When equity is invested by more than one investor, the group investing on the same terms is called a syndicate. The process of syndication varies but often the lead investor works to round up the needed capital once a term sheet has been signed. Syndication happens among angels and between angel groups, between venture capital firms and between private equity firms, as well as in Initial Public Offerings and other public fundraising.
Not all lead investors are equally capable at leading a syndication. And, not all syndicates are equally compatible. Disagreements among syndicate members can be time consuming and expensive, and can even become destructive to a company if they get out of hand.