NEWS RELEASE
GEORGIAN ANGEL NETWORK
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Georgian Angel Network (GAN) is celebrating 10 years since its first investment by its first angel investor. GAN was founded in 2011 when members invested in Fiix Inc. which has recently been acquired by Rockwell Automation, the world’s largest industrial automation company.
“We are celebrating the 10th anniversary of the first investment made by our first member, as well as the acquisition of Fiix Inc. by Rockwell Automation.” says Michael Badham, Managing Director of GAN. “This is a really exciting time because 10 years ago GAN members started making seed round investments in start-ups in Ontario and we’re beginning to see those investments become significantly successful businesses, creating employment and a return for investors.”
While the details of the purchase transaction remain confidential, Badham says that an angel investor can expect an investment, like this one, to return at least 30 times the initial investment after 10 years. “Working with peers in an angel group helps ensure that each investment is carefully.” adds Badham.
According to Sandy Robertson, Founder of GAN, the Fiix investment story highlights the spirit of collaboration in the Southern-Ontario eco-system that supports founders from start-up to exit.
“In 2011, I took my only member and Board Chair of GAN at the time, Hank De Jong, and we drove down to Niagara to attend the Niagara Angel Network investment meeting. The founder of Fiix, then known as Maintenance Assist, Marc Castel, was pitching there and as it turned out Hank had deep industry experience and knowledge and connections to the platform that Marc was putting together,” says Robertson. “And you know Hank is a very skeptical guy and we go there and less than 10 minutes into Marc’s presentation, he leans over to me and says to me, Sandy I’m very interested in this company. And so, we joined forces with the Niagara Angel Network to raise the amount of money that Marc was initially looking for.”
Angel investors play a critical role in helping start-up companies raise the capital they need to grow. The role of GAN and other angel groups is to connect founders with investors who have the capital and are willing to invest in this particular type of asset class. GAN typically holds eight to nine investor meetings per year with two start-up businesses pitching their businesses per meeting. The southern Ontario eco-system has a collaborative approach between angel investing organizations, business accelerators, and service organizations such as legal advisors.
“What’s unique in the southern Ontario angel investing eco-system is that since the beginning groups have worked together and enjoyed very productive relationships. Georgian Angel Network and Niagara Angel Network, for example, have done an excellent job at syndication, working together to capitalize young companies in a very efficient manner,” says Terry Kadwell, Executive Director of Niagara Angel Network. “Who sources a deal is immaterial. Working together to get the best terms, fulfilling the raise, and mentoring the companies are far more important. And there are so many examples of this, from Weever Apps, Earth to Kids (in Collingwood), and SurfEasy (which also brought an exit to our respective members) have all been invested by both GAN and NAN.”
GAN members focus on transformational opportunities, in which founders have applied technology to existing products and services to create a product that has a compelling fit with an addressable market and a founder team that can deliver on their vision and a long-term sustainable value proposition. To date, GAN members have invested over $20 million in 75 start-up companies, through initial financings as well as follow-on financings many of which are collaborations between GAN and other angel groups.
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