HOW DOES SWAN HELP EARLY STAGE VENTURES?

Swan works closely with the start-up ecosystem across India to help build successful ventures.

We work hand-in-hand with select start-ups to:         

  1. Understand the start-up story and business model - The ideas, vision, product design, team, innovation, market, revenue model etc.
  2. Mentor / guide​ Start-up Founders on every aspect of business, right from basics to helping solve more complex problems
  3. Provide reality-checks. Almost all the start-ups have something great, but many things lacking - which they may, or may not recognize. We help them identify the gaps and help close them. Many of these gaps can be fatal
  4. Access top domain experts. Our network is wide and deep, spanning various industries and consists of industry leaders - people who have made it. We can tap their expertise in helping get the right feedback and inputs for our start-ups
  5. Get ready for fund-raise. Most start-ups are just not ready to secure funding. Start-ups need to have many basics in place before going for Angel or VC funding. In addition to the business, product and proof-of-concept, this includes legal structure, financial structure, right legal entity for the venture etc. We also help write the presentation, prepare the financial forecasts and other documents required for Fund-raise
  6. Fund-raise. We share the start-up presentations with various investors, invite expression of interest, conduct follow-up meetings with Founders, structure the investment deal, draft term sheets, comment & put across our views on other legal documents and get the investment concluded.

 

Costs Involved for Start-ups:

We understand that availability of funds is a major constraint for Start-ups. Our vision has always been to partner with Start-ups over a longer period of time and help them grow into successful companies. Keeping this preamble in mind, we have structured our fee on a success based model- so there's no downside / upfront costs involved.

Here is the Financial Arrangement structure between Start-ups and Swan Finance:

 

Comprehensive Start-up Mentoring (CSM) (from points 1 to 5 above)

  • For those start-ups who are looking for a closer association of mentoring and hand-holding, we take a nominal % equity in the company depending on nature of business and stage of the company

 

Fund-Raise only (point 6 mentioned above)

Fund Raised (INR.)% to Swan 
Upto 1 Cr.3 %
1 Cr. - 2.5 Cr.2 %
2.5 Cr. - 10 Cr.1.5 %
10 Cr. and above1 %

The tiered % is on incremental basis.

 

Engagement Period & Exclusivity:

The Engagement Period would be 12 months from the date of acceptance by Swan and Start-up, and any applicable Exclusivity would be valid till 1 year after the conclusion of this Period.

Fund-raise by Swan Angel Network members would remain Exclusive with Swan.

A Start-up might also seek Swan’s help for Fund-raise by outside Network investors. In such case all Fund-raise would be Exclusively via Swan.

In case the Start-up is engaging with Swan via Comprehensive Startup Mentoring (CSM) program, all Fund-raise would be Exclusively via Swan (whether from within Network or outside).

 

Clarification Notes

  1. During deal conclusion, start-ups might have to pay for legal and financial due-diligence required by investors
  2. Swan team would always first take the deal to Swan Angel Network (SAN) members. We'll reach-out to a larger group only if SAN does not fulfil the Start-up fund-raise needs after a time-period of 30 working Days since issuing the term sheet.
  3. The quantum of fund-raise is technically called as GTV - Gross Transaction Value. It includes - besides liquid money invested - value of any other mechanism of investing in the start-up.
  4. Tiered fee % on incremental basis means - for example, that for a fund-raise of Rs. 1.75 Crores, fee would be (for first Rs. 1 Crores, 3L plus for next Rs. 0.75 Crore, 0.75*2%=1.5L; total 4.5L)
  5. The Start-up agrees and allows Swan Finance to share the information pertaining to the Start-up to any individual for the sole purpose mentioned above.
  6. Swan Finance will introduce the start-up to numerous individuals for fund raising. As part of good faith, Start-up agrees not to approach any individual without the knowledge and consent of Swan Finance representative.