1

Does it cost money to transfer an Angel deal into the fund's deal warehouse, either on the part of the startup or the fund? If so, what is the ballpark magnitude of the cost to transfer it?

Asked by:
Community Member
1
0
0
Jun 29, 2023
1 answer
Accepted Answer
Jun 29, 2023
The startup typically will retain their lawyer to manage this transaction because they want to control their cap-table. However, since it's a fairly common practice, the law firm can be pretty efficient here. 

With respect to the fund, it really depends on what fund administrator and the law firm the firm retains. Warehouse transfers are included in the Decile Launch offering. However, it's not uncommon for other law-firms and administrators to charge for this service. 
To clarify, how much would the startup have to pay their lawyer to manage this transaction, even if it is efficient? For context, I am trying to convince a rockstar startup that is closing their round in the next week to keep me in mind. They really want me in, but are eager to close their round and have interest from others. Even though I have 10% in PACTs there is no way for me to close the fund within a week. I am wiling to write an angel check to try to transfer later but the startup doesn't want to incur any significant (> ~ $200) costs to transfer the deal later.
Community Member
Jun 29, 2023 8:08pm
It's hard for us to estimate this, but, we have seen lawyers do it at no or minimal charge if it's just a basic SAFE. You can tell the company that this is pretty standard practice. If it's a more complicated transaction like preferred shares, the company council may need to do more work.
Jun 29, 2023 8:52pm
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Apply to VC Lab Cohort 15

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 15