Phil Nadel. He’s the co-founder and managing director of Barbara Corcoran Venture Partners, one of the largest and most active AngelList syndicates where investors can invest alongside him and Barbara on the same terms in promising high growth startups.
Famous Five:
Favorite Book? – The Lean Startup What CEO do you follow? – Elon Musk Favorite online tool? — Laughly How many hours of sleep do you get?— 7.5 If you could let your 20-year old self, know one thing, what would it be? – “Savor the moment, be in the moment”
Time Stamped Show Notes:
00:55 – Nathan introduces Phil to the show 01:24 – Barbara and Phil believe in the syndicate model 01:32 – It is a great opportunity for investors who would like to invest but don’t have a lot of money to put into each deal 01:49 – Barbara Corcoran Venture Partners on AngelList 02:08 – The syndicate was launched 3 years ago 02:16 – They have syndicated 38 deals 02:34 – Barn and Willow is a company they’ve recently syndicated 02:51 – Barn and Willow deal with window treatments 03:18 – They have a direct manufacturing supply chain 03:24 – It’s an innovative company 03:45 – The companies that Barbara invests on Shark Tank are separate from the companies in the syndicate 04:05 – The value of doing the syndicate is the deal flow that Barbara gets from her exposure in Shark Tank 04:20 – Each of the syndicate backers have the option to opt in or opt out of any investments 04:33 – The most likely exit scenario is an acquisition and that’s how an investor makes money 04:47 – IPO is also another route 04:53 – There was no exit yet from the syndicate portfolio 05:38 – There is paperwork in backing a syndicate 05:45 – The AngelList platform is handling all the investor details 05:51 – The structure of the deal can have a few different formats 06:04 – It’s either a convertible note that converts into equity or straight equity 06:30 – All backers are combined into 1 entity 06:56 – The LLC is managed by an independent third party company called Assure Fund Management 07:05 – Assure will consult the syndicate if there will be a major decision 07:40 – The AngelList is managing the risks for the syndicate 08:00 – The syndicate has put in $7.5M 08:28 – The syndicate is very true to Barbara’s mission 08:44 – Barbara wants people to invest with her, share their ideas with her, and bring their knowledge 08:56 – “Our backers are fantastic in terms of their networks” 09:38 – With a VC, what you have is strictly financial investors 10:40 – People love Barbara 11:15 – The deals are only available to accredited investors 11:23 – To be an accredited investor, you need to meet some of the criteria including net worth or income 12:00 – The syndicate is very clear that there is a chance of losing money for each investment 12:06 – The idea is to build a portfolio 12:37 – Phil has been to different platforms like FundersClub and OurCrowd 12:53 – The reason why Phil and Barbara chose AngelList 13:35 – The picture behind Phil was a picture frame from one of their portfolio companies called Meural 13:54 – They have thousands of art pieces from different museums around the world 14:32 – It retails from $600 15:27 – The syndicate does equity and note and only invests in post-revenue companies 15:43 – At least $15-20K a month in revenue 15:52 – “We are focused on companies that are capital efficient” 17:50 – The Famous Five
3 Key Points:
Syndicates is a great option for small investors and it will help them get into the investing game. Investors need to be responsible with their investments—meaning research the deal and own their decisions and the consequences of saying yea or nay. Savor the moments in life and be IN the moment.
Resources Mentioned:
The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences Klipfolio – Track your business performance across all departments for FREE Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books Show Notes provided by Mallard Creatives