All Questions

Consolidated Decile Pro settings can be found under the Back Office category in the left navigation panel of Hub. [image.png] This will open a panel allowing you to edit all of the fields that show up in the fund view of Decile Pro, as ...

Consolidated Decile Pro settings can be found under the Back Office category in the left navigation panel of Hub. [image.png] This will open a panel allowing you to edit all of the fields that show up in the fund view of Decile Pro, as well as allowing you to toggle graphs certain on/off. Please note that if you change settings such as Fund Thesis, it will change your fund thesis that appears in other places throughout Hub, such as in emails that use the Fund Thesis variable.

Please follow the steps below to find and use the Thesis Generator Tool in Decile Hub -1. Navigate to Settings in the left nav -2. Click on Entity Management -3. Now click on the edit button next to the fund you would like to develop a...

Please follow the steps below to find and use the Thesis Generator Tool in Decile Hub -1. Navigate to Settings in the left nav -2. Click on Entity Management -3. Now click on the edit button next to the fund you would like to develop a thesis for -4. Underneath the 'fund thesis' section click on 'Help me generate a thesis' -5. Fill out the form -6. Save the generated thesis directly into your Hub account Here is a short step by step instruction video demonstrating the aforementioned steps: https://www.loom.com/share/13648571454345e8a84d8701de9eab33

Decile Base is an AI-powered knowledge base designed specifically for the venture capital industry. This new product by VC Lab provides immediate responses to complex questions related to all facets of venture capital operations based on...

Decile Base is an AI-powered knowledge base designed specifically for the venture capital industry. This new product by VC Lab provides immediate responses to complex questions related to all facets of venture capital operations based on decades of Venture Capital experience and best practices from hundreds of new venture firm launches. The platform’s strength lies in its combination of a Quora-like Q&A system and a generative AI. This integration allows Decile Base to instantly deliver the answers assembled from a collection of >1,000 existing questions answered by industry professionals. If the answer is not available, then the question is posed to industry experts - as is the case with this question here. Decile Base is in BETA as part of Decile Hub, the top vertical SaaS platform for running venture capital firms. The BETA version is currently available for the VC Lab community and has seen fast adoption. With the system's integration to Decile Hub, it additionally has the ability to answer various topics related to using the Decile Hub Platform. It can provide guidance on functionality, data import, tutorials, additional services, thesis creation, deal review, and more for VC firms. This integration is designed to support users in a number of capacities and help them make the most of the Decile Hub Platform.

Yes, the interest earned from a convertible note is typically added to the cost base in the schedule of investments when the note converts to preferred. The interest is usually converted into additional shares of preferred stock at the t...

Yes, the interest earned from a convertible note is typically added to the cost base in the schedule of investments when the note converts to preferred. The interest is usually converted into additional shares of preferred stock at the time of conversion. The cost base becomes the original investment amount plus the accrued interest at the time of conversion. However, the specifics can vary based on the terms of the convertible note agreement and the fund's accounting policies.

You need to pick a model that fits your strategy, secret sauce, and stage. For example, if you invest in pre-seed, naturally you will lead to a more dispersed approach because the risk of the portfolio companies is so high. It's not unco...

You need to pick a model that fits your strategy, secret sauce, and stage. For example, if you invest in pre-seed, naturally you will lead to a more dispersed approach because the risk of the portfolio companies is so high. It's not uncommon for pre-seed funds to need to invest in 30-50 companies. However, just because that's the case in general, it doesn't mean that that's the case for everyone. 

We recommend that you have ~$1m in PACTs and another $500k - $1m hard to take advantage of Decile Launch.

We recommend that you have ~$1m in PACTs and another $500k - $1m hard to take advantage of Decile Launch.

In this case, you can talk about Fund 1 publically but not Fund 2.

In this case, you can talk about Fund 1 publically but not Fund 2.

Venture Partner claims and reality often do not match up to reality. As a result, most Venture Partners are terminated by Managing Partners. So, use the Venture Share agreement and place a six month cliff on the Carried Interest venting....

Venture Partner claims and reality often do not match up to reality. As a result, most Venture Partners are terminated by Managing Partners. So, use the Venture Share agreement and place a six month cliff on the Carried Interest venting. If they do not reach 15% of the fund size after 6 months, then terminate them.

You might find this article generally helpful regarding General Solicitation: https://govclab.com/2023/11/22/general-solicitation/ While we can't speak specifically to the UAE, the answer may be highly dependent on the nature of a relat...

You might find this article generally helpful regarding General Solicitation: https://govclab.com/2023/11/22/general-solicitation/ While we can't speak specifically to the UAE, the answer may be highly dependent on the nature of a relationship with a US person working/residing in the UAE, and how any discussions are being conducted. We recommend consulting your fund attorney for advice on your specific situation, in addition to potentially a fund attorney with expertise in the region. 

To update the "fund_details.close_at" variable in Decile Hub, you need to navigate to the Fund Admin section called "Entity Management" in the Back Office. However, this section is only available to Decile Partners customers. Lastly, to ...

To update the "fund_details.close_at" variable in Decile Hub, you need to navigate to the Fund Admin section called "Entity Management" in the Back Office. However, this section is only available to Decile Partners customers. Lastly, to clarify, the "fund_details.close_at" variable normally does not get shown in the PACT email template, unless one adds that variable manually to it.

Recruiting CEOs is one of the biggest challenges for venture studios. An effective way to solve this is for the Venture Studio to be narrowly specialized in one vertical. This way, the studio can build the expertise, systems, and strateg...

Recruiting CEOs is one of the biggest challenges for venture studios. An effective way to solve this is for the Venture Studio to be narrowly specialized in one vertical. This way, the studio can build the expertise, systems, and strategies to accelerate getting the company to a Series-A. If a studio executes on this strategy well with a few companies, then they can make a pretty compelling case to future experienced startup CEOs & founders in that vertical that by partnering with the studio they can get to scale much faster. 

LPs are most familiar with the 2/20 model. If you deviate from this, you will struggle to raise money, especially as an emerging manager. There are many areas to innovate as an emerging manager. Innovating on the standard fee model is no...

LPs are most familiar with the 2/20 model. If you deviate from this, you will struggle to raise money, especially as an emerging manager. There are many areas to innovate as an emerging manager. Innovating on the standard fee model is not one of them because it will create a lot friction with LPs. 

There is nothing contractually in the LPA that prohibits a GP to call capital as needed and a GP shouldn't make promises or capital call schedules since they have no definite way of knowing how their deal flow and investment needs will b...

There is nothing contractually in the LPA that prohibits a GP to call capital as needed and a GP shouldn't make promises or capital call schedules since they have no definite way of knowing how their deal flow and investment needs will be over the entire investment period. Furthermore, a GP shouldn't call all of the capital over the investment period as money will be needed after the investment period for on going management fees and fund expenses. In summary, an LP needs to have trust in the GP as a steward of their money and that they have the best interests of the fund.

The best connectors are already 'supporters' of you or your fund or both. As a result, they naturally want to help you on your missions without anticipating something in return. To better help you triangulate on the right archetype, try ...

The best connectors are already 'supporters' of you or your fund or both. As a result, they naturally want to help you on your missions without anticipating something in return. To better help you triangulate on the right archetype, try our connector GPT: https://vcl.to/gpt-connector (Note, you will need GPT-4)  Here are some additional resources: • Read: https://govclab.com/2023/05/13/leveraging-Connectors/   • Read: https://govclab.com/2023/08/16/sourcing-and-closing-limited-partners/ • Watch this Webinar: https://vimeo.com/857620742/165b519c1e?share=copy   

Not necessarily. Typically public benefit corporations (PBC) are taxed as a corporation like a C-Corp.  That being said, a PBC status may make it more difficult for the company to secure capital. This is because the founder has to expla...

Not necessarily. Typically public benefit corporations (PBC) are taxed as a corporation like a C-Corp.  That being said, a PBC status may make it more difficult for the company to secure capital. This is because the founder has to explain to investors why they are doing this, which increases friction. You need to make sure to DD the underlying structure of the company if there are additional reporting requirements for the company and what the impact is on their business. 

Fund managers often show various scenarios for how the fund may perform relative to the investment strategy. As an LP, it’s critical to understand the assumptions behind those projections, because models are rarely 100% accurate. For exa...

Fund managers often show various scenarios for how the fund may perform relative to the investment strategy. As an LP, it’s critical to understand the assumptions behind those projections, because models are rarely 100% accurate. For example, if the fund is pre-seed, the risk of the individual portfolio company failure is high. Therefore, to counter the risk, the manager often has to make more investments with lower check sizes and at lower valuations. The calculus for the LP is: Are the assumptions that are the basis of this manager’s strategy realistic and do they generate a high probability that the fund will make several investments that can return the fund individually?  In a Montecarlo simulation, LPs can use these assumptions as levers. For example, a lever could be the ownership % of the investment and its effect on performance. The next level in the DD process can be to think critically if the manager can realistically get that level of ownership based on their strategy, brand, deal flow, etc... Great companies command big valuations and therefore it’s hard for investors to command great ownership. On the other hand, if the company sells too much of the cap table too early, it will struggle to raise additional capital and therefore the investment will perform poorly. A Montecarlo simulation allows for a greater level of fidelity to test various assumptions and to test if the manager's strategy is grounded in reality. 

Here is a list of top GP - LP events: https://govclab.com/top-gp-lp-events-in-2024/ Most conferences are a mixed bag both for LPs and GPs. We are working to fix this, and are planning to host a new Decile Summit this year. Typically, th...

Here is a list of top GP - LP events: https://govclab.com/top-gp-lp-events-in-2024/ Most conferences are a mixed bag both for LPs and GPs. We are working to fix this, and are planning to host a new Decile Summit this year. Typically, the best events for both LPs and GPs, are small events that are hosted by GPs. If you are a GP, I encourage you to host your own events and invite your LPs and their friends. If you're an LP, I recommend that you attend GP events for the funds you're invested in because you will meet a lot of great individuals and learn some really unique insights.