Angel Hub Ventures

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Angel Hub Ventures is a venture capital firm that specialises in growth capital, early stage, mid venture, and startup investments. Venture capitalists provide funding in addition to access to skills, networks and other necessary resources to promote the growth of potentially successful small businesses. The firm provides support in an expansive range of areas, varying from strategic advice to operational assistance, including legal, accounting, and financial assistance.

Angel Hub Ventures

The firm had started 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, the firm is passionate about early stage investments in South Africa.

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.

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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 specific industries but by the characteristics of the business in question.

Characteristics the firm is interested in include:

• Disruptive business models, enabled by technology;

• Lean business methodologies with flexible cost structures;

• Scalable business models with the potential for rapid growth; and

• Businesses with a minimum viable product, customer traction & an executable business plan.

They do not however invest in the following business types:

• Capital intensive businesses (e.g. property investments);

• Grants, donations or sponsorships of any kind; and

• 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 had invested initially.

Every deal is approached and dealt with in a unique way, within the structure of how Angel Hub Ventures work. Generally, upon the completion of an application and success in pitches, the business and its market will be analysed in-depth and be subject to a comprehensive due diligence phase. In this phase it will raise concerns and deal with any potential issues surrounding the business. An investment plan will then be proposed, subject to any milestones mutually agreed upon. Deals are structured in a manner that Angel Hub Ventures believe aligns their interests with the entrepreneur so that they can build a sustainable business.

Dream Team Capital understands the complexities of the numerous funding agencies and the uniqueness of the application criteria. We have assisted numerous 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.