B Business Angel Syndicates Stefano Bonini and Mathias Awuni School of Business at Stevens Institute of Technology, Hoboken, NJ, USA Synonyms Business Angel Syndicates; Business Angels; New Venture Financing; Startups; Syndication Definition/Description A review of angel investor practices shows a shift towards more collaborative decision-making, quasi-formalization of processes, and professional- ization in investment approach and practice. More and more angels are investing in groups or teams loosely described as “Business Angel (BA) syndicates.” Syndicate members collaborate in deal sourcing, due diligence, and portfolio man- agement. A BA syndicate typically defines various roles for its members to ensure that both human and financial resources are optimally deployed. Depending on the size and investment objectives of the syndicate, members can be assigned the role of syndicate manager, legal advisor, and portfolio manager among others. Current empirical evidence shows that BA syndicates unlock a higher financ- ing capacity for angels, thus making it possible for them to commit more funds to portfolio companies. The increased financial resources also allow angel investors to support their portfolio companies far- ther along their lifecycle than was traditionally thought possible. Although angels are under no obligation to commit fixed proportions of the equity stake in any particular portfolio company, the syndicate typically has guidelines on how much individual angels can commit to realize the total equity stake taken by the group. Syndicates adopt governance and control structures to address moral hazard concerns. Syndicate members typically have different backgrounds and experiences, enabling them to select better quality new ventures, and to offer better post-fundraising support and mentoring to their portfolio companies. These developments along with changes in regulations and the emergence of new social networking tech- nologies challenge the established body of knowl- edge on angel investing as we know it. The evidence puts a spotlight on the erstwhile popular view that angel investors and institutional venture capitalist investors are complements rather than dynamic substitutes. The increased financing power that accrues to angel investors through syn- dication allows them to hold on to portfolio com- panies rather along their lifecycle, thus, startups funded by these angels may never “graduate” to seek/secure venture capital backing. Instead, they are locked in the ecosystem built by the angels backing them till they exit. Policymakers are taking notice of the shift toward syndication in angel investing. Tax credits and other interventions to incentivize early-stage financing are beginning to © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2024 D. Cumming, B. Hammer (eds.), The Palgrave Encyclopedia of Private Equity , https://doi.org/10.1007/978-3-030-38738-9_118-1