Notes: Starting a Venture Fund on AngelList

Overview

AngelList offers a comprehensive platform for fund managers to raise capital, close deals, and manage portfolios. The platform handles overhead and back-office services, allowing managers to focus on investment deals.

Key Features of AngelList for Venture Funds

• Earn Carry: Possibility to earn carried interest on investments with adjustable shares per LP (Limited Partner).
• End-to-End Platform: Provides all tools needed to run a fund efficiently.
• Fast Capital Raising: Ability to raise capital once, rather than deal-by-deal, which facilitates quicker investments and competitive allocations.

Fund Management Services

Everything You Need to Run Your Fund

• Full-Service Administration: AngelList manages legal formation, capital calls, tax documents, and other back-office services.
• Platform Capital: Fundraising from professional investors on AngelList.
• Seamless Closes: Investors can close into your SPV (Special Purpose Vehicle) electronically. AngelList manages fund formation documents and wire transfers.
• Tax Preparation: Prepares tax returns and K-1 distributions for the lifetime of the investment.

Pricing Plans

Base Plan

• Best for Funds Under $3M
• Cost: $3.5k + 0.75% of fund size (annualized)
• Features: Fund administration, legal fund formation, investor closings, transaction reviews, valuation support, fund filing, and tax services.

Core Plan

• Best for Funds Between $3M-$30M
• Cost: $20k + 0.2% of fund size (annualized)
• Features: Everything in Base plus a dedicated account manager and unlimited investments.

Institutional Plan

• Best for Funds Over $30M
• Cost: $35k + 0.15% of fund size (annualized)
• Features: Everything in Core plus all add-on services, audit support, and quarterly financials.

FAQs

• Setting Up a Venture Fund: Interested parties can click "Get Started" and fill out a form for assistance.
• Minimum Investment Amounts: Fund settings can be adjusted, including minimum investment amounts, target fund size, closing dates, and fees.
• Non-Qualifying Venture Investment: Up to 20% of funds can be in non-qualifying investments, such as secondary stock purchases or investments in other funds.
• Capital Calls: Entirely self-serve via the fund dashboard.
• Different Investor Minimums: Possible to set different minimum investments for different investors.

Additional Resources

• Pricing & Returns Tools: Includes pricing calculator, VC fund performance calculator, and RUV calculator.
• Educational Resources: Partnerships, blog, help center, education center, and careers.

Disclaimer

The information provided is for informational purposes only and should not be construed as investment advice. Terms and conditions are subject to change, and past performance is not indicative of future results.

This guide outlines the services and benefits offered by AngelList for starting and managing a venture fund, including key features, pricing plans, and resources available for fund managers.