NACO Supports Business-Led Innovation and Access to Capital ...

For Immediate Release ? TORONTO, ONTARIO ? 4 April, 2012?? The National Angel Capital Organization (NACO), Canada?s industry association representing angel investors across Canada, was pleased to see that the role Angel investors play in supporting the growth high-potential firms was recognized in the 2012 Federal Budget.

?NACO congratulates the Government for supporting business-led initiatives that focus on meeting private-sector needs; especially those pertaining to risk capital access and support for the growth of Canada?s high-growth firms,? said Michelle Scarborough, Chair of NACO and Managing Partner of SMART Seed Ventures. ?We applaud the government?s recognition in this budget, for the first time, of the role Angel investors play in helping firms access the capital they need to grow and create the value-added jobs of the future.?

NACO estimates that Angel investors in Canada invest just under $1 billion annually into high-growth, early-stage companies across all industries and geographies, from corner to corner across the country. Angels fill an important financing gap at the early stage of company development, putting our own capital to work along with our expertise at helping to mentor entrepreneurs at those critical early stages and opening up our networks to accelerate company growth.

In particular, NACO would like to highlight its support for the announcement of $400 million to help increase private sector support in early-stage risk capital, and to support the creation of large-scale venture capital funds led by the private sector. ?We look forward to working with the Government to help them consider different ways to best structure its support in order to incent Angel investment across Canada.? noted Bryan Watson, Executive Director of NACO.

In addition to this announcement, NACO applauds the announcement of the following measures which will help support high-growth companies and entrepreneurs, including:

• $100 million to support the venture capital activities of the Business Development Bank of Canada
• $110 million per year to the National Research Council to double support to companies through the Industrial Research Assistance Program
• The announcement of the upcoming launch of the Western Innovation Program
• $14 million over 2 years to support the Industrial Research and Development Internship program administered by MITACS
• $95 million over 3 years, and $40 million per year thereafter, to support innovation through procurement via the Canadian Innovation Commercialization Program

In addition to these measures, NACO is pleased to note the Government?s commitment to strengthening the immigration system through the Business Immigration Program.

Finally, NACO was pleased to note that the structure of the SR&ED program will continue to support early-stage high-growth companies. ?We recognize that the SR&ED program can be improved and will be monitoring changes to the program to see that it remains a fundamental part of the financing toolkit for Canadian high potential growth companies.? said Ms. Scarborough.

About the National Angel Capital Organization

The National Angel Capital Organization is the industry association representing Canadian Angel capital, whose mission is to support Canadian angels as they foster the growth of the next generation of innovative Canadian companies. NACO achieves its mission though professional development programs for Angels, entrepreneurs and other stakeholders, communication activities, events and advocacy. Founded in 2001, NACO has represented Angel capital for over a decade and provides.

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For more information or to arrange an interview with NACO, please contact us at:

Bryan Watson, Executive Director
Tel: 416-581-0009
E-mail: bwatson@angelinvestor.ca

Tagged: 2012 Federal Budget Reaction, angel group, angel investor, Budget 2012, business angel, entrepreneur, federal budget

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