Angel School

Building your LP network isn't the HARD part of running a syndicate. That's RIGHT! Finding investors to share venture deals with isn't the crux of running your own Angel network. That's because in a Syndicate model, LPs hold decision making power. They decide (which deals to invest in) x (how much). The bottleneck in your funnel is investors ENGAGEMENT. What makes the difference between a syndicate that simply shares deals vs. one that manages to invest? Think about running your Syndicate like a 3-stage Sales Funnel: 1️⃣ Distribution: How do you get a deal out to your investor network? → The key is to make it easy for LPs. I use email automation because everyone has an email. 2️⃣ Engagement: How do you get LPs interested in a deal? → Communicate the deal in easy-to-understand yet concise language. Stick to facts and figures. Don't oversell the deal. 3️⃣ Commitment: Convince LPs to invest in the startup's potential. → This is where your Due Diligence shines. A well put-together dataroom and investment memo shows LPs you've done the work. But here's the kicker: 'Investor Communication' is the magic ingredient that ties everything together. Especially during the engagement and commitment phases. Often, this is where things can fall apart. How you present a deal can either make or break investor interest. With a 1300+ LP network I’ve analysed hundreds of pitches and conversations between founders and investors to distill what works. Here’s the secret sauce: Investor's have a 'language' that is different from how founders pitch. There are certain things that investors want to know. I've decoded this language into a straightforward framework that I use to share every deal to my LP network. It's structured, concise, and easy to understand. It gives investors everything they need to want to dig deeper. My syndicate combines this framework with scalable, functional tech. It helps us repeatedly close deals into the right companies. It's the cornerstone of our syndicate's growth and funding for successful start-ups. If you’re interested in the successful frameworks we use behind the scenes, feel free to reach out by DM.

Here's a simple 3 step roadmap to start your own Syndicate: Step 1. Gather a group of investors Step 2. Create your syndicate on a platform like Angel List Step 3. Launch your 1st deal Easy right? WRONG! There's pros and cons of using digital platforms like Angel list. On balance, I think the downsides outweigh the advantages. Investing in startups is also not a 'hair on fire' problem. No one NEEDS to invest in a startup so pulling LPs to a platform is more difficult than it seems. Syndicates are about creating an equity engine. The economics aren't built for cash generation. That's why you need to be super careful about your tech budget. Big budgets also don’t always buy better results. Venture tools can cost 10 - 20x more than a generic one. A regular CRM is 85% identical to a Affinity. It's easy to spend $1000's each year on tech. Here's how you can build a successful LP network that runs efficiently with minimal spend. You don't need the fanciest, verticalised tools to run your syndicate. You can achieve what you need without cutting functionality and efficiency. When setting up our syndicate, your first instinct might be to go big. Here's my Syndicate tech set up: 1️⃣ Data Room: You need cloud storage to organize your startup information and control rights for who gets access. Google Drive is a bit clunky but does the job. 2️⃣ CRM System: Forget fancy Venture CRMs —Use a standard CRM that stores LP information. That's 90% of what you need without a hefty price tag. 3️⃣ Distribution: Reach your investors where they are. Don't expect them to go to another platform / app they DON'T NEED. How to do this? Email automation. My total tech expenditure to manage my 1300 LP network? $60 every month. Yes, you read that right. This set up keep our operations smooth and our costs minimal. Key takeaway? ➡ Startup investing is not a 'hair on fire' problem ; no one NEEDS to invest. ➡ Investors don't need another app or platform for something they use infrequently. ➡ Focus on building relationships ; Investor trust is what moves the needle, not technology. If you want more help on building a scalable, efficient syndicate, reach out by DM.

Funding is scarce for startups. How do you get through the funding winter? The last 15 years, VC and private funds have seen near uninterrupted growth in capital flows. Think about what this means. There are two generations of founders who have only known a world of free-flowing capital. If you're a Founder who started in the last decade and a half, you need to reset your expectations for funding. Capital is sitting on the sidelines. Investors are more risk-averse. The new reality? Bootstrap for longer, invest more sweat and personal equity. Showing commitment and skin-in-the-game will earn you more credibility in the eyes of investors. Just closed your funding round? Great! Don't relax. Keep your unit economics strong. Growth and Capital Efficiency are the name of the game to scale value creation (not accelerating value destruction). Raising funding isn't the goal. Capital is a means to accelerate scale. I never set out for Angel School to be a venture scale company. We've never taken a penny of external funding. We started with a mission, built a product, took it to market, and monetized it—all bootstrapped. We have a six-figure P&L that's profitable, and we’ve given away exactly 0 equity. (That might change someday but that's where we are today). Finding our market, building great products, creating happy users is what got us here. My Advice: Be capital efficient, build lean, and focus on profitable economics. TLDR; 15 years of a bubble have spoiled many founders, making them reliant on easy capital. But the game has changed. Now it’s about who can survive and thrive in a tougher environment. If you are a founder looking for smart ways to fund and build your startup in the current economy, feel free to reach out by DM.

Angel investing doesn't have to be lonely! We support emerging investors with our 300+ global network (and growing day by day) . Congratulations Abel Ng 黄彥博 for graduating from Venture Fundamentals! Welcome Abel to the Angel School community shaping the future of #angelinvesting and #venturecapital. From sourcing deal flow to executing due diligence, we're nurturing the next generation of Angel Investors to build the venture ecosystem. Find out more --> https://lnkd.in/gBxKCtdU

Angel investing doesn't have to be lonely! We support emerging investors with our 300+ global network (and growing day by day). Congratulations Jose Loureiro for graduating from Venture Fundamentals! Welcome Jose to the Angel School community shaping the future of #angelinvesting and #venturecapital. From sourcing deal flow to executing due diligence, we're nurturing the next generation of Angel Investors to build the venture ecosystem. Find out more --> https://lnkd.in/gBxKCtdU

"How many deals to invest in a year?" This is one of the most common questions I get asked from new Syndicates. It's also a key decision that Syndicates should consciously decide upfront. The carried interest economics for Syndicate Leads is like a 'call option'. The incentive is to crank out as many deals as possible to maximize upside. Ultimately it's down to your philosophy. There is no 'right' answer. Here's how we do it in our syndicate. Quality vs. Quantity: There is always a tradeoff between volume and decision quality. Sure, more deals increases the chances of hitting a winner, but it also means spreading your capital thin. It creates decision fatigue and lack of focus for LPs. We've found that fewer, higher-quality deals focus the angels in our syndicate and fundamentally believe it heightens the success odds of our picks. Our syndicate sticks to 6-8 chosen deals each year. 6-8 ONLY! That’s it. This means: ➕ Each deal receives deep attention, from due diligence to post-deal management. ➕ Our investors are always asking 'what's the next deal?' and are ready to look at each opportunity. ➕ Builds long-term trust with LPs in the syndicate. Investors count on us for our diligence, judgment, and commitment. Overloading their plate puts that trust at risk. For us, it's all about quality over quantity. Fewer, better deals mean more engaged investors and higher returns. If you’re looking to build or join a syndicate that values quality over quantity, send me a DM.

Angel investing doesn't have to be lonely! We support emerging investors with our 300+ global network (and growing day by day). Congratulations Pavlos Panagiotidis for graduating from Venture Fundamentals! Welcome Pavlos to the Angel School community shaping the future of #angelinvesting and #venturecapital. From sourcing deal flow to executing due diligence, we're nurturing the next generation of Angel Investors to build the venture ecosystem. Find out more --> https://lnkd.in/gBxKCtdU