All Questions

Venture Capital is a long-term investment. VERY long term. If a fund gets an early exit, say within a year of investment, it's likely to be a bad investment such as an aquihire. It's improbable that a great exit that can return a pre-see...

Venture Capital is a long-term investment. VERY long term. If a fund gets an early exit, say within a year of investment, it's likely to be a bad investment such as an aquihire. It's improbable that a great exit that can return a pre-seed or seed fund will take place in 365 days post-investment. The most likely scenario is that the investments that will generate venture-style returns will take 10+ years to exit. This is why sophisticated LPs are unable to diligence 'track record' until the GP is on Fund 3/4. This is because good exits that generate venture-style returns often take a decade to generate DPI back to the fund. With this context in mind, a fund has not been significantly de-risked when an LP joins the fund a year after the 1st close. Sure, maybe LPs that join later closes can diligence some of the deals that the fund has done, as well as their operations, which can help them do better DD. But, from a returns perspective, there is not that much difference. By trying to penalize LPs that come into later closings, you're effectively shooting yourself in the foot because it's the large and more risk-averse LPs that often choose to invest at that stage. By creating this unnecessary friction to appease small HNW LPs who came into the 1st close and don't have enough context to evaluate if this is fair or not, you're making it harder for the larger and more sophisticated LPs to invest. 

There is no typical split. But, in general, there should be one founder who owns a bit more that is the final tie-breaker. 

There is no typical split. But, in general, there should be one founder who owns a bit more that is the final tie-breaker. 

This is a known issue that we'll try to get fixed up soon. To add a tag ensure you hit the "Enter" or "Space" key after the tag and it should be successful. Here's a video explaining it further: https://www.loom.com/share/36d3f10d4b6942c...

This is a known issue that we'll try to get fixed up soon. To add a tag ensure you hit the "Enter" or "Space" key after the tag and it should be successful. Here's a video explaining it further: https://www.loom.com/share/36d3f10d4b6942c0b76d13deaad05550

There is a checkbox on every email at the bottom that says: "Disable click tracking and automation". Make sure this box is checked, and link tracking will be disabled.

There is a checkbox on every email at the bottom that says: "Disable click tracking and automation". Make sure this box is checked, and link tracking will be disabled.

Investing in Special Purpose Vehicles (SPVs) should generally be avoided due to several potential consequences: 1. Tax extension for LPs: If you proceed with an SPV investment, you'll likely need to request that your Limited Partners (L...

Investing in Special Purpose Vehicles (SPVs) should generally be avoided due to several potential consequences: 1. Tax extension for LPs: If you proceed with an SPV investment, you'll likely need to request that your Limited Partners (LPs) file an extension because the K-1s from the SPVs are likely to be delayed. 2. Non-qualified investment: Such investments are considered non-qualified, and they will count towards your 20%, potentially affecting your overall portfolio balance. 3. Creation of a Blocker: To mitigate potential risks of dividends flowing through to your LPs, it may be necessary to create a blocker entity. 4. Poor Reporting from Portfolio Companies (PortCo): Investing through SPVs might result in inferior reporting from the Portfolio Company, which can hinder decision-making and performance evaluation. 5. Limited Leverage during Transactions: Having investments structured via SPVs could result in reduced leverage during M&A transactions or secondaries, potentially impacting negotiation outcomes and overall investment strategy.

No, it doesn't work like this. Assume carry is 100%, irrespective of fund size. When you give carry to a VP, it's a % of 100%. So, if you decided to give a VP 5% it will be 5% of 100% of the carry. This has nothing to do with the fund si...

No, it doesn't work like this. Assume carry is 100%, irrespective of fund size. When you give carry to a VP, it's a % of 100%. So, if you decided to give a VP 5% it will be 5% of 100% of the carry. This has nothing to do with the fund size.  Also, the extreme example that you have above is unrealistic. It's common for funds to over-subscribe the target stated on the LPA, but it's not common for funds to over-subscribe by that much nor will LPs be ok with you doing this because it drastically changes their return profile.  So, in practice, it's normal for people to maybe over-subscribe by 50% - 200%, but not 500%.  In the event that you truly had that much more demand from LPs, you would close a Fund 1 and move the rest of the demand into Fund 2.

Currently, adding funds through the platform by yourself is not supported. Could you please share why you need to add a second fund? Understanding your specific needs will help us provide the best possible assistance. For example, if you...

Currently, adding funds through the platform by yourself is not supported. Could you please share why you need to add a second fund? Understanding your specific needs will help us provide the best possible assistance. For example, if you're looking to fundraise for an SPV, setting up an additional SPV pipeline under our Fundraising section might be a more efficient solution than creating a new fund. Please note, we generally recommend waiting until your first fund is fully closed before adding a second one. If a second fund is essential at this stage, we can assist in setting this up for you, ensuring it aligns correctly with your goals.

I see. So, if we do have an potential LP--who has signed an LP pact--that wants to be a VP, is it fine for us to ask them to bring in an additional LP before we make them a Venture Partner at closing? 

I see. So, if we do have an potential LP--who has signed an LP pact--that wants to be a VP, is it fine for us to ask them to bring in an additional LP before we make them a Venture Partner at closing? 

Most funds will request a 1 or 2-year extension at that point. Then, you may distribute the equity back to LPs or you may chose to liquidate in the secondary markets. 

Most funds will request a 1 or 2-year extension at that point. Then, you may distribute the equity back to LPs or you may chose to liquidate in the secondary markets. 

I'm sorry to hear that you're experiencing difficulties with the video feature on your PACT form. I've tested it in my own sandbox account, and it worked fine. Could you please confirm whether you followed these steps: navigate to Fundra...

I'm sorry to hear that you're experiencing difficulties with the video feature on your PACT form. I've tested it in my own sandbox account, and it worked fine. Could you please confirm whether you followed these steps: navigate to Fundraising, click on PACTs, then click on PACT Content, enter the Video URL (which has to be a YouTube URL) under PACT LANDING PAGE MEDIA, and finally click on "Save changes" in the bottom right-hand corner? This will help us troubleshoot the problem more effectively.

He can disclose that he is advising your new firm and the time commitment that he will dedicate.

He can disclose that he is advising your new firm and the time commitment that he will dedicate.

User variables are data points that users create and define for specific needs. They can represent a variety of information such as a URL, a name, a date, or any other specific data that the user wants to use regularly. These variables c...

User variables are data points that users create and define for specific needs. They can represent a variety of information such as a URL, a name, a date, or any other specific data that the user wants to use regularly. These variables can be inserted into email templates or documents, and they will be auto-populated with the relevant data when used. System variables are predefined data points set by the system. They represent common pieces of information that are frequently used, such as a prospect's name, a firm's name, or a link to a deck from a data room. These variables are automatically populated with the relevant data when used in emails or documents, streamlining the process of personalizing communications or documents. To summarize, the main difference between user variables and system variables lies in their creation and purpose. User variables are created by users to meet specific needs and can be customized based on the information they want to use regularly. On the other hand, system variables are predefined by the system and represent common pieces of information that are frequently used across different users. While both types of variables are auto-populated with relevant data when used, user variables offer more flexibility as they can be tailored to individual user requirements.

Great suggestion. We're currently working on expanding the categories for "setting a variable" beyond % probability and will notify everyone here in the Decile Base community once additional options are available.

Great suggestion. We're currently working on expanding the categories for "setting a variable" beyond % probability and will notify everyone here in the Decile Base community once additional options are available.

We are reworking this system to make it better, however, there is a workaround in the meantime that provides direct access to files through a variable to your pipeline prospects.  1. go to your folders, let's use Sample-Capital-DataRoom,...

We are reworking this system to make it better, however, there is a workaround in the meantime that provides direct access to files through a variable to your pipeline prospects.  1. go to your folders, let's use Sample-Capital-DataRoom, as the example: https://sample.decilehub.com/data_room/folders/RnelPZGq 1. that is a dud URL i just created 2. go to the folder file you want to share in a new tab let's use "Sample-v2024-04-22" as the example 1. right click on "Presentation" click "open in new tab" 2. click on  Sample-v2024-03-22.pdf 3. you will see this as your URL: https://sample.decilehub.com/data_room/folder_files/3N9VgRnZ 3. click the carat ">" next to Fundraising in your navigation 4. right click on LP Emails, "Open in new tab" 5. you now have three tabs, the folder, the file, and an email template writer 6. in the body of your email template if you would like to send an email to someone to receive a single file you will type the following exactly 1. [[data_room.Sample-Capital-DataRoom/folder_file=3N9VgRnZ]] 2. where "Sample-Capital-DataRoom" is the name of the parent folder from step 1 3. where "3N9VgRnZ" is the path from the file URL in step 2.3 7. When you send this to a prospect in your pipeline they will receive the following in their email 1. https://sample.decilehub.com/data_room/preview/1bvZaNd37-T3St5-lLvbs-T0JwTJ?file=3N9VgRnJ 2. This will take them directly to the file you are looking to share

Tags are great for this use case. Also, you can setup a Meeting stage where you can move LPs that you have met with. 

Tags are great for this use case. Also, you can setup a Meeting stage where you can move LPs that you have met with. 

The API is only generally available for Decile Partners at the moment. We'll have some more options for using the API soon. Find out more about starting a relationship with Decile Partners here

The API is only generally available for Decile Partners at the moment. We'll have some more options for using the API soon. Find out more about starting a relationship with Decile Partners here

There are no standards for returns in VC, because venture is an outlier business. This is also why most of the data online is not great, especially at the pre-seed or seed level.  If LPs are asking your for this info, you're in a bad pl...

There are no standards for returns in VC, because venture is an outlier business. This is also why most of the data online is not great, especially at the pre-seed or seed level.  If LPs are asking your for this info, you're in a bad place in your pitch, because that means they are not excited about what you're doing. So, they then have to try to compare asset classes etc.., which is not a debate that you can win. You can tell them that the VC asset class is the best performing one until you're blue in the face, but it will not matter, because they already made a decision not to invest.  Find your edge. It's because of this edge that you have the potential to produce outlier returns. Focus on that in the pitch. The performance of the asset class is irrelevant. This is not PE or public markets etc where the difference between a good GP and a great one is 10%. In venture, the difference between a good GP and a great one is 100%+.

Typically, 50% of meetings convert to PACTS for a fund size between $100K and $1MM. You're not doing well if it is 30% or less.

Typically, 50% of meetings convert to PACTS for a fund size between $100K and $1MM. You're not doing well if it is 30% or less.

To achieve quicker PACT signings, it's crucial to implement strategic targeting and streamline the interaction process with potential Limited Partners (LPs). Start by identifying the right LPs based on their investment size: small (Angel...

To achieve quicker PACT signings, it's crucial to implement strategic targeting and streamline the interaction process with potential Limited Partners (LPs). Start by identifying the right LPs based on their investment size: small (Angels and High Net worth Individuals, $100k - $1MM), medium (High Net worth Individuals, Small Family Offices, Corporates, $1MM-5MM), and large (Sovereign Wealth Funds, Endowments, Large Corporations, Medium to Large Family Offices, $5+MM). The time it takes for these LPs to sign can vary, with smaller LPs typically taking 1-3 months, while medium and large ones can take 3-12 months or even longer due to their extensive due diligence processes. To facilitate a faster signing process, consider the following steps: 1. Streamline Interactions: Minimize unnecessary friction in the PACT signing process, as PACTs are non-binding letters of intent and should be treated as flexible and momentum-driven. 2. Leverage Intimate Events: Invite LPs who have already signed PACTs to intimate events and encourage them to bring a potential LP friend. This can lead to better conversion rates through personal interactions. 3. Optimize Communication Strategy: Develop a consistent and informative communication style, avoid sounding desperate. Your tone should be inviting and confident, focusing on providing information rather than overt selling. 4. Structured Meeting Process: Arrange LP meetings strategically. Aim to get a PACT signed by the second or at the latest, the third meeting. Limit the number of meetings and always move towards signing a PACT. Use statements like, "I would love to know your interest level in investing, we're looking for a $500k-$1M position, before I send you XYZ I would love for you to sign a PACT." 5. Control Access to Materials: Implement a policy of "No PACT, No Access" for most small and medium LPs. This helps to ensure that only serious prospects have access to detailed materials and data rooms. By focusing on these strategies, not only do you maintain a clear and efficient pathway towards closing, but you also respect the time and commitment of potential investors, making it more likely for them to engage positively with your fund.

A manager may decide to set up a “Parallel Fund” in order to accommodate the needs of certain limited partners that have tax, regulatory or other issues in investing in the primary fund.  For example, a non U.S. limited partner may want...

A manager may decide to set up a “Parallel Fund” in order to accommodate the needs of certain limited partners that have tax, regulatory or other issues in investing in the primary fund.  For example, a non U.S. limited partner may want to take advantage of a certain tax treaty available to them by investing in a Parallel Fund. The Parallel Fund would be set up in a different jurisdiction and would make the same investments as the primary fund, subject to certain exceptions given the issues necessitating the need for the parallel structure.   The Cornerstone includes an optional provision that allows for the manager to set up such a Parallel Fund to accommodate legal, tax, or regulatory considerations of certain investors subject to the requirement that the manager treat all investors in a fair manner as further described in the Cornerstone.   Obviously, a manager should evaluate the costs and administrative burden prior to setting up any Parallel Fund.