Contact us
Login

Be a part of facilitating early stage enterprises

ChennaiAngels Network Association (TCA), formerly known as Chennai Entrepreneurship Trust Fund, is a group of angel investors keen to facilitate early stage enterprises to grow by providing funding and mentoring support. Interested Candidates can view the Members of TCA in Meet our Angels page and approach us through them or can mark an email to connect@thechennaiangels.com for applying.

Know our criteria
Our investment process

Membership

We have four classes of membership:

Lifetime

Lifetime members are the eleven (11) members who founded the organization and contributed an initial corpus of Rs 5 lacs each

Individual

Individual membership is provided to individuals initially as invitation membership, followed by confirmation typically after a year

Institutional

Institutional membership is extended to venture funds and investment bankers.

Corporate

Corporate membership is extended to corporates who wish to invest through their companies and involve members of their companies.

FAQs

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 their own platform designed to support the activity of Angel Networks. We prefer that all entrepreneurs apply for funding using the questionnaire in the online application. To apply for funding please visit TCA Platform

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.

What process can I expect after I apply to TCA?

On receiving your application, the application goes through a certain process. Click here to view the process

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.

What is the average ticket size of TCA investment?

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.

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.

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.

What are the charges to the entrepreneur for raising funds from TCA?
a) On the deals led by TCA
A deal facilitation fee of 2.5%
(Two and a half percent) on the funds raised.
Cost for conducting Financial, Legal,and Business Due Diligence by agencies appointed by TCA, at actuals ranging from 1%-2% of & the total fund raise.

b) On the deals led by other investors
A consolidated fee of 2.5% (Two and a half perfect) on the funds raised, towards deal facilitation and review of Financial, Legal, and Business Due Diligence conducted by Agencies appointed by the Lead Investor.
Does TCA invest in competing start-ups?

TCA reserves the right to invest in competing start-ups. However, to ensure confidentiality and information protection, TCA lead investor(s) who are in the Board either as a Director or Observer will not participate in the fundraise initiated by competing start-ups.

The Chennai Angels

©The Chennai Angels. All rights reserved

Designed by Jamoons Digital

Quick Links

Funding

Close

Know Our Criteria

Chennai Angels Network Association (TCA), formerly known as Chennai Entrepreneurship Trust Fund, is a group of angel investors keen to facilitate early stage enterprises to grow by providing funding and mentoring support.

The Angels agree to the following terms governing the group and membership:

MEMBERSHIP

  1. TCA has four classes of membership:
    • Lifetime
    • Individual
    • Institutional
    • Corporate
  2. . Lifetime members are the following eleven (11) members who founded the organization and contributed an initial corpus of Rs 5 lacs each:
    • Chandrashekar KB
    • Gopal Srinivasan
    • Kumar N
    • Pandiarajan
    • Prabhakar Ram
    • Raghu Rajagopal
    • Ram Mohan
    • Ramaraj R
    • Reddy GRK
    • Srinivasan HR
    • Suresh Kalpathi
  3. Individual membership is provided to individuals initially as invitation membership, followed by confirmation typically after a year, in their personal capacity and not as nominees of an institution. Participation by individual members in meetings will have to be personal and not through nominees. Investment by individual members will have to be made in their personal names, or jointly with members of their immediate family or through wholly owned enterprises/trusts.
  4. Institutional membership is extended to venture funds and investment bankers. They can nominate up to a maximum of three nominees to represent the institution in members’ meetings. Investment by institutional members will have to be made in the name of the institution (and not an affiliate of the institution). An institutional member has just one vote whenever a voting takes place to be exercised by the nominee present or by one of the nominees if more than one nominee is present.
  5. Corporate membership is extended to corporates who wish to invest through their companies and involve members of their companies. They also can nominate up to a maximum of three nominees to represent them in members’ meetings. A corporate member has just one vote whenever a voting takes place to be exercised by the nominee present or by one of the nominees if more than one nominee is present.
  6. TCA would be administered by an Executive Committee (EC) selected from amongst members/nominees (angels) with each member carrying one vote.
  7. Admission into membership is decided by Membership Committee (nominated by EC) based on sponsorship by at least one angel. The Member represents to TCA that:
    • Member meets the eligibility criteria to be an angel investor capable of making investment decisions and protecting such investments without the standard protection available under Securities law to general investors.
    • Member understands that TCA, its members, employees and advisors are not responsible for any information, recommendation or advice leading to an investment; for monitoring or protecting the investment; or for any losses or damages suffered directly or indirectly from the investment.
    • Member alone is responsible for understanding and verifying investment case, making investment decisions and monitoring and protecting investments. There is no agency or partnership arrangement between Member and TCA (or its members, employees and advisors).
    • Member understands that there is no obligation for Member to invest in every deal presented to TCA. Members are free to not participate in any deal presented to TCA without having to explain reasons for their decision.
    • Member understands that Angel Investments are extremely high risk and notwithstanding the due diligence there is very high probability that the entire investment will be wiped out. Member represents that he/she has the ability to withstand such loss.
    • Member agrees not to make any claim on TCA or on any other member for any such losses and agrees and confirms that such decisions are being taken by the member individually after due consideration of all facts.
  8. Every angel is expected to:
    • Attend at least 75% of the TCA meetings in a calendar year in person or over phone.
    • Invest in at least one deal every financial year.
    • Participate in at least 50% of the weekly screening calls, whenever requested.
    • Act as deal champion to take promising deals through to conclusion, as may be requested by Deal Sourcing & Evaluation Committee.
    • Aid and mentor investee companies and their management in successful conduct of their business, in their capacity as TCA rep Director, Observer or simply as a mentor.
    • Represent TCA in events, seminars, conferences as may be requested by a member by the Executive Committee or CEO of TCA.
    • Aid and assist TCA objectives to the greatest extent possible, including by sourcing good deals.
    • Confirmation of invitation members is normally expected to be done after a year of active membership during which period the member is expected to have made investments aggregating to Rs. 20 Lacs. Failure to comply may be considered by EC as reasonable ground for revocation of membership.
    • Membership can be revoked by EC for breach of terms; for failure to keep up commitments to invest or pay fees; and for other reasons determined by EC. Membership can be terminated by the member also at any time. Membership fees once paid will not be refundable.
Close

Investment Process

  1. Applications shall be received in a standardized format, made available to Angels and shortlisted for presentation by entrepreneurs to Angels in TCA meetings scheduled from time to time.
  2. Angels interested in a deal shall elect one or more deal-champions who shall engage with the entrepreneur to evaluate the prospect and crystallize valuation, structure and closure.
  1. All discussions with entrepreneur shall be through or with the knowledge of the deal champion.
  2. EC should be kept in the loop by circulation of minutes of meeting.
  3. Declines shall be communicated promptly to entrepreneurs.
  4. Term Sheets shall be offered in standardized format (variations will have to be referred to EC) and signed by deal champions and entrepreneurs.
  5. The term sheet and business case shall be presented to all Angels for offers for subscription within 10 days. In the event of oversubscription, allotment shall be proportionate. In the event of under subscription, the deal shall be turned down unless any Angels are willing to fill the gap.
  1. Investments would be made by individual angels directly into enterprises or through an LLP. TCA would be just a facilitator ensuring standardized terms, coordinated mentoring and tracking.

Conflict Of Interest

  1. Any angel participating in any event on behalf of TCA would have to represent the interests of TCA (and not the interest of the angel) and provide a prompt feedback to TCA after the event. Event includes a meeting to encourage, identify or evaluate investment opportunities.
  2. Any angel having any conflict of interest with a proposed investment should disclose such conflict as early as feasible. Angels with conflict of interest shall not:
  3. participate in any presentation, evaluation or discussions about such investment and
  4. Seek/gain access to any confidential information about the prospect, the investment case or deal terms.

Conflict of interest includes

  1. Ownership, substantial investment, management, or board membership in a directly competing business enterprise
  2. Arrangement of a reward (in cash, equity or position) contingent upon investment by Angels
  3. Relationship or business association with entrepreneurs applying for investment
  4. Competing consideration of an investment outside TCA (unless the Angel is willing to now invest only through and with TCA on identical terms)
  5. Angels shall not circumvent TCA and have parallel discussions with entrepreneurs for investment outside TCA while TCA is considering a deal with the entrepreneur unless authorized or invited by TCA to do so on behalf of TCA as Deal Champion or as an Investing Angel.
  6. Angels are free to engage with entrepreneur directly once TCA rejects an investment proposal.

Confidentiality

  1. In the course of evaluation, presentation or discussion, Angels may receive confidential information relating to identity startups, entrepreneurs involved, the need for funding/mentoring support, business objectives/strategies, business models, investment case, deal size, deal structure and deal terms. Angels shall not:
  2. use such confidential information for any purpose other than the purpose for which such information is disclosed to them
  3. treat such confidential information with lesser care than that with which they would use confidential information relating to their own business
  4. The obligation of Angels under “Conflict of Interest” shall survive the termination of membership for a period of five years.

Responsibility

  1. The decision to invest shall be that of each Investing Angel.
  2. The responsibility to monitor and protect investments made is that of each investing Angel.
  3. Be construed as an Advisor for the investment.
  4.  Be construed as recommending or not recommending an investment.
  5. Be responsible for reliability or accuracy of any of the representations made.
  6. Be responsible for investment case of or terms of investment into an enterprise.
  7. Be responsible for monitoring the progress of an investment or protecting the investment.
  8. Be responsible for any loss or damage suffered by an Investing Angel.
  9. Nothing in this shall be construed as a partnership or agency arrangement amongst TCA, EC, Investing Angels, Sponsoring Angels and other Angels.
  10. The terms can be changed by EC from time to time so long as they pass the test of fairness and are applicable to all members.
  11. In any conflict between these membership terms and the membership undertaking signed by members, the undertaking prevails over the terms.
Investor Login
Entrepreneur Login