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If you track the venture capital industry it would be hard to miss the conversation going on this week over AngelList “Syndicates.” My favorite new VC blogger, Hunter Walk, weighed in with some thoughtful comments about how Syndicates might actually pit, “ angel vs. angel.” Must be doing something right!
Syndicates Those in charge of a syndicate are called “syndicate leads.” Individuals invest modest sums in numerous businesses, even when working together in syndicates such as angel networks. The earliest investors in a business are usually syndication.
We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage. Great returns in early stage investing is driven by great dealflow and good picking. This is not what Nextview is about.
We recently funded Blinkfire Analytics using our FG Angels Syndicate. In addition to bootstrapping his new company forever (since he’s a multi-time successful entrepreneur), Steve could easily raise an angel round any time he wanted to. So, we were psyched he was willing to do an FG Angels Syndicate with us.
At ffVC, our primary origination strategy is to provide a high level of services to entrepreneurs, and then let word of mouth spread. They’re the entrepreneurs on the cutting edge of their respective disciplines. We just need to assess each entrepreneur against our decision criteria.
Take a look at the founding syndicates of each: Masstor Sytems (5/1979). Quantum Corporation (6/1980). What is striking about these syndicates is that nobody had any meaningful capital, which forced syndication and cooperation. Some were Silicon Valley early stage companies, such as Apple, Quantum, and Masstor Systems.
Recently on this blog, I’ve been attempting to unpack how an investor can sort through dealflow and potential investment opportunities. After writing about “ the quick kill ” to discard of inbound flow, next I wrote about what actually captures my attention and graduates to a meeting.
Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. I said we had a lot of dealflow. Pioneer runs an extremely open contest focused on lowering the bar to raising capital for “scientists, artists, entrepreneurs and civic activists.” 2) Market .
Micro VCs are notorious for building large and friendly syndicates. While traditional VCs sometimes have a love/hate relationship with their syndicate partners (often depending on how well their mutual portfolio companies are performing), it seems as though in the Micro VC arena all of the players speak and act like best friends.
If you’ve been following along at home, you know that we recently created an AngelList Syndicate called FG Angels. We’ll contribute $50k to each investment; our FG Angels Syndicate will contribute up to $450k. 2 angels are considering creating their own AngelList syndicate as a result of their experience.
We are also seeing more investors try to be a part of syndicated A rounds for companies that are raising $5M or more and are really not what most would consider “seed” stage. Great returns in early stage investing is driven by great dealflow and good picking. This is not what Nextview is about.
We describe Foundry Group ‘s behavior as “syndication agnostic.” Because we are syndication agnostic, we are delighted to work with great co-investors and welcome and encourage the interaction and partnership. When I look at what drives my decision to invest, it’s the entrepreneurs and the product.
Chris Dixon, Partner, A16Z, observes , “ Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. Sebastian Soler recently launched Knowledge.vc , which uses software and machine learning to enhance deal sourcing and diligence for VC firms.
Gust (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals.
After two years of a dedicated experiment, we’ve decided to stop making new investments via our FG Angels Syndicate. The Monday after AngelList announced their Syndicate product in September 2013 we decided to to jump in with both feet and start FG Angels. Average syndicate investment amount per deal: $316k.
Gust (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals.
Find out what the buzz is all about and make valuable connections with local investors who you can syndicatedeals with. You should come along for the ride if you are interested in investing more in Texas technology and disruptive commerce companies and want to develop relationships with local investors who can be your dealflow.
We try to maintain a pretty steady investment pace each year, although it tends to ebb and flow a little bit based on our dealflow and valuations in the market. Syndicate diversification. So for the most part, we try not to be too dogmatic about syndicate partners.
It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked. Due to confidentiality provisions, I can''t disclose details, but there are many very unhappy participants who invested through the syndicate. Syndicates can either be company led or investor led.
I syndicated (helped them put together the round) in five: Notehall, MyZamana, Locately, Zippykid, and Instinct. Get an edge (lower valuations, better dealflow, etc.) You could look at this as unilaterally good for entrepreneurs but I don't think it is because it prices out completely people like me.
– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. The firm attracts dealflow by promising a decision (positive or negative) in under 2 weeks, with minimal paperwork and without repeating due diligence.
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