All Questions

The minimum ticket for a 1st close should be no less then $100k. Then with subsequent closings this minimum should go up. However, rather then communicating what the minimum ticket is to LPs, GPs should mention what the maximum ticket is. 

The minimum ticket for a 1st close should be no less then $100k. Then with subsequent closings this minimum should go up. However, rather then communicating what the minimum ticket is to LPs, GPs should mention what the maximum ticket is. 

There are two types of Deal Warehouse companies for a fund: a Pipeline deal and a portfolio Investment. For the Pipeline deals, the manager creates a strong relationship with the CEO of a target company and works to align the closing da...

There are two types of Deal Warehouse companies for a fund: a Pipeline deal and a portfolio Investment. For the Pipeline deals, the manager creates a strong relationship with the CEO of a target company and works to align the closing date of the fund with the closing date of the round. It often takes longer to close the fund, so the manager asks the CEO to hold a position in the round after the round closes, which is ideal as it is closer in time to the next markup. These deals are shared with LPs by describing the business without sharing the company name.  For portfolio Investments, a manager personally makes an investment into the company and then transfers the investment at cost into the fund after closing. Ideally, the investment will be marked up before the transfer, and the manager gives the benefit of the markup to the incoming LPs. These investments are shared with LPs by providing the full details to get LPs excited by the opportunity to invest in the fund. 

All LPs should have the same terms, especially in Fund 1. Otherwise, you're introducing a major legal, operations and reporting burden while creating un-necessary fundraising risk due to the necessary disclosures to the other LPs.

All LPs should have the same terms, especially in Fund 1. Otherwise, you're introducing a major legal, operations and reporting burden while creating un-necessary fundraising risk due to the necessary disclosures to the other LPs.

Read this the VC Lab guide to LP archetypes. Institutional LPs are much more difficult to close as are LPs that don't know you, LPs that don't currently invest or believe in technology, LPs that are older than 65 as venture investing is ...

Read this the VC Lab guide to LP archetypes. Institutional LPs are much more difficult to close as are LPs that don't know you, LPs that don't currently invest or believe in technology, LPs that are older than 65 as venture investing is a long game, etc.

Decile Start customers enjoy benefits including but not limited to: • Private office hours • A private slack channel • Expert assistance with questions • Assistance with LP materials and interactions • Pitch optimization • General compli...

Decile Start customers enjoy benefits including but not limited to: • Private office hours • A private slack channel • Expert assistance with questions • Assistance with LP materials and interactions • Pitch optimization • General compliance guidance Please contact Mike Suprovici for more details. 

You can learn about Decile Capital here: https://decilegroup.com/decile-capital/

You can learn about Decile Capital here: https://decilegroup.com/decile-capital/

Please see think link to learn more about Decile Partners: https://govclab.com/2023/05/26/meet-decile-launch/

Please see think link to learn more about Decile Partners: https://govclab.com/2023/05/26/meet-decile-launch/

Please read this for more information regarding Decile Launch, including the cost: https://govclab.com/2023/05/26/meet-decile-launch/

Please read this for more information regarding Decile Launch, including the cost: https://govclab.com/2023/05/26/meet-decile-launch/

PACTs are a non-binding letters of intent signed by a qualified investors to indicate their desire to invest a specific amount of money into a venture capital fund. They are important because they help the fund manager see who is hard-ci...

PACTs are a non-binding letters of intent signed by a qualified investors to indicate their desire to invest a specific amount of money into a venture capital fund. They are important because they help the fund manager see who is hard-circled or serious about committing money to their fund. 

As of this date, Decile Start costs $10K. Please contact Mike Suprovici for more details. 

As of this date, Decile Start costs $10K. Please contact Mike Suprovici for more details. 

As of the date of this answer, Decile Partners can generally work with funds intending to domicile in Delaware (USA) and Ontario Canada. 

As of the date of this answer, Decile Partners can generally work with funds intending to domicile in Delaware (USA) and Ontario Canada. 

The best way to meet new LPs is to activate your current network to provide you with introductions. 

The best way to meet new LPs is to activate your current network to provide you with introductions. 

The majority of first closes consist of trusted 1st degree connections. 

The majority of first closes consist of trusted 1st degree connections. 

The distribution waterfall is a methodology for splitting distributions between the GP entity and Limited Partners. Typically, the GP takes 20% carried interest on profits. The distribution waterfall outlines how and when this carried in...

The distribution waterfall is a methodology for splitting distributions between the GP entity and Limited Partners. Typically, the GP takes 20% carried interest on profits. The distribution waterfall outlines how and when this carried interest is allocated. An American waterfall refers to a deal-by-deal method of allocating carried interest. This means that the GP entity receives carry on a deal-by-deal basis before investors are made whole overall. This allows the GP to receive carried interest sooner. The American waterfall is juxtaposed with the European waterfall with is a method by which all Limited Partners’ capital contributions (including unrealized investments) have been repaid before the GP entity receives its carried interest. While the American waterfall allows you to take carry earlier usually, in practice, you should not take the entirety of your share of carried interest until Limited Partners are made whole to avoid having to clawback the GP carried interest.

Part of 1065 filing. Partner specific form which details distributive share of all income and expense items incurred by the partnership.

Part of 1065 filing. Partner specific form which details distributive share of all income and expense items incurred by the partnership.

A specific US federal tax exemption that allows investors in Qualified Small Business (defined as under $50M capitalization) for some capital gains tax exemption (up to 100%) based on how long the stock is held (minimum 5 years) up to $1...

A specific US federal tax exemption that allows investors in Qualified Small Business (defined as under $50M capitalization) for some capital gains tax exemption (up to 100%) based on how long the stock is held (minimum 5 years) up to $10mm. This provision is a frequent target of proposed tax law changes, though (as of January 2023) it is still in place.

Under U.S. securities laws, the sale of securities, including fund interests, require either registration with the S.E.C. which is expensive and time consuming, or such sale must be exempt from registration under the rules.  Regulation D...

Under U.S. securities laws, the sale of securities, including fund interests, require either registration with the S.E.C. which is expensive and time consuming, or such sale must be exempt from registration under the rules.  Regulation D is the primary regulation relied on by funds and companies to be exempt from registration.  Rules 506(b) and 506(c) of Regulation D are the primary rules that funds  raise capital with an exemption from registration.  The  distinction between the two rules is that under 506(c), the issuer is permitted to advertise the offering, also know as general solicitation, however the issuer must take reasonable steps to verify that the purchasers are "accredited investors" under the rules.  It is common for issuers to hire a third party service provider to perform the verification.  Under a 506(b) offering, each investor is permitted to self-certify they are an accredited investor.

A preferred stock that may be converted into common stock or another class of preferred stock, either voluntarily or mandatory at an agreed conversion ratio.  Other provisions may include dividends, liquidation preferences, voting or man...

A preferred stock that may be converted into common stock or another class of preferred stock, either voluntarily or mandatory at an agreed conversion ratio.  Other provisions may include dividends, liquidation preferences, voting or management rights, and anti-dilution. Recommended general references are "Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist" and "The Business of Venture Capital: The Art of Raising a Fund, Structuring Investments, Portfolio Management, and Exits"

An investment vehicle - a loan (at some nominal interest rate, but required) that converts into stock in the company when the company does the next Priced Round. This is done to: 1) avoid the legal overhead of a Priced Round and 2) avoid...

An investment vehicle - a loan (at some nominal interest rate, but required) that converts into stock in the company when the company does the next Priced Round. This is done to: 1) avoid the legal overhead of a Priced Round and 2) avoid the possibly challenging negotiation over the actual valuation of the company - kicking the valuation can down the road. There may a valuation cap or discount to compensate and incentivize these earlier investors for the additional risk.