Leads get carry for their syndicated investments. This allows them to leverage their deal flow by earning upto 15% carry on the allocation being shared with backing investors. Learn more about the economics of syndicates.
Investors can participate in syndicates with lower minimums. They get access to leads' deals and benefit from their experience in picking and managing investments. These deals will be typically hard to access for someone who hasn’t spent considerable time building deal flow.
Startups get more capital with a single cap-table entry.