AngelVest aims to provide early-stage capital to companies with significant pre-existing and/or planned operations in China. In addition to providing capital, we strive to be value-added investors who leverage extensive professional experiences and networks to actively guide our portfolio companies. We also look for the following:
Stage – We prefer companies that have completed their product development and have begun the process of earning revenues. However, we will also consider earlier-stage companies.
Management – Passion and vision of the management team are critical to the success of early-stage companies. We seek teams with a demonstrated track record of success and leadership, as well as relevant industry and technology expertise. Because we take an active approach to angel investing, we also look for entrepreneurs who are open to input from investors.
Market/Growth Opportunity – We look for companies that address large and growing markets and demonstrate a clear strategy to claiming a significant and sustainable market share.
Business Strategy – We look for companies that can clearly communicate their value proposition to customers. These companies should have business models that are highly scalable, and have the ability to create significant barriers to entry.
Exit Strategy – Our members generally seek financial returns of at least ten times their initial investment, within seven to ten years. This return on investment is desired due to the high risk associated with early stage companies. Thus, it is important that there be a clear exit path for investors.
Investment Amounts/Requirements – Our members generally make individual investments from US$10,000 to $50,000 per deal, and $100,000 to $500,000 as a group. We typically seek to lead the funding round and obtain a seat on the Board of Directors.
The Funding Process:
1) Send in your submission
Please fill out the Executive Summary form by clicking on the submit business plan button at the top of the screen. Please also submit your business plan with the Executive Summary. If you would like, you may also submit your company to firstname.lastname@example.org. There is no fee to apply, or to present.
2) Review of submissions
We will review your submission and you may get emails or phone calls from us for further questions, if any. Face-to-face meetings may be arranged as well. If you meet our objectives, your submission will be included as a candidate for our voting process. All of our members will be voting on the submissions we collect for the month and select 4 companies to present in Beijing, in Hong Kong, in Shanghai and in Singapore.
3) If your submission is selected:
You will be invited to give a 10-minute pitch to our members at our monthly General Meeting (every last Tuesday of the month). After hearing the pitch, AngelVest members interested in your company will form a team for due diligence. At the conclusion of due diligence we agree on a term sheet then the funding closes.
The format for the meetings is as follows:
7:00-7:15pm 10-min Private Presentation by Company A, followed by 5 min Q&A
7:15-7:20pm AngelVest’s internal discussion
7:20-7:35pm 10-min Private Presentation by Company B, followed by 5 min Q&A
7:35-7:40pm AngelVest’s internal discussion
7:40-7:55pm 10-min Private Presentation by Company C, followed by 5 min Q&A
7:55-8:00pm AngelVest’s internal discussion
8:00-8:15pm 10-min Private Presentation by Company D, followed by 5 min Q&A
8:15-8:20pm AngelVest’s internal discussion and meeting conclusion
General Timeline for Funding:
1) Weeks 1-2:
Within the first two weeks of the monthly General Meeting, the appointed Deal Sponsor should arrange a follow-up meeting(s) with the entrepreneur to have an in-depth discussion about the Company.
Note: A Deal Sponsor serves to be the key representative and point of contact between Company A and AngelVest Group. The Deal Sponsor is also responsible for leading the entire due diligence process and strives to secure funding from AngelVest Group towards Company A.
2) Weeks 3-4:
Deal Sponsor completes due diligence of the Company.
After due diligence is completed, the Deal Sponsor will circulate additional information gained from due diligence meetings to the group, as a star to solicit AngelVest member interest.
3) Weeks 5-7:
Deal Sponsor solicits further interest from other Group Members and negotiates deal terms.
4) Weeks 8-10:
Deal Closing and Funds Wiring Completed.