As angel investors, we invest via a SEBI-registered Category-I AIF (Alternative Investment Fund). The Angel Fund category provides us the flexibility to tweak their exposure on a deal-to-deal basis.

Onboarding of Investors (One-Time)

In order to complete the investment, investors get onboarded on AIF platform as an Angel Investor. Onboarding requires standard KYC documentation to be completed. Investors also have to provide confirmation that they have read all the terms and conditions of investing via the AIF.

Process for each investment

Once Ecosystem Ventures team has selected a startup for investment, we conduct pitch sessions inviting all our angel investors to attend the pitch. Recording of the session, along with all other pertinent information is made available via our website.

We then obtain confirmations from those investors who are interested in investing.

Meanwhile, we also get a ‘Scheme’ document created for this specific startup investment from the AIF. The name of the Scheme is reflected as a shareholder in the startup’s cap table.

After all confirmations are complete, investors transfer money into the AIF’s account, and from there it is transferred in one shot to the startup. The startup issues shares to the AIF’s Scheme. The AIF allocates ‘units’ in the Scheme to the investors, proportional to their respective investments. In some sense, this is similar to how a mutual fund works, except that here as investors we can decide on capital allocation into various startups.