Angel Hub Ventures funds early-stage businesses. Venture capitalists provide funding in addition to access to skills, networks and other necessary resources in order to promote the growth of potentially successful small businesses.
It provides support in a wide range of areas, varying from strategic advice to operational assistance, including. legal, accounting and financial assistance from our trusted suppliers. Most importantly our lines of communication are short and our networks are vast.
Angel Hub Ventures
Starting out in 2011 as the first angel group in SA, Angel Hub Ventures matured into an early stage Venture Capital firm in January 2014. Operating out of Stellenbosch in South Africa and backed by two family offices they are passionate about early stage investments in (South) Africa.
Depending on the stage of business and the needs of a team, it provides support in a wide range of areas, varying from strategic advice to operational assistance, incl. legal, accounting and financial assistance from their trusted suppliers. Most importantly their lines of communication are short and networks are vast.
Angel Hub Ventures likes to connect founders with each other and leverage their skills, network and expertise. In the larger group they have several established businesses such as Multisource that can give substantial support and expertise to new ventures.
Angel Hub Ventures invest in highly scalable businesses with strong leadership, customer traction, a viable business model & an executable business plan. Considering the early stage of the ventures it invests in, they usually take a meaningful minority equity stake. The cash goes straight into the business, they do not buy founders out – and always invest in the holding company where the intellectual property lies. The first round investments range from 1 to 10 million Rand. All investments are milestone based and they have the ability to provide follow on funding.
Angel Hub Ventures are not bound by particular industries but by the characteristics of the business in question. These are the characteristics they are interested in:
- Disruptive business models, enabled by technology.
- Lean business methodologies with flexible cost structures.
- Scalable business models with the potential for rapid growth.
- Businesses with a minimum viable product, customer traction & an executable business plan
However, they do not invest in the following type of businesses:
- Capital intensive businesses (e.g. property investments)
- Grants, donations or sponsorships of any kind
- Non-profit businesses of any kind
Angel Hub Ventures uses preferred equity structures to finance ventures. These shares are convertible to ordinary equity and carry a liquidation preference clause that prioritises AHV’s shareholding in the event of a liquidation.
They typically have a longer term view than other funds so that the value they perceive and can add has the best chance of success. They are interested in businesses that can grow rapidly over this period and return multiples of what they initially invest.
Each deal is approached and dealt with differently within the structure of how Angel Hub Ventures work. Generally, upon the completion of an application and successes in pitches, your business and its market will be thoroughly analysed and be subject to a comprehensive due diligence phase. In this phase it will raise concerns and deal with any potential issues surrounding your business. They will then propose an investment plan subject to any milestones mutually agreed upon. Importantly, they structure the deals in a manner that they believe aligns their interests with the entrepreneur so that they can build a sustainable business.
At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for more information on funding through Angel Hub Ventures.