Angel syndicates

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Following on from the topics of crowd funding, I thought I would follow up on Angel Syndicates.

I am an angel investor in a few startup businesses such as Fanduel, Fine Coffee Club and Flavourly, I have never invested in any business through an angel syndicate and I am not a member of any.

I have been a member of Highland Venture syndicate for a year or so when I lived in Nethybridge. My main issue is that angel syndicates is that the are generalists, they like to invest in lots of areas and typically are focused on local geographic markets. Edinburgh has a strong angel group in Archangels and there are quite a few others, including this women’s angel syndicate.

I applaud angel investors as putting time money and support into startups. Every business I have been involved in has had help from angel investors at some stage. But I like to invest with people I have worked with in the past and don’t really think being a general fund in any area increases performance.

From an entrepreneurs standpoint, it is much easier to get a single investor to invest than a syndicate – and typically the syndicate will have some charges or structure that will outway the simplicity that a solo angel may take (legals, class of shares, bad leaver etc)

If you are trying to get investment, find someone who an angel that you respect and they will typically be able to convince others they have invested with in the past to participate in the deal.

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