VC Fund vs Syndicate SPVs.
Fees calculator.

Questions?

How does the calculator work?

The model is based on 2 parameters: the number of investments that you are going to make and the average ticket size per investment.

In a traditional VC model, there is a 5 years investment period following by 5 years harvesting period.

We replicate this type of model with the Syndicate to compare what is comparable, but in a Syndicate, you can continue to invest after 5 years, you don't have to stop investing.

What is the difference between a Syndicate and a Fund?

In the fund model, investors will commit a certain amount of money over 10 years. The fund manager then deploys capital to invest between 10 to 100 startups.

Syndicate allows the fund manager to raise capital from investors on a deal-by-deal basis. The fund manager sources startups for investors and they decide whether or not to invest in each deal. For each deal, a new SPV is created.

When should a fund manager forego spinning up a fund and instead go for a Syndicate?

It all depends on your situation!

Syndicate is great to build your track record as a fund manager. You can do a couple of SPVs and then launch your fund.

Managing a fund is a professional activity and it's a bigger commitment than running a Syndicate. Deal-by-deal investment is something you can do on the side while having a full-time job.

It also depends on your investors, certain investors want to be more involved and invest on a deal-by-deal basis while others just want to subscribe to a fund.

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