All Questions

Try to optimize for the lower fund size. You will raise a series of funds, and they will likely grow in size.

Try to optimize for the lower fund size. You will raise a series of funds, and they will likely grow in size.

From an LPs perspective, the stage is being standardized as pre-seed right now, so use that. When you use the term Angel, it indicates that you’re doing an Angel group model, which is quite different because you’re essentially syndicati...

From an LPs perspective, the stage is being standardized as pre-seed right now, so use that. When you use the term Angel, it indicates that you’re doing an Angel group model, which is quite different because you’re essentially syndicating the deal within the group.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

Generally speaking for Delaware domiciled funds, the ManCo and GP entity are LLCs, and the fund itself is a Limited Partnership. The fund managers own the ManCo, which owns the majority of the GP entity. The Limited Partnership (where th...

Generally speaking for Delaware domiciled funds, the ManCo and GP entity are LLCs, and the fund itself is a Limited Partnership. The fund managers own the ManCo, which owns the majority of the GP entity. The Limited Partnership (where the limited partners invest into) is managed by the GP entity. 

You will pay yourself with the 1st capital call. It is possible to have a side job before you do the 1st capital call.

You will pay yourself with the 1st capital call. It is possible to have a side job before you do the 1st capital call.

This is handled by LPAs by something called a Key Person Clause. You can see how the Cornerstone LPA handles this by searching the agreement for ‘Key Individuals’ and for ‘Limited Operations’ mode: But, basically, you can tell them ...

This is handled by LPAs by something called a Key Person Clause. You can see how the Cornerstone LPA handles this by searching the agreement for ‘Key Individuals’ and for ‘Limited Operations’ mode: But, basically, you can tell them that the fund will go into limited operations mode and then, the interests of the fund will likely be distributed to the limited partners based on the terms of the LPA.

The active investment period of a fund starts when the fund is formed and closes.

The active investment period of a fund starts when the fund is formed and closes.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

a. you do this in in the bios folder by including their CV which should highlight some of their achievements b. you redact the name of the companies

a. you do this in in the bios folder by including their CV which should highlight some of their achievements b. you redact the name of the companies

There are general solicitation issues, and the there are pitch control issue. First, your deck should never be sent without a document managment system, like Decile Hub. From a general solicitation standpoint, this should not be done, t...

There are general solicitation issues, and the there are pitch control issue. First, your deck should never be sent without a document managment system, like Decile Hub. From a general solicitation standpoint, this should not be done, technically. It’s better to send an exciting blirb about you and get a meeting first without mentioning the fund. From a pitch control standpoint, I have never seen a deck really help. It creates an easy way for the prospect to say no without meeting. It’s always better to get a meeting, build rapport, and then do the deck in a second meeting. Most larger family offices have investment processes that involve due diligence. Some take months. It’s important to meet with them to understand their process. *Don’t send the deck. Get the meeting.*

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Angel deals are great if you can show the companies are growing. LPs don’t care much about the # of deals. It’s how successful you were with investing in those deals.

Angel deals are great if you can show the companies are growing. LPs don’t care much about the # of deals. It’s how successful you were with investing in those deals.

they are usually pretty similar

they are usually pretty similar

Yes, please review this article: https://govclab.com/venture-share-2/

Yes, please review this article: https://govclab.com/venture-share-2/

There has to be a contractural relationship for you to receive money. They either need to invest in the Limited Partnership or the General Partnership.

There has to be a contractural relationship for you to receive money. They either need to invest in the Limited Partnership or the General Partnership.

TL:DR - it's difficult, and we always recommend erring on the side of following regulations. Read the following: https://govclab.com/2022/06/28/general-solicitation/ Here are a few things that you should avoid mentioning just to be saf...

TL:DR - it's difficult, and we always recommend erring on the side of following regulations. Read the following: https://govclab.com/2022/06/28/general-solicitation/ Here are a few things that you should avoid mentioning just to be safe: • Your fund’s name, thesis or fund size, or the fact that you are raising a fund • Your fund’s strategy • Your one sentence pitch You may be able to carefully talk about:  • Your background • The types of companies/founders that you personally are interested in investing in and why • Market inefficiencies that you see

Please see the Venture Partner Agreement and the included footnotes on 409A. Class A shares are issued to managers and partners in the GP, and Class V are issued to investors in the GP. Venture Partners are traditionally issued Class A. ...

Please see the Venture Partner Agreement and the included footnotes on 409A. Class A shares are issued to managers and partners in the GP, and Class V are issued to investors in the GP. Venture Partners are traditionally issued Class A. The Shares are generally issued at the inception of the Fund for a nominal value per Share, though there can be many complicating factors to consider. 

cap adjusted projection

cap adjusted projection

As you accelerate your pitching you will use a PACT to collect interest. Then after you have $1m+ or more collected in PACTs, your law firm will help you incorporate all the entities and governing docs. Then you will send LPs an LPA to s...

As you accelerate your pitching you will use a PACT to collect interest. Then after you have $1m+ or more collected in PACTs, your law firm will help you incorporate all the entities and governing docs. Then you will send LPs an LPA to sign.