A well-known investment platform is launching new services in the country.
AngelList is officially launching Angel Funds in Canada. This new service is one of the easiest ways for citizens to start and run a venture fund. Interested parties can use Angel Funds to inject their own capital quickly and privately into startups, all of which have been sourced and scrutinized by experienced investors.
Throughout the U.S., AngelList has launched over 100 separate Angel Funds, supplying over $100 million USD in capital.
The idea behind a service like AngelList is to bring several new investors together and introduce them to a seasoned vet who can guide them (and their money) to the right kind of partner.
Investors with previous experience can apply to AngelList to lead a new Angel Fund here in Canada, but only if they have a proven track record, a vision to invest, and a validated method to add value to any company they invest in. Once approved, that Angel Fund leader will get access to the AngelList platform to help raise capital and discover thousands of potential startups to invest in.
Several prominent Canadian companies have received investments from AngelList syndicates. Unsplash recently raised $7.25 million with help from the Hack VC syndicate; ChefHero raised $12.6 million with participation from the Precursor Ventures syndicate; and Drop raised $25.8 million.
AngelList also shared some data regarding their Canadian impact to date. They started investing back in October 2016 and have since made 55 investments worth over $17.5 million. Over 90 per cent of that capital came from outside of Canada as well, showing a definitive international interest in the Canadian startup ecosystem. Venture capital funds like Greylock Partners and Founders Fund have co-invested with AngelList as well.
Angel investing had a record-setting 2017 in Canada as groups made 505 investments in total, worth $162.6 million. In addition, firms like Brightspark and Richardson GMP are working together to make angel investing accessible to more Canadians.
“Growth capital, especially angel investment, is vital to Canada’s innovation ecosystem and our competitiveness on the global stage,” said Navdeep Bains, Minister of Innovation, Science and Economic Development Canada, said earlier this year.