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.
The Angels agree to the following terms governing the group and membership:
1. TCA has four classes of membership:
2. Lifetime members are the following eleven (11) members who founded the organization and contributed an initial corpus of Rs 5 lacs each:
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:
a)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.
b)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.
c)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).
d)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.
e)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.
f)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:
(a) Attend at least 75% of the TCA meetings in a calendar year in person or over phone.
(b) Invest in at least one deal every financial year.
(c) Participate in at least 50% of the weekly screening calls, whenever requested.
(d) Act as deal champion to take promising deals through to conclusion, as may be requested by Deal Sourcing & Evaluation 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 by a member by the Executive Committee or CEO of TCA.
(g) Aid and assist TCA objectives to the greatest extent possible, including by sourcing good deals.
(h) 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.
9. 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.