These Legal primers have been developed as a resource for the new supplementary AAA Syndication Module, the first of AAA’s more advanced Active Angel series. This module suitable for angels from any country, builds on the angel investing foundational online course and aims to equip investors with the knowledge and confidence to participate in syndicated deals, and to promote collaboration within the angel investing ecosystem in the continent. The legal primers outline common syndication and angel deal structures available to angels in Kenya, Nigeria and South Africa.
For further detail on each structure and the suitability of using a specific structure for your deal or syndicate, please feel free to reach out to the legal partners mentioned in the respective primers.
These legal primers comprise of the following sections:
An overview of the various syndication structures/vehicles available to angels making investments. It explores the advantages and disadvantages of each structure, and any tax, legal or compliance requirements when using the structure.
Angel transaction structures
The available structures for angel investment deals. It also outlines the advantages and disadvantages of each structure, and any tax or legal implications or compliance requirements.
The academy strongly encourages programme participants to either join or form a syndicate in their angel investing journey, depending on their experience level. Not only does syndication have significant benefits for the participating angels but it can have a significant impact on startup success.
For angels, syndicating is a great way to learn more about the investing process from more experienced leads, access more deal flow, access larger deals (by pooling capital) and, of course, to decrease their risk by building a diversified portfolio with access to a diversified pool of expertise. Startups may benefit from having a pool of angels with different backgrounds who are a great resource from a knowledge and networks perspective.
Interested in learning more about Syndicating? Pre-registration will be going live in June.
These notes have been developed by Bowmans Kenya for the African Angel Academy as part of the African Angel Academy’s Syndication Module. The content developed for this module was funded by the UK Government’s International Tech Hub Network via its UK–Kenya Tech Hub.
These notes have been developed by TLP Advisory for the African Angel Academy as part of the African Angel Academy’s Syndication Module. The content developed for this module was funded by the UK Government’s International Tech Hub Network via its UK–Nigeria Tech Hub.
These notes have been developed by Dommisse Attorneys for the African Angel Academy as part of the African Angel Academy’s Syndication Module. The content developed for this module was funded by the UK Government’s International Tech Hub Network via its UK–South Africa Tech Hub.
About the International Tech Hub Network
These legal primers were developed with support from the UK–South Africa Tech Hub, UK–Kenya Tech Hub, and UK–Nigeria TechHub. These hubs are part of the International Tech Hub network delivered by DCMS (Department for Digital, Culture, Media, and Sport), under a UK government initiative designed to promote inclusive growth of digital ecosystems in partner countries. Over the past two years, the Tech Hubs have partnered with the African Angel Academy to train, network, and mentor emerging angel investors and groups, connecting them to promising local startups and supporting them through an alumni network.
INFOGRAPHIC: AAA & UKITH impact achieved to date
The African Angel Academy (AAA) is an online programme and knowledge community, which was established in 2020 by Viridian and ViKtoria Ventures, supported by the African Business Angel Network (ABAN), to grow the number of active angel investors on the continent. Drawing on the expertise of early-stage investors from across Africa, the Academy offers virtual learning and networking courses for those looking to start or grow their angel investing portfolio.
As of 2022, AAA’s alumni network comprises close to 400 (and counting) individuals representing more
than 18 angel investing groups in 11 countries.
The Angel Investing Foundations course is available for anyone to purchase and start learning at their own pace, alternatively you can also join as part of a group in a partially sponsored cohort programme run by AAA and partners throughout the year. In the cohort format, the online course is offered to selected participants along with live masterclasses, Q&As, networking and mentorship opportunities, and showcases spotlighting promising local startups.
To find out more about AAA’s programme and course offerings, visit africanangelacademy.com/programmes.