AngelList India is a SEBI registered Angel Fund, a sub-category of VCF under Category- I AIF. A separate scheme / SPV is created for investment into each startup company. When investing through AngelList India (an AIF), investors do not receive 'shares' but instead get 'units' of that particular scheme allotted (as mentioned in the drawdown notice), since investors aren't directly investing in the company, but through AngelList India.

'Unit Statements' are issued with the investors biannually for the account value as of September and March of a particular financial year.

20%

AngelList India can only invest in startups meeting the following criteria:

• Lesser than INR 100 Cr of turnover in its preceding financial year
• Not older than 10 years since its date of incorporation
• Registered in India, else SEBI approval is required, etc.

Moreover, Category-I AIFs and FOCC organizations are not permitted to invest in:

• Non-banking financial companies (NBFCs) - this includes Fintechs that have or could want an NBFC license in the future;
• Gold financing companies;
• Activities not permitted under the industrial policy of the Government of India;
• Sectors like multi-brand retail trade, pharma, agri, defense where foreign or downstream investment is restricted by GOI

Investors are required to complete their KYC either during the sign-up process or at the time of making their first investment on the platform. The following documents are required to be uploaded:

• Individuals: Government ID (PAN Card, Aadhar Card, Passport) and Address Proof (Latest utility bill, Aadhar Card)
• Body Corporates (Pvt Ltd/ LLP):
  1. Certificate of incorporation
  2. Board resolution
  3. PAN copy
  4. Memorandum of Association, Article of Association
  5. Copy of latest share holding pattern
  6. Copy of financials for 2 years
  7. Authorized signatory list

As per the SEBI guidelines, Leads and Investors are required to meet the minimum threshold of investing INR 25 Lakhs over a period of 5 years from the time of making their first investment with AngelList India. This can be in a single deal or over multiple deals.

Generally, it is recommended to make multiple investments to have a portfolio of startups that will help in diversifying the risk associated with startup investing.

INR 3L

Syndicates are required to invest a minimum of INR 50L per company.

The minimum non-resident investors can commit to a particular deal is INR 25L. This applies to non-resident investors, including those investing through NRO/NRE accounts as well.

Possible subject to certain terms and conditions. The shares need to be procured at FMV. For this the company needs to obtain a FEMA compliant valuation certificate from a CA/ SEBI registered Merchant Banker.

• Exits are decided by the Syndicate leads
• Exit opportunity and terms need to be applied Syndicate-wide, to all the LPs. There is no provision of giving individual exits to select LPs.
• Partial exits are possible and will be applied Syndicate-wide. ie- Liquidating 50% of a Syndicate's holding in a company and keeping the remaining 50% intact.

There is a one-time 2% setup fee per deal paid by all the LPs and the Syndicate Lead respective to their investment amount.

i.e. Investment amount = INR 3 Lacs x 2% Setup Fees = INR 3.06 Lacs to be wired

At the time of making an investment, the angel investor becomes part of AngelList India, which is registered with SEBI as an Angel Fund under the AIF Regulations. Under the (Indian) Income-tax Act, 1961, Angel Funds have been accorded pass through status in respect of all incomes (except business income), i.e. investors are subject to tax in the same nature and same proportion as if they had directly invested in the portfolio companies. There is a 10% withholding at the time of making payments to resident investors and at rates in force in case of non-resident investors, which the investors can claim credit for while filing their tax returns.

The carry will be realised only upon a successful liquidation event (e.g. secondary, sale, public offering) and will be shared as per the distribution guidelines mentioned in AL India's fund documents.

As per SEBI guidelines, an investor needs to be 'accredited' and must meet the following criteria:

• Individual investor: has net tangible assets of at least INR 2 crore excluding value of his / her principal residence, and who:
  1. has early-stage investment experience
  2. or has experience as a serial entrepreneur
  3. or is a senior management professional with at least 10 years of experience.
• Body Corporate (Pvt Ltd / LLP): minimum net worth of INR 10 crore. Please share an audited balance sheet or a certificate from your CA confirming the net-worth for verification purposes over this email.

• Investors are required to wire funds from the bank account on the name of investing entity and no one else
• Remittances are NEFT/RTGS transactions to our standard HDFC current account. Cheques are accepted and must be deposited to the neared HDFC bank.
• It takes at least 48-hours for AL India to reconcile wires. Reconciled wires are reflected in your Lead Dashboard and investors get an email confirmation regarding the same.
• Received funds from investors get updated on the Lead Dashboard every Monday-Wednesday-Friday evenings.