- Angel investments could be up to Rs 2 Crores. With seed stage funding between ( >=25 Lakhs < 2 Crores) and early stage between (> 1 Crores <= 2 Crores), and exiting over 3 to 5 year time frame through an IPO, merger or strategic acquisition.
- Investments are typically will be made by the Angel member by direct subscription of shares in to the company.
- All investment decisions will be made individually by the investor or the institution and solely responsible for their decisions. Secretariat will not due the diligence related to the no.’s and the viability of the business model. Investee Company seeking funds will be explained in advance by the Hyderabad angels the framework of how the Hyderabad Angel functions, so that there is no ambiguity later.
- One or two Angels can assign themselves as lead investor for the investment they are making in concurrence with the Angel group investing. Typically, all the members will invest some amount of time in strategy and other operations of the company in the spirit of entrepreneurship. Lead Investor(s) can negotiate with other angel investors to incentivize himself or herself, if they spend considerable amount of time compared to other Angels. Lead Investor may or may not be the largest investor in terms of investment of capital among the Angel investors. Lead Investor(s) may negotiate on be-half of all the other investors with the entrepreneur.
- Angels who are interested in a particular investment will meet as a separate group away from the Monthly meeting to work the details of the investment. It is expected that an investment decision will be communicated to investee with in 60 days of short listing by the secretariat. It is entirely up to the sub-group members to mutually agree on the amount of individual investment, select a lead investor among its sub-group members, and the incentives to be given to the Lead Investor (s). Lead investor(s) may lead the discussion on the deal valuation, structure and closure of the deal with the investee.
- Each of the sub-groups of the separate investment may meet on ad hoc basis to discuss the investment. Secretariat will not be involved in such meeting and will keep a record of such meetings for tracking purposes only.
- Not all investments by the angels may of same size and all the angels may have the same background. Angels of different background are encouraged to invest to give a different perspective. Also, Angels may invest in a company at different times at different valuations and at each round new Angel investors may join.
- It is expected that the Angel Members will work jointly with the entrepreneur to make the venture successful, where they have put time and money.
- Angel Investors Sub Group will work with the investee in selecting a board member(s), advisors among its members who will spend considerable time in guiding the company. This member may or may not be the Lead Investor(s).
- Such Board members and advisors may be compensated by the investee company for their time and services. All Sub Group members are to be informed of any decisions taken related to the compensation and benefits derived.