Tuneup Ventures aim to bring qualified and screened deals to the attention of angel investors who are interested to invest in Iranian tech startups. We believe in diversification. A savvy angel would invest $10,000 to $50,000 in 15 to 20 startups to avoid major loss of capital.
Why group funding?
Group funding (or co-investment) is a common approach among angel investors. Main purposes of group funding are:
a. You get access to attractive opportunities with small size investment
b. A bigger team of angel investors means bigger brain-power
c. You diversify your portfolio of investment and reduce the risk of major loss
Our group investment approach helps you invest wisely. Registration in this angel community is free.
How does the process work?
The process of group funding can be slightly different from a case to another. The factors that could influence our approach in group funding are things such as whether the startup is incorporated or not, KPI based investment, presence of a previous investor and so on.
A basic approach would include following steps:
1. You register on our angel list and start receiving notification on deals. We are in touch with Iranian startups who are in different funding stages. We provide insights and exclusive information about each investment opportunity to help you make an informed decision. Each investment opportunity will be broken down into smaller $5,000 to $10,000 size range.
2. We call for registration when you have the opportunity to confirm your interest. The registration period could be 4 to 6 weeks.
3. When and if the number of registered angels met the target of the fund for the specific case we would ask you to transfer your part to our bank account in Tehran. This pre-funding period could be 2-3 weeks. At the same time we are in negotiation with the startup to tailor an investment and engagement agreement with the founding team. We exchange a letter of intent with the startup that details our investment, the period of investment, goals and KPIs and other legal matters.
4. At the end of the pre-funding period our legal advisor would sign the investment agreement with the startup and start transfering the accumulated fund to the startup’s account as per the agreed schedule. Also you receive the certificate of the shares at your name.
Still not sure where to start from? Please contact us at info@TuneupVentures.com
Does Tuneup Ventures involve in managing the startup in the growth phase?
Often our group funding results in us holding a minority share in the startup. However, we insist on securing an executing seat in the company. Therefore if we take a lead in an investment we will be involved in managing the startup one way or the other. This role could be in capacities such as a seat on the board of directors, advisory board, or mentoring the CEO. We will also negotiate critical voting rights with the founding team; votes such as first-right-of-refusal, veto right on choosing C level executives, taking loans, selling company and so on.
Why Tuneup Ventures charges angels?
We do not make a profit in our founder’s fee. The fee covers:
– Time and effort to find, screen and qualify the investment opportunities, then negotiate and conclude a fair deal with the founding team,
– Legal and accounting fees to form and register the investment agreement with the startup (you will be in charge of your personal taxes if any),
Does Tuneup Ventures charge a fee for facilitating the group investment?
The registration period for prospect group funding is free. We do not charge angels in the pre-funding stage, although Tuneup ventures had burned legal and accounting cost up to this stage. When the pre-funding is completed and a fair agreement is reached with the startup we will charge angels 7% of angel’s investment as success-fee.
Where should I wire my investment to?
Our London office is a coordination office. When you find the right investment opportunity, you would be instructed to remit your investment to our bank account in Tehran. We cannot help you transfer your fund overseas into Iranian banking system.
Do I receive share in the startup I invest?
Of course. Regardless of the size of your investment, you would receive shares in the startup company that you invest.
What is the size of each funding round?
Depending on the maturity stage of the startups, they could ask for as little as $10,000 up to a couple of million dollars. Most of the startups in Iran ask for $10,000 to $50,000 in the seed round and $50,000 to $2,000,000 in series-A funding round.
How much investment do I need to invest in Iranian tech startups?
You can invest as small as $5,000 in a group funding round.