Startups move fast. Investors? Well, traditionally less so.
The Capital Angels Network is working to break that stereotype by bringing an element of the fast-paced, instant investment decisions on shows such as Dragon’s Den to early stage Ottawa companies.
Starting in the new year, the CAN Pitch Award will provide collaborative funding from member angels based on the best pitches they hear at their monthly meetings. The idea is to get promising startups an initial investment quickly.
Here’s how it works:
Startups pitch to the CAN monthly member’s meeting on a Thursday (same as always)
Member angels gauge their interest based on these pitches and decide if they’d like to allocate their individual shares, each worth $2,500
If a minimum of four members signal their interest, that startup will receive $10,000 (or more) in immediate funding on Monday
Huge party (optional but encouraged)
The four-member minimum is the only limit; if 10 members in the room each want to allocate their share, that’s an instant $25,000 right there.
This award doesn’t preclude the possibility of individual members’ investments, which may follow a process of due diligence, but it’s a vote of confidence and financial boost to entrepreneurs who now have a bit of clout behind their idea.
Jane Baird, executive director of the Capital Angels Network, says the award also serves to spark member interest.
“It’ll engage those angels that now have a little bit of skin in the game,” she says.
Now that the chances of landing some angel investment are even higher, how do you make sure your pitch hits the mark? We’ve got you covered there too. We recently talked to CAN’s Laurie Davis and Rob Wood to find out what they look for in an investment opportunity.