WHAT WE OFFER
Full cycle support to the entrepreneurs – beginning from pre-investment support of developing the pitch & assessment of capital requirements, to connecting to investors, managing the deal execution as well as post-investment support.
Mlango Ventures provides a platform to entrepreneurs – showcasing your company to the largest group of investors in the country.
We provide smart capital – In addition to money, our investors will also add value to your company by providing mentorship and advice, sharing their knowledge and expertise.
Simple investment terms
WHAT WE LOOK FOR
Mlango Ventures looks to invest between TSH 500000 to TSH 50,000,000 in innovative, high-growth companies. We welcome entrepreneurs from all backgrounds including first time entrepreneurs or those who have failed in their earlier attempts.
Here’s what we look for:
- High-quality, passion and resilience of the management team
- First of a kind, innovative idea/model with a large potential to scale
- High barriers to entry (or) a competitive advantage
- Established proof of concept
INVESTMENT FOCUS AREAS
Technology
Healthcare
Agtech
Education
Internet
Hospitality
Fintech
Manufacturing
Retail
Gaming
Mobile
Social impact
APPLICATION PROCESS
1. Apply online via our website:
Complete a brief application outlining the key characteristics of your company.
Complete a brief application outlining the key characteristics of your company.
2. Phone Screening:
Our team will get in touch with you to learn more about your company.
Our team will get in touch with you to learn more about your company.
3. Pre-investment Support:
If your application is shortlisted, our team will work with you on preparing the materials and assessment for the pitch to investors.
If your application is shortlisted, our team will work with you on preparing the materials and assessment for the pitch to investors.
4. Pitch to investors:
A pitch session will be organized once every quarter where you will present to our members.
A pitch session will be organized once every quarter where you will present to our members.
5. Due diligence:
During due diligence, the network will verify the statements made in your business plan, presentation, and financial projections, thoroughly research your team's background and track record. An initial discussion of valuation and terms will also happen.
During due diligence, the network will verify the statements made in your business plan, presentation, and financial projections, thoroughly research your team's background and track record. An initial discussion of valuation and terms will also happen.
6. Term sheet negotiation:
After successful completion of the due diligence process, interested angel group members will present a term sheet that defines the structure of the investment deal
-Including type of equity and board of directors’ representation, using industry standard terms and provisions.
After successful completion of the due diligence process, interested angel group members will present a term sheet that defines the structure of the investment deal
-Including type of equity and board of directors’ representation, using industry standard terms and provisions.
7. Deal execution & Funding:
When all parties are satisfied with the terms & language in the term sheet, the deal will be executed. But remember, closing the deal is only the beginning of the angel funding process.
When all parties are satisfied with the terms & language in the term sheet, the deal will be executed. But remember, closing the deal is only the beginning of the angel funding process.
Angel investors are high-net-worth individuals and family offices who invest in early stage of businesses participating mostly in the seed round. Angel funding provides much needed high-risk capital to the early-stage companies, coming in along with or just subsequent to funding from friends and family. Angel investors are successful entrepreneurs and experienced senior professionals and apart from offering financial capital, angel support the entrepreneurs with mentorship, business networks etc.
Venture capitalists are institutional investors who manage funds and invest in early-stage companies with compelling investment thesis, especially when there is proof of concept, credible team, large market opportunity, significant scale and exit potential. VC typically invest for a fixed horizon (5-8 years) and participate in multiple rounds of funding till exit. VCs usually invest in larger ticket sizes vis-a-vis angels, participating in later rounds of funding.
Venture capitalists are institutional investors who manage funds and invest in early-stage companies with compelling investment thesis, especially when there is proof of concept, credible team, large market opportunity, significant scale and exit potential. VC typically invest for a fixed horizon (5-8 years) and participate in multiple rounds of funding till exit. VCs usually invest in larger ticket sizes vis-a-vis angels, participating in later rounds of funding.
A good angel investor, apart from providing financial capital- i.e. money- aids the business in multiple ways: being successful businessperson, s/he can provide you strategic input, can add value to the governance process as a board member, can help you navigate business and operational challenges through his/her established contacts, help you negotiate and strike important partnerships and can also lend credibility to your startups when later rounds of funding take place.
Our investors look at all stages of business and across all sectors from genuine start-ups to more established businesses. The key consideration is whether there are angel investors who have interest in the sector and they are convinced that such investment will yield them returns commensurate the Signiant extent of risk they would undertake.
• At the beginning of each quarter, the team will conduct an initial screen of prospects to assess the investment thesis based on some set criteria such as scale potential, team strength, business and revenue model, funding need.
• Subsequently, the team will conduct through commercial due diligence on the shortlisted candidates and further narrow down the list. A slate of startups thereafter will receive support from the team to present their case to the investment committee.
• Startups who are able to attract angel funding of suitable terms and quantum for the round, often led by an anchor investor, will undergo tax, legal and financial due diligence in coordination with the Mlango team.
• Startups who are able to secure funding through the network are also offered with post investment support from the network.
• The entire process can take 2-3 months.
• Subsequently, the team will conduct through commercial due diligence on the shortlisted candidates and further narrow down the list. A slate of startups thereafter will receive support from the team to present their case to the investment committee.
• Startups who are able to attract angel funding of suitable terms and quantum for the round, often led by an anchor investor, will undergo tax, legal and financial due diligence in coordination with the Mlango team.
• Startups who are able to secure funding through the network are also offered with post investment support from the network.
• The entire process can take 2-3 months.
Valuing a startup, especially at the early stages without established track record, is quite difficult and requires application of significant judgement. At the stage at which angel investors participate, established valuation methods are of little importance. However, investors mostly use rule of thumb based on the future funding needs, exit value based on transaction multiple from similar sector/deals and come up with a valuation that yields the investor a desired stake while ensuring the entrepreneur team is well incentivized.
As a rule, angel networks do not charge founders/entrepreneurs for submissions and solicitations. We will typically seek to get a 2-4% commission on funds raised in the form of success fee.
An entrepreneur needs to ponder over the following questions to determine whether s/he should take angel investment in business:
• Am I willing to give up some amount of ownership and control of my company?
• Can I demonstrate that my company is capable to scale significantly in few years time-frame?
• Can I demonstrate that my company will produce a significant return for investors?
• Am I willing to take advice from investors and accept decisions from board members that I may not always agree with?.
• Do I have an exit plan for the company which may mean that I’m ultimately not involved?.
• Am I willing to give up some amount of ownership and control of my company?
• Can I demonstrate that my company is capable to scale significantly in few years time-frame?
• Can I demonstrate that my company will produce a significant return for investors?
• Am I willing to take advice from investors and accept decisions from board members that I may not always agree with?.
• Do I have an exit plan for the company which may mean that I’m ultimately not involved?.
All information shared with the network is treated with confidentiality by the team. Should the proposal be shortlisted for detailed due diligence, the network will execute an NDA. All showcases are closed-door, invite-only events designed for an intimate audience consisting of only serious investors.
We look for promising start-ups that are working to solve a clearly articulated problem for a well-defined target market, with a strong and balanced team that has a track record of success in past endeavors, that has or is working to develop a product and business model with a sufficient moat that makes it difficult to replicate, who are in the market for TSH 500000 to TSH 50,000,000 in investment.
You can do both. Do expect that your pitch deck will undergo several revisions and tweaks based on our feedback.
We will guide you in providing reporting to investors post-investment and track your needs for further funding. When we get solicitations by international and institutional investors looking for investments in Tanzania, we will look to showcase you for such investments.
For We look for everything from concept to growth stage.