All Questions

It's a major advantage for the fund manager to be located in the target geography of their portfolio because it allows for much faster response time, it enables them to win competitive investments and it allows them to develop the necess...

It's a major advantage for the fund manager to be located in the target geography of their portfolio because it allows for much faster response time, it enables them to win competitive investments and it allows them to develop the necessary network to succeed. 

Europe, in general, is not a good place to setup a fund. As a result, most new managers in the region setup their funds in Delaware and you can learn more information on this topic here. 

Europe, in general, is not a good place to setup a fund. As a result, most new managers in the region setup their funds in Delaware and you can learn more information on this topic here. 

This is an impossible question to answer because LP objections are dependent on the manager's thesis and the LP archetype. Unless 1 in 5 LPs sign a PACT, a manager's thesis needs improvement. 

This is an impossible question to answer because LP objections are dependent on the manager's thesis and the LP archetype. Unless 1 in 5 LPs sign a PACT, a manager's thesis needs improvement. 

Read the following articles: https://govclab.com/2023/04/27/lp-archetypes/ https://govclab.com/the-venture-capitalists-guide-to-limited-partners/

Read the following articles: https://govclab.com/2023/04/27/lp-archetypes/ https://govclab.com/the-venture-capitalists-guide-to-limited-partners/

There are lots of funds with an Impact thesis that are over-performing while others under perform. They follow a Pareto distribution for returns just like all other funds.

There are lots of funds with an Impact thesis that are over-performing while others under perform. They follow a Pareto distribution for returns just like all other funds.

There is little impact to Venture Capital from alternative investment models. 

There is little impact to Venture Capital from alternative investment models. 

No - generally speaking, a fund manager should not register any entities until ready to start closing the Fund. Entities set up asynchronously with the complete fund structure will at minimum require additional diligence/paperwork, and i...

No - generally speaking, a fund manager should not register any entities until ready to start closing the Fund. Entities set up asynchronously with the complete fund structure will at minimum require additional diligence/paperwork, and in most cases it is easier/cheaper to discard them than to re-use them.  Depending on the domicile, there may be a way to "reserve" the entity name if desired - for example this is possible with the Delaware Secretary of State directly (at an additional cost). However note that these reservations are usually time-limited, and will need to be "released" in order to actually use the reserved name. 

The Domicile of the fund is absolutely critical. It affects a number of factors such as operational costs, tax, investments, limited partners etc.. Read the following articles: Domicile Report https://govclab.com/2021/09/25/venture-cap...

The Domicile of the fund is absolutely critical. It affects a number of factors such as operational costs, tax, investments, limited partners etc.. Read the following articles: Domicile Report https://govclab.com/2021/09/25/venture-capital-domicile-report-by-vc-lab/ Delaware is the VC Domicile of Choice: https://govclab.com/2023/06/10/delaware-is-the-vc-domicile-of-choice/

A common approach is for you to request the data room from the company and do your diligence from their systems. Another approach is to customize your Investment Inquiries form. It allows for document uploads etc..

A common approach is for you to request the data room from the company and do your diligence from their systems. Another approach is to customize your Investment Inquiries form. It allows for document uploads etc..

Read this article: https://govclab.com/2021/10/28/venture-capital-roles/ 1. It's VERY difficult to become a GP in a fund, even for those who are experienced investors. It's typically easier to start a Firm then to join one at as a GP wh...

Read this article: https://govclab.com/2021/10/28/venture-capital-roles/ 1. It's VERY difficult to become a GP in a fund, even for those who are experienced investors. It's typically easier to start a Firm then to join one at as a GP which is a very senior role. Some, firms do have a career trajectory for junior people. But even for those firms, this typically takes 10-15 years to ascend to GP role if everything goes well. 2. Venture Partners are part time roles. These are typically reserved for part-time team members who can provide strategic, operating and portfolio support. Venture Partners are typically experts in a field like souring, domain, limited partners etc... 3. Operating Partner / COO at VC Firm - The vast majority of VCs don't have this role because they are too small. However, there are several enduring large firms with a high AUM, where this role is necessary. There are several ways to get experience for this role: 1. Join a company that managers operations for lots of VC Firms, like Decile Group 2. Join a new or emerging firm at an entry level role and learn the business together with the firm. 3. Join an accelerator like Venture Institute to rapidly develop the foundational skills.

Venture capitalists add value to startups in multiple ways beyond just providing capital. They offer strategic guidance, share industry expertise, and leverage their networks to help startups forge new partnerships and identify potential...

Venture capitalists add value to startups in multiple ways beyond just providing capital. They offer strategic guidance, share industry expertise, and leverage their networks to help startups forge new partnerships and identify potential customers. Additionally, VCs can assist with hiring, as they often have access to an extensive pool of talented professionals. Additional reading: https://govclab.com/2021/11/19/the-venture-industry-explained/ https://govclab.com/2023/06/14/the-role-of-venture-capital/

General Partner (GP): In the context of venture capital funds, the general partner is the fund manager responsible for making investment decisions, managing portfolio companies, and overseeing the fund’s operations. GPs typically receive...

General Partner (GP): In the context of venture capital funds, the general partner is the fund manager responsible for making investment decisions, managing portfolio companies, and overseeing the fund’s operations. GPs typically receive management fees and a share of the fund’s profits (carried interest) as compensation for their services. Limited Partner (LP): An investor in a venture capital fund who contributes capital but does not participate in the fund’s management or investment decision-making process. Limited partners have limited liability, meaning their financial exposure is restricted to the amount of capital they have committed to the fund. They share in the fund’s profits in proportion to their investment, after the deduction of management fees and carried interest. You can find more info here: https://govclab.com/2023/04/26/how-to-invest-in-vc/

30% of new managers are former Founders or CEOs according to VC Lab's most recent report. You can find more information here: https://govclab.com/2023/02/17/nextgen-manager-report/

30% of new managers are former Founders or CEOs according to VC Lab's most recent report. You can find more information here: https://govclab.com/2023/02/17/nextgen-manager-report/

You can get sued for anything, especially if you reside in a litigious country or domicile. Typically, it's best to try to avoid combinations if the names are very common because other parties may raise trademark concerns.

You can get sued for anything, especially if you reside in a litigious country or domicile. Typically, it's best to try to avoid combinations if the names are very common because other parties may raise trademark concerns.

There are a variety of factors that contribute to the investment timeline. For example, if you are the lead investor who is setting the terms, you will do significantly more due-diligence and try to help the company circle some more new ...

There are a variety of factors that contribute to the investment timeline. For example, if you are the lead investor who is setting the terms, you will do significantly more due-diligence and try to help the company circle some more new investors. On the other hand, if you are participating in a party round with no lead which is pretty common at the pre-seed stage, you may try to accomodate the rough timeline set by the founders and other investors. A typical process takes ~1 month. However during cyclical economic slowdowns or the holidays, it's not uncommon for this timeline to be extended to to 2 months or more.

There are a number of female VCs on the Midas List: https://www.forbes.com/sites/truebridge/2022/04/12/midas-list-2022-top-female-investors/?sh=b3fd17b46b2c

There are a number of female VCs on the Midas List: https://www.forbes.com/sites/truebridge/2022/04/12/midas-list-2022-top-female-investors/?sh=b3fd17b46b2c

While fundraising, a fund should not have a publicly viewable website in order to avoid any appearance of general solicitation.  The management company can have a website with information on its team members, their past activities (subje...

While fundraising, a fund should not have a publicly viewable website in order to avoid any appearance of general solicitation.  The management company can have a website with information on its team members, their past activities (subject to confidentiality obligations) and the types of startups that they are looking to attract.  The management company should not have any reference to any fund that is raising funds.

Generally speaking, fund managers should err towards not accepting capital commitment increases after the Fund's Fundraising Period has ended. Issues of fiduciary duty can be implicated, depending on the circumstances, and enough of a to...

Generally speaking, fund managers should err towards not accepting capital commitment increases after the Fund's Fundraising Period has ended. Issues of fiduciary duty can be implicated, depending on the circumstances, and enough of a total increase can even trigger amended regulatory filings (which are public). In a practical sense, any such acceptances should be one-off exceptions made within a reasonable amount of time from the Fundraising Period ending. Within 3 months might be nominal, within 6 months might start to raise eyebrows, and beyond that said issues of fiduciary duty may become more pronounced. Note that the above guidelines are general, and the viability of any such acceptances may also depend on a Fund's particular circumstances (markups, exits, etc.). We strongly recommend discussing these  your fund administration team first.

You need to create all 3 entities at the same time, including the ManCo. The distribution strategy referred to in Sprint 9 (https://vcl.to/ManCo-strategy), refers to how the ManCo will be setup to distribute fees and cary to the managing...

You need to create all 3 entities at the same time, including the ManCo. The distribution strategy referred to in Sprint 9 (https://vcl.to/ManCo-strategy), refers to how the ManCo will be setup to distribute fees and cary to the managing partners and potential employees. 

Please read this article on the structure of the Venture Studio: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/

Please read this article on the structure of the Venture Studio: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/