How do syndicates work?
When investors pool funds to invest in a startup, a syndicate is formed. This syndicate can be ‘open’ or ‘closed’ (by invitation only). Headed by the lead investor, each syndicate is represented by a separate special-purpose vehicle (SPV), a private limited company created to invest those funds. Funderbeam has a few different structures to offer and you can learn more about them here
The lead investor negotiates syndicate terms (round size, valuation, ticket size, the number of investors, trading rights, lead carry, etc.) with the startup. When both sides are satisfied, the syndicate will be opened to potential investors.
These investors can indicate their interest, and if approved by the lead, they will join the syndicate.
Approved investments can be structured in different ways, so always be sure to check the details of the campaign to be aware of the type
️Warning: Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement