Syndicates are a scaling lever for capital. Simply put, they allow you to invest much more capital than you could by yourself. This lets you access more deals, perform better diligence, and earn more by charging carried interest.
We’ve learnt that if done right, your LP base should grow organically over time. This increases your ability to deploy capital, resulting in a virtuous feedback loop.
What are the requirements to qualify for Angel School’s Fellowship program?
Angel School’s mission is to help emerging Angels build, run and scale their own syndicates. We recommend these 3 criteria for success:
Basic experience: you should have invested in at least 3 venture deals
Hustle & passion: We’ll give you the tools to be successful but it could take 6 - 12 months to get your syndicate to critical mass. You need to put in the work and be committed to the journey
Network: Your first LPs are already in your professional network. We recommend that you have a wide enough network to find your first 50 investors.
I’m not based in the US. Am I eligible to join the Syndicate program?
Absolutely. The Angel School program and investment committee is run completely online. Fellows from our first 2 cohorts came from 9 countries.
Is there a fee to join Angel-School?
Yes, there is a $3,500 fee to join the Angel School community. There are no annual fees currently.
How do I build my own syndicate without a investing track record?
There are a few ways we can help.
As a program Fellow, we’ll arm you with Angel School’s portfolio and track record.
We’ll also help you to refine your pitch and with your LP messaging.
We’ll cover more 0 - 1 strategies in our syndicate program.
How can I find out more about the Angel School Fellowship? Is there someone I can speak with?
Here’s a presentation about the Syndicate program and Angel School Fellowship TM.
We stay in touch with our portfolio companies on a monthly basis and share investor updates once every 3 - 6 months. We’ll provide extraordinary updates on an ad-hoc basis as needed.
How do companies exit?
There are 2 main ways for companies we invest in to exit- IPO or M&A. Another exit path is a ‘secondary transaction’ whereby a later stage investor offers to buy out early investors. In this situation, as the syndicate organizer, Angel School has the right to make decisions on behalf of investors.
What is the exit period like?
Every company is different so there’s no such thing as a typical holding period. We look at companies (software sector) as a series of milestones. The first one the series A milestone; typically, this requires $1MN ARR and 90% of startups fail to reach this. In order to get to an IPO or M&A exit, they need to achieve $100MN ARR. A fast growing company can achieve this in 5 - 7 years. We screen companies for their potential to achieve this.
What do I need to be part of an Angel School syndicate?
Our website is angelschool.vc. You can join our network by subscribe here.
Is there a return hurdle?
No. Unlike funds, syndicates do not generally apply a return hurdle. With a syndicate, you are also not subject to 2% annual management fees that fund charge.