Angel Investors are high net-worth individuals who invest their own money in start-up companies in exchange for an equity share of the business and who can add value to the company by providing proactive advice, industry connections and mentoring support. Unlike a bank loan or other types of debt financing, equity capital gives an ownership interest in the company invested.

Most angel investors are entrepreneurs, corporate executives or high net worth individuals who have the knowledge, experience, connections and funds that help start- ups match up to industry standards. Angels tend to invest in companies that are located near them regionally or co-invest in a wider geography if a local investor they trust is involved.

Angels typically look for “scalable” businesses that have the potential for great growth and a clear path towards profitability. They make investments in order to gain a return on their money, to participate in the entrepreneurial process and often to give back to their communities by catalyzing economic growth. Angel Investors make return on their investment  when  the  entrepreneur  successfully  grows  the  business  and  exits  it, generally through a sale or merger.

Since “Angel Investments” are done in early stage start-up companies using a high-risk, high-return matrix, there is a possibility of some of the investee start-ups to fail within the first five years of their operations. The secret recipe for getting a good ROI is to diversify  your  investments  into  multiple  startups,  so  that  the  ROI  matrix  is  made positive. Angel investors should look to position themselves as investors in at least 10 startups in order to play the startup game right. However, carefully selecting your picks and knowing in who you are investing is very important. The right way to play this game is to be an integral part of the investee company and not staying away like a stock market investor.

Native Angels Network Association (NAN) is a forum for Angel Investors who would invest in innovative ventures rising from their own native regions. NAN is supported by Nativelead Foundation, a non- profit organization working in the space of Start-up ecosystem building in Tier II & III regions with the participation of the respective native community.

In this era of knowledge economy, a particular region or country will become fundamentally strong only when it has powerful brands and intellectual properties (IP) based on innovative and scalable ideas. Nativelead Foundation is engaged in motivating and mentoring young entrepreneurs to work on such initiatives. However, these efforts will be meaningful only when supported with necessary financial investments in time. Conventional mode of funding is a complicated option. The present world is fast embracing  the  new  model  of  risk  investment  in  the  names  of  Angel  Funding  and Venture Funding. NAN is one such funding facilitation forum with a very unique conceptual model designed to suit Tier II & III regions.

The reason behind the success of America’s Silicon Valley (area of technology ventures) was mainly because of the active presence of the new-age asset classes like Angels, VCs (Venture Capital) and PEs (Private Equity). These are dynamic investments which require special skills and passion to promote entrepreneurship. In India, this culture is catching up in large metros, Bangalore being the most vibrant place where most number of investments taking place. However, the large angel investor networks operating in big metro cities are looking for relatively larger investments.

In developing Tier II & III regions, the needs, exposure and characteristics (at the early stages) of young entrepreneurs are much different when compared to that of large metros. After several rounds of brainstorming and analysis with country’s leading Angel Investment domain experts, we have devised a unique model to support the early stage ideas rising from these regions. This model has both profitability as well as social angle. An ideal NAN member would have a conceptual thought process of “My role here is to evaluate the potential entrepreneurs rising from my native region and invest in their ideas. By investing, I become part of their team and mentor them to my best. In the process, they grow, I grow and my native region grows”.

∙    NAN looks at investments starting from INR 1 million to 40 million.

∙    High investments will be done in syndication with other funding agencies.

1) An individual or an organisation can become a member after clearly understanding the concept dynamics and model.

2) NAN members may call a secretarial representative to have an orientation anytime of their membership about the operational framework.

3) NAN would coordinate activities such as:
–     Membership drive

–     Knowledge Sessions

–     Identifying entrepreneurs

–     Evaluating and preparing entrepreneurs

–     Organize different types of pitch sessions (phone/video/direct)

–     Help providing requested details to investors on entrepreneurs and their ideas

–     Upon interest, assisting in closing the deal with the entrepreneur

–     Assisting in arriving at investment deal structure among investors

–     Managing the comprehensive due diligence aspects

–     Managing the Investment process and legal documentation

–     Post investment follow ups and reporting coordination upon request by the board

4) NAN would continuously work on identifying and evaluating innovative ideas in the market and organise regular pitch sessions through phone, video meeting or in-person based on the prevailing situations.

5) The interested  investors  may  seek  for  a  deeper  understanding  of  the  idea  and entrepreneur. NAN would organise such meetings and manage the progressive encounters to closing the deal successfully.

6) Upon successful deal closing, all the due diligence and documentation will be done by NAN or under the supervision of NAN.

1) High net-worth Individuals or Institutions can become members of NAN on payment of the requisite subscription  and signing of the framework,

2) Individual members are inducted in their individual capacity only and not as representatives of any organisation. Members in this category can make investments in the NAN investee companies only in their name (this of course includes jointly with family members or through wholly owned personal investment companies or trusts).

3) Institutional members will be joining as representatives of an institution. Any investments made in ventures would need to be in the name of that institution or only one authorized representative under annual membership.  Any director/partners of a subscriber company can participate in investments when you sign up for 5 year or Sponsor options.