Investment Criteria


Management Team

We look for teams with high-quality entrepreneurs that have a track record of leadership and performance – either in the company’s specific industry or in prior entrepreneurial ventures. We also look at your team’s passion for and commitment towards the new business idea. We consider the latter alongside your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As we will be working together as partners, your team’s credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by angel investors.

Investment Sectors

Anges Québec is looking for innovation companies in the following sectors:

  • Clean Technologies
  • Industrial and Manufacturing
  • Innovative Services
  • Internet, Information and Communications Technologies
  • Medical Devices
  • Optics and Electronics
  • Real Estate (new)
  • Retail and Distribution

Market            

We invest in solutions that address major issues for significant and large target markets. There are plenty of great business opportunities but not all businesses will generate returns that justify angel financing.

Use of Proceeds

Funds must be used to accelerate your company’s achievement of key milestones that increase the company’s value. This includes research and development operations, particularly at the marketing stage, and hiring key executives.

Growth Potential

We look for companies that can develop quickly and that can efficiently manage their growth and profitability. Your company must propose a plan to generate significant profits and must have a strategy to achieve multiple sources of revenue or to develop a performant commercialization approach. We also require well-conceived financial projections, based on sound assumptions, demonstrating consistent profits and cash flow growth.

Competitive Advantage

Your company must have some proprietary features that distinguish it from potential competitors or provide strong barriers to entry that prevent other companies from capturing your customers with one or more similar offerings. Attributes that convey competitive advantage include intellectual property protection, exclusive licenses, exclusive marketing and distribution relationships, strong brands, key personnel (i.e. knowledge and skills), and access to proprietary materials.

Compatibility

Our members, all accredited individual investors, have significant executive experience in a variety of fields. One of the benefits of working with angel investors is the active coaching and network of contacts that such investors can provide. As such, there must be compatibility between the Anges Québec members and your project.

Innovation

We prefer to invest in innovative companies. It is one way to garner a competitive advantage while meeting the needs of the marketplace and following your company’s strategy. We look for must-have products or services. Also, we approach highly complex, esoteric technologies with caution. The concept behind the innovation must be proven and demonstrable. Note that we avoid science projects that don’t have a clear path to commercialization.

Exit Strategy

Our members seek significant returns when they support a business project. This level of return on investment is essential due to the high risk and the likelihood of failure among early stage ventures. Therefore, a clearly articulated exit strategy of how angel investors will obtain such returns, with financial needs detailed for each step of the strategy, is essential. Angel investors are not just interested in the strategy you select, but more importantly in the “how”; the operational strategy must show specific steps you will take to achieve the exit.

Additional Specific Characteristics Related to a Real Estate Project:

Project size:

  • Between $5 and $25 million

Minimum promoter commitment:

  • 5% of the total project value

Real Estate Products:

  • Residential Condominiums
  • Multi-residential Rental
  • Offices
  • Industrial
  • Retail

Territory:

  • Across Quebec

Investment Duration:

  • 2 to 6 years, usually 2 to 4 years

Anges Québec’s Requirements Relating to Real Estate Promoters:

Expertise in project development and construction:

  • Minimum of 5 years of experience in terms of projects development, obtained from an experienced developer
  • Minimum of 5 years of experience as project manager in the construction industry
  • General knowledge of regulations (zoning, environmental law, etc.)
  • RBQ Contractor license
  • Having alreay realized (as promoter) a construction or development project – an asset

Credit Rating

  • Strong credit references, both at corporate and personal levels

Market – project – team

  • The promoter must demonstrate that he or she understands the market and that the project can fit into its environment
  • He or she will also demonstrate that he or she has the ability to complete the project and can work with a team