Angel investing is neither a liquid asset class nor has fixed/ predictable returns (with a possibility of losing the entire invested capital). Angel investors typically look to get an exit in the later stages of fund-raising, and the timeline for the same depends on each start-up. Typically, the following exit options are available:
The instruments which are typically used for fundraising in startup equity are: Equity Shares, Compulsorily Convertible Preference Shares, Optionally convertible preference shares, and Compulsory Convertible Debenture.
Grip has partnered with Alternative Investment Funds (AIFs), to provide investors with these equity investment opportunities. Grip, does not play any role in the management of these start-ups or conducting the social and background checks of the start-up and team members. Grip will provide legal and financial diligence report to the users to undertake assessment, if available.
Angel investing is neither a liquid asset class nor has fixed/ predictable returns with a possibility of losing the entire invested capital.
Your investment is solely based on your own judgment, knowing the risks involved in this dynamic marketplace. We do not guarantee a return on investment because it is dependent on market conditions and start-up execution.
But as a rule of thumb, Angels all over the globe say that a 3x return over three years is respectable, but a 7x-10x return over three to seven years is a Grand Slam!
Every investor should be aware that an investment in any company or AIF units of schemes investing in any investee company (each, a “Startup”) involves a high degree of risk, regardless of whether such investment is made directly or through an AIF investment vehicle (“Fund”).
The following considerations, among others, should be carefully evaluated before investing in a Startup or a Fund:
The investors will own Class A and Class D units of the particular scheme offered by Grand Anicut Angel Fund and SiriusOne Capital Fund, respectively of the investee entity. Since the equity investment opportunities on Grip's platform are facilitated through an AIF, the rights to this investment are vested in the AIF's Investment Manager, who will make the decision on behalf of all the shareholders at its sole discretion.