The Chennai Angels (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:
1. 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.
2. Member agrees to:
Abide by, and in the case of Institutional Members, the nominees of the Institution abide by, the Membership Terms governing TCA in force as of date and as amended from time to time and made applicable to all members of TCA. A copy of the Membership Terms currently effective is appended to this Undertaking.
Provide reasonable time to mentor early stage business enterprises when required by TCA. In the case of Institutional Members, the nominees of the Institution are expected to provide the same
3. The membership can be terminated by:
Member any time with immediate effect / TCA in the manner envisaged in Membership Terms any time / The membership terminates automatically upon the member losing ability to meet eligibility criteria or upon death, insanity or insolvency.
4. Member’s obligation to comply with confidentiality requirements under Membership Terms survives the termination of this Undertaking.
5. This Undertaking shall be subject to the laws and jurisdiction of Chennai, India.
1. TCA has two classes of membership:
2. Individual membership is provided to individuals 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.
3. Institutional members 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.
4. TCA would be administered by an Executive Committee (EC) elected from amongst members/nominees (angels) with each member carrying one vote.
5. Admission into membership is decided by Membership Committee (nominated by EC) based on sponsorship by at least one angel.
7. Every angel is expected to:
(a) Attend at least 75% of the TCA meetings in a calendar year in person or over phone.
(b) Follow the minimum investment criteria published from time to time. Presently, we expect every member to invest an aggregate of 20 Lakhs per FY in one or more deals.
(c) Participate in at least 50% of the weekly screening calls.
(d) Act as deal champion to take promising deals through to conclusion, as may be requested by Screening Committee.
(e) 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.
(f) Represent TCA in events, seminars, conferences as may be requested of member by the Executive Committee.
(g) Aid and assist TCA objectives to the greatest extent possible, including by sourcing good deals.
Persistent failure to comply may be considered by EC as reasonable ground for revocation of membership.
8. 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 Investments
Investments would be made into early stage business enterprises with some nexus to South India.
Mentoring is as important as money. Angels would provide mentoring support to their investments.