Angel investors are individuals who invest their own capital in fledgling businesses, both in the technology and non- technology areas. Professor Riding s research also indicates that, historically, most angel investors seek to invest close to home within a 200-mile radius of where they live. The roundtable discussion focused on the nature and importance of angel investment in Canada, the level of Canadian angel investment activity, particularly compared to the United States, the factors currently inhibiting angel investment in Canada, and policy initiatives that would strengthen Canadian capital markets in this area. The following is an edited transcript of the roundtable, beginning with a list of the roundtable participants. Jeff MacIntosh Toronto Stock Exchange Professor of Capital Markets, University of Toronto Faculty of Law, and Associate Director, University of Toronto Capital Markets Institute.
Angels fill the capital gap between family and friends financing and venture capital.
But, more than that, angels provide money to the sectors in the business landscape where the need is the greatest. It used to be said that, in Canada, technology firms could not access capital, that new firms could not access capital, and that new technology firms had a terrible time. It is in this context that angels are crucial. They have had, and will continue to have, a fundamentally important role in identifying and financing business in the highest growth sectors. The best angels bring contacts and experience to help technology companies identify customers, get the professional services they require, prepare for later rounds of financing and so on.