There is a gap in early stage funding for ideas - arise aims to bridge that gap by providing capital and a curated network to help the best founders and entrepreneurs.
A syndicate allows investors to participate in multiple deals they might not be able to participate in individually.
If the investment is successful, the syndicate investors first receive their initial investment, after which every dollar of the syndicate’s profit is split with the syndicate investors.
Investors get access to deals, and startups get more capital with fewer meetings.
• Investors get access to a filtered pipeline of firms and also benefit from the pooled experience of fellow Syndicate Members.
• Startups get more capital with fewer meetings. They also get the attention of investors who are considering making a large investment.
The Syndicate is funded through monthly contributions of ₦30,000 (deductions go on for 18 months) from every Member who has signed up to the Syndicate. 84% (₦25000) goes to the pool for investments, while 16% (₦5000) goes to administration fees-in situations where no startup is deemed suitable for investment, the ₦5000 is still expensed and the ₦25000 balance is carried forward. Investors are required to set up their cards on https://amplifypay.com/arisestartupsyndicatelagos.
The ideal Syndicate member/investor is a working class professional or entrepreneur who is sophisticated enough to understand the risks involved with angel investing, while also willing to invest finance and time in funding and mentoring prospective start-ups identified by the Syndicate.
The ideal founder/startup could possibly still be at the ideation stage, might have a minimum viable product/prototype, already shown some traction, or might be a startup already in full flow. They ideally must work on their idea full time post investment & ₦1mn will make a difference i.e. The Company’s burn rate is low enough/no major expenses.
Each Syndicate investment size in the identified company is ₦1,000,000 (one million Naira) for a ≤ 5% equity stake.
The 5% is owned according to each Syndicate Member’s percentage ownership in the fund pool.
16% (₦5,000) of the monthly contributions is kept aside for administration costs. These costs include wages, accounting, setting up the pitch events, and legal fees.
Once a startup/founder passes due diligence, investors who have funded the syndicate are notified. Legal and accounting documentation will then be signed, and depending on the stage of the business and any other pre-agreed terms, disbursement could be in stages with performance targets or at once.
Funding round sizes might vary depending on the needs and desires of the founder/startup-the basic offer is ₦1,000,000 for 5%; however in certain cases, a Syndicate can decide to invest lower for 5% or 1mm for 5% and then a large amount for a different negotiated valuation due to existing contextual factors.
Every investor (“Investor”) should be aware that an investment in a single company or multiple companies on the arise platform (each, a “Startup”) involves a high degree of risk, regardless of whether such investment is direct or through a vehicle (“Fund”) formed for purposes of accommodating co-investment arrangement (“Syndicate”). There can be no assurance that (i) Startup will achieve its business plan, (ii) an Investor will receive a return of any part of its investment.
Voting is done by a panel of a minimum of four panelists at each pitch night. The panel will consist of a of 2 arise investors, and at least 2 guest judges invited from the broader startup and investment communies.
If nobody wins the pitch, the Syndicate funds are domiciled under the care of the Syndicate Representatives till the next pitch sessions.
A Syndicate Member may leave the Syndicate upon giving one (1) month’s written notice of his/her intention to do so to the Syndicate Members.
Yes, you can recommend new members, but arise must approve their membership, however no new member shall join the Syndicate without it being a condition of their membership that they sign the Syndicate Agreement.
All obligation and liabilities if any as concerning the Syndicate Members are set out in the Syndicate Agreement.
Each syndicate member will gain access to the arise investment platform (https://gust.com/organizations/arise/) where all updates regarding the investee companies will be reported.
We do not share your name or contact information with anyone except entrepreneurs you choose to connect with. Connections with entrepreneurs are made completely on your terms so your details are private until you decide to connect with a particular entrepreneur.