Clarify how the deal carry will be charged?We allow the syndicate leads to choose how much carry they will charge investors for each deal they lead on the platform. Aussie Angels always takes 5% carry, so that is the minimum you'll pay on a deal (if the lead decides to take none). If a lead decides to take the full 15%, then you'll be charged 20% carry, that is the maximum.
What entity structure do you use?We use a multi-class Australian wholesale unit trust. This is the best structure for this kind of investment, as it provides the most protections.
Does it allow ESIC benefits to flow through?Yes (where ESIC is applicable).
Will you collect the money from me and distribute it to the startup?
Yes, we will take care of collecting the money from each investor and distributing it to the startup.
Who handles the tax reporting each year?
We handle the tax return for the SPV. We’ll also send you a statement at the end of each financial year setting out your taxable components (if any).
If the company goes under and there are no assets to liquidate, will you still charge investors the annual management fee?
No. The first three (3) years are due upfront but no further annual management fees will be charged if the SPV does not realise any gains.
Am I liable for anything other than my initial contribution?
No. Your liability is limited to your investment amount.
Do I need to be a wholesale investor?
Yes, you must have a current (within the last 2 years) sophisticated or professional investor certificate.
How are the fees split between investors in the deal?
The establishment fee and the management fee are charged proportionally to each investor based on their investment amount in the deal. So each investor will be charged 4% of their investment for the establishment of the deal, and 2% of their investment per year (first three years upfront).
Are the fees taken out of the investment amount or in addition?
For each deal, the establishment fee and management fees (first 3 years) are taken out of the investment amount.
Example: If the total amount being invested through Aussie Angels is $150k, and there are 10 investors in the SPV, investing $15k each. The establishment fee will be $6k split evenly between 10 of them, so $600 will be taken from the $15k they each invest. The process is the same for the first 3 years of the management fees.
Are there any other costs?
Yes, we charge a $60 onboarding fee for new investors. This is charged at the time of your first investment and is in addition to (not taken out of) the investment amount. You only have to pay this once on your first deal.
Have another question?
No problem! Email us: hello at aussieangels.com.