What is Startup Angels Network?
Startup Angels Network is a platform setup by 100+ angel investors that aims to partner with innovative and passionate entrepreneurs. SAN is committed to fund, mentor and assist young businesses in growing. In the absence of any kind of mediation in evaluation, investment and deal sourcing, we are focused on bringing efforts, time and cost down. Moreover, SAN encourages budding investors in making a significant value proposition irrespective of how compact is their investment.
What is unique about SAN Investor and how is it going to be different from any other investment forum?
A diversified network of 100+ angel investors with a rich experience coming from different industries and geographical locations.
Comparatively lower signup fee than any other significant angel network
A great possibility of succeeding backed by the dexterity of industry professionals at SAN.
Since the funding is pooled by the group, your value proposition does not depend on the value of investment made by you.
SAN is committed to grow innovative businesses by funding, mentoring, guiding and providing an additional customer base.
Provides a proprietary deal opportunity by referring to the startups that are familiar to SAN members.
Is there any membership fee?
To make SAN sustainable, costs are kept as low as possible. SAN is for the members that seriously understand and identify value in any given startup where the cost borne by them. This includes the cost of analysis, consulting, support staff, admin and the required IT infrastructure. Members create a fund which goes by ‘annual subscription’. However, a potential member gets a free 1 month subscription to evaluate.
How do I evaluate if the forum is for me or not?
If you’re serious about one or more of the following SAN objectives, it is surely worth a shot:
Interested in learning how to invest and evaluate startups from the industry experts.
Interested in creating wealth by investing wisely
Open to share your investment related knowledge and experience with the other SAN members
Up for challenging your entrepreneurial skills as a mentor and guide to assist startups
Keenly Interested in evaluating startups as a business and investor solution provider following innovative ways.
How do I become a member of SAN?
To sign up as a member of SAN, one should be referred by an existing member. The member must provide the team with the complete profile including contact information, PAN number, Aadhar Card etc. The SAN management holds the authority to allow a member to join or to continue with their membership.
What privileges or benefits can I expect as a SAN member?
Following are the benefits that can be expected as a SAN member:
The member will have access to startup founders, pitches and webinars
The member will have access to evaluation reports constructed by in-house analysts.
Conference call with other members/founders of SAN
The member will be notified quarterly from the invested startups
Can I use SAN points to pay for SAN’s networking events? How can I earn them?
Yes, the points can be used to pay for the costs related to “SAN Investor”. The members can earn points by investing, referring new members, assisting and mentoring startups with business. The earned points can also be used to pay for the annual subscription.
When and where does SAN organize the group meetings?
Considering the scope of activities and wide geographical spread of the members, we intend to save time and meet once a month through a webinar once a month. Also, to enable a better level of networking, the group will annually meet in each of the three regions Bengaluru (For South), Gurgaon (for North) and Mumbai (for West).
What is the “Steering Committee”? How can one be a part of the committee?
The core committee comprises of the members of SAN investor that are ready to:
To dedicate a minimum time for regular SAN operations
Attain dexterity in the required aspects like, valuations, perseverance, business, industry or other areas and to take up the responsibility either for SAN or a given investment.
The core committee is aimed to be flexible with the time the member can devote and members coming in or moving out as per their convenience.
Can I promote my business and services on SAN?
Here we do not encourage the usage of the network for marketing and commercial purposes unless your business happens to exactly match a member’s query.
Can we seek SAN members’ company information for a survey or research purpose?
The members are free to initiate and drive discussions but as other members/ admin don’t hold the responsibility of not disclosing the information of such nature.
What does the rotation of a member mean? When and why does it happen?
When the members enjoying the evaluation period without the subscription opt not to subscribe, they can be rotated out of the group.
What posts are allowed on SAN forum? Are there any guidelines that are needed to be followed?
Only the posts related to startup investments can be shared on the forum. To maintain a focused environment, posting jokes, random images, birthday wishes, festive greetings, political opinions are strictly prohibited. A member still willing to post something like that would have to donate 200 points per share. So, SAN’s guidelines are aimed at enabling connection on a personal level.
How can I refer new members to the forum?
An individual interested in joining the forum needs to be referred by an existing member. A note introducing a new member can be sent to [email protected]
Which asset classes does the scope of SAN include? What are the exclusions if any?
Considering the nature of SAN membership, initially the focus will be on the investment in startups. Since, many of the members hold senior designations in listed companies, listed stocks would remain outside the radar of this group. However, other asset classes can be included over time as per the requirements: real estate, debt amongst others.
What is the mode of investment that SAN Investor follows?
We aim to keep the investment process as simple as possible allowing a member to invest directly as an individual. The transaction and T&C like Standard SHA terms, evaluation sheets, valuation etc. would be directly between the member and the startup( With the guidance and mentorship of the core leadership team of SAN).
On the other hand, for a given investment, the members can join hands to form an LLP specific to that particular asset. Here, the individual investors invest in the LLP followed by the LLP investing in the startup. Either the individual investors or the startup take the accountability of managing admin work and compliances for the LLP.
How do startups get referred to SAN? Can the startups where I invested earlier be referred?
Any member can refer a startup to the forum as long as they personally know the founders. Here we prefer proprietary investments at reasonable valuations over startups at a comparatively higher valuation. All the members will be provided with a link that they would share with the startup to let them apply for consideration by the core committee so that it can be evaluated on the basis of evaluation criteria. SAN doesn’t restrict any startup on the basis of industry and the incorporated technology.
If I want to refer a startup to SAN, how should I connect SAN to the founders of the startup to raise funding from here?
Highlighting the below given benefits could be your pitch to the founders of the startup you’re planning to refer:
What operating rhythm can be expected in SAN? What all activities are a part of the curriculum?
SAN will have a standing call on 1st, 3rd or 5th Saturday every month. There could be an increase in this frequency depending on the requirements. The following can be expected on the standing calls:
Does SAN expect any investment principles to be followed?
Considering the risk involved in startup investing, it is essential to follow a defined approach to pull out the high-risk candidates. So, a set of defined investing principles has been constructed upon the wealth of literature published and using the hands on experience of the steering committee. These investing principles would be integrated into the evaluation sheet published by the analyst at SAN.
How can we negotiate on the valuation of a startup?
Steering committee along with the referring member or the lead member opens and leads the discussion on the basis of feedback after the webinar. It is to notify that the valuation agreed upon will be the same for all the investing members.
Can we directly seek a startup’s financial information?
SAN will connect an individual investor to the lead investor who will directly arrange the information from the founders of the startup. However, SAN can not be held responsible for the confidentiality of the same.
In the forum, what are my rights as an investor?
Being an individual investor, you’re free to sell or purchase shares as per your own discretion anytime.
As a SAN member, what are the T&C to be followed?
You’re expected to keep SAN discussions confidential.
The exchange of opinions and discussions followed by the final investment decision is solely dependent on the individual investor’s discretion and SAN isn’t responsible for the investments made by the members.
The members are free to invest or have B2B deals or both with the startup
Since it is a collective effort, SAN doesn’t guarantee any returns
The members are obligated to manage ‘conflict of interest’ and not SAN.
Neither does the member owe their earnings to SAN nor SAN is liable to take care of any possible losses in an investment.
How can I get more information about SAN?
To get more information on SAN, you may write to [email protected] with the following details
• Your Full Name
• Current Designation & Company
• Email ID- Personal and Professional
• Contact Number
• Expression of Interest or purpose of contacting
What is SAN? Who are SAN members?
SAN is Startup Angels Network which is focussed on engaging and encouraging entrepreneurs. A group of active and enthusiastic entrepreneurs o form the core team of SAN which carries out initial assessment of recommended start-ups. It is an independent group aiming to connect start-ups with serious investors willing to mentorship in critical business areas. SAN is about applying diversified knowledge of members in a collective fashion to an investment opportunity in the absence of any kind of mediation in evaluation, deal sourcing and investing. Moreover, SAN is focused on new investors making significant value proposition irrespective of the size of investment.
What are the benefits of the association with SAN? How is it distinct from other angel investment networks?
What are the criteria for a startup to be considered by SAN?
SAN takes up funding for early stage start-ups that have successfully cleared the proof of concept stage are standing between Validation and Build Stage, i.e pre-seed and seed funding. SAN prefers startups with a pre-money valuation of less than INR 50 Cr. Minimum ticket size investment is finalized on a case to case basis.
What is the mode of investment offered in SAN?
Following are the ways in which SAN can invest with you
SAN’s designated lead member will negotiate the common T&C on behalf of the other SAN members while independent SSA & SHA will be signed with investors
SAN can pool in funds and invest with the startup in the form of an LLP
What will be the form of investment: a private equity or venture capital?
SAN aims to bring the expertise that is usually provided at the venture capital/ private equity stage to an early stage firm. In order to guide a start up and monitor the way it’s performing, SAN will act as a large fund with the ability to guide and help the startup on the requested front without interfering with the decision making process of the startup.
What is the process of closing a deal at SAN?
The startup being considered for the investment needs to be recommended by an existing SAN member who personally knows the founders.
The start-up turns in their pitch and SAN self-evaluation form highlighting details of the problem statement and solution that the business idea aims to offer.
The core SAN team evaluates the pitch and carries out an internal discussion on the feasibility of the business idea and shortlists the most promising one from the lot.
The shortlisted startup gets uninvited to present their business case to a larger audience in a webinar so the startups get to connect with SAN members located at different geographies. The webinar audience’s details won’t be disclosed at this stage
The startup will be assigned with a lead member and a lead analyst who will work with you in taking this forward.
A detailed feedback report will be released post webinar covering the aspects like pitch, team presentation and Q&A session.
The startups can be invited for B2B opportunities directly by CXOs of various companies and/or the second second round of evaluation by SAN on financials and growth forecast.
The assigned lead member will connect you with investors and will guide you carrying our collective negotiations and close out the documentation.
Does SAN charge a fee?
Yes, SAN charges a nominal amount to keep the initiative sustainable. It covers the admin and other evaluation related costs. It is a mutually agreed upon percentage of total funds raised via SAN including the B2B deals that may be signed.
What is the expected remuneration for advisory and consulting services provided by SAN investors?
T&C for consulting, number of hours dedicated etc. will be mutually discussed and finalized on a case to case basis.
To what extent SAN will be involved with startups?
SAN’s involvement depends on the existing shareholder structure and the size of investment done by SAN. The group will focus on growing the start and help them prepare for Series A funding. SAN also introduces and recommends the startup to Venture Capitalists from their network.
What would be individual investors’ rights on SAN?
Individual investors will have the right to be able to sell or purchase shares as per their own discretion. SAN won’t be responsible for the exit of any individual investors either individually or collectively.
What are the responsibilities and rights of SPOC assigned to the startup?
SPOC is there to ensure hassle free negotiations and effective communication wherein the startup will be dealing with only one SAN representative. However, SAN offers the flexibility to individual investors to reach out to the start-up directly.
What would be the startup’s obligations?
It is to note that trust and enduring relationships directly depend on the level of transparency maintained by both parties. The startups obligations are categorized as pre investment obligations and post investment obligations.
The startup founders are expected to behave professionally throughout. You should be informed that the CXOs with great influence come from diverse backgrounds and geographies.
The startup founders are expected to cooperate with the lead SAN member and analyst assigned to them and shall provide them with requested information on time.
The negotiated T&C are intended to to protect the interests and concerns of both the parties.
The startup is expected to accept the feedback maturely even if the investment proposal doesn’t go through.
After signing SHAs & SSAs and receiving funds, the startups are expected to maintain timely communication of the business metrics and other updates.
Any major alterations in the business model or the shareholding structure are expected to be discussed upfront with SAN SPOC or investors.
Although SAN doesn’t intend to interfere with decision making of startups however founders are expected to include SAN in critical discussions in order to protect the trust built between the two parties over time.
How do we reach SAN for possible investment opportunities?
Write to [email protected] with the following details:
1. Start-up’s Name, Industry and the founding date.
2. Start-up Concept: One liner about what your Start-up does.
3. Founders’ Full Name & Linkedin URL
4. Founders’ Contact details- Email address/ contact number
5. Name, designation and company of the person, who referred you to SAN
6. Expression of interest: A brief on the areas that you need SAN’s support
Becoming a part of SAN community help startups to get connected with their peers in the ecosystem. Startups can request a connect with any startup/VC/Media which eventually helps in getting clients, enabling partnerships and exploring strategic solutions.