Negen Tech Opportunities Angel Fund

Fund Overview

A trust registered with SEBI as a Category I Alternative Investment Fund, Negen Tech Opportunities Angel Fund gathers money from angel investors for investments in start-ups or early-stage businesses. A network of more than 200 family offices, angel investors, and other company owners support our fund. Mellora, Snapmint, Blue Tokai, Burger Singh, Power Gummies, ZingBus, and Reshamandi are a few of our most important group investments.

Investment Structure

Opportunities for Negen Tech To invest in the firm as a single entity, Angel Fund secretly combines the money from angel investors. The startup issues shares to the angel fund once it has invested money in it, and the fund then issues units to the investors. As a result, the Angel fund, not the individual investors or body corporates, has a direct stake in the firm.

After our due diligence and grasping the company strategy, we will share 10 to 15 projects annually with investors. All of the fund’s investors will be given access to the pitch deck, and they will then be able to choose based on what they know about the firm. After the investment, we’ll give you frequent information on important company developments and financial measures. All investors get frequent unit statements from us and an annual report on the worth of their interests.

Minimum Investment

The minimum investment amount required by an angel fund is INR 25 lakh, which can be invested over five years. Your investment amount may be allocated any way you want throughout the course of these five years. For example, you might invest INR 25 lakhs in one company or INR 1 lakhs in each of more than 25 businesses. You have complete discretion as a customer. You can opt-out of some transactions and participate in those you are interested in.

Fee Structure

The fee structure comprises 3 components –

• Fixed fees for the investment management of 29,500 rupees. The fee covers the fund’s costs for doing startup transaction due diligence, pitching opportunities to investors, and other associated paperwork. Investment in the unlisted environment necessitates significant legal and administrative paperwork. The amount you invest has no bearing on the yearly cost. The yearly cost will be the same whether you invest 1 lac or 50 lac (for illustration purposes). At the time of onboarding, it must be deposited.
• Carry or profit-sharing between 8% and 15%. This charge will only be applied during a successful departure. For each transaction proposed to you as an investor, you will be given a certain Carry % specified in the scheme document at the time of investing.
• Investment Management at the deal level of 1% or less in fees on the investment amount. This fee will only be applied deal per deal and disclosed as Negen presents an investment opportunity. The pricing as mentioned above structure is subject to change in due course.

Exit Opportunities

The normal funding horizon for startups is three to five years. During later investment rounds of a business, an angel investor could decide to leave. An IPO or secondary sale are two possible methods for partial departures (at the sole discretion of the Investment Manager). Investors have the choice to agree to a sale of their units to Angel Fund investors.

Taxation –

1. Selling before the firm is listed on a stock exchange: A LTCG of 20% with an indexation benefit will be charged to you.
2. Selling after being listed on a stock market – Without any indexation, an LTCG of 10% will be assessed to you.

Note: Any distributions made when exiting any investment will be subject to a 10% TDS deduction. The investor would be responsible for paying taxes on the remaining reward.

The process of the investment

To invest in the start-up as a single entity, the Negen Tech Opportunities Angel Fund secretly aggregates the investments from angel investors. You will hear startup pitches as an investor, and you may decide whether or not to invest in any of the firms.

A capital withdrawal letter is sent to the approved investors, and their money is gathered and invested in the startup. The startup issues shares to our fund for each completed investment, and the fund then issues units to the investor. You may see these units in your Statement of Accounts.

The whole Startup platform has been digitalized. Following your investment, we periodically provide you with important company updates and financial measures. A monthly unit statement and a half-yearly valuation report of investments are also given to every investor.

Exit load

When the investment is exited, there is no exit burden. How long is the fee valid? – The charge is valid for all investors for the duration of their investment in the Fund.

• Total AUM (Aug-2022)

With a total capital commitment of 55 Cr, we have 200 clients.