Introduction
The South African Angel Investment Network is a paid membership platform that connects entrepreneurs with angel investors (both local and international) and helps them get funded.
Angel investors are typically wealthy former entrepreneurs or executives who have business experience. They provide capital to early-stage businesses usually in exchange for equity or convertible debt. Angels generally only invest in companies that they believe have an earning potential.
To raise capital on the platform, each entrepreneur is allowed to pitch their business and set their capital requirements and a minimum investment amount. The network’s system then matches the entrepreneur’s pitch with the right investors based on their investment amount, region, and sector(s).
According to their website, they currently have 342 304 angel investors worldwide who look at all stages of business and across all sectors. The platform has raised R4 billion for its members.
Main Features
Type Of Funding – The South African Angel Investment Network uses an equity-based crowdfunding model. This means investors provide the business owner with finance to grow the business in exchange for a percentage ownership of the business and a share of profits as well as a lump sum when they exit.
Qualifying Criteria – Businesses across the 18 sectors serviced on the platform may join the network and pitch for funding.
Application process – For an opportunity to pitch, entrepreneurs can sign up on the website and make use of their resources to create a pitch that will get the attention of investors.
Entrepreneurs are required to set the maximum amount of funds needed and the minimum each investor can give. They can also view different investors’ investment ranges.
Unlike most crowdfunding platforms, entrepreneurs can accept funds from investors at any time – they do not have to reach any funding target. Pitches can also be edited at any time.
Application must-haves include:
- Company info
- Company website
- How much you are raising in total
- Short summary of what the company does
- Deal type – whether you are looking for a loan or an equity deal
- Company financials
- Your team
- Images and videos
Pricing
The South African Investment Network offers a number of membership packages with different offers and benefits. The platform does not charge a commission on any money raised.
- 30-day Novice package – R799
- 90-day Pro package – R1199
- 90-day Global Pro – R2299
- Executive package (120-day package) – R19 999
The company states on its website that a full refund will be paid back to you if there is no genuine interest from investors.
