Ask AI
Log In Sign Up
Go to Venture Legal
Previous Question Next Question
0
Venture Legal

Can a VC Fund Invest in Another VC Fund and Maintain a Diverse Portfolio?

Asked by:
Community Member
1
0
May 03, 2023
Can a VC fund invest in another VC fund? Let's say they have a portfolio of 10 startups and 2 investments in other VC funds?
1 answer
0
Mike Suprovici
Accepted Answer
May 03, 2023
Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.
What type of LPA will allow us to invest in a fund that is focused specifically in a sector that would not conflict with direct investment into other sector portfolio companies?
- 
Community Member
Jul 13, 2023 3:54pm
See the updated answer above Khaled. 
- 
Mike Suprovici
Jul 13, 2023 8:38pm
 Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 17

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 17
Related Questions
Can a Partner in One VC Firm Serve as a Venture Partner in Another While Assisting in Fundraising? 0 May 03, 2023 Can I invest in portfolio companies that are competitors? 0 May 03, 2023 Can We Double Down on a Company Investment Through Fund II if Already Invested in Fund I? 1 May 03, 2023 Are VC and PE Funds exempted from BOI reporting? 1 Nov 21, 2024 Emerging managers: how are you thinking about conflict of interest between Fund 1 and 2? 1 Oct 23, 2024