You don't have to do this entirely alone
Every lesson so far has described diligence, sourcing, and negotiation as a solo effort, because that's the default position of an individual angel. But several structures exist specifically to let angels pool access, diligence work, and sometimes capital, without forming an actual investment fund with LPs and fund economics (Lesson 33 covers when it makes sense to go that far).
| Structure | Fees / carry | Control over the decision |
|---|---|---|
| Solo, direct investing | None | Full, yours alone |
| Angel group (membership-based) | Membership dues, sometimes small carry on group deals | Shared screening; you still decide per deal |
| Syndicate (deal-by-deal SPV, led by another angel) | Typically 5-20% carry to the lead, per deal | Lead decides terms; you decide whether to join a specific deal |
| Formal micro-fund | Management fee + ~20% carry | None per-deal; the manager decides for all LPs (Lesson 33) |
What a syndicate actually buys you
A syndicate is typically a single-purpose vehicle (an SPV, covered properly in Lesson 23) formed to pool several investors' capital into one line on a company's cap table, led by someone who has already done diligence and negotiated terms. Joining one trades a slice of your eventual return (the lead's carry) for access to deals you likely couldn't source or diligence alone, and for diligence work you don't have to redo yourself. It's a reasonable way to get exposure to stronger deal flow before your own network and reputation (Lesson 32) has fully developed.
What you give up
You're trusting the lead's diligence and judgment on that specific deal, which means the choice of which lead to follow becomes almost as important as the choice of which deal to back. A pattern of joining syndicates led by people whose prior calls you can actually evaluate, rather than joining based on a company's brand name alone, tends to produce better outcomes over time.
Checkpoint
- Angel groups and syndicates let individuals pool access, diligence, and sometimes capital without forming a full fund.
- A syndicate lead typically charges 5-20% carry in exchange for sourcing, diligence, and negotiated terms.
- Choosing which lead to follow is as important as choosing which deal to back, since you're trusting their diligence directly.
If anything here still feels unclear, ask before moving to Lesson 20.