May 25, 2015 – Ministry of Economic Development, Employment and Infrastructure: Ontario is making it easier for businesses that have a positive social or environmental impact, while producing a sustainable financial return, grow and succeed.
The province, in partnership with the Network of Angel Organizations-Ontario (NAO-Ontario), is launching the Impact Angel Alliance. The Alliance will encourage more investors to help kick-start promising, high-growth social ventures in Ontario. This will be Canada’s first impact investing angel network.
The Alliance will work with NAO-Ontario to:
- Raise awareness of social ventures among established angel investor groups.
- Help diversify angel group membership to help bring in more women, visible minorities, and new Canadians.
- Bring together angel groups and non-traditional funding partners to increase co-investment into social ventures in priority areas, such as community health and sustainable craft industries.
- Research emerging trends, challenges and opportunities in impact investing to reduce risk, save time and attract better opportunities.
Supporting investment in businesses that have social or environmental benefits is part of the government’s plan to build Ontario up. The four-part plan includes investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario’s history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.
- Impact Angel Alliance is inspired by a similar initiative in the United States that has successfully worked with early-stage social ventures to help raise over $180 million to date.
- Angel investors are high net-worth individuals who provide financing to start-up companies.
- About 320,000 high net-worth individuals – with a collective wealth of almost $1 trillion – are estimated to live in Canada.
- The current total Canadian impact investing market is over $5 billion. In 10 years, that number is estimated to grow to $30 billion.
- Ontario is home to over 10,000 social enterprises that employ about 160,000 people.
- Ontario is home to SVX, the first social impact investing platform of its kind in North America.