The Trident Angels Network – Investment Process and Timeline
The Trident Angels meet quarterly following several stages of review in order to make their funding decisions. The amount of money invested can vary from $10,000 to two millions depending on the number of investors interested and the type of business. Some angel investors will invest cash into the business through different rounds of founding pertaining that the company meets certain milestones. The network members are successful business leaders across industries. They operate within predetermined guidelines and ethics but actual deals are negotiated independently by the investors and entrepreneurs on a deal-by-deal basis.
- Application: Download the templates for the executive summary and pitch deck on the BEF website (see below) and submit your application to email@example.com. Materials beyond the limit will not be reviewed or considered.
- Pre-Screening: The pre-screening eliminates applications that are incomplete, do not meet the minimum requirements, or do not comply with the investment criteria.
- Screening: Once an application has been accepted for review, the entrepreneur is required to complete two steps: (1) Post his/her information on the investment platform called GUST, which is published privately to all investors in the Trident Angels network. (2) Pitch the business live before the screening committee and investors interested: Ten minutes for the presentation and ten minutes for Q&A. In general, about 10 to 30 percent of all entrepreneurs who apply reach this stage. Those who present will receive constructive feedback on the spot to improve their chances of success.
- Investment Review Meeting: The entrepreneurs who inspired trust and maintained interests at this point are invited for a one-hour discussion about the investment opportunity. A detailed Q&A session follows the 15-min presentation from the founder. The investors will discuss key issues about the company and clarify the parameters in the term sheet: How much money do you need from investors in exchange of what % of the company equity? What return will you provide to investors to compensate the risks they are taking by putting their money into your hands, and for the support they will give you going forward? Such investment meetings must clarify expectations on both sides before the due diligence process begins. Although the Barbados Entrepreneurship Foundation may provide some resources to educate parties about the elements in a standard term sheet, it will not provide any advice. The negotiation is strictly between entrepreneurs and investors.
- Due Diligence: Those investors interested in taking the proposal forward at this point will conduct a thorough check on you and your business. The objective is to validate the business plan, including the management team, market opportunity and amount of funding required, and to review the term sheet as necessary.
- Investment agreement: If one or more investors choose to invest in your company, they will prepare the legal document detailing the investment parameters and the relationship between the company and investors. The agreement includes a definition section to ensure that parties fully understand the terms in the agreement. Negotiations will continue until both sides are content to begin a successful partnership that will drive some results in the long term.
- Post-investment monitoring and support: The investors will have agreed on a reporting template, timeline, board participation and availability of other resources the entrepreneur can use such as networks, expertise, etc. Most successful entrepreneurs who began their journey with angel investors recognize the support obtained from these experienced business leaders is just as valuable as the cash investment.
- Exit: This is the moment when investors get their money back which can take 5 to 10 years. The most common exit is by way of a “trade sale”, the sale of the company to another, larger company. A very small percentage of angel investments reach their exit through IPOs (Initial Public Offering on the stock market). In small market economies where typical exits are more challenging, innovative instruments are increasingly used to provide adequate returns to investors.