Angel investors in Canada are individuals who invest their own money in early-stage Canadian companies, often through regional angel groups. Most private investments are made under securities exemptions such as the accredited investor rules, and several provinces offer tax credits to investors in eligible small businesses.
Canada has an active angel community, with angel groups in most major cities and a national association, the National Angel Capital Organization (NACO). Many Canadian angels invest alongside government-backed programs and later-stage venture funds.
PitchStreet lists Canadian investors and Canadian ventures seeking capital. The profiles below are from members who list Canada as their location.
Who can invest: the accredited investor rules
Private companies in Canada usually raise money under exemptions in securities law. The most common is the accredited investor exemption. For individuals it generally covers people with financial assets over $1 million, net income over $200,000 ($300,000 with a spouse), or net assets over $5 million. Other exemptions cover friends, family and business associates, and offering memorandums in some provinces.
Rules differ between provinces and change from time to time, so have a Canadian securities lawyer review any raise.
Programs that help Canadian startups
- Provincial investor tax credits, such as British Columbia's small business venture capital tax credit, which reward angels for investing in eligible companies
- The federal SR&ED program, which gives tax credits for research and development spending
- Regional angel networks and accelerators in cities such as Toronto, Vancouver, Montreal, Calgary, Ottawa and Waterloo
- Government-backed funding and loan programs for small and growing businesses
