# What is Syndicate? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/syndicate](https://spidits.com/startup-glossary/syndicate)

## Definition
A Syndicate is a group of angel investors or smaller venture funds who pool their capital together to invest in a single startup.

## Architectural Mechanics & Deep Dive
A Syndicate is a group of angel investors or smaller venture funds who pool their capital together to invest in a single startup. Often led by an experienced lead angel or syndicate lead, the group operates under a single Special Purpose Vehicle (SPV) to keep the startup's cap table clean. Syndicates allow individual angels to access high-quality deals with lower check sizes while leveraging the lead's due diligence.

## Industry Applications & Real-World Use Cases
Pooled early-stage investing using Special Purpose Vehicles (SPVs)

## Frequently Asked Questions

### How does a syndicate invest?
They pool capital into a single Special Purpose Vehicle (SPV) which registers as a single entry on the startup's cap table.

### Who manages a syndicate?
A syndicate lead, who selects the deal, negotiates terms, and receives a portion of the profits (carried interest) from other syndicate members.

## Related Terminology
- [angel-investor](https://spidits.com/startup-glossary/angel-investor)
- [lead-investor](https://spidits.com/startup-glossary/lead-investor)
- [cap-table](https://spidits.com/startup-glossary/cap-table)

---
*From the SPIDITS AI Knowledge Base (311+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*