All Questions

There is no ‘right’ way to diversify. 25 companies is a good starting point, but for some 50 may make more sense, while for others 20. At pre-seed, it’s super risky, so you need to make more bets.

There is no ‘right’ way to diversify. 25 companies is a good starting point, but for some 50 may make more sense, while for others 20. At pre-seed, it’s super risky, so you need to make more bets.

In general, you can raise from international LP as long as your fund or the investor is not affected by regulations like CFIUS. 

In general, you can raise from international LP as long as your fund or the investor is not affected by regulations like CFIUS. 

It will be the GP. Don’t do this until after you close.

It will be the GP. Don’t do this until after you close.

There is no issue with building up your network provided that you are not mentioning your fund while fund raising or soliciting in any manner that could be considered general solicitation.

There is no issue with building up your network provided that you are not mentioning your fund while fund raising or soliciting in any manner that could be considered general solicitation.

The Taylor Davidson Runway Budgeting Tool can help plan. As an investor, you're looking for this investment to bring the company to a significant milestone where next round investors will be motivated to invest. Investment usually takes ...

The Taylor Davidson Runway Budgeting Tool can help plan. As an investor, you're looking for this investment to bring the company to a significant milestone where next round investors will be motivated to invest. Investment usually takes longer than planned, so having next-round conversations earlier and lining up those investors is a key value of pre-seed/seed stage VCs.

Hey Yinka Adebiyi don’t engage.

Hey Yinka Adebiyi don’t engage.

You invest as an individual and then move it into the fund later, correct. You will need to secure approval from the company to change the owner, so notify them ahead of time.

You invest as an individual and then move it into the fund later, correct. You will need to secure approval from the company to change the owner, so notify them ahead of time.

It is hard to make ownership based on fundraising for a number of reasons. First, it is just hard to track who does what if the partnership is functioning well, since one partner may know the investor, yet another partner closes the inve...

It is hard to make ownership based on fundraising for a number of reasons. First, it is just hard to track who does what if the partnership is functioning well, since one partner may know the investor, yet another partner closes the investor. Furthermore, compensating directly based on money brought in is regulated in most domiciles. So, VC Lab recommends that founding team that will run the firm for decades be Managing Partners in the Management Company with ownership based on overall contribution, and everyone else be Partners or Venture Partners in the General Partner with lessor ownership in the carry of the specific fund.

Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.

Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.

It really depends on many variables, but good experience is rare in the VC industry. *Principal*: $250K to $500K per year plus 0.5 to 5.0% carried interest. *Partner*: $500K to $2 MM per year plus 2.5 to 10+% carried interest. Salarie...

It really depends on many variables, but good experience is rare in the VC industry. *Principal*: $250K to $500K per year plus 0.5 to 5.0% carried interest. *Partner*: $500K to $2 MM per year plus 2.5 to 10+% carried interest. Salaries will go down with higher carried interest in some cases. Your best bet is to try and hire someone that you know from outside the industry, and then things are more negotiable.

Normally not, but it depends. Most Venture Studios or Venture Builders or Company Builders are funded like startups, but there is a lot of variation worldwide.

Normally not, but it depends. Most Venture Studios or Venture Builders or Company Builders are funded like startups, but there is a lot of variation worldwide.

Foresight.is has a bunch of handy tools for projections etc… check this out:  https://foresight.is/vclab/model That being said, just focus on the angel investments that you have made that are on thesis with your firm. Then, try to calcul...

Foresight.is has a bunch of handy tools for projections etc… check this out:  https://foresight.is/vclab/model That being said, just focus on the angel investments that you have made that are on thesis with your firm. Then, try to calculate markups on those investments.

Read the following articles: https://govclab.com/2022/06/28/general-solicitation/ https://govclab.com/2022/01/11/tips-to-avoid-general-solicitation-for-vcs/

Read the following articles: https://govclab.com/2022/06/28/general-solicitation/ https://govclab.com/2022/01/11/tips-to-avoid-general-solicitation-for-vcs/

The chances of them investing is very low, so don't waste time. They will do extensive background reference checks on the general partners, speak with portfolio company CEOs, review the Data Room and validate the model.

The chances of them investing is very low, so don't waste time. They will do extensive background reference checks on the general partners, speak with portfolio company CEOs, review the Data Room and validate the model.

A common approach is to to show a summary of the deals on one slide and then put summary in the appendix. Put traction and funding stats.

A common approach is to to show a summary of the deals on one slide and then put summary in the appendix. Put traction and funding stats.

Yes - you must focus on accredited investors

Yes - you must focus on accredited investors

You should try banking with a VC friendly financial institution like Grasshopper Bank.

You should try banking with a VC friendly financial institution like Grasshopper Bank.

Venture Funds invest in speculative private company equity for returns from an exit. This is a proven model globally. Factoring, investing in profits or buying tokens is not venture capital. Trying to buy profits is not a proven model, ...

Venture Funds invest in speculative private company equity for returns from an exit. This is a proven model globally. Factoring, investing in profits or buying tokens is not venture capital. Trying to buy profits is not a proven model, and the the only examples that have worked are in gaming. The problem is that most talented entrepreneurs don't want to sell profits, so you are left trying to convenience lower caliber entrepreneurs to cut you in on their profits.

It’s not worth your time. The return on invest is just not there. Besides, if you’re going to get this fund off the ground, you will probably not have time for this anyway.

It’s not worth your time. The return on invest is just not there. Besides, if you’re going to get this fund off the ground, you will probably not have time for this anyway.

It's possible but there are conflicts of interest within their own funds that must be disclosed and overcome to make this happen. It's usually pretty complicated, that it's not worth it.

It's possible but there are conflicts of interest within their own funds that must be disclosed and overcome to make this happen. It's usually pretty complicated, that it's not worth it.