How to Start a Syndicate

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:

1. What is a syndicate, and how is it different from an SPV?
2. What is the appeal of a syndicate?
   1. As an investor
   2. As a company
   3. As a manager
3. 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
4. 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
5. How do you manage a syndicate?
   1. AngelList
   2. Assure
   3. Attorney/Accountant
6. 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
7. 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-
8. Who should start a syndicate?
9. Who should not start a syndicate?
10. Areas of specialization:
    1. Geography
       1. Utah-based
    2. Industry based
    3. Alumni Syndicates
       1. Facebook
       2. AirBNB

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