All Questions

TL'DR - Don't do it. You will struggle to raise from professional LPs and it's incredibly difficult and expensive to execute an evergreen strategy in VC. As a result, the VC Lab accelerator does not support evergreen funds. It is not re...

TL'DR - Don't do it. You will struggle to raise from professional LPs and it's incredibly difficult and expensive to execute an evergreen strategy in VC. As a result, the VC Lab accelerator does not support evergreen funds. It is not recommended to use an evergreen structure for Venture Capital funds, especially for emerging managers.LPs will be un-familiar with the evergreen structure in VC, because it's unusual, difficult to execute and there is no example of a successful evergreen VC fund. It will make the fundraising process even more challenging that it is with a normal closed-ended VC fund. In addition, to execute an evergreen strategy, funds have to be able to mark the assets to market in between rounds of financing so that LPs can get liquidity. These structure is incredibly difficult to execute with startups and introduces enormous complexity.

Typically, you select "Pooled Investment Vehicle" for the LP Entity (the fund)

Typically, you select "Pooled Investment Vehicle" for the LP Entity (the fund)

Most capital call notices have a 14 day deadline. However, most LPAs have flexibility built in to accommodate LPs they may not be able to meet the deadline, within reason, due to various circumstances.

Most capital call notices have a 14 day deadline. However, most LPAs have flexibility built in to accommodate LPs they may not be able to meet the deadline, within reason, due to various circumstances.

You are not going to be obligated to return the money to investors and it will not be feasible for you to do so even in the unlikely scenario that an inexperienced LP makes an ask like this. This is because the LP's money gets invested i...

You are not going to be obligated to return the money to investors and it will not be feasible for you to do so even in the unlikely scenario that an inexperienced LP makes an ask like this. This is because the LP's money gets invested into startups as soon as possible. In other words - think of the fund's bank account as a router of LP money into startups. 

Decile Launch is a structured program designed to establish a venture capital firm and close its fund. It offers a unified fund formation service with bundled legal, accounting, and strategic advice. The program includes forming all nece...

Decile Launch is a structured program designed to establish a venture capital firm and close its fund. It offers a unified fund formation service with bundled legal, accounting, and strategic advice. The program includes forming all necessary legal entities, business advisory on closing agreements, a structured 8-week closing program, unlimited closing support, LP negotiation assistance, LP wiring assistance, and due-diligence assistance. After launch, the fund becomes part of Decile Partners for ongoing support.

You need to have different data rooms for different LP archetypes. If the LP archetype that's making this request is HNW this folder should maybe contain a few deal memos on your best angel investments. On the other hand, if the LP is an...

You need to have different data rooms for different LP archetypes. If the LP archetype that's making this request is HNW this folder should maybe contain a few deal memos on your best angel investments. On the other hand, if the LP is an Family Office or Institutional, you're going to want to provide an excel, deal memos and any other type of report you may have.

Yes! If you go to the settings for a data room folder, you will see an input to show a "Pact link banner", which will display a banner to do exactly that. [pact.png]

Yes! If you go to the settings for a data room folder, you will see an input to show a "Pact link banner", which will display a banner to do exactly that. [pact.png]

Yes. Whenever looking at a folder, each file will have a 3 dot menu that has the "Edit/Re-upload" option. Alternatively, when viewing a file page, there will be a button to "Edit/Re-upload". Clicking that will open menu to rename the fil...

Yes. Whenever looking at a folder, each file will have a 3 dot menu that has the "Edit/Re-upload" option. Alternatively, when viewing a file page, there will be a button to "Edit/Re-upload". Clicking that will open menu to rename the file. [1.png][2.png]

VC funds traditionally have a Thesis, a Presentation, and an Overview. Larger VC funds will also have a PPM. In addition to these core materials, VC funds will also have a data room with due diligence materials, such as the model. 

VC funds traditionally have a Thesis, a Presentation, and an Overview. Larger VC funds will also have a PPM. In addition to these core materials, VC funds will also have a data room with due diligence materials, such as the model. 

Fund of Funds fees are typically 1 and 10.  On the strategy you mentioned above, ti sounds like a classic VC Fund. You will not be able to do 70/30 though due to the VC exemption and the complexity with reporting. But it could be 80/20.

Fund of Funds fees are typically 1 and 10.  On the strategy you mentioned above, ti sounds like a classic VC Fund. You will not be able to do 70/30 though due to the VC exemption and the complexity with reporting. But it could be 80/20.

Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher d...

Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher due to the operational cost.

I recommend that you don't reverse engineer like this. This is a trap that many emerging managers fall into. The managers that have done this who we have worked with regretted it when they came in severely under-subscribed because they s...

I recommend that you don't reverse engineer like this. This is a trap that many emerging managers fall into. The managers that have done this who we have worked with regretted it when they came in severely under-subscribed because they set a high target since LPs that gave them this objection. This objection is a No, not that if you had a bigger fund they would invest. We recommend that you set the target to what you can realistically close relatively easily in the next 18 months. First, asses the LPs in Fund 1. Typically ~70% often re-up in Fund 2s. Then, review the relationships you have built with other LPs over the years that you think have a realistic shot at closing. Let's say that after this exercise, you feel very comfortable reaching a $15m target. Consider then setting the target in the $15 - $20m range max. Then, if/when LPs of the archetype that you describe give you that objection, say something like this in your own words: "Our target is $[x], and we are confident that we will likely over subscribe. What is your process from here on out?"

To change the name of your Firm go to Settings > Firm Settings. To change the name of your Fund go to Settings > Firm Settings > Entity Management.

To change the name of your Firm go to Settings > Firm Settings. To change the name of your Fund go to Settings > Firm Settings > Entity Management.

Institutional LPs typically do not sign PACTs. They also rarely participate in Fund 1s and on 1st closings. Most are prevented by charter from investing in emerging managers and typically engage in Fund 2 and beyond. If you're going to a...

Institutional LPs typically do not sign PACTs. They also rarely participate in Fund 1s and on 1st closings. Most are prevented by charter from investing in emerging managers and typically engage in Fund 2 and beyond. If you're going to approach them, make sure they have a defined and focused strategy to invest in new and emerging managers.