Entrepreneur FAQ’s

Is FAN an investment fund?

No, FAN does not operate as a fund or operating pool of capital. FAN is a member-based Association, composed of “accredited investors”. FAN streamlines the investment process for our members with deal sourcing, due diligence, and negotiation of deal structure. Members make individual decisions on the investment opportunities.

What kind of companies does FAN invest in?

FAN only invests in companies headquartered in Atlantic Canada. The Association does not restrict investment into specific industries or market segments. Rather, we support companies that have demonstrated the potential for growth. You can learn more on our Application Information page.

What is a typical deal size?

Deal size is always dependent on the stage of the company and the quality of the pitch. FAN’s average financing participation is approximately $200,000 to $300,000 (CAD). However, many of our portfolio companies require larger rounds of funding to execute, and the total funding “ask” will usually include involvement from other equity investors and non-dilutive funding sources.

Does FAN deploy debt or convertible debt?

No. FAN only provides funding support in the form of equity (common stock).

How do I apply to present to First Angel Network?

FAN is pleased to discuss investment readiness and access to capital with any entrepreneur at no cost. If you would like to set up a meeting prior to submitting an application, please email info@firstangelnetwork.ca.

To apply directly to FAN, submit the following documents via our online deal management platform.
  • Business Plan
  • Pitch Deck
  • 3 year Financial Projections.

What happens if the application is accepted?

If your initial application is accepted, FAN will set up a meeting to get to know your team and learn more about your company. FAN will also start an initial due diligence process (see our website for details). After this initial meeting and both the company and FAN feel it is a fit, FAN will complete the due diligence, negotiate the term sheet, coach on pitching and presenting your business, and schedule a presentation dinner to the members. Our model is that only one company pitches at a time to the members, therefore all attention is focused and there is no competition.

What are the terms associated with accepting FAN investment?

The terms of any FAN investment are negotiated by FAN Directors with the entrepreneur. Every deal is unique, and every term sheet should involve conversation between both the investor and the management team. If you would like to see a standard FAN Term Sheet for a general idea, please email us. We also have a great blog post on our website www.firstangelnetwork.ca that discusses the term sheet.

What are the costs associated with accepting FAN investment?

Every company that presents to FAN is required to cover direct expenses related to the dinner meeting. This cost is only paid when the company has successfully closed investment funding.