The cost of raising capital through AngelEquity mirrors the cost of raising through the angel networks we work alongside.
6% of capital raised
When you raise capital through an angel network, the standard fee agreed between an entrepreneur and angel networks who belong to the Angel Association of New Zealand (AANZ) is 6% of funds they raise.
This fee allows the networks to function, grow their memberships (and subsequently their capacity to fund), manage their relationships with numerous entrepreneurs and assist investee companies.
When a particular angel network ‘syndicates’ its deals with another network they agree to split the 6% fee, 50/50. They share their intel about the entrepreneur and the company, raise funds from angels in both networks, pool experience and sector expertise and work together to assist the business to grow.
AngelEquity works with angel networks across New Zealand in the same way.
Instead of (or as well as) syndicating with another angel network, deals are syndicated with AngelEquity. We reach out to wholesale investors who are not part of the AANZ’s formal angel networks and offer them the opportunity to participate in angel-backed deals.
AngelEquity splits all funds raised through the platform with the networks which prepare them. Therefore, AngelEquity receives up to a maximum of 3% of funds raised through the platform.
AngelEquity then manages investments made by wholesale investors through its accredited investor platform via a nominee company for a cost $150 p/m for ongoing reporting and compliance on behalf of wholesale investor shareholders.
For Enterprise Angels Members
Currently, there are no fees for Enterprise Angels (EA) members to invest through AngelEquity, as nominee services are included in their annual membership.
For wholesale investors
Enterprise Angels (EA) charge a 2% administration fee to non EA Member wholesale investors on any investments made, and when investments are liquidated (in any company who is not paying a shareholder management fee on behalf of their investors).
This will cover costs incurred in providing on-going services – to put this into perspective, when your $10K investment gets a 10x exit and turns into $100K, $2K will be retained by EA for administration fees.
We do not charge bank fees, background check fees or anti-money-laundering check fees. We do not accept credit card payment – our payment process is paperless so there are no extra payment processing fees either.