What formal constitution must the Syndicate have?

June 24, 2019

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 during the investment and work together in terms of sharing due diligence and negotiating terms. Syndicates must also agree to work with the CoFund both pre-investment and post-investment, so long as both remain co-investors.

There is no requirement for a syndicate to have a particular legal form, but there must be the capacity (either individually or collectively) to form the counterparty to legal documentation, including a formal Syndicate Agreement, setting parameters for the co-investment relationship between the Angel CoFund and the syndicate.