Syndication

By: Marianne Hudson, ACA Executive Director

ACA members are getting very good at working together to fund interesting deals.  The latest example:  six member groups from literally all corners of the US were part of a $12 million series B financing.  The investment in Cognition Therapeutics was led by Golden Seeds (New York and many cities), and included ACA members Cowtown Angels (Fort Worth), Maine Angels, PLSG Accelerator Fund (Pittsburgh), Tech Coast Angels (Southern California), and Ariel Southeast Angel Partners (Savannah), as well as additional life sciences investors.  Cognition Therapeutics (CogRx) is focused on discovering and developing disease-modifying therapies for Alzheimer’s and related neurodegenerative diseases. Read the full press release below for all the details.

Angel investing groups provide a considerable power to angel investors, which carries over to entrepreneurs and our startup economy.  I particularly like the powers of portfolio diversity, the right people and size. 

By: Matt Dunbar, Upstate Carolina Angel Network

ACA recently hosted a Webinar with AngelList co-founder Naval Ravikant to help members learn more about the AngelList syndicates platform. During the hour-long webinar Ravikant explained how AngelList syndicates work and how they enable entrepreneurs and angel groups to attract more investors to fill out funding rounds. Here is a quick summary of some of the details Ravikant shared during the wide-ranging Webinar:

Q: How does a deal get syndicated through the AngelList platform?

A: Although any entrepreneur can post a deal to AngelList and try to attract investors, the syndicates platform requires a lead investor. The lead investor can be an individual angel, angel group, or seed fund that sets the terms, commits initial funding to the round, and provides an investor’s perspective on the candidate company. The syndicates platform is simply a vehicle to attract other investors to the deal. 

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