A match made in heaven: angel investors helping entrepreneurs succeed.

• Author: Cowan, Liz
• Position: FINANCE

Northern Ontario Enterprise Gateway (NOEG) could be considered a match-making service, but its clients aren't* looking for love. Instead, they are seeking private investors willing to take a chance on their entrepreneurial ideas.

Covering an area from Kenora to just north of Barrie, executive director Mary Long-Irwin matches angel investors with business owners. "New businesses require a fair amount of dollars so I help them find an investor who is interested in that type of business or an investor who is interested in that type of entrepreneur and they have connections," she said.

NOEG is a not-for-profit organization that is funded by the federal and provincial governments, local corporations and individuals. Its office is in Thunder Bay but its clients and investors come from all across the North.

Investors provide much needed cash but also valuable connections and advice. Long-Irwin said one entrepreneur was able to find a manufacturer for her product and a major retailer with the help of an investor.

"It is not just the money," she said. "It's the investor's network, experience and contacts that can really help an entrepreneur."

The organization helps entrepreneurs become investor ready. And for every 10 entrepreneurs, only two will get investments.

"The ideas may be off the wall, they don't have money or they just don't have a chance of succeeding," Long-Irwin said.

Others overvalue their businesses.

"We get this a lot, for instance, when someone is seeking $100,000 and they are willing to give up 10 per cent. They say their business is worth $1 million but their total financing is only $150,000. We say no and tell them that their business is only worth $150,000," she said.

"The entrepreneurs say the business will be worth $1 million in five years but they are using investor money and the investor is taking all the risk, so we make sure that doesn't happen."

Some have refused investments based on more realistic evaluations while others "get it."

"Clients realize without (investors) they have nothing and with them they have a lot," Long-Irwin said.

NOEG is always looking for investors and all they have to do is contact Long-Irwin. Their privacy is guaranteed and she won't send them any potential deals: if she wouldn't do them herself.

"I send them an overview of a potential business and tell them what the person is looking for and what percentage they are willing to give up and how they will get paid," she said...