110 likes | 342 Views
Approaching Angel Investors/Early Stage Funds. Early Stage Investors in Business Life Cycle. Growth Challenges CAPEX Investor Pressure Change Management. IPO. M A T U R I T Y. Market Validation Customer Acquisition Low or – ive Cash Flow Operational Challenges. Late Stage.
E N D
Early Stage Investors in Business Life Cycle Growth Challenges CAPEX Investor Pressure Change Management IPO M A T U R I T Y • Market Validation • Customer Acquisition • Low or –ive Cash Flow • Operational Challenges Late Stage Working capital Bank loans Private equity Venture Capital Angels Super Angels Accelerators Early Stage Funds F&F Faith Money Time/Revenue
Early stage market scenerio Market Early stage Investment Crosses PE Investment first time in India – Economic Times, Feb, 2012 Grown 3 time to $1.2 b
AngelInvestment Process ~300 deals/month Pre-Screening Reviewed by IAN Fund Investment Decision 20-25 deals/month Detailed Pitches Reviewed by Angels Individual Investment Decision but Coalition Negotiation; Board Assignment 5-7deals/month ~2-3 deal/month Due Diligence Sub-groups Follow up Luncheon And ad hoc diligence (>5 members) Term Sheets
What do they look at? Value Proposition DD x return Exit Option Unheard/Killer Proposition Chemistry
Myths • Angels don’t need to own majority stake • They invest in people/concepts they like • Don’t lie about a fictitious term sheet • Due diligence takes time • Board seats • 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: +91-9004604066 aprshp@yahoo.com