Funding Report: Find angel funding with the Portal

The Funding Report: Issue: #54

July 17, 2012

Finding elusive angel funding on the Portal

Angel investors are by definition hard to track down, but digital tools such as The Funding Portal are making it easier than ever for businesses to find elusive private investors.

Angels are wealthy individuals or groups of investors who provide capital to early-stage businesses for ownership equity or convertible debt. Traditionally, funding provided through angel deals in Canada ranges between $10,000 and $300,000, but can be higher depending on the individual funding round.

Along with funding, angels provide early-stage businesses with knowledge and guidance, and often take a seat on the company's board. For these reasons, angels tend to invest in sectors in which they have previously worked.

Although receiving support from an angel investor may seem appealing to early-stage firms, it isn't a source of financing that is open to all types of companies. Businesses seeking investors should consider that angels expect a high return on their investment; they won't take a risk on companies that do not have strong growth opportunities.

According to the National Angel Capital Organization (NACO), there were 15,800 angel investors in Canada in 2008, significantly less than in the United States' larger market. Canadian businesses receive at least $1.9 billion a year from angel investors; in contrast, American companies benefited from an estimated $20 billion in angel investment in 2010.

Often, angels have a relationship with the company in which they are investing, either through social connections or through the community. But for early-stage business owners who are not fortunate enough to have an angel in their list of contacts, identifying potential investors can be a difficult task.

Individual angels are perhaps the most difficult to identify, but angel organizations, such as NACO and the First Angel Network Association, can help match businesses with investors. For their part, angel groups, such as Maple Leaf Angels, Ontario's leading group with 40 members, can be quickly found through an online search.

As part of its new Find It private financing search engine launched earlier this month, The Funding Portal has identified more than 20 active angel groups across Canada. The Portal's "Fundcard" design makes it easy to quickly sort through available sources of angel and other types of private funding, based on industry sector, location, and other key variables.

The Funding Portal's Find It search engine for private financing includes over 500 sources of private financing, including angel investors, venture capital, private investors and banks.

Under its Advance It service, the Portal also assists businesses to prepare their proposals for potential investors, and to create new business connections through its networks.

Weekly Digest

BC: The Government of BC unveiled a new $7-million BC Commercialization Voucher Program to connect SMEs from a variety of key sectors and regions throughout the province with cutting-edge researchers in B.C.'s post-secondary system.
CYBF: The CYBF announced an expanded partnership with CEED (Centre For Entrepreneurship Education & Development Inc.) to ensure all eligible young entrepreneurs throughout Atlantic Canada can access the CYBF program. Entrepreneurs that are interested in the CYBF program in communities across Atlantic Canada that are not currently represented by a CYBF community partner can now have their application processed at CEED in Halifax, NS.
Northern Ontario: The Government has created a $2-million business continuity fund for the City of Elliot Lake through the Northern Ontario Heritage Fund Corporation (NOHFC). The fund will help affected businesses re-open in temporary locations and put mall employees back to work as quickly as possible. It will also support priority economic development projects and will help impacted businesses find permanent homes.
VC: Canada ranked second on the Global Venture Capital and Private Equity Country Attractiveness Index by the IESE Business School.
Manitoba: The provincial government announced changes to the Manitoba Agricultural Services Corporation's (MASC) lending mandate.

Who got funded

Week of July 14-20

Federal/provincial support: $21,963,678

Sectors

Provinces

Aerospace and defence

MDA Systems Ltd.
Amount: $750,000
Location: Calgary, AB
Program: Agricultural Innovation Program
Funding Objective: Commercialization

Agriculture and agri-food

Mifarm.ag Management Inc.
Amount: $565,000, contract
Location: Richmond, BC
Program: Canadian Innovation Commercialization Program
Funding Objective: Innovation

Domaine Le Cageot
Amount: $97,538, repayable
Location: Jonquière, QC
Program: Temporary Initiative for the Strengthening of Quebec's Forest Economies (TISQFE)
Funding Objective: Facilities upgrade

Arts, culture and sports

Athletics Canada
Amount: $4,700,000 (2012-13 fiscal year)
Location: Ottawa, ON
Program: Sport Canada's Sport Support Program
Funding Objective: Capital

Fêtes de la Nouvelle-France (French)
Amount: $610,000, provincial
Location: Québec, QC
Programs: Fonds de développement économique de la région de la Capitale-Nationale, Programme de soutien au développement et à la promotion touristiques - volet aide financière aux festivals et aux événements, Aide aux initiatives de partenariat, Ministère de l'Agriculture, des Pêcheries et de l'Alimentation
Funding Objective: Capital

L'International des Feux Loto-Québec (French)
Amount: $425,000, provincial
Location: Montréal, QC
Program: Programme de soutien au développement et à la promotion touristiques, volet Aide financière aux festivals et aux événements touristiques
Funding Objective: Capital

Grands Feux Loto-Québec (French)
Amount: $350,000, provincial
Location: Montréal, QC
Programs: Programme de soutien au développement et à la promotion touristiques - volet Aide financière aux festivals et aux événements, Fonds de développement économique de la région de la Capitale-Nationale
Funding Objective: Capital

Knowledge Network
Amount: $300,000, provincial
Location: Victoria, BC
Program: BC 2010 Sport and Arts Legacy
Funding Objective: Documentary shorts

Transat Québec Saint-Malo (French)
Amount: $280,000, provincial
Location: Québec, QC
Programs: Programme de soutien au développement et à la promotion touristiques - volet Aide financière aux festivals et aux événements, Fonds de développement économique de la région de la Capitale-Nationale
Funding Objective: Capital

Festival International Nuits d'Afrique (French)
Amount: $211,438, provincial
Location: Montreal, QC
Programs: Programme de soutien au développement et à la promotion touristiques - volet aide financière aux festivals et aux événements touristiques, Fonds d'initiative et de rayonnement de la métropole, vénements nationaux et internationaux du Conseil des arts et des lettres du Québec
Funding Objective: Capital

Festival international de films Fantasia (French)
Amount: $170,000, provincial
Location: Montréal, QC
Programs: Aide à la promotion et à la diffusion de la Société de développement des entreprises culturelles, Programme de soutien au développement et à la promotion touristiques - volet Aide financière aux festivals et aux événements touristiques, Fonds d'initiative et de rayonnement de la métropole
Funding Objective: Capital

Athletics Canada
Amount: $100,000
Location: Toronto, ON
Program: Sport Canada's Hosting Program
Funding Objective: Toronto International Track and Field Games

6 arts and culture projects
Amount: $95,500
Location: Val-d'Or, QC
Program: Building Communities, Museums Assistance Program, Canada Book Fund
Funding Objective: Capital

Swimming Canada Natation
Amount: $50,000
Location: Roberval, QC
Program: Sport Canada's Hosting Program
Funding Objective: 2012 FINA 10km Marathon Swimming World Cup

Triathlon Canada
Amount: $50,000
Location: Edmonton, AB
Program: Sport Canada's Hosting Program
Funding Objective: Edmonton Triathlon Festival

Fraser-Fort George Museum Society
Amount: $15,000
Location: Prince George, BC
Program: Museums Assistance Program
Funding Objective: Travelling exhibition

Badminton Canada
Amount: $15,000
Location: Richmond, BC
Program: Sport Canada's Hosting Program
Funding Objective: 2012 Yonex Canada Open Grand Prix

Fête des chants de marins
Amount: $9,600
Location: Saint-Jean-Port-Joli, QC
Program: Building Communities Through Arts and Heritage
Funding Objective: Capital

Community initiatives

Reaching E-Quality Employment Services
Amount: $56,000
Location: Winnipeg, MB
Program: Opportunities Fund for Persons with Disabilities
Funding Objective: Skills development

ASK Wellness Centre
Amount: $54,000
Location: Kamloops, BC
Program: Skills Link
Funding Objective: Skills development

Virden Employment Skills Centre
Amount: $10,000
Location: Virden, MB
Program: Skills Link
Funding Objective: Skills development

Construction and manufactured products

Emballages Winpak (French)
Amount: $4,400,000, provincial
Location: Vaudreuil, QC
Program: ESSOR
Funding Objective: Equipment, real estate

Services de transformation Bécancour inc. (French)
Amount: $2,222,236, provincial ($600,000 repayable; $1,000,000 loan guaranty; $266,005 wage subsidy; $356,231 non-repayable)
Location: Bécancour, QC
Programs: MDEIE, Investissement Québec, Emploi-Québec
Funding Objective: R&D

Temisko (1983) Inc.
Amount: $1,177,459, repayable
Location: Notre-Dame-du-Nord, QC
Program: Business and Regional Growth program
Funding Objective: Equipment, productivity

Fabrication Delta inc. (French)
Amount: $700,236, provincial
Location: New Richmond, QC
Program: Programme d'appui au secteur manufacturier
Funding Objective: Energy efficiency

Beaulieu Plumbing and Mechanical Inc.
Amount: $164,592, provincial and federal
Location: Edmundston, NB
Programs: ACOA's Business Development Program, provincial
Funding Objective: Modernization, productivity, market expansion

L. Jeanson Cie (2001) Ltd
Amount: $122,004, repayable
Location: Amos, QC
Program: Temporary Initiative for the Strengthening of Quebec's Forest Economies (TISQFE)
Funding Objective: Productivity, equipment

S.M.P. (French)
Amount: $50,000, non-repayable, provincial
Location: Montmagny, QC
Program: Provincial
Funding Objective: Start-up funding

Tourism

Falls and Gorge tourist attraction
Amount: $1,500,000, federal; $500,000, provincial, $1,075,259, municipal
Location: Grand Falls, NB
Programs: ACOA Innovative Communities Fund, provincial, municipal

Funding Objective: Renovations

NAPA car parts 200 presented by Dodge (French)
Amount: $300,000, federal; $300,000 provincial; $100,000, municipal; $100,000, Tourism Montreal
Location: Montreal, QC
Programs: Canada Economic Development for Quebec Regions, Quebec Ministry of Tourism, Municipal, Tourism Montreal
Funding Objective: Capital

Sentier Notre-Dame, Kapatakan
Amount: $37,816, non-repayable
Location: Lac-Bouchette, QC
Program: Community Diversification program
Funding Objective: Trail development project

Transportation

Aéroport régional de Val-d'Or inc. (French)
Amount: $300,000, provincial
Location: Val-d'Or, QC
Program: Programme d'aide au transport aérien
Funding Objective: Bigger runway

Thank you

The Funding Portal thanks you for reading its weekly newsletter. Make sure to visit TheFundingPortal.com to Find It, Apply for It, Score It and Advance It.

Please note that the newsletter is also available in French and can be obtained by requesting the French version at communications@TheFundingPortal.com.

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In This Issue

Find angel funding

Weekly Digest

Who got funded

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Find It

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