Addis Angel is a crowdfunding platform that connects Ethiopian startups with local and global investors. We help local startups and businesses in Ethiopia raise funds to scale, build credibility, and connect with a trusted network of supporters.

Follow these steps:

1. Complete the online application form at Addis Angel Startup Form
2. Submit required documents, including a pitch deck and proof of revenue.
3. Secure a Lead Investor (see more information below)
4. Collaborate with our team to prepare your campaign.

Startups that meet the following criteria:

• Based in or focused on Ethiopia.
• Generating revenue.
• Solving a real-world problem with a scalable solution.
• Legally registered as a business entity.

Currently, we prioritize startups with proven revenue. However, early-stage businesses may be eligible for future campaigns.

The application form asks for:

• Business name, industry, and location.
• Description of your product or service.
• Monthly/annual revenue and growth rate.
• Funding goal and intended use of funds.
• Team bios (founders and key members).
• A detailed pitch deck.
• Proof of revenue (e.g., sales reports, bank statements).
• Business registration/license.
• Legal agreements related to equity or revenue-sharing (if applicable).

A lead investor is someone who:

• Commits to at least 10% of your funding goal before the campaign launches.
• Represents all platform investors in voting matters, if applicable.
• Demonstrates confidence in your business, encouraging other investors to participate.

What are the qualifications for a lead investor?
A lead investor must:

• Be independent of your business (not a current or past director, employee, or close affiliate).
• Have the financial ability to meet the minimum commitment (10% of funding goal).
• Sign an agreement to act as the representative for the pooled investors in the SPV investing in your business.

How does the lead investor represent other investors?
In cases where investor voting is required (e.g., major business decisions), the lead investor votes on behalf of all platform investors. This simplifies governance and ensures clarity in representation.

How do I find a lead investor?
You can:

• Reach out to your professional network or early supporters.
• Work with our team for guidance on crafting a compelling pitch to attract lead investors.

We offer three funding models to suit your business needs:

1. Equity-Based Funding:
   • Offer investors a percentage of your company in exchange for funding.
   • Example: You value your startup at $100,000 and offer 20% equity to raise $20,000. Investors collectively own 20% if your campaign is successful.
2. Revenue-Sharing Model:
   • Share a portion of your revenue until investors are repaid a set multiple of their contribution.
   • Example: You raise $50,000 and agree to share 5% of monthly revenue until investors collectively receive $75,000 (1.5x return).
3. Hybrid Model:
   • Offer both equity and revenue-sharing to investors.
   • Example: You raise $100,000 by offering 10% equity and 2% of revenue until investors receive 2x ($200,000).

What is an SPV, and how does it work?
An SPV (Special Purpose Vehicle) is a legal entity created to pool all platform investors into a single group. The SPV:

• Makes the collective investment into your business.
• Receives any dividends or revenue-sharing distributions on behalf of the investors.
• Simplifies the relationship between the business and multiple investors.

What are the benefits of using an SPV?

• Streamlined Governance: The SPV consolidates investors into one entity, reducing the complexity of managing individual investors.
• Investor Representation: The lead investor represents all investors within the SPV for any necessary voting or decision-making.
• Clear Payout Mechanism: Dividends or revenue shares are distributed to the SPV, which then disburses funds to individual investors.

Who sets up and manages the SPV?
Addis Angel establishes and manages the SPV, ensuring all legal and operational requirements are met.

After your application is approved:

1. Define your campaign goals: Work with our team to set funding targets and milestones.
2. Enhance your pitch deck: We’ll help you refine your story to attract investors.
3. Build your campaign page: Include visuals, financial metrics, and a video pitch.

How long does it take to prepare my campaign?
The preparation phase typically takes 2–4 weeks, depending on the completeness of your materials.

• Transparency:
  Keep investors informed with regular updates on business performance and revenue.
• Revenue Sharing:
  If you select the revenue-sharing model, you must remit payments according to the agreed schedule.
• Ownership Dilution:
  If raising future funds, consult existing equity investors to ensure they maintain their rights (e.g., pro-rata).

Funds are disbursed after the campaign successfully meets its funding goal.

• Example: Your campaign target is $50,000. Once you hit this goal, the funds (minus platform fees) are released to your account.

If you choose an all-or-nothing funding model:

• No funds are released, and investors are refunded.

If you choose a partial funding model (if applicable):

• You may keep the funds if you reach a minimum percentage of your target (e.g., 80%).

Example:
Your goal is $100,000. If you raise only $60,000 under all-or-nothing, the campaign fails, and funds are returned.

We charge a percentage of successfully raised funds as a platform fee.

• Example: If your campaign raises $50,000 and the platform fee is 6%, you receive $47,000 after fees. We also charge an annual administrative fee of $1000 per year

We assist you in:

• Reviewing campaign content to ensure it complies with our standards.
• Marketing your campaign through platform channels.
  • Templates for email and social media promotions.
  • Guidance on leveraging your network to attract early investors.
• Providing templates for contracts (e.g., equity agreements or revenue-sharing terms).
• Help file all necessary forms required to release funds (e.g. registering company in the US, filing with SEC)

• Required Documentation:
  • Business registration certificate.
  • Financial projections.
  • Detailed use-of-funds breakdown.
• Standard Agreements Provided by the Platform:
  • Equity Agreement Template: Clearly defines the ownership structure and rights of equity holders.
  • Revenue-Sharing Template: Outlines payment schedules and obligations.

Yes, but changes require re-approval from our moderation team.

How are funds disbursed?

1. Addis Angel completes, and files all required forms, such as:
   • Form C (for offerings in compliance with SEC regulations in the US).
   • Investor Agreements outlining rights and obligations.
   • Any tax-related documentation for revenue-sharing distributions.
2. Funds are transferred to your business within as soon as it’s possible to release after campaign completion. Note there is a mandatory 21 day waiting period after Form C is filed with SEC.

Are there any ongoing obligations?
Yes, startups are required to:

• Provide at least quarterly updates to investors through the platform.
• Share key milestones achieved using the funds raised.
• Adhere to revenue-sharing or equity agreements made during the campaign

What risks should I disclose to investors?
Startups must disclose:

• Potential market risks and uncertainties.
• Financial risks, such as reliance on external funding.
• Any outstanding debts or liabilities.

Who handles legal agreements and compliance?
Addis Angel ensures compliance by managing:

• Investor agreements.
• SPV creation and governance.
• Regulatory filings for equity or revenue-sharing models.

Do I retain control of my business?
Yes, unless equity is exchanged. Even in equity deals, founders typically retain majority control unless a significant percentage is sold.

• Schedule a Q&A session with us [here].
• Email us at hello@addisangel.com.
• Visit our Startup FAQ guide