When do I need to make a third-party contribution?

AngelList’s minimum allocation for SPVs is $72k ($36k for follow-ons and sidecars). Since setup and regulatory fees are capped at 10%, this means that the minimum amount raised for an SPV is $80k ($40k for follow-ons and sidecars). 

If your SPV does not raise the minimum amount, it can still be run as long as a third-party contribution is made towards setup and blue sky fees so that LPs don’t pay more than 10% of their commitment in fees.

A third-party contribution can be made by you as the SPV lead or by the portfolio company.

Example:

You raise $75k from your LPs and would like to run the SPV:

  • Amount raised: $75,000
  • Maximum fees paid by LPs (10%): $7,500
  • SPV setup fee: $8,000
  • Third-party contribution required: $500
  • Investible amount: $75,000 - $7,500 = $67,500

Note that in the example above, AngelList is covering the cost of regulatory fees, as we cap fees at 10% based on a minimum allocation of $72k ($36k for follow-ons and sidecars). 

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