Co-Investment a Hot Topic at International Angel Dinner

“Money doesn’t care what industry or what country it is found in.”
(San Diego Angel Investor)

San Diego, California – On the evening of May 8th, the National Angel Organization, the industry association representing Angel investors and Angel groups in Canada, in collaboration with the Consulate of Canada – San Diego held the first ever Canadian-International Angel Co-Investment Dinner.

The Goal: Build stronger international relationships between the Canadian and US Angel communities, discuss the state of Angel investing, trade best practices, and network to encourage foreign direct investment into Angel-backed Canadian companies and help them expand internationally with a particular focus on Southern California.

Attracting over forty Angel investors, high-net worth individuals who invest in early-stage high-risk ventures, and representatives of Angel groups from across North America and, indeed, the globe, the conversation was electric. Topics ranging from incubators, technology transfer from Universities, partnering with institutional investors, helping entrepreneurs successfully reach a liquidity event and the accessing of each other’s relationship capital networks to help grow and develop Southern California and Canadian businesses were covered.

By far the most discussed topic, however, was international co-investment between Angel investor groups in Canada and the US (specifically Southern California). Where Angel investors were once considered to invest only locally, the feedback from this group was that this was no longer the case.

As Doug Pennington, Executive Director of the Private Capital Network in Orange County stated, “Money doesn’t care what industry or what country it is found in.” In the past 12 months the Private Capital Network has hosted co-investment opportunities from the nations of Canada, Ireland, Sweden, and the UK, underscoring their commitment to explore opportunities from around the globe.

The enabling factors to co-investment were universally agreed to be that a local Angel group had invested in the opportunity, had conducted due diligence according to the agreed standards established in the Angel industry, and that the Angel group invested in and sponsoring the opportunity could monitor the local investment.

“Now that standards in Angel investing are being established and, by and large, Angels are singing off the same song sheets,” says W. Daniel Mothersill, President of the National Angel Organization, “collaboration and co-investment between Angel groups has become much easier. Angel companies are now able to raise significant rounds of financing, with numerous examples of rounds closing at levels previously reserved for Venture Capital”.

As the Angel capital industry has formalized over the last decade, with facilitated Angel groups forming across the globe, the barriers to co-investment have fallen away, creating an exciting opportunity for Angel groups and their investee companies across North America.

Angel Groups in Attendance:

Canada
First Angel Network
Okanagan Angels
Angel Forum
WUTIF Fund
Maple Leaf Angels
National Angel Organization
Saskatchewan Angel Investor Network
Newfoundland and Labrador Angel Network

US
Global CONNECT
Keiretsu Forum
Private Capital Network
Tech Coast Angels
Great Lakes Angels
Angel Capital Association
Health Advances LLC

International
Australian Association of Angel Investors Limited
LINC Scotland
European Business Angel Network
British Business Angel Association