PAC Deal Flow
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Deal Flow
Synergy Sports Capital [April 16th, 2026]
Overview Financials Raise Amount $150M Fund — Minimum $1M minimum — PAC SPV Yes — [More details to come] Materials Capital Deck PAC Deal Flow Forum Recording PAC Deal Breakdown Contact
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Overview [High level overview of the company Financials Raise Amount $ Minimum $Minimum Check Size — PAC Minimum Check Size — PAC SPV Yes — [More details to come] No Materials Capital Deck PAC Deal Flow Forum PAC Deal Breakdown PAC Deal Flow Template
FAQ
Basics of Investing
What is investing?
Investing means putting money into something today so it can be worth more later. You are trading cash now for future value. The goal is to grow your money over time.
Example: You invest $50,000 into a company hoping it becomes much bigger.
Simple Math: If $50K turns into $150K → you made $100K profit
What is a return?
A return is how much money you make compared to what you put in. Investors often talk in “multiples” like 2x or 5x. Bigger multiples = bigger wins.
Example: You invest $25K and get back $100K
Simple Math: $100K ÷ $25K = 4x return
What is risk?
Risk is the chance you lose your money or don’t make what you expected. Higher return opportunities usually come with higher risk. In startups, losing your full investment is common.
Example: You invest in 10 startups → 6–8 may go to $0
Simple Math: If you invest $10K in each → you could lose $60K–$80K
Active vs Passive investing
Active investing means you help the company beyond just money. This could be through connections, brand, or strategy. Passive investing means you only provide capital and don’t contribute to growth.
Example: Active = You introduce the company to a major partner that drives revenue
Simple Math: Active: Your help leads to faster growth → $50K → $250K = 5x
Example: Passive = You invest but never interact again
Simple Math: Passive: $50K → $100K = 2x
Types of Deals
Startup investing
You invest in early companies trying to grow fast. These businesses may not make money yet but aim to become very large. Returns come from big exits, not small profits.
Example: Early investment in Uber
Simple Math: Own 1% → company sells for $100M → you get $1M
Small Business (SMB) investing
You invest in businesses already making money. These are usually more stable but don’t grow as big as startups. You often get paid from profits, not exits.
Example: Invest in a car wash making $200K/year
Simple Math: Invest $500K → earn $100K/year = 20% yearly return
PE investing
Private equity involves buying established companies, improving them, and selling them later for a profit. These companies usually already make money. The focus is on efficiency, growth, and scaling operations.
Example: A firm buys a company for $50M, grows it, and sells it for $100M
Simple Math: Buy at $50M → sell at $100M
Simple Math: Profit = $50M (2x return)
Fund investing
Fund investing means you give your money to a professional investor who decides where to invest it. You don’t pick individual deals. Your return depends on the overall performance of the fund.
Example: You invest in a venture fund that invests in 20 startups
Simple Math: You invest $100K, Fund returns 3x
Simple Math: You receive $300K (before fees)
Real Estate (RE) investing
Real estate investing means putting money into property to earn income or sell it later for a profit. Returns can come from rent (cash flow) and appreciation (value increase). It is generally more stable than startups.
Example: Buy a property and rent it out
Simple Math: Buy for $500K, Earn $40K/year rent → 8% annual return
Funds vs Direct investing
Direct investing means you invest into a company yourself. Fund investing means someone else invests your money across multiple deals. Direct gives more control, while funds give diversification.
Example: Direct = $50K into one startup
Simple Math: Direct: 1 deal → higher risk
Example: Fund = $50K spread across 20 startups
Simple Math: Fund: 20 deals → risk spread out
Types of Businesses
What is SaaS (Software as a Service)?
SaaS is software people pay for every month or year. These businesses are valuable because revenue repeats automatically. Growth comes from adding more users.
Example: Salesforce
Simple Math: 1,000 users × $50/month = $50K/month → $600K/year
What is CPG (Consumer Product Goods)?
CPG means physical products sold to customers. These rely on branding, shelf space, and distribution. They often cost more to scale than software.
Example: Liquid Death
Simple Math: Sell bottle for $3 → costs $1 to make → $2 gross profit per unit
What is a Service business?
A service business makes money by doing work for customers. Revenue depends on people and time, not just product. Growth can be slower because it requires more labor.
Example: Marketing agency or training facility
Simple Math: 10 clients × $5K/month = $50K/month revenue
What is a Marketplace?
A marketplace connects buyers and sellers and takes a fee from each transaction. Growth depends on getting both sides of the market. Strong marketplaces scale quickly once established.
Example: Uber connects drivers and riders
Simple Math: I$1M in transactions, 10% fee = $100K revenue
Venture Stages of Investing
Pre Seed / Seed
Very early stage with little or no revenue. You are betting mostly on the founders and idea. Risk is highest, but price is lowest.
Example: New app just launched
Simple Math: Invest $50K into $5M valuation → you own 1%
Series A
The company has traction and is growing. Investors are betting it can scale bigger. Risk is lower, but price is higher.
Example: Company doing $2M revenue
Simple math: Invest $100K into $20M valuation → you own 0.5%
Growth Stage
Growth-stage companies have proven their model and are scaling quickly. They typically have strong revenue and are focused on expansion. Risk is lower, but valuation is higher.
Example: Company growing from $5M to $20M revenue
Simple Math: Invest at $50M valuation, Exit at $200M, 4x return
Late Stage / IPO
Late-stage companies are close to being sold or going public. These investments are less risky but offer smaller returns compared to early-stage deals. Most of the growth has already happened.
Example: Company preparing for IPO
Simple Math: Invest at $500M valuation, Exit at $1B, 2x return
Investment Structures
What is a SAFE?
You invest now and get ownership later when the company sets a price. It often includes a “cap” or “discount” to reward early investors. You don’t know exact ownership yet.
Example: $50K SAFE with $10M cap
Simple math: If next round is $20M → you still convert at $10M → better deal
What is a convertible note?
A convertible note is a loan that turns into ownership later when the company raises a priced round. It usually includes a discount, valuation cap, interest, and a maturity date. These terms affect how much ownership you end up with.
Example: $100K note with 20% discount, $10M valuation cap
Simple math: New investors pay $1/share → you pay $0.80/share, You get more shares for the same $100K
What is priced round?
A priced round is when the company sets a clear valuation and you buy shares at that price. You know exactly what percentage you own. This is more transparent than early-stage deals.
Example: Company raises at $10M valuation
Simple Math: Invest $100K, $100K ÷ $10M = 1% ownership,
What is term sheet?
A term sheet outlines the key terms of the investment. It includes valuation, ownership, rights, and structure. It is not the final contract but sets the main deal terms.
Example: Document showing you’re investing $50K at a $5M valuation
Simple Math: $50K ÷ $5M = 1% ownership
What is Equity vs Debt?
Equity means you own part of the company. Debt means the company owes you money and must pay you back. Equity has more upside, debt has more protection.
Example: Equity = you own shares
Simple Math: Equity: $50K → $200K (4x)
Example: Debt = you get paid back with interest
Simple Math: Debt: $50K → $60K (fixed return)
What is a SPV?
An SPV is a group investment where multiple investors pool money into one deal. It allows smaller investors to access larger opportunities. The SPV acts as one investor on the cap table.
Example: 50 athletes invest together into one startup
Simple Math: 50 people × $10K = $500K total investment
Investing Into a Fund
What is a fund?
A fund is when you give money to professionals who invest it for you. You don’t pick the deals—they do. Your return depends on their performance.
Example: Investing in Sequoia Capital
Simple math: Invest $100K → fund returns 3x → you get $300K (before fees)
How funds make money
Funds make money through fees and profit sharing. They charge a management fee (usually ~2%) and take a share of profits (usually ~20%). This is called “carry.”
Example: Fund returns $1M profit
Simple Math: 20% carry = $200K to fund manager, $800k to investors
Pros of funds
Funds provide diversification and access to better deals. They require less time and effort from investors. You benefit from professional management.
Example: One fund invests in 20 companies
Simple Math: 1 winner returns 10x, Covers losses from other deals
Cons of funds
Funds give you less control and charge fees. Your money is locked up for a long time. You depend on the manager’s decisions.
Example: You can’t choose individual deals
Simple Math: 3x return – fees = lower net return
Valuation & Pricing
What is valuation?
Valuation is what the company is worth today. It determines how much ownership you get for your money. Higher valuation = smaller ownership.
Example: $50K into $5M company = 1%
Example:$50K into $10M company = 0.5%
What is a valuation cap?
A cap is the maximum price your investment converts at later. It protects you from paying too much if the company grows fast. Lower cap = better for you.
Example: $10M cap, company raises at $20M
Simple math: You invest as if it’s $10M, not $20M → you get 2x more ownership
What is a discount?
A discount gives you a cheaper price than new investors. It rewards you for investing early.
Example: 20% discount
Simple math: If new investors pay $1/share → you pay $0.80/share
What is ownership percentage?
Ownership percentage is how much of the company you own based on your investment. It determines how much you make when the company exits. Higher ownership = higher potential payout.
Example: You invest $50K into a $5M company
Simple math: $50K ÷ $5M = 1% ownership, Company sells for $100M → 1% = $1M return
Key Terms & Metrics
Revenue
Revenue is total money coming in before expenses. It shows demand but not profitability. Growth matters more than size early on.
Example: Company makes $1M/year
Simple math: 100 customers × $10K each = $1M revenue
Profit
Profit is the money left after all expenses are paid. It shows whether a business is actually making money. Many startups focus on growth instead of profit early on.
Example: Company makes $1M revenue and spends $800K
Simple Math: $1M – $800K = $200K profit
Burn Rate
Burn rate is how fast a company is spending money. It determines how long they can survive without new funding.
Example: Company spends $200K/month
Simple math: $2M in bank ÷ $200K/month = 10 months runway
What is dilution?
Dilution means your ownership % goes down as new investors come in. This is normal as companies raise more money. The goal is your smaller % is worth more.
Example: You own 1% → drops to 0.5%
Simple math: If company grows from $10M → $100M, your value still increases
What is pro rata?
Pro rata is your right to invest more in future rounds to keep your ownership percentage. It allows you to stay in strong deals as they grow. Without it, your ownership will shrink over time.
Example: You own 1% and want to keep it
Simple math: If company raises $10M → you invest $100K to maintain 1%
What is liquidation preference?
Liquidation preference determines who gets paid first when a company is sold or exits. Investors with this right get their money back (often before others) before profits are shared. This protects investors but can reduce what founders and smaller investors receive.
Example: An investor puts in $1M with a 1x liquidation preference, The company sells for $5M
Simple math: Investor gets first $1M back, Remaining $4M gets split among everyone else
What is anti-dilution?
Anti-dilution protects your investment if the company raises money later at a lower valuation. It adjusts your ownership so you don’t lose as much value. This is more common for larger investors.
Example: You invest at $10M valuation, next round is $5M
Simple math: Without protection: your value drops, With protection: your share price adjusts lower → you keep more ownership
What is tag-along?
Tag-along rights allow you to sell your shares if a major investor or founder sells theirs. This ensures you get the same deal and are not left behind. It protects smaller investors.
Example: Founder sells shares at $10/share
Simple math: You also sell at $10/share, Same price, same terms
What is runway?
Runway is how long a company can survive before it runs out of money. It depends on how much cash they have and how fast they spend it. Longer runway = more time to grow.
Example: Company has $2M in cash
Simple math: Burn = $200K/month, $2M ÷ $200K = 10 months runway
What is TAM/SAM/SOM?
TAM is the total market, SAM is the target market, and SOM is what the company can realistically capture. This shows how big the opportunity is. Larger markets allow for bigger outcomes.
Example: Fitness industry vs niche training app
Simple math: TAM = $100B, SAM = $10B, SOM = $500M
What is an exit?
An exit is how investors make money. This usually happens when the company is sold or goes public. Without an exit, there is no return.
Example: Company sells for $100M
Simple math: You own 1%, 1% × $100M = $1M payout
Risk & Returns
Upside
Upside is how big your investment can grow. In venture, a few big winners drive returns. You are looking for large outcomes.
Example: $25K → $250K
Simple math: 10x return
Downside
Downside is what you lose if things fail. In startups, this is often 100% of your investment. You must be comfortable with that risk.
Example: $50K → $0
Simple math: You lose full $50K
What is liquidity?
Liquidity is how easily you can turn your investment into cash. Private investments are usually illiquid, meaning your money is locked for years. Public stocks are more liquid.
Example: Startup vs public stock
Simple Math: Startup: 5–10 years to exit, Stock: can sell same day
What is time horizon?
Most private investments take 5–10 years. You usually cannot sell early. This is long-term capital.
Example: Invest today → exit in 7 years
Simple math: Bigger returns usually require more time
Portfolio Strategy
What is diversification?
Diversification means spreading money across multiple deals. This increases your chances of hitting a winner. One big win can cover many losses.
Example: 10 deals × $25K each = $250K total
Simple Math: 1 deal returns $250K → covers entire portfolio
What is Power Law?
Power law means a small number of investments generate most of the returns. Most deals fail or return small amounts. One big winner can make your entire portfolio successful.
Example: 10 investments → 1 returns 10x
Simple Math: 9 deals lose $225K total, 1 deal returns $250K, You still win
What is position sizing?
Position sizing is how much money you put into each deal. It helps manage risk across your portfolio. Smart investors don’t put too much into one deal.
Example: $250K total capital
Simple Math: $25K into 10 deals vs $250K into 1 deal, More deals = lower risk
How To Think Like An Investor
What makes a good deal?
A strong team solving a real problem in a growing market. There should be signs people actually want the product. Simplicity is usually a good sign.
Example: Founders with track record + real users
What is an investment thesis?
Your investment thesis is your personal strategy for where you invest. It keeps you focused and disciplined. Without it, you make random decisions.
Example: “I invest in sports, media, and consumer brands”
Simple structure: Industry + Advantage + Risk level
When should I pass?
You should pass when you don’t understand the business or see major risks. Not investing is often the best decision. Discipline matters more than activity.
Example: Confusing business with no traction
Simple Math: $0 invested = $0 lost, Passing protects capital
Can I actually help?
You should invest where you can add value beyond money. This could be through connections, distribution, or brand. If you can’t help, you are just a passive investor.
Example: You bring a major partnership
Simple Math: Your intro drives $1M revenue, Increases company value
How to build your thesis
Your investment thesis defines where and why you invest. It helps you stay focused and avoid random deals. Strong investors are consistent.
Example: “I invest in sports, media, and consumer brands”
Simple Math: 10 deals in your expertise → higher win probability
Common Challenges
Investing without understanding terms
If you don’t understand valuation or ownership, you don’t know what you’re buying. This leads to poor decisions. Understanding the basics gives you control.
Example: Investing $50K without knowing your % ownership
Simple math: Ownership = Investment ÷ Valuation
Overconcentration
Putting too much into one deal increases your risk. Even great deals can fail. Smart investors spread their bets.
Example: $250K in one deal vs 10 deals at $25K
Simple math: More deals = lower risk per investment
Following others blindly
Following others without understanding the deal leads to poor decisions. Their goals, risk tolerance, and access may be different from yours. You must make your own decisions.
Example: Another athlete invests, so you follow
Simple Math: They can lose $1M easily, You may not be able to
Chasing hype
Hype attracts attention but doesn’t guarantee success. Many popular deals are overpriced. Good investors focus on fundamentals, not noise.
Example: Hot startup with no revenue
Simple Math: High valuation = lower ownership, Less upside
Expecting quick money
Most private investments take years to generate returns. These are not short-term plays like trading stocks. Thinking you’ll get paid quickly leads to bad decisions and frustration.
Example: You invest today and expect a return in 1 year
Simple Math: Reality: 5–10 years to exit, $50K today → $200K in 7 years (not next year)
DISCLAIMER
The PAC Investment Deal Flow Forum serves solely as a platform for learning and visibility into investment opportunities. PAC does not endorse, promote, or facilitate investment into any deal presented. All investment decisions are the sole responsibility of attendees, and any interest in deals must be initiated directly with presenters. Attendees are responsible for conducting their own due diligence before making any investment decisions.