Setup fees are typically between $4,000 and $8000. Investors pay a portion of the setup costs, proportional to their investment amount.
Imagine a syndicate has a $100,000 allocation to invest in a company called ACME, Inc. An investor invests $10,000. The investor will pay 10% of the setup costs (10% of $8,000 = $800). This $800 comes out of their $10,000 investment so that $9,200 goes to ACME.