Syndicated investments make it easier for investors to manage risk and acquire a more diversified portfolio. Syndicates are also an excellent way for startups aiming to acquire larger investments.
Since early 2018 EstBAN has been putting together syndicated investments into early stage companies. Syndicate refers to a co-investment by several investors, represented by one person – a so-called lead investor.
Since 2018 there are 13 unique companies in EstBAN Syndicate Portfolio. Sum invested with several rounds into those companies already exceeds 3M€. Read more about the EstBAN Syndicate portfolio companies below.
GuestJoy is a complete guest experience platform that provides the exact information to your guests at the right time from one place. GuestJoy’s innovative way of addressing this problem and helping hoteliers solve it has won the company several awards, including being named the Top Estonian Early Stage Start-up by the ESTBAN Angel Investment Program in 2017.
Fractory is a cloud manufacturing company connecting engineers to production capacity around the world through an automated platform. Their mission is to streamline the procurement process by eliminating all the unnecessary steps. Gathering data about production capabilities, manufacturing times, prices and feeding it to the system is what makes this possible.
Guava HR- s an internal communication and engagement tool for companies where frontline workers make up a substantial part of the workforce. It combines social and organisational information feeds and spices them up with employee engagement drivers to create one engaging communication channel for the whole company. Guava plans on using the investment for expanding to the UK and hiring new talent to support marketing and development goals.
VideoCV is a recruitment platform that’s refining the hiring process to attract highly sought after talent in the market by connecting the applicants to hiring companies via video screening. VideoCV has spent time in Starta Accelerator in New York City.
Zelos – team management app for goal-oriented for teams and communities, that helps to manage volunteers during large events and is a graduate of the recent Startup Wise Guys acceleration program.
Jeff is a personalised financial comparison service that bridges the gap between lenders and consumers. Jeff’s solution gathers a wide range of alternative data from consumers under the same roof, builds alternative credit scores, and ultimately enables access to financial services and a range of other benefits for Asia’s 1 billion unbanked.
TranslateWise is SaaS to provide user-friendly and multilingual customer support at any website that is visited by non-native customers. Their mission is to help businesses connect with their customers better by eliminating any language-related obstacles on their customer care journey.
ATOM Mobility is a provider of a vehicle sharing platform development services based in Riga, Latvia. The company offers an electric scooter sharing platform along with software development with features such as real-time tracking and control of fleet, heat map and analytics, thus enabling customers to book electric scooters and entrepreneurs to launch their own vehicle sharing platforms.
Adact enables agencies to create online interactive marketing campaigns without writing a single line of code. Adact aims to be the go-to software and trailblazer for interactive marketing and enable to cover the entire marketing lifecycle for an agency or an individual brand. Adact has won the main prize of Latitude59, won best B2B startup in Techchill, won sTARTUp Day 2021 CoCoon syndicate and are SWG alumni.
Efenco is a deep tech company, that is developing catalysts for the energy industry to save on fuel and emissions by using unique nano-electronics.
Sharewell is a platform that gives real-human insights for UX/UI design and benefits people and companies. This tool is essential for all professionals who want to improve their products and be more user-friendly. Sharewell is also a great opportunity for people to earn online by being the ones that provide feedback.
Mentornaut is an ed-tech startup, that is developing an online learning platform to help bridge knowledge gaps and support students in achieving their maximum potential in school. Their mission is to provide students with more personalized learning at the local level to help them to reach their maximum academic potential.
VSight UAB is a technology provider company that develops and markets the leading Augmented Reality Remote Assistance software platform, “VSight Remote” for enterprises. VSight has already developed the concept of Augmented Reality-based Remote Assistance further, by enriching this complete collaboration and knowledge-sharing platform with effective AR tools and file-sharing features such as a 3D object, PDF, or image.
The lead investor takes an extra mile
Angel syndicate investment bridges the gap before VC investment. Syndicated investments could reach up to €500k. To make the syndicated angel investment happen, there needs to be a lead angel to carry the weight and lead the wolf pack. EstBAN has a group of lead investors who are willing to go another mile.
Understanding the product and market
- How big is the Serviceable Obtainable Market and is it well above €10M?
- Which other market segments can be served after obtaining the SOM? It’s better to obtain 30% of the very narrow niche than 0,0003 % of the huge market.
Meeting the team
- Meet all the founders and understand how the team works.
- Check the cap-table
- Do the founders have reverse vesting?
- Is there option pool for the employees agreed?
Conducting due diligence (see the DD checklist)
- Conducting due diligence it is easy to exhaust the startup with too deep of a DD at this phase, but still there are some things that are must-haves.
- Shareholders or founders agreement with founder vesting terms
- IP rights
- Bookkeeping and finances
- Articles of association
Closing the deal with the best terms for the syndicate members
- Negotiating the (agreement) terms with the founders
- Making sure the cap table is not spoiled with tens of small angel investors- those should be hidden behind one SPV.
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