The National Angel Capital Organization (NACO) serves Canada’s angel investor community, with a mission to scale up its size and scope. To that end, it is set to release a report on the state of angel investing in Canada. While I don’t know what this report will say, I can guess it will argue investing levels are not even close to where they need to be to allow Canada to advance its early stage entrepreneurial investment opportunities.
I’ve financed hundreds of startups both as a dragon on CBC’s Dragons’ Den and on my own. After 55 episodes of the show, I had made more than 60 deals and negotiated 31 signed contracts, which I am told is twice as many as any other dragon anywhere.
Why am I willing to jump in on pitches that others often snub? Here are eight principles I follow that can help increase the quality and quantity of angel investing opportunities in Canada:
Look for a reason to say yes. Many potential investors look for every reason not to do a deal. They can be hyper critical and offer very little in terms of useful or constructive feedback. I believe these people lack confidence in their ability to choose winners over losers, and they see the potential dangers of saying yes as greater than they really are.
Focus on people first. My approach to investing is focused on reading more than a balance sheet. I’m pretty good at reading people. I am looking for people who know their stuff, who are 100% trustworthy, and who are willing to work hard. Those are the people who are usually going to make a profit. Sounds like a pretty easy combination, but it can be hard to find. When I think I see it, I usually make the deal.
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