FAQs
Negen Tech Opportunities Angel Fund is a Trust registered with SEBI as a Category I Alternative Investment Fund– Angel Fund with effect from April 04, 2022, bearing registration number IN/AIF1/22-23/1036. Our angel fund raises funds from angel investors for investment in start-ups.
Our office is at City Hall, Oasis Complex, Kamala Mills Compound, Pandurang Budhkar Marg, Lower Parel (W), Mumbai City, Maharashtra - 400013. For contact, you can email us at info@negenaif.com and for more details, please visit the contact us page by clicking here.
Negen Tech Opportunities Angel Fund privately pools the investment from angel investors to invest in the start-up as a single entity. Once the fund has invested money in a particular start-up, the start-up issues shares to our fund and the fund issues units to the investor. Therefore, it is the Angel Fund which has a direct shareholding in the company and not the Angel Investor.
Our team is constantly evaluating start-up pitches. After understanding the business model and founder's vision, we do legal and financial due diligence to make sure that the company has no red flags. We then present the start-up to all our investors for taking their consent for the investment. Investors can choose to invest or choose not to invest in the startup presented, at their own discretion.
The consented investors are issued a capital drawdown notice and their capital is pooled and invested into the start-up. The fund will issue units to the investors at a Face Value of Rs. 100 in proportion to the amount invested and these units will be visible when you login to your Investor Portal.
Post your investment, we provide periodic key business updates and various financial metrics. We also provide a periodic unit statement and yearly valuation report of investments to all investors.
We will bring a curated deal flow of up to 10 deals per year. Our endeavor is not to spray 100-200 deals per year onto clients where they find it impossible to properly evaluate any deal at their level.
To be an "Angel investor", you must satisfy any one of the following conditions -
1. You are an individual investor who has net tangible assets of at least INR 2 crore excluding the value of your principal residence, and you:
- have early-stage investment experience, or
- have experience as a serial entrepreneur, or
- are a senior management professional with at least 10 years of experience;
('Early-stage investment experience' shall mean prior experience in investing in start-up or emerging or early-stage ventures and 'serial entrepreneur' shall mean a person who has promoted or co-promoted more than one start-up venture.)
Or
2. You are a body corporate with a net worth of at least INR 10 crore.
The minimum investment commitment in an Angel Fund is INR 25 lakh which can be invested over a period of 5 years.
Over this period of 5 years, you can spread your investment amount in several tranches as per your wish.
In an Angel Fund, Investors pay an Annual Management Fee to the fund managers for managing the investments through the fund’s life. Management fees are the cost of having an investment fund professionally managed by an investment manager. The management fees cover not only the cost of paying the managers but also the costs of investor relations, legal fees, trustee fees, any administrative costs, due diligence expenses, etc.
The investors also pay the fund managers a share in the profits, called Carry in industry parlance, which kicks at the time of exit.
The following is the fee structure followed at Negen Angel Fund -
- Investors are charged a Fixed Investment Management Fee of INR 29,500 per annum.
- Secondly, Investors could be charged a one time Deal Level Investment Management Fee of up to 1% on the Contributed Amount (Invested Money). Please note that this fee would be charged only on a deal to deal basis and will be informed while Negen is presenting an investment opportunity.
- Lastly, Investors are charged a Carry Fee (profit sharing) in the range of 8% to 15%. Please note that this fee will kick in only at the time of a profitable exit and it is capped at 15%. For each deal presented to you, an exact Carry percentage will be informed while Negen is presenting an investment opportunity.
| Fee Structure | ||
|---|---|---|
| Annual Management Fee | Rs. 29,500 | Applicable Every Year, till your Last Investment Exit |
| Deal-Wise management Fee | Up To 1% | Applicable One Time, only on the Deal-Wise Investment Amount |
| Deal-Wise Carry Fee / Profit Sharing | Between 8 to 15% | Applicable One Time, Only on the Deal-Wise Profitable Exits |
Please fill out the joining form. You can redirect to our joining form by clicking here. Our investor relations team will reach out to you!
Documents Required for Onboarding
For Individuals - PAN Card, Aadhaar Card, Canceled Cheque
For Corporates - Please reach out to us on info@negenaif.com and we will share the list of documents.
Startup Investments are only for investors who can take extremely high risk. Although startups investments are risky, they provide investors with a lucrative risk reward ratio.
Startup Investments are illiquid by nature. An angel investor can make a potential exit in the future funding rounds of the startup. Time horizon for Startup investments is typically between 4-5 years. There can be partial exits through an IPO or Secondary sale (at the sole discretion of the Investment Manager).