How to Start a Syndicate

Jul 15, 2022

30:08

How to Start a Syndicate

In today’s episode we find how one gets into Venture Capital and deep dive into everything about a Syndicate.

Some Points Covered in This Episode Include:

What is a syndicate, and how is it different from an SPV?
What is the appeal of a syndicate?
1. As an investor
2. As a company
3. As a manager
How do syndicate managers/operators make money?
1. Syndicates also charge carry - usually 20% in total. Carry is a cut of positive returns generated by the investment. Example: let's say you invest $1000 in a syndicate with 20% carry. If the investment returns $2000, the syndicate would earn $200 in carry. 20% * ($2000 - $1000).
2. https://angel.co/syndicates/for-investors#requirements
Who are the most common syndicate leaders?
1. Jason Calcanis
  1. Uber
  2. Calm
2. Dave Eisenberg
  1. Coinbase
  2. Warby Parker
3. Tom Williams (from Apple)
  1. Layer 6
How do you manage a syndicate?
1. AngelList
2. Assure
3. Attorney/Accountant
What does it cost to start a syndicate?
1. AngeList charges a one-time fee of ~$8,000
2. https://angel.co/syndicates/for-investors#requirements
3. Hidden costs of finding investors
What are the SEC/accreditation rules for starting one?
1. Salary of $200k+
2. Net worth of $1M+
3. Work in industry
4. https://help.venture.angel.co/hc/en-us/articles/360047682112-What-is-an-accredited-investor-
Who should start a syndicate?
Who should not start a syndicate?
Areas of specialization:
1. Geography
  1. Utah-based
2. Industry based
3. Alumni Syndicates
  1. Facebook
  2. AirBNB