Two quick questions 1. Are we able to use funds raised to pay for lawyers fund formation costs etc as a separate cost not associated with the 2% management fee? 2. What is the right distribution for our allocation/fund economics slides i.e. 80% will fail 10% will return 1x and another 10% giving us a 25x (all preseed investments)?
1. Yes most LPAs have a carve out for formation
2. It really depends on your strategy. Either way you should consider showing 3 scenarios (high, medium, low)