Northern Ontario Angels earn No.1 spot for business investment

Superior Morning7:26Northen Ontario Angels

We talk to the executive director of the Northen Ontario Angels, an investor group that's being called the most successful in the country.A northern based organization that helps entrepreneurs get their businesses off the ground is being recognized for its work.

The Northern Ontario Angels have been named the top angel investment group in the country by the National Angel Capital Organization, based on a survey of members it did last year.

Northern Ontario Angels executive director Mary Long-Irwin said the group is successful because investors in the region feel an obligation to reach out to others.

"They understand and they believe that it's their responsibility to help grow the north and help support the north, where they made the money," she said.

"This is one way of doing it."

Long-Irwin said the majority of investment deals they make are in technology and manufacturing.

"So if your idea is a good idea and, once you get software developed, [investors] can see you have sales ... [and] usually come on board. Without this it wouldn't happen."

Long-Irwin noted the group's "No.1 reason for success" is because investors supply mentoring support, and help the fledgling startups expand their network.

Investors "are willing to pass their experience on to the new business," she said.

Angel investing is also known as patience capital.

For those who want to start a business and don't have money from friends and family, and have issues getting a bank loan, angel investors can step in to provide the money needed.

"It's not a grant. It's basically a loan with attachments," Long-Irwin said.

Those attachments are usually a percentage of ownership equity in the company.

She said the companies they help must come from the north. The Angels territory is from Barrie to the Manitoba border, and almost all the investors are from the north.

One investment Long-Irwin said she is excited about is RNA Diagnostic, which is developing a formula to determine if a cancer treatment is working after the first round of treatment for women with breast cancer.