For Entrepreneurs Looking for Help

Overall Process

TAN would follow the traditional process which consists of the following steps:

• Identifying Companies/Entrepreneurs that need help
• Evaluating the Companies/Entrepreneurs that need help
• Coaching
• Company Presentations
• Company Information verification
• Term & Conditions
• Liability and Risk Exposure
• Follow-On Relationships
  
• Identifying Companies/Entrepreneurs that need help
  TAN would identify Companies/Entrepreneurs through the following sources:

• TAN members
• Members of professional bodies such as CSP, PASHA, ISPAK, etc.
• Members of Government Agencies such as PSEB
• Through Service Providers such as Lawyers, Chartered Accountancy & Management Consultancy Firms, Bankers, etc,
• Through Venture Capital Firms (as these develop in Pakistan)
• Through Investment Firms
• Through Universities and their Incubation/Entrepreneurship centers
• Direct through TAN website

• Evaluating the Companies/Entrepreneurs that need help
  Each application for help would be reviewed by a Screening Committee using the Screening Check List. Based on the check list marking the screening committee would recommend the top 2-3 companies for presentation in front of the entire TAN angel group normally every month.
• Coaching
  TAN would provide coaching to the teamson how and what to present to the full TAN group, so that the entrepreneurs are able to present their case effectively.
• Company Presentations
  Screened and short-listed companies would be asked to present their case in front of the whole TAN group. Typically, two to three companies would present, each company presentation would last for a maximum of fifteen minutes, followed by a short question-and-answer session (five to ten minutes). After the presentations, TAN group would ask the companies to step out of the room for group discussion. At the end of the discussion the message to the company could be one of the following:

• Angels would like to proceed forward to the company information verification stage
• Decision is pending and the company would be advised later
• More information is required and the company should provide the same and the final decision would be advised later.
• Angels would not be able to proceed further with the company.

• Company Information verification
  Company Information verification can be the most complicated and time consuming part of process. Here are some of the areas that have to be looked into:

• Corporate Structure and Governance (Review of Documents and Interview with Management, Board, and Advisors)
• Financial Assumptions and Revenue Sources (Review of all Financial Documents)
• Market Assessment (Independent Market Analysis and Customer References, if Applicable)
• Competitive Arena (Independent Competitive Analysis )
• Management Team (Interview all Team Members and Key Employee References)
• Technology Assessment ( May Need Expert or Professional Assistance In Technology Assessment)
• Operations
• Comparables (Recent IPOs, Recent companies funded in this space, etc.)
• Other Things to Watch out for (Unrealistic valuation or revenue model, complicated investment terms, heavy debt, court cases pending, income tax or other governmental problems, investment to be used for paying old obligations not for moving the company forward, missing key assumptions about market or financial model, one-product or -service company, no board per se, in experienced management, Poor advisors, etc.

• Terms & Conditions
  Angels (please note TAN does not provide any funding or it is the angels who provide the funding) can look at many type of investment methods, but, generally Angels would want equity of the organizations against the money invested. In addition depending on the amount invested they may also want to be on the board. In most cases Term Sheets used internationally would be used to define the terms and conditions
• Liability and Risk Exposure
  It must be noted that in the Angel investment model each Angel makes his or her own investment decision (TAN does not act as an investment advisor). Therefore, there is no liability as far as TAN is concerned.
• Follow-On Relationships
  The relationship of the Angels with the company in which he/she has invested would depend on investment size, specifically the percentage of the round or the percentage of the company acquired by the angel investor. However, generally Angels would become advisors or mentors to the company, serving on an advisory board or committee. They would also monitor the progress of the company by requiring periodical reports