There are Business Angels. There is the crowd. Members of SyndicateRoom are savvy investors that co-invest with Business Angels. They are not active Business Angels, they certainly are not the crowd. Who are they?
So here at SyndicateRoom we have two types of investors. Firstly the lead investors, who invest large amounts of capital and are likely to get some level of active involvement with the company after the funding round are called Business Angels. However most of our members are not active Business Angels. They are people that do not have the capital and/or the time to be active Business Angels but they certainly are not investing as part of a ‘crowd’. Instead, they are savvy investors that understand the value one or more active Business Angels bring as part of the syndicate of investors.
An interesting question appeared in a LinkedIn forum about crowd funding. How do you call investors that are not active Business Angels but aren’t the ‘crowd’ either. Investors that are well informed and savvy investors investing smaller amounts (say £1,000 to £10,000) into real angel investments but that are neither active Business Angels nor the £10 punt crowd? They can only be called ‘Syndicate Investors‘.
So to put it plainly, Syndicate Investors are savvy investors that co-invest with Business Angels rather than investing as part of the crowd.
Why would investors want to invest as part of a large crowd rather than with experienced investors that do this for a living is something that still puzzles us here in the office…