AngelList Syndicate Update – Week 1

We had a fascinating week trying to get everything figured out on our FG Angels initiative with AngelList. Our syndicate, which we are going to max out at $450,000, is currently right at $300,000 after one week. We are humbled by all the support and interest.

Geir Freysson, founder of Five Hundred Plus, did a super cool visualization of some of the top syndicates and how the participants in the syndicate relate to each other.


AngelList Syndicate Visualization


We’ve chosen our first deal to do. But we aren’t ready to pull the trigger yet – probably early next week. We’ve spent the last few days wrestling with some legal / compliance issues. The AngelList gang has been AWESOME to work with. We aren’t surprised that we are having to figure this stuff out – we knew the new JOBS Act rules, 506 compliance, and the ambiguity around a bunch of stuff would be problematic. Yeah – the problems are obscure ones generated by our government, and there are moments where it seems like the SEC simply doesn’t want any of this to actually work. But that’s part of the fun of it.

I continue to be mildly amused and amazed by the prognostications from the sidelines from a variety of folks (angels, angel groups, VCs, and entrepreneurs). Some of the strong opinions are based on virtually no data, or misinformation, or a complete lack of perspective. And others are based on a lack of understanding of dynamic systems. Either way, when asked, I continue to tell people our mantra – the best way to learn about stuff like this is to participate.

So – if you want to participate with us and learn a bunch in the process, join our syndicate.

  • Would love to see you publish a primer on this once you have a few under your belt. From both the Syndicate as well as Entrepreneur POV.

    • I will keep the posts coming as I figure it out.

      • As I recommended before, an addendum to the awesome Venture Deals book will be in order. 😉

  • Cool visual rendition of investing Brad & got an idea of how to show our Philippine social biz investments:)


  • Impressive visual. With the impressive reception and participation in syndicates I’m wondering if AL is going to take over the seed/early stage financing longer term, specially for some categories such as consumer products. This started with AL couple of years ago but with the new open financing options and syndicates it take a different scale. They are basically becoming a Nasdaq for startup funding with massive information and analytics about the entire landscape. And some VC’s such as A16Z might be moving up the chain on consumer startups so AL could nicely (and perhaps more effectively) fill in the gap?

  • Great initiative with FG Angel Brad. Question: Will the $2.5M be allocated from the main FG Fund or is private capital from you and your partners?

    • Foundry Group funds. We did it this way to avoid all conflicts.

  • Yup…We don’t mind seeing the sausage making.

  • drbillnye

    Can you talk about how your diligence process might be different using a fund like this vs making an investment as FG proper? Do you expect these deals will be higher risk going in or do you feel better about the data provided by the companies going through the AL process?

    • Our process will be lighter weight but we’ll still have a tight process that surfaces anything we are concerned about.

  • Appreciate you sharing the journey Brad.

  • Jamie Flinchbaugh

    I love the premise – you can’t learn from the sidelines. That’s exactly the mentality I jumped in. I’ve already completed one investment through AngelList and joined a couple syndicates. I’m not committing huge dollars yet but enough to make it interesting and ensure that I learn by doing.