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Also known as: angel syndicate, investment syndicate

Syndicate

ConceptualFundraising

Definition

Syndicate: A syndicate is a group of investors pooling capital to invest together, typically led by an experienced angel investor or small fund. Syndicates allow individuals to access deals with smaller checks while providing startups access to a network of investors. The lead handles due diligence and often takes carry on profits.

Example Usage

“We raised $300K from a syndicate led by a well-known angel. Her due diligence attracted 40 investors who wouldn't have found us otherwise.”

Common Misconceptions

Syndicates mean more cap table names. The syndicate typically invests through one SPV, counting as one line.
Syndicate leads don't add value post-investment. Good leads stay engaged and help with intros and advice.
Syndicates are slow. Well-run syndicates can close quickly once the lead commits; most time is due diligence.

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