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As a result of global general solicitation rules and best practices, a manager should only share materials with a limited partner that they know and are confident meet the local accreditation or wealth standards. Practically speaking, th...

As a result of global general solicitation rules and best practices, a manager should only share materials with a limited partner that they know and are confident meet the local accreditation or wealth standards. Practically speaking, the manager should have an introductory meeting with every LP first to get to know them. After getting to know a limited partner, then the manager can decide to meet with limited partner again to pitch them or to send the limited partner materials. Managers should only send materials to interested limited partners and avoid sending materials just because an uninterested or curious limited partner requests materials.

There are many ways to ask a limited partner for a PACT, ranging from more passive ways to more forward ways. A manager should decide which way to ask which limited partner based where in the process the limited partner is and how the re...

There are many ways to ask a limited partner for a PACT, ranging from more passive ways to more forward ways. A manager should decide which way to ask which limited partner based where in the process the limited partner is and how the relationship with the limited partner is going. Here are three examples of how to ask: Passive Ask: "We are planning to close at the end of Q1, please let me know your interest level by filling out form below." Direct Ask: "I would love to have you participate in our first close. Are you interested in a $250K position? Please let me know below." Forward Ask: "You mentioned interest in a $250K position, can you reserve your position at the link below by Wednesday?"

Decile Hub is a powerful tool to manage relationships and commitments with limited partners. Limited partners are managed in the Fundraising pipeline. To get started, add a limited partner to this pipeline, and assign them to a Stage, su...

Decile Hub is a powerful tool to manage relationships and commitments with limited partners. Limited partners are managed in the Fundraising pipeline. To get started, add a limited partner to this pipeline, and assign them to a Stage, such as "Meeting." Then, you can email the limited partner using the "Send email" button or using the default email templates for the Stage. You also have the ability to send limited partners a PACT through the Fundraising pipeline to secure a non-binding commitment from the limited partner to invest. Try the different Stages and review the various email templates available to help manage limited partners in Decile Hub, customizing the experience as needed.

New Managers need to develop a Thesis, form a team, complete initial fundraising, finish a first close, finalize fundraising, and deploy the capital. These activities are completed in a series of fund lifecycle phases, which are outlined...

New Managers need to develop a Thesis, form a team, complete initial fundraising, finish a first close, finalize fundraising, and deploy the capital. These activities are completed in a series of fund lifecycle phases, which are outlined below. Inception Phase The inception phase is when the Thesis and team are developed. Initial Fundraising Phase The initial fundraising phase is when the initial LPs are secured, normally 1st and 2nd degree connections First Close Phase The first close phase is when there is enough commitments to start a first closing, which is normally at least 10% hard circled and 10% soft circled, totaling at least $2 MM Final Fundraising Phase The close fundraising phase is when the managers are simultaneously closing the fund while also running hte fund Deploying Phase The deploying phase is when a fund is fully closed, calling capital from limited partners to make investments into Thesis aligned startups

When asking a question in Decile Hub, try to be as specific as possible, and phrase the query as a question. You can also provide context to help the AI give better answers. For example, "I just completed a first close on my fund with $2...

When asking a question in Decile Hub, try to be as specific as possible, and phrase the query as a question. You can also provide context to help the AI give better answers. For example, "I just completed a first close on my fund with $2.5 MM committed of $5.0 MM target fund size. How much capital should I call?" You can also as Decile Base for guidance and advice, such as, "I have a limited partner who is hesitating to sign my LPA, what should I do?" Try some harder questions or ask about tricky situations in venture. Decile Base has a surprising range of capabilities.

The ideal roadmap for a fund depends on the phase of the fund, as well as other criteria. The fund phases and success criteria is described in detail below.  Inception PhaseThe inception phase is when the Thesis and team are developed. ...

The ideal roadmap for a fund depends on the phase of the fund, as well as other criteria. The fund phases and success criteria is described in detail below.  Inception PhaseThe inception phase is when the Thesis and team are developed. When: Start when the manager or managers have the initial idea to start a fund, lasting until a final Thesis and initial team is developed Duration: 1-2 months Goals: Finalize a fund Thesis using the one sentence format; Identify possible Partners and Venture Partners to fill needs in the Thesis. Targets: Get the Thesis to the point where 1 or more out of 5 people that you tell it to express interest to participate Warnings: Do not work with service providers as this is too early; Do not make someone a partner unless you know them well over 5 years or more; Set the fund size as a minimum that you can easily oversubscribe Commitment: Dedicate 10% to 25% of manager time to ideation and investigative meetings Initial Fundraising PhaseThe initial fundraising phase is when the initial LPs are secured, normally 1st and 2nd degree connections When: Starts when the Thesis is complete and the managers are ready fundraise, lasting until enough capital is secured to complete a first close Duration: 4-9 months Goals: Activate strong Connectors to help identify limited partners; Pitch new limited partners weekly; Secure enough capital to close; Put all interested limited partners on a monthly newsletter Targets: Have 10+ Connectors that produce an average of 3 limited partners each; Have 150+ limited partners in your Fundraising pipeline with Connectors identified; Secure 2% to 3% of the fund size on average in new PACTs from limited partners per week; Secure 10% hard circled with PACTs and another 10% soft circled for a total of at least $2 MM or greater Warnings: Any response from a limited partner about investing that is not explicitly a "yes" is a "no"; Avoid having more than 3 meetings with any limited partner; Avoid having to teach limited partners about the venture capital asset class; Institutional investors normally do not invest in first closes and require a lot of time Commitment: Dedicate 40% to 60% of manager time to fundraising and other time to deal sourcing First Close PhaseThe first close phase is when there is enough commitments to start a first closing, which is normally at least 10% hard circled and 10% soft circled, totaling at least $2 MM  When: Starts when the fund has enough commitments to start a first close, lasting until first capital call is completed Duration: 1-2 months Goals: Secure formation vendors, including a law firm, back office, accounting firm, tax firm, and other (see Decile Partners); Form or re-use the three legal entities for a fund (management company, general partner, and fund); Complete all of the agreements for the entities and the team, and the fundraising;  Set up the bank accounts; File any necessary government forms, secure any necessary licenses, and comply with regulations; Secure signatures on the LPA to complete a closing; Send and secure the first capital call for 20% to 30% of the fund size Targets: Secure at least 10% of your fund size or $1 MM, whichever is greater, to close; Collect 100% of the called capital within the timeframe defined in the LPA Warnings: Do background reference checks on vendors; VC bank accounts can take weeks or months to set up; Team needs to pass AML; Limited partners need to pass KYC; Compliance requirements can be complicated; Not everyone who is interested invests and not everyone who signs wires; Closings can be expensive when not managed closely; Read all of the agreements and documents carefully Commitment: Dedicate 80% to 100% of manager time to closing Final Fundraising PhaseThe close fundraising phase is when the managers are simultaneously closing the fund while also running hte fund When: Starts when the fund completes a first close, lasting until the final close occurs Duration: 9-24 months Goals: Transfer warehoused deals; Complete investments as called capital allows; Pay the organizational expenses; Pay the fund expenses; Carefully manage management fees to do more investments; Start pitching institutional limited partners right after the fist close; Dedicate a majority of time to fundraising; Complete interim closing on a rolling basis or in batches, increasing the minimum as you go; Complete the final closing; Targets: Complete 2 or 3 new deals; Secure 1+ markup in a warehoused deal or portfolio company; Secure 2% to 3% of the fund size on average in new PACTs from limited partners per week; Secure limited partner commitments for 150%+ of the target fund size Warnings: Do not call more than 30% of the fund size until after the final close; Do not fundraise for longer than 24 months from the first close; Do not accept limited partners for more than 20% of the fund size; Do not invest in any deals that are off Thesis; Do not close on less capital than is your target minimum fund size Commitment: Dedicate 60% to 80% of your time to closing; Dedicate remaining time to souring deals and running the fund Deploying PhaseThe deploying phase is when a fund is fully closed, calling capital from limited partners to make investments into Thesis aligned startups When: Starts when the fund completes a final close, lasting until the fund deploys all of the capital or reaches the end of the active investment period Duration: 12-48 months Goals: Invest in the target number of deals for the target amount according to the Thesis; Invest in any follow-on opportunities or set up select follow on SPVs; Develop high quality Deal Memos for each completed deal; Organize annual LP events; Send monthly newsletters; Complete quarterly and annual fund compliance and reporting; Resolve any conflicts of interest; Collect management fees; Assist portfolio companies; Secure portfolio markups Targets: Close 1 deal for at least 20 deals reviewed; Deploy 100% of the committed capital minus any future fees; Secure portfolio markups that put the total unrealized TVPI of the fund at 1.5x+; Secure 2+ early portfolio company success stories Warnings: Do not start working on the next fund until you hit the successor fund threshold of the current fund; Avoid doing deals where you have multiple doubts; Only invest in deals that have the opportunity to return the whole fund multiple times; Complete proper due diligence on every deal relative to the stage and the amount invested; Keep all investment agreements and documents well organized Commitment: Dedicate 60% to 80% of your time to sourcing and closing deals; Dedicate remaining time to helping portfolio companies and fund operations, which includes cultivating LP relationships for the next fund

This is a slippery slope and you will struggle to make this point, irrespective of the data. LPs should understand that, albeit low, there is a risk of total loss when investing a VC fund. However, because the upside is exponential and b...

This is a slippery slope and you will struggle to make this point, irrespective of the data. LPs should understand that, albeit low, there is a risk of total loss when investing a VC fund. However, because the upside is exponential and because the VC fund takes a portfolio approach, the probability of the LP investing a massive success is much higher.  If you are in a conversation with an LP and you're discussing 'risk mitigation' you have lost. VC is a risk asset class. It's an asset class that's optimized for maximum upside rather then for downside protection. This is especially true for early stage funds like yours. So, if the conversation is trending towards risk mitigation, you need to take charge and tell the LP that this is investment is optimized for maximum upside via the portfolio approach. No historical data is going to convince a risk averse LP invest in a VC fund.

To reimburse your $5,000 Decile Partners retainer, please feel free to initiate the transfer from the fund to your personal account once the funding for the capital call is received.

To reimburse your $5,000 Decile Partners retainer, please feel free to initiate the transfer from the fund to your personal account once the funding for the capital call is received.

After opening a new Hub account, follow these steps for a clean setup: 1. Connect your email account: Go to the Integrations page located under your profile picture (top right-hand corner). Click on 'Sign in with Google' or 'Sign in wit...

After opening a new Hub account, follow these steps for a clean setup: 1. Connect your email account: Go to the Integrations page located under your profile picture (top right-hand corner). Click on 'Sign in with Google' or 'Sign in with Microsoft' and follow the instructions. This improves email deliverability and visibility. 2. Set up your personal profile: Go to the 'Edit Profile' page located under your profile picture (top right-hand corner). Complete this profile as much as possible. Be sure to add your calendar URL as that will be very important for setting up meetings with LPs and Founders. 3. Set up your firm profile: Navigate to 'Settings' > 'Firm' on the left-hand-side panel and fill out your Firm Profile. Here, you can also change your subdomain if needed.  4. Invite your team: Navigate to 'Settings' > 'Team' on the left-hand-side panel. Click on the 'Invite New Teammate' button in the top right corner. Fill in all the required fields and set the user's permissions using the permissions toggles. 5. Test your setup:  1. Navigate to 'Fundraising' where you are automatically taken to 'Manage LPs'.  2. Click on the 'Add Prospect' button in the top right corner.  3. Here you will add yourself and a test email which you can do by adding '+test' to the end of your address: name+test@gmail.com. Click Save. 4. You should see yourself pop up in the first stage called 'Added'. To see all stages, check the box 'Show all groups' above the 'Name' 'Search' objects.  5. In the fourth column you should see 'Send email', click that button and an email window will appear. 6. Your test name should appear in the 'To' row. 7. In the row 'Email template' select the first item in the drop down '1.1 Introduction: Hello' 8. If anything shows up in red text then your firm or personal profile are incomplete. Ask Decile Base on how to update that, for example, if you see 'global.fund_thesis' in red, then you are missing a thesis so you will ask Decile Base "Where can I add my Thesis?" 9. If everything looks good, Press 'Send Email' 10. In your inbox, you should an email from yourself. If anything looks off or you did not receive the email, please post your question to the Hub Support Channel on Decile Base 6. Import your contacts: If you have a large external list of prospects, use the import tool to import contacts from a CSV file into Decile Hub. You can import people into the People Directory or a specific pipeline. 7. Upload a Deck: Click on the blue '+' in the bottom right corner, and then select 'Upload Files'. You can either browse for the file on your computer, or if the folder is already open, you can simply drag and drop the deck file onto the Decile Hub screen. 

Decile Base can provide answers on a variety of topics related to using Decile Hub, including: Some starter questions to help your experience from within your account: At a high level see what it can do for you, with something like "Wh...

Decile Base can provide answers on a variety of topics related to using Decile Hub, including: Some starter questions to help your experience from within your account: At a high level see what it can do for you, with something like "What can I ask here?" Decile Base can support you within hub in a number of capacities: 1. Functionality: Decile Base can explain the various tools and features available in Decile Hub, such as CRM, data rooms, digital signing, deal tracking, and back-office tools. 2. Data Import: Decile Base can guide you on how to import data into Decile Hub, such as exporting a CSV from Airtable and then importing it into Hub. 3. Tutorials: Decile Base can direct you to tutorial videos and support answers for using Decile Hub. 4. Additional Services: Decile Base can provide information on additional services available to Decile Start, Decile Launch, and Decile Partners members and how to access them. 5. Signature Process: Decile Base can explain how and where Decile Hub manages the signature process for PACTs, LPAs, term-sheets, and more signature functions. 6. Investment Inquiries: Decile Base can guide you on how to make investment inquiries through Decile Hub. 7. Access and Permissions: Decile Base can answer questions about accessing Decile Hub, connecting new users, and managing permissions. 8. Deal Review: Providing information about a potential deal, Decile Base can help evaluate and provide some considerations for negotiation if needed. 9. Feature Requests: Decile Base can direct you to the appropriate channel to share feature requests for Decile Hub. From here you can go deeper with specific needs: • Email Support: "Can you help me draft an email to Venture Partners?" • Import Support: "I'm migrating my LPs and Deals from Airtable, how should I proceed for importing that data to my Fundraising and Deals Pipelines?" • Platform Setup: "How do I add an email signature to my account?" • Platform Guidance: "How do I use Hub to manage LPs?" • Platform Growth: "What are the next steps for a new manager?" • Offer Support: "Say you have 2 offers: Offer 1: Pre-Money Value of $10 million, $5 million investment, 10% Post-Money Option Pool OR Offer 2: Pre-Money Value of $11 million, $5 million investment, 20% Post-Money Option Pool.  Which is the “better” offer for the founders and can you explain why conceptually and mathematically??

Funds can't accept advisory options because they are for individuals. However, funds can accept warrants. This is why base is aggressively against this arrangement. If you receive advisory options, you can't move those to the fund becaus...

Funds can't accept advisory options because they are for individuals. However, funds can accept warrants. This is why base is aggressively against this arrangement. If you receive advisory options, you can't move those to the fund because those options are granted to you, the individual. 

You must amend your Form ADV each year by filing an annual updating amendment within 90 days after the end of your fiscal year. For best practice, you should have you legal counsel file this amendment for the fund.

You must amend your Form ADV each year by filing an annual updating amendment within 90 days after the end of your fiscal year. For best practice, you should have you legal counsel file this amendment for the fund.

You should share how much you have closed, if an LP asks. However, unless you have closed at least 50% of the fund, it's sub-optimal to lead with this type of information because it's unclear if you will reach your target. This is also w...

You should share how much you have closed, if an LP asks. However, unless you have closed at least 50% of the fund, it's sub-optimal to lead with this type of information because it's unclear if you will reach your target. This is also why it's absolutely critical to set your fund size as the minimum target rather then your maximum. The timing also matters. For example, if you recently did a 1st close and you have 20% subscribed, that's a great signal to LPs. On the other hand it doesn't look great if you set your fund size at $20m and you only closed on $5m with 6 months left in your fundraising period. If you have a lot of fundraising momentum you can create a scarcity effect that 'the train is leaving the station, get on now'. You can use this momentum to ask current LPs for additional introductions etc.. and if they are excited about the opportunity, they will comply. 

First, confirm that you and any other Managing Partners or General Partners (Partners) have the capacity to invest up to 1% or more of the Fund Size in cash or possibly in startup equity at cost. Next, confirm that all Partners can work ...

First, confirm that you and any other Managing Partners or General Partners (Partners) have the capacity to invest up to 1% or more of the Fund Size in cash or possibly in startup equity at cost. Next, confirm that all Partners can work between 9 and 18 months on fund formation without being fully compensated for that work, writing the name and the number of hours per week that each Partner can commit with limited or no compensation. Then, reflect upon the fact that each Partner is making a minimum of 12 year commitment to the firm, writing the name and the means by which you have validated the long-term commitment that each Partner has made. Finally, use an agreement like this one (https://vcl.to/mmm) to put finalize the scope for each partner. 

The LP Institute is an 8 week online program built to teach Limited Partners (LPs) the process of investing in top venture capital managers. The program focuses on sourcing, conducting due diligence, and successfully closing on at least ...

The LP Institute is an 8 week online program built to teach Limited Partners (LPs) the process of investing in top venture capital managers. The program focuses on sourcing, conducting due diligence, and successfully closing on at least one investment. This hands-on approach ensures that participants not only learn the theoretical aspects of venture capital but also apply this knowledge to an investment. Find out more here: https://govclab.com/lp-institute/

We have developed an article for GPs to share with LPs: https://govclab.com/2023/04/26/how-to-invest-in-vc/. That being said, your proposed approach will not work. Sending LPs information about how the emerging managers over-perform othe...

We have developed an article for GPs to share with LPs: https://govclab.com/2023/04/26/how-to-invest-in-vc/. That being said, your proposed approach will not work. Sending LPs information about how the emerging managers over-perform other asset classes is a guaranteed fail. LPs that invest in new and/or emerging managers invest in the Managing Partner(s) because they believe that those INDIVIDUALS are uniquely qualified to executed on the thesis and they resonate with the thesis and want to be part of the mission. If an LP asks you questions like: how does this compare to investing in [insert asset class], you have lost. This is a no and you will struggle to recover from this. That means that your pitch was un-succesful. 

Feature requests for Decile Hub can be shared in the Decile Base Hub Feedback channel, which can be found here: https://www.decilehub.com/base/40-hub_feedback. Your insights and suggestions are always welcome as they help improve the pla...

Feature requests for Decile Hub can be shared in the Decile Base Hub Feedback channel, which can be found here: https://www.decilehub.com/base/40-hub_feedback. Your insights and suggestions are always welcome as they help improve the platform.

Yes. It's not uncommon for large LPs to want to request to be on the IC. That being said, you need to be very careful with who you nominate on the IC because it is making investment decisions for the fund. 

Yes. It's not uncommon for large LPs to want to request to be on the IC. That being said, you need to be very careful with who you nominate on the IC because it is making investment decisions for the fund. 

Some business expenses that are typically paid from management fees include: Laptops & Equipment, Salaries, LP Events, Software, Due Diligence and Travel. Please review this article on fund expenses: https://govclab.com/2022/11/07/mana...

Some business expenses that are typically paid from management fees include: Laptops & Equipment, Salaries, LP Events, Software, Due Diligence and Travel. Please review this article on fund expenses: https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/ Below is a summary. [Screen Shot 2024-01-03 at 6.20.08 PM.png]