Approaching Angel Investors/Early Stage Funds. Early Stage Investors in Business Life Cycle Time/Revenue MATURITYMATURITY IPO Growth Challenges CAPEX.

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Presentation transcript:

Approaching Angel Investors/Early Stage Funds

Early Stage Investors in Business Life Cycle Time/Revenue MATURITYMATURITY IPO Growth Challenges CAPEX Investor Pressure Change Management F&F Faith Money Angels Super Angels Accelerators Early Stage Funds Angels Super Angels Accelerators Early Stage Funds Venture Capital Working capital Bank loans Private equity Late Stage Market Validation Customer Acquisition Low or –ive Cash Flow Operational Challenges Market Validation Customer Acquisition Low or –ive Cash Flow Operational Challenges

Angel/Early Stage Funding Trends Explosive Growth of New Angel Network MA,IAN, CA, BA,PA,KA,HA Early Stage Focus by Institutional Investors Nexus, Sequoia, IDG, Accel, Seed Fund Number of investors, investment is growing Angel exits are real Now Individual ----Serial – Super Angel Investor

Notable Trend Setting Investment

Market Early stage Investment Crosses PE Investment first time in India – Economic Times, Feb, 2012 Grown 3 time to $1.2 b Market Early stage Investment Crosses PE Investment first time in India – Economic Times, Feb, 2012 Grown 3 time to $1.2 b

Venture Funds Angel /Super Angel Networks Sequoia Capital IndiaMumbai Angels Accel Capital PartnersIndian Angel Network Intel CapitalChennai Angels Helion Venture PartnersHyderabad Angels SEED FundKutchi Angels Nexus India CapitalBangalore Angels NEA IndoUS VenturesPune Angels IDG India VenturesBlume Venture Canaan PartnersSEEDERS Light Speed/ Kae CapitalSuper Angels Startups Investors in India

Accelerators in India The Morpheus Angel in Residence 8-10% equity in return of Pre Seed Investment<5 Lakh Executive in Residence 4 Month Acceleration Program Post Acceleration Support Exit Series A Linked Seed Fund 2 Cr (HNI/Angel Commitments) 8-10 startup per batch Started with Sweat Equity Model Location- Bangalore iAccelerator 7-10% equity in return of Pre Seed Investment <5 Lakhs 3 Month Acceleration Program Post Acceleration Support Exit Series A SEED Money Linked SEED Fund 10 startup per batch Virtual Incubation Location Ahemadabad Others IAN Accelerator Angel Prime HATCH Incu Capital Amity Innovation Incubator …

Pre-Screening Reviewed by IAN Detailed Pitches Reviewed by Angels Due Diligence Sub-groups Follow up Luncheon And ad hoc diligence (>5 members) Individual Investment Decision but Coalition Negotiation; Board Assignment Fund Investment Decision ~300 deals/month deals/month 5-7deals/month ~2-3 deal/month Angel Investment Process Term Sheets

What do they look at? Value Proposition DD x return Exit Option Unheard/Killer Proposition Chemistry

Myths 1. Angels dont need to own majority stake 2. They invest in people/concepts they like 3. Dont lie about a fictitious term sheet 4. Due diligence takes time 5. Board seats 6. Valuation

Startup Investor as Catalyst Help in Team Building-COO, CEO, Expert Assistance in Refining Products Go to Market Strategy Developing Overseas Market Strategy Brand Building of Investee Companies Next round Investment Assistance Sharing Business Experience

Apoorv R. Sharma Executive Vice President Venture Nursery Cell: