All Questions

A search fund functions in a similar way to venture capital funds and PE funds where the fund manager raises capital from investors and deploys it into companies with the goal of creating a liquidity event. However, the execution of the ...

A search fund functions in a similar way to venture capital funds and PE funds where the fund manager raises capital from investors and deploys it into companies with the goal of creating a liquidity event. However, the execution of the approach is much different. The fund searches for companies to acquire, which are usually legacy small business with strong metrics. Once the company is identified, the fund acquires the company and installs new leadership with an ambitious plan to scale the business. After holding the company for some time (typically 5+ years), the fund typically pursues a liquidity event via an exit.

The brackets in the base PACT agreement are placeholders for jurisdiction-specific legal references.  The language in the bracket is suggested language. For example, if you're in the US or launching a fund in Delaware, you can remove the...

The brackets in the base PACT agreement are placeholders for jurisdiction-specific legal references.  The language in the bracket is suggested language. For example, if you're in the US or launching a fund in Delaware, you can remove the brackets and the PACT will then work in Delaware. If, on the other hand, you plan to launch the fund in a different jurisdiction, you can replace the content in the brackets to match that jurisdiction.

Decile Group promotes and adheres to the Mensarius Oath (https://decilegroup.com/mensarius-oath/). In general, the principles of the Oath are enforced by the community. When a member of the community feels that the Oath has been violated...

Decile Group promotes and adheres to the Mensarius Oath (https://decilegroup.com/mensarius-oath/). In general, the principles of the Oath are enforced by the community. When a member of the community feels that the Oath has been violated, then it is up to the individual or entity in question to either dispute the accusation or reconcile the breach. So far, the community has done an excellent job of self policing, and, when there has been an incident, the individual or entity in question has been removed from the community until the breach has been reconciled.  The Mensarius Oath v2As a financial professional investing with personal or investor capital, I pledge to uphold these values. If determined by myself or a panel of my peers that I have violated these values without reconciliation agreed between all involved parties, then I will voluntarily leave the industry. Integrity: I vow to invest with integrity, ensuring my actions benefit humanity and consciously avoid harm to any parties. Excellence: I commit to maintaining the highest professional standards, setting an exemplary ethical benchmark in finance. Fairness: I endeavor to be fair in my dealings, standing against abuse of power, unfair advantage, seduction, corruption, or mistreatment. Equality: I pledge to promote inclusivity and equitable treatment in all financial endeavors, consciously working to reduce inequality. Respect: I promise to treat individuals and opportunities with the respect and the attention deserved in business interactions. Transparency: I affirm to be transparent and honest in dealings with investors, founders, and colleagues. Confidentiality: I swear to safeguard private, confidential, or personal information, keeping it safe from public or other unwanted disclosure. Growth: I am resolved to embrace feedback from clients and peers, committing to ongoing personal and professional growth.

The business model of early stage startups is often a guess that gets refined by constant customer development. In this context, red flags are not knowing who the actual customer is, not being diligent with customer development, and not ...

The business model of early stage startups is often a guess that gets refined by constant customer development. In this context, red flags are not knowing who the actual customer is, not being diligent with customer development, and not running tests to understand pricing and demand. It is also a red flag when a Founder doe not appear to care about revenue.

Use the FAST Agreement for all advisory work (https://fi.co/fast). The agreement provides a compensation framework based on the stage of the startup and the level of assistance using a percentage of the total startup value, which is rele...

Use the FAST Agreement for all advisory work (https://fi.co/fast). The agreement provides a compensation framework based on the stage of the startup and the level of assistance using a percentage of the total startup value, which is relevant in the early stages. These percentages are then converted into actual grants by the company and the Board when new grants are issued. As a result of being issued as a percentage, advisors do not need to understand the cap table or outstanding shares.

TL'DR - Don't do it. You will struggle to raise from professional LPs and it's incredibly difficult and expensive to execute an evergreen strategy in VC. As a result, the VC Lab accelerator does not support evergreen funds. It is not re...

TL'DR - Don't do it. You will struggle to raise from professional LPs and it's incredibly difficult and expensive to execute an evergreen strategy in VC. As a result, the VC Lab accelerator does not support evergreen funds. It is not recommended to use an evergreen structure for Venture Capital funds, especially for emerging managers.LPs will be un-familiar with the evergreen structure in VC, because it's unusual, difficult to execute and there is no example of a successful evergreen VC fund. It will make the fundraising process even more challenging that it is with a normal closed-ended VC fund. In addition, to execute an evergreen strategy, funds have to be able to mark the assets to market in between rounds of financing so that LPs can get liquidity. These structure is incredibly difficult to execute with startups and introduces enormous complexity.

Typically, you select "Pooled Investment Vehicle" for the LP Entity (the fund)

Typically, you select "Pooled Investment Vehicle" for the LP Entity (the fund)

Most capital call notices have a 14 day deadline. However, most LPAs have flexibility built in to accommodate LPs they may not be able to meet the deadline, within reason, due to various circumstances.

Most capital call notices have a 14 day deadline. However, most LPAs have flexibility built in to accommodate LPs they may not be able to meet the deadline, within reason, due to various circumstances.

You are not going to be obligated to return the money to investors and it will not be feasible for you to do so even in the unlikely scenario that an inexperienced LP makes an ask like this. This is because the LP's money gets invested i...

You are not going to be obligated to return the money to investors and it will not be feasible for you to do so even in the unlikely scenario that an inexperienced LP makes an ask like this. This is because the LP's money gets invested into startups as soon as possible. In other words - think of the fund's bank account as a router of LP money into startups. 

Decile Launch is a structured program designed to establish a venture capital firm and close its fund. It offers a unified fund formation service with bundled legal, accounting, and strategic advice. The program includes forming all nece...

Decile Launch is a structured program designed to establish a venture capital firm and close its fund. It offers a unified fund formation service with bundled legal, accounting, and strategic advice. The program includes forming all necessary legal entities, business advisory on closing agreements, a structured 8-week closing program, unlimited closing support, LP negotiation assistance, LP wiring assistance, and due-diligence assistance. After launch, the fund becomes part of Decile Partners for ongoing support.

You need to have different data rooms for different LP archetypes. If the LP archetype that's making this request is HNW this folder should maybe contain a few deal memos on your best angel investments. On the other hand, if the LP is an...

You need to have different data rooms for different LP archetypes. If the LP archetype that's making this request is HNW this folder should maybe contain a few deal memos on your best angel investments. On the other hand, if the LP is an Family Office or Institutional, you're going to want to provide an excel, deal memos and any other type of report you may have.

Yes! If you go to the settings for a data room folder, you will see an input to show a "Pact link banner", which will display a banner to do exactly that. [pact.png]

Yes! If you go to the settings for a data room folder, you will see an input to show a "Pact link banner", which will display a banner to do exactly that. [pact.png]