SyndicateRoom is the newest example of a new style of early stage investment vehicles. In essence, SyndicateRoom uses partnerships in UK Business Angels networks to identify potential investments, which are then pitched to SyndicateRoom customers.
The value prop for the former angels is that they can get their investments funded more quickly; the upside for the latter is that they get easy access to the deal flow. Very interesting idea.
Equity platform matches business angels with crowd investors – a sign that the venture capital industry is changing fast SyndicateRoom is an equity crowdfunding platform that has raised £16 million for 27 start-up companies in the first 18 months of its operation. Its co-founder and chief executive Gonçalo de Vasconcelos stresses to Euromoney its key distinguishing feature. Most crowd-investing platforms are company-led. An entrepreneur sets up a business plan for a new venture and pitches the idea online to a crowd of potential investors with money to put to work. SyndicateRoom is investor-led. Before any business is pitched to the wider crowd, professional angel investors, including some of the biggest names in a once obscure market segment suddenly popularized in the UK by the BBC television programme Dragon’s Den, first vet the business concept and the valuation.