entrepreneur

a forum for investors to find high potential start ups.

Selection criteria

Our focus is on early-stage companies – across all sectors – looking to raise LE 250,000 to LE 2 million, where we can fund a portion of the round and syndicate with other angel groups or early-stage venture funds. The company should be close or beyond commercialization stage and have a clear and defensible competitive advantage. We are looking for well articulated and cost-efficient businesses that can reach profitability preferably with a total investment of less than EGP 5 million of equity investment over the lifetime of the company.
Our minimum target return is 3 – 5 times our money back in 3 – 5 years (“three to five, in three to five”) though we firmly believe that ten times return is achievable in the Egyptian market.

Pitching to CairoAngels

Following a successful screening, you will be invited back to pitch to our full membership base. Prepare to deliver a 15 minute presentation and to take 5 additional minutes for questions. The objective is to make the people excited just enough to want to learn more about your business. In a subsequent Due Diligence meeting (should there be any interest) you will have the chance to go into the details of your business with no time limit. After all the presentations we excuse the entrepreneurs and have an extensive discussion on each business opportunity. The investors express their interest and we put them in touch with the entrepreneur.

Your business pitch… must contain as a minimum

  • Market gap or customer pain
  • Description of the product or service and its unique selling point
  • Current or potential market size
  • Analysis of the customers’ propensity to pay the anticipated price
  • Analysis of the current and/or prospective competition
  • Go to market” strategy and explanation of sales growth assumptions
  • At least 3 years forecasted profit and loss, broken down in basic detail
  • Clear articulation of the investment being sought and the equity stake on offer
  • Break down of the budget (how will the investment be spent)
  • Bio’s for your core team members: what makes them suited for this

Any demonstration of effort to phase the investment segments according to a set of milestones is very well regarded.

 

Applying for funding

CairoAngels is continuously searching for high potential entrepreneurs with robust business ideas or existing operating companies. You can apply with us anytime by applying on Gust. Submit Materials

Unfortunately, because of the number of applications we receive, we do not accept executive summaries only, and we do not meet with entrepreneurs who wish to discuss their business before they submit a business plan. Also note that we do not offer incubation, acceleration or mentorship to aspiring entrepreneurs. Our role is exclusively a financing one.

Your plan will be reviewed by our administrator, if it is the right calibre you will be invited to a screening session with one or two of our members. You will be asked to present your business as though it were a formal pitch session. If your screening is successful you will be invited back to pitch to CairoAngels.Still have questions? Email us at info@cairoangels.com.

 

Getting funded

Once you have pitched to CairoAngels we will put you in touch with our interested investors. Often a group of investors will show interest. For the entrepreneur’s convenience we ask our members to nominate one person to coordinate due diligence and negotiate on behalf of the others. This way the entrepreneur does not have to chase each prospective investor.

how long does funding take?
Week 0:    entrepreneur pitches, angels express interest and nominate a “deal leader”
Week 1:    deal leader compiles angels’ due diligence questions and meets entrepreneur
Week 2:    deal leader summarises replies and coordinates final due diligence Q&A
Week 3:    deal leader and entrepreneur begin to negotiate company valuation and terms
Week 4:    deal leader secures final commitments from angels and makes a binding offer to the entrepreneur (usually in the form of a terms sheet)
Week 6:    Shareholders Agreement and Sale & Purchase Agreement are drafted and negotiated
Week 8:    Legal documents are finalised, all parties sign, funds are transferred

What we avoid?

As a general rule we do not invest in companies that still require further research and development of the prototype. If your business has been operating for a while we like to see what the owner will do differently with our investment that will suddenly lead to high growth. We do not invest in companies because of their social or environmental impact alone; the investment hurdle rates discussed in [selection criteria] apply regardless.

Code of Conduct

Members of CairoAngels will not share material received from founders with third parties, nor discuss their companies or ideas outside of the network. Where angels’ business interests conflict with a start-up’s, angels will not attempt to hinder the entrepreneur’s success or provide false information that would serve to undermine the business. During pitch sessions members will arrive on time, they will not interrupt presentations other than for clarification, and will not try to influence the opinion of other investors.

In return we ask that entrepreneurs come prepared to our sessions, negotiate in good faith with interested investors, and respect negotiations with members of CairoAngels. This means that you will not negotiate with other parties so long as you are negotiating with us, and that you do not unreasonably change the terms of an agreement.