Type of Program:
York Angel Investors provides early stage start-ups with seed funding, and importantly advisors who counsel portfolio companies. They mainly invest in B2B AND B2C SAAS, IOT & ICT, Industrial Automation, Fintech, Insure Tech, CPG, Cleantech, Health Tech, Marketplace Solutions.
Comments on Funding:
The typical aggregated investment from York Angels is between $75,000 and $300,000 per round in early stage companies.
The preferred investment structures for York Angels is either preferred equity or convertible debt.
When It Ends:
Their typical Portfolio Companies (link to PortfolioCompanies) have pre-money valuations from $2,000,000 to $5,000,000 and raised between $250,000 – $1,000,000.
Pre-Screening: Applicants must apply using the Dealum platform on a rolling basis. Applications are reviewed by a select group of members and the management team based on Investment Criteria.
Screening: Eligible applicants are invited to present the company to York Angel Investors' screening committee (a subset of their membership) at their semi-monthly screening meeting. The screening meeting lasts 40 minutes, giving the applicant an opportunity to present their opportunity, followed by a Q&A session.
Investment Meeting: Applicants will be allotted 10 minutes to pitch, followed by 15 minutes of Q&A by all York Angel Investors members.
Due Diligence: If investors express interest, the due diligence process will be arranged with a Due Diligence Lead and Due Diligence Analyst. During due diligence, York Angel Investors team will verify the statements made in the applicant's business plan, presentation, and financial projections. An initial discussion of valuation and terms will happen early in due diligence to make sure the two parties are aligned.
Term Sheet Negotiation and Funding: The York Angel Investors team will then work with the applicant on finalizing the term sheet for presentation to their investors. That term sheet will define the structure of the proposed investment deal, including the type of equity, investor rights, and board of directors’ representation. When all parties are satisfied with the terms and language contained in the term sheet, the term sheet is executed, and full documentation is processed reflecting the agreed-upon terms. Funds are then transferred.
Applicants must submit a complete set of financial statements – including income statement, cash flow and balance sheet, and projections based on logical and realistic assumptions.
Other Things to Note:
- 1York Angel Investors is a leading angel group in the Greater Toronto Area (their head office is in Markham) with over 100 active members.
- 2Depending on complexity, from start to finish it can take anywhere from 2 to 4 months to get funding.
- 3All applications are reviewed within 48 hours. York Angel Investors attempt to give feedback to all applicants, but unfortunately they are unable to respond to all. Their Pre-screening Committee meets every month to select startups to be invited to their monthly Screening Meetings. If applicants have not received a response from the York Angel Investors within 25 business days, they should assume that their start-up did not pass the investment criteria.