It’s not business as usual — COVID-19 has wreaked havoc all over the world, leaving both investors and entrepreneurs in every industry uncertain and bewildered about what comes next. The National Angel Capital Organization (NACO) of Canada is taking a much-needed leadership role in navigating these waters; it’s stepping up to help entrepreneurs and investors make sense of this new landscape. We asked CEO Claudio Rojas to share words of wisdom to both groups. Here’s what he has to say.

WORDS OF ADVICE FOR ANGELS AND INVESTORS

I spent the day with Warren Buffet in the months leading up to the stock market collapse in 2008. His view at the time was that “the worst is over.” It was April and the worst was yet to come. The recession that followed was painful for many. However, those who were able to invest were rewarded for those risks and their investment activity helped the economy recover. As we find ourselves in equally uncertain times, angel investors will naturally be cautious about investing in early-stage companies because of this uncertainty and volatility. They’re likely to pause, directly — and negatively — impacting entrepreneurs and startups. This could mean startups will fold, discouraging future entrepreneurs for decades to come, and have a significant ripple effect on the entire innovation ecosystem. Investors now have the opportunity to prove their worth to our innovation sector. High-potential entrepreneurs especially need support — they need your advice, your network and your capital. We want angels to remember that the global companies of tomorrow will emerge from the crisis of today. While the federal government has already taken numerous steps to support the ecosystem, angel investors can bring capital, mentorship and stability at this inflection point. This is the time to support entrepreneurs — this is when we need to find ways to lean in, in any way we can, to support the ecosystem. We all have a role to play

“There are angels in every community across Canada — wherever the entrepreneur is, there’s an angel in proximity to help them with capital and the ability to offer mentorship.”

WORDS OF ADVICE FOR ENTREPRENEURS

Angels will continue to invest in companies that adapt and solve the big challenges of our time. If you’re an entrepreneur who has already raised capital, focus on managing your resources prudently to slow your burn rate. The current situation will have a big impact from both the access to capital perspective and the mentorship perspective. There is a lot to process and entrepreneurs will need sounding boards and people who have lived through past crises. If this is your first crisis in business, it can be overwhelming, but there is an ecosystem here to support you. There are angels in every community across Canada — wherever the entrepreneur is, there’s an angel in proximity to help them with capital and the ability to offer mentorship. Great companies will find their way through this uncertain time.

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Alongside the other RICs across Ontario, we provide resources and on the ground commercialization and services to innovative and technology-based entrepreneurs and businesses.

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