NACO President W. Daniel Mothersill podcasted by Report on Business

On December 19th, our President, W. Daniel Mothersill, was podcasted through the Business Incubator section of The Globe and Mail’s Report on Business.  In this podcast, Dan brings us up to date on the state of Angel investing in the current economic climate, explains why Angel-invested companies do a bit better than others, and advises entrepreneurs to share in the financial risk alongside their Angels, while bootstrapping and controlling expenses as much as possible.

This is a good ten minutes to put on your iPod, especially for anyone who wants to know about Angel investing and starting up a business at this stage of the economic cycle.

links for 2008-12-20

• Angel Investor Slides
  A good slide on slide #4 – How things have changed in the current economic climate.
  (tags: angel slideshow)

Happy Holidays from NACO!

Business Plan Competitions: A Bank of Opportunity

Michele Romanow of Evandale Caviar

The young co-founders of Evandale Caviar, Ryan, Michele, and Anatoliy, are veterans of business plan competitions, having won the top prize at contests hosted by the University of Toronto, Boise State, Ivey School of Business, University of Nebraska and their alma mater Queen’s University.   Methodical in their efforts to triumph at all such competitions they could enter, these budding entrepreneurs attribute their early success to the discipline and the creative ferment these competitions provided.

Competing their business plan allowed them to refine their model in a safe environment, gain exposure to investors, make contacts, and garner support from judges and service providers.  Nothing compares to the abundant encounters fierce competition provides, when seeking a variety of resources for immediate benefit to a budding enterprise.

They likewise describe the development of their company as “an organic discovery process”.  They considered over two hundred possibilities, involving countless visits and calls to industry experts and fellow entrepreneurs, as they came ever closer to the conclusion that the environment and food were two sure bets for the future.

Evandale Caviar is a great example of people who tested themselves against the best of the best, and found opportunities among true peers as a result.

Ryerson University publicizes recognition of the Ryerson Angel Network

From the news and events section of Ryerson University’s website, December 15th:

Ryerson University has established Canada’s first university-led angel investor network, the Ryerson Angel Network (RAN), to finance and mentor innovative student- and alumni-initiated companies.

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).

“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 President Levy. “Ryerson is proud to lead the way in initiating this new model of entrepreneurial financing.”

To read the rest of this release, go to the Ryerson University website.

The Times of London Excoriates Dragon’s Den

In today’s Times of London, entrepreneur William Flatau looked into the BBC’s version of Dragon’s Den, the television show where entrepreneurs are cross-examined, often humiliated and occasionally funded by a group of panellists.  He found the deal closing rate was not as high as portrayed, and that the show has “angered real Angel investors” in the United Kingdom.

Bill Morrow of the Angel’s Den investor network provides a summarizing quote in this article: “Dragons’ Den is bad for the industry because entrepreneurs are terrified of talking to equity funders. When they get to meet investors they are surprised to find that angels are human beings and not covered in scales.“

Sympatico MSN columnist: Angels can help startups in troubled times

Bruce Waynewright, a columnist with Sympatico MSN Business News, has noted that Canadian Angel investors are banding together and helping businesses raise capital in tough times in an article published December 3rd.

Scott MacCannell of York Angel Investors, one of the groups formed through the Angel Network Program of National Angel Organization – Ontario, is quoted in the article, and the role of the National Angel Capital Organization (formerly the National Angel Organization) in supporting Angel group development is highlighted.

Worth a read!

MSN Small Business Name-drops NACO

An article from MSN Small Business recently mentioned the work of the National Angel Capital Organization (NACO) and that of York Angel Investors.  The article, titled “Angels and Dragons”,  supports the notion that Angel investment will play a key role in helping some entrepreneurs find funding in today’s tough market conditions.

For the full article, and some interesting insights on what the market has in store for everyone in 2009, please click here.

Ed. note: Please be advised that the National Angel Capital Organization is in no part related to, or associated with the show “Dragon’s Den.”  According to NACO definition, the term “Dragon” is not interchangeable w/ “Angel (investor)” and has different connotations when referrenced in the above article.

Permjot Valia on the Frank Peters Show

Our good friend from California, Frank Peters, recently interviewed our other good friend (from England), Permjot Valia, on The Frank Peters Show.  Needless to say, they engage in some great Angel discussion which can be heard here: http://www.thefrankpetersshow.com/podcasts/myWimpy.html

Both Frank and Permjot recently spoke at the 2008 National Angel Summit and both contributions added immeasurable value to the preeceedings.  Again, we would like to thank them for their support over the past year and look forward to working with them on future collaborations!

Don’t forget to subscribe to The Frank Peters Show on iTunes !

Permjot addresses the delegation at the 2008 National Angel Summit

links for 2008-12-11

• globeandmail.com – VenGrowth halts redemptions
  VenGrowth I, which was started in 1995, lost 39 per cent for the year ended Nov. 30, and has an average annual loss of 5.8 per cent over 10 years. VenGrowth II, which opened in 2000, shed 26 per cent over one year, and has posted an average annual loss of 9.8 per cent over five years.
  (tags: vengrowth vc)
• Angel Co-Investment Summit Roundup : : FLOW Ventures
  Last week’s Angel Co-Investment Summit, put together by the NACO, was one of the best investment forums in recent memory. Over 150 active Angel investors (yes, you read that number correctly) heard pitches from 25 companies who had already raised Angel funding.
  (tags: coinvestment nacosummit naco)
• National Angel Organization Summit – Roundup : : FLOW Ventures
  I attended the NAO Summit recently in Halifax and was encouraged by the number of Angel investors who not only took the time to attend the event but were bullish about investing in startups. I met some Angel groups I knew about and some I have never heard of.
  (tags: NACOsummit angelgroup angelcapital nao naco)

National Angel Capital Organization now a Network Partner in the Microsoft BizSpark Program

The National Angel Capital Organization just signed on as a Network Partner in an exciting new program called Microsoft BizSpark.  It’s specifically designed to help us put promising technology startups on an even faster track to success.

Through BizSpark, we can now offer technology startups fast, easy access to current,   full-featured  Microsoft   development  tools  and  platform technologies, as well as production licences to develop and bring innovative and interoperable solutions to market.  The program can also provide you with global visibility to potential clients, investors and partners.  As a technology startup executive, all you need to do is join.  It only takes a
few minutes, you get almost instant access to the software, and your only obligation is to pay Microsoft a small fee (USD$100) due at the end of the three years (or end of participation in the program).  It’s a fantastic deal that we’re very excited to offer.

To join BizSpark you’ll need sponsorship from a Network Partner.  We’d be delighted  to sponsor your technology startup and help accelerate your success.  Please visit our website and learn how to get started. In particular, we invite Angel investors to encourage their companies to come to our website and register for the program.

Gwyn Morgan in today’s Globe and Mail – support Angel investing!

Today in The Globe and Mail’s Report on Business, founder and former CEO of EnCana Gwyn Morgan discussed what the government is or should be doing in response to the economic crisis, in an article titled:  “Should terminally-ill businesses get their bailouts?“

A key passage from that article says, “This is a very difficult time for startup ventures that contain the seeds to grow into a Canadian global success, a prime example being Research In Motion. After risking savings, mortgaging their house and tapping out friends and family, entrepreneurs often turn to other individuals for capital. Such persons are called angel investors, perhaps because putting seed money behind business plans that are little more than an idea and a prayer requires an act of faith. Unfortunately, Canadian personal tax law provides investors with as much incentive to fund these high-risk startups as for buying zero-risk government savings bonds. This needs to change immediately.”

Hear, hear!  In our submission to the House of Commons Standing Committee on Industry, Science and Technology, we outline several options for providing investors with just such incentives:  the Innovation and Productvity Tax Credit, a National Angel Network Program, and a National Angel Co-investment Fund.  Each builds upon the work done to support Angel investing and sunrise industries elsewhere in Canada and in the world.

Angels are very deserving of this support.  They do not seek handouts, but they do face greater risks than most, by directly investing their personal net worth into companies going in new technological directions.  The results can be substantial from an econometric point of view alone:  according to the Center for Venture Research, in the United States last year, there were 258,200 Angel investors investing $26 billion in 57,120 new ventures to create over 200,000 new jobs (3.3 per enterprise at the time of investment).  A tiny fraction of Canada’s Angel capital, yielded in public incentives, would leverage far more for our economy than any bailout, dollar for dollar.

We applaud Mr. Morgan for being one of the very few commentators we have found, in this economic crisis, calling for support for sunrise industries and for new investment.