The National Angel Capital Organization, which represents angel investors from across Canada, is on an offensive to increase investment in Atlantic Canadian startups, and is already working with a few.
NACO earlier this month completed the NACO Academy Roadshow, which held stops in each Atlantic province, taking in about 250 participants. And the group will hold its Atlantic Regional Summit in Halifax next week.
The organization wants to help wealthy individuals on the East Coast learn about angel investing and support young high-growth companies. It also wants to help local companies raise capital from local angels and those in other parts of Canada and other countries. In fact, CEO Executive Director Yuri Navarro said investors outside the region are now reviewing term sheets of three to five Atlantic Canadian startups.
“Our goal is to ensure there are opportunities, not for competition for capital, but for collaboration among partners and for funding for the long term,” said Navarro in an interview. "We want to make sure startups have access to the local capital on the ground and then can link up with the national and international funding community.”
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For more than a decade, the group that has gathered together angel investors across the region and organized investments into startups has been the Halifax-based First Angel Network. FAN was also affiliated with NACO, hosting its national conference twice and serving on its board.
Navarro said there’s been a “difference of opinion” between FAN and NACO, so the national organization is now undertaking its own initiatives to develop the funding in the region. He added there is “no ill will” between the organizations.
In the past month, NACO has organized day-long seminars and information sessions in Halifax, Fredericton, Moncton, Charlottetown and St. John’s. Navarro said there were really good turnouts in Fredericton (in spite of the flood) and Halifax. Of the 250 people who showed up at the events, he estimated about 50 of them were potential angel investors. To help organize the events, NACO contracted Sally Ng, the head of The Triple Effect in Fredericton.
The format involved both instruction on strategies, benefits and pitfalls of angel investing, and an opportunity to discuss the successes of some Atlantic Canadian companies that have received funding.
There will be similar discussions at the Atlantic Summit, which will take place May 28 and 29 at Pier 21 in Halifax. (You can register here.) Last year, NACO held its first Atlantic Summit in Moncton.
“The purpose of the event is to help the community to share their experiences (both successes and failures) and to learn from each other as a way to drive regional success for Atlantic Canadian entrepreneurs and investors,” said Navarro. “This includes celebrating home grown regional success stories on both days.”
Navarro said he’s told that Atlantic Canadian companies and investors don’t feel comfortable celebrating their success, so the Summit will discuss some of the companies that have thrived here.
“There’s a lot of work that needs to be done in engaging the successful business people in the region in supporting the startups,” he said. “If we can show success and showcase the companies in Atlantic Canada that have generated good return for investors, whether it’s GoInstant or Radian6, . . . I think that that is very valuable.”