A group of seasoned investors and entrepreneurs will launch a new angel investment group in Halifax today with a pledge that they will not charge companies any fees to pitch to the group.

Having already attracted about 30 investors, Atlantic Angels will hold its first meeting this month and has identified several companies that could win investment from the members. The group is now being led by a loose steering committee and the key organizers include Volta Executive Director Milan Vrekic and Permjot Valia, the London-based founder of MentorCamp.

The thinking behind Atlantic Angels is that more wealthy people should be brought into the community, shown investment opportunities and educated in the ups and downs of investing in startups. By charging neither the company nor the investor, the group hope to improve efficiency in investing and attract more investors.

 “What this is all about is founder-friendly funding,” said Shawn Carver, Moncton, Co-Founder of the NextPhase training seminars and Fiddlehead Technologies. “It’s a sign of the maturity of the deal flow in the region that we can supply enough deals for an additional investment group.”

The pay-to-pitch model of angel funding became controversial in the region in February when the tech publication Startup North protested that the established First Angel Network charged companies to pitch to its members. Since then, people within the startup community have been working at setting up an alternative to FAN.

“We want our companies to succeed,” said Valia in a statement. “We believe that every dollar we take from the entrepreneur is a dollar we take from their chances for success. . . . So we decided to take none!”

Companies have to pay $3,000 and about 8 percent of the funds raised to pitch to FAN, which Startup North said is unfair to the entrepreneurs who need capital to develop their business. Co-Founders Ross Finlay and Brian Lowe have countered that FAN, which has almost 100 members, had channeled as of February $9.5 million into 23 companies. Including co-investments, these companies raised $70 million and employ 165 people.

Trevor MacAusland, executive director of Launch36, said in the statement that startup capital in Atlantic Canada is limited and having access to “smart money” (meaning investors who bring expertise and contacts as well as capital) will help the region’s startups tremendously.  

The Atlantic Angels group is looking for more members, who will almost certainly have to be accredited investors according to Canadian securities laws. That means basically they have to have at least $1 million in financial assets, or earn at least $200,000 a year as an individual or $300,000 as a married couple.

The new network is already affiliated with some of the leading groups developing tech companies in the region, including the Volta startup house in Halifax and the Moncton-based tech accelerator Launch36. Carver said the group contacted him to spread the membership in New Brunswick, and because of his affiliation with Launch36.

As well as FAN and the new Atlantic Angels group, the other leading Atlantic Canadian groups channeling money from wealthy individuals into startups are Saint John-based East Valley Ventures and the Newfoundland and Labrador Angel Network.

The first meeting of the Atlantic Angels is scheduled for Oct. 22.