The GP or Lead Commitment refers to how much money the GP is investing into the deal. This is also referred to as "skin in the game." AngelList Venture requires that GPs have skin in the game for every deal.
Fund leads are required to have a minimum commitment of $1k to fulfill skin-in-the-game requirements. We recommend that leads invest at least the lesser of 2% of the allocation or $10k to demonstrate skin-in-the-game to LPs. The commitment may come from a lead’s personal entity or from a fund.
This requirement is secured by several restrictions:
- A GP commitment cannot be transferred if the transfer would violate the skin-in-the-game requirement – doing so would require LP consent. If the skin-in-the-game requirement would be maintained after the transfer, the GP has the discretion whether or not to disclose the transfer to LPs.
- The GP commitment cannot be reduced without the majority consent of LPs.
- SPVs may not deploy capital until the minimum GP commitment has been fulfilled.