Impact investing in Ontario may be getting a boost from a new collaboration between the provincial government and so-called “angel” investors that aims to help encourage investment in businesses that seek to provide social benefits along with a financial return.

The Ontario government is teaming up with the Toronto-based Network of Angel Organizations – Ontario (NAO-Ontario) to launch the Impact Angel Alliance (IAA), which they say is the first angel network for impact investing in Canada.

The new Toronto-based network will promote co-investment in social ventures by existing angel groups, family offices, foundations, venture capital funds, and non-traditional investors.

The IAA is modeled on a similar effort in the United States, Investors’ Circle, which has helped raise over US$180 million for early-stage social ventures.

The IAA aims to encourage more investors to fund businesses that aim to produce positive social or environmental impacts as well as financial returns.

It plans to kick start that participation by researching the emerging phenomenon of impact investing; raising awareness among existing angel investors; and, diversifying angel group membership by attracting more women, visible minorities, and recent immigrants.

“Like any other start-ups, impact ventures need financing to grow. The number of angel investors making impact investments is growing, and we want to make it grow even more,” says Sean Holt, executive director of the IAA.

“With the support from the government and partnership with NAO-Ontario, we’re confident that we can achieve that goal and help to transition impacting investing to greater mainstream awareness and adoption,” he adds.

The existing Canadian market for impact investing is nearly $5 billion, the organizations say, and that is forecast to grow to $30 billion over the next 10 years.

“We want to encourage investors to target businesses that focus on achieving more than just profits — by placing their money into businesses that also positively contribute to social or environmental benefits in Ontario,” says Brad Duguid, minister of economic development, employment and infrastructure.

“Angel investors can help social enterprises grow and succeed, and through our partnership with the Network of Angel Organizations and the Impact Angel Alliance, we are making it easier for social ventures and angel investors to connect, contribute, and make our society a better place to live,” Duguid adds.