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What is a Angel Syndicate?

Definition

Angel Syndicate

An Angel Syndicate is a group of individual angel investors who pool their capital together to invest in a single startup under a single legal entity (typically an SPV).

Detailed Deep Dive

Angel Syndicates consolidate early-stage capital. By pooling individual angel checks into a single Special Purpose Vehicle (SPV), syndicates provide founders with large amounts of capital while preserving a clean capitalization table.

Frequently Asked Questions

Q:Who leads an angel syndicate?

An experienced lead angel who conducts the due diligence, negotiates terms, and earns carried interest on profits.

Q:What is the benefit of a syndicate for a startup?

It allows the startup to raise larger checks from many individuals while keeping the cap table clean with a single entity.

Quick Facts

  • CategoryFunding
  • Key ApplicationEarly-stage capital fundraising and cap table consolidation

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