About Angel investing

TVCN promotes angel investing culture to invest and grow innovative start-ups in Tanzania. We act as a vehicle to generate deal opportunities, facilitates, and manages investments. Angel investors subscribes to the network as members and also provide mentoring to portfolio companies.
The Network operates as a loose structure, managed as a platform and not as a holding company to portfolio companies. The investors invest directly to portfolio companies, either individually or as a group. In scenarios where members want to invest as a group, a separate holding company will be formed where members will be the subscribers.

WHY

Start-ups

  • Access to finance remains a key challenge to many start-ups in Tanzania
  • Many fail to scale or die to in a few years due to undercapitalization, among other reasons
  • But we see many potential start-ups that generate multiple x returns

Investors

  • We understand there are Tanzanians (individuals or groups) who wish to invest but have limited access to opportunities and investment knowledge
  • Many end up losing money by keeping cash, and some invest in unfamiliar areas and lose money

Roles

PARTNER ROLE
Angel investors
  • Investing
  • Mentoring & Coaching
  • Partly in due diligence
TVCN
  • Deal sourcing & pipeline management
  • Handles the entire investment process
  • Manages all administrative activities
  • Organizing live pitches
  • Coordinating mentoring and coaching
  • Handles all paperwork
  • Organizing all meetings
  • Recruitment of members

Categories of membership

 

Category Description
Angel investors
  • Local successful entrepreneurs
  • Local successful executives
  • Tanzanians in Diaspora
  • Local formal & informal investment groups
Sponsor membership

Law firms, audit firms, HR firms, etc.

Affiliate membership

VC firms, PE firms, other angel networks, Accelerators, Incubators

Membership benefits

Membership criteria

  • An angel investor must have the capacity to invest a minimum of USD 5,000 per transaction per year
  • Must have demonstrated experience or knowledge in investing or running a successful business
  • Must have time to attend meetings
  • Must have time to mentor/coach the investees
  • Must have legal means of earning his/her income
  • Must be a Tanzanian/Tanzanian group living/based within or outside the country

INVESTOR RELATIONS

  • Monthly reports to members
  • Quarterly monitoring reports of portfolio companies
  • Quarterly newsletter

Investment process

Deal Sourcing

  • Referrals from network members
  • Sourcing from trade associations
  • Sourcing from incubators/accelerators
  • Referrals from crowdfunding platforms
  • Direct online submissions through the network website
  • Referrals from Professional service firms

Coaching & presentations

  • All companies that go through the screening will undergo coaching
  • Coaching will help to fine tune the business models, presentation materials, and train on presentation skills
  • The short-listed applicants will then have an opportunity to do live pitches to the angel investors
  • Angel investors will have an opportunity to advise as well on improving the deals

How are portfolio investments monitored

  • Investment monitoring by the Network Manager
  • Taking board seat in the investment company by the angel investor or their representative
  • Quarterly investment tracker report by the Manager
  • Mentorship (group and 1-1 facilitation, use of online platforms)
  • Each angel investor must allocate at least one session with investee companies for coaching

EXITS

  • The main exit target will be trade sale to our affiliated VC firms
  • Acquisition from strategic investors
  • Buy –back – The manager will work closely with the portfolio company in exploring this option
  • IPO – The manager will explore the option of IPO exit through EGM at DSE
Contact Us

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