Georgian Angels

The concept is not well known though there are now several such networks in North America, including about 30 in Canada. The mandate is investment in and education about the local 'commercialization ecosystem'. A network will fill a gap between the founding of a company and its viability. Founders often depend on family and friends to invest in what can be a high risk enterprise and they may not be able to lose their funds. Banks may even find a particular concept to risky. Angels try to get companies to a place where they can access institutional money. The Georgian Bay area has about 300,000 people which makes it viable for such a group. This is not a franchise operation - each is different due to local situations - but the purpose is to broaden the investor base in an area. Barrie has about 50% of the population base so is important but it is not pre-eminent - investors and companies can be found throughout the area. Dragon's Den helps build awareness of the power of investing but it is good theatre too and it can misrepresent the way investment works. Angels talk as much or more about being involved - they commit financial and intellectual capital and use their experience to give back to an individual industry or an individual community, depending on their skills and interests. They are not Venture Capitalists either. VC's professionally invest management money and take a fee. Angels invest their own money to help companies grow. GM and Sam's Club are not hiring nowadays - it's smaller companies that will be driving employment. They are in high tech, sustainability, health and science and information and communication. The idea is to create and sustain a partnership in the 'commercialization system' and to bring a product to market through financing and expertise. Contributions are limited by an individual's available capital but the minimum expected is $25,000.00 per year. An investor will see between 20 and 30 opportunities a year and they don't have to invest in them all. A Committee will review each opportunity - doing research and due diligence with the help of a research assistant and some contracted help from the marketing students at Georgian and the support of the NRC's industrial research assistance program. Investors have to have a high tolerance for risk but returns can be high too, potentially. These companies are start ups, they are not on the stock exchange and can't be valued. Of 8, 2 will completely disappear, 6 will survive but only just maintaining and 2 will be home runs and will provide 80% of returns. Investors need to know what they're doing but returns can be terrific. Bob thanked Sandie for his presentation and his insight into how such a program can benefit our community.