Yes. If investing in a startup seems too precarious a step to take alone, it is worth noting that angel investors can come together to invest.
Investing alongside other investors is known as syndication and has a range of benefits, including but not limited to:
• The pooling of funds, which allows investors to get involved with more than one business or larger businesses;
• Shared expertise, knowledge, experience and availability to help entrepreneurs when needed;
• The spreading the financial risk between multiple parties, taking some of the pressure off and finally puts less pressure on each investor, allowing them more time and money to expand their portfolio of investments.
There will usually be one investor in the syndicate identified as the ‘lead investor’, who will play a more active role than the other co-investors in terms of their input in the business and funding. They will typically take a board position in the company as the syndicate representative.