A syndicate is a group of investors who pool capital into a single deal, led by one investor who manages it for the others. The lead (called the "syndicate lead") sources the deal, conducts diligence, negotiates terms, and runs the investment on behalf of the backers. Syndicates allow individual investors to participate in deals they could not access alone and let founders consolidate many small investors into a single line on the cap table.
The modern syndicate playbook was built around AngelList, where lead investors raise per-deal funds (Special Purpose Vehicles, or SPVs) from a pool of backers and write a single check into the startup. Syndicate leads typically charge backers a carry of 15 to 25 percent on profits, with AngelL...