Angel Group Syndication of Series A Rounds

US angel investors have been a robust source of seed stage capital for years. More recently, we have experienced significant growth in the number of funded seed stage deals, due to the emergence of accelerators, super angels and new seed stage funds. Unfortunately, we are now suffering a Series A startup funding crunch, that is, a lack of seed stage follow-on capital in the range of $1.5 to $7 million, funding which a decade or more ago was the sweet spot for venture capital.

Over half of angel rounds reported recently by groups who are members of the Angel Capital Association were syndication among multiple groups (from the Halo Report). Formal seed stage syndication activities are operating among US angel groups in the Northeast, the Pacific Northwest, the states of Ohio and Texas and elsewhere. These syndication efforts routinely fund round sizes up to $2 million, but few larger rounds. Can we devise a syndication model which would enable US angel groups to syndicate Series A rounds between $1.5 million and $5 million, or even higher?

By Bill Payne http://www.billpayne.com

Full Story: http://gust.com/angel-investing/startup-blogs/2013/05/08/series-a-syndication/