FAQ: SYNC Angel Network

Everything you need to know about SYNC Angel Network

What is an “angel network”?

Angel network is a community of angels (individual investors) that would collectively invest in a startup as a single entity called a “syndication”. In SYNC, these Angels are called “Patrons”

Who are the Patrons in SYNC network?

SYNC by DS/X Ventures is now comprised of around 25 carefully selected high-net-worth business individuals that has experience in startups and angel investing. Our investors have diverse backgrounds, but typically is a businessperson, startup founder, executives and people in leadership position.

As a SYNC Patron, how does the syndicate investment process works?

You will be added into a closed group where our team will share information about startups that are fundraising. These startups will have to go through a filtering process conducted by our investment team before presented to you. You will then can either choose whether to participate to invest in this company or not, our team will reach out to you on this. Please conduct your own research before making an investment in the startups, our team will do our best to provide support for your research process.

Should you choose to invest and decide how much money you’re willing to invest, our team will follow up with documentations and paperwork for the investment.

What is the minimum amount of investment I can commit in each company?

Minimum investment per company is US$5000

So, I will have equity in the companies I’m investing in?

Not quite. The syndication investment model uses Special Purpose Vehicles (SPV) in Singapore to conduct the investment. As a Patron, you will have equity in the SPV, the SPV will in turn become a shareholder in the company. Read more about SPV Angel Investing here.

How long can I get my money back?

Startup investing is a long term, high risk, high gain type of investment. Liquidity can be as long as 8-10 years, although in a very rare case it can also be achieved in less than 4 years.

Can I get my friends to join as a Patron?

A new Patron can only be added via reference from existing Super Patrons (Patrons with more than $100k of total investment). Even then, we will conduct a basic KYC for all Patrons before joining.

What is the difference between becoming a Patron or becoming an LP at DS/X Ventures?

Simply said, if you’re an LP, we will conduct all the proper investment memo, due diligence, paperwork and admin stuff, because our Investment Committee (IC) makes the decision which companies to invest. The minimum check size to join DS/X Ventures as an LP is US$200k for individuals and US$500k as institutions.

As a Patron, you will decide which companies you want to invest, and we strongly suggest you conduct your own research and due diligence. Our investment team will provide basic due diligence and research, but ultimately the decision to invest is in the Patron’s hand. Also, as a Patron, you pay a slightly higher Management Fee.

So once I’m accepted as a Patron, I’ll always be a Patron?

Not quite. A Patron will be removed after failing to reach minimum of $25,000 investment participation within one year period.

What are the fees for becoming a Patron?

No fee at all. We want you to focus on investing in the best startups we have to offer.

What are the fees associated with investing via SYNC?

For each investment SPV, DSX Ventures Management will charge 3% p.a. management fee in the first 2 years, and 2% p.a. for the rest of the SPV life time. Additionally, DSX Ventures Management will also charge 20% from investment carry fee (carried interest).