Being an angel investor is more exciting, more rewarding, and more impactful than you may think.
Angel Investors play a crucial role in Canada’s business ecosystem. If you are thinking about becoming an angel investor, there has never been a better time. The National Angel Capital Organization’s (NACO) 2025 Annual Report on Angel Investing in Canada doesn’t mince words on our nation’s need for the seed capital that angel investors can provide:
“As Canada navigates an increasingly complex global environment, early-stage investment has become a strategic priority that intersects with national security, economic sovereignty, and our capacity to lead in technologies that will define the coming decades.1 … as promising Canadian companies turn to foreign investors to fill the early-stage capital gap, we risk the economic value they create being realized elsewhere.2”
I have been an angel investor since 2023. I had no idea who the angels were, or what they did when I attended my first breakfast meeting with the Angel One Investor Network in Burlington, Ontario. I had exited my own company after 35 successful years in business but wanted to remain current on innovation and technology. I listened to presentations from three different startups that morning. All three had great potential. All three needed funds to grow. I remember the energy and excitement in the room. It was infectious. By the end of that meeting, I knew I wanted to be an angel investor.
Angel meetings are motivating. I enjoy the wide-ranging conversations and members often share their own stories. Presentations from three startups are the highlight of each meeting. They include a 10-minute pitch followed by a Q&A session. Learning about new innovations across sectors is fascinating. Do we invest in every company that presents at a meeting? No. But we can usually identify startups that are ready for investment and those that need more help. I also enjoy the activity between meetings. Angels give feedback on pitches, probe deeper into a startup’s products and services, and offer future guidance based on our own experiences. For those interested in investing, follow-up meetings allow for a deeper dive in the due-diligence process. There is never any pressure to invest.
Clearing up common misconceptions about Angel Investing
It’s an exciting time to be an angel investor in Canada. I relish the opportunity to help drive innovation, economic growth, and success in the evolving entrepreneurial landscape. However, there are some common misconceptions about angel investing that can deter good candidates:
- Misconception 1. Angel investors are wealthy.
Many angel investors are affluent, but not all have large fortunes. Some angels invest small amounts from their savings, while others pool their money through angel networks.
- Misconception 2. Angel investors have extensive business and financial experience.
Angel investors come from a variety of business and financial backgrounds, while others are first-time investors. A few come from non-traditional industries. We are a diverse group, united by shared passion and purpose: supporting Canadian innovators and entrepreneurs to succeed by carefully matching funding to founders.
- Misconception 3. Angel investing is concentrated in high-tech. Some angel investor groups do focus on hot markets — high-tech, med-tech, and fintech, as examples. Other angel groups have a general interest in a wide variety of sectors that are experiencing rapid change and innovation, including food and manufacturing.
- Misconception 4. Angel investing is high-risk. Investing in a business startup can be risky. However, guided by established best practices, angel investors conduct due diligence to mitigate risks. The startup must provide business and financial plans, along with a roadmap for steady, sustainable growth and profitability. Angel investing requires patience! As investors, we would like every investment to be profitable, but we accept that we may not see a return for five years, or maybe more.
- Misconception 5. Angel investors are primarily male. Our Burlington Angel One network has a good ratio. However, we are all happy to see more women getting involved in supporting startups with capital and mentoring. As Angel Investors Ontario (AIO) pointed out in a blog post. “The issue of funding inequalities for start-ups is a well-known problem. … Women entrepreneurs, in particular, still face significant barriers, with only 17% of small and medium-sized businesses in Canada being owned by women. Women are less likely to seek debt and equity financing, and even when they do, they are more likely to face rejection or receive less funding on average than their male counterparts.”3 (Read the full blog post ) Women angel investors can help change this scenario, while keeping in mind a very positive, encouraging statistic: women-led businesses tend to outperform those led by men.
- Misconception 6. Angel investing demands a huge time commitment. The amount of time you invest is up to you. That commitment may as be little as a one-hour breakfast meeting per month. Or you may find you want to get involved in guiding startups with their pitches or attending local incubator events.
Learn More:
Interested in becoming an angel investor? Attend an angel network meeting as a guest. Ontario has 18 different angel network groups, all supported by the larger organization, Angel Investors Ontario (AIO). Visit the website to find a group meeting near you.
Outside of Ontario? To find a regional angel network meeting outside of Ontario, visit the National Angel Capital Organization (NACO) www.nacocanada.com
Additional Resource: The e-magazine, Fundedby Angel Investors Ontario is designed for investors, start-up founders, and innovators. It is available on the AIO website. Read the latest issue here.
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1The National Angel Capital Organization’s (NACO) 2025 Annual Report on Angel Investing in Canada. Preface, p. 11.
2 The National Angel Capital Organization’s (NACO) 2025 Annual Report on Angel Investing in Canada. Preface, p. 8.
3 Invest in Women, Accelerate Progress. Blog post by AIO | Mar 8, 2024
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“Canadian angel organizations have evolved into critical connectors in Canada’s early-stage ecosystem, combining capital with expertise, networks, and structured processes that help ventures progress from idea to investment. Their diverse models and collaborative approaches strengthen regional capacity and ensure entrepreneurs can access both funding and strategic support needed to scale.” – 2025 NACO Report on Angel Investing in Canada.
