Lost in translation: increasing engagement between angel investors and immigrant startups in the Canadian entrepreneurial ecosystem

Immigrant entrepreneurs are an important and growing segment of Canada’s startup scene. They contribute to the Canadian economy and lower unemployment rates by creating job opportunities through their ventures. However, they face a challenge in receiving funding from local investors in the initial stages of their startup. Angel investors are experienced professionals with an extensive network in the entrepreneurial ecosystem who specialize in early stage funding. Increasing engagement between Angels and immigrant entrepreneurs can create greater opportunities for the immigrant community in Canada and help Angels diversify their portfolio. The objective of this research is to adapt the Investment Decision Making Criteria for Angels (IDMCA) to analyze the factors that influence an Angel’s decision making process, and determine whether these factors are moderated by an entrepreneur’s immigrant status. Results from the study have shown that the Passion & Commitment (P&C), Integrity & Trust (I&T), and Open-mind & Adaptability (O&A) are important factors for an Angel’s decision making in respect to immigrant startups, whereas Industry Experience (IE), Track Record (TR), and Technology Knowledge (TK) are not important factors.