Toronto being the capital city of the Canadian province of Ontario is a key business hub in Canada and is the center for finance in the country. It also has a strong commerce, industrial and aerospace presence. Technology companies, real estate and healthcare firms also play a large factor in Toronto's economy and business ecosystem. Toronto is also extremely popular with start-up businesses and a popular location for new company to base themselves.
The are some grants available from the Canadian government and new business owners can also find local grants, schemes and accelerators that are focused on promoting start-ups in Toronto. Generally, grants are focused on specific sectors or for businesses that meet certain requirements.
One scheme that might suit some start-ups is the Innovative Solutions Canada (ISC) which aims to help small businesses deal with technology development hurdles and to help promote products and services that are global in nature, developing the Canadian export market.
Other grants are aimed at non-profit organizations since many of these types of ventures can struggle with both start-up funding and general running costs.
Ultimately, grants can be quite specific in who they support, for example in Canada many grants aim to support regional businesses such as those in the agricultural sector. Grants can also be hard to obtain, and you must go through an application process which can take time. For many businesses it is not practical to go through this and instead they look for other options, such as angel investment.
For Toronto-based entrepreneurs that are looking for start-up fundraising there are a few options available. Aside from grants, many look to traditional early-stage investment from banks or venture capital companies. This is not always available for new start-ups without a trading history. Occasionally, an entrepreneur will split the costs with a co-founder who might be a friend or family member, but not everyone has these kinds of connections available to them. Other individuals will use their own savings, personal loans and in some extreme cases fund a business via their credit card. These are normally last-resort options since personal loans and credit card companies can charge a lot of interest on the money they lend. Another option open to the new business is to explore the benefits of partnering with an angel investor.
When it comes to entrepreneurship many new businesses are funded by individuals that may be starting their business for the first time. This can be a daunting prospect and partnering with an angel investor can be useful since they will sometimes offer business support or even mentorship alongside their financial contribution. Many angel investors are highly experienced in their field and have a lot of industry contacts that can be invaluable to the new entrepreneur just starting out. Not all angel investors work like this, some are too busy for mentoring a new business and just offer capital investment. This means for the entrepreneur (and investor alike) making sure that both parties are working with someone who has similar needs and goals is important.
This is the reason why angel networks are increasingly popular. Another reason is that these investors tend to look for early-stage companies that are hoping to launch or grow. Not only does the angel investor fill a need, but they can also help launch a business that would otherwise fail without their support. An angel investor will look at the company’s bottom line, its future potential and decide as to its valuation and what sort of equity will be required for the investment. A local area such as Toronto which has a good track record for start-ups and supporting these kinds of businesses is also beneficial and can be something an angel investor looks for.
Angel investors will still carry out their due diligence prior to making any investment decisions, but you will find that most angel investors are a little less risk adverse and understand both the potential gains and potential pitfalls when it comes to investing in a brand-new business.
A variation of the angel investor is the angel group. These groups tend to be a collection of angel investors who work together to invest in several different businesses, operating a little like a portfolio company. Often these investor groups focus on a specific sector or location, such as in Toronto. So, it would not be uncommon to find an angel group operating in the local area where a business is based.
The goal of the Angel Investment Network is to match angel investors with Canadian entrepreneurs and business founders who are looking to fund their early-stage start-ups in Toronto.
If you are an entrepreneur, you can sign-up to our investor network for angel investing, and to find angel investors and angel groups looking to invest in a business in Toronto and Canada.
For entrepreneurs looking to target outside of Toronto, opportunities can also be found in Canada's capital city, Ottawa, across Canada and further afield. As the Angel Investment Network is global, entrepreneurs and investors can connect with like-minded individuals looking to create fruitful partnerships all over the world.
If you are looking for investment opportunities, you can find start-up companies, and even established businesses that are investment ready. You can also find entrepreneurs at the concept stage, with solid business ideas that are looking for fundraising and need some additional private equity to take their projects to the next level.
Canadian Investment Network helps investors and entrepreneurs in Canada facilitate lasting and profitable relationships that build better businesses and brighter futures