SyndicateRoom is an online equity investment platform that connects early-stage companies to a network of high-net-worth and sophisticated investors. We typically work on round sizes of between £250,000 and £3m, although we can also cater to raises outside of that range; our largest raise was a £5m Series B round.
We look at deals from all sectors, everything from consumer products to the life sciences. The most important thing for us is that a company has a professional or sophisticated lead investor in place, such as a business angel or a venture capital fund, and a good proportion of the funding round already committed (from one or several investors). This lead investment must come to at least 40% of the company’s minimum target for the round.
We view the lead element as a validation of the round, and hence the strength of the lead investor(s) will in large part determine our assessment of the strength of the deal. Once a company has the required lead investment, and has agreed the terms of the funding round, we can help raise the remaining funds through our network of investors on the same (or better) economic terms as the lead investor(s) – most importantly, when it comes to share class and price.
We present deals to investors on our online platform behind a registration wall. After having registered and self-certified as high-net-worth or sophisticated investors, they can log in, view the deals, and invest on a discretionary basis, subject to a £1,000 minimum investment per deal. This means that each investor, not SyndicateRoom, decides whether or not to invest and how much money to commit.
SyndicateRoom also has an EIS fund – Fund Twenty8 – that deploys into deals listed on our platform. Fund Twenty8 is the first and only passive EIS fund for early-stage investing. The fund uses a proprietary algorithm linked to SyndicateRoom investor behaviour to determine how much it deploys into EIS opportunities on our platform, monitoring and deploying investment commitment from the fund in real time.
Fund Twenty8 operates in a straightforward way that does not require complex legal documentation or separate negotiations on the set up of your funding round. As such, Fund Twenty8 is a very simple way to add significant capital to your round.