Zafar Kanani writes for Finance Digest on What are investor syndicates and how can they work for you?
Angel investing is by its nature a risky endeavour. Every investor naturally has an overarching goal to minimise risk and maximise returns. In the context of angel investing, ensuring that the relevant elements needed to achieve this are in place is easier said than done.
Investor syndicates are an excellent way of optimising risk and return. In broad terms, a syndicate is simply a group of investors that work together to leverage each other’s resources. In this way, investors can work as a group to find, access and invest opportunities, and thus as a group to can benefit from sharing in the associated risks and rewards. When it comes to the structure of a syndicate there is no set modus operand. The syndicate structure can be established to suit the investors’ preferences and thus a gradient of alternatives might apply.