FAQs for Investors

 

1.   What is Lead Angels?   

Lead Angels is a full stack early stage financial services company. It comprises Lead Angels Network, Lead Advisory and  LA Management & Professional Services. 

 

2.   What is Lead Angels Network? 

Lead Angels Network facilitates early stage investing upto 300 lakhs. The company acts as a facilitator and undertakes secretarial functions on behalf of Lead Angel Network members. The primary tasks including search, identification and shortlisting of promising startups and then assisting members to evaluate and invest into selected companies.  

 

3.   Who are Lead Angel Network members?

Lead Angel Network members are successful entrepreneurs and business professionals who want to invest in early stage companies and also support them with their expertise and networks.

 

4.   When do the investors meet? 

Lead Angels Network currently operates chapters in Mumbai, New Delhi, Hyderabad, Bangalore and Ahmedabad. These meetings are conducted once a month.  

 

5.   What happens during these meetings?

During these meetings shortlisted companies for investment make a presentation followed by a question and answer session. Post this the members discuss the company prospects amongst each other. Interested members then undertake a business review of the company and if suitable finalize investment terms with the company assisted by the secretariat. 

 

6.    What happens after the finalization of investment terms?

After the investment terms are finalized, there is a investor call where the deal leads discusses the investment opportunity with other members and gives reasons for investment. Members seek clarifications and also share their views on the company. Based on this call, all members are given an opportunity to commit investment into the company. This is entirely voluntary and at the discretion of each individual member.   Finally based on the commitments received, a term sheet is issued to the company on behalf of the investors. 

 

7.    What are the typical terms of investment?

The typical terms of investment include an appointment of a board observer from one of the investors whose confirmation is required for certain decisions made by the company. They also include a clause to ensure that the investors receive a certain minimum return on their investment in case of acquisition before other shareholders can receive their share of the proceeds. 

 

8.    What happens post term sheet? 

 Once the term sheet is accepted by the company, the secretariat undertakes financial and legal due-diligence that is conducted by professionals, which if satisfactory is followed by documentation for the investment, transfer of money to the company and issue of shares to investors. 

 

9.    Does Lead Angels Network member have any other cost? 

Members do not have to pay any costs for due-diligence, documentation and other related costs for making the investment.  

 

10.   Is there a minimum investment?  

The minimum investment is currently INR 5 lakhs. In some exceptional cases it may be higher. 

  

11.   What is the support Lead Angels Network provides post investment? 

The network takes the support function for startups very seriously. Post investment the team works with the startup to assist it key areas like future capital raise, M&A, business connections, media and talent search.

For subsequent fund raise, Lead Advisory Services provides assistance to portfolio to connect with institutional investors. For compliance and other services LA Management & Professional is available for support.

 

12.   What is the timeframe for angel investments?

While it is difficult to predict the fate of a company however one can expect that within two to three years, the company if it has done well would be valued at 4-10 times its original valuation and potentially ready for angels to exit. 

 

13.   Any other expectations?

Lead Angels is a strongly ethical organization and does business with those who come with a strong ethical background. Our reference checks for members and entrepreneurs focus on these aspects. 

 

14.   How do I become a member?  

Please visit https://www.leadangels.in/invest-in-startups/

 

15.   Whom do I contact for investment beyond 300 lakhs

Please contact info@leadadvisory.in

 

16.   Whom do I contact for other queries  

Please write to info@leadangels.in