How are cash distributions processed?

When a portfolio company experiences an exit or liquidity event that results in a cash distribution or disbursement, our team conducts a thorough review and prepares a distribution to LPs, following the process outlined below:

  1. We are notified of the exit or liquidity event. 
  2. We work with the portfolio company to collect transaction documents and complete any required signatures. 
  3. We review the transaction documents and put together a summary of the transaction for our internal record-keeping, including an outline of any expected proceeds. 
  4. We update our records to reflect any valuation changes as a result of the transaction. 
  5. We work with the company or paying agent to receive cash proceeds. 
  6. Once we receive the proceeds, we reconcile them against the expected proceeds to ensure the fund has not been overpaid or underpaid.
  7. We prepare a distribution preview outlining the amount to be distributed to each LP (and carry, if applicable). 
  8. We conduct a tax review to identify and apply any applicable tax withholding. 
  9. We reach out to the GP with a distribution preview for review and approval. 
  10. Once approved, we execute the distribution and deposit funds into each LP’s AngelList account. They can then withdraw funds to their bank accounts at their convenience. 

Once funds are received (in Step 5), the process generally takes 5-10 business days. Our review of the transaction may be delayed if we do not receive transaction documents from the company, or if the company is unresponsive. Please reach out to if you have questions about a pending transaction or distribution. 

Please note that the process for in-kind (stock) distributions is different. If a portfolio company has parallel cash and in-kind distributions, the distributions will be processed separately. 

We provide distribution details for LPs here

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