Subject line: How fees work on Aussie Angels
Hi [first name],
Good question! I'm happy to share more info on the fees and what they cover.
While fees can vary between different syndicates, in Australia, the total setup and/or management fee is generally between 6% to 12%. When compared to a VC fund which is 2% over 10 years for a total of 20%, it's still well below that.
On the carry side, the standard that we see here is generally 20% (that is on the profits at exit after initial funds returned).
These fees enable us to run our syndicate with a certain level of quality and efficiency. It helps cover all the costs incurred by us (and our compliance provider Aussie Angels) to bring investors the deals and support the transaction, including:
Time spent on deal sourcing, selection, and securing the allocation
All the analysis and due diligence on the company
Putting together the deal note and communicating with investors about the opportunity
Supporting the founders and company as they grow
All of the compliance requirements; including KYC, AML, tax returns, distributions on exit, annual audits, investor entity verification, banking transfers, and legal due diligence.
If you want to understand more about any of our processes in particular, please feel free to ask, and we'll be happy to give you more details.
Hope this makes sense, if you have any other questions, feel free to ping me (or check on Aussie Angels FAQ)!