All Questions

No - In a high, medium, low projections approach - your low projection should be higher.

No - In a high, medium, low projections approach - your low projection should be higher.

Put 2% average on your terms page. In parentheses next to it you can briefly describe the front loading.

Put 2% average on your terms page. In parentheses next to it you can briefly describe the front loading.

Those are Org expenses so that fund will pay for them

Those are Org expenses so that fund will pay for them

As an investor you expect to bear diligence costs, especially  1) you (or your team) should have the significant expertise in your thesis sector to evaluate a deal;  2) an investment isn’t a sure thing - so asking a company to pay for di...

As an investor you expect to bear diligence costs, especially  1) you (or your team) should have the significant expertise in your thesis sector to evaluate a deal;  2) an investment isn’t a sure thing - so asking a company to pay for diligence in advance is unethical;  3) with the possible exception of a specific key technology that is completely novel and proprietary which would require a specific expert to evaluate 4) additionally, if the deal is in demand you need to do my diligence quickly…

You can _technically_ charge stuff like this as a fund expense, but some/most LPs would have a problem with that because that’s part of your job and they are commonly paid from management fees. So, typically those are done at the ManCo l...

You can _technically_ charge stuff like this as a fund expense, but some/most LPs would have a problem with that because that’s part of your job and they are commonly paid from management fees. So, typically those are done at the ManCo level.

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended

Though this varies widely, each investment round would sell between 10% and 25% of the company. Best practice is to model the capital journey, tools like this one from Foresight https://foresight.is/cap-table/ are recommended

I would not model them, no. Clawbacks are unusual circumstances that don't occur unless the fund is in trouble. Catch-ups we do not recommend.

I would not model them, no. Clawbacks are unusual circumstances that don't occur unless the fund is in trouble. Catch-ups we do not recommend.

here you go: https://foresight.is

here you go: https://foresight.is

No. VCs will commonly charge portfolio companies for legal fees associated with a deal up to a cap in the term sheet, but it is uncommon to charge for due diligence fees, such as a software audit. These fees can be charged to Limited Par...

No. VCs will commonly charge portfolio companies for legal fees associated with a deal up to a cap in the term sheet, but it is uncommon to charge for due diligence fees, such as a software audit. These fees can be charged to Limited Partners as Fund Expenses versus coming from Management Fees.

Exits can take longer than the standard fund life. However, typically, when extending the fund, VCs don’t charge management fees. The earlier you invest, the more likely that you may need an extension.

Exits can take longer than the standard fund life. However, typically, when extending the fund, VCs don’t charge management fees. The earlier you invest, the more likely that you may need an extension.