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.
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).