How does carry work in an angel syndicate?

How high is the carry?

The lead sets the carry once for the whole syndicate when creating it, not per deal (How do I start an angel syndicate?). Carry typically ranges from 10 to 20 percent; there is no fixed limit. Any VAT is included in the percentage. When you join the syndicate, you sign the finder's agreement (Tippgebervereinbarung) and thereby accept the carry.

When is carry due?

• Ongoing returns: Dividends, profit distributions and comparable payments from your investment. The carry applies to the full amount.
• Exit gain: Proceeds from selling your investment or the startup, from a liquidation or an IPO, minus the amount you originally invested.

Both are calculated before your personal taxes.

Example: You invest €20,000 and the carry is 10 percent. At the exit, you receive €50,000. Your gain is €30,000, the carry €3,000. If you only receive €15,000, no carry is due.

Which investments does carry cover?

Carry applies to investments in startups the lead has shared with you as a deal. It does not matter whether you invest through beel or outside it, or in what form, for example via profit participation rights, a convertible loan or company shares.

How is carry paid?

You inform the lead when you invest in a shared startup and when you become entitled to returns or exit proceeds. As soon as you are entitled to the payout, the carry becomes due and you pay it to the lead.

What else do co-investors pay?

You pay no fees to beel, only the carry to the lead if an investment generates returns or a profit (What does beel cost?).