Step 1 - Invite investors to join your syndicate
You'll want to build up your list of LPs so that when you are ready with a deal, you have a solid list of investor to go out to with it. You can see your list of LPs in the 'My LPs' tab.
You can go as casual as:
"Hey guess what? I'm launching a syndicate! I'll be sharing some exciting deals (startups I'm investing in) soon. I’d love for you to join! Find me and join here: aussieangels.com/syndicates"
More email/social templates for inviting LPs to your syndicate
Checklist:
Have you invited all your angel friends to join your LP list?
Have you shared your syndicate on socials for others to join?
Step 2 - Identify a startup you want to invest in
You probably talk to lots of founders and get plenty of deal flow. You're looking for an exciting company that you think others will be excited to invest in as well.
If they are raising an angel round, it should be at least $100k. It may even make sense for them to raise their entire round through your syndicate on Aussie Angels. If they are raising a pre-seed or later round, the round size should be at least $500k.
Checklist:
Are they raising at least $100k?
Is this a startup I'm excited to invest (at least $5k) in?
Do they have their investment documents (pitch deck, data room, term sheet, etc.) ready?
Step 3 - Secure an allocation
It's important to ensure that if we make an offer to investors to invest in a company, that we'll actually be able to invest. So once you've decided you want to invest, the next conversation you need to have is to secure an allocation in their round.
If they are raising a small angel round, the conversation might go something like this:
"I am very interested in investing. I also run a syndicate on Aussie Angels, and I'd love to be able to offer this opportunity to my LPs. I could help you fill your round, while keeping your cap table clean, as our investment will still only be one entity on your cap table. If you have other angels you're talking to with smaller cheques they could possibly be wrapped up into the same entity as well."
If they are raising a pre-seed or larger round, the conversation might go like this:
"I would love to invest. My cheque size is [$xxxxx], however I also lead a syndicate on Aussie Angels. I have about [50] investors in my LP list and we typically fill anywhere between [$130k-$250k], so it would be great to get an allocation in your round of up to [$xxx,xxx]."
Once they've said yes, you'll need to complete an Allocation Agreement with them to confirm the allocation agreement. You may want to say something like:
"Great, I'm very excited to share this deal with my LPs! To ensure I can launch the deal on Aussie Angels, I'll just get you to sign a letter confirming we'll be entitled to an allocation up to that amount. I'll send that you shortly"
Instructions before sending them the document:
Make a copy of that document, then edit the details for that company & sign your name. For clarity, everything you need to edit is highlighted in yellow.
Send them the document to sign
Checklist:
Has the founder(s) agreed to give you an allocation of at least $100k?
Have they signed & returned the Allocation Agreement?
Step 4 - Submit a new deal in the portal
Next, you should add the startup into your portal so you can start working on it. This step is not a commitment to invest or lead the deal. It's simply a first step to start a draft note. It will also let Aussie Angels know you're going to work on this deal (which is helpful for us to manage the pipeline). Once you submit, the deal will show up in your deals list and you come back to work on it anytime.
Checklist:
Have you started the New Deal form?
Have you uploaded the pitch deck?
Have you uploaded the Allocation Agreement, either when you completed the Deal form, or via email (hello@aussieangels.com)?
Step 5 - Complete the Deal Note
You'll see the deal show up in your 'My Draft Deals' list, click on it to edit the details. You may find it helpful to review a few deal notes before getting started on yours, so make sure you read this guide:
Guide: How to Write a Good Deal Note
Use this deal note template to guide you on what to include in each section:
Checklist:
Have you read the Deal Note Guide and reviewed examples?
Have you completed all of the fields in the deal note form?
Have you gotten a 2 minute video from the founder introducing themselves & uploaded it (YouTube unlisted)?
Have you double checked each field is correct?
Have you checked your language against the language rules?
Have you uploaded all necessary documents for us to review: Term Sheet, Subscription Agreement, Pitch deck, Shareholders agreement, constitution & Allocation Agreement?
Have you submitted the deal for review?
Step 6 - Arrange a Q&A session with the founder (recommended)
Once your deal is approved to go live, it's a great idea to set up a virtual AMA with the founder so that investors who are considering investing can meet the founder and ask questions.
How to run a good Founder Q&A Session
Checklist:
Have you set up the webinar/ meeting?
Have you invited all of the investors in your syndicate to join?
Have you submitted your investment amount on the platform?
Step 7 - Introduce the Aussie Angels team to the founder (for deal closing)
Once your deal is live and you've started inviting investors, you'll need to introduce us to the founder so that we can get started on our review and closing process. We will review the company's documents to ensure the terms match what's included in the deal note, and there's isn't anything substantially adversarial for investors.
We recommend you don't confirm an exact amount with the founder, we will confirm the final amount with the founder once all investor funds are in the bank.
Template email you can use for the introduction, please cc thomas@aussieangels.com:
Subject: Intro X_FOUNDER_X (X_STARTUP_DEAL_X) <> Thomas (Aussie Angels) for closing steps
X_FOUNDER_X, meet Thomas (cc'd), who will be your main contact from this point forward around the closing & signing of the deal.
The deal is now closed, with the allocation filled - Thomas will confirm the final exact number with you.
Next steps from here are:
finalise the subscription agreement for signing between us (reminder the Limitation of Liability clause will need to be included in the version we sign), please send this to Thomas once you have the final version
we'll verify all of the investors and collect funds
confirm bank accounts for X_DEAL_X & make the transfer
Thomas I'll let you take it from here. Please keep me cc'd.
Checklist:
Have you introduced the founder to our team using the template above?
Step 8 - Follow up with any investors who are lagging on closing actions
In order to finalise the deal, all investors must get verified, sign their investment schedule, and transfer funds (we call these 'closing actions'). Most investors complete these actions by following the prompts provided by the platform. However, sometimes there are a couple investors who need to be nudged by you as the lead.
Checklist:
Have all investors completed their closing actions?