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Here is a great model that we recommend which is part of the VC Lab curriculum: https://foresight.is

Here is a great model that we recommend which is part of the VC Lab curriculum: https://foresight.is

As a general rule of thumb, the minimum transfer of a previous angel investment into a VC fund should be a $25K position at cost. Transfers should resemble, as much as possible, what an actual investment looks like in terms of stage of e...

As a general rule of thumb, the minimum transfer of a previous angel investment into a VC fund should be a $25K position at cost. Transfers should resemble, as much as possible, what an actual investment looks like in terms of stage of entry, sector and amount. A transfer should never be less than 10% of the target investment amount of the final fund, so, if a fund is planning to invest $1 MM, then the minimum transfer should be $100K. 

Various LP Archetypes have significantly different diligence requirements. Here are some high-level requirements: High Net Worth Individuals (HNWIs): Many HNWIs sign PACTs shortly after the initial pitch meeting and don't require a lot ...

Various LP Archetypes have significantly different diligence requirements. Here are some high-level requirements: High Net Worth Individuals (HNWIs): Many HNWIs sign PACTs shortly after the initial pitch meeting and don't require a lot of materials if any. Some may require a pitch deck or an executive summary. Family Offices: Family Offices typically require full data room access and references. Institutional LPs (Fund Of Funds, Sovereign Wealth Funds, Endowments etc..): Institutional LPs require all the information of Family Offices. In addition, they will do significantly more reference checks, diligences your back office vendors, operations systems, speak with your portfolio founders and do a lot of off list reference checks. Corporates: Corporate LPs require an enterprise sales process. Since they are investing to achieve some sort of strategic goal, they will focus their diligence on how your fund can help their company. Like most enterprise sales cycles, they can take 12 - 18 months to close or longer. For more information about the requirements of LP Archetypes, watch this video.

If the agreement is between you and the company, then so will the warehouse transaction. 

If the agreement is between you and the company, then so will the warehouse transaction. 

With high net worth individuals, the best approach is to not over inform. The more information, the more reasons for the LPs to say no. It's usually sub optimal to present this LP archetype with a data-room as a result. Rather consider u...

With high net worth individuals, the best approach is to not over inform. The more information, the more reasons for the LPs to say no. It's usually sub optimal to present this LP archetype with a data-room as a result. Rather consider using the data room to drip information as need. For example, let's suppose that the LP signed a PACT and they ask for additional information. Then, you can send them a link to the folder in your data room that contains the deck. Then, if let's say they request to learn about your team, you can unlock that folder for them. With HNW LPs less is more.

No. A fund can not accept advisory shares. Also, accepting shares as an individual creates various conflicts. Funds can however get warrant coverage. 

No. A fund can not accept advisory shares. Also, accepting shares as an individual creates various conflicts. Funds can however get warrant coverage. 

Attribution answers the question of how critical you were in making that specific investment that happen at the fund. For example - did you source the deal from external channels or were given the deal internally due to your particular d...

Attribution answers the question of how critical you were in making that specific investment that happen at the fund. For example - did you source the deal from external channels or were given the deal internally due to your particular domain expertise, for instance? The point is LPs need to believe that once you left the old fund, your personal network is strong enough to attract the best founders to your new fund. To do this, they are likely to require the following in diligence: 1) require the permission of the partners/organization to share the performance of the deals you worked with LPs  2) allow LPs to diligence records of deal related performance data and information such as Deal Memos 3) diligence records showing that you sourced and invested in those deals

Below are some high-level definitions with ranges. Please note that the metrics vary by region and sector. Pre-Seed Traction: Idea -> Early Signal of Product-Market Fit Product: Prototype -> Customer Product usage Team: Founders -> Cor...

Below are some high-level definitions with ranges. Please note that the metrics vary by region and sector. Pre-Seed Traction: Idea -> Early Signal of Product-Market Fit Product: Prototype -> Customer Product usage Team: Founders -> Core Founding Team Revenue: No Revenue -> First Paying Customers/Pilots Seed Traction: Paying Customers -> Product-Market Fit with Core Customers Product: Early User Retention -> Growth in Product Usage Team: Core Founding Team -> First Employees  Revenue: First Paying Customers/Pilots -> Expanding Customer Base

All of your previous work at a venture capital fund, including the performance of the portfolio, is normally the intellectual property of that venture capital firm and can not be used without explicit consent. Consent is granted by secur...

All of your previous work at a venture capital fund, including the performance of the portfolio, is normally the intellectual property of that venture capital firm and can not be used without explicit consent. Consent is granted by securing a signed attribution letter from the venture capital firm.  Additionally, performance track record is a closely guarded secret in the venture capital industry. Funds do not want their track record shared, and also portfolio companies do not want their performance shared. As a result, securing an attribution letter to share past performance is important from both a legal and an ethical standpoint.

It's not necessary to have one. This is typically handled at the ManCo level, not the fund. Also, see the Limited Operations Mode in the cornerstone LPA, downloadable here, which states:   “Limited Operations Mode. In the event the Limi...

It's not necessary to have one. This is typically handled at the ManCo level, not the fund. Also, see the Limited Operations Mode in the cornerstone LPA, downloadable here, which states:   “Limited Operations Mode. In the event the Limited Partners claim there exists a Material Breach, Limited Partners holding more than 66 ⅔% of the aggregate Commitment Percentages held by all Limited Partners (“Requisite Majority”) may cause the Fund and General Partner to enter into “Limited Operations Mode.” The period of Limited Operations Mode shall commence at the time that a Requisite Majority provides written notice to General Partner particularizing the facts constituting a Material Breach and ending automatically on the date ninety (90) days later, which period may be extended by successive ninety (90) day periods if, and only if, a Requisite Majority provides written notice extending such period. During Limited Operations Mode General Partner and the Limited Partners will negotiate in good faith to resolve the dispute. ”

Please review this article on track record. 

Please review this article on track record. 

This is possible via a self directed IRA with experience in venture capital such as STRATA.

This is possible via a self directed IRA with experience in venture capital such as STRATA.

This depends on local regulations. In many jurisdictions, unpaid internships are not legal.

This depends on local regulations. In many jurisdictions, unpaid internships are not legal.

Management fees are typically paid on the basis of committed capital. Fees are normally drawn from the called capital, which will be defined in the LPA. You may find this article, this article and this article helpful. 

Management fees are typically paid on the basis of committed capital. Fees are normally drawn from the called capital, which will be defined in the LPA. You may find this article, this article and this article helpful. 

For the thesis, use the place where the fund is being launched in and where it plans to make investments. LPs generally do not like to invest in multiple countries, as funds are a pass through vehicle. Most LPs prefer to invest in a spec...

For the thesis, use the place where the fund is being launched in and where it plans to make investments. LPs generally do not like to invest in multiple countries, as funds are a pass through vehicle. Most LPs prefer to invest in a specified country or region.

For new managers with limited investing experience, the fund size should be $5 MM to $10 MM in the developed world and $2.5 to $5 MM in the developing world. If a new manager has extensive angel experience with strong returns or venture ...

For new managers with limited investing experience, the fund size should be $5 MM to $10 MM in the developed world and $2.5 to $5 MM in the developing world. If a new manager has extensive angel experience with strong returns or venture experience dealing with limited partners, then the fund size can be up to twice that size, ranging from $10 MM to $20 MM and $5 MM to $10 MM respectively.  For emerging managers on Fund III or Fund III, the next fund size can be 1x, 2x or 3x the previous fund size. If the returns from previous fund or funds are exceptional, an emerging manager can consider a fund size as large as 5x the previous fund size.  The goal of any manager is to have a target fund size that they can easily hit or exceed. It is very difficult to recover from raising less than your target fund size. Conversely, oversubscribing is lolled at favorably by all parties.  If a manager can not quickly raise 15% to 20% of the fund size from friends and confidants, then the fund size is too large. 

It's unlikely that the large firm will agree to this arrangement with the VP due to conflicts of interest. It also works vice versa where it creates conflicts of interest for your fund and you will need to disclose it.

It's unlikely that the large firm will agree to this arrangement with the VP due to conflicts of interest. It also works vice versa where it creates conflicts of interest for your fund and you will need to disclose it.

DO NOT INCORPORATE ANYTHING. Stop now. This is a major waste of time and effort. You need a minimum of 10%+ hard circled via PACTs to begin a formation process. Then, you need to work with super specialized VC formation attorneys to get ...

DO NOT INCORPORATE ANYTHING. Stop now. This is a major waste of time and effort. You need a minimum of 10%+ hard circled via PACTs to begin a formation process. Then, you need to work with super specialized VC formation attorneys to get this done and the only viable place is Delaware.  Your law firm must incorporate all 3 entities at the same time and also create all the operating agreements. Decile Launch includes all 3 entities and the operating agreements: ManCo, GP & LP.  With respect to tax, don't provide tax advice to your LPs. This is for your reference only. LLCs are flow through entities. Tax burdens are created when money is distributed to your LPs and they must pay it on their personal returns. Capital gains are not sourced to a specific location. They are taxed in the jurisdiction of the ultimate beneficiary. 

They are both compensated with a venture partner agreement and advisors typically get a bit less carry. 

They are both compensated with a venture partner agreement and advisors typically get a bit less carry. 

Fund Admin is a component of the Back Office function. Typically Fund Admin includes accounting, reporting and filings. Back Office includes a variety of other functions that can be in house or outsourced or both, such as Treasury, inves...

Fund Admin is a component of the Back Office function. Typically Fund Admin includes accounting, reporting and filings. Back Office includes a variety of other functions that can be in house or outsourced or both, such as Treasury, investment reviews, software, etc..