A syndicate is a group of investors (like an investment club) that pools their capital to invest into deals via a special purpose Vehicle (SPVs). As a member of the Finwise 4D investor syndicate, you’ll be invited to deals that you can choose to invest in on a deal-by-deal basis.
We use the Odin platform to syndicate our deals. In order to invest through the Odin platform, you must be a “Self-certified sophisticated investor” or High Net Worth Investor, and meet the requirements set out in article 23A of the Promotion of Collective Investment Schemes Order, by the FCA, .
The “sophisticated investor” standards vary between countries, but to invest on the Odin platform all investors must at least meet UK requirements. Non-U.K. investors should also review the standards under their local law.For example, the “Accredited Investor” standard for US investors.
For the deals we present to syndicate members, the minimum ticket size is €10K.
We do not charge any management or subscription fees from syndicate members. When you invest in a deal, you will only be charged 5% of your total investment amount to cover the admin and legal fees by the Odin platform. This is upfront and once-off.
The syndicate is operating on a success fee solely, in the form of a carried interest. We charge 20% of the future profits you gain from an investment you made via the syndicate. This way we only earn upside when you are.
we primarily invest in founders and are therefore looking for exceptional founders, ideally serial entrepreneurs with exit experience, an international mindset and strong sales skills
Our investors range from existing angel investors seeking additional deal flow, executives interested in venture capital but not having the time to be a full time angel investor, CEOs of startups with liquidity from exit events.
Syndicates offer the possibility to invest with much lower amounts than traditional angels and allow you to build a diversified portfolio easier. Research over a long period indicate an average return in excess of 20% IRR on a diversified angel portfolio. However, this can only be obtained by investing in many deals (ideally 20 or more). Syndicates make angel investing a lot more democratic
Your shares are held in custody by a UK limited company that acts as a Special Purpose Vehicle ("SPV"). The SPV hold the shares or share-like instruments in trust on the behalf of the investors using a UK Bare Trust Structure. This is a legal agreement in which you as beneficiary haven immediate and absolute right to both capital and income of the trust. The trustee must follow the instructions of the beneficiary in relation to the assets in trust and has no discretion over the assets. The trust is tax transparent, so you pay tax according to the rules of the country where you are tax resident. You do not have any UK tax liability.