Why should I have a Lead Syndicate profile on LetsVenture?
By creating a Lead Syndicate profile on LetsVenture, you can aggregate backers and build visibility on corpus available for the deals you Lead. You get the following advantages:
- Personalized Platform: LetsVenture allows you to select the investors you want to invite to join the syndicate. You can also invite your own social circle who are outside LetsVenture , to participate in the transaction by inviting them on the platform.
- Personal Concierge: LetsVenture will allocate one analyst during the deal who will work with the Lead to create the investment thesis for the deal, which can be shared to all prospective investors.
- Program Management Support: LetsVenture team will provide complete support in program management of the investor communication during the deal. This includes -
- Standardized term sheet templates, which offers process efficiency
- Support with brief on term sheet and Share Holding Agreements (SHAs)
- Co-ordination for term sheet reviews, SHA signatures, PoA signatures (if applicable), share certificate issue.
- Any additional backend support needed for round closure
- Angel Reputation Management: All PR release made on the funding closure will include the Lead investor quote.
- Lead Carry: LetsVenture allows the Lead Investor to charge 0-15% carry through the Lead Syndicate.
- Business Model: LetsVenture charges a fee to the Startup based on the funds being raised on the platform and upto 5% carry from Investors.
How do Syndicates work on LetsVenture?
There are 2 ways in which syndicated deals work on LetsVenture:
- Featured deals - In a Featured deal, the Startup profile is visible to all the investors on the platform. This method is adopted to help close the round quickly.
- Stealth/Private deals - In a private deal, the Startup profile is not visible to all the investors on the platform. Only those investors who have been provided access to the startup can view the profile. This is used when either the Startup or the lead want to socialise the deal with strategic investors or with the lead’s co-investor group.
What does being a Lead Investor mean?
A lead Investor could be an individual or a group of 2 – 3 investors (who could co-lead the round). As a Lead Investor, the following is expected:
- Invest atleast 10-15% of the round
- Work with the startup to set the valuation and terms of investment
- Represent the investor syndicate during fundraise (pitch on behalf of the startup, review term sheet, answer investor queries)
- Based on the board seat allocated, sit on the board of the Startup or as an observer.
- Work with the Startup on the next rounds of funding