Getting to Know Our Angels & What They Say About Angel Investing

Wondering who these crazy people are that keep investing in local startups?  Well we’ve been asking ourselves the same question.  We’d like to share what we’ve been learning from our own Startup TNT investment community.  They have tips to share with founders and first-time investors and investing (and life!).

First up is Lindsay Vanstone (LV), who is the head of Alberta Women Entrepreneurs’(AWE) Digital Transformation program and previously worked in transportation planning and real estate. Lindsay is the chair of the ETS advisory board which is a citizen-run board that looks at how to improve transit in Edmonton. 

Lindsay is also an avid traveller (COVID aside), and most recently was in Uganda, rafting down the Nile, in class 5 rapids, like the badass she is! She’s also lived in 5 Canadian cities (Toronto, Montreal, Kingston, Calgary and now Edmonton), goes cross-country or downhill skiing when she can, and like all of us, is loving Wordle. We (Amanda and Lindsay) also geeked out over our mutual love of F1 racing, and the fact that the next season is starting soon!  

Lindsay first joined one of the TNT Investment Summits sharing a vote with an existing angel investor, and has now participated in 5 of our Investment Summits. As Lindsay and I discussed, “It’s really important to make sure that there is female representation on the investor side, and not just on the entrepreneurial side.” I totally agree, and I’m so glad that I was able to grab some time with Lindsay to talk about her angel investing experience and really get down to the root of how it works, and what you need to know if you want to be an angel investor. 

AA: So Lindsay, why do you choose to do angel investing? 

LV: This is actually just one of the types of investment in my portfolio. It has a different type of risk and reward profile than other investments, and it also allows me to circulate my money in the local economy. It helps me to make sure that my money is helping to support local businesses and local talents.

AA: And what do you think is important for first-time angel investors to know? 

LV: I think it’s really important that they understand that having a good due diligence process is a MUST. As an investor, you want to make sure that you’re buying into the substance of the company, not the “flash” or the hype of the company. 

 And you also want to make sure that you take a really good look at the founder(s) and the team. At this early stage, they’re going to be the ones driving the company forward, so you need to do your due diligence on them, and make sure you’re comfortable with who they are. 

 AA: What are some of the big investing mistakes someone can make? 

LV: Not asking enough questions. There’s a LOT to learn as a first-time investor, so don’t be afraid to ask questions about how the business works or if you don’t understand an aspect about the company. Not only is it for your own education, but it also requires founders/startups to be able to explain to you their unique selling points, which is huge. 

AA: So what should founders/startups keep in mind when pitching their companies or ideas? 

LV: Founders really need to make sure that their story is clear. Make it easy for investors to understand what the problem is and how your company solves the problem, and why they should invest in you. And most importantly, as a founder, you want to show your traction and how you’re going to make money. 

AA: And why do you think it's important to invest in local companies?  

LV: Well, with angel investing, it allows me to invest in local companies and local talent. Investing in these companies gives them the chance to keep the key talent in Alberta. That creates role models for people looking for careers, and it creates great examples for other companies to want to start or have their businesses in Alberta. 

It also allows for diverse founders to find like-minded investors in Alberta. It’s good for women investors to be able to invest in women founders, and like I mentioned above, it’s important to have female representation in investment. 

AA: Love it. Last question - What makes TNT different from other investing groups you've been part of? 

LV: (laughs) TNT is actually the only investment group I’m part of. BUT having said that, there are a lot of benefits. It’s a great way to get your feet wet to see what angel investing is about. There’s a lower barrier to entry, just $5,000 vs the 5-figures (or 6-figures) other investments require.

 It also allows you to be part of a community. There’s a whole team of investors that are working together, doing the due diligence, and that gives you the opportunity to really dive deep and discuss the companies together. 

AA: Thanks so much for your time today, Lindsay… such a great conversation and I think these notes will definitely be helpful for people thinking about angel investing. 

LV: You’re welcome!