What is a Syndicate?
A syndicate is a group of investors who pool capital to invest in a deal. The lead investor (syndicate lead) sources and diligences the deal, and takes carried interest (typically 15-20%) on the group's returns.
Platforms like AngelList and Signal have made syndicates easy to operate. GitDealFlow helps syndicate leads source deals: share weekly trending lists with your syndicate members.
Most syndicates invest $50-500K per deal from 10-50 LP investors.
Syndicate Economics
Carried interest: The lead gets 15-20% of profits. Standard in the industry.
Deal fee: Some leads charge 5-10% deal fee (controversial, avoid if you can).
Minimum investment: Most syndicates require $1-10K minimum per LP per deal.
Pro-rata rights: The syndicate as a whole gets pro-rata rights for follow-ons.
Building Your Syndicate
Start with 5-10 trusted LPs (fellow angels, operators, founders). Source 2-3 quality deals before recruiting more LPs.
Use GitDealFlow to surface deals for your syndicate. Share the weekly trending list and momentum data. Your LPs will appreciate objective deal sourcing signals.
Frequently Asked Questions
How much can a syndicate lead earn?
Top syndicate leads earn $50-500K/year in carry. Most earn $10-50K. The key is deal quality, not deal volume.
What's the difference between a syndicate and a fund?
Syndicates are deal-by-deal. LPs opt in per deal. Funds require committed capital. Syndicates are more flexible; funds provide more predictable capital.