The SaaS Syndicate is a new startup investment club led by Jason Calacanis with the support of our most frequent and trusted collaborators in the space.
We invest exclusively in SaaS software companies from pre-launch to Series B.
What is The SaaS Syndicate?
The SaaS Syndicate connects accredited investors with opportunities to invest in world-class SaaS founders and connects founders with investors who specialize in helping SaaS companies.
FAQ for Investors
What is the benefit of a Syndicate?
Deal flow and convenience. The lead takes care of finding startups, negotiating deal terms, performing due diligence, writing a deal memo, hosting a webinar, and advising the SPV.
What’s an SPV?
SPV stands for Special Purpose Vehicle. We create a new SPV for each deal with the exception of some pro-rata deals. The structure of the SPV is an LLC.
If I choose to invest will my name be on the company’s Cap Table?
No. As a syndicate backer, you are investing in membership units of the special purpose vehicle, the SPV invests in the company on behalf of its members.
What is the Set-Up Fee?
There is no cost to be part of The Syndicate, but if you choose to participate in a deal the setup and diligence fee per deal is approximately $15k, depending on the amount raised and covers the creation and management of the SPV, Blue Sky filing fees, a due diligence fee, and wire fees. This fee is split on a pro-rated basis among the investors who opt into the deal. Fee structures for 2022 include:
$9,500 for SPV creation and management by Assure,
Preparation and management by LAUNCH:
0-$250,000 = $2,500
$250,000.01 - $500,000 = $5,000
$500,000.01 - $1,500,000 = $7,500
$1,500,000.1 - $5,000,000 = $10,000
$5,000,000.1 and up = $15,000
and variable fees for wire and blue sky filing
What is the minimum amount I can invest?
Minimums range from $2,000 - $15,000 per deal, largely dependent upon the size of the allocation. On average, the minimum is $4,000.
Is it mandatory to invest in pro rata?
We will always offer pro rata but you are not obligated to participate. You will never be responsible for more than your initial subscription (investment) amount in the SPV.
What is carry?
“Carry” is short for carried interest which is a share of the profits. Carry for The Syndicate is 20%. Carry is paid to the lead for negotiating deal terms, performing due diligence, writing a deal memo, hosting a webinar, and advising the SPV.
Can you give me an idea of how many deals I should expect to see from The Syndicate each month?
The goal is to send one deal/week.
Can I participate as a foreign resident?
Yes, you may participate as a foreign investor as long as you meet the U.S. SEC accreditation requirements.
Is there a portal I can log into to see previous deals?
No, we currently send all deal memos via email.
FAQ for Founders
What is the benefit of a Syndicate?
One line item on your cap table for up to 249 investors. That's a lot of super fans and collective brainpower. It's also a great alternative to VC if you're operating in a non-traditional category.
Is there a cost?
There is no cost to pitch to the Syndicate (please don't ever pay to pitch!)
Should you successfully raise funds from The Syndicate, the investors in the SPV will pay for fees on a pro rata basis per investment.
What happens after I apply?
We review applications on a rolling basis. If we believe there is a fit, we will email you to schedule a 20-minute pitch over Zoom.
If my company is selected to pitch to The Syndicate, what happens next?
Our team will begin diligence and you'll pitch to the Syndicate. We work closely with you throughout this process.
How long does it take to run a Syndicate?
On average, 3-5 weeks.
Can I get a list of names of the investors in The Syndicate?
Due to privacy, we cannot release the names of the investors in our syndicate.
If I raise through The Syndicate, what's the best way to communicate with investors in my deal?
We create an email list (mail group) of the investors who opt into your deal and ask you to send updates to that group.