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1. it should be similar, but there are other sections that are important as well that are not in your deck, such as the fund rules section 2. it gives a quick snapshot of the fund, similar to an executive summary. it does not replace the...

1. it should be similar, but there are other sections that are important as well that are not in your deck, such as the fund rules section 2. it gives a quick snapshot of the fund, similar to an executive summary. it does not replace the PPM

It appears that the limited partner is asking for there to be a penalty or catch-up fee for late entrants into the fund. You can simply response that you are not adding any penalties or catch up fees, as you your intention is to close qu...

It appears that the limited partner is asking for there to be a penalty or catch-up fee for late entrants into the fund. You can simply response that you are not adding any penalties or catch up fees, as you your intention is to close quickly and keep fund admin complexity to a minimum. With most smaller funds the costs of administering such programs can be high, and, worse, the programs scare aware qualified LPs. In general, we strongly discourage this until you are an established fund manager with top returns.

This is called a Seed investment. 

This is called a Seed investment. 

This is highly dependent on the strategy. First pick your strategy, then the model.

This is highly dependent on the strategy. First pick your strategy, then the model.

The majority of these types of events are scams. 

The majority of these types of events are scams. 

The General Partnership Entity manages the carry and is governed by the Stewardship agreement that you are referring to. The Limited Partnership Entity is where the LPs invest and it allocates the carry to the General Partnership Entity....

The General Partnership Entity manages the carry and is governed by the Stewardship agreement that you are referring to. The Limited Partnership Entity is where the LPs invest and it allocates the carry to the General Partnership Entity. The Limited Partnership Entity is governed by the Cornerstone LPA. Class V shares are typically reserved for investors in the General Partnership Entity. So, if you have an investor that wants to make an investment in the General Partnership Entity, you would use Class V shares. Class A are for everyone else (GPs, VPs etc..)

This is another example of confusing venture capital terminology. They are often the same thing. Venture Investors can refer to Venture Partners that help with investing, primarily.

This is another example of confusing venture capital terminology. They are often the same thing. Venture Investors can refer to Venture Partners that help with investing, primarily.

We recommend that you raise the minimum between closing as your forcing function. You may start with $25K and increase it to $500K.

We recommend that you raise the minimum between closing as your forcing function. You may start with $25K and increase it to $500K.

If you have a Hurdle Rate of 4%, then you need to get 104% returned before you get any carried interest. Since your primary compensation is through carry, this is really unfair to the GP, especially in smaller funds. You’re already maki...

If you have a Hurdle Rate of 4%, then you need to get 104% returned before you get any carried interest. Since your primary compensation is through carry, this is really unfair to the GP, especially in smaller funds. You’re already making a big sacrifice due to the small fund size etc. It’s just not fair. Also, it doesn’t really de-risk the fund that much, especially when it’s small, so it’s not that beneficial.

Distributions are usually done upon exits and the Fund's LPA usually specifies the details. 

Distributions are usually done upon exits and the Fund's LPA usually specifies the details. 

The active investment period is normally between 2 and 4 years. Read the Cornerstone LPA for how these terms are set.

The active investment period is normally between 2 and 4 years. Read the Cornerstone LPA for how these terms are set.

There are 10 years (usually) of annual Managment Fees, so 10 times 2% is 20%.

There are 10 years (usually) of annual Managment Fees, so 10 times 2% is 20%.

yes they can

yes they can

LPs typically expect that GPs contribute 1% to the fund. Think of it like skin in the game. This can be done via cash, or, via equity from a warehouse investment. So, for example, if you have equity in company, you can contribute that i...

LPs typically expect that GPs contribute 1% to the fund. Think of it like skin in the game. This can be done via cash, or, via equity from a warehouse investment. So, for example, if you have equity in company, you can contribute that instead of cash to make up the 1%.

It depends on the audience and the secret sauce of the thesis. 

It depends on the audience and the secret sauce of the thesis. 

The goal is to communicate on a regular schedule to set expectations about communication with LPs, otherwise some will start demanding heavy communication. I would look to send one good update once a quarter, a larger update at the end o...

The goal is to communicate on a regular schedule to set expectations about communication with LPs, otherwise some will start demanding heavy communication. I would look to send one good update once a quarter, a larger update at the end of the year, and hold one or two virtual events per year, unless you can afford to do a nice in person event, which can be done once per year.

This web site is not publicly available. This rules are very simple. Do not put information about your fund or your Thesis on a public web site. You can describe your team. You can describe your vision for the future. You can describe y...

This web site is not publicly available. This rules are very simple. Do not put information about your fund or your Thesis on a public web site. You can describe your team. You can describe your vision for the future. You can describe your interests. However, I would not direct LPs to a fund web site with any fund information. You can direct LPs to your LinkedIn profile, which should not include details of your fund or fund Thesis.

You can’t sign any agreements until all the entities are formed

You can’t sign any agreements until all the entities are formed

You can use a venture partner agreement. Click this link to learn more about Venture Partner Agreements: https://govclab.com/2022/03/10/venture-share/

You can use a venture partner agreement. Click this link to learn more about Venture Partner Agreements: https://govclab.com/2022/03/10/venture-share/

We recommend that you don’t include your own contribution for this exercise.

We recommend that you don’t include your own contribution for this exercise.