GameON Finance 2.0: In The Company Of Angels

This panel featured a discussion on angel funding for gaming start-ups in Canada.

Moderator: Nathon Gunn, CEO, Bitcasters

Panelists:

• Julian Spillane, CEO, Frozen North Productions
• Scott Simpson, Founder, Bitheads
• Daniel Mothersill, President, National Angel Organization

Key points:

• 'Angels' are high net-worth individuals who seek to invest their own after-tax dollars in start-up companies which interest them and provide mentorship as well.
• Angelinvestor.ca has listings of various angel groups in Canada. But the best way to find and connect with angels is through referrals - normally by lawyers, accountants, other professional service folks who are connected to them. Angels operate collaboratively in most cases.
• $3.5 billion invested by angels in Canada in '08 (compared to about $20 billion of angel funding in the US).
• Angel investing in Canada is fairly new - not much existed until several years ago.
• Angels invest in people / teams. Rarely interested in project-based financing.
• Key steps before contacting angels: build your team, form your company and gather a team of advisers.
• Validating your business as much as you can (eg by building a prototype) only improves your chances of getting funded.