At the 2020 Annual General Meeting, it was decided to start establishing SPVs to encourage syndication for EstBAN angels and to continue collaboration with startup events in the region. First syndicates of 2020 have been announced in collaboration with sTARTUp Day in January (full), Ajujaht and Latitude59 both this Spring.
EstBAN now unites 145 angels and growing, locals and from abroad, and there are more and more investment opportunities shared daily. A group of active angels has been established as lead angels who are up for leading the rounds, gathering others to join the syndicates, help out with due diligence and other necessary activities to support the deal flow and developing the EstBAN angel network.
Therefore EstBAN Annual General Meeting has decided to start facilitating SPVs (Special Purpose Vehicles) to support and encourage syndication for our members. SPVs will be established by the Lead Investor and EstBAN CEO who will also be serving as its board members. An SPV will be established per deal and will be used to collect the tickets and to invest into the startup. The deals put together are in collaboration but not limited to startup events and initiatives within the Estonian startup ecosystem. Members are encouraged to bring opportunities to the table, share them with others and spark a discussion.
First syndicates have been already filled and Jeff App was the first to receive the investment in collaboration with sTARTUp Day 2020. Next ones to come are to one company participating in Ajujaht and with the technology festival Latitude59.
The ticket size is decided case by case, with the carry percentage to compensate the lead angel(s)’ hard work and dedication working hand in hand with the company to make sure each party gets the best outcome possible.
Depending on the case and whether the investment target will be chosen from the deal flow of a flagship startup event, the suitable company will be selected by the Lead Investor. Due Diligence process will involve syndicate members, especially those who are willing to offer time and relevant know-how to assess the companies under scrutiny.
The calls to join the syndicates will be shared within the group of Estonian Business Angels Network and investors vetted by the Lead and EstBAN’s representatives.
We hope that taking the bull by its horns and facilitating the deals will make EstBAN angel syndicates more agile, more efficient and beneficial for the startups raising funding.
For more information about the syndicates, please contact Anu Oks, CEO of EstBAN, via anu@estban.ee.
