The lead for a syndicate SPV sets the carry percentage – 20% is standard on AngelList.
Carry (short for “carried interest”) refers to the share of profits that will be paid to the lead after investors have received back their original capital.
Example:
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An SPV raises $1M with 20% carry
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The portfolio company exits for $10M
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Profits = $10M – $1M = $9M
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Carry = $9M × 20% = $1.8M
In this case, $8.2M would be distributed to LPs, and $1.8M would be paid to the lead as carry.