What are admin costs for Syndicate SPVs?

Admin costs entail the expenditure that is incurred for forming and operating the SPV for the entirety of its life cycle. 

 

Admin costs cover state registrations as well as the expenses for record-keeping, tax reporting, and other administrative support for the SPV. Therefore the SPV pays the admin costs when it closes and invests into its target Portfolio assets. 

 

The Investors are required to pay a part of the admin cost on a pro-rata basis due to their interest in the SPV.

What is the minimum amount I must invest as an investor?

The minimum investment amount for any deal is usually set by the Lead and does not have any hard and fast rule regarding its minimums. Therefore, it generally depends on the Lead and the deal.



What information can I see about a deal?

Every deal will include the following information:

 

  • The deal memo, which contains a blurb from the Lead where they explain the benefits of the investment.
  • A deck that shows an overview of the business and other similar metrics.
  • List of the co-Investors who are investing in this round of the deal.
  • Record of its past finances which is a rundown on the previous rounds of financing that this vehicle has received.
  • A list of risks that a specific investment or deal carries.
  • You can also get an idea of which round you are investing in, like pre-seed, seed, Series A, Series B, etc.
  • You can determine the instrument of investment like SAFE, Equity, or Convertible Note.
  • It also includes the amount a Lead is investing into a Syndicate and whether the Pro-rata rights are allocated to each investor.
  • The percentage of total carry that the Lead is entitled to recieve on your investment is also mentioned in a deal.
  • Closing docs are also a part of every deal.



Where are the closing docs for a deal?

The closing docs for a deal are accessible through a link that can be found on the deal page itself.

When will I receive the signed documents?

 

You will receive the signed documents through email only when the deal is finalized and closed. This can take a few days or weeks depending on the vehicle’s fundraising.



How can I resolve any query that I have about a deal?

If you have any questions about any deal you can resolve them by reaching out directly to the Syndicate Lead via messages.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.