When do I need to make a fee contribution?

 

AngelList’s minimum raise for Standard SPVs is $80k ($50k for follow-ons and sidecars). 

If your SPV does not raise the minimum amount, it can still be run as long as a fee contribution is made towards set up and state regulatory fees. This ensures that LPs don’t pay more than 10% of their commitment in fees (excluding optional add-ons).

A fee contribution can be made by you as the SPV Lead or by the portfolio company. The fee contribution will be applied towards the set up costs and state regulatory fees of the SPV; it will not increase the contributor’s interest in the SPV.

Example:

You raise $75k from your LPs and would like to run the SPV:

  • Amount raised: $75,000
  • Maximum fees paid by LPs (10%): $7,500
  • SPV setup fee: $8,000
  • SPV state regulatory fee: $2,000
  • 10% fee cap deduction: -$2,500
  • Fee contribution required: $2,500
  • Investable amount: $75,000 - $7,500 = $67,500

 

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