We're extremely pleased to announce that we are one of the first organizations in Canada that will be running an AngelList Syndicate. We believe this is a huge opportunity to invest in new startups and attract new capital into the startup ecosystem.
AngelList Syndicates provide us with a flexible funding vehicle that will help us drive towards startup co-creation faster, and provide our newly co-created startups with the right pre-seed capital to get going. We've seen syndicates work effectively in the United States and look forward to making them a success in Canada too!
From the AngelList website: "A syndicate is a VC fund created to make a single investment. They are led by experienced technology investors, and financed by institutional investors and sophisticated angels." Oftentimes, people who run syndicates launch a "fund" on AngelList, where they encourage backers to pledge support and future investments in syndicates. That's exactly what Highline BETA is doing.
You can commit your support to Highline BETA's "fund" by pledging to invest in our syndicates when they go live on the AngelList platform. We're aiming to make 4 investments of $25,000 minimum per deal. Syndicate investors will be asked for $10,000 commitments.
We're thrilled to have the opportunity to work with AngelList on bringing syndicates to Canada.Invest with Highline BETA
Some of our investments (prior to the launch of the syndicate) include Breather (raised $30M+), Andela (raised $30M+), FameBit (acq. by Google), Localmind (acq. by Airbnb) and Hurrier (acq. by Rocket Internet).
Highline BETA is a pre-seed investor focused on a few verticals, based on partnerships and corporate customers we’re actively involved with.
We will invest in other areas of interest in the future (see: investment themes), but our initial focus for our AngelList Syndicate will be Health, InsurTech/FinTech & Retail/CPG.
Below are a few commonly asked questions about AngelList Syndicates. If you have any specific questions, get in touch!
Can I invest in your syndicate from the U.S?
Yes. You can invest in the Highline BETA AngelList Syndicate from the U.S. In fact you can invest in the syndicate from anywhere in the world. The startups we invest in through the syndicate will be based in Ontario, but our syndicate investors can be from anywhere.
When I commit to the syndicate, do I send you the money right away?
No. Your commitment is just that--a commitment to invest in a future syndicate deal that Highline BETA presents you with. Our target is to make 4 investments through AngelList in 2017.
Do I have to invest in every syndicate deal Highline BETA does?
No. When Highline BETA decides to lead a syndicate deal for a particular startup we make the investment opportunity available to all of our syndicate participants. You have an option at that point to invest or not.
How do the economics work for the syndicate?
Each syndicate investment has a one-time cost of ~$8,000, prorated across all investors in the syndicate by their investment amount. For example, if Highline BETA puts together a syndicate for a $250K investment in a startup, and you put in $25K, you would pay approximately $800 in costs.
These costs are paid to third parties such as state regulatory agencies, payment processors, and accountants. AngelList does not profit from these fees.
Highline BETA’s syndicate also charges a carry of 20% in total. Carry is a cut of positive returns generated by the investment. Example: let’s say you invest $1,000 in a syndicate with 20% carry. If the investment returns $2,000, the syndicate would earn $200 in carry: 20% * ($2,000-$1,000). You can learn more about syndicate economics here: https://angel.co/economics-syndicates.
Where can I learn more about AngelList Syndicates?
You can learn more here: https://angel.co/syndicates