Fundraising
Syndicate
A group of investors co-investing in a deal together, often organized by a lead investor who does diligence and brings in other investors at the same terms.
A syndicate is a group of investors pooling capital to co-invest in a single deal. The syndicate lead sources the deal, conducts diligence, and negotiates terms; other syndicate members (backers) invest alongside the lead. AngelList popularized structured syndicates where leads build followings and co-investors back their deal flow through SPVs. Syndicates provide: access (co-investors get deals they'd otherwise miss), efficiency (lead does the work), and diversification (backers can participate in many deals at smaller individual check sizes). From the startup's perspective, syndicates are cleaner than managing many individual angels — one SPV = one cap table entry. Syndicate leads typically charge a carry (10-20%) on the syndicate's returns, in addition to whatever carry the lead's personal fund charges.