Preparing for Angel Investment

1
Preparing for Angel Investment

• Padmaja Ruparel
• Indian Angel Network

2
Angel Investment

• Investments in early stage / start up companies
• Addresses the gap for funding early stage
  companies
• Investors access constant flow of high quality
  deal flow to spread their risks
• Networks multiple domain expertise enables
  exploiting opportunities across sectors
• Angel investments - a new asset class
• Provide entrepreneurs strategic inputs, advice
  and mentoring with access to valuable networks
• Opportunity to create disproportionate wealth
  creation for all stakeholders

Commitment of Money, Time, Expertise Networks
3
Indian Angel Network

• Indias first and largest business angel group
• Over 80 successful entrepreneurs, dynamic CEOs
  part of the Network
• Network members from across India and overseas
• Concept has found resonance with corporates like
  IBM, Google, Venture Funds like SIDBI, Greylock
  Partners, SAP Ventures, etc.

4
Where are we today

• 15 investments made to date across multiple
  sectors
• Knowcross - Sanshadow - Techlit
• Authorgen - Madhouse - Mobilenxt
• Electronic Tender - Vienova - Viedea
• Druvaa - Eureka - Robhatah
• Stelae - Digitorque - Hungry Bangalore
• Over 50 deals received per month and several
  deals on the anvil for investment
• Operations in Delhi, Mumbai and Bangalore,
  processes established
• Several partnerships forged
• TIE ideal feeder for deal flow
• IVCA ideal partner for exits
• NASSCOM ideal partner for innovative cos. in
  IT / BPO
• NEN ideal feeder for seed stage deal flow
• FICCI ideal feeder for deal flow
• UKIBAN Cross border Angel Network
• FBA Partnership with Femmes Business Angels in
  Paris

5
Process at IAN

• Every entrepreneur who applies given an
  opportunity to present to IAN
• Quick feedback and mentoring at every stage of
  the process
• 1st level 15 mins. elevator pitch by
  entrepreneur explain the proposition, plan and
  the passion
• 2nd level 45 mins interaction for detailed
  pitch
• Subgroup of investors for term sheet, Share
  purchase agreement and investment
• Post investment value add continues

6

• What do Angels look for

IAN assessment process
7
The Market

• What is the space where you will operate
• Is it large and rapidly growing
• What is the competition to your product
• What is your strategy to deal with competition
• Has any market validation happened

8
The Proposition

• Clear definition of product or service
• Is it already developed or can you validate that
  it can be developed
• Have you clearly defined your customer
• Why is your product / service necessary
• Is it doing something Different / Differently
• Is it need to have / nice to have
• If IP based, patenting status

9
Execution

• How will you deliver
• Experience of pilots, prototypes etc
• What is your sales / marketing plan
• Scaling up plan
• Risks / mitigating plan

10
Team

• Team is fundamental to early stage venture,
  providing the best collateral for an investor
• Track record
• Coverage of skills finance, technical,
  marketing, etc
• Stock/compensation plan
• Advisers, etc.

11
Financials

• Current / Projected for next 3 years
• When will it break even
• Self investment funding received till date
• Investment sought
• Valuation expectation

12
Exit

• Building an exit option is necessary for
  yourself, your team, and your investors
• Investors will monetize their investment
• How
• When
• What

13
And Finally

• Put some of your skin in the game
• Getting a high valuation early can be fatal
• Size of the pie wins every time over share of the
  pie
• Ideas are a dime a dozen, its execution,
  execution, execution !!

14
Thank you

• Do write in to us at
• info_at_indianangelnetwork.com