[Section 7] Essential Syndicate Skills: The Deal Process - Highlights
1. Syndicate vs. VC Fund Process
- VC Funds: Fundraise for 2-3 years, secure commitments, then deploy capital with capital calls.
- Syndicates: Start with deal sourcing and due diligence before fundraising on a deal-by-deal basis.
2. Common Mistakes in Syndicate Deal Processes
✅ Building investor networks before sourcing deals
- Avoid the instinct to find deals first. Pitching a deal as a first touchpoint can feel salesy and erode trust.
- Educating investors while pitching a deal creates time pressure and lowers engagement.
✅ Avoiding information overload
- Dumping a full deal memo/prospectus upfront is ineffective.
- Instead, drip-feed information to engage investors gradually.
✅ Founder calls at the wrong stage
- Hosting a founder call too early is a big ask and may not be effective.
- Instead, save the founder call for engaged investors (~70% committed) to push them over the line.
3. Structuring the Syndicate Deal Cycle
📌 Target timeline: 4-6 weeks from deal launch to close.
- Phase 1: Deal Flow & Diligence → Quickly filter and qualify deals, then conduct formal diligence.
- Phase 2: Marketing & Fundraising → Announce the deal, share updates, and schedule a founder call.
- Key rule: Investors need to hear about a deal 3 times for maximum engagement.
- Key rule: Investors need to hear about a deal 3 times for maximum engagement.
- Phase 3: Administration & Closing → SPV creation, investor follow-ups, capital calls, and closing.
4. Publishing the Deal – A Critical Step
- Pre-planning activations helps maintain momentum.
- Investors who don’t respond after three touchpoints are unlikely to engage further.
Founder calls act as a final push before closing commitments.
