Investor InsightsStartup Insights

The Power of Syndicates

Raising an angel round for an entrepreneur is critical for survival and growth. The process is hard and time consuming. The first step is get one investor interested in backing your venture. Once you have that going, it still takes considerable time to raise the rest of the round. 

Raising an angel round for an entrepreneur is critical for survival and growth. The process is hard and time consuming. The first step is get one investor interested in backing your venture. Once you have that going, it still takes considerable time to raise the rest of the round. Let us say you are raising a round of 1.5 CR and you have an initial commit of 20L for one investor. Now, taking this to closing the entire round can easily take 3 to 4 months and meeting at least 20-30 investors. This is where Let’sVenture Syndicates can help you.  We help with creating visibility for your startup with our investor base, and creating a connect with multiple interested investors at one time. Our first syndicate on the platform opened with 50% of the commitment complete and we helped close the rest in 10 days. Moving from 80 lakhs commitment to 1.4cr in 10 days.

How Syndicates work –

Pre-Requisite If you have at least one firm investor commitment towards your current round, you are eligible for opening a syndicate on the platform. Typically the lead investor or lead group has already completed the initial validation of the business plan and set the valuation for the company for the fund raising round. Process The LetsVenture reviews the profile, and spend sometime with the founders to understand the venture better. We also connect to the lead investor to get to know his / her motivation to invest. The LetsVenture team puts together a platform Analysis (strengths and risks of the business) and puts “Syndicating” on your startup stamp. You have a choice of opting for two types of syndicate : 1. Open Syndicate: These syndicates are open to all investors on the platform. They can express interest on the participation via the platform. 2. Private Syndicate: This is more suitable for ventures looking for specific strategic investors. In this case, we send out the information to specific investors, based on investor profile match and in consultation with the entrepreneur and lead investors. Business Model There is a business model in place for Syndicates. Please write to us and we can send you the details. Commitment to Closure [C2C] Post an agreement from investors on the syndicate amount, we offer the Commitment-to-closure package to startups. To ease the process of taking a syndicate to closure, we have put together a productized service called C2C. It takes care of a) Term Sheet b) Share Holders & Subscription Agreements c) Closure Process d) Legal & Financial due diligence. This is a paid service available from us at a very competitive price. The pricing depends upon few parameters like size of the round, revenue & age of the venture etc. Please check with us for the pricing. We highly recommend taking this package from us if you are syndicating on the platform. Our investors are banking on us to do this and therefore we want to make sure that we deliver them good paperwork and clean deals. For more information, please write to manish@letsventure.com or shanti@letsventure.com

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