Syndicate

A group of investors pooling money to invest in a single company alongside a lead investor, typically through a special purpose vehicle.

Example

Forty individuals invest 10,000 each through an SPV led by an experienced angel.

Carry is usually charged deal by deal, so winners generate carry that losses on other deals do not offset.

Special Purpose Vehicle (SPV) — A legal entity created to hold a specific investment on behalf of a group of investors.
Carried interest — The share of a fund's profit that the manager keeps, conventionally around twenty percent, usually payable only above a defined return to investors.

Good co-investors share deals, diligence and the hard conversations — Relationships with other investors - syndicate leads, angels and funds - provide deal access and shared diligence. They are built on reciprocity, reliability and honest views about deals. (10 min)
A syndicate lets you back one deal alongside a lead, and charges carry on that one deal — Syndicates pool individual investors into a single-purpose vehicle to invest in one company alongside a lead investor. They lower minimums and provide access, while charging carry and fees on each deal. (12 min)
An angel invests their own money, and that changes everything about how they decide — Individual and angel investors put personal capital into companies. They move fast, write smaller cheques and answer to nobody - which is both their advantage and their risk. (9 min)