FAQ


Investment Criteria

Do members of Anges Québec sign confidentiality agreements?

Anges Québec members do not sign any agreements.  However, they are aware of the importance of respecting the confidentiality of sensitive information. We do not consider it necessary to reveal all the confidential information in relation to your business project at the first meetings with Anges Québec.

How do you select the projects to be presented at meetings?

First, Anges Quebec will study the submitted business plan.  When we find it interesting, a meeting is arranged with the entrepreneurs.  Following this meeting, we decide to invite certain entrepreneurs to come present to our angel investor members at one of our monthly angel meetings.

What is Gust?

Gust is the software used by Anges Québec to manage all projects.  Proposals must be submitted via this software, which can be accessed through the website.  This process facilitates the analysis of projects, as well as communication among members.  Although the software is in English, entrepreneurs are free to submit the information describing their project either in French or in English.

What should be included in the executive summary and business plan?

The essential elements are: Product

  • Innovation/Technology
  • Market need it answers to
  • Competitive advantage

Market

  • Who?
  • Size?

Business Plan

  • Commercialization
  • Operation

Team

  • Openness to coaching
  • Commitment to project
  • Confidence and Leadership
  • Experience in the field
  • Experience in commercialization
  • Complementarity of the team/members

Required Financing

  • How much and at what pre-money valuation?
  • In which form?

 

Where in their development stage are the companies that Anges Québec invests in?

At minimum, it’s preferable for entrepreneurs to have a functional prototype that could be commercialized in the near future.  Products having a potential worldwide market and high barrier to entry are favoured.

Which criteria determine whether or not an investment will be made?

Each case is different.  However, the angels will be looking at many factors, including but not limited to:

  • The ability of the entrepreneur to answer increasingly precise questions
  • Openness to our advice and flexibility during negotiations
  • Satisfactory due diligence
  • Also, one must remember that each angel makes his or her decision to invest individually.

Investments

Do the angels ask for a seat on the board of directors?

Typically, at least one of the angels will sit on the board.  Their input contributes to the positive development of the company, both by their experience and their business network.  Other types of involvement are also possible, such as the participation on an advisory board or regular meetings with the entrepreneurs.

How much time does it typically take for an investment to close?

The time period varies between 3 and 6 months.  It can happen very quickly, especially if a member of the group has already made the decision to invest.

Is Anges Québec open to co-investment?

We are very open to collaborating with other angels or venture capitalist groups.

What is the average amount invested?

The average investment where one or more angels are involved is $450,000.

What return do the Angels expect?

In the technology sector, angels aim for a return of 5 to 10 times their original investment, in a period of 4 to 7 years. In the manufacturing and services sectors, because the level of risk is generally lower, the expected returns are usually lower.

When are the documents required for the process of due diligence?

All documents must be provided at the first meeting between the entrepreneurs and the angels who have expressed an interest in investing.

Presenting to the angels

How can I improve my chances of being invited to present my project?

Your project must be based in Quebec and meet Anges Québec’s investment criteria.  The projects sponsored by an Anges Québec member or partner receive special attention.

How do meetings proceed?

Meetings are scheduled at the end of the day, and typically feature 4 to 6 entrepreneurs presenting their projects to the attending members. Presentations last 10 minutes and are followed by a question period of the same duration.  At the end of the presentations, the angels indicate on the provided sheet their individual interest in each project. Afterwards, a cocktail hour allows for direct interaction between the Angels and the entrepreneurs.

How does Anges Québec choose which projects will be presented?

The projects must have a significant technological aspect and distinguish themselves considerably from existing and eventual competitors, as well as target a significant potential market.  The quality and complementarity of the management team is of the utmost importance.  The presentation of your plan of action is also taken into account.  Finally, the valuation must be reasonable and realistic.

How frequently are the angels’ meetings held?

The angels meet every month, except during the summer.

Is there a cost to present our project?

No fees are charged to the entrepreneurs.

What type of documentation should we prepare?

A PowerPoint presentation of approximately 12 slides on a USB key is sufficient.  When applicable, a prototype or demonstration of the product is more than welcome.