LetsVenture proposes revised exit fee for investors amid fund cycle

Investors are worried about the proposed fee of Rs 25,000 to 3% of exit value and the recommendation that consent would be ‘deemed’ from those who do not respond.

On 13 February, investment platform LetsVenture proposed an amendment in its LV Angel Fund that includes an exit fee of a minimum of Rs 25,000 to 3% of exit value per syndicate for every investor. The document has been reviewed by The Morning Context. 

This means that along with a carry—carried interest, or a cut on each investment based on profits from investments—an additional fee will be deducted from the returns. 

Founded in 2013, the online platform connects early-stage startups with potential investors. It also pools the investments later so that all investors could be brought on the startup’s cap …

Author

Anuj Suvarna

Anuj covered all things startups and venture capital at The Morning Context. Previously, he worked at VCCircle, where he covered healthcare and private equity. Anuj studied mass communication at the Manipal Institute of Communication and before journalism, he operated a bar in Udupi.

Writer

anuj@mailtmc.com

Bengaluru