1

What is the smallest viable angel investment to warehouse a deal?

Asked by:
Community Member
1
0
0
May 03, 2023
What is the smallest viable angel investment to warehouse a deal?
1 answer
Accepted Answer
May 03, 2023
The amount is not as important in warehouse deals, what’s more important is markups.
Let’s say that you invested 10k in warehouse deal, but now that position is up 30x. That’s a meaningful markup for your LPs that they would get at cost. And, if you can follow into deal or have pro-rata, that’s even better. 
You are going to need to set clean and consistent rules about the deals you warehouse because you can’t cherry-pick. So, for example, you can say, all deals in 2022 will get moved into the fund. You CAN NOT warehouse an SPV.

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