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, outside the platform, to participate on the platform, by inviting them on the platform.
- Personal Concierge: LetsVenture will allocate one analyst resource during the deal opening timeline who will work with the Lead team 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 SHA
- 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: LetsVenture is working with different PR agencies and will be launching a “Lead Investor Showcase” Series. We will feature our lead investors as part of this. All PR release made on the funding closure will include the Lead investor quote.
- Lead Incentive: LetsVenture term sheet enables the lead incentive OR carry model to be discussed and agreed between the investor and the entrepreneur.
- Business Model: Contact email@example.com to get the details.
How do Syndicates work on LetsVenture?
There are 2 ways in which syndicated deals work on LetsVenture:
- Featured deals - 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. While any investor interested in the round can invest, the Lead/Startup has the right to choose the final set of investors based on the alignment in the vision.
- 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 method 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 at least 10-15% of the round
- Work with the startup to set the valuation and terms of investment
- Represent the investor syndicate during fundraising (pitch on behalf of the startup, review term sheet, answer investor questions)
- When number of investors is greater than 5, Lead Investor is provided with the PoA (Power of Attorney) for all the investors in the round.
- Based on the board seat allocated, sit on the board of the Startup
- Work with the Startup on the advisory and next rounds of funding