On AngelList, a syndicate is a group of investors who pool their capital to invest in startups through Special Purpose Vehicles (SPVs).
Investing through an SPV provides access to deals that individual investors might not source independently. It also allows backers to leverage the lead investor’s expertise in selecting and managing investments. By pooling resources, investors can participate in larger deals with smaller individual contributions, facilitating portfolio diversification.
In exchange for sourcing and managing deals, lead investors receive carried interest (or “carry”), meaning they take a percentage of the profits if the investment is successful.