A syndicate is a group of investors that pools their capital to invest into deals (SPVs).
When you back a syndicate, you'll be invited to deals that you can choose to invest in on a deal-by-deal basis. There is no commitment to invest in deals when you join a syndicate.
A syndicate allows investors to participate in a lead investor's deals. In exchange, investors pay the lead carry.
Here's an example: Sara, a notable angel investor, decides to lead a syndicate. The syndicate investors agree to invest $200k total in each of her future deals and pay her 15% carry.
When Sara makes her next investment, she offers to invest $250k in the company. She personally invests $50k and offers the remaining $200k to her syndicate.
If the investment is successful, the syndicate investors first receive their $200k, after which every dollar of the syndicate’s profit is split 80% to the syndicate investors, 15% to Sara and 5% to AngelList Advisors. AngelList Advisors is a venture capital exempt reporting advisor with the Securities and Exchange Commission, and a subsidiary of AngelList.