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How to syndicate a deal on Odin
How to syndicate a deal on Odin

A short guide for angel syndicates, investor communities and fund managers using Odin to invest in a startup

Paddy avatar
Written by Paddy
Updated over a week ago

In this user guide, you should have everything you need to launch and run your first deal on Odin!

On this page, we provide a top-line overview. You can also search the help centre for additional information on specific steps, the legal structure, FAQ's, etc.

If you can't find what you're looking for, just hit the chat logo and you can search for information, or drop us a message.


The process to launch and fund a deal with Odin can be broken into three steps:

  • Syndicate & Deal Creation;

  • Raising;

  • Completion

End to end, this process typically takes about 2 weeks.
However, it depends how fast the investee company completes KYB and how quickly your investors complete KYC/AML checks, commit and wire funds.
The fastest we can do a deal is about 3 days, and we can typically get a deal live in 24 - 72 hours.


1. Syndicate & Deal Creation - 24 to 72 hours

  1. Syndicate Creation:
    The first thing you need to set up your syndicate.
    If you don't know anything about what a syndicate is, start here, and then come back to this page later.

    Syndicate creation is pretty straightforward. Log in to the Odin platform (or sign up), and hit "create deal" (top-right), then get started.

    You'll be asked to choose your syndicate's name, and then select your pricing tier ("branded" or "standard").
    If you choose the "branded" tier, you can create your own SPV (special purpose vehicle) and pick what it's called. If you select "standard", you'll use Odin's existing SPV, Odin Investments Limited.

    The SPV is the legal entity that will house your investments. You can re-use this entity for other deals you do in future, so if you select "branded", pick a name that you want to keep.
    You can also add your colleagues / co-leads at this stage.

  2. Deal Creation
    Next you'll need to submit all the information about the company, share the investment memo and other materials you'd like investors to have access to, add the deal terms and specify the carried interest & fees you'd like to charge. Once that's all done, you can submit the deal!

    • You need to provide the term sheet and/or other relevant legal documents for the investment instrument you are purchasing (Advanced Subscription Agreement, SAFE Note, Share Purchase Agreement, etc. as applicable). If you want to invest via an Advanced Subscription Agreement, Odin has a free copy that you can fill as appropriate.

    • We automatically generate all the legal documents covering the creation of the SPV (special purpose vehicle), including the agreement between the Syndicate Lead, the Investors and Odin, the creation and management of the SPV, voting, carried interest etc.


What happens next?

We’ll review the deal, and also reach out to the investee company to collect some basic KYB information and confirm their bank account details (so we can wire funds afterwards).

Typically the deal review process takes 48 hours, but it can take longer if the investee company does not provide us with the information we need - so it's good for you to prompt them, to nudge them along.

If everything looks good to go, we’ll email you asking for confirmation to put the deal live. At this point you’re able to share it via link and begin collecting investments.


2. Raising - at your own pace

Once the deal is live, you can start collecting funds from investors. This is a really straightforward process. You'll have access to a deal dashboard, which will look something like this:

You invite your investors to the deal via a link. Investors create an account (if they don’t have one), go through KYC/AML, sign and wire funds by bank transfer (global, multi-currency). All banking and payment flows are handled by Odin.

On deal invites: You can select different carried interest and fees for different investors if you want to. You then simply share the invite link however you prefer; by email, SMS, WhatsApp, whatever works. Your investors click the link and begin the investment process.

If it's their first time investing, they'll need to complete a few steps:

  1. Account creation

  2. KYC & AML checks

  3. Investor appropriateness (sophistication) assessment

  4. Commit to the deal

  5. Wire funds by bank transfer to our account (global, multi-currency).
    Depending on their location, the timeline will vary, but we expect 99% of funds to arrive within 5 days of the transfer being initiated.

Before they start investing, you can send them our investor guide, so that they can familiarise themselves with Odin and the process.

Each time an investment lands, you'll get an email notification. In your dashboard, you'll be able to track the total amount committed and the amount you've received. You can also nudge investors and email everyone from the dashboard.


3. Completion - within 72 hours

Once all the funds are in and you are ready to close the deal, you notify the account manager by dropping us a message on Intercom. The closing process is as follows:

  1. Reconcile
    Investment amounts are verified and finalised in line with our fee calculation & billing process.

  2. Sign
    Once funds are reconciled, the Odin operations team review all documentation and sign the investee company documents under the syndicate lead’s instruction. The syndicate lead does not sign these documents - Odin manages this.

  3. Wire Funds
    Send to investee company, net of any fees.

  4. Close
    The deal is closed on the platform.

  5. Complete
    Investors are issued finalised investment documents, including a certificate of beneficial ownership showing the assets they hold via the SPV. S/EIS certificates (for UK investors) and Tax documentation (for US investors) are issued later on.

    • S/EIS: We send the investee company the details they need for their S/EIS application with HMRC. Once we have received the S/EIS2 UIR and a signed version of the S/EIS3 form with names and amounts blank, we will circulate these to the underlying investors.

    • US Tax Documents: Once per year, we provide FATCA and PFIC documentation to US investors, so that they may make a Qualified Electing Fund (QEF) election and report annual earnings under the QEF regime (versus being subject to the Excess Distribution Regime, which incurs additional taxation). More details here.


After the deal is complete

Once the deal is complete, you will be able to log in and see details on who invested, how much, carry payable, etc. Your investors, likewise, can log in, view their portfolio, download deal documents, etc.

Reporting

In line with whatever has been agreed during the syndication process, you will be expected to send regular updates (usually monthly or quarterly) to investors. This can be done quickly and easily in-platform, by sending an email to all investors in a deal.



Top Tips for Success

1. Secure most of your commitments before launching a deal:

It sounds obvious, but ideally you should have a confirmed list of hard and soft commitments prior to launching a deal. This helps because:

  • We have found rounds that have launched with <60% of investors confirmed can drag on, leading to investors changing their minds on whether to invest. investors are also more likely to end up at different stages of the investment process. For example, one investor might be doing more due diligence, while another is asking for proof of investment documents. All of this adds up to more work for the syndicate lead.

  • It allows you to be clearer with the investee company/founder(s) about your commitment amount at the outset, which is important in competitive rounds.

Overall, it’s best to launch a deal with most of your investors secured, along with clear start and end dates for the round.

2. International deals: ask your Investors to set up a Wise or Revolut account:

If you are doing deals in currencies other than your investors’ home currency, we recommend asking your investors to open a Wise or Revolut account. International banking is tricky (US banks can be especially so).

Intermediaries can charge high fees. Payments can also be very slow. We’ve seen late payments result in investors missing deadlines and being unable to participate in a round.

If they wire using Wise or Revolut, funds will land in our account in 24 - 48 hours.

3. Nudge your investors

We send your investors automated reminders about where they are in the investment process and encourage them to complete their investment if they haven’t. But reminders work best coming from someone they know.

When your deal is live, it’s the responsibility of the syndicate lead to follow up with investors regularly and chase them for their commitments.

4. If it is your first time using Odin, book in a call with us before you launch a deal

If you are using Odin for the first time, we strongly recommend having a call with us.

We’ll explain how we work, take you through the investor UX and answer any questions you may have. You can arrange a call by dropping us a message (chat button in the bottom right of your screen).

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