LP Engagement Case Study: Warm vs. Cold Syndicate Networks

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[Section 12] LP Engagement Casestudy - Highlights

1. The Importance of Investor Engagement
   
   • Engaged investors are critical for a syndicate’s success.
     
   • One-to-one onboarding is an upfront investment that unlocks scale when deals are executed.
     
2. Case Study: Warm vs. Cold Investor Networks
   
   • Warm Network (Angel School)
     
     • Prioritises onboarding and engagement.
       
     • Metrics show higher investor commitment and trust.
       
   • Cold Network (Abel’s Syndicate)
     
     • Grew rapidly (1,600+ investors in a year) with minimal engagement.
       
     • Relies purely on volume, lacking relationship depth.
       
3. Operational Differences
   
   • Abel’s syndicate had two partners + one full-time employee at $6K/month for operations.
     
   • Lacked proper infrastructure, tools, and engagement strategy.
     
   • As a result, struggled to convert investors effectively.
     
4. Funnel Metrics Comparison
   
   • Angel School:
     
     • 15% investor engagement rate → 25% commitment rate → $560K per deal (with an avg. check of $15K).
       
   • Abel’s Syndicate:
     
     • Only achieving ~$250K per deal despite a larger investor base.
       
     • Engagement x commitment rate is 3.6x lower than Angel School’s.
       
5. Conclusion
   
   • Warm, engaged networks vastly outperform cold, high-volume networks.
     
   • One-to-one onboarding builds trust, which directly unlocks capital.
     
   • Even at scale, investor engagement remains the biggest bottleneck in syndicate performance.

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