Join us as a lead angel!
Angel syndicate investment bridges the gap before VC investment. Angels invest pre-seed to seed-stage rounds of on the average of €50k-500k.
To make the angel investment happen, there needs to be a lead angel to carry the weight and lead the wolf pack.
Lead Angel group consists of EstBAN members willing to go another mile.
- 2% of shares lead angel fee, in case the round is closed.
- First in line for promising deals
- Karma points for leading the round from start to end
Role and expectations for the lead investor
– Understanding the product and market
How big is the Serviceable Obtainable Market and is it well above €10M?
Which other market segments can be served after obtaining the SOM? It’s better to obtain 30% of the very narrow niche than 0,0003 % of the huge market.
– Meeting the team
- Meet all the founders.
- Understand how the team works – is it a one-man-show or teamwork?
- Do all the founders have enough ownership or options to remain motivated?
- Do the founders have reverse vesting?
- Is there option pool for the employees agreed?
– Conducting due diligence (see the DD checklist)
It is easy to exhaust the startup with too deep of a DD at this phase, but still there are some things that are must-haves.
- Shareholders or founders agreement with founder vesting terms
- IP rights
- Bookkeeping and finances
- Articles of association
– Understanding the risks startup is facing
From the investors point of view, all after Product, Market and Team comes down to risks and closing them. Each round of financing should close one risk for the investors.
– Negotiating the (agreement) terms with the founders
Too high of a valuation might make getting the investment difficult if not impossible and also future rounds difficult. There are some cases of too low valuation in very early stages. You should also avoid passive financial investors having more than 30% of equity in very early stages of the company.
- Making sure the cap table is not spoiled with many tens of small angel investors- those should be hidden behind one SPV.
– Helping to find other investors for current and following rounds
- Introducing the team to other investors and relevant connections
- Holding the communication lines between the team and fellow investors
- Providing updates for the syndicate members
Ask more from email@example.com and sign up as a lead investor!