Get Funding

The Chennai Angels (TCA) is a leading angel investment group based out of Chennai with more than 70 active investors. The idea of TCA is to provide equity capital with the prime focus on nurturing and mentoring new generation entrepreneurs. The angels have a vast knowledge of the industry and financial clout. TCA does not restrict their investments to a particular sector or industry. The big advantage of being a TCA investee is that, apart from very high quality mentoring, the investors are able to handhold the entrepreneur through the life cycle of fund raising as well and open doors to customers and partners of very high order.

So if you think you have a great idea, apply for funding and we will get back to you.

process & presentation format

FINANCIAL DUE DILIGENCE- CHECKLIST

Funding Criteria

  • Ventures with unique ideas with potential for rapid, scalable growth within a reasonable time frame.
  • Businesses with proprietary technology, early market lead and other strong barriers to entry.
  • A strong management team to execute the business plan, with relevant and successful experience.
  • Entrepreneurs who can provide evidence of the validation of their concept and particularly those who have begun to engage with the market have a stronger proposition.
  • A team with a desire for mentoring and coaching.
  • A reasonable valuation that fits within the risk/reward expectations of our members.
  • A credible exit strategy for investors.
  • Preference for ventures from South India.

Welcome to The Chennai Angels! We are glad you have approached us and our endeavor will be to provide you with a quick and definite response.

Submit your Business Plan

After you've taken a look at our process and funding criteria, you are now ready to fill out our application form and get started.

The Chennai Angels use Venture360, a platform designed to support the activity of Angel Networks. We prefer that all entrepreneurs apply for funding using the questionnaire in the online application. We do have a guide to use the platform. To apply for funding please visit the Venture 360 Platform

To ensure that we are able to take up your application immediately, please ensure that along with basic information about the Company and Promoter, you must upload a presentation (The presentation format can be seen here.).

We have established a Helpdesk for deal upload related matters. You may call TCA Secretariat at 98412 79814 or email deals@thechennaiangels.com in case you face difficulty accessing the Platform or uploading deals. We wish you all the best for your business and for the funding, and sincerely hope we can partner with you on your journey!

Apply for Funding

1. How do I apply to TCA?

After you’ve taken a look at our process and funding criteria, you are now ready to fill out our application form and get started.
The Chennai Angels use Venture360, a platform designed to support the activity of Angel Networks. We prefer that all entrepreneurs apply for funding using the questionnaire in the online application. We do have a guide to use the platform. To apply for funding please visit the Venture 360 Platform

2. What are TCA's gating criteria for ventures seeking investment?

  • Ventures with unique ideas with potential for rapid, scalable growth within a reasonable time frame.
  • Businesses with proprietary technology, early market lead and other strong barriers to entry.
  • A strong management team to execute the business plan, with relevant and successful experience.
  • Entrepreneurs who can provide evidence of the validation of their concept and particularly those who have begun to engage with the market have a stronger proposition.
  • A team with a desire for mentoring and coaching.
  • A reasonable valuation that fits within the risk/reward expectations of our members.
  • A credible exit strategy for investors.
  • Preference for ventures from South India.

3. What process can I expect after I apply to TCA?

4. What should my business plan contain?

Brief Elevator Pitch, Vision and Mission Statement, Market and Industry Environment, Value Proposition, Key Products/Services and Differentiation, Competitive Scenario and Entry Barriers, Business Model and Sales/Marketing Strategy, Market Traction, Management Team, Organization, Financials, Exit Strategy, Capital, Risks and Gaps. Please refer Entrepreneur resources link for business plan format.

5. What is the average ticket size of TCA investments?

On an average the funding would range between Rs. 50 Lakh to Rs 3 Crore. Members may invest more or less depending on the funding requirements of the company and the interest of the members. If the investment size is larger, TCA may syndicate the investment with other investor groups.

6. Does TCA sign NDAs?

TCA does not sign NDAs. TCA shares all plans received by it exclusively with its members. TCA members in turn, sign an undertaking with TCA. All members are bound by the undertaking.

7. How long will it take to get funding from TCA?

Depending on complexity, from start to finish it can take anywhere from 4 to 6 months to get funding. The goal is to complete due diligence as quickly as possible while undergoing a thorough review of the business. The entrepreneur can expedite due diligence by having the information available ahead of time, making yourself and your team available for meetings, and by being proactive in driving the process. At the conclusion of due diligence, it is important that the entrepreneur and investors are both comfortable with each other and can have a productive partnership.

FINANCIAL

  • Provisional Financials, Tally Data for the current year as of any latest date
  • Audited Financials, Tally Data for the previous three years (Applicable no of years)
  • Projected Profit and Loss Account, Balance Sheet and Cash Flow for the next 24 months.
  • Bank Statements for the current year and previous three years.
  • Delegation of Authority Matrix, Organization Chart, Employees Attrition during last few years.
  • Pay roll workings.
  • IT Returns, Tax Audit report, Annual ROC Returns for the previous three years.
  • ETDS Returns, VAT Returns, Service Tax Returns, GST (Current), for the current year and previous three years and all the remittances challans for the same.
  • Labor Laws (PF, ESI, Shops and Establishment Act, Labor Welfare Fund, Factories Act…) Registrations, Annual Returns, Payment Challans.
  • All ROC Filings, Registers, Minutes of the Meetings.
  • Notices received from IT, ROC and other Statutory Authorities and the Status of Representation.
  • 26 AS Statement and Reconciliation with Audited Financials.
  • Cap table Movement History from Inception and relevant ROC Records for the same.
  • SHA, TS and other documentations of earlier round of investment if any
  • Details of ESOP, Commitments for future shares allotment or transfers
  • Loans received/paid and movement history for all outstanding loans
  • Receivables and Payables ageing and Confirmation for more than 365 days outstanding receivables.
  • Physical Verification list of FA and Inventory, duly certified by Management.
  • Break up of revenue month wise and customers wise for the last 12 months.
  • Break up of expenses month wise for the last 12 months.
  • Related party transactions. (Capital, Loan, Salary, Reimbursement relating to directors and their relatives)
  • Directors interest in other ventures.
  • Directors List from Inception and Changes in Directorship including reasons.
  • Change of statutory auditors, Change of Bankers if any
  • Sibil Report, IT Returns, Net worth Statement of the directors.
  • Sales and backlog information.
  • Do you have a cost accounting system in place?
  • Is your insurance coverage adequate?
  • What is your worst-case scenario?




LEGAL

I. Constitutional Information

  • Brief history of the Company and the business operations of the Company (type of industry, products, etc);
  • Details of the Company – Address of the Registered office of the Company and other places from where the Company is carrying on its activities;
  • Date of incorporation, copy of MoA and AoA;

II. Corporate Records

  • All statutory registers maintained by the Company;
  • Copies of all forms filed with RoC;
  • Copies of minutes of Board & Shareholders meetings from incorporation till date;
  • Copies of applications/ petitions, if any, made to the Company Law Board, Central Government;

III. Directors

  • Constitution of Board including Name and residential address, DIN, Date of appointment etc., of each of the Directors;
  • Details of authority as well as duty cast upon the Directors and remuneration drawn by the Directors, if any;
  • Copies of service contracts, if any, between the Company and any of its directors;
  • Details of all related party transactions, including payments made to Directors & related entities;
  • Details of any power of attorney or any other authority which has been given by the Company and is still outstanding or effective to any person to enter into any contract to commitment or do anything on its behalf;
  • Details of other companies/Firms in which the Directors may be interested

IV. Shareholders

  • Shareholding pattern as on date together with details of the number of shares held by shareholders;
  • Details of any charge, hypothecation, pledge or other encumbrances or escrow arrangements relating to the shares of the Company;
  • Details of any right (whether exercisable now or in the future and whether contingent or not) to call for the allotment, issue, sale or transfer of any share capital of the Company;
  • Details of any shareholder’s agreement or arrangements or understandings (whether legally binding or not) between the Promoters; or the Company and any shareholder of the Company;
  • Copy of all contracts entered by the Company/Promoters relating to the share entitlement for any persons;

V. Share Capital

  • Details of authorized share capital;
  • Details of issued, subscribed and paid up share capital;
  • Details of Employee Stock Option Plan or Sweat Equity Shares issued or proposed to be issued by the Company;
  • Details of Foreign Direct Investments received / Overseas Investments made and their compliance with regard to Foreign Exchange Management Act / Reserve Bank of India regulations / notifications;

VI. Agreements/Contracts

  • Copies of all Agreements / MoUs entered into by the Company with the vendors/ business associates of the Company;
  • All contracts relating to operations of the Company;
  • All bank guarantees/performance/corporate guarantees issued by or in favour or the Company, if any;

VII. Financial Information

  • Financial statements of the Company (including balance sheets, profit and loss accounts, cash flow statements etc) for last 3 years;
  • Details of any borrowings or other facilities, existing or committed, availed by the Company, including loans from or arranged by the shareholders/promoters of the Company;
  • Details of all loans or other facilities/security/ guarantee provided by the Company;

VIII. License and Approvals

  • A list along with the copies of all registration, licenses, permits or other authorization obtained by the Company which are required and necessary for its business and operations,
  • List of all approvals applied for which are pending approvals;

IX. Properties

  • Details of all immovable properties owned or leased by the Company;
  • Details of movable properties owned by the Company and details of any charge created over the same;
  • Details of all trademark and other intellectual properties owned or licensed by the Company including software licenses;
  • Details of insurance taken by the Company;

X. Litigation / Notices received

  • Details of any complaints and litigation in respect of the Company or its Promoters/Directors;
  • Details of any notices received from any statutory authority in respect of the Company;
  • Details of legal notices sent by/on behalf of the Company;

XI. Personnel

  • Organizational Chart, Number of employees at each level & other details;
  • Copy of all contracts entered by the Company with the employees of the Company;
  • Details of compliances under ESI & PF, Contract Labour, Shops & Establishment Act etc.
  • Bonus policies (including details of payment made), Gratuity / Leave encashment policies;
  • Kindly provide us with compliance details and recent filings with respect to all applicable Labour laws.




BUSINESS

Company profile / deck

  • Company timeline
  • Awards / recognitions

Management profile

  • Work experience
  • Contact details for references from previous jobs

Shareholding pattern

  • Existing angel investor details
  • Profiles
  • Amount invested at what valuation
  • Contact information for reference

Details of products / service

  • Tech details
  • Process flow
  • Screenshots (if applicable)

Revenue / Business Model

  • Current client details
  • Top clients
  • % of domestic vs foreign clients
  • Payment terms & credit periods
  • Contact details for reference from 2 clients
  • Revenue streams
  • Pipeline
  • Vendor Details
  • Top Vendors
  • Payment terms & credit periods
  • Contact details for reference from 2 vendors
  • Employee Details
  • No of employees
  • Typical employee profile (for each designation / team)
  • Plan on increasing employee strength
  • Current salary structure
  • Contact details of key personnel
  • Marketing strategy
  • Growth plan
  • Industry overview
  • Potential
  • Competitors
  • Financials
  • Historical P&L and Balance Sheet
  • Projected P&L and Balance Sheet
  • Monthly burn rate
  • Segment-wise & geography-wise revenues
  • % of top 5 - 10 clients to total revenues
  • Current funding level
  • Debt (if any)
  • Banking relationships
  • Banker details
  • Facilities used
  • Funds required and utilization
  • Valuation expected