Montreal Tech Watch

MontrealStartup launches publicly today and they present themselves as angel investors that will fund and mentor new technology entrepreneurs.

Today, John Stokes, Daniel Drouet, angel investors, and governement representatives announced officially a $3 million fund aimed at supporting startups in pre-seed and seed stage. This first fund was gathered from a joint effort from 20 successful and experienced technology entrepreneurs, matched by funds coming from Investissement Québec.

The current model behind MontrealStartup was born when John Stokes saw last year that Montréal lacked active angel investors in order to become a startup hub, à la Boston. For him, angel investors are essential in the startup “landscape”. We have of course early stage VCs like iNovia Capital, but those investors will only back companies that have an existing prototype/customer base/revenues. They also invest a substantial amount in a team, whereas many entrepreneurs need only from $50k to $250k in the eary beginning. For entrepreneurs, there is then a real gap between the idea and going to a VC.

If you are a technology entrepreneur, this can only mean good news. I have spoken to John Stokes and Daniel Drouet last week, and not only MontrealStartup will help you financially, they will also mentor, support, and help you fine-tune your business and make it venture-ready. Aspiring startups will be able to fill a quick form in MSU’s website and they assured me they will get back to you as soon as possible. If an agreement is signed, MontrealStartup will have a participation in return, from 10 to 30% of the company (more likely to be in the 10% range), depending on your targeted market and also the stage of the company.

I’ve known John and Daniel since last year, and they are one of the few who went regularly to the tech entrepreneur breakfast, to democamps and barcamps and other technology events. Congratulations, then! I am wishing them good luck in their ventures

If you think big (as in reaching people in Europe/Asia/North America), if you have a breakthrough idea, if you are in the internet, mobile, multimedia space, then go have a chat with them. Tomorrow, there is for instance a Montreal Tech Entrepreneur Breakfast, planned as usual at Bistro Etc, 1291 Mont-Royal Est, from 9am.