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I've invested in over 100 startups through syndicates on AngelList in the past few years. It's not possible for a syndicate lead to steal the money. AngelList c

I've invested in over 100 startups through syndicates on AngelList in the past few years. It's not possible for a syndicate lead to steal the money. AngelList collects directly from the investor and wires directly to the company. Plus I've been paid out 6 times from exits. But you can definitely make bad investments, just like on Robinhood. Except in angel investing, odds are you're never going to see that money again (like 1 in 20 startups makes it). Also try to remember that you and the syndicate lead are most likely a tiny check to the company, so you aren't getting information rights. You're essentially just along for the ride. Buckle up.

algo_trader 3y ago
> I've invested in over 100 startups through syndicates on AngelList Good on you ;) Are these startups there for the convenience, or are these slightly less connected founders?
thelastparadise 3y ago
> try to remember that you and the syndicate lead are most likely a tiny check to the company, Also remember all the high quality startups have their pick of funding sources. They aren't going to be on platforms like this or secondary markets. And certainly not with good terms for investors.
- GoRudy 3y ago
  I don’t think this is accurate. It’s usually not the company directly raising on AL. Rather it tends to be a syndicate with partners who have a connection with the company that is raising. There are various reasons why a hot company might still have a syndicate including the syndicate lead was an early investor in the company so the founder is giving them an allocation in the subsequent rounds.
rokhayakebe 3y ago
Would you mind sharing high level results?
- bombcar 3y ago
  From the post, invested in 100, paid out on 6, some will still be in flight and some have died. Even if the other 94 are dead, 6% is not horrible.
  - xyst 3y ago
    I am curious what the "pay out" was for those 6 exits. If you invest $1000 in 100 startups. That's a $100,000 investment across the board. Just to break even for all "angel startups", those 6 exits need to return at least $17K (1,700% ROI) per successful exit. This is just gambling in a different form lol.
    - toomuchtodo 3y ago
      It is, but gated gambling (accredited investor requirements) and you get something fun to talk about at parties and online (versus degenerate options trading or horse racing, which is out of vogue).
      - deleted 3y ago
        [deleted]
    - bombcar 3y ago
      There's an argument that most forms of investing are some form of gambling, depending on how you define it. If you take gambling as "staking money on an outcome you don't control," perhaps. It really depends on your financial situation and what you enjoy; for some spending $$$ on startups is much more entertaining than spending similar amounts traveling to see professional sports. Hell, some may spend the money and count it well spent "just to be in the front-row seats at the game" (e.g., learning all the things startups are doing) - even if they never make back any of it. In which case even a partial return is better than nothing.
      - xyst 3y ago
        True. Just walking outside and using the crosswalk is a “gamble”. But the odds are very much in my favor. Never know though. Maybe a drunk asshole barreling over a blind hill in an EV on “BeAsT MoDe” side swipes me

algo_trader 3y ago

> I've invested in over 100 startups through syndicates on AngelList Good on you ;) Are these startups there for the convenience, or are these slightly less connected founders?

thelastparadise 3y ago

> try to remember that you and the syndicate lead are most likely a tiny check to the company, Also remember all the high quality startups have their pick of funding sources. They aren't going to be on platforms like this or secondary markets. And certainly not with good terms for investors.

GoRudy 3y ago
I don’t think this is accurate. It’s usually not the company directly raising on AL. Rather it tends to be a syndicate with partners who have a connection with the company that is raising. There are various reasons why a hot company might still have a syndicate including the syndicate lead was an early investor in the company so the founder is giving them an allocation in the subsequent rounds.

rokhayakebe 3y ago

Would you mind sharing high level results?

bombcar 3y ago
From the post, invested in 100, paid out on 6, some will still be in flight and some have died. Even if the other 94 are dead, 6% is not horrible.
- xyst 3y ago
  I am curious what the "pay out" was for those 6 exits. If you invest $1000 in 100 startups. That's a $100,000 investment across the board. Just to break even for all "angel startups", those 6 exits need to return at least $17K (1,700% ROI) per successful exit. This is just gambling in a different form lol.
  - toomuchtodo 3y ago
    It is, but gated gambling (accredited investor requirements) and you get something fun to talk about at parties and online (versus degenerate options trading or horse racing, which is out of vogue).
    - deleted 3y ago
      [deleted]
  - bombcar 3y ago
    There's an argument that most forms of investing are some form of gambling, depending on how you define it. If you take gambling as "staking money on an outcome you don't control," perhaps. It really depends on your financial situation and what you enjoy; for some spending $$$ on startups is much more entertaining than spending similar amounts traveling to see professional sports. Hell, some may spend the money and count it well spent "just to be in the front-row seats at the game" (e.g., learning all the things startups are doing) - even if they never make back any of it. In which case even a partial return is better than nothing.
    - xyst 3y ago
      True. Just walking outside and using the crosswalk is a “gamble”. But the odds are very much in my favor. Never know though. Maybe a drunk asshole barreling over a blind hill in an EV on “BeAsT MoDe” side swipes me