Business Angel Syndicates

Business angel syndicates

Halo Business Angel Network (HBAN) is focused on creating Angel Investor syndicates.  Syndication is an internationally recognised best practice model for angel investment which;

a) stimulates angel investment,

b) empowers angel investors to build and maintain a portfolio of investments, and

c) streamlines the funding process for the entrepreneur.

Business angel syndicates are groups of like-minded investors.  They are high net worth individuals who provide smaller amounts of finance (typically in the range €50,000/£40,000 to €250,000/£200,000) at an earlier stage than many venture capital funds are able to invest. It is worth noting that in Ireland and Northern Ireland business angel syndicates are increasingly operating and co-investing in partnership with both seed venture capital funds and government agencies.

Syndicates are two or more private investors working together to share the risks and rewards of investing in private companies. Syndicates differ from individual business angel investors as syndicates are typically comprised of a ‘fixed’ group of people who regularly invest together over a period of time.

The principal benefits of participating in an angel syndicate are:

  1. Diversified portfolio: portfolio investing (i.e. investing in more than one company) is a lower risk approach to investment compared to the higher risk ‘all eggs in one basket’ approach of investing in just one or two companies;
     
  2. Pooling of economic resources: pooling of funds provides the opportunity to invest in several companies and/or in larger deals;
     
  3. Pooling of skills, contacts and experience:  syndicate members will benefit from each other’s skills, networks of contacts and experience.  This all enhances the possible success and returns of investing; and
     
  4. Due diligence: ability to undertake a greater level of due diligence.  

If you are interested in joining HBAN as a syndicate member, please register with HBAN here.