How to get CSC Upshot in your syndicate
We recently announced that CSC Upshot, a new venture capital firm, has raised $400M to invest in syndicates. This is how syndicates can access this capital.
How CSC Upshot and other funds work
CSC Upshot works like existing funds Maiden Lane and the Select Funds, which have been investing in syndicates for over a year. CSC Upshot typically invests $200K per deal, Maiden Lane invests $50K and the Select Funds invest $25K (figures approximate).
These funds invest in syndicates just like any other backer. Syndicates can accept or decline money from these funds. Syndicates earn carry on investments by these funds. And syndicates can save room for individual investors in their deals.
What this means for syndicates
First, these funds let syndicates close larger deals, faster.
Second, these funds let syndicates do more private deals that are visible only to backers of the syndicate, instead of all investors on AngelList. These funds make large investments, so the deal doesn’t need to be opened up to all investors to reach its target. Syndicates can always hide private deals from these funds as well.
What the funds look for in deals
These funds will provide reliable, ongoing capital to syndicates who do high-quality deals that meet these criteria:
- Technology companies. The company must be a technology business with the potential of achieving a venture return. No content, consumer packaged goods, gaming or pure e-commerce businesses.
- Notable co-investors. For leads without a strong track record, the deal should have a notable co-investor who is making a significant investment.
- Skin in the game. The lead should make a significant investment alongside the syndicate. It also helps if some of the lead’s colleagues are investing in the syndicate, so her reputation is on the line.
How to access this capital
First, you can submit your deals as you normally do (e.g. at https://angel.co/deal) and the funds will review it. The funds have signed NDAs with respect to any information you submit.
Second, if you would like these funds to commit to a deal before you negotiate with the company, you can send information about the business to firstname.lastname@example.org. The funds will respond within 72 hours.
Finally, we are testing a feature where these funds will agree to invest a set amount in your next deal, with no option for the fund to opt out, once you have established a track record of good investments. If you continue to make good investments, the funds will keep committing to your next deal in advance. Syndicates that qualify for this feature will be contacted.
Originally published at blog.angel.co on November 10, 2015.