In recent years however, there has been a shift towards earlier stage financing by investment firms. Angels are successful entrepreneurs who are keen to invest some of their newly acquired personal wealth in promising new ventures. They stand out from all other funding sources because they know what it takes to build a successful business and they are investing their own capital - not other people's money. High technology clusters in Ottawa, Kitchener-Waterloo, Calgary, and Vancouver are all endowed with this new resource. It has already provided millions of dollars in capital to entrepreneurs.
Angels are a godsend.
They not only provide financial support but much needed mentoring and coaching. They also take more risks. Other than doing some background and reference checks, they rely on their instincts. And they do deals quickly. If they don't like a deal, they won't string you along by asking for a business plan or more details.