Investors interested in joining the KVN are encouraged to contact us to discuss your interest.
In the meantime, here are some steps for you to consider.
- Take a moment to review the KVN Investment Thesis
- Familiarize yourself with our deal flow process
- Review the content below
- Complete and submit the Investors Application Form
Membership Benefits
The KVN aims to be responsive to the needs of founders and investors with the primary aim to facilitate raising pre-seed capital. As such the KVN offers its members the following benefits:
- Belong to a community of active investors
- Sponsor deal flow to present to the KVN
- Access to a KAST Executive In Residence for a conversation on the Kootenay investor community, angel funds and becoming an active or passive angel investor.
- Quarterly Meet-ups – Stay abreast of the latest investment opportunities, meet fellow angel investors, share information about opportunities, deals, due diligence and follow-on rounds.
- Contribute to deal screening and due diligence
- Access to:
- Investor learning content and event videos
- Pre-recorded investment pitches
- KVN Members via Group Chat
- Benefit from a $800,000 lifetime capital gain exemption
- 30% tax credit when you invest in an EBC-eligible company
Member Eligibility
Capital investments in private companies are subject to British Columbia Securities Law and as such fall under the purview of the BC Securities Commission The BCSC provides a number of resources for would-be investors and entrepreneurs to help guide investing in the private placement market. See BCSC Website for current information.
The KVN, mainly considers potential investments that qualify as a private placement under the Private Issuers Exemption – Accredited Investor. As such in order for a KVN member to qualify to invest in a private placement they must meet meets at least one of the following financial qualification tests, or qualifies in some other way (the other ways are described in securities regulation):
- At least $1 million in financial assets (cash and securities) before taxes, net of any debts. Neither the person’s home nor any other real estate the person may own are considered financial assets.
- Net income before taxes of more than $200,000 consistently over the past two years ($300,000 when combined with a spouse’s net income) with a reasonable expectation to continue to exceed that net income level.
- Net assets of at least $5 million.
*See National Instrument 45-106 for the definition and requirements of an Accredited Investor in Canada (source: BC Securities Commission)
It is also worth noting that the KVN is not limited to accredited investors for private placements. In the event that the number of shareholders in a potential investment is greater than 50, the Private Issuer Exemption is no longer available. In this scenario, the KVN may also consider investing under the Start-up crowdfunding prospectus exemption and/or Offering Memorandum exemption as described by the BCSC.
Membership Structure
For 2023 the KVN will be accepting Charter Members, these members will pay/not pay a membership fee. Fees will be applied starting on April 1, 2024.
The KVN has two membership types:
- Individual Member ($200/yr) – To qualify as an individual member, you need to qualify as an accredited investor. Individual members are eligible for all the membership benefits. The KVN initially plans to attract both experienced and new investors. Members need not reside in the Kootenay, but are motivated to support local start-ups.
- Group Member ($350/yr) – To qualify as a member, your organization and/or senior leadership team must have an established track record supporting, investing in, or enabling Kootenay entrepreneurs. The following types of organizations fall under this membership category:
- Angel investor groups, networks, and collectives
- Venture funds and family offices
- Investment Co-operatives
Each group can have up to three representatives attend an event. Extra members can attend on a cost recovery basis as determined by KAST. Access to the group chat, content library, etc. will be limited to a representative (point of contact) to the organization.
Memberships will run for a one-year term. The annual term runs from April 1 – March 31 each year. This approach puts all members on the same renewal date and makes it easier to administer in the future.