On AngelList, a syndicate is a group of investors who pool their capital to invest in startups through Special Purpose Vehicles (SPVs). Backers in the syndicate get access to these deals and can decide whether to invest on a deal-by-deal basis – there’s no obligation to invest in every opportunity.
Investing through a syndicate provides access to deals that individual investors might not be able to 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, making it easier to diversify their portfolios.
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.