What fees apply to my investment? Are there hidden costs? How is my investment allocated?
The platform may charge a management or transaction fee, disclosed before investment confirmation. A portion of the investment covers fees, with the rest allocated to the SPV or target entity.
Is my investment subject to TCS? Do I need to report it?
Banks may levy 20% TCS (Tax Collected at Source) on remittances made under the Liberalised Remittance Scheme (LRS). This TCS amount is not a tax in itself — it is adjustable against your total tax liability and can be claimed as a credit while filing your income tax return.
Reporting obligations may vary depending on your individual tax situation. It's advisable to consult a tax advisor to ensure proper compliance
How are exits planned?
Exits typically occur through future fundraises, IPOs, acquisitions, or other secondary opportunities. Since these are growth-stage investments, we recommend a minimum holding period of 3 years to allow for potential liquidity. 🕰️
That said, if you identify a buyer in the interim, your SPV units can be transferred, subject to GP approval.
Who makes the exit decision, and can LPs exit early?
The General Partner (GP) typically makes the exit decision to ensure strategic alignment across investors. However, LPs may request an early exit, which is subject to GP approval.
Is secondary sale of SPV units allowed? Will it be documented?
Yes, secondary sales of SPV units are permitted with GP approval. Any such transfer will be formally documented to ensure transparency and regulatory compliance.
Are there any lock-in periods or restrictions on exiting?
There is no formal lock-in period. That said, early exits or transfers require GP approval to maintain consistency and fairness within the investment structure.
Are you subscribing to the MOA of the investee entity?
No, I am investing in an SPV created for the target investment.
Any prior financial commitments (OCPS/Loan/Guarantee) with the investee entity?
No.
Is the investee entity incorporated by you?
No.
Is this entity a JV or WOS where you have/plan to acquire a majority stake?
No.
Are you an active investor managing the investee entity?
No.
Is the remittance for pre-incorporation or new venture registration expenses?
No.
Is the SPV duly regulated in its host jurisdiction?
Yes, it is domiciled in Delaware, USA, and is subject to Delaware regulations.
Is the remittance being made to an unlisted company?
Yes.
Post-investment shareholding %?
Less than 1% (exact % will depend on final SPV funding and closing).
What instrument are you investing in?
Units of the SPV.
Investment Breakdown Example:
| Investment Amount (incl. fees) | TCS (20%) | Amount Transferred to Allocation | Fees (12%) | Final Investment in Anthropic |
|---|---|---|---|---|
| $100,000 | $20,000 | $100,000 | $12,000 | $88,000 |
| $125,000 | $25,000 | $125,000 | $15,000 | $110,000 |