![]() Members have not given any money to AngelList or FG Angels for the syndicate and ultimately, the investor must make their own decision on each deal and then transfer money on a deal by deal basis. It’s worth reiterating that unlike a mutual fund, the investors are not committed to investing in every company that any syndicate backs, so the $426k from the members of FG Angels represents the maximum investment if every member decided to contribute (and again, as a practical matter given the number of members in the syndicate and the exemptions that AngelList relies upon to fund these syndicates the actual maximum is below this number). At the time of FG Angels investment in U Grok It, their syndicate total was $426k (that total excludes the FG Angels portion). In parallel they open the investment to their syndicate members on AngelListĪngelList shows for each syndicate the amount that the syndicate leader will invest and the amount pledged by all the syndicate members as a whole (shown as “backed by” on AngelList).Foundry Group (or your syndicate leader) invests their portion – in FG Angels case this is $50,000.There are 2 parts to the FG Angels or any AngelList Syndicate investment: Syndicates aren’t automatic capita – you’ll still need to work for your money. And, of course, it will also require some work on your part to pull syndicate members into your actual deal. And depending on how many members there are to the syndicate and what crowdfunding exemption you use (more on that below) the actual limit will likely be quite a bit less than the total you see next to the syndicate name on AngelList. As a result the syndicate size isn’t the total amount of money you’ll raise – it’s the maximum you’ll raise from the syndicate. The key here is that this isn’t a hard commitment – each syndicate member makes a deal by deal decision to invest. It’s important to understand that AngelList syndicates work somewhat like an opportunity fund, where AngelList investors sign up to “follow” a syndicate and pledge to invest a certain amount of money. How AngelList Syndicates (and FG Angels) Works I’ve edited the text and added some things of my own, but this is largely the work of Carrie Requist, CEO of UGrokit, a company we recently funded through FG Angels. We often get asked how the process works and while what’s below has specifics about working with FG Angels it also contains some great advice for anyone raising money on AngelList in general, and through Syndicates specifically. Since then we’ve completed about 10 deals (I say “about” because we have a few things in various stages of completion as I write this – the intent of FG Angels is to make 50 AngelList investments – about 1 per week). We were the first formal venture fund to do this. It’s a great idea and at Foundry we quickly decided it would be an interesting experiment to form our own syndicate. A few months ago AngelList announced Syndicates – enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor).
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