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In Episode 97, we welcome one of the most successful syndicate leads in angel investing, Phil Nadel (he also happens to be Meb\u2019s favorite syndicate lead on Angel List).\nAfter Phil runs us through his background, Meb asks about Phil\u2019s group, Forefront Venture Partners and its connection to Angel List. Phil gives us the run-through, noting how when Angel List announced its syndicate feature, he felt it was a great way for smaller angels to get involved, so he signed up. Today, he\u2019s one of the largest/most active leads on Angel List.\nMeb asks how the syndicate process works. Phil tells us that accredited investors can register and sign up with syndicate leads like Forefront. This enables them to see the deal-flow of the lead, and invest on same terms. There\u2019s no management fee, instead, investors pay a 20% carry on the backend if there\u2019s a profit. You can invest small amounts \u2013 sometimes as little as $1K, yet you get all the same due diligence and legal review as a big investor.\nMeb notes how syndicates have removed so much of the hassle and made the entire process simpler \u2013 which is both good and bad.\nNext, Meb asks about Phil\u2019s syndicate and the average investor. Phil tells us the average investment in a company is roughly $300K. And they\u2019ve invested in about 44 deals since inception. The average investment per person is around $4-5K. This dovetails into a conversation about how to approach angel investments. Phil tells us a \u201cportfolio\u201d approach is important. He\u2019s against picking only a few companies, as most will go out of business. He tells us \u201cif you try to pick winners, and you only invest in a handful of companies, odds are you\u2019re going to lose your money.\u201d Phil recommends picking companies diversified by industry and stage.\nThe conversation then drifts into timing. Do you invest all at once, or drip in over time? Phil gives us his thoughts. Then it\u2019s Phil\u2019s rule of thumb about success rates. He tells us that out of 100 investments, 70 will go out of business. About 20-30 will stagnate, or exit as a single to a triple. Maybe one or two will turn out to be home runs.\nMeb asks how Phil finds his deals. Turns out, lots of referrals. The guys then dive into what Phil looks for in a company \u2013 it includes post-revenues and capital efficiency. But he\u2019s industry and geography-agnostic. His sweet spot is a valuation in the $5-12M range.\nNext up, the guys discuss KPIs, or \u201cKey Performance Indicators.\u201d Phil discusses burn and runway, then customer acquisition cost and lifetime value. Phil wants to see that the company knows how to acquire and monetize customers in an efficient and scalable way. He then also looks at margins.\nThere\u2019s plenty more in this angel-themed episode: the extent of Phil\u2019s involvement in a startup after funding\u2026 the critical role that updates from founders play in the startup process\u2026 some \u201cbad investor behavior\u201d which Phil has seen over the years\u2026 what Phil learned from Barbara Corcoran of the show, Sharktank\u2026 and of course, Phil\u2019s most memorable trade.\xa0\nWhat are the details? Find out in Episode 97.\nLearn more about your ad choices. Visit megaphone.fm/adchoices