All Questions

There is no standard amount or numbers. What you're referring to here is having someone invest in the GP entity. First, you need to set a valuation on the GP entity. A good place to start is by trying to pencil out the value of the carry...

There is no standard amount or numbers. What you're referring to here is having someone invest in the GP entity. First, you need to set a valuation on the GP entity. A good place to start is by trying to pencil out the value of the carry if you 3x the fund. Then, you can work backward to determine how much $ a % of the GP is worth.  This transaction is typically not contingent on fundraising targets. Instead, an investor will buy a portion of your carry for a set amount, similar to how you would invest in a startup. If the fund fails, the investment in the GP goes to 0.  It is not very advantageous for investors to invest in the GP because they get paid last. The best place for investors to invest is the LP entity, because there they get paid first. Therefore, those who chose to invest in the GP vs the LP entity often do so because a) they want to help the manager and b) they want to get better economics on their initial LP investment. 

No. Instead, send LPs a PACT. The standard PACT has NDA language prebuilt into the legal template and it's designed for this purpose. Once they sign the PACT, you can disclose more information about the fund. 

No. Instead, send LPs a PACT. The standard PACT has NDA language prebuilt into the legal template and it's designed for this purpose. Once they sign the PACT, you can disclose more information about the fund. 

Always avoid giving tax advice to your LPs. If you do, you incur enormous liability. Your answer should always be: "Please speak with your tax advisor." For your info only, there are usually tax benefits. But these are different dependi...

Always avoid giving tax advice to your LPs. If you do, you incur enormous liability. Your answer should always be: "Please speak with your tax advisor." For your info only, there are usually tax benefits. But these are different depending on jurisdiction. For example, in the US, there is QSBS. But never EVER suggest these to LPs. 

Currently, external users cannot directly upload files to a Decile Hub data room. If you need an external user to contribute a file, they would need to send it to an internal user who could then upload it to the Data Room. However, your ...

Currently, external users cannot directly upload files to a Decile Hub data room. If you need an external user to contribute a file, they would need to send it to an internal user who could then upload it to the Data Room. However, your suggestion for allowing external users to upload files directly to a data room is valuable and has been noted for potential future enhancements. For now, sensitive information should be securely shared via email, or other secure methods, before being uploaded to the data room.

The max file size for uploading a file to a data room / folder is 20MB.

The max file size for uploading a file to a data room / folder is 20MB.

There are two reasons: • It extends the fund life. If you are on Fund 1, you want Fund 1 to get done fast so you can move to Fund 2. • It’s hard to explain to LPs. It will take the pitch away from the thesis and to a discussion about the...

There are two reasons: • It extends the fund life. If you are on Fund 1, you want Fund 1 to get done fast so you can move to Fund 2. • It’s hard to explain to LPs. It will take the pitch away from the thesis and to a discussion about the mechanics of recycling.

PFIC/CFC rules are complex and you may be required to distribute additional tax documentation to US investors, so you should reach out to your fund's tax provider to determine if your fund has any annual filing requirements. More info on...

PFIC/CFC rules are complex and you may be required to distribute additional tax documentation to US investors, so you should reach out to your fund's tax provider to determine if your fund has any annual filing requirements. More info on PFIC below: https://www.lexology.com/library/detail.aspx?g=e3626fb7-eb6b-4402-b9b8-aeb5f2a34816 https://www.amicorp.com/AmiNews/2017/july/US_tax_implications_and_reporting_requirements.php

Broadly speaking, VC firms (and the funds they advise) must pursue a venture capital strategy and meet certain requirements in order to avoid registration with the SEC, under one or more "exemptions" to registration.  Registering with ...

Broadly speaking, VC firms (and the funds they advise) must pursue a venture capital strategy and meet certain requirements in order to avoid registration with the SEC, under one or more "exemptions" to registration.  Registering with the SEC brings a host of additional reporting, compliance, and governance requirements (and costs/burden) to a fund vehicle's investment advisor (often the same person/entity as the fund manager(s)) - hence funds try to avoid this at all costs unless/until their strategy requires this.  If one of these requirements is believed to be breached, then an analysis must be done to determine what exemptions the fund currently falls under, or if its investment advisor must register with the SEC (if it is not already registered). This can be a complex and nuanced analysis - we strongly recommend consulting an experienced fund attorney for assistance.  For more information, you may find the following articles generally helpful: • https://montague.law/blog/understanding-the-venture-capital-exemption/ • https://www.strictlybusinesslawblog.com/2018/05/31/the-venture-capital-adviser-exemption-explained/

Update: The email template you're referencing was part of the previous iteration of the Deals pipeline. Thanks for raising the issue, apologies for the misconfiguration. This particular problem will no longer be an issue for newly create...

Update: The email template you're referencing was part of the previous iteration of the Deals pipeline. Thanks for raising the issue, apologies for the misconfiguration. This particular problem will no longer be an issue for newly created accounts, but other accounts created with your same cohort may have the same issue occur.

Stages in the LP pipeline represent the logical steps that a prospect (potential investor) follows along in the fundraising process. These stages can range from being added to the pipeline, through various communication steps, all the wa...

Stages in the LP pipeline represent the logical steps that a prospect (potential investor) follows along in the fundraising process. These stages can range from being added to the pipeline, through various communication steps, all the way to being closed or declined. Each stage contains a series of actions that define the steps followed to determine what happens with a prospect. These actions could include sending an email to the prospect and then waiting for their interaction to progress to another stage. The system allows for automatic progression based on actions such as a prospect clicking on a link in an email or signing a PACT, but it does not currently support automatic stage changes based on inaction.

Yes! Only the fees outlined in the engagement letter will be charged by Decile Group. Other fund expenses, such as Delaware annual renewals, tax filings, Form ADV amendments, or registered agent fees are examples of additional costs to c...

Yes! Only the fees outlined in the engagement letter will be charged by Decile Group. Other fund expenses, such as Delaware annual renewals, tax filings, Form ADV amendments, or registered agent fees are examples of additional costs to consider to maintain your fund.

Decile Group requires automatic debits for monthly or quarterly payments. If you are on an annual payment plan, you may elect to pay via a traditional invoice with a wire transfer.

Decile Group requires automatic debits for monthly or quarterly payments. If you are on an annual payment plan, you may elect to pay via a traditional invoice with a wire transfer.

The Total Value to Paid-In (TVPI) ratio serves as a critical benchmark in assessing the performance of venture capital (VC) funds, offering insights into the return on investment for Limited Partners (LPs). This ratio is categorized into...

The Total Value to Paid-In (TVPI) ratio serves as a critical benchmark in assessing the performance of venture capital (VC) funds, offering insights into the return on investment for Limited Partners (LPs). This ratio is categorized into different performance levels: great (TVPI above 4x), good (TVPI of 2.5x), medium (TVPI of 1.5x), and bad (TVPI below 1.5x). However, the interpretation of TVPI ratios is nuanced, influenced by factors such as fund size, which can range from $5 million to $250 million, the stage of investment from pre-seed to Series B, and vintage years that reflect the market conditions at the time of the fund's inception. For example, the internet bubble era saw TVPI ratios soaring to 4.5x, demonstrating exceptional returns, which contrasted sharply with the post-bubble period when ratios dwindled to 1.5x, indicating reduced investor returns and a downturn in fund performance. The benchmark for a top decile VC fund is a Distributed to Paid-In (DPI) ratio of 3x over a 10-year period, suggesting that for every dollar invested, LPs should expect a threefold return. This ideal metric underscores the long-term investment horizon and the high-return expectation associated with top-performing VC funds. However, accessing reliable benchmarks for assessing fund performance can be challenging, as only 24% of U.S. funds report their financial returns for the 2002-2021 vintage years, according to studies utilizing databases like Pitchbook and Preqin. This limited data disclosure may introduce selection bias, possibly skewing reported results towards higher-performing funds and not fully representing the broader industry performance. Given these complexities and potential biases, caution is advised when using benchmarks to evaluate VC fund performance, especially for first-time and smaller emerging managers who might find it even more challenging to compare against industry standards. The variability in fund size, investment stages, and economic cycles, coupled with the limited and possibly selective reporting of financial returns, complicates the assessment of VC fund performance. This highlights the importance of a nuanced understanding of TVPI ratios and the context-specific factors that influence them, ensuring a more informed and balanced approach to evaluating venture capital investments.

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This error may be due to an issue with the formatting or content of your CSV file. Try opening the file in Google Sheets and then downloading it as a CSV file again. This process can often resolve any hidden formatting issues. If the pro...

This error may be due to an issue with the formatting or content of your CSV file. Try opening the file in Google Sheets and then downloading it as a CSV file again. This process can often resolve any hidden formatting issues. If the problem persists, consider checking the file for any special characters or non-UTF-8 compliant characters, especially on line 57 as indicated by the error message.

We have migrated several firms on custom legal agreements to Decile Partners. However, the bar for admissions is significantly higher.  Due to the nature of migrations, the Decile Partners team will need to undergo thorough diligence of...

We have migrated several firms on custom legal agreements to Decile Partners. However, the bar for admissions is significantly higher.  Due to the nature of migrations, the Decile Partners team will need to undergo thorough diligence of your operations in addition to your application process prior to making an admissions decision. This is due to the fact that the Partners offering is optimized for Firm Success rather than for just servicing your fund.  Merging bespoke legal operations is significantly less efficient than the integrated Decile Partners offering which is optimized to help your firm be successful via one point of contact. Hence, if your firm is accepted into Decile Partners, it is likely that a custom proposal will need to be generated for the migration.