What Angels Look For in a Company:
We prefer to invest in what we know and understand. Therefore, York Angel members typically gravitate to companies in sectors that mirror our area of expertise including but not limited to Information technology, telecommunications, internet, enterprise software, SaaS applications and retail.
When we invest in early stage companies most often they are post revenue with products that are completed or at least are post first implementation development.
Preference will be given to companies that have demonstrated that founder/friends/family capital has been extensively deployed to bring the product or service to, or very nearly to its first revenue customers. The company has not likely undertaken a capital raise beyond this insider group.
The Angels seek Financing requirements of up to $2 million.
The Management team is an important component in the due diligence process. The Angels seek management teams who have a proven and well regarded track record are preferred. Specifically, we look for a management team that has managed a business or part thereof within the industry that the investee company operates, and across the range of disciplines required to enable the business’s success.
The entrepreneurs should have a well-developed business plan including realistic pro forma financials and can articulate its cash requirements in the context of this plan through to cash positive. The business plan should clearly articulate the scope of the company’s competition and the company’s/product’s sustainable competitive advantage.
Proprietary technologies where applicable should be protected and the entrepreneur should have a commitment to continuing this pursuit.
Valuation and Exit
Founders should have a reasonable basis for valuation and a sense of the range of possibilities as to how much of the business they wish to share with new investors.
The Angels will seek a strategic and articulated exit strategy for founders and new investors.
We look for companies with a main office or base of operations located within 500kms of Toronto/York Region.