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Decile Partners generally works with and recommends the following standardized and scalable structure for Venture Capital firms/funds (Delaware domicile): • Management Company (ManCo) formed as a limited liability company. This is where ...

Decile Partners generally works with and recommends the following standardized and scalable structure for Venture Capital firms/funds (Delaware domicile): • Management Company (ManCo) formed as a limited liability company. This is where the founders and owners of the Firm sit as managing partners. The ManCo owns the brand, any intellectual property - this is also where vendors and staff (long term) sit.  • General Partner (GP) formed as a limited liability company. This entity is majority owned by the ManCo, receives the carried interest, and is also where any partners managing only one Fund (as opposed to the Firm) sit. Venture Partners earning a % of the carried interest for only one Fund will also sit here. Note that while confusing, "GP" here refers to the entity, not to an individual who may be titled as a "General Partner" separately - be sure to distinguish.  • Limited Partnership (the Fund) formed as a limited partnership. This entity is where the limited partners invest into, and where deployments into portfolio companies come out of. This is also the entity from which distributions flow.  There are other  ways to set up a Venture Capital firm/fund, though structures can become quite complex over time to accommodate the needs of certain investors; for example the manager may set up side vehicles, parallel funds, master-feeder structures, blockers in consideration of tax or other regulatory  issues.

No, the fund origination fees collected from Limited Partners (LPs) that join after the fund is closed do not get redistributed to the initial LPs. These fees are typically used to cover the costs associated with setting up and operating...

No, the fund origination fees collected from Limited Partners (LPs) that join after the fund is closed do not get redistributed to the initial LPs. These fees are typically used to cover the costs associated with setting up and operating the fund, such as legal and accounting fees, and are not redistributed to other LPs.

In the registration confirmation email they are provided with add to calendar links. And immediately after registering they are shown iCal, outlook, and gCal links.

In the registration confirmation email they are provided with add to calendar links. And immediately after registering they are shown iCal, outlook, and gCal links.

Please follow these steps, see screenshots for clarification. • Navigate to Events. • Click on the respective event. • You will see three menu options: "Event Details", "Settings", and "Event Attendees". • Click on "Event Attendees". • C...

Please follow these steps, see screenshots for clarification. • Navigate to Events. • Click on the respective event. • You will see three menu options: "Event Details", "Settings", and "Event Attendees". • Click on "Event Attendees". • Click on "Edit Stages". • Click on the "Invited" stage to expand it. • Notice the first two tasks are automated emails. • Click on the "Edit task" symbol for the task you want to edit. • To turn off automation for the second email, untoggle the "Automate this task" button. • Click on Save.

In general, the fund admin capabilities of Canada are lacking the volume and professionalism of vendors that you see in other established fund domicles. You may want to consider working with a reasonably priced law firm or use the US for...

In general, the fund admin capabilities of Canada are lacking the volume and professionalism of vendors that you see in other established fund domicles. You may want to consider working with a reasonably priced law firm or use the US for your SPVs. 

If an LP unfortunately passes away, said LP's partnership interest will be handled by the arrangements made with respect to the LP's heirs, executors/administrators of an estate, successors, etc. The LP is responsible for setting these u...

If an LP unfortunately passes away, said LP's partnership interest will be handled by the arrangements made with respect to the LP's heirs, executors/administrators of an estate, successors, etc. The LP is responsible for setting these up. The aforementioned arrangements will vary and can be very custom - additionally each country/state may have different regulations and requirements regarding them. Therefore agreements (the LPA for example) generally remain silent on any specifics.

Legal fees are sometimes reimbursed to lead investors in priced rounds with a cap, such as $25K for a Series A investment. Follow-on and other participating investors do not normally get expenses reimbursed. Angel, pre-seed, and seed rou...

Legal fees are sometimes reimbursed to lead investors in priced rounds with a cap, such as $25K for a Series A investment. Follow-on and other participating investors do not normally get expenses reimbursed. Angel, pre-seed, and seed rounds are commonly done with SAFE notes, and these lightweight agreements do not have any expense reimbursements associated with them. Reimbursement of investor expenses related to a deal is normally agreed in the terms, often with a cap, and, after the investment is complete, a bill is submitted to the company for reimbursement according to the agreement. If there is not explicit agreement in writing, then there is not reimbursement. 

Investors in the ManCo will get carried interest in all future funds. While their investment provides working capital in Fund 1, GPs will grow very resentful should the firm be successful in later funds because they will share carry with...

Investors in the ManCo will get carried interest in all future funds. While their investment provides working capital in Fund 1, GPs will grow very resentful should the firm be successful in later funds because they will share carry with the investor in perpetuity.  In order to raise capital into the ManCo, or the GP, you need to add a valuation for the entity. This will impact the price per share moving forward. 

When the same Limited Partner (LP) signs a new PACT (using the same email address as before) with a higher amount, the system overwrites the existing PACT. This overwrite includes updating the PACT amount to the new higher value and the ...

When the same Limited Partner (LP) signs a new PACT (using the same email address as before) with a higher amount, the system overwrites the existing PACT. This overwrite includes updating the PACT amount to the new higher value and the date of signing to the new date.

Are you asking us how to access your files in Decile Hub's File System? • If so: • Navigate to the "FILES" section in the left navigation. • Click on "All Folders." • You have two Custom Data Rooms/Folders in your Hub account, one ...

Are you asking us how to access your files in Decile Hub's File System? • If so: • Navigate to the "FILES" section in the left navigation. • Click on "All Folders." • You have two Custom Data Rooms/Folders in your Hub account, one is called "Unfiled" and the other is called "Data Room." • Click on them to access your files in that particular Data Room/Folder. Let us know if you have any further questions.

this question has already been answered, and is a great example of something that you should ask the AI (the field at the top of the screen) here is the previous answer Here is the answer from Decile Base AI “Management fees are the ...

this question has already been answered, and is a great example of something that you should ask the AI (the field at the top of the screen) here is the previous answer Here is the answer from Decile Base AI “Management fees are the annual charges that are allocated to the General Partner (GP) as a percentage of committed capital in a venture capital fund. These fees are typically used to cover operational costs such as legal and accounting fees, due diligence, and other expenses. The standard rate is usually around 2%, although this can vary. The fees are often structured on a sliding scale, starting higher during the active investment period and declining in later years. ” Here is an article we wrote on the topic over on govclab.com And here is another article on the management fee models

Generally speaking, SPVs (Special Purpose Vehicles) are investment entities (commonly LLCs) formed for the purpose of making a single investment into a single startup.  • For example, let's say a fund has received a follow-on opportunity...

Generally speaking, SPVs (Special Purpose Vehicles) are investment entities (commonly LLCs) formed for the purpose of making a single investment into a single startup.  • For example, let's say a fund has received a follow-on opportunity into a startup it previously invested into - however Fund A is not set up to do follow-on investments nor does it have the capital to do so.  • Fund A could set up an SPV and "syndicate" the follow-on opportunity, offering the SPV to its limited partners or others (depending on the circumstances). The SPV would collect the capital (after all legal setup and agreements have been completed) and then make the follow-on investment. SPVs are also sometimes set up when an investor has received an allocation into a hot deal, but they are not able to make the the full allocation by themselves. Note that not all startups/companies are willing to accept investments via SPV, so be sure to check. 

This is not a good approach and will cause 409a valuation issues for the founder. It's also incredibly difficult for them to explain this to future investors. Every investor in this round should come in on the same terms. Then, after the...

This is not a good approach and will cause 409a valuation issues for the founder. It's also incredibly difficult for them to explain this to future investors. Every investor in this round should come in on the same terms. Then, after they close, they can raise the cap for the next SAFE as they can justify this with more traction.