Forget everything you thought you knew about venture capital. The fancy offices, the partner meetings, the whole song and dance. The skills that made VCs successful yesterday won't cut it in 2027. I'm calling it now: syndicate investing is the new kingmaker.
I’ve been in Silicon Valley for a long time. I’ve built companies, sold them, and now I spend my days investing in the next generation of builders. I’ve written over 200 angel checks into companies like Anthropic, OpenAI, and Scale AI. I’ve seen the game from every single angle. And from where I’m sitting, the entire landscape is shifting under our feet.
The old model is broken. It’s too slow, too insular, and frankly, too arrogant. The future belongs to those who can build and leverage communities. It belongs to the connectors, the operators, the people who can bring more than just money to the table. It belongs to the syndicate leads.
The Writing on the Wall
Let’s be real. For decades, the venture capital model has been pretty straightforward. A handful of firms on Sand Hill Road control the flow of capital. They raise massive funds from institutions, take a 2% management fee, and a 20% carry on the profits. Founders line up to pitch them, hoping to get a sliver of that capital.
But that world is disappearing. Why? A few reasons.
First, information is democratized. You don’t need to be in a specific zip code to find the best deals anymore. The next billion-dollar company is just as likely to come from Istanbul as it is from Palo Alto. I’ve seen it myself. Some of my best investments are in founders I’ve never met in person.
Second, talent is distributed. The pandemic proved that you can build a world-class team remotely. My last company, RemoteTeam, was built on this very premise before we were acquired by Gusto. When your talent pool is global, your investor base should be too.
Third, and most importantly, founders are demanding more. They don’t just want a check. They want a partner. They want an army of supporters who can help them with hiring, product, distribution, and everything in between. A single VC partner, no matter how smart, can’t compete with a syndicate of 50 experts.
What is a Syndicate, Anyway?
Let’s break it down. A syndicate is simply a group of investors who pool their capital to invest in a startup. It’s led by a “syndicate lead” who finds the deal, does the diligence, and negotiates the terms. The lead then invites other investors (the “backers”) to participate in the deal.
The lead is compensated with “carry,” which is a share of the profits from the investment. This is typically 15-25%. The backers get to invest in deals they otherwise wouldn’t have access to, and they get to do it alongside someone they trust.
It’s a win-win-win.
For Founders: They get a check, yes, but they also get a dedicated group of evangelists. Imagine having 50 new recruiters, 50 new salespeople, and 50 new brand ambassadors overnight. That’s the power of a syndicate. When we were raising for MovieLaLa (acquired by Gfycat), we brought in a small syndicate of entertainment industry insiders. Their connections were more valuable than any amount of capital.
For Backers: They get access to high-quality, vetted deal flow. Most people don’t have the time or network to find the next big thing. By backing a syndicate lead, they can build a portfolio of startup investments with much lower minimums and diversify their risk.
For Leads: It’s a way to punch above your weight. You can write a much larger check than you could on your own, which gets you a bigger allocation and more influence with the company. It also allows you to build a track record and a brand as an investor. It’s how I got my start in angel investing.
Building a Moat with Your Syndicate
In 2027, the most successful VCs won’t be the ones with the biggest funds. They will be the ones who have built the strongest, most engaged syndicates. Their syndicate will be their moat.
Think about it. As a syndicate lead, you’re not just an investor. You’re a community builder. You’re a curator. You’re a trusted source of signal in a very noisy world. That’s a defensible position.
So how do you build a great syndicate? It’s not just about having a big Rolodex. It’s about building trust and providing value.
Here’s what I’ve learned:
Develop a Thesis: You can’t be everything to everyone. What are you an expert in? What’s your unique insight? My focus is on AI and the future of work because that’s where I’ve spent my career. My backers know that when I bring them a deal, it’s in a space I understand deeply.
Be Transparent: Your backers are your partners. You need to treat them as such. Share your diligence memos. Explain why you’re excited about a deal, but also be upfront about the risks. The more your backers understand your thinking, the more they will trust you.
Add Value Post-Investment: The work doesn’t stop once the check is wired. The best syndicate leads are active partners to their founders. They make introductions, help with strategy, and are the first call when things go wrong. This is how you build a reputation that attracts the best founders.
Master the Cap Table: This is the nitty-gritty, but it’s so important. You need to understand how your syndicate’s investment will affect the company’s capitalization table. You need to be able to explain pro-rata rights, dilution, and liquidation preferences to your backers. It’s not the sexiest part of the job, but it’s where you can really protect your investors and yourself.
The Future is Collaborative
The shift to syndicate investing is part of a much larger trend. The future of business is collaborative, not zero-sum. The lone wolf investor is a dying breed. The future belongs to the connectors, the community builders, the people who understand that we are all better off when we work together.
I’m not saying that traditional VC is going to disappear overnight. But I am saying that the firms that fail to adapt will be left behind. By 2027, if you’re a VC and you don’t have a syndicate strategy, you’re playing a different game. And it’s a losing one.
The tools are there. The platforms exist. The only thing missing is the mindset shift. Stop thinking like a gatekeeper and start thinking like a community builder. Your portfolio, and your career, will thank you for it.
Frequently Asked Questions
What experience informs this perspective?
This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 200+ startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.
What's the most common pushback you get on this?
People often push back by citing exceptions or edge cases. And they're usually right that exceptions exist. But building a strategy around exceptions rather than patterns is a losing game for most founders.
How can I apply this thinking to my own situation?
Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.
How has this view evolved over time?
My thinking on most topics has changed significantly over the years. Early in my career, I held many conventional views that experience proved wrong. I try to update my beliefs when the evidence changes.