Report on 11 Tech Trends to Watch Closely in 2023

Every new year brings a new wave of progress, from game-changing breakthroughs to incremental advancements in a wide range of fields.

CB Insights’ report on 11 Tech Trends to Watch Closely in 2023 highlights some key areas of focus for the tech industry in the coming year. 

The report derives its trends from earnings transcripts, media mentions, investment activity, patents, and other sources. 

Immortality-as-a-service

The concept of immortality-as-a-service is an intriguing one that is attracting the interest of venture capitalists and tech companies. With advances in AI and genetics, there is a growing ability to analyze and manipulate data to help people live longer and healthier lives. The potential economic and societal impacts of such a world are significant, with a larger workforce, more consumers, and changes in how people plan their lives.

While immortality may be a stretch, the pursuit of longer and healthier lives is a goal that many tech companies are actively pursuing. The potential rewards for those that succeed are significant, with age-defying consumers providing a lucrative source of recurring revenue. As the population ages and people live longer, there is a growing market for services that help people live longer and healthier lives. The race to provide those services is on, and it will be interesting to see which companies emerge as the leaders in this space.

The secret invasion of super apps

The competition among super app-level platforms is heating up, with tech companies converging on each other’s territory and giving rise to effective super app-level platforms. The battle for dominance is centered around search, as players seek to integrate features ranging from shopping to news feeds to capture more advertising dollars and expand further into the consumer market.

Microsoft is one company that is considering building a super app with its Bing search engine as the backbone. If successful, this move could help Microsoft capture a larger advertising market share and increase its consumer market presence. Other tech companies are also making moves in this space, with some developing their own super apps and others acquiring existing ones.

As more and more companies enter the fray, the competition for consumer attention and advertising dollars will only intensify. The winners in this space will be those that can effectively integrate multiple services into a seamless user experience and provide unique value to their users.

Fintech’s rapid regeneration

Many fintech startups are already pivoting to new areas and rethinking their business models to weather the economic uncertainty ahead. One area of focus is expanding into new verticals such as insurance, wealth management, and real estate. Another strategy is to

cater to enterprises and partner with traditional financial institutions to offer their services to a wider customer base.

As the market tightens, only the most innovative and adaptable fintech startups are likely to survive. But for those that do, there could be a big payoff as traditional financial institutions continue to struggle with outdated technology and regulatory hurdles.

Bots in the house

In addition to simple tasks, Tech leaders and startups are also exploring how robots can provide companionship and emotional support to people living alone or with limited social interaction. These social robots could be particularly beneficial for older adults, children, and people with disabilities or mental health conditions.

However, there are concerns about privacy and security, as well as the potential for these robots to replace human social interaction rather than enhance it. As technology continues to develop, it will be important for companies to consider these ethical and social implications.

The opportunity in the space is already substantial: The consumer robots market is estimated to be worth $22B, per CB Insights’ Industry Analyst Consensus.

Virtual power plants

​​Virtual power plants (VPPs) are a decentralized energy management system that can aggregate power from a network of distributed energy resources, such as residential solar panels, large-capacity batteries, wind farms, and more. VPPs use a cloud-based system and AI tools to manage the distribution of power based on demand and availability, making grids more resilient. VPPs can reduce reliance on coal and gas, stabilize the grid, and lower energy costs for households. 

Interest in startups that support VPP management and energy storage has been increasing steadily among investors, industry leaders, and governments, driving advances and competition in the space. As a result, VPPs are becoming much more common.

Healthcare’s invisibility trick

Ambient health monitoring takes this a step further, by incorporating a range of connected devices into patients’ daily lives. These devices can continuously collect data such as heart rate, blood pressure, and respiratory rate without requiring active engagement from the patient. This passive approach to healthcare monitoring has the potential to identify health issues earlier and prevent hospitalizations, leading to better health outcomes and cost savings.

The market for ambient health monitoring is expected to grow rapidly in the coming years. According to a report by Grand View Research, the global market for remote patient monitoring and ambient assisted living is projected to reach $238.5 billion by 2028, with ambient assisted living accounting for the majority of that growth. With the rise of wearable technology and the increasing availability of internet of things (IoT) devices, ambient health monitoring is poised to become an increasingly important part of the healthcare landscape.

Smell goes digital

AI is helping to unravel the complexity of smells by analyzing patterns in large datasets of scent molecules and correlating them with human responses. In some cases, AI algorithms have even been used to predict how people will react to a given scent based on their genetic makeup. 

Companies are also developing hardware devices that can analyze the chemical makeup of scents and use that information to generate digital scent profiles. These profiles can then be used to reproduce the scent on demand, or to create entirely new scents that match a particular profile. The potential applications of smell tech are vast, and it will be interesting to see how this field develops in the coming years.

Femtech turns to menopause

As women’s healthcare continues to expand, startups are turning their attention to underserved issues like menopause. Despite its significance, women receive little formal education about menopause, making it difficult to identify symptoms and seek support. 

However, a growing number of startups are specifically catering to women going through menopause. Medical treatment options for significant menopausal symptoms remain limited.

The bio-based materials boom

Bio-based materials are becoming more popular as companies seek sustainable alternatives to traditional materials. These materials are made from natural sources like mushrooms and seaweed and can offer durability and biodegradability. They are particularly appealing to companies in the CPG and fashion industries who are looking to meet ambitious sustainability goals. 

While many companies have set targets for the use of post-consumer recycled (PCR) plastic, there simply isn’t enough recycled plastic available to meet demand. As a result, more companies are turning to bio-based materials to reduce their reliance on plastic.

India’s tech ascent

India’s tech sector is attracting significant attention from venture capitalists, with both domestic and international firms investing heavily in the country. 

The country’s growing tech sector is seen as a key driving force behind these investments, with a number of unicorn companies emerging in recent years. Additionally, India’s digital economy is rapidly expanding, with sectors such as financial services and healthcare leading the way. 

Regenerative agtech takes root

As brands and retailers turn to regenerative agriculture, startups offering enabling technology are gaining momentum. These technologies can help farmers implement regenerative practices more effectively and efficiently. 

As more brands and retailers commit to regenerative agriculture, the demand for agtech solutions is likely to grow. This presents an opportunity for startups to play a key role in helping farmers transition to more sustainable and regenerative practices.

The technology trends of 2023 are set to be exciting and innovative, with a focus on addressing key societal and environmental challenges. From the emergence of immortality-as-a-service to the growth of regenerative agtech, the potential for technology to make a positive impact on the world is more evident than ever. It is clear that these trends are set to shape the future of various industries, and businesses must keep up with the pace of change to remain competitive. It will be fascinating to see how these trends unfold and develop over the coming years, and what other new technologies will emerge.

The Roles of Lead Angel in a Syndicate

Lead Angel in a Syndicate

When a group of investors comes together to pool their resources and invest in a startup, they form what is known as a syndicate. At the heart of every successful syndicate is a lead angel investor, who plays a crucial role in identifying, evaluating, and managing potential investments. In this article, we’ll explore the role of the lead investor in a syndicate and why it’s important for other investors to understand their responsibilities.

What is Lead Angel?

A lead angel investor is an experienced and knowledgeable individual who takes on the responsibility of making investment decisions on behalf of the syndicate. While other investors may contribute their own expertise and resources, it is the lead investor who is ultimately responsible for ensuring that the syndicate makes smart and profitable investments.

How about their responsibilities

Being a lead angel investor is a significant responsibility, as they are often seen as the “captain” of the syndicate, their roles guiding other investors and making key investment decisions. Their responsibilities are numerous and varied, but can generally be broken down into a few key areas:

  • Identifying and Evaluating Potential Investments: One of the most important responsibilities of the lead angel is to find potential investments for their syndicate. This involves conducting research, meeting with founders and management teams, and assessing the potential risks and rewards of a particular investment. The lead investor must have a deep understanding of the industry, market trends, and the specific needs and challenges facing the startup in question.
  • Managing the Syndicate’s Portfolio Companies: Once an investment has been made, the leader of a syndicate must play an active role in managing these portfolios. Their roles now could include working closely with the startup’s management team, providing guidance and strategic advice, and helping to identify and address any issues or challenges that may arise. The lead angel investor may also serve on the startup’s board of directors and help to shape its overall direction and strategy.
  • Handling Investor Relations and Communication: Not just only working with startups, as a leader, the lead angel also functions for handling investor relations and communication within the syndicate. Through the deals, they have to keep other investors informed about the progress of portfolio companies, address any concerns or questions that may arise, and facilitate communication between investors and startup management teams. The lead investor should be an effective communicator and be able to build trust and confidence among the other members of the syndicate.

Benefits of Having a Lead Angel Investor

Investing in a startup can be a risky and complex endeavor, which is why having a lead angel investor can be incredibly beneficial. Here are just a few of the ways that a lead investor can add value to a syndicate:

  • Expertise and Experience: A successful lead angel investor has most likely been involved in several startup investments and has amassed a wealth of knowledge and experience over time. This knowledge can be extremely beneficial to other syndicate members who are new to the world of startup investing. A lead investor can provide other investors with advice, insights, and mentorship, allowing them to make more informed and successful investment decisions.
  • Risk Management and Maximizing Returns: Another key benefit of having a lead investor in a syndicate is their ability to manage risk and maximize returns. A lead angel has to be a person, who has a deep understanding of the factors that can make or break a startup and can help to mitigate risk by identifying potential challenges and offering solutions. At the same time, they can help to identify opportunities for growth and revenue generation, helping the syndicate to maximize its returns.
  • Networking Opportunities: They can provide valuable networking opportunities to other investors in the syndicate. An excellent leader is likely well-connected within the startup ecosystem and can introduce other investors to potential investment opportunities, industry experts, and other valuable resources.

What characteristics of Lead Angel need to carry your fund

While the benefits of having a lead angel in a syndicate are clear, not all of them are created equal. Here are a few of the key characteristics that distinguish successful lead investors from the rest:

  • Balancing Risk and Reward: A successful lead angel understands that startup investing is a high-risk, high-reward endeavor. They are able to balance the potential for significant returns with the potential for sharp losses and are able to make investment decisions based on a clear-eyed assessment of both the risks and the rewards.
  • Relationship Building: Another key characteristic of successful lead investors is their ability to build and maintain relationships with portfolio companies. A lead investor who is able to forge strong relationships with startup founders and management teams is better positioned to provide guidance and support and to help the startup navigate challenges and achieve its goals.
  • Communication Skills: As a leader, these angels must be able to articulate their investment philosophy and approach to other investors in the syndicate and communicate effectively with portfolio companies and other stakeholders. Good communication skills are essential for building trust and confidence, and for ensuring that everyone involved in the syndicate is on the same page.

What qualities to look for as a leader of a syndicate

To make sure that not through your money out of the door, choosing the right lead angel investor for a syndicate is critical to get a successful investment. Here are a few of the key qualities to look for:

  • Expertise and Experience: As we’ve already discussed, expertise and experience are big deals to show whether you should trust in these people and take them your money or not. This means you need to look for someone who has a track record of successful startup investments and has built up a network of contacts and resources within the startup ecosystem.
  • Leadership Skills: A successful lead angel must be able to lead other investors in the syndicate, guiding them toward the best investment opportunities and making key decisions. So, it’s necessary to get that your lead angel has leadership skills, which are able to communicate effectively and even inspire confidence in other investors.
  • Integrity and Transparency: It’s important to look for a lead investor who operates the way they work with your fund. This means being honest and straightforward about potential risks and challenges, communicating clearly with other investors in the syndicate, and putting the interests of the syndicate first.

Final Thought

As an investor, it’s important to understand the role of a leader of a syndicate when considering investing in a startup or early-stage company. They can provide valuable insight into the company’s operations and financials, as well as access to a network of other investors who may be interested in investing in the same opportunity. By working with the leader, investors can pool their resources and expertise to make more informed investment decisions, reducing the risk of investing in a high-risk startup. Additionally, the lead angel syndicate can provide ongoing support and guidance to the company, helping to ensure its long-term success. As an investor, lead angels can be effective experts to maximize your investment potential and minimize risk in the early stages of a startup’s growth.

How Startups Pitch to Angel Syndicates

Pitching to angel syndicates can be a nerve-wracking experience for many startups. However, it is also an essential step in securing the funding needed to grow and scale your business. In this article, we’ll walk you through the process of how startups pitch to angel syndicates.

The Pitching Process

The process of pitching to an angel syndicate involves several steps:

Identify Angel syndicate

The first step is to identify potential angel syndicates that are a good fit for your startup. This can be done by researching online, attending networking events, and seeking referrals from other entrepreneurs. Online platforms such as Gust, AngelList, and SeedInvest,… can also be used to connect with angel syndicates.

Submit a pitch deck

Once you have identified an angel syndicate you want to pitch to, the next step is to submit a pitch deck. This is a presentation that outlines your business idea, market opportunity, financial projections, and team. Tailoring your pitch deck to the specific interests of the angel syndicate is crucial. Pitching to an individual investor allows for a more informal and flexible process, with more control over timing, format, and content. This approach may lead to establishing a personal relationship with the investor and receiving personalized feedback. In contrast, when pitching to an angel syndicate, the process is typically more structured and formalized. Startups must adhere to specific guidelines for submitting their pitch and may need to follow a specific timeline for review. The pitch may be presented to a group of investors, requiring a tailored approach to a larger audience and addressing a broader range of concerns and questions.

Do the screening process

Switch to the next step, the angel syndicate will conduct a screening process to determine if your startup is a good fit for their investment portfolio. This may involve initial phone or video interviews, due diligence on your business, and discussions with your team.

Get the invitation

If your startup passes the screening process, you will receive an invitation to pitch to the angel syndicate. The pitch may take place in person or virtually and should be tailored to the interests of the specific angel syndicate. Unlike pitching to individual investors, you may pitch in front of a group of investors in a syndicate.

Do due diligence

Following the pitch, the angel syndicate will likely have questions about your business and conduct further due diligence. It is essential to be prepared to answer questions and provide additional information as needed. Due diligence may be faster with an angel syndicate as they have a network of experienced investors who can evaluate potential investments better than just individual investors. Angel syndicates can also pool their resources and share the cost of conducting due diligence, which can be an advantage for startups.

Wait for the investment decision 

Finally, the angel syndicate will make an investment decision. If they decide to invest, they will negotiate terms with your startup and provide funding to help you grow and scale your business. Throughout the pitching phase, it’s important to build a relationship with the investors. Maintaining good communication and following up with investors can help startups gain valuable feedback and insights, which can be beneficial for future rounds of fundraising or even for the growth of the business.

Benefits of Pitching to Angel Syndicates

There are several benefits of pitching to angel syndicates. First, angel syndicates are groups of angel investors who pool their money together to invest in startups. Pitching to angel syndicates provides access to a group of investors who can provide a significant amount of funding. Second, angel syndicates typically have experience in investing in startups in many industries, so they can provide valuable and manifold advice and mentorship. Finally, pitching to an angel syndicate can help startups gain exposure and credibility in the startup ecosystem, which can be crucial in attracting future investment and partnerships. 

As the above words, angel syndicates typically consist of a group of experienced and successful angel investors who have a proven track record of investing in successful startups. By successfully pitching to an angel syndicate, a startup can gain access to this network of investors, who can provide not only funding but also mentorship, guidance, and valuable connections within the industry. 

Pro-Tips to Pitch Successfully

Pitching to angel syndicates can be a nerve-wracking experience for many startups. However, preparing a successful pitch can be the difference between securing the funding needed to grow your business or walking away empty-handed.

To help you prepare, we’ve compiled a list of pro tips to help you pitch successfully to angel syndicates.

  1. Know your audience: Research the angel syndicate you are pitching to and tailor your pitch to their interests and investment criteria. This will show that you have done your homework and increase the likelihood of securing funding. Consider their investment history, their portfolio companies, and what types of startups they are interested in investing in.
  2. Keep it concise: Your pitch should be no longer than 10-15 minutes, including time for Q&A. Focus on the most important aspects of your business and avoid getting bogged down in unnecessary details. Make sure your pitch is clear, concise, and easily understandable.
  3. Be clear and compelling: Your pitch should clearly explain your business idea, market opportunity, and team. Use compelling visuals and stories to bring your pitch to life and engage your audience. Make sure you can explain your idea in a way that is easy to understand and that captures the interest of your audience.
  4. Show traction: Investors want to see that your business has traction and is making progress. Be prepared to share metrics and milestones that demonstrate your startup’s growth and potential. This could include user acquisition, revenue, partnerships, and other key metrics that will showcase your traction.
  5. Practice, practice, practice: Practice your pitch until you can deliver it confidently and smoothly. This will help you stay calm and focused during the actual pitch and increase your chances of success. Practice in front of friends, mentors, and other entrepreneurs who can give you feedback on your delivery and content.

Final Thoughts

Pitching to angel syndicates is a challenging yet rewarding process for startups. To increase the likelihood of securing funding, startups should follow the steps outlined in this post. It’s important to tailor the pitch to the angel syndicate’s interests, be prepared to answer questions, and provide more information as required. Good luck with your pitch!

Angel Investor vs Angel Syndicate: What’s the difference?

Finding and matching with angel investors can take a lot of time and effort. Due to this, angel investors are increasingly banding together to form syndicates. As a founder, it could be better if choose a syndicate over an angel investor, or converse. In spite of relatively the differences between these two terms, they are used often interchangeably. Let’s examine the differences between both.

Angel syndicate vs Angel investor

What is Angel Investor?

An angel investor or a seed funder is a high-net-worth-individual, who invests their own money in startups in the seed or early stage to alternate for convertible debt or possession fairness. This is the cardinal phase of constructing a startup’s business enterprise and finding out its fatality.

In most instances, angel investors put money into startups with a prominent level of risk. They will follow the businesses’ plans for at least 5-7 years to assist agencies to regain the capital. They often claim a sizeable proportion of the organization because the likelihood of failure is extraordinarily excessive.

The investment of angel investors varies at different tiers. It is able to be low around $5k, or maybe higher, about $100k. Commonly, it takes 1-6 months for these angels to finish their offers. This timeframe includes due diligence in your organization and time period sheet negotiation.

What Angel Investors benefit Startups

Angel investors can offer greater flexibility in investment terms and can tailor their investment to the specific needs of the startup. Moreover, working with individual angel investors can result in a more personal and collaborative relationship with founders. Because of the perhaps smaller fund, angel investors may offer a simpler and more streamlined investment process than angel syndicates.

What drawbacks Startups should consider

As above-mentioned, an individual angel investor could sink money into a startup a bit more ‘humble’ than a syndicate. Furthermore, even if some angel investors fund with their real-angel purposes, others could require varying degrees of control and benefits over your business.

What is Angel Syndicate?

An angel syndicate is a group of investors who agree to invest in the same project together. These investors are able to be from any source in dissimilar industries. A lead angel of the syndicate will present deals to its contributors. Individuals then decide whether or not to invest their personal funds in the organizations on offer. Angel syndicates handle the deal flow, due diligence, and transactions for their investors. Angel syndicates typically take 1-6 months to complete their transactions

A syndicate not only permits investors to diversify their investments and percentage any dangers with other fellow angel traders but also makes the funds in higher amounts compared to individual angel investors for startups, which could be up to 1 million dollars in some cases.

What Angel Syndicates benefit Startups

Via the angel syndicate, startups can have a chance to reach a group of HNWI members without self-finding each. It could benefit startups in the next round. 

Angels in a syndicate may from a variety of backgrounds and industries, providing valuable insights and advice. This platform will act as a conduit for its investors to process, execute, negotiate, and conduct due diligence on startups. As a result, founders do not have to deal with numerous and disparate investors.

What drawbacks Startups should consider

A large investment from a syndicate may require control right. When startups opt for angel syndicates to raise capital, it can result in dilution of ownership. This may cause the startup founders to have less control over their company.

Furthermore, conflicts of interest may arise among syndicate members due to different investment goals or priorities. This can complicate the investment process and startups may bide for a longer time to get the decision of syndicates. Therefore, startups must carefully consider these potential disadvantages before deciding to go with an angel syndicate investment.

Final Thoughts

In conclusion, both angel investors and angel syndicates are able to give valuable resources and support to startups, such as capital, business expertise, and contact networks. However, there are some key distinctions between the two types of investors that startups should bear in mind when deciding which approach to take.

Individual angel investors may provide greater flexibility, a more personal relationship, as well as a better-streamlined investment process. Nevertheless, they could offer less funding and limited access to networks and resources.

Angel syndicates, notwithstanding, can provide larger amounts of funding, broader networks and expertise, and a more diverse range of perspectives. Alternatively, they may also involve more complex investment terms, reduced control for the founding team, and potentially greater risk of conflicts.

Ultimately, the decision of whether to work with individual angel investors or an angel syndicate will depend on the specific needs and goals of the startup, as well as the preferences and priorities of the founding team. By carefully weighing the pros and cons of each approach, startups can make informed decisions that will best position them for success in the competitive world of entrepreneurship.

Uncovering the World of Angel Syndicate for Investors 

A syndicate is a popular venture capital alternative. Today, we will discuss the benefits and drawbacks of an angel syndicate platform for an investor considering joining this network. We hope you enjoy the post and get the best choice to decide whether to join.

What is Angel Syndicate?

We did explain in Angel Syndicates 101 that an angel syndicate is essentially a group of investors who agree to invest together in a specific project. A syndicate can include angels or investees from any source; syndicates frequently include angels from more than one investment network. While no additional conditions are required, in order for the syndicate to be viable, all investors would typically reach a (non-legally binding) agreement on how the syndicate will operate.

In an angel syndicate platform, there has a professional who manages the network, screening potential investments and making recommendations to the group. Its structure varies, but typically the group will enter into a limited partnership agreement with the professional investor who manages the fund. A sidecar fund, which is a separate fund that invests alongside the main syndicate, may also be part of the group.

Angel Syndicates for investors

If you’re an angel investor, you’ve probably thought about joining an angel syndicate.

Syndicate investing is a straightforward method for a group of investors to pool their resources to fund a specific startup or project. They frequently do so through a Special Purpose Vehicle (SPV), a type of micro-fund. The syndicate may be “led” by one or two investors.

How to be a part of Angel syndicates?

The requirements for membership in an angel syndicate vary depending on the angel group or organization, but some common factors to consider include:

Accreditation: Any angel syndicates require members to be accredited investors, which means that they meet certain financial criteria and are regarded as having a higher level of sophistication and ability to bear the risks of investments.

For example, if you want to be a member of AngelList, you must meet one of the following definitions to qualify as an Accredited Investor:

  • Individuals with annual income over $200K (individually) or $300K (with a spouse or spousal equivalent) in each of the last 2 years and an expectation of the same this year
  • Individuals with net assets over $1 million, excluding the primary residence (unless more is owed on the mortgage than the residence is worth)
  • An institution with over $5 million in assets, such as a venture fund or a trust
  • An entity made up entirely of accredited investors
  • SEC- and state-registered investment advisers 
  • Exempt reporting advisers filing with the SEC
  • Individuals with certain professional certifications (Series 7, Series 65, and Series 82 licenses)
  • “Family offices” with over $5 million in assets under management and their “family clients,” as each term is defined under the Investment Advisers Act
  • Any entity with over $5 million in investments that were not formed for the specific purpose of investing in the securities offered
  • A rural business investment company (RBIC)

Nevertheless, the fact that each syndicate model would have a different requisition to choose their members. As put by the team at Investopedia, “An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access by satisfying at least one requirement regarding their income, net worth, asset size, governance status, or professional experience.

In the U.S., the term accredited investor is used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by regulatory disclosure filings. Accredited investors include high-net-worth individuals (HNWIs), banks, insurance companies, brokers, and trusts.”

Experience and expertise: Many angel syndicates seek members with experience and expertise in specific industries or fields, such as technology, healthcare, or finance. This can contribute to the investment process by providing valuable insights and connections.

Investment history: Some angel syndicates may take into account an individual’s prior investment experience, including the types of investments made and their track record of successful investments.

Values and goals alignment: Many angel syndicates have specific values and goals that they seek to advance through their investments. They may seek members who share these values and goals, as well as those who are committed to using their investments to make a positive difference.

Network and connections: Some angel syndicates may take into account an individual’s network and connections in the startup and investment communities, as these can be valuable resources for identifying and evaluating potential investments.

Overall, the criteria for membership in an angel syndicate can vary greatly, and each group or organization may have its own distinct set of criteria and requirements. To ensure that you are a good fit for their community and investment philosophy, it is critical to research and understands the specific standards of each angel syndicate you are interested in joining.

How Angel Syndicates benefit investors

The ability to diversify your investment portfolio is the primary advantage of investing in an angel syndicate. You can spread your risk and potentially increase your chances of profit by investing in a group of companies.

Furthermore, investing in an angel syndicate can provide access to professional investors who have experience screening potential investments and providing guidance to the group. These professional investors can bring valuable knowledge, expertise, and experience to the table, helping you to make more informed investment decisions. By pooling resources and knowledge, angel syndicates can provide their members with a higher level of due diligence and analysis than individual investors would be able to do on their own. 

Additionally, the group dynamic of an angel syndicate can encourage more robust and informed decision-making, helping to mitigate individual biases and enhance the overall investment process. This can assist you in making better decisions about where to invest your money.

On the other hand, as a member of an Angel Syndicate, you will be joining a community of people who share your interests, values, and goals. Most Syndicates encourage their Angels to interact and share ideas in order to foster a sense of community. There are numerous advantages to doing so, including the opportunity to meet interesting people, make new friends, and even find commercial and job opportunities.

The final one is to obtain the best Share Deal Flow and Due Diligence. Individuals working in groups can make much better decisions and solve problems more effectively than individuals working alone. Angel investors could even pool not only their deal flow, but also their knowledge, experience, and resources – their collective intelligence – through syndicate investing. They are able to source more opportunities and conduct extra informed due diligence on the startups they review by leveraging the collective intelligence of the entire angel syndicate. This improves deal selection.

Some drawbacks investors could consider

While there are many benefits to investing in an angel syndicate, there are also some disadvantages to consider, including:

Reduced control: When you invest as part of an angel syndicate, you give up a degree of control over your investment decisions. The group dynamic means that investment decisions are made collectively, which may not align with your individual investment goals or risk tolerance.

Limited liquidity: Angel investments are typically made in early-stage companies and startups, which means that they are illiquid and may take years to realize a return. This can make it difficult to access your funds in a timely manner, and you may need to be prepared to hold your investment for a longer period of time.

Risk: Investing in early-stage companies is inherently risky, and there is a high likelihood that you may lose some or all of your investment. By investing as part of an angel syndicate, you are spreading your risk across a range of investments, but this does not eliminate the risk associated with angel investing.

Complexity: The investment process for angel syndicates can be complex, involving due diligence, negotiations, and ongoing management of investments. This can be time-consuming and may require specialized knowledge and skills.

Cost: Angel syndicates may charge fees for their services, including management fees, transaction fees, and performance-based fees. These fees can add up and reduce the overall return on your investment.

It’s important to carefully consider both the benefits and disadvantages of angel syndicates before making an investment. It may be helpful to seek the advice of a financial advisor or investment professional to help you understand the risks and make informed investment decisions.

How to join Angel Syndicates

The application process for an angel syndicate may differ depending on the specific group or organization, but here are some general steps you can take:

Review the syndicate’s website: Start by reviewing the angel syndicate’s website to learn more about the group’s investment philosophy, values, and goals, as well as its membership criteria and requirements.

Prepare your information: Gather information about your background, experience, and investment history to include in your application. You may also need to provide information about your financial standing as an accredited investor if required.

Submit your application: Submit your application through the angel syndicate’s website or by contacting the group directly. Be sure to include all of the information requested in your application and provide a clear and concise explanation of your interest in becoming a member of the angel syndicate.

Follow up: After submitting your application, follow up with the angel syndicate to confirm that they have received your information and to inquire about the status of your application.

Attend an interview or information session: Some angel syndicates may require applicants to attend an interview or information session to discuss their investment experience and background, and to answer any questions about their interest in the group.

It’s critical to understand that applying to join an angel syndicate can take time and that the specific requirements and steps may differ from one group to the next.

Co-investment in Venture Capital: A Strategic Partnership

Co-investment in venture capital refers to the practice of multiple investors investing in the same company or project together. In the venture capital industry, co-investment is a common occurrence and often involves partnerships between venture capital firms, investment banks, and other institutional investors. The idea behind co-investment is to pool resources and expertise to potentially reduce risk and increase the chances of success.

The Benefits of Co-investment in Venture Capital

  1. Sharing of Risks and Rewards: Co-investment allows investors to spread their risk across multiple investments, reducing the impact of any potential losses. In addition, it enables investors to share the rewards of successful investments, increasing their overall return on investment.
  2. Access to Expertise and Resources: Venture capital firms and other institutional investors often bring a wealth of expertise and resources to the table. By partnering with other investors, companies can benefit from this collective expertise and access to resources, which can help to increase their chances of success.
  3. Increased Networking Opportunities: Co-investment also provides an opportunity for investors to build relationships with other players in the industry, which can lead to further investment opportunities and collaborations down the line.
  4. Alignment of Interests: When multiple investors are invested in the same company, they have a vested interest in its success. This alignment of interests can lead to a more collaborative and productive relationship between the company and its investors.

The Risks of Co-investment in Venture Capital

While co-investment in venture capital can offer many benefits, it also comes with its own set of risks. One of the main risks is the potential for disagreements between co-investors, which can lead to conflicts and negatively impact the success of the investment.

In addition, co-investment can also increase the complexity of decision-making, as multiple investors may have different opinions on how the company should be run and where resources should be allocated.

Making the Most of Co-investment in Venture Capital

Despite these risks, co-investment in venture capital can be a powerful tool for investors and companies alike. To make the most of this strategy, it’s important to consider the following:

  1. Choose partners wisely: When choosing co-investment partners, look for investors with complementary skills, resources, and networks. This will increase the chances of success and reduce the risk of conflicts.
  2. Establish clear lines of communication: To ensure that everyone is on the same page, it’s important to establish clear lines of communication between co-investors from the outset. This can help to prevent misunderstandings and ensure that everyone is working towards the same goal.
  3. Have a clear exit strategy: It’s important to have a clear exit strategy in place from the beginning, as this will help to ensure a smooth and profitable exit for all co-investors.

In conclusion, co-investment in venture capital can offer a range of benefits to investors and companies. By pooling resources and expertise, co-investment can increase the chances of success and reduce the risk of loss. However, it’s important to choose partners wisely and establish clear lines of communication to make the most of this strategy.

Angel Syndicates: What Startups need to know

For startups, equity financing comes in various shapes and sizes. The most common type is a traditional venture capital firm. However, there are other instruments and organizations that will fund startups in exchange for equity. A syndicate is a popular alternative to venture capital. 

Today, we are going to show you the pros and cons of an angel syndicate platform.  We hope you enjoy the post, and that if you are a founder or investor, you can use it to decide whether to join or not.

What is an Angel Syndicate?

We did explain in Angel Syndicates 101 that an angel syndicate is essentially a group of investors who agree to invest together in a specific project. A syndicate can be formed by angels or investees from any source; syndicates frequently include angels from more than one investment network. While no additional conditions are required, in order for the syndicate to be viable, all investors would typically reach a (non-legally binding) agreement on how the syndicate will operate.

In an angel syndicate platform, there has a professional who manages the network, screening potential investments and making recommendations to the group. Its structure varies, but typically the group will enter into a limited partnership agreement with the professional investor who manages the fund. A sidecar fund, a separate fund that invests alongside the main syndicate, may also be part of the group.

Angel Syndicates for Startups

An angel syndication network can be a great option for a startup looking for funding.

As a startup entrepreneur, you reliably understand that one of the most critical aspects of success is obtaining funding. While there are numerous options available, ranging from venture capitalists to crowdfunding, an angel syndication network is one you may have yet to consider.

As the words above, a group of angel investors who pool their resources to invest in startups is known as an angel syndication network. Therefore, this can be an excellent option for entrepreneurs seeking significant funding but unwilling to give up too much equity in their company.

To get the investment from an angel syndicate, startups should prepare not only their best model business, the expected products or services, but typically excellent pitching.

How an Angel Syndicate advantages your Startup

There are a few advantages when getting the fund from angel syndication networks:

First of all, they can give you access to a wider range of resources. Angels in a syndicate can come from dissimilar backgrounds and industries so they can provide valuable insights and advice.

Secondly, an angel syndication network can help you build relationships with potential investors. By working with a group of angels, you can get to know them better and build trust. This can make it easier to secure future funding from them.

Moreover, one of the most significant advantages of an angel syndication network is that it allows you to access more capital. When dealing with a single angel investor, they may only be able to invest a limited amount of money. However, by using a syndication network, you can access the resources of multiple investors at the same time. This can give your business the capital you need to scale up.

How an Angel Syndicate disadvantages your startups

Of course, even getting a ton of benefits from this platform, founders still attend to some of its drawbacks. One is that you’ll need to pitch your startup to a variety of people altogether concurrently, which be harder to get their acceptance and you should prepare more carefully.

Another disadvantage is that you may have to share a larger equity stake in your company with a syndicate than if you worked with a single angel investor.

How to find Angel syndicates

You can find angel syndicates via the internet. There are numerous platforms that connect entrepreneurs with angel investors, such as the Angel Capital Association, the Angel Investment Network, and AngelList. Strong referrals may also help your case with angel investors, so consider tapping into the power of your social media connections, particularly on LinkedIn.

Conclusion

In conclusion, angel syndicates play an important role in the world of venture capital. By pooling their resources, angel investors can access a wider range of investment opportunities and provide startups with more significant amounts of funding. Angel syndicates also provide valuable support to startups, including mentorship, strategic advice, and access to networks and resources. 

As the world continues to evolve and new business models and technologies emerge, angel syndicates will continue to play a critical role in helping startups grow and succeed. For entrepreneurs, forming partnerships with angel syndicates can provide a valuable source of funding, mentorship, and support to help them achieve their goals.

Angel Syndicate 101: How to meet an Angel Group?

Angel Syndicates is no longer a strange term among startup investors. Apart from looking for investments through bank debts, venture capital funds, or angel investors, Angel Syndicate is also a good choice that investors and startups are looking at. Let’s learn more about this model in this post.

Angel Syndicate

What is Angel Syndicate?

As the name implies, an Angel Syndicate consists of a group of investors who agree to invest in the same project together. In a Syndicate, Angels or other investors can be gathered from any source, and regular Syndicates can have Angels from multiple investment networks.

In another word, a Syndicate is a club organization that brings Angel Investors together to present deals to its contributors. The individuals then determine to whether make investments in their personal money inside the organizations on offer. Angel Syndicates manage deal flow, due diligence, and transactions on behalf of the investors there. It usually takes 1-6 months or more for Angel Syndicates to complete their deals.

You could refer to some popular Angel Syndicate platforms recently: Angelist, Odin, The Syndicates, ACFInvestors (Angel CoFund), etc.

Why Angel Syndicate?

ANGEL SYNDICATE FOR STARTUPS

The popularity of Syndicate investing is not accidental. For startups, Syndicates are interesting because they enable rapid advancements:

Higher sums of capital

When a Syndicate presents a deal to its network, a bunch of investors will commonly look to make investments in the company, which often means, startups can near their funding rounds speedily.

In some cases, Angel Investors form their own so-called “Angel Funds” to pool their capital collectively and spend money on multiple startups in a fund layout. The funds are in higher amounts compared to individual angel investors for startups, which could be up to 1 million dollars in some cases.

Simplicity

The Syndicate platform will represent this group of investors to process, execute deals, negotiate, and do due diligence with startups. So, founders don’t have to deal with numerous and different investors.

ANGEL SYNDICATE FOR INVESTORS

The Angel Syndicates investment is not just beneficial for startups, it can bring limitless potential to individual investors as well:

Portfolio Diversity

Syndicate investing allows angels to build larger portfolios.

Rather than eg. investing $100k in a single deal, you can invest $10k in ten deals. Portfolio diversity is well-known as good practice for investors in general, but it is particularly important in angel investing and venture capital.

An Angel Syndicate increases your odds of hitting a winner and dramatically increases your chances of tripling or quintupling your invested capital. Additionally, you are less likely to lose money altogether.

Shared Deal Flow and Due Diligence

When organized in the right way, groups of individuals are able to make better decisions and solve problems more effectively than people working alone.

Simplicity

By connecting investors, identifying and evaluating potential investment opportunities, and managing their investments, Syndicate platforms provide a central location for investors to connect. Therefore, investors don’t have to touch their fingers too much on these sides.

Community and professional development

As a member of an Angel Syndicate, you will also join a community of individuals with similar interests, values, and ambitions. Most Syndicates foster a sense of community by encouraging their Angels to interact and share ideas. There are various benefits to this – you meet interesting people, make new friends, and can even find commercial and job opportunities.

How does it work?

Syndicates proposal originates from an institution there remains a requirement for a “Lead Angel” to lead the proposition on behalf of the syndicate.

This individual, as well as at least two private individuals in the Syndicate, should be investing a meaningful amount in the business at their own discretion. Institutions that are counterparties to Syndicate Agreements must be capable of reporting on the portfolio company and monitoring its performance, either directly or through constituent investors. The lead investor then works with other accredited investors to raise the rest of the money.

In fact, Syndicates do not need to be formally constituted and may form around a transaction where the members have agreed to invest. However, the Syndicate members should be actively engaged with each other prior to the investment and work together in terms of sharing due diligence and negotiating terms. Additionally, the syndicate platform requires investors must have been and are not tied to the startups being invested.

Does Angel Syndicate have fees?

When investing in a Syndicate, investors pay a portion of the setup cost (proportional to their investment amount) and usually carry (around 20%) to the lead or the investment advisor. The Agreement for the fees in Syndicates could change on each platform. In rare cases, there is no setup fee or carry.

Conclusion

In summary, we have learned about Angel Syndicates, their operating models, and the meaning of why this model is significant. In the following post, we will explore Angel Syndicate in more depth, so readers will have the most insight and may be ready to join.

What is Investment DAO? – The differences with Traditional Venture Capital.

You are building your own startup or starting a new project and you need an amount of capital to uphold. So you come to a venture capital firm to source that capital. However, the trouble is the centralized and exclusionary culture of venture capital means. It makes you give up shares and lose some control over a central entity, and you don’t want to. If only there were another way, that is definitely Investment DAO.

DAOs could be the blockchain’s solution to the problems in VC investment. DAO protocols offer a vehicle for community investment, giving room for projects to find funding without relinquishing shares to one major corporation.

What is Investment DAO?

DAO is a short name for a Decentralized Autonomous Organization. It is essentially a company that is governed by smart contracts. 

There has a smart contract that manages all activities in DAO. The members within a DAO discuss proposals and make decisions that are then implemented using smart contracts. This platform even may function without human intervention and is unceasing due to its blockchain base layer. This conveys the fact that the governing framework will still endure on the blockchain even though DAO members lose interest or exit the organization.

DAOs typically make decisions through voting procedures using governance tokens that their members hold. Some DAOs allow any member to propose, while others demand members to have a certain amount of governance tokens. The more governance tokens a user has, the more influence they exert. 

Investment DAOs are a democratized investment vehicle, allowing raise capital around an emergent idea without relying on the approval of a centralized VC. And more than this, by decentralizing the source of funding, they accept a far greater variety of ideas to be brought to life.

This investment platform usually operates on a set of principles by using a proposed mechanism. For instance, a DAO may be designed to invest in specific industry sectors, such as DeFi or GameFi protocols.

What is traditional Venture capital?

In a traditional venture capital firm, General Partners (GPs) found and manage all activities. In addition, they are responsible for sourcing investment opportunities, performing due diligence, and final investments in a portfolio ecosystem.

The role of the GPs is to make certain they boost finances from Limited Partners (LPs) and supply potential startups. They must carry out extraordinary due diligence, get investment committee approvals, and set up capital efficiently. As startups grow and provide returns to VCs, the VCs will return to LPs. 

It has successfully catalyzed venture capital via the rise of the internet, social media, and Web2 giants over the last three decades. However, it still exists the frictions, which the Web3 version promises to address.

Traditional Venture Capital vs Investment DAO

Inclusive        

Due to the amount of capital involved and the risk of the asset class, venture capital is mostly viable for sophisticated investors.

DAOs can be tokenized to allow investors to make smaller contributions, and are open to receiving investments from across the globe. However, the risk is still high.

Liquidity Risk

A key challenge with traditional VC is that it’s an illiquid asset class with capital invested in these funds being locked for years, not until the VC fund has an exit with a respective project.        

Investment DAOs can offer a token that derives its value from the underlying basket of crypto assets. At any point in time, an investor should be able to liquidate these tokens on a crypto exchange.

Governance  

VC funds make investment decisions through an investment committee made up of a small group of people. This is a highly centralized system of governance.      

DAOs have a decentralized governance system, where members can vote on investment proposals based on the number of tokens they hold.

Capital Requirements   

The initial investment needed to invest in a VC fund is quite large, and most investors are either equity firms or institutional investors.         

DAOs do not have high capital requirements and allow any retail investor to make small contributions.

UNDERSTANDING VENTURE CAPITAL 3

© Tien Nguyen

Why do venture capital funds often choose emerging technology businesses to invest? Why don’t they invest in classic businesses, wear durable clothes and rest assured that their capital flow will not be lost? There are many questions about who the venture capital funds will be interested in. What these businesses are like and the investment logic of venture capital funds for these businesses is what we will discuss in today’s article.

Part 3: Fast-growing startups.

Classic businesses will typically decide on a market to enter, produce products and services, and then find a way to get their first customers. Gradually increase the number of customers paying for the product. After 3-4 years of steady growth, cost control and gradually increasing profit margins, these businesses continue to compete until the market pie is divided and business owners benefit from their investments. slowly, of course, after about 15-20 years. This type of business will prefer debt financing because their profits are planned to cover reinvestments and borrowed capital is a cheap flow of capital as we know it.

The picture completely changes when we talk about venture capital funds. The goal of success for funds and fund managers is to increase the share of assets they are managing. This goal can only be achieved when the valuation of the business in which they invest increases, and must increase rapidly. From there, the fund can divest by selling shares or IPO. With a life cycle of typically 10 years, funds expect to divest some or all of them in about 3-7 years. This, for the business receiving the investment, means that their growth rate must be outstanding during this time period.

The Venture Capital industry is driven by the hope of finding a handful of successful businesses and that success must be large, resonant and high value. In a portfolio of funds, 10 failed deals can be salvaged by just 1 successful one. A hugely successful megahit deal can accelerate the growth of the entire industry.

These megahits will be called by the beautiful name: “Unicorn”, which are startups with a valuation of over 1 billion USD.

Typically, businesses that are able to meet the criteria (1) high growth rate and (2) ability to expand quickly are enterprises with disruptive innovation capabilities. Like the UBER case has done for the taxi industry.

Today’s technology allows the number of users to grow almost unlimitedly. Social networks are operating with as many users as the population of the most populous countries in the world, something that before, private businesses could not dream of.

The cost to serve a new customer is now almost negligible for the technology industry thanks to the extensive network infrastructure and very high automation capabilities.

Thus, we clearly see that: VCs are unicorn hunters.

However, in reality it is not easy to distinguish a real unicorn from a colorful old horse.

A startup at the same time as the Amazon monument whose name few people remember now. It’s Webvan. Founded in 1996 with an online grocery model, Webvan is one of the pioneers with a post-IPO valuation of only 3 years after its founding of $ 4.8 billion. Webvan went bankrupt just 2 years after its IPO. Many reasons were given, and most of them became lessons for a truly unicorn of the time, Amazon.

Investors for Webvan through the stages include many famous names such as Benchmark, Goldman Sachs, Softbank, Sequoia, Yahoo, etc. Even the super and experienced eyes of the Venture Capital industry are sometimes That’s how old horse and unicorn are confused. However, always remember: failure is part of the venture capital process. Sequoia has also had many admirable tractions such as investing in Google with Kleiner Perkins so that not too many people remember their Webvan failure. To this day, Sequoia remains one of the most trusted VC fund managers.

The venture capital industry exists and develops based on the “Hits Driven” principle, which is very similar to the industries of gold mining, oil and gas exploration, space exploration, music, literature or cinema. Investors in these industries often have to foresee a prospect of success, willing to take the risk to invest money, time, and effort in pursuit of their beliefs. With a little luck, if successful, it will be a great success.

In the literary world, one can take J.K. Rowling as an example for an entrepreneur. The book “Harry Potter and the Prophet’s Stone” was submitted in manuscript to 12 publishers and was rejected. Surely there are founders or pitchers who will understand this pain. When Bloomsbury decided to publish the book, they were like venture capitalists themselves. So far, Harry Potter has remained a bright spot in the company’s portfolio with 13% contributing to 2018’s profits.

Venture capitalists are not interested in a startup with steady profits and slow growth. For us, those are the “walking dead” that, when there are too many in our portfolio, we will never be able to return the investment to our investors, not to mention the increased assets. We are looking for startups with “Hockey Stick” growth potential (as shown). To achieve this form of growth, we will commit to multiple rounds of funding, enough for the startup to hit certain milestones (milestones).

A VC when investing is like launching multiple rockets to the moon (which is when we exit). Fuel will be burned in stages to overcome the atmosphere and the resistance of gravity. Here is each round of funding that we will be participating in. Any rocket that does not reach the moon is considered abandoned. The moon is the ultimate destination with a VC and pretty milestones along the way don’t mean much.

In short, to understand these principles, startups should carefully consider their vision and model to understand what VCs want when they refer to “a startup with high growth”.

Read more at Vietnam Venture Capital | Startup Entrepreneurs, Investors & Innovators