Selected Angels SPVs

This section explains why we create SPVs, how you can participate, how the SPVs are structured, and what happens after you invest.

At Selected Angels, we’re committed to giving individuals access to exclusive, high-demand investment rounds that already have a strong lead investor. We carefully select these opportunities and only share them with angels who have relevant industry expertise, allowing founders to benefit from both funding and valuable industry insights.

Through SPVs, we allow individual investors to invest in these rounds with smaller commitments, starting from as little as £1k.

It’s important to remember that investing in early-stage startups is high risk, so please carefully consider any SPV opportunity before committing funds.

To join an SPV, you must first apply and be accepted into Selected Angels. This allows us to verify your status as a sophisticated investor and match you with opportunities that align with your expertise. We’ll notify our registered angels when an SPV opens, but you will only receive opportunities that are relevant to your background, and be able to opt-in on a deal by deal basis.

Once you register with Selected Angels and express interest in a specific SPV, you’ll receive an invitation to access the deal page on Odin. Here’s what you’ll find on the deal page:

• A description of the company

• The company’s pitch deck

• Key terms of the round

• The deadline for investing

If you’re not already registered on Odin, you’ll need to do so to complete the investment process. Odin will confirm your eligibility to invest and collect information needed for any applicable tax relief, such as EIS.

Once on Odin’s funding page, you’ll have the option to invest on a first-come, first-served basis. Here’s how it works:

If the SPV doesn’t reach its minimum investment threshold (known as the SPV floor) by the funding deadline, funds will be returned to those who contributed.

If the SPV surpasses its maximum investment cap (the SPV ceiling), any funds over the ceiling amount will be refunded, with priority given to those who invested earliest.

The terms of each round are set by the lead investor. Some key rights you may want to consider include:

• Liquidation Preference: Selected Angels’ SPV typically converts into EIS shares (which do not carry a liquidation preference), or, if the company isn’t EIS-eligible, into the most senior class of shares at the next fundraise. Liquidation preferences vary, so it’s worth exploring if unfamiliar.

• Information Rights: Startups often only provide ongoing updates to "Major Investors" who hold a significant equity stake. As our SPVs often represent a small percentage of the company’s equity, information rights may be limited.

Selected Angels charges a 6% deal fee per SPV, which covers administrative costs, including Odin’s platform fees. There are no management fees for our SPVs.

SPVs are subject to a 20% carry pool, applied to profits exceeding a 1x return. For example, if a £100k SPV returns £1m (£900k profit), £820k would be distributed to investors (8.2x return), and £180k would be allocated as carry (20% of £900k profit). No carry is charged if the investment returns 1x or less.

Once you’ve transferred funds to the SPV via Odin, you’ll receive confirmation of receipt from Odin, along with a notice when the SPV is officially closed and the investment has been made in the startup.

For investors eligible for EIS relief, we’ll coordinate with Odin and the investee company to prepare and distribute EIS certificates. This process can take several months, depending on company timelines.

During the holding period, Selected Angels will share semi-annual updates, including commercial highlights, revenue growth, and news of any additional fundraising rounds. Your equity holdings will be visible on your Odin portal, where you can track progress and contact Odin with any questions.

Upon exit, Odin will handle distributions, and you’ll be responsible for ensuring compliance with your tax obligations.

We’re here to help! If you have further questions, feel free to contact us at mail@selectedangels.com. Thank you for your interest in Selected Angels—we look forward to potentially partnering with you on some remarkable investment opportunities!