How hard to syndicate a $100k allocation into a series A/B investment (eg market research, would you be interested?)
I’m trying to figure out how hard it would be to syndicate a $100k allocation to a Series A/B I’ve been given. I’ve gotten both consumer technology and enterprise technology allocations, some with mid tier backers, some with top tier backers (eg Sequoias of the world).
Most of my friends are not accredited investors (>$200k income and/or holds the Series licenses) so to fill the allocation I would need to find other people.
If someone offered you a $5-10k allocation in some really solid/good venture deals, and said they’d take care of putting together the SPV and lawyering, would you do it? Would you be ok doing it without full diligence access to founders (eg you get the docs but it’s not like you get a 3 hour mgmt meeting, it’s not a pre-seed investment).
I would like to hear all of your thoughts about this, even quick impressions. If you are thinking to yourself “should I post or not”, just post your thoughts here and help me understand your thinking, I am looking for the type of thread with 60 comments (eg lots of data to gauge interest).
I was not looking for a half dozen bananas, but thanks- any comments?
Incoming at MF and at HYP: I'd be okay with it if I had 1. significant depth/experience in the industry of the company, 2. friend has an excellent track record, and 3. there were individuals more sophisticated than myself in the transaction and there is MFN or some equivalent. The issue is it's hard to have 1 AND 2.
I’d be okay with it as long as it’s diversified and the sponsors are top-tier. Not interested in mid tier since I’ll never really be able to DD the company, so you have to rely on the lead investor. I’d also never get comfortable if it’s just 1 or 2 companies, I don’t have the risk tolerance for it.
My firm does typical cheques of around 5-10mm per deal but we have done a few deals in the sub 500k range if they are screamers - feel free to PM me.
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