Preparing for Angel Investment Padmaja Ruparel Indian Angel Network

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 Network’s 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

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

Network’s 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

Indian Angel Network India’s 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.

India’s 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.

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

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

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

Every entrepreneur who applies given an opportunity to present to IAN

Quick feedback and mentoring at every stage of the process

1 st level : 15 mins. elevator pitch by entrepreneur – explain the proposition, plan and the passion

2 nd level : 45 mins interaction for detailed pitch

Subgroup of investors for term sheet, Share purchase agreement and investment

Post investment : value add continues

What do Angels look for IAN assessment process

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

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

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

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

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

How will you deliver

Experience of pilots, prototypes etc

What is your sales / marketing plan

Scaling up plan

Risks / mitigating plan

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.

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.

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

Current / Projected for next 3 years

When will it break even

Self investment & funding received till date

Investment sought

Valuation expectation

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

Building an exit option is necessary for yourself, your team, and your investors

Investors will monetize their investment

How

When

What

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 !!

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 !!

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