Frequently Asked Questions
Below are some of the most frequent questions asked. Kindly do email us at email@example.com if you have a question that is not listed below.
What is the Legal struture of IIM-CAN?
IIM-CAN is a private initiative by a group of alumni with a Vision & Concern for the IIM Calcutta (IIM-C) fraternity, the legal entity behind IIM-CAN is Joka Angel Network LLP.
Is IIM-CAN structured as an angel fund?
No, we are not registered as an angel fund, individuals will invest directly. We may form an LLP as an SPV to channelize the investments as a single entity, to help keep the cap table of the investee less cluttered. However, the decision for angels to invest directly in the investee or via an LLP would be taken by the Deal Lead.
What’s the difference between Angel Fund and Angel Group?
An angel fund is a SEBI registered Category I AIF (Alternative Investment Fund). Here angels are LPs (Limited Partners), which means that they don’t have any say in the investments of the fund (akin to investments in Mutual Funds). That responsibility lies with the Fund management team and thus it is a passive investment. The investors in the Angel fund get regular reports on the performance of the fund.
Investing through an angel group on the other hand means that the angel is in charge in an angel group:
- he or she can decide which company to invest in and which to skip
- the angels can be passive (only investing money) if they want
- the angels can adopt a hybrid model, viz be active in deals in sectors they understand well and passive for other industries
Who is a Deal Lead?
Every transaction would have a Deal Lead who would be responsible for putting a deal in place, IIM-CAN would provide all the support needed, but the transaction would be primarily driven by the Deal Lead. The Deal Lead would also be responsible for mentoring and monitoring the investee, IIM-CAN will provide them requisite assistance for the same. If there is no Deal Lead then one person from the IIM-CAN team will function as a Deal Champion and fulfill the role of the Deal Lead.
Why do you call yourself Social Capital?
Social Capital refers to the ability of IIM-CAN to leverage the personal relationships and networks of IIM-C Alumni for the success of the investee company.
Who is eligible to join IIM-CAN as angels?
Eligible Angels are those that have done at least a 1-year full-time course from IIM-C (or their spouse or parents)
Do you have any membership fees or admission criteria?
An IIM Calcutta Alumni/spouse or parent of IIM Calcutta Alumni who has signed up using the angel investor form and has paid the annual membership fee, currently at Rs 11,800 (plus GST if applicable), and has signed this membership terms and conditions document is a full member of IIM-CAN. Individuals and organizations can be members of IIM-CAN.
Does the network solely invest in IIMC entrepreneurs?
Entrepreneurs from IIM-C would get the preference in raising funds through IIM-CAN, but IIM-CAN actively considers and invests in non-IIMC founders as well.
What is the process for identifying potential companies?
The startups would be screened using the framework developed by Hackstrap. Hackstrap gives a HIS score up to 100 and IIM-CAN would short-list those deals with a minimum score of 65 and shortlist a few for further evaluation. We also get deal references from angel networks, incubators and accelerators, etc with whom we have partnered with.
Which sectors would IIM-CAN invest?
IIM-CAN is sector agnostic, having said that the preferred sector are: AgriTech, CleanTech, BioTech, Deep Tech, SaaS, Gaming, FinTech, HealthTech, EduTech, D2C.
For Each of the sectors above, we have a cohort of IIMCIANS who are industry experts in that space and can add serious value to a company by way of references, networking, guidance & mentorship.
What is the minimum amount to invest in a deal?
The minimum investment required from an interested angel is Rs. 200,000/- in most deals. In a few cases, it could go up to Rs.500,000/- or more.
What is the deal size of IIM-CAN?
The size per investee company would be Rs.50 lakhs to Rs.300 lakhs, though for most cases it could be around Rs.100 lakhs. IIM-CAN would be open to co-invest with other investors including other angels, angel groups, family offices, and VC funds.
Who are the team behind IIM-CAN?
What is the role of C-Marketplace, Hackstrap and Edge IB?
All three are seprate legal enteties that offer external and operational support to IIM-CAN especially in the areas of deal sourcing, administration support, business development for investee company, investor connect, exit facilitation etc.
What formalities do NRIs & PIOs need to complete to invest in Indian companies?
NRIs can invest from any of the following accounts: NRO/NRE/FCNR. PIOs are also eligible to invest in Indian companies. IIM-CAN would not invest in any quasi debt instruments like OCDs/PCDs (Optionally Convertible / Partly Convertible Debentures)
What would be the deal structure?
IIM-CAN prefers a direct equity infusion (x% stake for y amount of money), but if the Deal Lead wants some other structure we could look at that.
Would IIM-CAN be open to investing in International companies?
Currently, the focus is Indian companies, but if a Deal Lead feels strongly that we should look at international companies it will be explored.
Who reviews the shareholding agreement to help first-time angels be confident that they are contractually protected?
IIM-CAN has legal teams to ensure the agreement cover minority protection rights including ROFR, Tag Along, and Drag Along rights. We also have experienced angels as part of our Advisory board and also as our members who help us with the necessary inputs and feedback.
We at IIM-CAN recognize that even though getting Angel Funding is a major milestone for entrepreneurs, the journey is still fraught with the danger of premature startup demise. So, to ensure the survival and growth of the small "baby" into a vigorous young one we have created this whole IIM-CAN Ecosystem.