Operating Standard

Background

Autonebula Angel Network herein call as AAN is a network of Angel investors keen to invest in early stage businesses which have the potential to create value to advance smart mobility solutions and addressing automotive industry needs. AAN operated by Autonebula Incubation services which is India’s first Automotive and Connected Transport Incubator. Started in Jan 2016, Autonebula in addition to capital provides constant access to high quality mentoring, product analysis, go-to-market strategy, and vast networks and inputs on strategy as well as execution. The Network members, because of their background are better able to assess the potential and risks at the earliest stage. AAN is division of Autonebula Incubation Services Private Limited. AAN invests in promising startups and early stage companies. Autonebula is working with companies from Automotive and Connected transport sector and invest in scalable businesses with disruptive ideas and matching with end customers and Industry requirements. AAN actively engages with the government and other organizations to educate and help facilitate adoption of and information about Government policies and procedures which creates an enabling environment for entrepreneurs and angel investors. AAN looks at investing in ventures from across India and including overseas ventures. Its members are drawn from all over India and some from overseas. AAN does not maintain a fixed corpus and does not have a fixed time horizon for making investments. As a broad outline, it is expected that members will invest at least Rs. 1 lakh per annum. Such expected amount is expected to have upward revision from time to time. AAN is not a secretive body; in fact, it will proactively seek positive publicity with a view to being seen as the investor group of choice by Automotive, Autotech and connected transport startups and businesses. All members will sign this document in acceptance of the broad principles that will govern the functioning of the AAN. The Network members will also agree to adhere to a code of confidentiality regarding all opportunities tabled at the forum. Details of any deal, entrepreneurs, etc. will be kept strictly confidential and will not be discussed or revealed outside the Network. This document aims to evolve and spell out a framework under which likeminded members can “network” together and work synergistically to achieve common objectives in the above areas, while not having to operate under the more traditional but rigid models such as VCs, etc. At the same time, it is recognized that, in order to ensure longevity and scalability of this model, there needs to be some basic rules and operating guidelines that all members adhere to and these are outlined in this document.

Membership of Network

  1. All individual members are inducted in their individual capacities and not as representatives of their organizations. Their membership fees may be paid directly by them or their investment company or any organization they choose. However, members in this category would be able to make investments in ventures brought to the Network only in their name (this of course includes jointly with family members or through wholly owned investment companies or Trusts). The fiduciary ownership of the investment will personally be that of the member (or family) and will not be on behalf of any other person or corporate body.
  2. New members can join (AAN) by writing to membership@autonebula.com or connecting with the secretariat.
  3. A new member is required to get a reference from a respected individual or a person from automotive industry or from existing Angel member. In case there is no reference, the new member would be added by completing background verification process. The profile of new member is then sent to the Board of Directors for their approval post which the payment and other formalities need to be concluded.
  4. Institutional members can also join the AAN with members of the institution given access to the deal flow. Institutional members will be joining as representatives of an institution. In such a case any investment made in ventures would need to be in the name of that institution. The membership fee for institutional members is higher than for individual members. Institutional members, just like individual members, would need to abide by the same governance rules set out in this framework document.
  5. Two people can be nominated by the institution to attend the angel meetings and act on behalf of the institution. However, only one person may attend the meeting at a given point of time. Every corporate member shall be entitled to act and be represented by two authorized representatives whose profiles should be approved by the Board of Institution.
  6. Fiduciary ownership of the investments made in that case will be in the name of the institution. Examples of Institutional members could be a Venture Capitalist or Private Equity firm or a Company, Institution or an endowment with capital set aside for entrepreneurship and early stage funding.
  7. The Network work for PAN India organizations. While its Secretariat is headquartered in Pune, it looks at investing in ventures from across India and overseas. Its members are drawn from all over India and some from overseas.

Types of Membership

Autonebula Angels has two classes of membership,
i. Individual and
ii. Institutional
Membership fees are payable on yearly basis. The membership to the Network will be annualized i.e. effective for 12 months from the date of becoming a member. AAN notifies the membership fees as applicable from time to time.
All members will sign the Framework document and Code of Conduct & Confidentiality document in acceptance of the broad principles that will govern the functioning of the AAN. Network members will also agree to adhere to a Non-disclosure agreement regarding all opportunities tabled at the forum.

Startup Selection Criteria

Solution Focus :

We focus on startups whose focus is on Automotives and tackle pain points with reference to

  • Driver Behaviour
  • Prognosis
  • Artificial Intelligence
  • Cyber Security
  • RADAR
  • LIDAR
  • Autonomous Vehicles
  • Vehicle Maintenance & Quality
  • Alternative Fuel
  • Ecommerce Mart
  • Logistic Aggregation
  • Mobility
  • V2X communications
  • IoT
  • Sensor technologies
  • Sensor fusion applications
  • HMI and human interface technologies
  • Vehicle software systems/applications

Team Focus :

Team need to be hardworking, committed, focused singularly on scaling up the startups to desired expectation of investors. They need to be flexible to include co-founders, advisors, mentors as required for the benefit of the venture. The team will need to undergo our accelerator program and be part of any incubator/accelerator as identified by us and should be available for pitch sessions with investors.

Code of Conduct and Confidentiality

  1. With reference to investment opportunities that have been tabled at the Network, the members agree that:
    1. If any member (institutional or individual) has any interest in a particular deal i.e. as an investor, director or in any other capacity he/she would need to disclose this to the Secretariat immediately on that deal being tabled.
    2. If any network member, institutional or individual was already pursuing a deal before it came to the Network, then he/ she would need to immediately notify the Secretariat and they will then be excluded from the process going forward for that particular deal.
    3. No Network member (individual or institutional) would have parallel discussions with the entrepreneur outside of the process, which includes a restriction on a member entering into a separate understanding with an invest company for any consideration.
  2. All members agree that details of any deal, entrepreneurs, etc. will be kept strictly confidential and will not be discussed or revealed outside the Network.
  3. Only members can attend the AAN scheduled meetings.
  4. All documents including emails, presentations, discussions, terms sheets and other agreements that members receive from AAN are confidential. Members are requested not to disclose or forward them to any third party including other angel groups or venture funds.
  5. Once a company is shortlisted for due diligence, only AAN Secretariat Office is authorized to speak to the company and / or its founders till such time that the company is either invested or rejected (unless AAN Secretariat Office requests for help from fellow AAN members).
  6. Members attending the monthly AAN meeting are requested to voluntarily disclose if they have a direct or indirect investment in a presenting company or a company that competes with the presenting company. For the sake of confidentiality we will request the said member to voluntarily excuse himself or herself from such presentations unless the promoters / entrepreneurs allows the same.
  7. During the company presentations by the entrepreneurs at the scheduled AAN meetings, members are requested to avoid over critical remarks and observations that discourage the presenters. They are also requested to avoid cross-talk or phone calls or walking in & out during the presentations. AAN members should strive to give positive experience to the entrepreneurs at every stage, whether their company gets funded or not.
  8. We request all members to work for the growth of AAN, its membership and its sanctity. Members are also requested to encourage promising companies to present to AAN and to provide support to investee companies wherever feasible.
  9. This code of conduct may be modified from time to time by the Board of Directors of AAN.
  10. Each member is required to provide their acceptance to this code and modifications from thereof from time to time.
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