How To Find a Syndicate

Have you ever thought about getting involved in Angel Investing? Here’s a crash course on how to find a great investing syndicate…

The best thing about a syndicate is that it serves as a pool of resources that benefits both the participants, the portfolio company, and the founders they invest in! A syndicate takes advantage of all the benefits that the “crowd” has to offer. Syndicate members become investors, beta testers, evangelists, customers, and network referrals.

A good syndicate has an experienced lead, a balanced fee structure, and a reputable track record.

1. A great syndicate lead spends time securing allocations in often highly competitive rounds (which can be years in the making), works with the founders to collect, compile and present the key information, prepares and launches the deal, and then provides IR support and ongoing updates to investors.

- It’s efficient to have one syndicate lead act as the promoter to LPs and investors
- It’s easier for investors and founders to have one line item on the cap table

2. When doing diligence on potential syndicates, make sure to look at the fee structure:

- Admin, setup, and management fees typically range between 5% and 15% of the invested capital. You often “get what you pay for” in life so be careful about being too “fee sensitive”. The best deals led by the best GPs are often priced accordingly. After all, you are not obligated to invest.

- Standard investor carry is typically 20%.

3. Do research on the track record of the companies in the syndicate portfolio, so far. Don’t be afraid to ask the lead for details on their prior performance! They may not share that information publicly, but they’re usually willing to reveal it to prospective investors.

Want to learn more about syndicates? Email me at ben@superangel.vc and I’d be happy to explain more of the details.

Are you ready to get involved?

I run a syndicate of my own where I and 2,000+ other members invest in some of the most promising companies in the Consumer and eCommerce spaces.

If you want to learn more, you can apply to join SuperAngelSyndicate.com