What is an angel syndicate?

Who is involved in a syndicate?

• Lead investor (lead): The lead defines the syndicate's investment thesis and focus, selects startups and shares deals with their network. The lead does not have to invest in every deal. We recommend investing alongside the co-investors. The lead's own investment is disclosed so co-investors can assess their interests.
• Co-investors: They invest alongside the lead, deal by deal and with their own ticket size.
• Startup: It receives the investments and, besides capital, often the lead's network and experience.

How does an angel syndicate work on beel?

1. Set up the syndicate: The lead defines the investment thesis and focus and shares the syndicate with their network via an invitation link. The lead decides who joins.
2. Join: When joining, co-investors digitally sign beel's finder's agreement (Tippgebervereinbarung). It grants the lead the carry.
3. Share a deal: The lead presents a startup to the syndicate. Interested co-investors indicate a non-binding ticket size. There is no commitment and no capital call.
4. Negotiate terms: The lead negotiates the terms and tells the startup the total amount of interest.
5. Invest: Each co-investor invests directly in the startup. If the deal closes through beel, they subscribe to profit participation rights and hold them themselves, visible in their own dashboard. A deal can also be closed outside beel.
6. Carry: If an investment makes a profit, the lead receives the agreed carry on the co-investors' share.

What do the lead and co-investors get out of a syndicate?

Many experienced business angels share investment opportunities with friends and acquaintances without receiving anything in return. A syndicate gives this a fixed structure, and both sides benefit:

• For the lead: The lead receives carry on the co-investors' share for their deals if an investment makes a profit. An unpaid tip becomes a paid activity, without the lead having to invest large amounts themselves.
• For co-investors: They get access to deals selected by an experienced lead that they often would not have found through their own network. They decide on every deal themselves.
• For venture capitalists: They open deals their fund has already invested in to their network, for example when the round still has room or the ticket falls outside the fund's mandate.

How is a syndicate on beel different from a fund or an SPV?

• No pooling vehicle: Neither an SPV nor a fund is set up (comparison of investment structures).
• No fund lock-in: Co-investors decide anew on every deal.
• No asset management: Co-investors hold their investments themselves. The lead holds neither capital nor investments on their behalf.
• No licence, but a BaFin notification: For a syndicate on beel, the lead does not need a licence for fund management or investment brokerage. Because the lead's deals count as investment recommendations, they notify BaFin of their activity once in advance under the German Securities Trading Act (Wertpapierhandelsgesetz, WpHG). beel provides the draft for this.

Public and private syndicates

beel shows a public syndicate on its syndicate page so potential co-investors can find it. A private syndicate is shared by the lead only via the invitation link. In both cases, the lead decides who joins.

What does an angel syndicate cost?

The lead pays €390 per month or €3,990 per year (net). Co-investors pay no fees to beel, only the agreed carry to the lead if there is a profit. Startups pay according to beel's pricing if they close the deal through beel (What does beel cost?).

Can I sell my profit participation rights later?

Profit participation rights can be traded on beel's secondary market, provided the startup allows trading. This is possible, not guaranteed liquidity (more on tradability).