All Questions

If a Fund has portfolio investments that are operating but have not exited, and the Fund Life is coming to an end,  an extension period may be needed to wait for an exit. The other option would be to distribute any privately held equity ...

If a Fund has portfolio investments that are operating but have not exited, and the Fund Life is coming to an end,  an extension period may be needed to wait for an exit. The other option would be to distribute any privately held equity to LPs. Funds are usually created with one or two optional 1 year extensions - please see the Cornerstone LPA for more details. 

The ratio of actual returns to LP (distributions) to their paid-in capital.

The ratio of actual returns to LP (distributions) to their paid-in capital.

The Fund investments - for Venture Capital funds this is equity as SAFEs, Convertible Note or Stock Purchase investments in non-public startup companies.

The Fund investments - for Venture Capital funds this is equity as SAFEs, Convertible Note or Stock Purchase investments in non-public startup companies.

Describes the rate at which business proposals and investment pitches are being received by a firm.  Inbound opportunities may come from pre-existing networks or relationships, word-of-mouth within the startup community, investor referra...

Describes the rate at which business proposals and investment pitches are being received by a firm.  Inbound opportunities may come from pre-existing networks or relationships, word-of-mouth within the startup community, investor referrals, proactive research, conferences and events, or old inreach from the web, social or professional networks. Dealflow to investment ratios vary widely by geography, market segment, stage and channel. A typical US-based VC firm will see approximately 100 deals for every investment.

Crowdfunding is the process of raising capital for a venture or a startup via smaller amounts from many investors (“the crowd”). The capital can be provided without the expectation of financial return, or in exchange of a specific good o...

Crowdfunding is the process of raising capital for a venture or a startup via smaller amounts from many investors (“the crowd”). The capital can be provided without the expectation of financial return, or in exchange of a specific good or service. Successful crowdfunding campaigns often require effective marketing, storytelling, and engagement to attract a sufficient number of backers.

A standardized Limited Partner Agreement (LPA) developed by VC Lab to enable the streamlined formation of VC Funds which reduces paperwork and legal expenses. Cornerstone V3 can be downloaded from VC Lab here.

A standardized Limited Partner Agreement (LPA) developed by VC Lab to enable the streamlined formation of VC Funds which reduces paperwork and legal expenses. Cornerstone V3 can be downloaded from VC Lab here.

Limited Partner (LP) commitments to invest in the fund - defined in signed Limited Partner Agreements (LPAs) and Subscription Agreements. Decile’s Cornerstone LPA template integrates a Subscription Agreement - a separate one is not requi...

Limited Partner (LP) commitments to invest in the fund - defined in signed Limited Partner Agreements (LPAs) and Subscription Agreements. Decile’s Cornerstone LPA template integrates a Subscription Agreement - a separate one is not required.

The percentage of profits that will be paid to the General Partner (GP) - calculated following repayment of invested capital.

The percentage of profits that will be paid to the General Partner (GP) - calculated following repayment of invested capital.

The total amount of capital committed to a VC or PE Fund, including the GP commit. 

The total amount of capital committed to a VC or PE Fund, including the GP commit. 

Capital Recycling is the process of reinvesting proceeds from the sale/exit of a portfolio company into new investments. VC Lab strongly recommends avoiding this for Fund I. 

Capital Recycling is the process of reinvesting proceeds from the sale/exit of a portfolio company into new investments. VC Lab strongly recommends avoiding this for Fund I. 

The fund manager “calls” capital to request the Limited Partners (LPs) contribute (by wire) a portion of their Committed Capital to the fund for deployment (and for fees). Called Capital is simply the amount that has been called. 

The fund manager “calls” capital to request the Limited Partners (LPs) contribute (by wire) a portion of their Committed Capital to the fund for deployment (and for fees). Called Capital is simply the amount that has been called. 

Bootstrapping refers to the practice of starting and growing a business without external funding. Instead of relying on external investors, entrepreneurs use their own savings, personal funds, revenue generated by the business, and resou...

Bootstrapping refers to the practice of starting and growing a business without external funding. Instead of relying on external investors, entrepreneurs use their own savings, personal funds, revenue generated by the business, and resourcefulness to fund the company's operations and growth.

Under U.S. securities laws, “accredited investors” are eligible to invest in certain unregistered securities.  In order to qualify as an accredited investor, an individual or entity must meet certain criteria.  Individuals can qualify by...

Under U.S. securities laws, “accredited investors” are eligible to invest in certain unregistered securities.  In order to qualify as an accredited investor, an individual or entity must meet certain criteria.  Individuals can qualify by meeting certain financial criteria: (a) net worth over $1 million, excluding primary residence (individually or with spouse or partner); or income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year. Individuals can also qualify by meeting certain professional criteria: (a) investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82); (b) directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company); (c) any “family client” of a “family office” that qualifies as an accredited investor; or (d) for investments in a private fund, “knowledgeable employees” of the fund.  Entities can qualify as an accredited investor as follows: (a) entities owning investments in excess of $5 million; (b) corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office with assets in excess of $5million; (c) investment advisers (SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers; or (d) a bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company.

Independent formal appraisal of the fair market value (FMV) of a private company’s common stock (the stock reserved mainly for founders and employees). Named after Section 409A of the U.S. Internal Revenue Code, it's required by the IRS ...

Independent formal appraisal of the fair market value (FMV) of a private company’s common stock (the stock reserved mainly for founders and employees). Named after Section 409A of the U.S. Internal Revenue Code, it's required by the IRS to ensure that stock options and other equity-based compensation are being issued at fair market value.

Shorthand for 2% management fees and 20% carried interest

Shorthand for 2% management fees and 20% carried interest

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

The Capital Commitment is normally made by the Managing Directors, who are the owners of the Management Company.

The Capital Commitment is normally made by the Managing Directors, who are the owners of the Management Company.

If you want to be an independent fund manager and to launch an enduring venture capital firm, co-branding is a bad idea. You will be an employee of the other firm for 10+ years and you will have little control.

If you want to be an independent fund manager and to launch an enduring venture capital firm, co-branding is a bad idea. You will be an employee of the other firm for 10+ years and you will have little control.

Sexual health and well-being.

Sexual health and well-being.