I thought it might be useful to post this excerpt from a reply I sent to one person who contacted me as it may help entrepreneurs understand when it makes sense to approach the Band of Angels

“Please note that I do not sign NDA’s. The Band of Angels requires executive summaries in a particular format which is attached. Generally the Band looks for businesses that have high barriers to entry and can grow to be large. The exit valuation has to be well north of 100 crores. The band will generally take 25-33% of the equity of the company for its investment of 50 lakhs to two crores. In some cases where the company is more mature but yet not ready for a VC round the band may find other co-investors so that the total amount invested could reach 5 crores. The Band seeks to provide advice/mentorship in addition to money so its members are likely to invest in businesses where they have expertise. The quality of the management team is important. The band is very selective and funding may never close or take time. Generally however if an angel agrees to sponsor a company to present to the full band the company gains a lot by interacting with the angels even if the angels choose not to invest.”

Sanjay

Founding a startup in Delhi( Aug 2007) which hopes to build an elephant. Located in Delhi, India. Played a key role in building three elephants one in India, one in Thailand ( both for Citibank) and finally PayPal in USA, Silicon Valley. For more on my profile visit www.linkedin.com, become a member and search for me

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