Cal-X Stars Business Accelerator, operated by Howard Leonhardt and HealthiosXchange (H/X) equity crowdfunding platform, have announced a new investment vehicle, the “Champions Program”, and has accepted its first Lead Syndicator into the program: Santa Monica, Calif.-based Leonhardt Ventures’ Cal-X Stars Business Accelerator of cardiovascular and social-good-impact companies.
In their role as a ‘Lead Syndicate’ investor in the Champions Program, Cal-X is inviting its network of other Accredited angel investors to register with H/X and become Syndicate investors, who agree to pay ‘Carry’ for the Lead Syndicate investor’s access, governance and expertise in managing the Syndicate designated for investment in multiple companies. Cal-X manages the Syndicate and provides ongoing oversight of the Syndicate’s investment. Lead’s ‘Carry’ is collected upon a successful exit.
Of note: H/X does not receive a Carry. Instead, as a FINRA-regulated broker/dealer, H/X charges a one-time Success fee on the capital raised by a Syndicate, thereby allowing all the profits to be distributed to the investors.
“There are several important benefits of syndicating deals for both the Lead investors and the Syndicate investors,” said Scott Jordan, CEO of HealthiosXchange. “For the Syndicate investors, they get the benefit of the Lead investor’s deal flow, governance, and savvy in picking and managing investments, and they have the opportunity to invest less than the startup’s minimum.”
“For Lead investors,” Jordan added, “they gain access to larger amounts of capital to invest in emerging companies, as well as access to more deals in those companies with higher minimum commitments.”