investments in Canada. These groups have fueled the entrepreneurial ecosystem by investing over $800 million into Ontario’s economy since 2007, backing founders at the earliest and riskiest stages of their journeys.
AIO drives innovation through programs aimed at fostering inclusivity and sector-specific collaboration. Initiatives include creating sub-groups like AgTech-focused angel groups, supporting women and immigrant entrepreneurs, and enhancing collaboration with organizations like the Ontario Securities Commission and the Ontario Centre for Innovation. By offering education, subsidizing tools like Dealum (a deal transaction platform), and organizing events like networking socials, education sessions, and competitions, AIO strengthens the province’s angel community and ensures that its members stay informed and connected.
For aspiring or seasoned angels, AIO offers opportunities to grow professionally, make meaningful investments, and create lasting societal impact. To stay connected to Ontario’s thriving innovation ecosystem, follow AIO on social media and sign up for our newsletter. We also suggest checking out our new publication FUNDED by Angel Investors Ontario.