New Delhi: Angel List, a US-based crowdfunding platform and start-up community, has launched what it calls ‘Syndicates for India’—a service that allows individual investors to pool in money and invest in larger rounds in Indian as well as US companies.
“Syndicates are private single-deal investment vehicles that let you invest in start-up allocations shared by syndicate leads, enabling more angels to participate by getting access to top deals. Similar to a VC (venture capital) fund, syndicates provide experienced investors the opportunity to earn carried interest on their allocation, and the ability to write bigger checks by pooling capital from dozens of backers in the ecosystem," Angel List said in a blog post on Tuesday.
Through its platform, Angel List has facilitated investments of $700 million combined in over 1,800 start-ups including Uber and Indian start-ups such as ClearTax, DocTalk and Squad. Some of these companies have gone on to raise follow-on totaling to $6.4 billion, according to the company.
The syndicates programme was launched in 2013 and operates in the US, Canada and the UK.
The launch of syndicates for India broadens the range of investors start-ups can raise money from the ecosystem, the blogpost said.
Essentially, this is aimed at allowing independent investors to be part of funding rounds at larger companies, and alternatively be able to get better equity allocation and voting rights during investments in start-ups.
According to Angel List, an angel investor may write a single cheque for Rs10 lakhs to a start-up. With syndicates, that same investor can lead a syndicate and pool more capital from dozens of backers who can help the company—all while having only one name added to the cap table.
Ash Lilani, managing partner at Saama Capital, and Freecharge founder Kunal Shah collaborated with Angel List to launch syndicates here. The platform has readied investors like Sandeep Tandon, Shalini Prakash and K-Start, among others who will serves as syndicates for approved angel investors.