links for 2008-11-27

• Is the time ripe for Business Angel investments in Europe? | nowEurope
  EBAN in co-operation with LBAN held their annual Winter University last October in Luxembourg.
  Over 100 participants attended the one-day event and among the topics discussed, the actual economic situation could not be left out. In his final statement Anthony Clarke confirmed that it is the right time to make an investment in new and promising projects especially as the financial markets actually do not provide better or no return.
  (tags: eban lban naco angelinvestor)

Angels of the Commonwealth Team Up

For immediate release

Angels of the Commonwealth Team Up:
Canada’s National Angel Capital Organization Signs Agreement
with Australian Association of Angel Investors

Toronto, November 26th, 2008 – The national associations for Angel investors in Canada and Australia have agreed to collaborate on a variety of activities in support of their Angel investor communities, by signing a Memorandum of Understanding that promotes exchanges of knowledge and visits.

The memorandum is intended to ”enable an international exchange of information, experience and best practice among angel investors, angel groups and angel network representatives.”  In addition to sharing information, the Australian and Canadian Angel organizations will exchange delegations and guest speakers for each others’ annual conferences, and will work together to develop bilateral contacts and common projects.

Angel investors in Canada and Australia, uniquely positioned as gateways to the vast markets of America and Asia, will benefit greatly as a result of this agreement.  Their national organizations will expand networks, multiply investment opportunities, and adopt each others’ best methods for promoting effective Angel investing in their respective countries.

“Angel investing is increasingly recognized and supported by policymakers and the public in economically competitive countries,” says Dan Mothersill, President of the National Angel Capital Organization, “Angels are becoming more effective investors through organization and formalization as well.  It’s only natural that by this time our collaborations – and co-investments – are international in scope.  This agreement is an excellent augury of the unlimited potential of people who invest their brains along with their capital.”

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About Angel investors

Angel Investors are individuals who invest their own money in start-up companies, often providing business expertise that contributes to the success of young companies. Because Angel investors typically invest at an earlier stage of growth and provide more business guidance than venture capital providers, Angel investors are key players in generating high growth companies essential to regional  economic development and Canada’s economic competitiveness.

About the National Angel Capital Organization

The NACO (www.angelinvestor.ca) is the industry association representing Angel capital throughout Canada, dedicated to promoting best practices and advocacy for Angel investors. The NACO provides Angel investors with a secure environment to network and learn from their peers, as well as the opportunity to be heard collectively on national issues.

Media Contacts

Bryan Watson
T: 416-581-0009
E: bwatson@angelinvestor.ca

W. Daniel Mothersill
E: dan@angelinvestor.ca
T: 416-581-0009

Co-Investment Summit Feedback and Numbers

First, let me thank all those who have given us feedback on our first Co-Investment Summit. It has been overwhelmingly positive from both the Angels who attended and the companies that presented.

Second, I’d like to thank Raymond Luk of Flow Ventures for his kind words about the summit and for crunching some numbers for us and posting them on his blog. We hadn’t sliced the data in this way and I thought it would be interesting to repost here.

Here is a more detailed breakdown of companies and fundraising:

• 48% were science or medical technology companies, 32% were Web and 12% were telecom based
• 72% were from Ontario, 16% from BC and the other 3 from Saskatchewan, New Brunswick and Newfoundland. Nothing from Quebec perhaps reflecting what little presence NACO has in Quebec.
• The median amount companies had already raised was $1.15 million
• The median burn rate was just below $40k/month
• The median amount sought was $1 million
• The median pre-money valuation was $5 million

To me, the most interesting figures here are the burn rate of $40k/month and the pre-money valuation of about $5 million. It would be interesting to see what the burn is for these companies 6 months from now, given the belt-tightening most were talking about at the summit. As for the median $5 million valuation, this does not surprise me, but I would caution any startup CEOs seeing these numbers that the average is likely lower, there are outliers, and please do not forget that all of these companies have significant milestones under their belts.

As for next time, we hope to see at least one company from Quebec join us given the blossoming Angel community there (i.e. Anges Quebec), Montreal Start Up, and a number of other nodes in the early-stage investor community there.

Release: Recognition of Spartan Bioscience, a Canadian Angel Capital Top 10 company

Spartan Bioscience, recognized by Angel investors attending the First Canadian Co-investment Summit on November 19th as one of Canada’s Top 10 Angel-invested companies, recently issued a news release announcing their recognition in the Top 10, as well as their receipt of the Ottawa Chamber of Commerce Ottawa Business Achievement Awards Small Business of the Year Gold Award.

Dr. Paul Lem, CEO and Founder, Spartan Bioscience, said, “We’re honoured to be recognized by our own business community here in Ottawa and also by the Canadian angel investment community, and to have these two events happen within the same week is extremely exciting for everyone at Spartan. In today’s economic climate, it’s very gratifying to be invited and recognized by the National Angel Capital Organization for our groundbreaking work in developing on-demand DNA analyzers”.

We extend our congratulations to Dr. Lem and Spartan Bioscience on their achievements and recognition, and wish them many more!

Release: Ryerson Angel Network Recognized As Pathfinder For Student Businesses

For immediate release

Ryerson Angel Network Recognized As Pathfinder For Student Businesses
Successful Graduates Can Now Invest In Ryerson Enterprises

Toronto, November 24^th, 2008 – In recognition of their ground-breaking development of the first university-led Angel network in Canada, National Angel Capital Organization President W. Daniel Mothersill presented an award to Ryerson University at the First Canadian Co-investment Summit in Toronto.  University Provost and Vice-President Academic Alan Shepard, University Advancement Vice-President Dr. Adam Kahan, and Ryerson Enterprise Institute Director Dr. Steve Gedeon, accepted the award on behalf of the University.

The Ryerson Angel Network (RAN) was formed through the Angel Network Program operated by NACO-Ontario and funded by Ontario’s Ministry of Research and Innovation.  It will allow Angel investors to fund the commercialization of innovative and entrepreneurial ideas from current and past students of Ryerson University, home to Canada’s largest undergraduate business program.

”Universities everywhere have historically enjoyed the generosity of grateful graduates,” said Mothersill. “Through the Ryerson Angel Network, the University is providing an important source of funding to both student and alumni enterprises.  RAN is a real and multifaceted growth opportunity for this university, this province, and this country.”

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Media Contacts
Bryan Watson, NACO Executive Director
T : 416-581-0009
E : bwatson@angelinvestor.ca

W. Daniel Mothersill, NACO President
T : 416-581-0009
E: dan@angelinvestor.ca

For more information on the Ryerson Angel Network, please contact Neira Hodzic at neira@ryersonangelnetwork.com.

Ryerson University Creates Canada’s First University-led Angel Investment Network

TORONTO, Nov. 19 – Ryerson University President Sheldon Levy today announced the establishment of Canada’s first university-led angel investor network, the Ryerson Angel Network (RAN), to finance and mentor innovative student-and alumni-initiated companies.

Ryerson Angel Network receives an award of recognition as the first university-led Angel investor network in Canada.

Established in collaboration with the National Angel Capital Organization (NACO), which will provide funding, training, and best practice investment strategies, the Ryerson Angel Network will consist of approximately 20 angel investors and will be administered through the newly formed Ryerson
Entrepreneur Institute (REI).

Home to one of the country’s largest entrepreneurship degree programs with nearly 15 per cent of the student population actively engaged in entrepreneurial-focused degrees or courses, research, mentoring programs or workshops, Ryerson University is recognized for fostering entrepreneurship and innovation, producing entrepreneurial-minded students and is a leader in entrepreneurial finance research.

“The formation of Canada’s first university-based angel network marks an extraordinary time in the history of bringing the country’s research and innovation to market,” said Levy. “Ryerson is proud to lead the way in
initiating this new model of entrepreneurial financing.”

As part of the increasing growth of entrepreneurship research and studies at Ryerson, the Ryerson Entrepreneur Institute was recently established to oversee RAN and to provide research, education, resources and funding programs to students and alumni starting up or expanding new businesses, non-profit organizations or community programs. Steven Gedeon, Professor of Entrepreneurship and Strategy at Ryerson’s Ted Rogers School of Management, has been appointed Director of REI.

W. Daniel Mothersill, President of the National Angel Capital Organization, was recently named a Distinguished Visiting Professor at Ryerson. “There is a widening gap in the availability of capital for seed-and early-stage enterprises due to the retreat of venture capital investment,” said Mothersill. “The creation of university-led angel networks in Canada will increase the quantity, quality, and success of angel investments and provide angels with the opportunity to invest in high-quality early-stage companies,
while also supporting and mentoring the next generation of business leaders.”

Alan Shepard, Ryerson’s Provost and Vice President Academic, is today speaking to executives from the angel investment community at the NACO Co-Investment Summit in Toronto. Said Shepard: “The creation of RAN will make a dramatic difference in the lives of Ryerson University students and alumni by greatly expanding their access to management coaching, relationship capital and angel investment capital. This model can also be adopted by other Canadian universities to increase their innovation activity.”

SpeechBobble Inc., an Internet intelligence company that monitors, tracks, and analyzes consumer conversations about brands from over 150 million sources, is the first enterprise to qualify as a high-potential investment opportunity for the Ryerson Angel Network. SpeechBobble co-founder Ryan Chong is a recent alumnus of Ryerson’s Ted Rogers School of Information Technology Management. Since its inception 14 months ago, the enterprise has grown to employ seven employees and has received $550,000 in capital.

About Ryerson University:

Ryerson University is Canada’s leader in career-focused education, offering more than 95 PhD, master’s, and undergraduate programs in the Faculty of Arts; the Faculty of Communication & Design; the Faculty of Community Services; the Faculty of Engineering, Architecture and Science; and the Ted Rogers School of Management. Ryerson University has graduate and undergraduate enrolment of 24,000 students. With more than 64,000 registrations annually, The G. Raymond Chang School of Continuing Education is Canada’s leading provider of university-based adult education.

links for 2008-11-21

• Don Dodge: It's a great time for startups – Business News (External) – Microsoft Canada News Centre
  Don Dodge launches Microsoft BizSpark program on CBC Radio.
  (tags: angel dondodge microsoft bizspark)

Canada’s first Co-Investment Summit draws Universal Acclaim

The National Angel Capital Organization presents a Canadian Angel Capital Top 10 Award to Dr. Paul Lem, CEO of Spartan Bioscience.

For immediate release

Canada’s first Co-Investment Summit draws Universal Acclaim
Courageous Investors And Successful Entrepreneurs Optimistic About The Future

Toronto, November 21^st, 2008 – Despite a shaky economy, more than 150 angel investors from across Canada and the US filled the Faculty Club at the University of Toronto to see 25 of the best angel-backed companies in the country and execute follow-on financing deals.  This full-day event was organized by the National Angel Capital Organization, the industry association representing Angel capital throughout Canada.

“In tough economic times, angels have become about the only viable economic engine for the effective commercialization of innovation,” W. Daniel Mothersill, NACO president said.  “Individually and in groups Angel investors fund about $3.5 billion in early stage financing in Canada – more then double what the VCs are doing.”

He went on to note that Canadian angel investors have become a true asset class in their own right in Canada.  “We have emerged as a highly disciplined group of investors in which our ability to mentor companies and to guide their efforts to successful commercialization is as important as our cash,” he added.

Addresses were also delivered by Dr. David Naylor, President of the University of Toronto, Alan Shepard, Provost and Vice-President Academic of Ryerson University, and Ms. Carissa Reiniger, President of the Women Entrepreneurs of Canada.

The event drew angel investors for a full day of presentations and networking.  Deals were done, commitments were made for follow-on financing, and the angels voted to hold another event in the near future.

Enrique Lopez de Mesa of Protea Inc. commented, “As an investor myself, I must say this is the most exciting event I have attended in the past 6 months – there was a real pulse about the place!  It is great to have sophisticated investors being matched up with well-vetted opportunities.  The Summit is exactly what this market needs. I give it a 10/10, or even more considering the current economic context.”

Judee Sibbitt, CEO of Comagulation Inc., one of the presenting companies, said, “After this event, I received 14 different requests for information or continued discussion, and have two meetings lined up next week already.  The process from start to finish was efficient and the event itself was well-planned and executed.  I would recommend this to any company seeking growth capital.”

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Media Contacts

Bryan Watson, NACO Executive Director

T : 416-581-0009

E : bwatson@angelinvestor.ca

W : www.angelinvestor.ca

Ontario Angel Capital Top Five Companies Recognized at the First Canadian Co-investment Summit

For immediate release

Ontario Angel Capital Top Five Companies Recognized

Ontario’s Innovation Agenda Advanced By Courageous Investors And Successful Entrepreneurs

Toronto, November 20th, 2008 – The Ontario Angel Capital Top Five Companies were selected from among Angel-invested enterprises pitching for capital yesterday at the First Canadian Co-investment Summit.  These companies, presenting to over 120 Angels and other investors attending the Summit from across Canada, were deemed “Ontario’s best early-stage investment opportunities,”  on the basis of their quality and prospects in current economic conditions.

“The commercialization of innovation is Ontario’s sustainable resource,” said W. Daniel Mothersill, President, National Angel Capital Organization.  “The Government of Ontario is unique in recognizing Angel investment as the pipeline bringing innovations to market.  Their invaluable support for Angels’ development as a distinct class of capital will lead the way to renewed growth.”

The Ontario Angel Capital Top Five Companies are:
Amika Mobile
HousAll Systems Corporation
Siamons International
Streamlogics
Well.ca

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Media Contact
Bryan Watson, NACO Executive Director
T : 416-581-0009
E : bwatson@angelinvestor.ca
W : www.angelinvestor.ca

Canadian Angel Capital Top 10 Companies Recognized at the Co-investment Summit

For immediate release

Canadian Angel Capital Top 10 Companies Recognized

Co-investment Summit Showcases Tomorrow’s Champions

Toronto, November 20th, 2008 – Angel investors attending the First Canadian Co-investment Summit yesterday from across Canada voted for the Canadian Angel Capital Top 10 Companies.  These enterprises were considered “Canada’s best Angel-backed early-stage investment opportunities”  by the over 120 investors present at the Summit.

“This is really a vote of confidence in the future by Canada’s Angel investors,” said W. Daniel Mothersill, President, National Angel Capital Organization.  “Angel investors are the only distinct class of capital left that is focused on funding commercialization by early-stage companies – our investees are Canada’s future champions and major employers.”

The Canadian Angel Capital Top 10 Companies are:
Well.ca
Signalink Technologies Inc.
Spartan Bioscience Inc.
Comagulation Inc. o/a Ambersafe
PCA Services Inc.
Sempa Power Systems
Picomole Instruments Inc.
Streamlogics Inc.
Open Ocean Systems Inc.
Amika Mobile

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Media Contact
Bryan Watson, NACO Executive Director
T : 416-581-0009
E : bwatson@angelinvestor.ca
W : www.angelinvestor.ca

NACO Chairman Andrew Wilkes Interviewed by The Globe and Mail

NACO Chairman Andrew Wilkes was interviewed by The Globe and Mail’s Report on Business section, giving advice on how to reach out for capital from Angel investors in the current economic climate, when other sources of funding for new enterprises are drying up.

Some excerpts from the interview:

“All businesses need to become more productive to survive. And the difficulty is to become more productive, that requires an investment in capital. Over the last five years, I have been advocating that governments assist technology and advanced manufacturing sectors like they do with the resource sector (mining and oil and gas) to commercialize this great Canadian resource (in our factories and labs).”

“…the National Angel Capital Organization is also profiling existing angel-backed successful companies for their next round of capital — a “co-investment event.” This is an important event that will bring more capital to Canadian companies.”

“Angel investors would like to know that the entrepreneur has a well-thought-out business plan. But they are also looking at how they can add value to the particular investment opportunity”

Andrew Wilkes

The full transcript of the interview can be downloaded below (PDF).

Enjoy!

angel-investors-to-the-rescue

Rob Koturbash of Maple Leaf Angels featured on The Frank Peters Show

Rob Koturbash, Maple Leaf Angels

Rob Koturbash (pictured left) of the Maple Leaf Angels in Toronto, Bill Payne of the Vegas Valley Angels and Steve Block of the Tech Coast Angels huddled with Frank Peters on November 11th to read the signals for angel investing this season.

In this show, Rob reports an increase in funding applications, while his Angel investor members are proceeding more cautiously, in light of the shaky fundamentals of the economy.  The emotional impact of recent developments is discussed in this not-to-be-missed episode of The Frank Peters Show

Show #197 (51:07)- Download here

links for 2008-11-16

• W. Daniel Mothersill, Serial Entrepreneur and President of the National Angel Capital Organization, Joins the Ted Rogers School of Management at Ryerson University
  The National Angel Capital Organization’s very own W. Daniel Mothersill was recently appointed as a Distinguished Visiting Professor at Ryerson University (Toronto, ON).
  (tags: danmothersill ryerson ran angel angelinvestor)

NACO President Appointed as Distinguished Visiting Professor at Ryerson University

The National Angel Capital Organization’s very own W. Daniel Mothersill was recently appointed as a Distinguished Visiting Professor at Ryerson University (Toronto, ON).

Ken Jones, Dean, Ted Rogers School of Management had this to say about Dan’s appointment:

“Daniel Mothersill’s dedication to promoting a culture of entrepreneurship in Canada is a great fit for the entrepreneurial-focused Ted Rogers School of Management.  The appointment gives management students the opportunity to benefit from Daniel’s vast experience in mentoring entrepreneurs and commercializing innovation. He brings further relevance to our entrepreneurship degree program and expands our connection to the capital investment community.”

Further significance of Dan’s new position (relating to Angels) will be revealed next week!  Until then, enjoy the full article at: http://www.ryerson.ca/tedrogersschool/mothersill.html

Neira Hodzic and W. Daniel Mothersill

links for 2008-11-13

• Cash panic sweeping VC industry – The capital calls problem – NYTimes.com
  Reports are growing that the financial crisis is hurting large investors that have traditionally sustained the venture capital industry. Increasingly, some of these institutions are having trouble meeting their commitments to VC firms. VC firms typically make “capital calls” to these investors whenever they need more money to pump into their startups. However now rumors are circulating that Columbia University’s endowment fund is illiquid — that is, it can’t raise the cash it needs to fund current commitments.? Harvard, meanwhile, is reportedly trying to sell a third of its private equity portfolio at a steep discount in a “secondary offering.”
  (tags: angelcapital vc venturecapital)

links for 2008-11-10

• Hyperbio » Blog Archive » Geoff Entress, Seattle’s Prolific Angel Investor, on why startups fail
  Toronto-Based Idee CEO Leila Boujnane notes Geoff Entress, Seattle’s Prolific Angel Investor, thoughts on why startups fail.
  (tags: idee angelinvestor geoffentress angel investor)

Summit Video Sessions Available Online

At this year’s National Angel Summit, the National Angel Capital Organization had the benefit of working with a professional film team to capture the content-rich sessions at the event.

All of the video sessions are now available online at http://www.angelinvestor.ca/2008_Summit_Content.asp

Please note that these are the full sessions and not highlights.  For those who like their content in more bite-sized formats please know that we are in the processes of editing down some of the content.

Finally, a big thank-you to Golden Coast International Inc. for their hard work.  For more information on their services, please visit their site at http://www.GoldenCoast.ca

Panel on Building International Co-investment Networks

Angel Links for 2008-11-02

• What Motivates an Angel Investor to Join an Investment Group?
  SPEC Talk Radio: Each angel investor group offers different benefits to high networth individuals that understand the benefit of investing in early stage companies. Understanding their motivation helps entrepreneurs decide which groups to pursue as help those building angel groups understand how to attract members.
  (tags: angelgroup angelinvestor motivation LPfund structuredgroups infromal)