How do I find the best Startups to invest in?
LetsVenture Featured Syndicates is a good way to invest in high quality startups. These deals are hard curated by our own team and also backed by prominent Angels from the ecosystem. We also have specific matchmaking algorithms and you will receive startup introductions and syndicate alerts using our matchmaking algorithm based on your investment preferences among other criteria.
What is the best way to judge and find a high-growth Startup?
LetsVenture featured syndicate is a good way to invest in high quality startups. Including this, your personal investing experience and advice from experiences angel investors can help you find the quality startups.
Is there a maximum or minimum amount of investment per Investor? Can such amount be determined by a Startup?
Minimum ticket size for each Startup investment is INR 5 Lakhs only. However Startup has the flexibility to set a higher minimum ticket size based on the round size and his/her preference. There is no maximum ticket size limitation per investment.
Who is a Lead Investor? What are the responsibilities of a Lead Investor?
A Lead investor is someone who is willing to step in and don the mantle of the captain of the investor syndicate. The Lead investor should ideally have engaged with the startup for sometime to understand the business, and see how he can support the entrepreneur. Read in detail about the responsibilities
here.
What are the incentives LetsVenture provides for a Lead Investor?
LetsVenture provides very good incentives to the Lead Investor (in terms of advisory equity). The equity could be anywhere between 2-4% depending on the discussion between the Startup and the Lead Investor. We are also in the process of providing a carry incentive the the Lead Investor.
How can I become a Lead Investor?
Any angel investor participating in the current round can become a lead investor. You can get in touch with the entrepreneur himself to lead any particular deal or connect with the Letsventure deals team - sunitha.kr@letsventure.com. Find out
here the roles and responsibilities of a lead investor during the funding round and afterwards.
How protected are my investments?
LetsVenture’s partners do all the financial and legal due-diligence for the startups before taking in any money from the investor. A Due Diligence report is issued prior to the signing of the Shareholder Agreement. We also rely on the social proofs and background of the startup and team members. Besides this, all investments on the platform have the legal paperwork to protect your investment.
What is the guarantee or probability of my investment giving me returns and in what time horizon?
Your investment is based solely on your own judgement, knowing the risks involved in this dynamic marketplace. We do not guarantee on the investment return as it is dependent upon the market scenario and startup execution.
How liquid are these and do you facilitate secondary share sale as well of my investment and portfolio?
Angel investing is not a liquid asset until the startup gets into future rounds of funding (Series A/ Series B, during which the angel investor can make potential exit). The timeline for the same depends on each startup. As of now, LetsVenture does not facilitate secondary share sale but we do have plans to introduce this in the future.
In the event the Startup fails, is there a possibility where the founders will be personally liable to the investors?
The founders shall be personally liable to the investors to such extent as may be documented in the terms and conditions of the respective investment agreements.
Who can invest in startups in India?
Indian residents can invest in any startup in India. Non- resident individuals and companies have to comply with FDI rules and regulations. See the
NRI section for more details.
How many investors can invest in a single Startup?
The total number of investors which can invest at any given point in time should not exceed 200. Further, the total number of shareholders in a private limited company, cannot be less than 2 and more than 200.
Will a Startup issue shares directly to the investors?
Yes. The shares may also be issued to nominee(s) of the investors if the same is agreeable with the start-up.
Will the founders and investors be entitled to any voting rights?
The voting rights for investors depends on the share holder agreement. In most cases, all investors do have the voting right but only the lead investor will get the board seat.