by Mehr Sokhanda
We recently caught up with Louis Sapi, Chair of Brampton Angels and CEO, HS & Partners LLP. We spoke about his commitment to the startup ecosystem and his vision for Brampton Angels.
Louis Sapi joined Brampton Angels after years of investing in startups on his own. Today, as Chair of the Board, he works with other experienced investors to find and support new Canadian companies.
“I’ve always been an independent angel investor, and I truly get enthused and inspired by bright young entrepreneurs,” Sapi says. “For me, it’s about supporting the essential financial ecosystem we need in this country, fostering these young entrepreneurs by mentoring them and providing the financing they need to build productive, job-creating companies.”
Before Brampton Angels, Sapi spent his time in different roles supporting new businesses. He has guest lectured MBA classes about entrepreneurship and served on a provincial PC party Policy Advisory Committee where he helped shape recommendations for strengthening Ontario’s economy through entrepreneurial support.
The turning point came when AIO (Angel Investors Ontario) approached Sapi about joining Brampton Angels. “I saw it as an opportunity to be part of something more structured, working alongside other experienced investors,” Sapi explains. Two things convinced him to join:
“First, I’d worked with Pam Banks, and I had seen the wonderful work she was doing. She provided a fantastic pipeline for introducing us to entrepreneurs and startups,” Sapi explains. “Second, I believed that by creating an organization with proper governance and enthusiasm, we could do something truly special in the startup ecosystem.”
For Sapi, the collaborative aspect of Brampton Angels represents a significant advantage over independent investing. Working alongside experienced professionals like Andrew Opala, Pam Banks, and Abhishek Mathur means combining diverse expertise and perspectives. “When you have more people sharing due diligence and pooling their wisdom and knowledge, you can make better decisions and provide better mentoring for the startups seeking funding,” he notes.
The Commitment to Growth
Sapi accepted the Chair role because he saw a chance to make a difference. “I ultimately accepted the Chair position because I believed I could add value through governance and act as a catalyst to get things done in launching this new Brampton Angels organization,” he explains. “If I could help make that happen, then I was happy to commit my time and effort to it.”
The Current State of Founder Support in Canada
When asked about the current state of funding support in Canada, especially in a year that followed strong investor activity in startups, Sapi contends that our systems can do better:
“Let me address the fundamental issue holding back Canada’s startup ecosystem: there’s a profound lack of respect and appreciation for small businesses and entrepreneurs, both from our governments and our financial institutions, including banks and venture funds.
This is particularly troubling when you consider the economic impact. At a recent MBOT panel where I was a speaker, an economist presented data showing that up to 65% of all Canadian employment comes from small businesses (defined as those with fewer than 100 employees). Based on my research during my Policy Advisory Committee work, the number is even more striking – between 70-81% of non-government employment comes from small businesses.”
Yet despite these numbers, Sapi emphasizes the government consistently overlooks this sector.
“They’ve created an extremely challenging environment for raising capital, characterized by insufficient tax incentives, over-reaching regulations by the OSC and a restrictive banking system. Unlike the United States, where thousands of banks actively compete to lend money, creating a vibrant financing culture, Canada’s system is far more constrained. While our banking system may be more stable, it’s hindering economic growth as compared to the US system. I’ve testified at Queens Park that our banking system is severely underperforming compared to the American system in terms of wealth and economic creation.”
What is possible? The Right Incentives for Startup Founders
Sapi alluded to the how Canada’s film industry eventually thrived and was able to create a robust ecosystem north of Hollywood. He states, “Consider the success story of Canada’s film industry as an example of what’s possible with the right financial incentives. Years ago, the government introduced tax shelters for film deals through limited partnerships. This program allowed high-net-worth individuals to invest in the industry with immediate tax benefits, repayable over 10 years. This brilliantly structured initiative attracted film studios to Canada and created a multi-billion-dollar industry that continues to thrive today. In short, we do not need government money, instead, we need to tap into the high net worth and middle-class money to invest.”
Sapi explains the core issue isn’t necessarily a lack of available capital, but rather creating the right systems and incentives to channel that capital effectively, stating, “We need policy changes that demonstrate real understanding and appreciation for the vital role small businesses and startups play in our economy. This doesn’t necessarily require direct government funding, but rather smarter policies that increase liquidity and support for this crucial sector.”
Sapi highlights that beyond mentoring and funding startups, Brampton Angels needs to become a vocal advocate for startups at the government level, “While I’ve been trying to do this individually, and other organizations are doing excellent work in marketing startups and pushing for regulatory changes with the Ontario Securities Commission (OSC), we need to do more collectively. The current regulatory environment is a significant barrier. For instance, the OSC’s rules severely restrict who can invest in startups through requirements like accredited investor status. While they are experimenting with some exemptions for professionals, there are still many people who would gladly invest smaller amounts in startups but are prevented by regulations. These small investments could collectively make a substantial impact.”
Brampton Angels’ is barely over a year old and already it has achieved enormous success in the number of investments and support it has made thus far. As per Sapi, “We’re either the top or among the top angel groups in Ontario in terms of effectiveness and investment volume.”
Sapi envisions Brampton Angels becoming champions for the startup ecosystem, and by extension, small businesses as well. Looking ahead, success isn’t just about the number of investments – it’s about changing how Canada supports its entrepreneurs. With small businesses providing up to 81% of non-government jobs in Canada, the impact of this work could be transformative. As Sapi concludes, “This doesn’t necessarily require direct government funding, but rather smarter policies that increase liquidity and support for this crucial sector.”
Join our dynamic community of like-minded individuals who are actively involved in funding and mentoring promising entrepreneurs. For more information on how to become an investor with our angel investment community, read more here.
