What are Syndicates?
A syndicate is a fund created to invest in one particular start-up and capital is pooled together from multiple angel investors.
Shatter Syndicates – Redefining the Good Old Boys’ Network…to include Women!
Not only are there not enough women led companies getting the funding they need (just 2% of VC dollars went to female entrepreneurs in 2017), but women who account for 40% of all Americans with gross investible assets of more than $600,000 and make up 48% of the country’s millionaires, are not actively investing. Some reasons that are cited for lack of investment by women include lack of education and awareness, not knowing where to start, lack of access to deal flow, due diligence concerns, and more. Through Shatter Syndicates, we are demystifying the investment process and making it inclusive. We are redefining the good old boys network to include women by putting vetted deal flow in their hands, while providing them with due diligence so that they can make informed decisions while supporting fellow women and diverse-minded founders in their fundraising goals.
When women invest, a female entrepreneur is 2.5x more likely to raise capital. Diverse teams bring a different perspective and produce solutions for all, instead of a select few, leading to greater returns. Given a direct link between diversity and innovation, we look to exceptional women to drive comprehensive solutions across the enterprise and in consumer markets.
A Syndicate is formed when a group of accredited investors comes together to collectively invest in an entity raising funds. The Syndicate is a Special Purpose Vehicle (SPV), formed by Shatter Syndicates as an LLC, on behalf of the pooled investors. The LLC appears as a single line item on the capitalization table of the company receiving the funds, but each investor owns shares of the LLC in accordance with their percentage of the overall investment.
Per SEC regulations, investors must have an income of $200k individually or $300k if measured as a couple; or assets of $1M minus the primary residence.
At this time, Shatter’s investors do not pay a fee when investing in a Shatter Syndicate LLC. Should the investment make a profit above the initial invested amount, also known as Carry, members of the syndicate receive their principal investment amount along with 85% of the carry, split according to their share of ownership in the LLC. The remaining 15% is paid to Shatter Syndicates for serving as the lead arranger of the syndicate. Investors collectively split the Administrative costs of the Syndicate, including legal and accounting documentation in accordance with their share of ownership. Shatter Syndicates does not receive any money from the expenses paid by Investors for the Administrative functions of the Syndicate.
Due to SEC regulations, only registered users who are accredited investors may receive further instructions on how to peruse Shatter’s active deal flow for investment consideration.