Data Collection and Report on Angel Investing Activity in Canada

1. ADVANCE CONTRACT AWARD NOTICE (ACAN)

   The Department of Innovation, Science and Economic Development Canada has a requirement for the provision of the National Angel Capital Association (NACO) to obtain annual Data Collection on Angel Investing Activity in Canada. The purpose of this Advance Contract Award Notice (ACAN) is to signal the government's intention to award a contract for these services to National Angel Capital Organization, MaRS Centre, Suite 450, 661 University Ave, Toronto, Ontario, M5G 1M1. Before awarding a contract, however, the government would like to provide other suppliers with the opportunity to demonstrate that they are capable of satisfying the requirements set out in this Notice, by submitting a statement of capabilities during the 15 calendar day posting period.

    

   If other potential suppliers submit a statement of capabilities during the 15 calendar day posting period that meet the requirements set out in the ACAN, the government will proceed to a full tendering process on either the government's electronic tendering service or through traditional means, in order to award the contract.

    

   If no other supplier submits, on or before the closing date, a statement of capabilities meeting the requirements set out in the ACAN, a contract will be awarded to the pre-selected supplier.

    

2. Background

The Department of Innovation, Science and Economic Development Canada (ISED) has a requirement to obtain Data Collection on Angel Investing Activity in Canada. The proprietary survey instrument and data gathered between 2010 and 2018 are still relevant, and the Contractor continues to trace the investing activity of this community to further investigate the trends, over time, of this asset class in Canada. The Contractor will also be required to write the annual Report on Angel Investing Activity in Canada (“the Report”). The Report must present an analysis of the data collected in that year, combined with that collected in previous years from Angel groups and clubs.

ISED has a requirement to collect and update the Angel Investing Activity in Canada data set. The Contractor will collect data from:

• all of last year’s data contributors that are able to participate,[a]

• at least 75% of NACO’s member Angel groups,

• at least three Angel groups in Western Canada,

• at least one Angel group in Atlantic Canada and

• Anges Quebec.

[a] An explanation will be provided for those that are not participating.

When collecting data, the Contractor will ensure that:

• the Angel group survey instrument is distributed to all Angel groups and “club” managers in the sampling frame;

• telephone interviews are conducted with all Angel group managers to ensure that the data provided is accurate and it covers the status of all current deals and past deals that have been reported since 2010; and

• pre-emptive actions are taken to drive up participation rates and to ensure that all of the project objectives are met.

The dataset will include, where available:

• Angel-backed firm name, address, city, province, industry sector and the business number;

• Data on the economic performance of angel-backed companies such as revenue generation, number of employees, and a breakdown of company founders (where applicable) by demographics, including at least the total number of founders and the number of women founders; and

• Data relating to Angel investments including individual deal data, including date of investment, new or follow-on, amount invested by Angel groups, the number of Angel groups involved, the province of each Angel group involved, the number and type of co-investors and amount they invested, and if there are any government programs involved.

The sampling frame for the annual survey will be all Angel investors associated with formal Canadian Angel groups and clubs. The survey will be restricted to gathering data on investments placed in a given calendar year.

The Contractor will also be responsible for writing the annual Report, which at a minimum will do the following:

• Describe the methodology used to collect the data and contain an analysis of the data;

• Report on trends in Angel investment from 2010 forward;

• Report on exit data and associated returns; and

• Track the status of all deals that were reported since 2010 and note whether each company is still active, is out of business, or has been acquired, and whether the Angel investors made a follow-on investment in the current year. 

The proposed contract is for a period of one (1) year, and any resulting contract will include an irrevocable option to extend the resulting contract term by up to two (2) additional one (1) year periods under the same conditions.

The estimated value of the contract, including the option period, is $75,133.00 (plus applicable taxes).

3. Minimum Essential Requirements

Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements:

• Vast knowledge* of the current Angel investor ecosystem in Canada, related gaps, issues and key stakeholders, especially in the context of growing Angel investment in Canada and supporting innovative, early-stage start-ups;
• Extensive experience** conducting outreach activities on Angel investing and a strong credibility and existing relationships with Angel investor communities across Canada, including Atlantic and western provinces; 
• Access to at least 5 years of angel investing data and the commitment to participate of at least 25 angel groups, including 3 angel groups in western Canada, Anges Quebec and one group in Atlantic Canada;
• Extensive experience** working with the federal and provincial governments and government officials; and
• Extensive experience** engaging with multiple stakeholders from diverse fields such as academia, government, non-for-profit and industry to plan and facilitate discussions on data collection and analysis.

* Vast knowledge is defined as thorough understanding of a topic, including the perspectives of different stakeholders and associated political, economic social and technical considerations. This understanding would normally be obtained through substantial research, stakeholder outreach and first-hand experience.

**Extensive experience is defined as a minimum of 5 years of experience of which one is within the last year.

4. Justification for the Pre-Selected Supplier

The chosen organization, the National Angel Capital Organization (NACO), has extensive experience in providing a regular annual update of a national longitudinal dataset of investments in the visible Angel market in Canada and publishing an annual report analyzing investment trends since 2010. NACO is Canada’s leading organization for Angel capital information, data and advocacy. The organization has a national reach and an extensive network of stakeholders, academics, governments and Angel investment specialists to draw upon for the delivery of this project. They developed the proprietary survey instrument and have the expertise and knowledge to update the data gathered between 2010 and 2018 and to collect additional data for 2019. Additionally, NACO has many years’ experience in analyzing the linear, primary data to produce a report covering current trends in Angel investing. NACO has also demonstrated over the past nine years its ability to mobilize its extensive network of Angel investors, academic institutions and industry partners and has shown concluding results in delivering successful reports. Based on this unique combination of experience with regular annual data collection and reports, knowledge and expertise, NACO is the only supplier capable of performing this work.

Ownership of any Foreground Intellectual Property arising out of the proposed contract will vest in the Contractor.

Suppliers who consider themselves fully qualified and available to meet the specified requirements may submit a statement of capabilities in writing to the Contracting Authority identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The closing date and time for accepting statements of capabilities is June 11, 2019 2:00 p.m. EST.

Inquiries and statements of capabilities are to be directed to:

Name: Chantal Lafleur

Organization: Corporate Finance Systems and Procurement Branch

Telephone: 613-990-5937
E-mail: chantal.lafleur2@canada.ca

5. Policy Information

Section 6(d) of the Government Contracts Regulations is being invoked in this procurement as only one person or firm is believed capable of performing the contract.

(http://laws-lois.justice.gc.ca/eng/regulations/sor-87-402/page-2.html#h-6).

The National Angel Capital Organization, as Canada’s national organization for Angel investors, is considered to be the only organization in a position to perform these services; is the only known source that complies with all the essential requirements listed above; and is capable of performing the work during the specified time period.

The following exclusion(s) and/or limited tendering reasons are invoked under the:

• Subject to North American Free Trade Agreement (NAFTA), Article 1016.2(b);

• Subject to World Trade Organization- Agreement on Government Procurement (WTO-AGP), Article XV.1(b)

  (https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng)