All Questions

Your fund's thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on Latam, particularly Costa Rica, can be advantageous due to potentially lower valuations and untapped opport...

Your fund's thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on Latam, particularly Costa Rica, can be advantageous due to potentially lower valuations and untapped opportunities. 2. **Sector Focus**: Agri-tech is a promising sector with significant growth potential, especially in regions with strong agricultural industries. 3. **Network Leverage**: Leveraging a network of 50 VCs for co-investment and 30 large U.S. corporations for exit opportunities is a strong strategy, enhancing both funding and exit prospects. Ensure your thesis clearly articulates how these elements will drive superior returns.

For SAFE (or convertible note) portfolio investments 1. managers should track progress of the company, and potentially help the team negotiate to ensure fair terms for investors, founders and employees. 2. carefully review the docs and c...

For SAFE (or convertible note) portfolio investments 1. managers should track progress of the company, and potentially help the team negotiate to ensure fair terms for investors, founders and employees. 2. carefully review the docs and confirm conversion calculations. 3. participate in pro rata investment - if available - potentially offering this to LPs - potentially creating an SPV as a rollup vehicle and taking carry. Following conversion, the manager enters the updated holding information into Hub as a new Funding Round.

By definition, a studio will have a lot more ownership then most investors. Because of the complicated cap-tables of studio companies, many, if not most VCs avoid investing in such companies. Rather then attempting to figure out how to m...

By definition, a studio will have a lot more ownership then most investors. Because of the complicated cap-tables of studio companies, many, if not most VCs avoid investing in such companies. Rather then attempting to figure out how to minimize dilution, it's better for studios to focus on spinning out venture scale businesses addressing large markets that can attract follow on financings from downstream VCs despite their cap-tables. 

If an LP (Limited Partner) passes away, the LP's partnership interest is handled according to the arrangements made with respect to the LP's heirs, executors/administrators of the estate, successors, etc. The LP is responsible for settin...

If an LP (Limited Partner) passes away, the LP's partnership interest is handled according to the arrangements made with respect to the LP's heirs, executors/administrators of the estate, successors, etc. The LP is responsible for setting these arrangements up. These arrangements can vary and are subject to different regulations and requirements depending on the country or state. Therefore, agreements like the Limited Partner Agreement (LPA) generally remain silent on any specifics.

Interest collected on called capital is typically not subject to management fees and is not recognized by the carried interest provision as another source of fees. The interest earned on called capital is usually credited back to the Lim...

Interest collected on called capital is typically not subject to management fees and is not recognized by the carried interest provision as another source of fees. The interest earned on called capital is usually credited back to the Limited Partners (LPs) and is not considered part of the General Partner's (GP's) compensation. The management fee is generally calculated based on committed capital, and carried interest is based on the profits from investments, not on interest earned from deposits.

Asian investors often prefer to invest in US-domiciled funds due to the favorable regulatory environment and established legal framework. Delaware is a popular choice for fund domicile due to its well-developed corporate laws and investo...

Asian investors often prefer to invest in US-domiciled funds due to the favorable regulatory environment and established legal framework. Delaware is a popular choice for fund domicile due to its well-developed corporate laws and investor protections. Given your investor demographic, a US domicile, particularly Delaware, would likely be the most favorable regulatory regime. This choice balances the interests of both US and Southeast Asian investors, providing a familiar and trusted legal environment. Having said that, the manager and the investors should consider the tax implications of any fund structure.

Decile Hub currently supports a variety of template agreements for members of Decile Partners, including the Cornerstone LPA, Venture Share for venture partners, and others. Members of Decile Partners have built-in digital signing in a p...

Decile Hub currently supports a variety of template agreements for members of Decile Partners, including the Cornerstone LPA, Venture Share for venture partners, and others. Members of Decile Partners have built-in digital signing in a powerful form builder for agreements.

Yes. LPs can see various metrics, including historicals via Decile Pro. 

Yes. LPs can see various metrics, including historicals via Decile Pro. 

Decile Hub has the capability to calculate and showcase how much capital is called and which investors have fulfilled their capital call. For non-compliance, fund managers can send reminders and contact directly with their investors to r...

Decile Hub has the capability to calculate and showcase how much capital is called and which investors have fulfilled their capital call. For non-compliance, fund managers can send reminders and contact directly with their investors to remind them to satisfy their contribution to the fund.

Don't promise anything specific. This is a high-risk asset class. Instead, keep it high level and say something like: "It’s not uncommon for venture funds to target a 3-4x return in a medium scenario and 8x+ in a high scenario." This app...

Don't promise anything specific. This is a high-risk asset class. Instead, keep it high level and say something like: "It’s not uncommon for venture funds to target a 3-4x return in a medium scenario and 8x+ in a high scenario." This approach sets realistic expectations without overpromising.

To ensure your contract protects the jurisdictions, the Mensarius Oath, and prevents LPs from overriding or taking over the fund for their own interests, follow these steps: 1. **Jurisdictions**: Work with experienced legal counsel to e...

To ensure your contract protects the jurisdictions, the Mensarius Oath, and prevents LPs from overriding or taking over the fund for their own interests, follow these steps: 1. **Jurisdictions**: Work with experienced legal counsel to ensure compliance with all relevant jurisdictional regulations and include specific clauses addressing these requirements in your LPA. 2. **Mensarius Oath**: Explicitly reference the Mensarius Oath in your LPA and outline the ethical standards and practices that the fund will adhere to. 3. **Fund Control**: Include provisions in the LPA that limit LPs' ability to override or take over the fund, such as requiring unanimous consent for major decisions and clearly defining the roles and powers of the General Partner. Consult with legal experts to draft and review these provisions to ensure they are robust and enforceable.

This article outlines the Venture Studio stricture and entities: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/ The set-up of the Venture Studio as a C-corp or an LLC depends on your strategy. If you are planning to take ...

This article outlines the Venture Studio stricture and entities: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/ The set-up of the Venture Studio as a C-corp or an LLC depends on your strategy. If you are planning to take investment into the Studio itself, including from the Studio fund, then it might be best to set it up as a C-corp. Otherwise, the Studio will commonly be an LLC. The portfolio companies are commonly all C-corps, allowing them to easily take outside investment. 

Typically funds invest in one currency and it's usually USD. This is because many companies with the ambition to become venture scale, usually move their HQ to a major domicile such as Delaware. VCs tend to standardize their currency for...

Typically funds invest in one currency and it's usually USD. This is because many companies with the ambition to become venture scale, usually move their HQ to a major domicile such as Delaware. VCs tend to standardize their currency for Limited Partners and investments as well and rarely go through the trouble to convert currency.