These individuals have expertise in business domains in various industries – with skill set and experience to distinguish a good venture from a bad one. This model is different from the traditional VC’s and PE models, which have more rigid investment guidelines. It is an organization of people with a common goal of enhancing value of multiple businesses at the same time. Calcutta Angels Network’s main goal is to provide capital and guidance to start-ups and at the same time offer an opportunity for Angel investors to gain financially through networking, mentoring and education.
Membership includes Individual Members and Institutional Members. Individual Members may include a member who has an inclination to invest in a start-up organization and is interested to not only invest money but also time and energy for the growth of the start-up. Further, CAN strives for diversity of member base from different industries.
Individual members are inducted as members in their individual capacity. A member of the Calcutta Angels can also be a member of other Angel groups. However, it is assumed that he or she will not share deals or deal flow information without the consent of secretariat and Investment committee.
New members can join Calcutta Angel’s by calling/ mailing the secretariat and are required to get a reference from an existing Angel member. They will have to be approved by the Membership Committee. All members will sign a ‘code of conduct’ guideline and adhere to them at all times. Disciplinary action may be enforced if these guidelines are broken.
Institutional members can join the Calcutta Angels Network with 2 members of the institution being nominated on behalf of the institution. However, the fee for institutional members will be higher than that of the individual members. Fiduciary ownership of the investments made in that case will be in the name of the institution. Examples of Institutional members could be Venture Capital Funds or Private Equity Funds or a Company, Institution or an endowment with capital set aside for entrepreneurship and early stage funding.
Calcutta Angels will also develop close ties with other like-minded institutions to make larger co-investments and provide value to investee companies.
We are sector agnostic and are interested in for-profit, innovative, tech startups.
Calcutta Angels Network primarily focuses on Angel or seed stage investments. We have actively co-invested in some of our portfolio startups.
Criteria would be briefly:
-Quality of Team
– Market Size
– Financial Viability
Investments are typically made by the concerned Angel members by direct subscription of shares into the company.
All investment decisions will be made individually by the investor or the institution and they are solely responsible for their decisions. Secretariat will not do due diligence related to the numbers and the viability of the business model. Investee Company seeking funds will be explained in advance by the Calcutta angels the framework of how the Calcutta Angel functions, so that there is no ambiguity later.
One or two Angels can assign themselves as Deal Champion for the investment they are making in concurrence with the Angel group investing. Typically, members will invest some amount of time in strategy and other operations of the company in the spirit of entrepreneurship. Deal Champions are incentivised as they spend considerable amount of time compared to other Angels. Deal Champion may or may not be the largest investor in terms of investment of capital among the Angel investors.
Deal Champion 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 (as often as required) to work the details of the investment. It is expected that an investment decision will be communicated to investee within 60-90 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 deal champion among its sub-group members Deal Champion 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 maybe of the same size and all the angels may not 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.
No person outside of membership can participate in the sub-group meetings, unless specifically approved by all investors to help evaluate the investment. They will not be authorized to invest.
It is expected that no Angel member will cut a deal with the entrepreneur individually after the monthly meeting. If it comes to the notice of the organization that such a thing has happened, disciplinary proceedings will be conducted and if proven guilty, membership will be suspended. Investee will also be never allowed to seek funding from the organisation.
Similarly, Angel members are expected to follow strict code of ethics and conduct. Any deal discussed will not be deliberated by its members outside of the meetings. If it comes to the notice of the organization that such a thing has happened, disciplinary proceedings will be conducted and if proven guilty, membership will be suspended. Investee will also be never allowed to seek funding from the organization.
Whatever deals discussed in the meeting should not go beyond the four walls and angels will adhere to the code of confidentiality. Angels will not inform any other person or organization and will not make private deals with the entrepreneur without the consent of the Managing Committee. Also member or institution should not have a parallel discussion or enter into an agreement with the entrepreneur while discussions are in progress between Angels and the entrepreneurs.
If any member has already worked with the entrepreneur or seeking funds on behalf of the entrepreneur, Angel should notify the secretariat immediately. And if he or she becomes aware of such a deal during the meeting, Angel should notify the other members and may have to excuse themselves depending upon other members wishes for that particular deal.All members will sign a document adhering and abiding by the above principles.
Primary source of deals to the Calcutta Angels are the member referrals and through the strategic alliances as such members are encouraged to bring them to the attention of the secretariat to be tabled to the meeting.
Member Angels and strategic alliances with other angel groups will be the primary source of deals. Deals typically will come based upon word of mouth, contacts of members, and marketing of the organization, web site and other internet marketing tools such as Twitter and Facebook.
The Secretariat reviews all the applications. If, after reviewing the business plan, Secretariat believes that the idea could be an attractive investment opportunity for some of our Members, then the secretariat collects further information by meeting the startup personally or through phone calls. Once the secretariat is satisfied then they forward the details with their comments to the Deal Screening Committee.
The Deal Screening Committee (DSC) then finally vets the applications and shortlists few applications further. The DSC then engages in an interactive session with the shortlisted teams via voice / video conference. Based on the conversations, they select 3 who will be invited to deliver a pitch to the members. Please note that we will only invite the entrepreneur to one of these sessions if we believe the entrepreneur has a realistic chance of securing funding from our Members, therefore a significant proportion of applications will be turned down without the Calcutta Angels ever meeting the entrepreneur in person.
Each company would be allocated a 25 minute slot (10 mins presentation and 15 mins Q&A). In order to proceed to the next stage in our process, the company will need to secure a Deal Champion that is already a Member of the Calcutta Angels.
Like most Angel groups, the amount of time that we invest in due diligence is directly correlated to the amount being invested. However, each member will look at the deal individually and holistically to see if the deal is appropriate based upon host of criteria such as risk appetite.
This is because Angels invest their own money, and therefore choose to rely on their instinct, experience and the opinions of other Members, rather than relying on an expensive and time-consuming due diligence process designed to verify the statements made in the business plan, presentation, and financial projections.
However, as many of Angels primarily invest in people, they are likely to want to hear more about the team’s background and track record. If the entrepreneur play’s an active role in facilitating this process, it will help to expedite a final investment decision from our Members.
After successful completion of the due diligence process, interested Members will present the entrepreneur with a Term Sheet that defines the structure of the investment deal – including the amount / type of equity, as well as rights relating to our representation on the board of directors, amongst other things.
When all the 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, and if for any reason the deal does not close then our Members’ legal costs will be borne by the Interested Angels. However, please note that it is much more common for the deal to close relatively smoothly at which point our Members’ legal costs will be passed on to the entrepreneur (subject to the cap in fees agreed during Step 5).
Note: Members will invest directly into the company not through Calcutta Angels. Calcutta Angels will only facilitate the deal.
Closing the deal is only the beginning of the involvement of Calcutta Angel’s in the company. The main reason Angels groups have been so successful to date is because of the active involvement of the deal champion in mentoring the business in the long-term. They are able to proactively leverage not only their own network of contacts, but also the contacts of every other Member of our group – as well as helping to arrange discussions with other investors for “follow-on funding” should the business plan require this.
Calcutta Angel Network believes that early stage businesses require more than just money to succeed. They require close mentoring and inputs on strategy as well as execution. The Network aims at enhancing the success rate of early stage businesses significantly through mentoring, networks and inputs on strategy as well as execution. The Network enables members, to come together and use their experience and their skill set to better able to assess the potential. Calcutta Angels is a network of Angel investors keen to invest in early stage businesses, which have potential to create disproportionate value.
Calcutta Angels is sector agnostic .