All Questions

Most investments are in USD, so use USD. Use CAD if you are primarily planning to invest in CAD in Canadian startups, raising primarily from Canadian LPs.

Most investments are in USD, so use USD. Use CAD if you are primarily planning to invest in CAD in Canadian startups, raising primarily from Canadian LPs.

Decile Group strongly recommends not accepting any investors who are not accredited investors into a Fund, even if it is technically and legally possible (depending on the jurisdiction and the Fund's legal agreements). Such investors are...

Decile Group strongly recommends not accepting any investors who are not accredited investors into a Fund, even if it is technically and legally possible (depending on the jurisdiction and the Fund's legal agreements). Such investors are generally not worth the extra effort and cost.  For specific advice about a jurisdiction, please consult an experienced fund attorney in said jurisdiction. 

You should set the default percentage of the PACT at 75% if you're in a developed market and to 50% for emerging markets. The 'best practice' is to increase fundraising momentum. If you have momentum and an increasing number of investor...

You should set the default percentage of the PACT at 75% if you're in a developed market and to 50% for emerging markets. The 'best practice' is to increase fundraising momentum. If you have momentum and an increasing number of investors are committing to the fund, you will be in a strong position to close.  Once you have $1m - $2m in PACTs from a group of LPs (not one LP), then you can begin a formation and closing process, which typically takes 2-3 months.

It is generally not recommended for an LP to also be a Venture Partner - it could introduce conflicts of interest but the LP may also lose their "limited" status and corresponding protection from liability in the case an LP is involved i...

It is generally not recommended for an LP to also be a Venture Partner - it could introduce conflicts of interest but the LP may also lose their "limited" status and corresponding protection from liability in the case an LP is involved in decision-making for the Fund. 

The Venture Studios in the VC Lab program have a VC fund attached. Please review this article: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/ The capital calls for the VC fund that's attached to the studio will work the s...

The Venture Studios in the VC Lab program have a VC fund attached. Please review this article: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/ The capital calls for the VC fund that's attached to the studio will work the same as any other VC fund.

Hi John, in that situation you can manually move them to the appropriate stage in the closing pipeline. This can be done by checking the box next to the LP's name and changing their stage or by simply clicking on the dropdown menu button...

Hi John, in that situation you can manually move them to the appropriate stage in the closing pipeline. This can be done by checking the box next to the LP's name and changing their stage or by simply clicking on the dropdown menu button underneath the column 'STAGE' and changing the stage.

“The identity of the LPAC members will be disclosed to all the investors of the fund. Disclosure happens as part of the process of providing notice to investors of changes or approvals that have been made.”

“The identity of the LPAC members will be disclosed to all the investors of the fund. Disclosure happens as part of the process of providing notice to investors of changes or approvals that have been made.”

Not necessarily. While LPs will contribute their commitment through multiple capital calls, they do not need to contribute all of their committed capital during the Investment Period. It would be correct to make capital calls for managem...

Not necessarily. While LPs will contribute their commitment through multiple capital calls, they do not need to contribute all of their committed capital during the Investment Period. It would be correct to make capital calls for management fees and fund expenses in the post-investment period.

No LP can own more then 25% of the fund and ideally they should own less then 20%.  LP ticket sizes are based on demand and capacity. Your minimum ticket for the 1st close should be not be lower then $100k.

No LP can own more then 25% of the fund and ideally they should own less then 20%.  LP ticket sizes are based on demand and capacity. Your minimum ticket for the 1st close should be not be lower then $100k.

Correct - if you call 100% of their commitment over the 1st two years, then you would have money sitting in the fund's bank account for future management fee payments.

Correct - if you call 100% of their commitment over the 1st two years, then you would have money sitting in the fund's bank account for future management fee payments.

Decile Hub manages the signature process for members of Decile Launch and Decile Partners.  Venture capital funds do not use a SHA. Limited partners sign a Limited Partner Agreement, or LPA. They normally also sign a Subscription Agreem...

Decile Hub manages the signature process for members of Decile Launch and Decile Partners.  Venture capital funds do not use a SHA. Limited partners sign a Limited Partner Agreement, or LPA. They normally also sign a Subscription Agreement, which is not required when using the Cornerstone LPA.  

Go to: 1. Dealflow 2. Deal Memos 3. Add a deal Memo The tool is designed to ask you important questions about the deal and provide a good baseline. I would encourage you to also update these questions based on the approach of your thes...

Go to: 1. Dealflow 2. Deal Memos 3. Add a deal Memo The tool is designed to ask you important questions about the deal and provide a good baseline. I would encourage you to also update these questions based on the approach of your thesis. 

In my view, it's your job as VC to help your company. If you have expertise in this area, just help them without charging them. It's part of your value add.  It is a bit of a conflict if you charge them and it may require some sort of d...

In my view, it's your job as VC to help your company. If you have expertise in this area, just help them without charging them. It's part of your value add.  It is a bit of a conflict if you charge them and it may require some sort of disclosure. 

As a manager, you need to get to know every potential limited partner before you pitch them, including doing research to understand if they are accredited. At the ned of the day, you need to use your best judgement. This is governed by g...

As a manager, you need to get to know every potential limited partner before you pitch them, including doing research to understand if they are accredited. At the ned of the day, you need to use your best judgement. This is governed by general solicitation regulations, which are explained below: https://govclab.com/2022/06/28/general-solicitation/

Read this: https://govclab.com/2021/10/28/venture-capital-roles/ And this: https://govclab.com/2023/08/02/venture-capital-roles-2/ And finally, this: https://govclab.com/2022/03/10/venture-share/ The comp is close to 0 for a $5m fund ...

Read this: https://govclab.com/2021/10/28/venture-capital-roles/ And this: https://govclab.com/2023/08/02/venture-capital-roles-2/ And finally, this: https://govclab.com/2022/03/10/venture-share/ The comp is close to 0 for a $5m fund and most new managers will not be able to afford to have many support roles on salary, if any. You will have $1m for 10 years to run your business. That $100k/year will need to pay for a variety of things, besides your salary. 

Generally speaking, a fund's domicile is not the same as the fund manager's (advisor's) place of business. It is very rare (I believe I have seen it once) for a fund manager to actually live/work in Delaware (thus potentially necessitati...

Generally speaking, a fund's domicile is not the same as the fund manager's (advisor's) place of business. It is very rare (I believe I have seen it once) for a fund manager to actually live/work in Delaware (thus potentially necessitating a state level filing depending on the criteria).  Emerging fund managers generally domicile in Delaware but live and conduct business in other states or countries - they typically rely on 3(c)1 and file with the SEC as an Exempt Reporting Advisor (Form ADV). When working with Decile Partners, we will coordinate with a premier partner law firm to take care of any needed regulatory filings. If you are setting up your fund independently, your law firm should take care of these for you. 

The PACT is a non-binding agreement, and, before any entities are formed, the jurisdiction does not matter, since there is no underlying entity to bind the agreement to. In general, it can be any jurisdiction, as the agreement is non-bin...

The PACT is a non-binding agreement, and, before any entities are formed, the jurisdiction does not matter, since there is no underlying entity to bind the agreement to. In general, it can be any jurisdiction, as the agreement is non-binding.

This will be covered in the second half of the VC Lab program and we'll provide all the templates etc...

This will be covered in the second half of the VC Lab program and we'll provide all the templates etc...

In your thesis statement you should say where you're located. In your case, you can say that you're in Milan or in Italy. 

In your thesis statement you should say where you're located. In your case, you can say that you're in Milan or in Italy. 

As a VC, you must get preferred shares. This is sort of non-negotiable. Common is significantly less valuable because it has no preference. Unless the founder will do all future financings via common, which is highly unlikely and creates...

As a VC, you must get preferred shares. This is sort of non-negotiable. Common is significantly less valuable because it has no preference. Unless the founder will do all future financings via common, which is highly unlikely and creates future financing risk for the company because future VCs will likely not invest, you need to ensure that your investment either converts to preferred shares via a SAFE or Convertible note, or directly acquires preferred shares.