By Liam Verster

Investing in local start-ups

Establishing an Angel Investor Network in Grande Prairie the goal of new partnership

Jun 17, 2021 | 1:55 PM

The City of Grande Prairie has partnered with the National Angel Capital Organization (NACO) to establish a local Angel Investor Network that will help support start-up businesses and initiatives.

Angel Investors are individuals with the financial means to support pre-revenue start-up companies as they look to transition from the idea-stage to the commercial-phase.

Through this partnership, the City’s Economic Development Department is facilitating an online information session open to potential and existing Angel Investors as well as entrepreneurs, hosted by NACO, who will show their ‘Angel 101’ presentation.

“It’s really an information session for potential angels and for entrepreneurs looking for capital, it’s really an information session on how to get involved with the National Angel Capital Organization, how to get involved with an Angel Network,” says Chad Sheldon, Economic Development Officer for the City.

“It’ll speak to the benefits of becoming an Angel Network, and it’ll speak to the benefits of an entrepreneur working with an Angel Network and an Angel Investor.”

The online information session will go on June 24 from 12 p.m. to 1:30 p.m. In order to get involved, people can register through the NACO’s website. Along with introducing the concept of an Angel Network to the region, the information session will feature a short question and answer period and testimonials from experienced Angel Investors.

The goal of this partnership is to form a local Angel Investor Network which, once in place, can invest in start-ups and ultimately boost the local economy.

“The benefit of a local Angel Network really is keeping the start-up companies who require angel investment, angel capital, it keeps those start up companies in the Grande Prairie region,” says Sheldon.

“I think the short-term benefits of this information session is going to be the initiation of an Angel Network and formalizing a founding group of people, and then there’s always the opportunity at all times to grow that network and bring in more Angel Investors, which then provide the ability to fund or finance more start-up companies.

“The biggest benefit of a local Angel Network, asides from keeping start-up companies local and utilizing local services, it encourages entrepreneurship within the Grande Prairie region. When those start-ups know that there is access to local capital, it encourages entrepreneurship and it encourages people to take the risk with a new start-up in the region.”

The network would see local investors work together to decide what sort of companies they want to support, and then move forward depending on what opportunities present themselves.

Along with providing a financial benefit, the Angel Investors will be able to provide other resources, such as connections and experience and knowledge, which could also help the start-ups grow. Having local businesses start in Grande Prairie and then build up in the region also creates job opportunities and benefits other local professional industries, like manufacturing and goods producers, as well as services like law and accounting firms.

If established, the local Angel Network would also become a part of NACO, who can help with all the background work such as the due-diligence process, reaching legal terms, and administration work.

The City’s role in this is just facilitating the initial information session, and Sheldon says there is no cost to the City involved in this process.