There are no requirements to simply start a syndicate. Your commitments begin when you syndicate your first deal. You must typically:
- Make an investment in each deal
- Provide an investment thesis for each deal
- Disclose potential conflicts of interest such as warrants, advisory shares or an investment in a previous round
- Review and screen potential investors in each deal
- Sign a side letter making you an independent contractor of the fund’s investment adviser and provide information requested by the fund’s investment adviser
- Respond to reasonable questions from syndicate investors about their investments
Leads are not required to syndicate every investment they make.