AngelList charges a flat-rate setup fee for each SPV. That fee is pro-rated across all LPs in the vehicle. The Estimated Setup Costs percentage reflects your portion of that fee, expressed as a percentage of your investment.
This percentage can vary from deal to deal based on a few factors:
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Allocation size – Larger allocations typically reduce the percentage impact of fixed fees.
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Number of LPs – More LPs means the setup fee is split across more participants, lowering the cost per investor.
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Lead structure – If the lead is investing through a fund, or has previously run a deal into the same company, setup costs may be lower due to operational efficiencies.
This estimate is provided up front so you can understand how much of your investment may go toward administrative costs before making a commitment.