In the #4 question it's not clear how to quantify how each Past Deal will be attractive to Limited Partners. Should we write a valuation of the future rounds of the Deals in exact numbers or just write 'very attractive' or 'not attractive'?
2) Do the individual investors within the SPV count toward the 99 (or 250) total LPs allowed? Or does the SPV count as a single LP?
1. Is the maximum number of investors allowed 99 or did it get raised to 250?
We had an interesting fund of funds proposal for 25% of our fund. *Do you know if the proposal is typical or aggressive or have advice for a counter?* This is the offer at a high level: • 40% of commitment allocated to initial investments of our fund. • 60% of commitment allocated to co-investments in subsequent funding rounds within our portfolio ventures as selected by the FoF (we don't receive any carry) • Option for FoF to lead subsequent funding rounds (for individual portfolio companies) as Lead Investor • 1 IC seat (we're okay with it)
Is it worthwhile or advisable to politely push back on anchors requesting favorable terms with resources we find that suggest that 'In contrast to traditional private equity settings none of the interviewed [for this HBS study] anchors sought fee breaks or other preferential economic terms. Some were attracted by the ability to shape the direction and legal structure of the fund or serve on the LP advisory board?' Mike made mention in a previous AMA that such favorable terms actually don't meaningfully move an LP closer to investment anyways which was interesting.
My fund model is coming in really high multiples. I am suspicious. Have sent to my team for additional layers of extreme validation and scrutiny but I’m afraid to put these numbers in the deck until I can really really defend them. Does anyone else have this issue? I feel tempted to pull some standard off the shelf numbers and put them in for now until we can validate these further and I feel more solid in them…but they’d be wrong. Thoughts?
hey we have helped a startup Increased their revenue by $500k how can I give a value for the company after this new revenue?
Hello everybody! How do you estimate Fund liquidity? Do you recommend a reference to see the outcomes of other funds?
In developing the return scenarios would approx. 1x be too optimistic for the worst case?
What is the best way to present management fees as a single number on slides? For example we want to front-load the fees for our 10Y fund at 3.5% for the active investment period (3 years) and then drop them to 1%. Average over 10years comes to 1.75%. What would be the management fee rate that goes on the slides?
Do the expenses for the alignment agreement & stewardship agreement fall in the hands of the founding partners or can they be claimed as fund admin/org expenses?
Hi Everyone when modelling fund expenses are you assigning all due diligence costs to LP or do they go from the management fees?
Where should we bucket expenses (travel+frugal entertainment) associated with attending port co board meetings? Management Co Expenses or can that be pushed to Fund Expenses?
Will VC Lab provide a template for modeling the fund economics projected returns allocations etc.?
What are the practical minimum numbers that are normal and attractive for investors for various for Low Medium and High exit scenarios?
What is the typical ownership percentage for a seed stage investment?
Do you have any commercial spreadsheet templates or peer templates for modeling VC firms and funds?
Is it common that funds charge the startup investee a fee to cover for your due diligence costs?
