Syndicated Investment

Syndicated Investment

Being the Trans-Tasman equity crowdfunding platform demands constant innovation and adjustment to keep apace with, and ahead of, various industry changes. To do this, Equitise has maximised the ‘democratic’ nature of equity crowdfunding – having an array of various investor types consolidating on a single investment project – with its recent syndicated investment platform. Today, we set out the introduction of syndicates on Equitise’s platform, and its primary benefits for investors, and leads.

Background to Syndicated Investment

Opening up access to financial deals to retail investors has long been acknowledged as the key facet behind equity crowdfunding’s appeal. As “mum and dad” investors jostle alongside more experienced and financially savvy accredited investors, Venture Capitalists or angels, the results can be fascinating. The former receive access to industries or deals they’re eager to support, and the latter are able to obtain a sort of market validation from the crowd. Recently, Equitise has launched its syndicated investment platform to a closed network of sophisticated investors to bolster the relationship between these investors and the trusted syndicate leads we have chosen.

Equitise has curated a collection of eight trusted syndicate leads, including H2 Ventures, Reinventure and Tank Stream Ventures. These syndicates will allow investors access to investment opportunities sourced and vetted by an experienced cornerstone investor. Currently, there are two live syndicated transactions, with six already completed. For the time being, the platform will be proceeding with Venture Capitalists, followed by notable Angel Syndicates and Family Offices eventually.

Benefits for Investors

The effect of the syndicated model is to democratise the traditionally closed-off world of Venture Capital investment. Selected investors will be able to tap into opportunities sourced by reputable investors who curate the best and most exciting deals. It therefore functions as an appropriate introduction to early-stage investments – a safer and exciting extension of traditional equity crowdfunding. For this reason, Equitise undertakes a thorough vetting process of its Syndicates before allowing them to launch transactions. While there will be lower minimums that the standard VC fund commitment, without an obligation to invest in each deal, syndicate leads will nonetheless be able to Venture Capital set their own terms. Investors are thus offered deal-by-deal access, rather than being obligated to invest when called, as is typically the case with Venture Capital funds. This empowers the investors more, enabling them to make their own decisions on the amount to invest in each transaction. This likewise alleviates initial industry concerns and misgivings that crowdfunding opportunities are not properly assessed by investment professionals. Moreover, there is a gravitational effect to having several high-quality investors in one platform. Ultimately, syndicated investment also exemplifies the main benefits of crowdfunding – automating the investment process in a democratic manner to raise capital in a more efficient way.

Benefits for Leads

As for the “leads” in the syndicated process, it offers them a means of monetising the co-investment opportunities they put out there for other investors. As an efficient tool for sourcing investors and deal-flow, it is unique. As such, it’s a cost-effective way of leads accessing the crowd, taking their offers public, and building a following easily. Indeed, it’s a valuable marketing tool for any b2c business that investment professionals are looking to fund. As for the leads, there is no requirement to raise a large fund, and they can raise capital on a deal-by-deal basis. They’re able to set their own terms for their syndicates, balancing a fair deal for investors as well as satisfying their return. By strategically sourcing sophisticated investors to partner with your chosen businesses, you’re tapping into a more fertile network. Equitise will independently verify each investor through automated identity, AML/KYC and sophisticated investor certification.

We hope this clears up any questions raised by the release of syndicated investment. Please contact us if you’d like any more questions on the process and Equitise’s exciting launch of syndicated investment deals.

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