Syndication among Angel Groups to Close Larger Rounds

In recent posts, I have described the growing US capital gap between typical angel and VCs round size. US angels generally invest in rounds of $200K and $1 million, while VCs have moved from rounds of $2-3 million in the ‘90s to rounds of $7-8 million today. This gap is quite troubling for entrepreneurs seeking investment between $1 and $5 million and for us angels who provide seed capital for their startups.

Compared to the 25,000 seed/startup investments by US angels or even the 1000 first stage investments by US VCs, the number of investors (and investments) in the US capital gap is small. One partial solution to the funding gap problem has come through syndication among several neighboring angel groups, pooling resources to fund rounds of $1 to $3 million dollars.

by: Bill Payne

Full Story: http://www.theicehouse.co.nz/Internal/InternalBlogs/AngelsBlog/tabid/236/EntryId/54/Syndication-among-Angel-Groups-to-Close-Larger-Rounds.aspx