Terms and conditions for Skylark Investor Club
Overview & Philosophy
The Skylark Ventures(S.V.) is the highly promising new age platform for early stage startups and investors formed by the entrepreneurs turn investor who share a passion for nurturing and investing in seed/early stage startups, which have the potential to scale and become a successful company. We understand that startups are like small baby and need at most caring and constant mentoring including funding for each and every step to grow and become a successful venture.
We belive “if the funding and mentoring worth doing, it’s worth doing well.”
Skylark Ventures actively engage with the members to educate and facilitate investment opportunities in seed and early stage startups. We seek to be a major player in creating a vibrant seed and early stage startup ecosystem in India. It aspire us to be a biggest player in the ecosystem and the first choice for any startup who is looking for funding or any type of mentoring.
Skylark Ventures 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 Indian start ups. It is recognized that, in order to ensure longevity and scalability of this new model, there needs to be some basic rules and operating guidelines that all members adhere to and these are outlined in this document.
Areas of Interest
Skylark Ventures prefer seed and early stage startups and having sector agnostic but size specific approach. The platform looks at investing anywhere from a Rs. 50 Lakhs to Rs. 3 crores. On an average, it looks to exit over a 2 to 4 year horizon through a secondary or strategic, M&A or even an IPO, though that is rare.
There are two categories of membership, Individual and Institutional. Both categories of members need to abide by the governance rules set out in this framework document and any other rules that S.V. publishes from time to time. The fee for institutional members is zero whereas individual investors need to pay annual membership fee.
Individual members invest as per their individual capacity only and not as representatives of any organization.
Institutional members will be joining as representatives of an institution. Any investments made in ventures would need to be in the name of that institution only. A maximum of 5 specified senior members from the institution would be given access to deal flow, pitch sessions, diligence, investor calls, etc.
Skylark Ventures is a new age platform, not an angel group nor a V.C., As per board guideline, it is expected that each individual member of "Skylark Investor Club" will invest at least Rs. 15 lakhs annually as a basic investment. This basic investment will be deployed by the team of "Skylark" on the behalf of the members in up-to 3 startups with minimum investment ticket size of Rs. 5 lakhs. Members can transfer this amount in the account of "Skylark" in up-to 3 parts whereas membership fee is payable totally in advance. Against investment all paper work related to asset holding will be done on the name of " Individual Member or Corporate Only."
Members of "Skylark Investor Club" are free to invest more in the opportunities which are launched on platform as per their personal choice and risk capacity.
We receive 250 to 300 fund raising applications in a month out of which less then 2% startups get the chance to raise funds through our platform as in selecting the investment opportunities we are very choosy. We are committed to bring highly curated investment opportunities for the members of "Skylark Investor Club". While launching the opportunities on the platform we target that our investors can get atleast 3X to 10X return by investing in these opportunities in the time period of 2 yrs to 4 yrs. Please note that investment in startups is highly risky and highly rewarding too.
> Annual fee : Rs. 35,000/- (Including Taxes)
> Annual fee: Nil
Above amounts are Inclusive of service / GST taxes. The fees are subject to review by the Network from time to time. The membership to the Network will be annualized i.e. effective for 12 months from the date of becoming a member.
@ Startups/Founders can send in their proposals through our website only. Members of S.I.C. are encouraged to refer deals that they find attractive to the platform.
@ Deals will be vetted by our team and selected startups will be called to pitch our internal investment team. During this pitching round members will be invited to be a part of it.
@ Filtered startups will be call for the operational due diligence for analyzing the current business situation and other aspects.
@ As per the report of operational due diligence, Basic funding commitment will be given to finalized startups as per the right of deploying the basic investment of members. For further raising, Deals will be launched on the platform for the members as a investment opportunities.
@ A slide deck with brief executive summary will be circulated to all the members of S.I.C. ahead of the presentation through zoom meeting or google meet where a more detailed slide deck will be presented by the founder/s.
@ Hereafter skylark will act as a lead and will take the discussions with the founder offline and engage in further due diligence, etc. These interactions will be coordinated by the S.V. internal investment team, which at all times will be kept in the loop on the progress.
@ Skylark will lead all discussions on deal valuation, structure and closure with the founder and investors. For the founders, A member of the internal investment team will be the point of contact for such discussions. On behalf of all investors, skylark will always seek at least one board seat in each fund raising company.
@ The terms of the investment along with the funding fitness report would be circulated by the internal investment team to all members of "Skylark Investor Club". After 2 -5 days, an investor call would be set up where the founder would present the company and investment rationale to investors. Subscription to the investment will open immediately after this conference call and commitments for subscription will remain open for next 25 days from the end of the call or till the requisite subscription amount & number of investors has been reached. Members may reverse/change their commitments during these 25 days but no change will be permitted once the 25 day/subscription period is over.
@ Number of investors in each deal would be restricted to as follows:
> For every company, raising investment of up to Rs. 1 crore a maximum of 20 investors will be included.
> For investment rounds between Rs. 1 crore to Rs. 3 crores the first 50 investors will be accepted on a first come first serve basis.
> The minimum investment a member can subscribe to Rs. 5 lakhs in an Indian startup, Members should also indicate the maximum amount that they wish to invest in the deal as that becomes relevant in a deal which is not over subscribed. S.V. Management Team members will be allowed to invest in S.V. investee companies on the same terms as the members, without any minimum requirement.
@ On the completion of the subscription period i.e. 25 days, the skylark team will form the final investor group for the deal and communicate the exact investment amount to each investor. Any investor, who has committed to invest and not withdrawn that commitment during these 25 days, is obligated to invest and if he / she back out from the investment, then they will forfeit their membership of the Network.
@ Here after Skylark will start working to finish the pending due diligence and then have the standard Share Purchase agreement signed. Startups will be charged for the third party service providers who will conduct the financial and legal diligence. The Skylark Team will negotiate with the service providers to ensure that these fees are not more than 1.5% (including service tax) of the investment round.
@ Members will deposit the committed amount firstly into escrow account. After completing the pending formalities including SHA with founders, funds will be transferred to main account of the startup.
@ Skylark members are expected to join and participate in induction programs and sessions on angel investing within the first year of their membership
Restrictions on Members, individual or institutional, during investment process: S.V. Code of Conduct
@ If a member has any conflict of interest in a deal, he/she needs to immediately notify the Skylark Team and would then be excluded from all further discussions.
@ 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 Skylark Team and they will then be excluded from the process going forward for that particular deal, unless they are agreeable to investing as part of Skylark.
@ While the process is underway, no network member (individual or institutional) would have parallel discussions with the entrepreneur outside of the process, nor enter into any separate understanding for any consideration.
@ Once a deal has been declined by skylark, members of skylark are free to engage directly with those startups in any manner they want.
Cancellation And Refund Policy
@ You as a member can cancel your membership within 7 days by mailing us at firstname.lastname@example.org. In such a case we will refund any payments already made by you for the membership. Once membership is cancelled, refund will be processed in the original mode of payment, which will be credited within 7 to 10 working days.
@ Skylark and team will not be responsible in any way for any investment decisions taken by the members, the correctness of any information that it receives and disseminates, any remittances / information / statutory compliance due to members on account of any portfolio company, etc. By agree with this document, each member specifically indemnifies the Skylark Ventures, its employees, consultants and Directors against any such liability.
@ Nothing stated herein should be deemed to create a partnership among the members; nor give any authorization to any member to act for or assume any obligation or responsibility on behalf of, any other member, the Skylark Ventures., its employees, consultants and its Directors, other than that which has been expressly provided for herein.
Skylark Ventures will actively develop close ties with other early stage investors such as state funds and venture capitalists, to leverage the relationships and be able to make larger co-investments than what the Network members may be willing to do as well as with other organizations that can provide value to S.V. and its investee companies.