Creating an AngelList Syndicate
I'm considering creating an investment syndicate an AngelList.
As a startup founder in Silicon Valley, I see a number of interesting startup companies, some of which are fundraising. Creating a syndicate would allow others to invest in these startups with me.
If you are interested in backing my syndicate, please visit https://angel.co/drodio/syndicate and sign up as a backer. The minimum backer amount is $2,500 per investment. I'm planning on doing one investment per quarter (four per year), which means you would allocate $10,000 per year to this syndicate. Only accredited investors are allowed to become backers (that may change if & when the SEC implements Title III of the JOBS act). This means to become a backer, you need to have a net worth of at least $1MM, or income of at least $200k per year for the last two years ($300k if joint income).
If I get enough backers, I'll proceed with the syndicate. If you have questions about how syndicates work, you can read the AngelList FAQs here or ask questions in the comments below.
If I do proceed with the syndicate, then I'll form a small team to perform due diligence on deals. I also plan on investing in each company myself as a member of the syndicate.
IMPORTANT! Investing in startups is an incredibly risky proposition. Many startups -- even the really promising ones -- crash and burn, returning very little to nothing to their investors. Having said that, sometimes investors do see some incredible returns. That's why I like the syndicate approach so much -- it allows you, as an investor, to make a number of small bets, instead of fewer large bets. This gives you a shot at having out-performing winners cover the losers. But don't become a backer unless you're fully prepared to lose the funds.