You can always oversubscribe a second time and still take down more capital than listed as allocated. There shouldn’t be an unreasonable delta between these two, and you probably don’t want to move the goal line more than once. In addition, you will decide how much of the round to Syndicate, and what the minimum allocation is (what you start with for size of round) and maximum allocation is (if you get oversubscribed, you can increase the allocation). Together you will build or spruce up your company’s AngelList profile, selling the sizzle and the steak. While having a Syndicator can greatly reduce the amount of effort involved in raising on AngelList, it’s a partnership, which is why finding a Syndicator you want to work with is so important. What should I expect from my Syndicator, and what’s expected of me? That said, there will likely be Syndicators without a track record but with access to long-tail backers, but taking their capital – like taking capital from a tier III VC – might have downstream consequences on your ability to raise brand-name capital (if that’s your plan). Say you’re addressing an unsexy or difficult-to-understand, but big, problem you can now find an expert in that domain to invest and then syndicate like-minded investors also passionate about that domain.īut if you’re failing to raise capital because of more fundamental issues, Syndicates might not be much help, as Syndicators will only be as good as their investments. If the usual suspects don’t get your story despite incredible traction or similar, then perhaps. I’ve had trouble raising will Syndicates solve that? …Or any number of company-specific, good reasons to Syndicate.Do an entire bridge round quickly without having to take any meetings.Avoid having to deal with an institutional investor “get in the way” because you’re a seasoned entrepreneur who knows what to do and just need the raw capital to prove product/market fit.Build some public buzz around your company, either in advance of an A, or for customer acquisition, or just because.Roll in a bunch of small checks from friends and family into a single entity on the cap table, allowing them to participate in your company’s growth while keeping them an arm’s length away (as Manager of the Special Purpose Vehicle LLC created to make the investment, the Syndicator will be the primary contact for all members of the LLC).Enhance your presence on AngelList because it’s become the single best place to hire developers and designers in the Valley.Close out your round quickly because you have the key folks you need already on board and your time is better spent executing.Attract brand-name investors you don’t have access to but might get via your Syndicator or as commitments are shared.This is the biggest question in my opinion, and as the platform evolves, the answer is becoming clear: it depends. I’m crushing it and can raise capital just fine why would I want to Syndicate?
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