All Questions

It all depends on what is spelled out within the legal documents, but most times, management fees are calculated on committed capital.

It all depends on what is spelled out within the legal documents, but most times, management fees are calculated on committed capital.

Yes you can disclose the terms. It’s usually not good practice to mention co-investors unless you have permission.

Yes you can disclose the terms. It’s usually not good practice to mention co-investors unless you have permission.

You can not generally solicit interest from LPs and there are no “secret lists” that work. You need to use Connectors and mine your existing network to find LPs. If you are going to do an event, it needs to be a small private dinner or ...

You can not generally solicit interest from LPs and there are no “secret lists” that work. You need to use Connectors and mine your existing network to find LPs. If you are going to do an event, it needs to be a small private dinner or gathering where all invited are known and wealthy. Follow the guidance in the weekly find building Sprints, and you will meet and cultivate LPs.

You don't necessarily need an IC. If you want it, you can build it however it's up to you how you build it. Some have only the GPs. Others have an LP and others have a set of key individuals that are uniquely qualified to do well. That...

You don't necessarily need an IC. If you want it, you can build it however it's up to you how you build it. Some have only the GPs. Others have an LP and others have a set of key individuals that are uniquely qualified to do well. That being said, you don't need one, and it depends on your investment strategy and pace.

Offering the opportunity for your LPs to invest along side your fund (if there is additional room in the round) or in following rounds can provide additional value to both your LPs and portfolio companies. In these cases, you may want to...

Offering the opportunity for your LPs to invest along side your fund (if there is additional room in the round) or in following rounds can provide additional value to both your LPs and portfolio companies. In these cases, you may want to consider an SPV to roll up these investments and take carry. This should be clarified in advance.

You can remove the Anchor section in your Fund Overview document if you don't plan to have one, which is common for new and emerging managers.

You can remove the Anchor section in your Fund Overview document if you don't plan to have one, which is common for new and emerging managers.

No it does not. Venture Partners are part time and by definition have limited bandwidth, as a result. So in this case, they can only handle a limited number of companies.

No it does not. Venture Partners are part time and by definition have limited bandwidth, as a result. So in this case, they can only handle a limited number of companies.

We use SumSub for AML and KYC purposes (though they are not true "background check" services"). We don't have a deal with these vendors for accelerator participants as of this message. 

We use SumSub for AML and KYC purposes (though they are not true "background check" services"). We don't have a deal with these vendors for accelerator participants as of this message. 

VCs typically don't sign NDAs. Given how many deals they see, it's just not prudent to so usually. There are exceptions to all of this of course, but it's uncommon.

VCs typically don't sign NDAs. Given how many deals they see, it's just not prudent to so usually. There are exceptions to all of this of course, but it's uncommon.

For investors, it’s definitely post money SAFE because they set a fixed ownership percentage.

For investors, it’s definitely post money SAFE because they set a fixed ownership percentage.

Tell them that the PACT is non-binding and that you will share your data room with them after the sign a pact. Providing more info will not close the deal. It’s usually the opposite.

Tell them that the PACT is non-binding and that you will share your data room with them after the sign a pact. Providing more info will not close the deal. It’s usually the opposite.

Rolling funds are great for part-time angel investors that want to add more structure to their practice. They are very sub-optimal for enduring venture capital firms. They are also very difficult to manage when you have a small fund beca...

Rolling funds are great for part-time angel investors that want to add more structure to their practice. They are very sub-optimal for enduring venture capital firms. They are also very difficult to manage when you have a small fund because of all the infrastructure costs, unless you use a platform like AngelList. However, AngelList owns the entities and the bank account, so it’s impossible to build and enduring VC firm on it. Finally, most LPs are not familiar with them and you will make your fundraise significantly more challenging. If your goal is to build an enduring VC firm, rolling funds are very difficult to scale.

The recommended time frame is ASAP. Subsequent closings will depend on demand - however once you do a 1st close most LPAs specify that you have 18 months to close the rest of the fund (often called the Fundraising Period). Depending on t...

The recommended time frame is ASAP. Subsequent closings will depend on demand - however once you do a 1st close most LPAs specify that you have 18 months to close the rest of the fund (often called the Fundraising Period). Depending on the LPA, this can be extended, however this isn't always an option, and may not be strategically a good move.  TL:DR - don't rely on extending the Fundraising Period if possible.   Decile Partners and VC Lab strongly recommend continuing to prioritize fundraising (~80% of a fund manager's time and focus) until the entire fund has been closed. 

It’s reasonable for you to invest in companies that are incorporated in Delaware. A lot of companies in LATAM do this because it gives them access to international investors. That being said, it really depends on your strategy and deal f...

It’s reasonable for you to invest in companies that are incorporated in Delaware. A lot of companies in LATAM do this because it gives them access to international investors. That being said, it really depends on your strategy and deal flow. If most of your Columbian deal flow is incorporated locally, you may not have a choice and they you may have to choose for efficiency purposes. Please be sure not to provide any tax advice to prospective portfolio companies or LPs alike. 

The allocation strategy between initial investments and reserving capital for follow-ons depends on the fund size and the strategy. Many, or even most, small Fund 1s don’t have reserves because due to their size. 

The allocation strategy between initial investments and reserving capital for follow-ons depends on the fund size and the strategy. Many, or even most, small Fund 1s don’t have reserves because due to their size. 

Yes, you can include VPs on your Team slide

Yes, you can include VPs on your Team slide

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

No. First close them (money in the bank). Then, you may ask them for permission to use their name in future closes.

No. First close them (money in the bank). Then, you may ask them for permission to use their name in future closes.

No. You should avoid this. Say something like: out of respect for their privacy we will not disclose this information, and we would not do that with you either should we get a similar request in the future.

No. You should avoid this. Say something like: out of respect for their privacy we will not disclose this information, and we would not do that with you either should we get a similar request in the future.

Those VPs will definitely have conflicts and the firms they work for will have to disclose this conflict to their LPs.

Those VPs will definitely have conflicts and the firms they work for will have to disclose this conflict to their LPs.