How is compliance handled with a Start Fund?
The Decile Group handles compliance for Start Funds, including a lightweight framework for adhering to legal, regulatory, and ethical standards to ensure proper governance and risk management. This includes creating policies for ethics, KYC/AML, data protection, and other regulatory requirements.
How are KYC and AML handled with a Start Fund?
The Decile Group handles KYC and AML checks of the Investment Lead and limited partners. If an individual or entity triggers a compliance flag, the Decile Group will reach out to the party to try and resolve the compliance matter. In a case where the compliance fails, the Decile Group will inform the Investment Lead. Start Funds are not allowed to admit any limited partner or other party that fails KYC and AML compliance checks.
How are conflicts of interest resolved with a Start Fund?
The Decile Group helps to identify and clear conflicts of interest in a Start Fund, particularly involving the Investment Lead and investments. Examples include managing multiple funds simultaneously, looking to do personal angel investing within the fund Thesis, having personal relationships with portfolio companies, or being involved in other business ventures. The Decile Group may establish a Limited Partner Advisory Committee (LPAC) to evaluate and approve potential conflicts.
Can compliance-related questions be discussed privately?
Yes, specific compliance questions can be addressed with the Decile Group through direct messages in the community channel or by reaching out the supplied email address for private matters.
What geographies are not supported by a Start Fund?
A Start Fund can not accept limited partners from Europe, although the Start Fund can invest in Europe. Start Funds also can not have Investment Leads living in Singapore.
How does the Delaware domicile impact operations?
The state of Delaware in the US is the top global domicile for venture capital funds and the only available domicile for Start Funds. It provides legal and tax advantages that benefit both domestic and international investment strategies. Some limited partners have concerns with Delaware to avoid US taxes.
Should the Investment Lead create a Delaware entity?
The Investment Lead may want to create a Delaware entity, preferably a limited liability company (LLC), to add additional liability protection, although this is optional. If the Investment Lead has multiple partners or other stakeholders, then creating an entity is the recommended way to accomplish this. Decile Group has a recommended partner to set up an entity, but this is not included in the Start Fund process.