The Toronto Angel Group (TAG) is an initiative of the Toronto Venture Group, a not-for-profit organization committed to bridging the gap between entrepreneurs and capital.
TAG, a member-based and member-driven organization, operates to facilitate deal flow and mitigate risk in the Angel investment community. We focus on equity investments in high growth companies based within a 2-hour travel radius of the Greater Toronto Area. Investment dinner meetings are held at least six times per year where qualified companies seeking capital make presentations. All members and their guests are accredited investors who understand the risks and potential rewards of investing in private companies.
If you are an Angel investor and are interested in becoming a member of Toronto Angel Group, please contact The Toronto Venture Group @ 416-673-8480.
Qualified Deal Flow: Our goal is to see the best companies the Toronto area has to offer. Although many apply, only qualified companies that fit the Toronto Angel Group investment criteria are presented to members. Members are encouraged to refer attractive opportunities to the TAG to enhance deal flow to all members.
Increased Capital/Diversification: One of the most significant risks of Angel investing is raising sufficient capital to allow the company to become profitable or to reach necessary milestones for follow-on investment. We help "lengthen the runway." By gathering a larger group of investors, the Toronto Angel Group enables companies to raise larger amounts of capital at the angel round. This allows our members to practice a portfolio strategy and diversify their investments without requiring any one of them to individually commit a significant amount to any one particular company.
Valuation/Terms: The Toronto Angel Group is able to consolidate local investors' deal flow and speak, via a lead investor, with a single voice. By offering a significant pool of capital and connections of interested members via an efficient process and clean deal structure, a lead investor is able to negotiate more attractive terms and valuation with applicant companies.
Networking: Events are for accredited investors only. Members have the opportunity to meet other successful local business leaders at TAG events.
Help with Due Diligence: This can be an onerous chore for the individual investor. TAG members offer a wide range of business expertise and contacts, and the creation of due diligence teams provides for division of labour.
FREQUENTLY ASKED QUESTIONS
1. What is the relationship between Toronto Venture Group and Toronto Angel Group?
Toronto Venture Group (TVG) is a not-for-profit incorporated organization that has been in operation since 1990. The Toronto Angel Group is an operating division within The Toronto Venture Group.
2. How do I apply to become a TAG member?
Contact the Toronto Venture Group @ 416-673-8480 to receive an application. All potential members are required to be:
(1) Accredited investors as defined by the Ontario Securities Commission (over $2M net worth excluding principal residence, or over $200k annual income for the prior 2 years, or over $300k combined spousal income for the prior 2 years);
(2) Recognized by the Ontario business community as having reputable business ethics.
Your application will be considered and you may be invited to attend our next scheduled Investment Dinner as a guest. Please note that you will be charged the regular dinner fee to attend and will be required to sign the accredited investor’s declaration. We believe it is in your best interest to have attended an event prior to committing to full membership.
(Please print, sign, and fax this document to the Toronto Venture Group @ 416-673-8418)
3. Why must I complete a membership application?
To maximize the chances of making successful investments, we request the assistance of members at two points in the process: (1) to help review the top candidates, and (2) to assist portfolio companies in achieving key business milestones. This may be as simple as reviewing an executive summary for five minutes and making a call to an old business contact. Or it could be as involved as detailed due diligence calls and active board participation as a lead investor. To enable the TVG support staff and TAG working committee to call on these resources when and where appropriate, completed applications are required of all members. Over time members get to know one another better through networking at Angel events. Should you prefer to be a passive investor, please indicate this on your application.
4. What are the costs of membership?
To help cover overhead expenses such as office administration, website development and maintenance, marketing and logistics support in addition to initial company screening, an annual membership fee of $1750 is charged to all individual members. Members and guests pay for their meals at the dinner meetings they attend (typically $125).
5. What size investments do TAG members make?
Most deals require a minimum investment of $25k, however some of our angels have invested as much as $2 million in one company. To lower risk and increase the chances of investing in a successful company, a diversified portfolio of 10+ angel investments made over 2-3 years is recommended. Because many investors allocate less than 15% of their investment assets toward alternative investments (like angel or venture capital investments), individuals applying for membership should have a minimum of $1 million in net investment assets.
6. Who are the current members?
We have three types of members: “Apprentice Angels” - typically cashed-out entrepreneurs who have run successful companies, sold them and are looking to invest in their next challenge; “Corporate Angels” – they actively manage a successful high growth company and are on the lookout for additional investment opportunities. “Traditional Angels” - high net worth individuals who manage a personal or family investment portfolio that includes privately held companies. All members are accredited investors and have business/investment experience.
7. What about service providers?
Membership in the Toronto Angel Group is available to accredited investors only. New members are welcome from any industry or background. However, all individuals applying for membership are required to acknowledge the organization's Rules of Membership and Conduct, which prohibit solicitation of business from fellow members and presenting companies.