# Angel syndicate

> An angel syndicate is a group of individual investors who back startups together, usually led by one experienced angel who finds deals, negotiates terms and runs diligence, while members decide deal by deal whether to join. Many syndicates pool members' money in a single vehicle so the startup has one line on its cap table. The lead is often paid a share of the profits, called carry.

Source: https://delsivo.com/glossary/angel-syndicate · Updated 2026-11-06

## Key takeaways

- One lead does the work; members opt in per deal.
- A single investing vehicle keeps the startup's cap table simple.
- Who may join is set by securities rules, which differ by country.

## How an angel syndicate works

1. The lead finds a deal and agrees an allocation with the founders.
2. The lead shares a memo and terms with members.
3. Members who want in commit an amount by a deadline.
4. Money is pooled in one vehicle, which invests in the startup.
5. The lead keeps members updated and handles later rounds.

## Who can join a syndicate

Rules depend on where the syndicate and its members are. In the United States, most private offerings are limited to accredited investors. The SEC's guidance, last updated April 2026, lists individual tests such as a net worth over $1 million excluding the primary residence, or income over $200,000 ($300,000 with a spouse or partner) in each of the prior two years. Check the rules in your own country.

## How syndicates screen deals

A syndicate lead is often a team of one, reviewing decks around another job, and members expect a written case for each deal. A short thesis, a consistent [screening scorecard](https://delsivo.com/templates/deal-screening-scorecard) and a memo members can read help. See [Delsivo for angel syndicates](https://delsivo.com/for/angel-syndicates).

## Common confusions

- Syndicate versus angel network: networks share deals, and members usually invest individually.
- Syndicate versus fund: a fund commits capital up front; syndicate members choose each deal.
- Carry is a share of profits, not a fee on money invested.

## Frequently asked questions

### How do angel syndicate leads get paid?

Usually through carry, a share of the profits from each deal. Some also charge members a fee to cover the vehicle's costs.

### Do founders deal with every syndicate member?

Usually not. The lead is the contact, and a single vehicle appears on the cap table.

### Can anyone join an angel syndicate?

No. Securities rules limit who can invest in most private deals; in the US that usually means accredited investors.

## Sources

- [U.S. SEC: Accredited investors](https://www.sec.gov/resources-small-businesses/capital-raising-building-blocks/accredited-investors) (checked 2026-11-06)

## Related pages

- [Delsivo for angel syndicates](https://delsivo.com/for/angel-syndicates)
- [Lead investor](https://delsivo.com/glossary/lead-investor)
- [Deal screening scorecard](https://delsivo.com/templates/deal-screening-scorecard)
- [Cap table](https://delsivo.com/glossary/cap-table)