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1,434
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Does Decile Hub have a template valuation policy?

Top answer:

Decile Group has developed this Valuation Policy for the VC Lab community. The policy has been adopted by the majority of Decile Partner firms. 

 -  Mike Suprovici
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1

What is the best way to inform a potential LP of QSBS?

Top answer:

The LP needs to speak with their CPA about QSBS and you really should avoid providing advice here. QSBS is complicated and some LPs may not qualify. Providing LPs with tax advice creates a lot of problems for you. 

 -  Mike Suprovici
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For GPs who have hosted LP events - have you ever hosted joint events with other GPs who lived in your area? If so, how did they go?

I recently discovered that a few VC Lab cohort members live in the DC area. I am wondering about the effectiveness of planning LP events with other GPs.  What’s more beneficial to GPs and more attractive to LPs - a larger joint event like a happy hour or a smaller, more intimate one like a dinner? Is it good to cross-pollinate potential LPs?

Top answer:

GP - LP events are very effective and are foundational to a succesful fundraising strategy. In order to maximize the effectiveness of your LP events: 1.  Invite LPs that have signed PACTs or have closed 2. Ask the LPs that have signed P...

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Am I supposed to be getting healthcare from the management company? If so, after what return threshold makes sense? Or am I supposed to have done this since the beginning?

Top answer:

Management Companies are setup as a Distribution Focus, Hybrid or Operating Company. You can find more information here: https://vcl.to/ManCo-strategy [Image] The majority of new and emerging mangers will setup their Management Compani...

2

We have an investment coming together pretty quickly and we do not want to do an additional capital call because the fund is not fully closed. What are my options?

Top answer:

One thing you could do is to write a small check from the fund and offer the rest via SPV to your LPs as a perk. You can use Decile SPV for this because it’s built for this use case and is managed in hub. Important: Capital lines of cre...

1

Definition and Example of Win:Loss Ratio

Hi, is the win-loss ratio mentioned in Sprint 5 - Firm Positioning about how many deals does your firm go after and how many is it able to win their ideal term sheet and close?

Top answer:

The Win-Loss ratio is the percent of investments that you were able to win. Many of the best investments are competitive and it's common for VCs to lose some of those deals unless they provide a strong value add.

 -  Mike Suprovici
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Is it common for VCs in the life sciences to sign NDAs with companies?

I asked Decile Hub this question and got a slightly different answer on the follow up (i.e., on follow up, that it is permissible for life sciences companies). I am meeting with a company building a hardware product for measuring metabolites in blood, and they requested an NDA when sending us the materials.  I've heard that this is more common for companies in the life sciences space, especially if they have deals with major pharma, who often require such terms. I do not think they are disclosing deals with partners that might require NDAs.  What is the proper way to respond to a request like this?

Top answer:

For initial evaluation you could request a non-NDA version of materials.  If you initiate serious diligence of the deal you can evaluate signing an NDA or bringing on a 3rd party expert to evaluate the technology under NDA. For an initia...

1

What's the Decile Hub pricing?

Where can I find the Decile Hub pricing?

Top answer:

Decile Hub is free for participants of the VC Lab accelerator. In 2024, Decile Hub will be opened up to the public. The product will continue have a robust free offering, and there will also be premium SaaS package for some additional fe...

2

What is included in the Decile Partners offerings or SLA?

Top answer:

Decile Partners provides a unified back office service for venture capital firms. This includes multiple functions such as legal, accounting, tax, and audit, which are typically provided by multiple external vendors. Decile Partners also...

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Investing and Operating in EU (with domicile in Delaware)

What are the requirements for European GPs opening a fund in Europe, even with domicile of fund in Delaware? Is there a need for a specific license to operate and invest in the EU?

Top answer:

European GPs (General Partners) looking to fundraise in Europe, even with the domicile of the fund in Delaware, face a complex regulatory environment. When pitching EU limited partners before the fund is launched, manager must adhere to ...

1

Attribution on corporate data covered by confidentiality

As a new fund manager with experience in steering several million of corporate IT spend in the niche I am going to invest, how can I show attribution? Majority of the information (project details, financial info) are covered by confidentiality agreement and cannot be directly shared.  Any suggestion on at which level I can share quantitative information, acceding to your previous experiences?

Top answer:

Though it's usually difficult to get attribution for your work from your previous employer, you should ask. Otherwise, you can't mention your achievements because LPs will ask for proof during the DD process. In addition, consider speaki...

1

How can a VC fund manager generate the schedule K-1 forms for their limited partners in Decile Hub?

In the United States, venture funds are legally required to send each LP a schedule K-1 tax document every year by March 15, and many platforms (like AngelList) generate these documents automatically (https://learn.angellist.com/articles/schedule-k-1). How does this work in Decile Hub?

Top answer:

Enduring VC Firms work with specialized VC tax firms to produce documentation like K-1s for each of their LPs. It's very important that there is a separation between the tax firm and the fund administrator to reduce potential conflicts o...

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How do you set up a sign-able contract in decile hub?

I'd like to be able to set up an investor accreditation validation linked to a potential LP and then filed on their profile. Is there a way to do this? (I'd rather not have to use Docusign separately for this.)

Top answer:

There is currently no feature to set up a custom agreement and have it electronically signed via Hub (from the customer/user side) - however we are currently exploring this kind of capability. A third-party electronic signature solution ...

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template for cash control policy

Hello, we´re looking for templates for the following (couldn´t find any in Decile Base) policies: • Cash control • Privacy • Valuation • Cyber and info security • Code of ethics & personal trading • FCPA (anti-corruption & anti-bribery) • Political contributions

Top answer:

You will need to work with your law firm and fund admin service providers to attain those policies. That being said, VC Lab has developed a valuation policy template for the community. 

 -  Mike Suprovici
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