Step 1 – Business Plan Acceptance
Hyderabad Angels sources deals through various channels –
- Entrepreneurs -who can submit their business plans directly on our website or write to us at email@example.com
- Member angels
- Investment Banks, Angel networks and other partners
Step 2 – Secretariat Screening
If, after reviewing the business plan, the Secretariat believes it is an attractive investment opportunity, entrepreneur will be invited to deliver a 30-minute pitch to our members in Hyderabad.
We receive substantial number of applications and most of them are turned down without HA meeting them in person. Only entrepreneurs who have convincing and realistic probabilities of securing funds are only invited to pitch at the session.
Step 3 – Formal Presentation
Our angel meeting is held on every second/third Friday of a month where usually three-four companies are selected to present. Each company is allocated a 30 minute slot, (20 minutes for pitch and 10 minutes for Q&A session). A thorough discussion of each investment opportunity (i.e. presenting company) takes place. In order to proceed to the next stage in our process, the company will need to secure sufficient interest from our members in terms of soft commitments.
Step 4 – Due Diligence
If a company receives sufficient interest from the members, the Secretariat proceeds to perform a detailed business due diligence. This is to ensure the sanctity and hygiene of the company with regards to the business plan, team background, track record, financial projections, industry overview, competitive landscape etc.
The Secretariat prepares an investment memo which is circulated to the members. Member provide their hard commitments after reviewing the investment memo based on their risk appetite and interest.
Step 5 – Term Sheet Negotiation
After successful completion of the business due diligence process, Hyderabad Angels will share a termsheet with the entrepreneur that defines the structure of the investment deal – including the amount / type of equity, rights of Hyderabad Angels post investment, amongst other things.
Step 6 – Legal & Financial Due Diligence
When all parties are satisfied with the terms and language contained in the Term Sheet, the deal can be executed. Both sides may wish to instruct legal counsel to assist in the final negotiation and drafting of Shareholder Agreements, etc.
Step 7 – Execution
Once the due diligence process is through and no adverse findings are noted, we move ahead with the execution of documents and wiring of money.
Step 8 – Beyond Funding
Closing the deal is only the beginning of the involvement of Hyderabad Angels in the company. The investors would proactively leverage not only their own network of contacts, but also the contacts of every other Member of the group. We would also help to arrange discussions with other investors for “follow-on funding”.