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.
Who qualifies to join FAN?
In order to join and invest with FAN, you must meet the definition of an “accredited investor” under National Instrument 45-106 Prospectus and Registration Exemptions. Accredited investors hold a special status under financial regulation laws and have the ability to invest in high-risk offerings and private companies.
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.
How does the FAN process work and how many investments can I make?
FAN presents 4 investment opportunities per year, at a series of dinner meetings. All investment decisions are made on an individual basis. You can review our complete funding process.
What do I receive in exchange for my investment?
FAN only provides funding support in the form of equity. All members receive equity in the form of common stock upon investment. In most cases you may also be eligible for Equity Tax Credits.
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.
How much money am I expected to invest?
Individuals decide if they would like to invest in each opportunity and the amount. If you choose to participate in an investment opportunity, we do have a minimum investment requirement of $10,000.
Does FAN take an administration fee from my investment?
No. FAN does not charge a management fee or administration fee on investment funds.
I don’t know anything about investing in startup companies- Is FAN right for me?
One of the main benefits of joining an organized angel group is the exposure you have to a wide pool of knowledge and expertise. You can learn from others who have more experience in the startup investment space, discuss each deal with other members, and FAN manages the heavy lifting on your behalf (deal sourcing, due diligence, deal structure).
How involved do I have to be with my portfolio companies?
It is up to each individual member to decide how active or passive they would like to be with their angel investing. Many angels prefer to mentor their portfolio companies in a formal board capacity or on an informal basis. Others prefer a more “hands-off” approach, only receiving post-investment communication via the quarterly portfolio updates provided by FAN.