What are Syndicates?
Syndicates allow angel investors to join the investing circle of a Lead Investor, and solicit access to deals being led by him. Once you join the Syndicate, you become among the first ones to know about a new deal that is being launched by the Syndicate. For example, if you back Sanjay’s Syndicate, anytime Sanjay starts a new deal, you will be informed about the deal and can participate in the deal before anyone else. [Note that Sanjay may also choose to share the deal only with a select list of backers first, based on his discretion].
As a "backer" of a Lead's Syndicate you can choose to Auto-Commit or evaluate each deal in the specified time limit before committing.
Why should I join a Syndicate?
By joining a Syndicate, you can piggyback on the experience of the Lead Investor and also become the first ones to be notified about a new deal. This is -ideal for a new angel investor or an investor not having enough time to do his own due diligence with the Startup founders.
How can I join a Syndicate?
When you visit the Syndicate page, click the button “Join the Syndicate” in the sidebar and fill up the information in the next few dialogs to complete the process of joining the Syndicate. After that you will get notified when any new deal opens though that Syndicate. Note that the Lead may also choose to share the deal only with a select list of backers first, based on his discretion.
What is Auto-Commit option in a Syndicate?
Auto-Commit is a way of securing your participation in the deal as soon as the deal opens up and before any other investor reviews and manually commits into the deal. You will however have 7 days to review if you want to opt-out of the deal - Opting out needs to be justified to the Lead and if it is without reason, LetsVenture will take suitable action.
What are the terms of investing through a Syndicate?
The terms of investment may vary from deal to deal when you invest through a Syndicate. The Lead Investor will announce the terms - Lead Incentive, method of availing the Lead Incentive, min commitment per backer and time-limit for commitments when launching a deal through his Syndicate. A typical Lead Incentive value is shown on the Syndicate profile page.
How is this different than the current Featured Deals of LetsVenture?
Featured Deals on LetsVenture are the deals that are selected by LetsVenture team to be featured. These deals could be either through the Lead Syndicates program or regular program of any other lead investor leading the deal.