Syndicate

What is a Syndicate?

A syndicate is a group of investors who pool their resources to invest in a startup or project. Syndicates are often led by a lead investor who sources deals, negotiates terms, and manages the investment process. This approach allows investors to share risks and access larger investment opportunities while leveraging the expertise of the lead investor.

Benefits of Investing Through Syndicates

• Risk Sharing: The investment is spread across multiple investors, reducing individual exposure.
• Access to Expertise: Leverage the knowledge and experience of the lead investor.
• Diversification: Allows investors to participate in multiple deals, diversifying their portfolios.

Related Terms and Concepts

Angel investor, venture capital, lead investor, investment round