Fundraising

Angel Syndicate

Definition

An angel syndicate is a group of individual investors who pool their money to invest in a startup together, usually organized and led by one experienced angel who negotiates the deal on behalf of the group.

Platforms built specifically for this, AngelList is the best known, let a lead investor create a deal, and other investors commit smaller amounts alongside them, often through a single special purpose vehicle (SPV) that shows up as one line on the cap table instead of dozens of individual investors.

For a founder, a syndicate can mean access to a wider network and more capital than any single angel could write alone, but it also means the cap table shows one consolidated entity rather than the individual people actually backing the company, worth understanding when it comes to who founders can actually go to with questions later.

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