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Venture Deals

If you're planning to transfer an angel investment as a warehouse deal, what should be the minimum size?

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Jun 26, 2023
Good evening VC Lab team!

The GPs of Plaintext have made recent angel investments that are in the $10-25k range each. We're hoping to raise a $10m fund so  these would typically be too small given we plan on making 30-40 investments. 

Nonetheless, can/should we use them to fund our 1% GP commitment or as warehouse deals? 

Thank you, 

Fran
1 answer
Accepted Answer
Jun 26, 2023
As a general rule of thumb, the minimum transfer of a previous angel investment into a VC fund should be a $25K position at cost. Transfers should resemble, as much as possible, what an actual investment looks like in terms of stage of entry, sector and amount. A transfer should never be less than 10% of the target investment amount of the final fund, so, if a fund is planning to invest $1 MM, then the minimum transfer should be $100K. 

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