How does the distribution process work?

LPs are notified of distributions at the email address linked to their AngelList account. They can access their Funding Accounts page on the AngelList platform to withdraw funds through an external wire or ACH transfer.

When a portfolio company undergoes an exit or liquidity event that results in a cash distribution or disbursement, AngelList follows a detailed process to ensure accurate and efficient distribution to LPs. Here’s how it works:

1. AngelList receives notification of the exit or liquidity event.
2. We collaborate with the portfolio company to gather transaction documents and complete any required signatures.
3. Our team reviews the transaction documents and prepares a summary for internal records, including details of the expected proceeds.
4. We update internal records to reflect any valuation changes resulting from the transaction.
5. AngelList works with the company or paying agent to receive the cash proceeds.
6. Upon receipt of the funds, we reconcile the proceeds against the expected amounts to confirm there are no discrepancies.
7. A detailed distribution preview is prepared, outlining the amounts to be distributed to each LP and any applicable carry recipients.
8. We perform a tax review to identify and apply any necessary withholdings.
9. The distribution preview is sent to the GP for their review and approval.
10. Once approved, AngelList executes the distribution, depositing funds into each LP’s AngelList account. LPs can then withdraw funds to their bank accounts at their convenience.

Timing:

From the time cash proceeds are received (Step 5), the process generally takes 5-10 business days. However, delays may occur if transaction documents are not provided promptly or if the portfolio company is unresponsive.

Parallel Distributions:

For in-kind (stock) distributions, the process differs and is handled separately. In cases where a portfolio company issues both cash and in-kind distributions, each type will be processed individually.

Additional details about the distribution, including specifics or business decisions, are provided at the discretion of the fund lead. If you have any questions regarding the distribution, please contact your fund lead through the message center.