Benefits
Becomming part of an organized angel group as many advantages over doing individual angel investments. Benefits include:
Screening – Maple Leaf Angels has a full time managing director that oversees deal intake and vetting down to the best few that present at our meetings. This allows members to only see the quality deals and not be inundated with having to screen deals themselves.
Due diligence – If a company receives interest from our group, interested members form a due diligence team. Our members collectively have a diverse background that can be taped into in order to evaluate a deal. By participating in a group due diligence effort, angels can be more confident of investing in industries they do not have a background in as chances are somebody on the team has deep experience in the company’s industry.
Syndication – Investing as part of a group of angels (our deals typically have between 5 and 10 angels participating) allows our members to diversify across a portfolio of companies. Instead of making big bets on 1 or 2 companies, member’s capital can be spread across 8 to 12 deals to invest in a portfolio approach.
Co-investment – Maple Leaf Angels participates in co-investment deals with other angel groups in Canada. This allows our investors to take advantage of due diligence and knowledge gained by other angel groups in working with their companies to participate in follow-on financings required.