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Limited Partner (LP) commitments to invest in the fund - defined in signed Limited Partner Agreements (LPAs) and Subscription Agreements. Decile’s Cornerstone LPA template integrates a Subscription Agreement - a separate one is not requi...

Limited Partner (LP) commitments to invest in the fund - defined in signed Limited Partner Agreements (LPAs) and Subscription Agreements. Decile’s Cornerstone LPA template integrates a Subscription Agreement - a separate one is not required.

The percentage of profits that will be paid to the General Partner (GP) - calculated following repayment of invested capital.

The percentage of profits that will be paid to the General Partner (GP) - calculated following repayment of invested capital.

The total amount of capital committed to a VC or PE Fund, including the GP commit. 

The total amount of capital committed to a VC or PE Fund, including the GP commit. 

Capital Recycling is the process of reinvesting proceeds from the sale/exit of a portfolio company into new investments. VC Lab strongly recommends avoiding this for Fund I. 

Capital Recycling is the process of reinvesting proceeds from the sale/exit of a portfolio company into new investments. VC Lab strongly recommends avoiding this for Fund I. 

The fund manager “calls” capital to request the Limited Partners (LPs) contribute (by wire) a portion of their Committed Capital to the fund for deployment (and for fees). Called Capital is simply the amount that has been called. 

The fund manager “calls” capital to request the Limited Partners (LPs) contribute (by wire) a portion of their Committed Capital to the fund for deployment (and for fees). Called Capital is simply the amount that has been called. 

Bootstrapping refers to the practice of starting and growing a business without external funding. Instead of relying on external investors, entrepreneurs use their own savings, personal funds, revenue generated by the business, and resou...

Bootstrapping refers to the practice of starting and growing a business without external funding. Instead of relying on external investors, entrepreneurs use their own savings, personal funds, revenue generated by the business, and resourcefulness to fund the company's operations and growth.

Under U.S. securities laws, “accredited investors” are eligible to invest in certain unregistered securities.  In order to qualify as an accredited investor, an individual or entity must meet certain criteria.  Individuals can qualify by...

Under U.S. securities laws, “accredited investors” are eligible to invest in certain unregistered securities.  In order to qualify as an accredited investor, an individual or entity must meet certain criteria.  Individuals can qualify by meeting certain financial criteria: (a) net worth over $1 million, excluding primary residence (individually or with spouse or partner); or income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year. Individuals can also qualify by meeting certain professional criteria: (a) investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82); (b) directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company); (c) any “family client” of a “family office” that qualifies as an accredited investor; or (d) for investments in a private fund, “knowledgeable employees” of the fund.  Entities can qualify as an accredited investor as follows: (a) entities owning investments in excess of $5 million; (b) corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office with assets in excess of $5million; (c) investment advisers (SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers; or (d) a bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company.

Independent formal appraisal of the fair market value (FMV) of a private company’s common stock (the stock reserved mainly for founders and employees). Named after Section 409A of the U.S. Internal Revenue Code, it's required by the IRS ...

Independent formal appraisal of the fair market value (FMV) of a private company’s common stock (the stock reserved mainly for founders and employees). Named after Section 409A of the U.S. Internal Revenue Code, it's required by the IRS to ensure that stock options and other equity-based compensation are being issued at fair market value.

Shorthand for 2% management fees and 20% carried interest

Shorthand for 2% management fees and 20% carried interest

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

The Capital Commitment is normally made by the Managing Directors, who are the owners of the Management Company.

The Capital Commitment is normally made by the Managing Directors, who are the owners of the Management Company.

If you want to be an independent fund manager and to launch an enduring venture capital firm, co-branding is a bad idea. You will be an employee of the other firm for 10+ years and you will have little control.

If you want to be an independent fund manager and to launch an enduring venture capital firm, co-branding is a bad idea. You will be an employee of the other firm for 10+ years and you will have little control.

Sexual health and well-being.

Sexual health and well-being.

Compare the price per share between your purchase price and the current price when acquired, and then record this differential as a markup. This assumes that you will have the same number of shares. If the share counts differ, then just ...

Compare the price per share between your purchase price and the current price when acquired, and then record this differential as a markup. This assumes that you will have the same number of shares. If the share counts differ, then just calculate the value of the ownership position before and after using the price that you paid as the value at the start. Technically, since it is an all stock acquisition, you have not exited, so I would not characterize this as an exit.

This is a sub-optimal approach for building an during VC firm. VCs are setup with 3 entity structures and it's highly recommended not deviate from this approach. LPs will not count the SPV as fund 1. Therefore, on the next fund, the GP w...

This is a sub-optimal approach for building an during VC firm. VCs are setup with 3 entity structures and it's highly recommended not deviate from this approach. LPs will not count the SPV as fund 1. Therefore, on the next fund, the GP will face the same fundraising challenges of all other new managers on Fund 1.

Take your deck and put it into a 1 pager. You have all the info that you need.

Take your deck and put it into a 1 pager. You have all the info that you need.

Yes. You should set a lower target and over subscribe. Fund models scale up well, but don’t scale down.

Yes. You should set a lower target and over subscribe. Fund models scale up well, but don’t scale down.

There are some merits to this strategy, but there are limitless VC strategies that can work as well.

There are some merits to this strategy, but there are limitless VC strategies that can work as well.

There are regulations against this in the US that need to be discussed with your counsel.

There are regulations against this in the US that need to be discussed with your counsel.