What are Syndicates?

Syndicates are groups of like-minded investors and organizations that come together to build ventures in their community. They typically are composed of investors with common interests or focus on a specific industry. Ranging from IoT, Main Street Businesses, Med Tech, or Real Estate, chances are there’s a syndicate for your locality.

What are Syndicates?

Syndicates are groups of like-minded investors and organizations that come together to build ventures in their community. They typically are composed of investors with common interests or focus on a specific industry. Ranging from IoT, Main Street Businesses, Med Tech, or Real Estate, chances are there’s a syndicate for your locality.

What are Syndicates?

Syndicates are groups of like-minded investors and organizations that come together to build ventures in their community. They typically are composed of investors with common interests or focus on a specific industry. Ranging from IoT, Main Street Businesses, Med Tech, or Real Estate, chances are there’s a syndicate for your locality.

$4 Billion +

Companies have raised over $4B via online Syndication nationwide…and are growing over 50% YoY

$4 Billion +

Companies have raised over $4B via online Syndication nationwide…and are growing over 50% YoY

$4 Billion +

Companies have raised over $4B via online Syndication nationwide…and are growing over 50% YoY

No matter your interests, there’s a syndicate for you!

Syndicates allow investors to review deal terms, vet founders and ventures, and directly invest in high-growth startups.

Many syndicates overlap industries, and you can join as many as you want without requiring an investment.

Join a Syndicate

via NCGrind.com

Do I need to have experience to join a syndicate?
No, not at all.  A key element of a Syndicate is to provide a space for those who are interested in investing in their backyard but have never done it.  See ‘How do Syndicates help investors?’
What type of deals show up in a Syndicate?
There are Syndicates for about every type of deal from Real Estate to High Growth Ventures that you see have eventually gone public on the stock market.  Chances are there is a community of investors and founders who fit a business area you are interested in learning more about.
What is a CrowdfundNC Syndicate?
A CrowdfundNC syndicate is an easier way for angel investors to find and invest in well-qualified startups, and for startups to find angel investors, advisors, and mentors. Many of these opportunities are local to NC. Using a modern “virtual angel group” model, investors decide on a deal by deal basis when to invest in the startups
Can only accredited investors participate?
Both accredited and non-accredited investor deals show up in Syndicates. Unfortunately, ‘fund’ investing and knowledge of these ‘funds’ is limited to accredited investors.  However, many founders work together with Localstake to create opportunities for all investors and maximize their chances of getting funded.
How do I join a syndicate?
Visit our Access Points page to see a list of all North Carolina based syndicates.
Can I form my own syndicate?
Yes.  We provide all of the tools, resources and education you need to become a Syndicate Manager. Contact us for more information
What is the minimum I can invest?
Minimums typically range from $1K to $5K per deal and are largely dependent on the allocation the Syndicate has for a particular deal (e.g. $100K vs. $1M)
What is Carried Interest (aka Carry)?
Carry is a share of the profits, typically 20% for most deals. It is paid to the Syndicate Management team for negotiating deals terms, performing due diligence, writing deal memos for investors to learn more about deal opportunities available, hosting investor education, and advising the SPV (aka the ‘fund’).
 
In Commercial Real Estate, “Carry” is usually referred to as Sponsor “Promote”. Structured by tiers of payout to investors, it can range from 20% – 60% by tier. In all cases, investors get their original investment back first and usually receive a distribution of cash, referred to as “Hurdle” (i.e. 6-8% of their original investment per year) before “Promote” is triggered. The combination of the Hurdle and Promote are big components of what balance investor and Sponsor interests with an aim to maximize returns for stakeholders.
How many deals should I expect to see each month?
It depends on how many Syndicates you are a part of and how often they post deals.  Many join multiple Syndicates based on their areas of interest so they can have access to 1 deal per week.
What is the set-up (Admin) fee?
Most Syndicates don’t charge a fee to join.  The investors who participate in a deal collectively split a one-time Set-Up (aka Admin Fee) usually around ~$15-20K which covers the creation and management of the SPV, Blue Sky fees, due diligence fees, and funds transfer fees
Is there a portal I can log into to see previous deals?
Yes, CrowdfundNC Syndicates are hosted on Localstake.  All closed deals show up within those Syndicate groups.
Who are syndicate leads?
Syndicate Leads are seasoned investors that have experience in successful venture funding. They share knowledge with the syndicate, source deals, conduct due diligence, and participate in investor education webinars.
What is Localstake?
CrowdfundNC partners with Localstake to provide an online platform for investors to find deals and join syndicates. Localstake reduces friction by keeping everything in one place for investors and founders including transferring funds.

Localstake is a registered Broker Dealer. As a Broker Dealer, they allow businesses to sell any type of exemption available which means founders have the flexibility to choose exemptions (including accredited and non-accredited) that best meet their business’s strategy.

How does this help investors?
Syndicates allow investors of all backgrounds and experience levels to collaborate and share knowledge about deals and opportunities. Syndicates:

  • Provide newer investors access to invest alongside experienced investors
  • Allow investors to have a better deal flow
  • Have lower minimum investments which allows investors to diversity their portfolio
How does this help founders?
Founders can leverage syndicates to raise more money more efficiently.  Startups:

  • Get the supervision of a Lead who is bringing along a good size potential investment from the syndicate.
  • Get access to the syndicate investors’ networks and expertise.
  • Can easily manage the financials and cap table through a Special Purpose Vehicle (SPV) fund that invests in their startup, rather than adding many small investors to their cap table.
Join a Syndicate
Still have a question? Contact Us

This tool is for illustrative purposes only, to outline the mechanics of how syndicate investing works. The scenario is not representative of any particular investment. There is no guarantee that an investment will be profitable and you may lose your entire investment. Please review the applicable Offering Materials for a full discussion of the risks, costs, expenses, liquidity, safety, guarantees, and tax features of the syndicate before investing.