Investment Process

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  • Deal Sourcing

  • Secretariat Screening

  • Advanced Screening

  • Formal Presentation

  • Due Diligence

  • Execution

  • Mentoring

  • Exit Strategy

Step 1: Deal Sourcing

Sarthi Angels Venture Foundation will source deals from the following:

  • Website – Entrepreneurs can submit their business plans on our website by filling a form Here
  • Angel Circle – Angel’s personal network of contacts – including trusted business associates – is a key source of deals
  • Venture Capitals/ Private Equity – Our Sarthi Advisors division has good relationships with PE/VCs
  • Professional Sources – Attorneys, CAs, LLBs and Consultants provide us with access to a considerable number of entrepreneurs seeking funding
  • Entrepreneurs – Previously funded entrepreneurs have an already established relationship with us
  • Merchant Banking and Investment Banking – Sarthi Capital Advisors and Sarthi Advisors can help us with their relations as well as their expertise

You can download our business plan templates which have been designed to show the key information that our Angels want to see and will guide you through the process of creating a short and punchy Summary and a more in-depth Business Plan.

Step 2: Secretariat Screening
  • The business proposals which we will receive will be scanned on the basis of various parameters.
  • After reviewing the business plan, initial interview would be held to determine if your idea could be of interest to our members.
  • If the business plan is selected but requires refinement or guidance, the Secretariat will help entrepreneurs make their business plan “presentation ready” and would help in preparing Information Memorandum to be presented in front of the Committees.
  • Before meeting the Angels, we will train entrepreneurs for presenting the business plan to the Angels to ensure a less contentious, less stressful, and more efficient path to close.   
  • The Secretariat will also coordinate for the initial due diligence of the promoter/ business as required. Due diligence can be boiled down to validating the plan, uncovering the missing pieces and defining the unknown to contain and define the risk of an investment.
Step 3: Advanced Screening by Committees
  • The Management Committee (MC) reviews the business proposals that are selected by the Secretariat after reviewing the proposal on various aspects. Along with this, the Management Committee will also work out an exit strategy for the entrepreneur.
  • The Advisory Committee (AC) consists of Angels having sector specific knowledge. It reviews the business opportunity according to their sector expertise and determines if it’s a good fit. The Advisory Committee can act as a mentor and guide the company at strategic levels.
  • The Investment Committee (IC) consists of independent designated fund managers. IC will review each proposal with the self expertise and knowledge they possess. IC will also review and finalize the exit strategy.
Step 4: Formal Dinner Presentation
  • The selected proposals would get a chance to present in front of the Angels. Before the presentation, members usually receive a summary about the investment opportunity and some preliminary information on due diligence.
  • An entrepreneur’s short pitch will be followed by Q&A session will to further examine the opportunity.
  • In order to proceed to the next stage, the company will need to secure a Lead Investor that is already a Member of the Sarthi Angels Venture Foundation.
  • If the company is successful in gaining a Lead Investor from the existing members, then during formal dinner meet the Lead Investor will ‘defend’ the pitch on behalf of the entrepreneur.
Step 5: Due Diligence
  • The amount of time that we invest in due diligence is directly correlated to the amount being invested.
  • Thorough due diligence is required to ensure the risk mitigation.
  • Our analysts will perform due diligence from legal, business and financial perspective along with assessment of investment opportunity from standalone and holistic approach.
  • During due diligence, interested investors will examine the statements made in your business plan, presentation, and financial projections.
  • Detailed check on the background/experience and track record will be performed to ensure that the investment decision is free from any material fraudulent activities.
Step 6: Execution
  • After successful completion of the due diligence process, interested members will present 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 the representation on the Board of Directors, determining prospective valuation and pricing, etc.
  • The negotiations will take place on various aspects of the investment and the investment decision will be finalized on mutually agreed terms and language.
  • Both sides may wish to instruct legal counsel to assist in the final negotiation and drafting of Shareholder Agreements.
Step 7: Mentoring
  • Closing the deal is only the beginning of the involvement of Sarthi Angels in the company.
  • The main reason Angels Groups have been so successful to date is because of the active involvement of the Lead Angel (i.e. the Lead Investor) in mentoring the business in the long-term.
  • Proactively leveraging the network of contacts and effective monitoring on the business operations by investors will ensure value creation.
  • Invested Angels along with Sarthi Angels may further need to arrange discussions with other investors for “follow-on funding” should the business plan require this.
Step 8: Exit Strategy

Sarthi Angels Venture Foundation will formulate and execute the exit strategy after defined time horizon by reviewing the various options available:

  • IPO
  • M&A
  • Further round of funding
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