Venture Deals

You should try to invest in personally. Investing with an LP doesn’t usually work and it’s not that beneficial for the LP.

You should try to invest in personally. Investing with an LP doesn’t usually work and it’s not that beneficial for the LP.

You should offer the LPs in Fund 1 the opportunity to invest first. You will also need LPAC approval if Fund 1 has reserves. 

You should offer the LPs in Fund 1 the opportunity to invest first. You will also need LPAC approval if Fund 1 has reserves. 

Unfortunately, you will not be able to calculate a markup here.

Unfortunately, you will not be able to calculate a markup here.

The Taylor Davidson Runway Budgeting Tool can help plan. As an investor, you're looking for this investment to bring the company to a significant milestone where next round investors will be motivated to invest. Investment usually takes ...

The Taylor Davidson Runway Budgeting Tool can help plan. As an investor, you're looking for this investment to bring the company to a significant milestone where next round investors will be motivated to invest. Investment usually takes longer than planned, so having next-round conversations earlier and lining up those investors is a key value of pre-seed/seed stage VCs.

Hey Yinka Adebiyi don’t engage.

Hey Yinka Adebiyi don’t engage.

You invest as an individual and then move it into the fund later, correct. You will need to secure approval from the company to change the owner, so notify them ahead of time.

You invest as an individual and then move it into the fund later, correct. You will need to secure approval from the company to change the owner, so notify them ahead of time.

You can do whatever you want. BUT from a business perspective, you really want your first 3 deals to be on thesis AND they're deals that will get marked up ideally before your second close.

You can do whatever you want. BUT from a business perspective, you really want your first 3 deals to be on thesis AND they're deals that will get marked up ideally before your second close.

Usually yes, but not necessary. A lead, typically sets the deal terms and does most of the diligence. They also find co-investors.

Usually yes, but not necessary. A lead, typically sets the deal terms and does most of the diligence. They also find co-investors.

You can warehouse a deal of any size that is related to your Thesis. If they are too small, then it may appear strange to have in your fund. Unless your fund has a follow on strategy, then don’t plan to do a follow on, as this would be o...

You can warehouse a deal of any size that is related to your Thesis. If they are too small, then it may appear strange to have in your fund. Unless your fund has a follow on strategy, then don’t plan to do a follow on, as this would be off strategy.

You can only use valuations set by rounds of financings

You can only use valuations set by rounds of financings

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended