Purple Angels Angel Investor Network
Angel investing has long been an important source of financial support and mentoring for new and growing businesses bridging the gap between individual (friends and family) and institutional venture capital rounds of financing. Over the past several years, Purple Angels and this sector of the private capital market has been formalizing in response to both growing demands and complexity.
Purple Angels - Formed in early 2001, Purple Angel is a group of mostly former Nortel Networks executives. It's mission is to invest, mentor, and guide start-up companies in the Ottawa area. Given the technology and business breadth of the group, the focus is to communications and infrastructure investment.
Purple Angel governance model is not a fund per se. There is no requirement that all members must invest. However, all members commit to work with our companies and our partners as required. We believe in early stage investment with venture capital partners so that our comnpanies can focus on building their business and not be overly distracted by ongoing fund raising.
In addition to wealth creation, (the obvious) the Purple Angel vision is to "have fun, while being recognized as a unique, valuable, and influential partner in the investment community."
With "World Headquarters" at Ralph and Sons diner on Carling Avenue, the group is close to their roots. Located east of the main Nortel campus on Moodie Drive, it was the only place for early morning and late night coffee and donuts when Nortel first set up it's laboratory in the 1960's. It has come full circle and is once again the gathering place.
The most often asked question is why isn't Angel plural? The answer is that Angel is a collective noun, individuals acting as a group. It was also seen as an easy start to a conversation.
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Ottawa Ontario
Ontario Angel Networks are as unique as the private investors that make them up. Purple Angels is a group of accredited investors (sophisticated investors) who get together to review companies for potential investment. The investments can be made by accredited individuals belonging to the Ontario network or by the network itself as a limited partnership.
Some angel networks charge a fee to the entrepreneur for the business plan to be reviewed, or for an in-person presentation to be made to the "angels" group and other angel networks don't.
Learn about as many angel networks / groups in your area as possible.
Like Purple Angels, the number of organized angel groups / networks has grown in response to several factors:
- A widening “capital gap” between individual and institutional venture capital investors that has created a need and an opportunity for pooled investments
- A large increase in the number of self-made, high net worth individuals who want to be more involved in their alternative asset management.
As a result, angel investment screening by Purple Angels, is consistent when compared to other angel investment groups. Specific organizational and legal structures, however, remain varied. Most groups, including Purple Angels (Ottawa Ontario) develop their own organizational structures and processes independently. For entrepreneurs and other Ontario angel investors, the net results of this change are mostly positive. Although the models of business angel groups continue to evolve, these groups are generally better financed than ad hoc groups of individual / private investors in Ottawa Ontario.
Purple Angels (Angel Investment Network) provides an extended network that benefits both funded companies and private co-investors / other angels by providing greater due diligence, operational support and domain expertise. Business angel groups, such as Purple Angels and other groups (Ontario) can also provide a key source of qualified deal flow for venture firms - Ontario - as well as provide intermediate capital for companies with financing requirement levels between individual / private investors and institutional venture capital.
