On AngelList, a syndicate is a group of investors who pool their capital to invest in startups through Special Purpose Vehicles (SPVs). As a backer in a syndicate, you gain access to individual deals and can choose whether to invest on a deal-by-deal basis – there’s no obligation to participate in every opportunity.
Investing through a syndicate 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.
By joining a syndicate on AngelList, investors can build a personalized portfolio of startup investments while benefiting from the insights and experience of proven lead investors.